XML 25 R15.htm IDEA: XBRL DOCUMENT v3.20.2
Segment Information
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment Information Segment InformationThe Company has four reportable segments: the Excess and Surplus Lines segment, the Specialty Admitted Insurance segment, the Casualty Reinsurance segment, and the Corporate and Other segment. Segment profit (loss) is measured by underwriting profit (loss), which is generally defined as net earned premiums less loss and loss adjustment expenses and other operating expenses of the operating segments. Included in “other income” on the condensed consolidated statements of income (loss) and comprehensive income is gross fee income of $744,000 and $2.4 million for the three and six months ended June 30, 2020, respectively, ($2.3 million and $5.0 million the three and six months ended June 30, 2019, respectively) that is included in underwriting profit for the respective three and six month periods. Segment results are reported prior to the effects of intercompany reinsurance agreements among the Company’s insurance subsidiaries.
The following table summarizes the Company’s segment results:
 Excess and
Surplus
Lines		Specialty
Admitted
Insurance		Casualty
Reinsurance		Corporate
and
Other		Total
 (in thousands)
Three Months Ended June 30, 2020
Gross written premiums$186,994  $88,440  $26,205  $—  $301,639  
Net earned premiums100,849  14,392  33,574  —  148,815  
Underwriting profit (loss) of insurance segments
16,095  1,430  (2,637) —  14,888  
Net investment income3,336  812  10,534  668  15,350  
Interest expense—  —  —  2,965  2,965  
Segment revenues113,343  15,870  56,794  742  186,749  
Segment goodwill181,831  —  —  —  181,831  
Segment assets2,304,169  838,753  1,808,921  57,358  5,009,201  
Three Months Ended June 30, 2019
Gross written premiums$260,277  $89,472  $30,254  $—  $380,003  
Net earned premiums150,921  13,086  35,107  —  199,114  
Underwriting profit (loss) of insurance segments
15,810  1,298  (100) —  17,008  
Net investment income4,229  918  11,986  402  17,535  
Interest expense—  —  —  2,684  2,684  
Segment revenues158,574  14,940  46,318  542  220,374  
Segment goodwill181,831  —  —  —  181,831  
Segment assets1,122,080  721,506  1,544,565  62,956  3,451,107  
Six Months Ended June 30, 2020
Gross written premiums$323,191  $191,242  $71,047  $—  $585,480  
Net earned premiums200,588  27,675  66,470  —  294,733  
Underwriting profit (loss) of insurance segments
24,207  442  (2,430) —  22,219  
Net investment income11,277  1,740  22,138  1,031  36,186  
Interest expense—  —  —  5,841  5,841  
Segment revenues197,172  28,543  70,074  1,244  297,033  
Segment goodwill181,831  —  —  —  181,831  
Segment assets2,304,169  838,753  1,808,921  57,358  5,009,201  
Six Months Ended June 30, 2019     
Gross written premiums$446,826  $192,425  $68,086  $—  $707,337  
Net earned premiums292,593  25,446  71,227  —  389,266  
Underwriting profit of insurance segments
28,912  2,921  227  —  32,060  
Net investment income9,773  1,815  23,158  2,220  36,966  
Interest expense—  —  —  5,492  5,492  
Segment revenues311,011  28,676  92,328  2,486  434,501  
Segment goodwill181,831  —  —  —  181,831  
Segment assets1,122,080  721,506  1,544,565  62,956  3,451,107  
  
The following table reconciles the underwriting profit (loss) of the operating segments by individual segment to consolidated income before taxes:
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2020201920202019
 (in thousands)
Underwriting profit (loss) of the insurance segments:    
Excess and Surplus Lines$16,095  $15,810  $24,207  $28,912  
Specialty Admitted Insurance1,430  1,298  442  2,921  
Casualty Reinsurance(2,637) (100) (2,430) 227  
Total underwriting profit of insurance segments14,888  17,008  22,219  32,060  
Other operating expenses of the Corporate and Other segment(7,472) (7,433) (15,751) (15,339) 
Underwriting profit7,416  9,575  6,468  16,721  
Net investment income15,350  17,535  36,186  36,966  
Net realized and unrealized gains (losses) on investments21,593  1,063  (36,814) 2,688  
Amortization of intangible assets(149) (149) (298) (298) 
Other income and expenses(1,485) (378) (1,159) (132) 
Interest expense(2,965) (2,684) (5,841) (5,492) 
Income (loss) before taxes$39,760  $24,962  $(1,458) $50,453