Segment Information

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Information

19. SEGMENT INFORMATION

The Company measures the results of its operations in three segments: (i) non-life run-off; (ii) active underwriting; and (iii) life and annuities.

The Company’s non-life run-off segment comprises the operations and financial results of those subsidiaries acquired for the purpose of running off their property and casualty business.

The Company’s active underwriting segment comprises the operations and financial results of Atrium and its subsidiaries and Arden. Results related to Arden’s reinsurance to Atrium are included within the Company’s active underwriting segment, while results related to Arden’s run-off business are included within the Company’s non-life run-off segment. With effect from April 1, 2014, the active underwriting segment will also include substantially all of the activities of Torus Insurance Holdings Limited and its subsidiaries (some of Torus’ lines of business are in run-off and will accordingly be accounted for within the Company’s non-life run-off segment).

The Company’s life and annuities segment comprises the operations and financial results of those subsidiaries, primarily the Pavonia companies, operating in the closed-block of life and annuity business.

Invested assets are managed on a subsidiary by subsidiary basis, and investment income and realized and unrealized gains on investments are recognized in each segment as earned.

The elimination items includes the elimination of intersegment revenues and expenses.

The Company’s total assets by segment were:

	March 31. 2014		December 31, 2013
Total assets—non-life run-off	$	6,432,340	$	6,619,992
Total assets—active underwriting		899,476		585,176
Total assets—life and annuities		1,377,491		1,414,987
	$	8,709,307	$	8,620,155

The following tables set forth selected and unaudited condensed consolidated statement of earnings results by segment for the three months ended March 31, 2014 and 2013:

	Three Months Ended March 31, 2014
	Non-life run-off			Active underwriting			Life and annuities			Eliminations			Consolidated
Net premiums earned	$	2,527		$	32,639		$	26,492		$	—		$	61,658
Fees and commission income		2,955			4,821			21			(799	)		6,998
Net investment income		14,333			480			9,989			(454	)		24,348
Net realized and unrealized gains (losses)		29,629			(107	)		5,051			—			34,573
		49,444			37,833			41,553			(1,253	)		127,577
EXPENSES
Net (reduction) increase in ultimate losses and loss adjustment expense liabilities:
Non-life run-off		(29,182	)		—			—			—			(29,182	)
Active underwriting		—			17,131			—			—			17,131
		(29,182	)		17,131			—			—			(12,051	)
Acquisition costs		—			9,561			3,600			—			13,161
Life and annuity policy benefits		—			—			26,809			—			26,809
Salaries and benefits		25,846			3,533			2,011			—			31,390
General and administrative expenses		15,763			4,934			2,352			(799	)		22,250
Interest expense		2,561			1,173			454			(454	)		3,734
Net foreign exchange losses (gains)		2,130			(545	)		11			—			1,596
		17,118			35,787			35,237			(1,253	)		86,889
EARNINGS BEFORE INCOME TAXES		32,326			2,046			6,316			—			40,688
INCOME TAXES		(3,651	)		(1,339	)		(2,286	)		—			(7,276	)
NET EARNINGS		28,675			707			4,030			—			33,412
Less: Net earnings attributable to noncontrolling interest		(3,075	)		(750	)		—			—			(3,825	)
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR GROUP LIMITED	$	25,600		$	(43	)	$	4,030		$	—		$	29,587

	Three Months Ended March 31, 2013
	Non-life run-off			Life and annuities			Eliminations			Consolidated
Net premiums earned	$	30,920		$	741			—		$	31,661
Fees and commission income		2,628			—			(181	)		2,447
Net investment income		17,691			272			—			17,963
Net realized and unrealized gains (losses)		30,278			(158	)		—			30,120
		81,517			855			(181	)		82,191
EXPENSES
Net increase in ultimate losses and loss adjustment expense liabilities		9,161			—			—			9,161
Acquisition costs		2,387			—			—			2,387
Life and annuity policy benefits		—			741			—			741
Salaries and benefits		23,464			146			—			23,610
General and administrative expenses		16,415			1,712			(181	)		17,946
Interest expense		2,420			15			—			2,435
Net foreign exchange losses		4,936			146			—			5,082
		58,783			2,760			(181	)		61,362
EARNINGS (LOSS) BEFORE INCOME TAXES		22,734			(1,905	)		—			20,829
INCOME TAXES		(7,823	)		(21	)		—			(7,844	)
NET EARNINGS (LOSS)		14,911			(1,926	)		—			12,985
Less: Net earnings attributable to noncontrolling interest		(1,026	)		—			—			(1,026	)
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR GROUP LIMITED	$	13,885		$	(1,926	)	$	—		$	11,959