Segment Information

12 Months Ended

Dec. 31, 2014

Segment Information [Abstract]

Segment Information

10. Segment Information:

We pursue our business activities primarily through subsidiaries whose operations are organized into producing units and are supported by our insurance carrier subsidiaries. Our non-carrier insurance activities are organized by business units into the following reportable segments:

 Standard Commercial Segment. The Standard Commercial Segment includes the standard lines commercial property/casualty and occupational accident insurance products and services handled by our Standard Commercial P&C business unit and the workers compensation insurance products handled by our Workers Compensation business unit. Our Standard Commercial P&C business unit is comprised of our American Hallmark Insurance Services and ECM subsidiaries. Our Workers Compensation business unit is comprised of our TBIC Holdings, TBIC and TBICRM subsidiaries.

 Specialty Commercial Segment. The Specialty Commercial Segment includes the excess and surplus lines commercial property/casualty insurance products and services handled by our E&S Commercial business unit and the general aviation, commercial umbrella and excess liability, medical professional liability and satellite launch insurance products and services handled by our Hallmark Select business unit, as well as certain Specialty Programs which are managed at the parent level. Our E&S Commercial business unit is comprised of our HSU, PAAC and TGASRI subsidiaries. Our Hallmark Select business unit is comprised of our Aerospace Insurance Managers, ASRI, ACMG, HXS and HDS subsidiaries.

 Personal Segment. The Personal Segment includes the non-standard personal automobile and renters insurance products and services handled by our Personal Lines business unit which is comprised of American Hallmark General Agency, Inc. and Hallmark Claims Services, Inc., both of which do business as Hallmark Insurance Company. During the fourth quarter of 2014, our Personal Lines business unit discontinued the low value dwelling/homeowner’s and manufactured homes insurance products it previously offered.

The retained premium produced by these reportable segments is supported by our AHIC, HSIC, HIC, HNIC and TBIC insurance company subsidiaries. In addition, control and management of HCM is maintained through our wholly owned subsidiary, CYR Insurance Management Company (“CYR”). CYR has as its primary asset a management agreement with HCM which provides for CYR to have management and control of HCM. HCM is used to front certain lines of business in our Specialty Commercial and Personal Segments in Texas. HCM does not retain any business.

AHIC, HIC, HSIC and HNIC have entered into a pooling arrangement, pursuant to which AHIC retains 30% of the net premiums written by any of them, HIC retains 27% of the net premiums written by any of them, HSIC retains 30% of the net premiums written by any of them and HNIC retains 13% of the net premiums written by any of them. Neither HCM nor TBIC is a party to the intercompany pooling arrangement.

The following is additional business segment information for the twelve months ended December 31, 2014, 2013 and 2012 (in thousands):

	2014		2013		2012
Revenues
Standard Commercial Segment	$	81,464	$	83,306	$	73,119
Specialty Commercial Segment		241,920		229,734		178,917
Personal Segment		20,404		71,081		89,149
Corporate		(6,422)		5,307		615
Consolidated	$	337,366	$	389,428	$	341,800
Depreciation and Amortization Expense
Standard Commercial Segment	$	183	$	201	$	186
Specialty Commercial Segment		2,503		2,896		2,892
Personal Segment		515		1,111		1,230
Corporate		23		92		113
Consolidated	$	3,224	$	4,300	$	4,421
Interest Expense
Standard Commercial Segment	$	-	$	-	$	-
Specialty Commercial Segment		-		-		-
Personal Segment		-		-		-
Corporate		4,576		4,599		4,634
Consolidated	$	4,576	$	4,599	$	4,634
Tax Expense (Benefit)
Standard Commercial Segment	$	622	$	312	$	372
Specialty Commercial Segment		9,690		3,613		1,875
Personal Segment		(574)		(398)		(968)
Corporate		(4,385)		(692)		(1,753)
Consolidated	$	5,353	$	2,835	$	(474)
Pre-tax Income (Loss), net of non-controlling interest
Standard Commercial Segment	$	4,595	$	1,980	$	(2,486)
Specialty Commercial Segment		34,237		19,527		25,932
Personal Segment		1,226		(3,416)		(8,535)
Corporate		(21,276)		(7,011)		(11,861)
Consolidated	$	18,782	$	11,080	$	3,050

The following is additional business segment information as of the following dates (in thousands):

	December 31
	2014		2013
Assets
Standard Commercial Segment	$	145,355	$	142,143
Specialty Commercial Segment		590,852		536,894
Personal Segment		222,183		210,825
Corporate		22,479		19,161
Consolidated	$	980,869	$	909,023