Segment Information

12 Months Ended

Dec. 31, 2019

24. SEGMENT INFORMATION

We have three reportable segments of business that are each managed, operated and separately reported: (i) Non-life Run-off; (ii) Atrium; and (iii) StarStone. Our other activities, which do not qualify as a reportable segment, include our corporate expenses, debt servicing costs, holding company income and expenses, foreign exchange and other miscellaneous items. These segments are described in Note 1 - "Description of Business".

The following tables set forth selected and consolidated statement of earnings results by segment for the years ended December 31, 2019, 2018, 2017:



	2019
	Non-Life Run-Off			Atrium			StarStone			Other			Total
Gross premiums written	$	(25,069	)	$	192,373		$	917,555		$	18,534		$	1,103,393

Net premiums written	$	(25,338	)	$	172,356		$	735,429		$	18,512		$	900,959

Net premiums earned	$	168,496		$	164,059		$	801,926		$	20,380		$	1,154,861
Net incurred losses and LAE	(51,625		)	(77,276		)	(727,636		)	(16,038		)	(872,575		)
Life and Annuity Policy Benefits	—			—			—			(91		)	(91		)
Acquisition costs	(73,642		)	(56,956		)	(174,711		)	(642		)	(305,951		)
Operating expenses	(199,756		)	(14,452		)	(120,629		)	—			(334,837		)
Underwriting income (loss)	(156,527		)	15,375			(221,050		)	3,609			(358,593		)
Net investment income	275,236			7,049			47,401			(8,410		)	321,276
Net realized and unrealized gains	968,350			6,195			50,957			5,849			1,031,351
Fees and commission income	18,293			10,160			—			—			28,453
Other income	34,809			140			338			1,883			37,170
Corporate expenses	(70,689		)	(13,825		)	(7,790		)	(45,945		)	(138,249		)
Interest income (expense)	(62,055		)	—			(475		)	9,989			(52,541		)
Net foreign exchange gains (losses)	9,918			(504		)	(1,538		)	3			7,879
EARNINGS (LOSS) BEFORE INCOME TAXES	1,017,335			24,590			(132,157		)	(33,022		)	876,746
Income tax benefit (expense)	(7,250		)	(4,033		)	6,931			(85		)	(4,437		)
Earnings (losses) from equity method investments	56,128			—			(218		)	—			55,910
NET EARNINGS (LOSS)	1,066,213			20,557			(125,444		)	(33,107		)	928,219
Net loss (earnings) attributable to noncontrolling interest	(6,409		)	(8,432		)	24,711			—			9,870
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR GROUP LIMITED	1,059,804			12,125			(100,733		)	(33,107		)	938,089
Dividends on preferred shares	—			—			—			(35,914		)	(35,914		)
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR GROUP LIMITED ORDINARY SHAREHOLDERS	$	1,059,804		$	12,125		$	(100,733	)	$	(69,021	)	$	902,175

Underwriting ratios:
Loss ratio				47.1		%	90.7		%
Acquisition expense ratio				34.7		%	21.8		%
Operating expense ratio				8.8		%	15.1		%
Combined ratio				90.6		%	127.6		%



	2018
	Non-Life Run-Off			Atrium			StarStone			Other			Total
Gross premiums written	$	(8,910	)	$	171,494		$	1,121,135		$	32,378		$	1,316,097

Net premiums written	$	(9,217	)	$	153,488		$	805,562		$	32,067		$	981,900

Net premiums earned	$	9,427		$	146,315		$	714,959		$	24,874		$	895,575
Net incurred losses and LAE	306,067			(69,810		)	(673,383		)	(16,899		)	(454,025		)
Life and annuity policy benefits	—			—			—			(1,003		)	(1,003		)
Acquisition costs	(4,006		)	(50,646		)	(135,452		)	(2,686		)	(192,790		)
Operating expenses	(158,731		)	(17,777		)	(156,726		)	—			(333,234		)
Underwriting income (loss)	152,757			8,082			(250,602		)	4,286			(85,477		)
Net investment income	226,287			5,686			35,973			2,725			270,671
Net realized and unrealized losses	(381,712		)	(3,251		)	(17,672		)	(10,249		)	(412,884		)
Fees and commission income	16,466			18,622			—			—			35,088
Other income (losses)	35,978			162			(541		)	(514		)	35,085
Corporate expenses	(39,093		)	(6,921		)	—			(28,127		)	(74,141		)
Interest income (expense)	(30,616		)	—			(624		)	5,023			(26,217		)
Net foreign exchange gains (losses)	2,534			(3,394		)	(2,856		)	1,048			(2,668		)
EARNINGS (LOSS) BEFORE INCOME TAXES	(17,399		)	18,986			(236,322		)	(25,808		)	(260,543		)
Income tax benefit (expense)	3,581			(3,732		)	6,327			(52		)	6,124
Earnings from equity method investments	42,147			—			—			—			42,147
NET EARNINGS (LOSS)	28,329			15,254			(229,995		)	(25,860		)	(212,272		)
Net loss (earnings) attributable to noncontrolling interest	(3,107		)	(6,257		)	71,415			—			62,051
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR GROUP LIMITED	25,222			8,997			(158,580		)	(25,860		)	(150,221		)
Dividends on preferred shares	—			—			—			(12,133		)	(12,133		)
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR GROUP LIMITED ORDINARY SHAREHOLDERS	$	25,222		$	8,997		$	(158,580	)	$	(37,993	)	$	(162,354	)

Underwriting ratios:
Loss ratio				47.7		%	94.2		%
Acquisition expense ratio				34.6		%	18.9		%
Operating expense ratio				12.2		%	22.0		%
Combined ratio				94.5		%	135.1		%



	2017
	Non-Life Run-Off			Atrium			StarStone			Other			Total
Gross premiums written	$	14,102		$	153,472		$	895,160		$	5,719		$	1,068,453

Net premiums written	$	6,482		$	134,214		$	464,901		$	4,793		$	610,390

Net premiums earned	$	14,162		$	134,747		$	459,403		$	4,809		$	613,121
Net incurred losses and LAE	190,674			(69,419		)	(314,806		)	—			(193,551		)
Life and annuity policy benefits	—			—			—			(4,015		)	(4,015		)
Acquisition costs	(328		)	(47,688		)	(48,012		)	(878		)	(96,906		)
Operating expenses	(132,235		)	(17,444		)	(135,558		)	—			(285,237		)
Underwriting income (loss)	72,273			196			(38,973		)	(84		)	33,412
Net investment income	166,678			4,218			27,706			10,187			208,789
Net realized and unrealized gains (losses)	179,545			1,117			16,613			(6,941		)	190,334
Fees and commission income (expense)	43,849			22,788			632			(1,166		)	66,103
Other income	21,157			230			570			648			22,605
Corporate expenses	(101,592		)	(12,142		)	—			(37,014		)	(150,748		)
Interest income (expense)	(28,970		)	(559		)	(1,902		)	3,329			(28,102		)
Net foreign exchange gains	(7,347		)	(5,060		)	(926		)	(4,204		)	(17,537		)
Loss on sale of subsidiary	—			—			—			(16,349		)	(16,349		)
EARNINGS (LOSS) BEFORE INCOME TAXES	345,593			10,788			3,720			(51,594		)	308,507
Income tax benefit (expense)	6,990			(1,593		)	988			10			6,395
Earnings from equity method investments	5,904			—			—			—			5,904
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS	358,487			9,195			4,708			(51,584		)	320,806
Net earnings from discontinued operations, net of income taxes	—			—			—			10,993			10,993
NET EARNINGS (LOSS)	358,487			9,195			4,708			(40,591		)	331,799
Net earnings attributable to noncontrolling interest	(14,687		)	(3,772		)	(1,882		)	—			(20,341		)
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR GROUP LIMITED ORDINARY SHAREHOLDERS	$	343,800		$	5,423		$	2,826		$	(40,591	)	$	311,458

Underwriting ratios:
Loss ratio				51.5		%	68.5		%
Acquisition expense ratio				35.4		%	10.5		%
Operating expense ratio				13.0		%	29.5		%
Combined ratio				99.9		%	108.5		%

Gross Premiums Written by Geographical Area

The following table summarizes our gross premiums written for the year ended December 31, 2019 by geographic area. Geographic distribution in future years is subject to variation based upon market conditions and business strategies.



	Non-life Run-off					Atrium				StarStone				Other				Total
	Total			%		Total		%		Total		%		Total		%		Total		%
	(In thousands of U.S. dollars, except percentages)
United States	$	(25,012	)	99.7	%	$	102,199	53.1	%	$	548,683	59.8	%	$	17,239	93.0	%	$	643,109	58.2	%
United Kingdom	350			(1.4	)%	12,972		6.7	%	114,822		12.5	%	—		—	%	128,144		11.6	%
Europe	(265		)	1.1	%	17,677		9.2	%	115,481		12.6	%	1,295		7.0	%	134,188		12.2	%
Asia	(48		)	0.2	%	5,700		3.0	%	75,773		8.3	%	—		—	%	81,425		7.4	%
Rest of World	(94		)	0.4	%	53,825		28.0	%	62,796		6.8	%	—		—	%	116,527		10.6	%
Total	$	(25,069	)	100.0	%	$	192,373	100.0	%	$	917,555	100.0	%	$	18,534	100.0	%	$	1,103,393	100.0	%

Assets by Segment

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. Our total assets as of December 31, 2019 and 2018 by segment were as follows:



	2019			2018
Assets by Segment:
Non-life Run-off	$	15,775,409		$	13,362,749
Atrium	580,405			591,722
StarStone	3,522,353			3,416,132
Other	(514,852		)	(814,333		)
Total assets	$	19,363,315		$	16,556,270