Segment reporting (Tables)

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Schedule of operating segments

The following is a summary of the Company’s operating segments results for the three months ended March 31, 2014 and 2013:

	Three Months Ended March 31, 2014
	Property and Casualty Reinsurance			Catastrophe Risk Management			Corporate			Total
Revenues	($ in thousands)
Gross premiums written	$	82,142		$	5,445		$	—		$	87,587
Gross premiums ceded	—			—			—			—
Net premiums written	82,142			5,445			—			87,587
Change in net unearned premium reserves	(9,841		)	(4,484		)	—			(14,325		)
Net premiums earned	72,301			961			—			73,262
Expenses
Loss and loss adjustment expenses incurred, net	46,259			—			—			46,259
Acquisition costs, net	25,399			32			—			25,431
General and administrative expenses	5,809			834			3,382			10,025
Total expenses	77,467			866			3,382			81,715
Underwriting loss	(5,166		)	n/a			n/a			n/a
Net investment income	7,313			29			42,693			50,035
Other expenses	(787		)	—			—			(787		)
Segment income including non-controlling interests	1,360			124			39,311			40,795
Segment income attributable to non-controlling interests	—			(191		)	(825		)	(1,016		)
Segment income (loss)	$	1,360		$	(67	)	$	38,486		$	39,779
Property and Casualty Reinsurance - Underwriting Ratios:
Loss ratio (1)	64.0		%
Acquisition cost ratio (2)	35.1		%
Composite ratio (3)	99.1		%
General and administrative expense ratio (4)	8.0		%
Combined ratio (5)	107.1		%

(1) Loss ratio is calculated by dividing loss and loss adjustment expenses incurred, net by net premiums earned.

(2) Acquisition cost ratio is calculated by dividing acquisition costs, net by net premiums earned.

(3) Composite ratio is calculated by dividing the sum of loss and loss adjustment expenses incurred, net and acquisition costs, net by net premiums earned.

(4) General and administrative expense ratio is calculated by dividing general and administrative expenses related to underwriting activities by net premiums earned.

(5) Combined ratio is calculated by dividing the sum of loss and loss adjustment expenses incurred, net, acquisition costs, net and general and administrative expenses related to underwriting activities by net premiums earned.

	Three Months Ended March 31, 2013
	Property and Casualty Reinsurance			Catastrophe Risk Management			Corporate			Total
Revenues	($ in thousands)
Gross premiums written	$	92,871		$	3,149		$	—		$	96,020
Gross premiums ceded	(9,975		)	—			—			(9,975		)
Net premiums written	82,896			3,149			—			86,045
Change in net unearned premium reserves	(50,253		)	(2,251		)	—			(52,504		)
Net premiums earned	32,643			898			—			33,541
Expenses
Loss and loss adjustment expenses incurred, net	18,638			—			—			18,638
Acquisition costs, net	12,991			82			—			13,073
General and administrative expenses	4,816			785			1,407			7,008
Total expenses	36,445			867			1,407			38,719
Underwriting loss	(3,802		)	n/a			n/a			n/a
Net investment income	5,526			767			75,068			81,361
Other expenses	(670		)	—			—			(670		)
Segment income including non-controlling interests	1,054			798			73,661			75,513
Segment income attributable to non-controlling interests	—			(579		)	(504		)	(1,083		)
Segment income	$	1,054		$	219		$	73,157		$	74,430
Property and Casualty Reinsurance - Underwriting Ratios:
Loss ratio (1)	57.1		%
Acquisition cost ratio (2)	39.8		%
Composite ratio (3)	96.9		%
General and administrative expense ratio (4)	14.7		%
Combined ratio (5)	111.6		%

(1)Loss ratio is calculated by dividing loss and loss adjustment expenses incurred, net by net premiums earned.

(2)Acquisition cost ratio is calculated by dividing acquisition costs, net by net premiums earned.

(3) Composite ratio is calculated by dividing the sum of loss and loss adjustment expenses incurred, net and acquisition costs, net by net premiums earned.

(4) General and administrative expense ratio is calculated by dividing general and administrative expenses related to underwriting activities by net premiums earned.

(5) Combined ratio is calculated by dividing the sum of loss and loss adjustment expenses incurred, net, acquisition costs, net and general and administrative expenses related to underwriting activities by net premiums earned.

Schedule of breakdown of the Company’s gross premiums written by line of business

The following table provides a breakdown of the Company’s gross premiums written by line of business for the

three months ended March 31, 2014 and 2013:

	2014				2013
	($ in thousands)
Property	$	6,881	7.9	%	$	350	0.4	%
Casualty	50,423		57.5	%	52,208		54.3	%
Specialty	24,838		28.4	%	40,313		42.0	%
Total property and casualty reinsurance	82,142		93.8	%	92,871		96.7	%
Catastrophe risk management	5,445		6.2	%	3,149		3.3	%
	$	87,587	100.0	%	$	96,020	100.0	%

The following table provides a breakdown of the Company’s gross premiums written by prospective and retroactive reinsurance contracts for the three months ended March 31, 2014 and 2013:

	2014				2013
	($ in thousands)
Prospective	$	85,485	97.6	%	$	96,020	100.0	%
Retroactive	2,102		2.4	%	—		—	%
	$	87,587	100.0	%	$	96,020	100.0	%

Schedule of breakdown of the Company’s gross premiums written from brokers

The following table provides a breakdown of the Company’s gross premiums written from brokers for the three months ended March 31, 2014 and 2013:

	2014					2013
	($ in thousands)
Stonehill Reinsurance Partners, LLC	$	44,744		51.1	%	$	—		—	%
Aon Benfield - a division of Aon plc	5,996			6.8	%	49,904			52.0	%
Guy Carpenter & Company, LLC	(414		)	(0.5	)%	1,564			1.6	%
Advocate Reinsurance Partners, LLC	8,455			9.7	%	(640		)	(0.7	)%
BMS Intermediaries	—			—	%	8,213			8.6	%
Other brokers	2,622			3.0	%	3,842			4.0	%
Total broker placed	61,403			70.1	%	62,883			65.5	%
Other	26,184			29.9	%	33,137			34.5	%
	$	87,587		100.0	%	$	96,020		100.0	%

Schedule of breakdown of the Company’s gross premiums written by domicile of the ceding companies

The following table provides a breakdown of the Company’s gross premiums written by domicile of the ceding companies for the three months March 31, 2014 and 2013:

	2014				2013
	($ in thousands)
United States	$	58,077	66.3	%	$	49,657	51.7	%
United Kingdom	24,837		28.4	%	—		—	%
Bermuda	4,673		5.3	%	44,963		46.8	%
Other	—		—	%	1,400		1.5	%
	$	87,587	100.0	%	$	96,020	100.0	%