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Segment Reporting Disclosures (Tables)
 3 Months Ended
Mar. 31, 2012
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
Company's Segment Disclosures
The following tables summarize the Company’s segment disclosures.
Three Months Ended March 31, 2012
(dollars in thousands)
Excess and
Surplus
Lines
 
Specialty
Admitted
 
London
Insurance
Market
 
Other
Insurance
(Discontinued
Lines)
 
Investing
 
Consolidated
Gross premium volume
$
222,929

 
$
148,122

 
$
277,566

 
$
1

 
$
—

 
$
648,618

Net written premiums
192,913

 
140,552

 
247,700

 
1

 
—

 
581,166

Earned premiums
199,378

 
133,475

 
196,742

 
1

 
—

 
529,596

Losses and loss adjustment expenses:
 
 
 
 
 
 
 
 
 
 
 
Current accident year
(128,067
)
 
(92,693
)
 
(131,746
)
 
—

 
—

 
(352,506
)
Prior accident years
30,587

 
4,326

 
21,465

 
7,607

 
—

 
63,985

Underwriting, acquisition and insurance expenses:
 
 
 
 
 
 
 
 
 
 


Prospective adoption of ASU 2010-26(1)
(8,487
)
 
(5,764
)
 
(6,037
)
 
—

 
—

 
(20,288
)
All other expenses
(85,857
)
 
(57,266
)
 
(75,003
)
 
(283
)
 
—

 
(218,409
)
Underwriting profit (loss)
7,554

 
(17,922
)
 
5,421

 
7,325

 
—

 
2,378

Net investment income
—

 
—

 
—

 
—

 
79,794

 
79,794

Net realized investment gains
—

 
—

 
—

 
—

 
11,909

 
11,909

Other revenues (insurance)
—

 
10,448

 
4,383

 
—

 
—

 
14,831

Other expenses (insurance)
—

 
(11,201
)
 
(974
)
 
—

 
—

 
(12,175
)
Segment profit (loss)
$
7,554

 
$
(18,675
)
 
$
8,830

 
$
7,325

 
$
91,703

 
$
96,737

Other revenues (non-insurance)
 
 
 
 
 
 
 
 
 
 
97,005

Other expenses (non-insurance)
 
 
 
 
 
 
 
 
 
 
(88,229
)
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
(8,804
)
Interest expense
 
 
 
 
 
 
 
 
 
 
(22,167
)
Income before income taxes
 
 
 
 
 
 
 
 
 
 
$
74,542

U.S. GAAP combined ratio(2)
96
%
 
113
%
 
97
%
 
NM

(3) 
 
 
100
%
Three Months Ended March 31, 2011
(dollars in thousands)
Excess and
Surplus
Lines
 
Specialty
Admitted
 
London
Insurance
Market
 
Other
Insurance
(Discontinued
Lines)
 
Investing
 
Consolidated
Gross premium volume
$
201,371

 
$
134,321

 
$
255,001

 
$
90

 
$
—

 
$
590,783

Net written premiums
175,537

 
127,239

 
216,139

 
97

 
—

 
519,012

Earned premiums
181,057

 
122,476

 
159,483

 
95

 
—

 
463,111

Losses and loss adjustment expenses:
 
 
 
 
 
 
 
 
 
 
 
Current accident year
(122,507
)
 
(78,470
)
 
(187,876
)
 
—

 
—

 
(388,853
)
Prior accident years
56,792

 
198

 
12,634

 
4,901

 
—

 
74,525

Underwriting, acquisition and insurance expenses
(85,920
)
 
(49,473
)
 
(66,725
)
 
(232
)
 
—

 
(202,350
)
Underwriting profit (loss)
29,422

 
(5,269
)
 
(82,484
)
 
4,764

 
—

 
(53,567
)
Net investment income
—

 
—

 
—

 
—

 
70,099

 
70,099

Net realized investment gains
—

 
—

 
—

 
—

 
11,240

 
11,240

Other revenues (insurance)
—

 
9,186

 
—

 
—

 
—

 
9,186

Other expenses (insurance)
—

 
(11,740
)
 
(8
)
 
—

 
—

 
(11,748
)
Segment profit (loss)
$
29,422

 
$
(7,823
)
 
$
(82,492
)
 
$
4,764

 
$
81,339

 
$
25,210

Other revenues (non-insurance)
 
 
 
 
 
 
 
 
 
 
67,958

Other expenses (non-insurance)
 
 
 
 
 
 
 
 
 
 
(56,747
)
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
(6,008
)
Interest expense
 
 
 
 
 
 
 
 
 
 
(18,962
)
Income before income taxes
 
 
 
 
 
 
 
 
 
 
$
11,451

U.S. GAAP combined ratio(2)
84
%
 
104
%
 
152
%
 
NM

(3) 
 
 
112
%
(1)
Effective January 1, 2012, the Company prospectively adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts. At December 31, 2011, deferred policy acquisition costs included approximately $43 million of costs that no longer met the criteria for deferral as of January 1, 2012 and will be recognized into income primarily over the first nine months of 2012, consistent with policy terms. The three months ended March 31, 2012 included $20.3 million of underwriting, acquisition and insurance expenses that were deferred as of December 31, 2011 and no longer met the criteria for deferral as of January 1, 2012.
(2)
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.
(3)
NM – Ratio is not meaningful.
Reconciliation Of Segment Assets To The Company's Consolidated Balance Sheets
The following table reconciles segment assets to the Company’s consolidated balance sheets.
(dollars in thousands)
March 31,
2012
 
December 31,
2011
Segment Assets:
 
 
 
Investing
$
8,795,416

 
$
8,692,391

Underwriting
2,427,176

 
2,209,431

Total Segment Assets
$
11,222,592

 
$
10,901,822

Non-insurance operations
636,692

 
630,281

Total Assets
$
11,859,284

 
$
11,532,103