Segment Information

12 Months Ended

Dec. 31, 2016

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 operating units into the following reportable segments:

	Specialty Commercial Segment. Our Specialty Commercial Segment includes the excess and surplus lines commercial property/casualty insurance products and services handled by our MGA Commercial Products operating unit and the general aviation, satellite launch, commercial umbrella and primary/excess liability, medical professional liability and primary/excess commercial property insurance products and services handled by our Specialty Commercial operating unit. Certain specialty programs are also managed by our Specialty Commercial operating unit. Our MGA Commercial Products operating unit is comprised of our HSU, PAAC and TGASRI subsidiaries. Our Specialty Commercial operating unit is comprised of our Aerospace Insurance Managers, ASRI, ACMG, HXS and HDS subsidiaries.
	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 operating unit and the workers compensation insurance products handled by our Workers Compensation operating unit. Effective June 1, 2016, we no longer market new or renewal occupational accident policies. Effective July 1, 2015, the Workers Compensation operating unit no longer retains any risk on new or renewal policies. Our Standard Commercial P&C operating unit is comprised of our American Hallmark Insurance Services and ECM subsidiaries. Our Workers Compensation operating unit is comprised of our TBIC Holdings, TBIC and TBICRM subsidiaries.
	Personal Segment. Our Personal Segment includes the non-standard personal automobile and renters insurance products and services handled by our Specialty Personal Lines operating unit. During the fourth quarter of 2014, our Specialty Personal Lines operating unit discontinued the low value dwelling/homeowners and manufactured homes insurance products it previously offered. Our Specialty Personal Lines operating unit is comprised of AHGA and HCS.

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 34% of the net premiums written by any of them, HIC retains 32% of the net premiums written by any of them, HSIC retains 24% of the net premiums written by any of them and HNIC retains 10% 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, 2016, 2015 and 2014 (in thousands):

	2016		2015		2014
Revenues
Specialty Commercial Segment	$	255,897	$	249,910	$	241,920
Standard Commercial Segment		71,966		76,864		81,464
Personal Segment		49,826		45,538		20,404
Corporate		(1,737)		90		(6,422)
Consolidated	$	375,952	$	372,402	$	337,366
Depreciation and Amortization Expense
Specialty Commercial Segment	$	2,579	$	2,537	$	2,503
Standard Commercial Segment		101		136		183
Personal Segment		1,070		779		515
Corporate		144		64		23
Consolidated	$	3,894	$	3,516	$	3,224
Interest Expense
Specialty Commercial Segment	$	-	$	-	$	-
Standard Commercial Segment		-		-		-
Personal Segment		-		-		-
Corporate		4,549		3,906		4,576
Consolidated	$	4,549	$	3,906	$	4,576
Tax Expense (Benefit)
Specialty Commercial Segment	$	7,886	$	11,609	$	9,690
Standard Commercial Segment		3,011		1,436		622
Personal Segment		(3,821)		(1,345)		(574)
Corporate		(5,124)		(1,677)		(4,385)
Consolidated	$	1,952	$	10,023	$	5,353
Pre-tax Income (Loss)
Specialty Commercial Segment	$	24,417	$	40,277	$	34,237
Standard Commercial Segment		8,866		6,687		4,595
Personal Segment		(6,839)		(885)		1,226
Corporate		(17,966)		(14,193)		(21,276)
Consolidated	$	8,478	$	31,886	$	18,782

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

	December 31
	2016		2015
Assets
Specialty Commercial Segment	$	734,763	$	660,263
Standard Commercial Segment		164,295		156,722
Personal Segment		241,686		239,632
Corporate		21,716		18,930
Consolidated	$	1,162,460	$	1,075,547