Segment Information (Tables)

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Underwriting results and reconciliation from reportable segments and other's category net income (loss) to consolidated

The following tables summarize the underwriting results of our reportable segments and the reconciliation of our reportable segments and Other category's underwriting results to consolidated net income (loss) from continuing operations:

For the Three Months Ended September 30, 2020	Diversified Reinsurance			AmTrust Reinsurance			Total
Gross premiums written	$	9,152		$	(5,635)		$	3,517
Net premiums written	$	8,666		$	(5,635)		$	3,031
Net premiums earned	$	11,323		$	12,982		$	24,305
Other insurance revenue	261			—			261
Net loss and loss adjustment expenses ("loss and LAE")	(6,624)			(2,441)			(9,065)
Commission and other acquisition expenses	(4,204)			(5,447)			(9,651)
General and administrative expenses	(1,818)			(630)			(2,448)
Underwriting (loss) income	$	(1,062)		$	4,464		3,402
Reconciliation to net income from continuing operations
Net investment income and realized gains on investment							16,819
Total other-than-temporary impairment losses							(962)
Interest and amortization expenses							(4,832)
Foreign exchange and other losses, net							(6,536)
Other general and administrative expenses							(5,712)
Income tax expense							(17)
Net income from continuing operations							$	2,162
Net loss and LAE ratio(1)	57.2		%	18.8		%	36.9		%
Commission and other acquisition expense ratio(2)	36.3		%	42.0		%	39.3		%
General and administrative expense ratio(3)	15.7		%	4.8		%	33.2		%
Expense ratio(4)	52.0		%	46.8		%	72.5		%
Combined ratio(5)	109.2		%	65.6		%	109.4		%

3. Segment Information (continued)

For the Three Months Ended September 30, 2019	Diversified Reinsurance			AmTrust Reinsurance			Other		Total
Gross premiums written	$	14,439		$	21,405		$	—	$	35,844
Net premiums written	$	14,539		$	21,405		$	—	$	35,944
Net premiums earned	$	20,492		$	74,406		$	—	$	94,898
Other insurance revenue	554			—			—		554
Net loss and LAE	(13,807)			(126,945)			(108)		(140,860)
Commission and other acquisition expenses	(7,005)			(25,758)			—		(32,763)
General and administrative expenses	(1,849)			(235)			—		(2,084)
Underwriting loss	$	(1,615)		$	(78,532)		$	(108)	(80,255)
Reconciliation to net loss from continuing operations
Net investment income and realized gains on investment									25,923
Total other-than-temporary impairment losses									(165)
Interest and amortization expenses									(4,831)
Foreign exchange and other gains									7,827
Other general and administrative expenses									(6,814)
Income tax expense									(87)
Net loss from continuing operations									$	(58,402)
Net loss and LAE ratio(1)	65.6		%	170.6		%			147.6		%
Commission and other acquisition expense ratio(2)	33.3		%	34.6		%			34.3		%
General and administrative expense ratio(3)	8.8		%	0.3		%			9.3		%
Expense ratio(4)	42.1		%	34.9		%			43.6		%
Combined ratio(5)	107.7		%	205.5		%			191.2		%

3. Segment Information (continued)

For the Nine Months Ended September 30, 2020	Diversified Reinsurance			AmTrust Reinsurance			Total
Gross premiums written	$	30,573		$	(10,340)		$	20,233
Net premiums written	$	27,591		$	(10,098)		$	17,493
Net premiums earned	$	35,381		$	41,447		$	76,828
Other insurance revenue	919			—			919
Net loss and LAE	(19,703)			(21,456)			(41,159)
Commission and other acquisition expenses	(13,557)			(16,221)			(29,778)
General and administrative expenses	(5,177)			(1,941)			(7,118)
Underwriting (loss) income	$	(2,137)		$	1,829		(308)
Reconciliation to net income from continuing operations
Net investment income and realized gains on investment							69,005
Total other-than-temporary impairment losses							(2,468)
Interest and amortization expenses							(14,493)
Foreign exchange and other losses							(634)
Other general and administrative expenses							(18,853)
Income tax expense							(14)
Net income from continuing operations							$	32,235
Net loss and LAE ratio(1)	54.3		%	51.8		%	52.9		%
Commission and other acquisition expense ratio(2)	37.3		%	39.1		%	38.3		%
General and administrative expense ratio(3)	14.3		%	4.7		%	33.4		%
Expense ratio(4)	51.6		%	43.8		%	71.7		%
Combined ratio(5)	105.9		%	95.6		%	124.6		%

3. Segment Information (continued)

For the Nine Months Ended September 30, 2019	Diversified Reinsurance			AmTrust Reinsurance			Other		Total
Gross premiums written	$	41,021		$	(564,199)		$	—	$	(523,178)
Net premiums written	$	38,204		$	(564,199)		$	—	$	(525,995)
Net premiums earned	$	68,256		$	343,730		$	—	$	411,986
Other insurance revenue	2,120			—			—		2,120
Net loss and LAE	(40,695)			(374,103)			(312)		(415,110)
Commission and other acquisition expenses	(24,413)			(127,623)			—		(152,036)
General and administrative expenses	(6,972)			(2,063)			—		(9,035)
Underwriting loss	$	(1,704)		$	(160,059)		$	(312)	(162,075)
Reconciliation to net loss from continuing operations
Net investment income and realized gains on investment									102,052
Total other-than-temporary impairment losses									(165)
Interest and amortization expenses									(14,490)
Foreign exchange and other gains									14,013
Other general and administrative expenses									(28,640)
Income tax benefit									977
Net loss from continuing operations									$	(88,328)
Net loss and LAE ratio(1)	57.8		%	108.8		%			100.2		%
Commission and other acquisition expense ratio(2)	34.7		%	37.1		%			36.7		%
General and administrative expense ratio(3)	9.9		%	0.6		%			9.1		%
Expense ratio(4)	44.6		%	37.7		%			45.8		%
Combined ratio(5)	102.4		%	146.5		%			146.0		%

(1)Calculated by dividing net loss and LAE by the sum of net premiums earned and other insurance revenue.

(2)Calculated by dividing commission and other acquisition expenses by the sum of net premiums earned and other insurance revenue.

(3)Calculated by dividing general and administrative expenses by the sum of net premiums earned and other insurance revenue.

(4)Calculated by adding together the commission and other acquisition expense ratio and general and administrative expense ratio.

(5)Calculated by adding together net loss and LAE ratio and the expense ratio.

Reconciliation of assets from reportable segments to consolidated

The following tables summarize the financial position of the Company's reportable segments including the reconciliation to the Company's consolidated total assets at September 30, 2020 and December 31, 2019:

September 30, 2020	Diversified Reinsurance		AmTrust Reinsurance		Total
Total assets - reportable segments	$	156,237	$	2,413,955	$	2,570,192
Corporate assets	—		—		484,512
Total Assets	$	156,237	$	2,413,955	$	3,054,704
December 31, 2019	Diversified Reinsurance		AmTrust Reinsurance		Total
Total assets - reportable segments	$	167,845	$	2,843,802	$	3,011,647
Corporate assets	—		—		556,549
Total Assets	$	167,845	$	2,843,802	$	3,568,196

Net premiums by major line of business

Segment Information (continued)

The following tables set forth financial information relating to net premiums written by major line of business and reportable segment for the three and nine months ended September 30, 2020 and 2019:

For the Three Months Ended September 30,	2020		2019
Net premiums written	Total		Total
Diversified Reinsurance
International	$	8,757	$	14,563
Other	(91)		(24)
Total Diversified Reinsurance	8,666		14,539
AmTrust Reinsurance
Small Commercial Business	(2,123)		8,050
Specialty Program	(209)		4,139
Specialty Risk and Extended Warranty	(3,303)		9,216
Total AmTrust Reinsurance	(5,635)		21,405
Total Net Premiums Written	$	3,031	$	35,944

For the Nine Months Ended September 30,	2020		2019
Net premiums written	Total		Total
Diversified Reinsurance
International	$	27,627	$	38,246
Other	(36)		(42)
Total Diversified Reinsurance	27,591		38,204
AmTrust Reinsurance
Small Commercial Business	(8,517)		(329,116)
Specialty Program	268		(24,500)
Specialty Risk and Extended Warranty	(1,849)		(210,583)
Total AmTrust Reinsurance	(10,098)		(564,199)
Total Net Premiums Written	$	17,493	$	(525,995)

The following tables set forth financial information relating to net premiums earned by major line of business and reportable segment for the three and nine months ended September 30, 2020 and 2019:

For the Three Months Ended September 30,	2020				2019
Net premiums earned	Total		% of Total		Total		% of Total
Diversified Reinsurance
International	$	11,414	47.0	%	$	20,516	21.6	%
Other	(91)		(0.4)	%	(24)		—	%
Total Diversified Reinsurance	11,323		46.6	%	20,492		21.6	%
AmTrust Reinsurance
Small Commercial Business	(1,921)		(7.9)	%	18,686		19.7	%
Specialty Program	(190)		(0.8)	%	22,204		23.4	%
Specialty Risk and Extended Warranty	15,093		62.1	%	33,516		35.3	%
Total AmTrust Reinsurance	12,982		53.4	%	74,406		78.4	%
Total Net Premiums Earned	$	24,305	100.0	%	$	94,898	100.0	%

3. Segment Information (continued)

For the Nine Months Ended September 30,	2020				2019
Net premiums earned	Total		% of Total		Total		% of Total
Diversified Reinsurance
International	$	35,417	46.1	%	$	68,298	16.6	%
Other	(36)		—	%	(42)		—	%
Total Diversified Reinsurance	35,381		46.1	%	68,256		16.6	%
AmTrust Reinsurance
Small Commercial Business	(8,094)		(10.6)	%	81,424		19.8	%
Specialty Program	311		0.4	%	128,751		31.2	%
Specialty Risk and Extended Warranty	49,230		64.1	%	133,555		32.4	%
Total AmTrust Reinsurance	41,447		53.9	%	343,730		83.4	%
Total Net Premiums Earned	$	76,828	100.0	%	$	411,986	100.0	%