Segment Information

12 Months Ended

Dec. 31, 2017

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 Contract Binding operating unit and the general aviation, satellite launch, commercial umbrella and primary/excess liability, medical and financial 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 Contract Binding 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 ceased marketing new or renewal occupational accident policies. Effective July 1, 2015, the Workers Compensation operating unit ceased retaining 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. 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, 2017, 2016 and 2015 (in thousands):

	2017		2016		2015
Revenues
Specialty Commercial Segment	$	277,946	$	255,897	$	249,910
Standard Commercial Segment		70,302		71,966		76,864
Personal Segment		40,462		49,826		45,538
Corporate		(3,189)		(1,737)		90
Consolidated	$	385,521	$	375,952	$	372,402
Depreciation and Amortization Expense
Specialty Commercial Segment	$	2,796	$	2,579	$	2,537
Standard Commercial Segment		294		101		136
Personal Segment		1,258		1,070		779
Corporate		367		144		64
Consolidated	$	4,715	$	3,894	$	3,516
Interest Expense
Specialty Commercial Segment	$	-	$	-	$	-
Standard Commercial Segment		-		-		-
Personal Segment		-		-		-
Corporate		4,512		4,549		3,906
Consolidated	$	4,512	$	4,549	$	3,906
Tax (Benefit) Expense
Specialty Commercial Segment	$	(4,382)	$	7,886	$	11,609
Standard Commercial Segment		3,849		3,011		1,436
Personal Segment		(676)		(3,821)		(1,345)
Corporate		(3,810)		(5,124)		(1,677)
Consolidated	$	(5,019)	$	1,952	$	10,023
Pre-tax income (loss)
Specialty Commercial Segment	$	2,012	$	24,417	$	40,277
Standard Commercial Segment		2,440		8,866		6,687
Personal Segment		(3,058)		(6,839)		(885)
Corporate		(17,966)		(17,966)		(14,193)
Consolidated	$	(16,572)	$	8,478	$	31,886

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

	December 31
	2017		2016
Assets
Specialty Commercial Segment	$	810,133	$	734,763
Standard Commercial Segment		162,152		164,295
Personal Segment		232,441		241,686
Corporate		26,400		21,716
Consolidated	$	1,231,126	$	1,162,460