SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company’s operations consist of a property and casualty insurance segment and a reinsurance segment.  The property and casualty insurance segment writes both commercial and personal lines of insurance, with a focus on medium-sized commercial accounts.  The reinsurance segment provides reinsurance for other insurers and reinsurers.  The segments are managed separately due to differences in the insurance products sold and the business environments in which they operate. Management evaluates the performance of its insurance segments using financial measurements based on Statutory Accounting Principles (SAP) instead of GAAP. Such measures include premiums written, premiums earned, statutory underwriting profit (loss), and investment results, as well as loss and loss adjustment expense ratios, trade underwriting expense ratios, and combined ratios.

Summarized financial information for the Company’s segments is as follows:

Three months ended March 31, 2017	Property and casualty insurance			Reinsurance			Parent company			Consolidated
($ in thousands)
Premiums earned	$	113,648		$	30,839		$	—		$	144,487
Underwriting profit (loss):
SAP underwriting profit (loss)	(2,594		)	3,247			—			653
GAAP adjustments	(1,007		)	(331		)	—			(1,338		)
GAAP underwriting profit (loss)	(3,601		)	2,916			—			(685		)
Net investment income	8,015			2,983			9			11,007
Net realized investment losses	(597		)	(30		)	—			(627		)
Other income (loss)	161			(571		)	—			(410		)
Interest expense	84			—			—			84
Other expenses	179			—			582			761
Income (loss) before income tax expense (benefit)	$	3,715		$	5,298		$	(573	)	$	8,440
Assets	$	1,119,323		$	465,017		$	564,787		$	2,149,127
Eliminations	—			—			(554,504		)	(554,504		)
Reclassifications	(1,716		)	—			(1,297		)	(3,013		)
Total assets	$	1,117,607		$	465,017		$	8,986		$	1,591,610

Three months ended March 31, 2016	Property and casualty insurance			Reinsurance			Parent company			Consolidated
($ in thousands)
Premiums earned	$	110,446		$	32,291		$	—		$	142,737
Underwriting profit (loss):
SAP underwriting profit (loss)	10,466			2,062			—			12,528
GAAP adjustments	(1,861		)	(191		)	—			(2,052		)
GAAP underwriting profit (loss)	8,605			1,871			—			10,476
Net investment income	8,771			3,457			2			12,230
Net realized investment losses	(846		)	(239		)	—			(1,085		)
Other income (loss)	132			(143		)	—			(11		)
Interest expense	84			—			—			84
Other expenses	157			—			492			649
Income (loss) before income tax expense (benefit)	$	16,421		$	4,946		$	(490	)	$	20,877
Year ended December 31, 2016
Assets	$	1,122,037		$	455,493		$	554,164		$	2,131,694
Eliminations	—			—			(540,249		)	(540,249		)
Reclassifications	—			(1,932		)	(700		)	(2,632		)
Total assets	$	1,122,037		$	453,561		$	13,215		$	1,588,813

The following table displays the net premiums earned for the property and casualty insurance segment and the reinsurance segment for the three months ended March 31, 2017 and 2016, by line of insurance.

	Three months ended March 31,
($ in thousands)	2017		2016
Property and casualty insurance segment
Commercial lines:
Automobile	$	28,032	$	26,927
Property	25,502		24,748
Workers' compensation	24,703		23,247
Liability	24,128		23,670
Other	2,109		2,071
Total commercial lines	104,474		100,663
Personal lines	9,174		9,783
Total property and casualty insurance	$	113,648	$	110,446
Reinsurance segment
Pro rata reinsurance	$	10,435	$	13,641
Excess of loss reinsurance	20,404		18,650
Total reinsurance	$	30,839	$	32,291
Consolidated	$	144,487	$	142,737