Operating Segment Information

3 Months Ended

Mar. 31, 2026

Segment Reporting [Abstract]

Operating Segment Information

7. OPERATING SEGMENT INFORMATION

The Company’s chief operating decision maker (CODM) is the chief executive officer. The Company’s CODM assesses the segments’ performance by using earnings before income taxes (underwriting income) and the combined ratio. Underwriting income and combined ratio are analyzed at the segment level and influence how resources are allocated. Decisions are made based on what is likely to provide the best long-term return to the Company.

Amortization of deferred acquisition costs represents the recognition of commission and premium taxes over the life of insurance polices, in proportion to premium revenue recognized. The other policy acquisition costs line item includes other expenses associated with underwriting, but that cannot be specifically associated with the successful acquisition of a policy, including, but not limited to, employment costs for underwriters and underwriting support as well as costs for policy acquisition systems. Insurance operating expenses reflect allocated costs from various support departments, such as corporate technology, accounting, human resources and facilities, among others.

Net investment income consists of the interest and dividend income streams from our investments in fixed income and equity securities. Interest expense represents the cost of debt and lines of credit. General corporate expenses include director and shareholder relation costs and other compensation-related expenses incurred for the benefit of the corporation, but not attributable to the operations of our insurance segments. Investee earnings represents our 23 percent share in earnings of Prime Holdings Insurance Services, Inc., a privately held insurance company which specializes in hard-to-place risks. Assets, and the revenues and expenses associated with investing and financing activities, are not managed at the segment level and therefore are not allocated to segments.

All segment revenues are from external customers and all long-lived assets are held domestically. We have no material foreign operations or customer concentrations and have no intersegment revenues.

The following table summarizes revenues by major product type within each operating segment:

	For the Three Months
Net Premiums Earned	Ended March 31,
(in thousands)	2026		2025
Casualty
Commercial excess and personal umbrella	$	124,216	$	103,209
Commercial transportation		30,694		30,259
Professional services		27,949		26,587
General liability		26,208		26,718
Small commercial		19,322		19,915
Executive products		5,873		5,943
Other casualty		14,304		16,417
Total	$	248,566	$	229,048
Property
Commercial property	$	72,960	$	82,812
Marine		39,219		37,709
Other property		14,199		12,023
Total	$	126,378	$	132,544
Surety
Transactional	$	13,295	$	12,660
Commercial		12,635		12,776
Contract		10,512		11,317
Total	$	36,442	$	36,753
Grand Total	$	411,386	$	398,345

The following tables present our operating results by segment, as evaluated by the CODM.

For the Three Months Ended March 31, 2026
(in thousands)		Casualty		Property		Surety		Total
Revenue
Net premiums earned	$	248,566	$	126,378	$	36,442	$	411,386
Net investment income		-		-		-		42,321
Net realized gains		-		-		-		9,559
Net unrealized gains (losses) on equity securities		-		-		-		(39,396)
Consolidated revenue	$	248,566	$	126,378	$	36,442	$	423,870
Less: Expenses
Losses and settlement expenses	$	152,832	$	33,854	$	6,558
Amortization of deferred acquisition costs		47,482		25,342		12,735
Other policy acquisition costs		24,232		10,813		11,471
Insurance operating expenses		16,727		8,184		3,369
Segment earnings before income taxes	$	7,293	$	48,185	$	2,309	$	57,787
Depreciation and amortization expense	$	1,597	$	538	$	365

For the Three Months Ended March 31, 2025
(in thousands)		Casualty		Property		Surety		Total
Revenue
Net premiums earned	$	229,048	$	132,544	$	36,753	$	398,345
Net investment income		-		-		-		36,726
Net realized gains		-		-		-		14,912
Net unrealized gains (losses) on equity securities		-		-		-		(42,318)
Consolidated revenue	$	229,048	$	132,544	$	36,753	$	407,665
Less: Expenses
Losses and settlement expenses	$	145,835	$	32,725	$	(1,322)
Amortization of deferred acquisition costs		42,903		26,976		12,602
Other policy acquisition costs		22,669		7,957		10,580
Insurance operating expenses		15,570		7,971		3,333
Segment earnings before income taxes	$	2,071	$	56,915	$	11,560	$	70,546
Depreciation and amortization expense	$	1,505	$	498	$	310

The following table reconciles segment earnings before income taxes to earnings before income taxes.

	For the Three Months
	Ended March 31,
(in thousands)	2026		2025
Reconciliation of earnings before income taxes
Segment earnings before income taxes	$	57,787	$	70,546
Net investment income		42,321		36,726
Net realized gains		9,559		14,912
Net unrealized gains (losses) on equity securities		(39,396)		(42,318)
Interest expense on debt		(2,353)		(1,335)
General corporate expenses		(2,724)		(2,948)
Equity in earnings of unconsolidated investees		2,147		3,048
Earnings before income taxes	$	67,341	$	78,631