XML 27 R23.htm IDEA: XBRL DOCUMENT

Segment Reporting

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Segment Reporting

16. SEGMENT REPORTING

The Reinsurance operation writes worldwide property and casualty reinsurance and specialty lines of business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies. Business is written in the U.S., Bermuda, and Ireland offices, as well as, through branches in Canada, Singapore and the United Kingdom. The Insurance operation writes property and casualty insurance directly and through brokers, surplus lines brokers and general agents within the U.S., Canada and Europe through its offices in the U.S., Canada, Ireland and a branch located in Zurich.

These segments are managed independently, but conform with corporate guidelines with respect to pricing, risk management, control of aggregate catastrophe exposures, capital, investments and support operations. Management generally monitors and evaluates the financial performance of these operating segments based upon their underwriting results.

Underwriting results include earned premium less losses and loss adjustment expenses (“LAE”) incurred, commission and brokerage expenses and other underwriting expenses. We measure our underwriting results using ratios, in particular loss, commission and brokerage and other underwriting expense ratios, which, respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned.

The Company does not maintain separate balance sheet data for its operating segments. Accordingly, the Company does not review and evaluate the financial results of its operating segments based upon balance sheet data.

The following tables present the underwriting results for the operating segments for the periods indicated

	Three Months Ended
Reinsurance	March 31,
(Dollars in thousands)	2020			2019
Gross written premiums	$	1,777,771		$	1,532,051
Net written premiums		1,613,094			1,394,553

Premiums earned	$	1,485,221		$	1,307,519
Incurred losses and LAE		1,020,642			772,198
Commission and brokerage		370,356			322,637
Other underwriting expenses		44,139			35,769
Underwriting gain (loss)	$	50,084		$	176,915

	Three Months Ended
Insurance	March 31,
(Dollars in thousands)	2020			2019
Gross written premiums	$	793,100		$	595,057
Net written premiums		588,385			457,145

Premiums earned	$	551,593		$	425,178
Incurred losses and LAE		410,198			276,352
Commission and brokerage		78,166			66,837
Other underwriting expenses		84,721			63,216
Underwriting gain (loss)	$	(21,492)		$	18,773

The following table reconciles the underwriting results for the operating segments to income before taxes as reported in the consolidated statements of operations and comprehensive income (loss) for the periods indicated:

	Three Months Ended
	March 31,
(Dollars in thousands)	2020			2019
Underwriting gain (loss)	$	28,592		$	195,688
Net investment income		147,800			140,976
Net realized capital gains (losses)		(210,588)			92,232
Net derivative gain (loss)		(15,373)			3,231
Corporate expenses		(9,833)			(6,652)
Interest, fee and bond issue cost amortization expense		(7,583)			(7,631)
Other income (expense)		23,363			(3,300)
Income (loss) before taxes	$	(43,622)		$	414,544

The Company produces business in the U.S., Bermuda and internationally. The net income deriving from and assets residing in the individual foreign countries in which the Company writes business are not identifiable in the Company’s financial records. Based on gross written premium, the table below presents the largest country, other than the U.S., in which the Company writes business, for the periods indicated:

	Three Months Ended
	March 31,
(Dollars in thousands)	2020			2019
United Kingdom gross written premium	$	306,708		$	263,857

No other country represented more than 5% of the Company’s revenues.