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Segment Reporting | 6 Months Ended
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Jun. 30, 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 |  | Six Months Ended
Reinsurance | June 30, |  | June 30,
(Dollars in thousands) | 2020 |  | 2019 |  | 2020 |  | 2019
Gross written premiums | $ | 1,538,348 |  | $ | 1,409,587 |  | $ | 3,316,119 |  | $ | 2,941,638
Net written premiums |  | 1,424,089 |  |  | 1,234,686 |  |  | 3,037,183 |  |  | 2,629,239
Premiums earned | $ | 1,502,256 |  | $ | 1,343,760 |  | $ | 2,987,476 |  | $ | 2,651,279
Incurred losses and LAE |  | 1,005,677 |  |  | 783,082 |  |  | 2,026,319 |  |  | 1,555,280
Commission and brokerage |  | 387,339 |  |  | 345,378 |  |  | 757,695 |  |  | 668,015
Other underwriting expenses |  | 39,698 |  |  | 37,430 |  |  | 83,837 |  |  | 73,199
Underwriting gain (loss) | $ | 69,542 |  | $ | 177,870 |  | $ | 119,625 |  | $ | 354,785
| Three Months Ended |  | Six Months Ended
Insurance | June 30, |  | June 30,
(Dollars in thousands) | 2020 |  | 2019 |  | 2020 |  | 2019
Gross written premiums | $ | 830,990 |  | $ | 757,068 |  | $ | 1,624,090 |  | $ | 1,352,125
Net written premiums |  | 593,389 |  |  | 549,297 |  |  | 1,181,774 |  |  | 1,006,442
Premiums earned | $ | 540,149 |  | $ | 473,539 |  | $ | 1,091,743 |  | $ | 898,717
Incurred losses and LAE |  | 401,339 |  |  | 311,548 |  |  | 811,537 |  |  | 587,900
Commission and brokerage |  | 78,977 |  |  | 75,572 |  |  | 157,143 |  |  | 142,409
Other underwriting expenses |  | 78,432 |  |  | 67,403 |  |  | 163,153 |  |  | 130,619
Underwriting gain (loss) | $ | (18,599) |  | $ | 19,016 |  | $ | (40,090) |  | $ | 37,789
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 |  | Six Months Ended
| June 30, |  | June 30,
(Dollars in thousands) | 2020 |  | 2019 |  | 2020 |  | 2019
Underwriting gain (loss) | $ | 50,943 |  | $ | 196,886 |  | $ | 79,535 |  | $ | 392,574
Net investment income |  | 38,083 |  |  | 179,028 |  |  | 185,883 |  |  | 320,004
Net realized capital gains (losses) |  | 184,648 |  |  | 30,272 |  |  | (25,940) |  |  | 122,504
Net derivative gain (loss) |  | 11,869 |  |  | 353 |  |  | (3,504) |  |  | 3,584
Corporate expenses |  | (8,733) |  |  | (7,535) |  |  | (18,566) |  |  | (14,187)
Interest, fee and bond issue cost amortization expense |  | (7,253) |  |  | (8,434) |  |  | (14,836) |  |  | (16,065)
Other income (expense) |  | (32,490) |  |  | (18,225) |  |  | (9,127) |  |  | (21,525)
Income (loss) before taxes | $ | 237,067 |  | $ | 372,345 |  | $ | 193,445 |  | $ | 786,889
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 |  | Six Months Ended
| June 30, |  | June 30,
(Dollars in thousands) | 2020 |  | 2019 |  | 2020 |  | 2019
United Kingdom gross written premium | $ | 236,100 |  | $ | 207,140 |  | $ | 542,808 |  | $ | 470,997
No other country represented more than 5% of the Company’s revenues.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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