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Segment Reporting
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting

17. 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:

Reinsurance

Years Ended December 31,

(Dollars in thousands)

2020

 

2019

 

2018

Gross written premiums

$

7,281,716

 

$

6,355,889

 

$

6,224,601

Net written premiums

 

6,767,579

 

 

5,732,272

 

 

5,706,453

 

 

 

 

 

 

 

 

 

Premiums earned

$

6,466,106

 

$

5,491,296

 

$

5,293,071

Incurred losses and LAE

 

4,933,411

 

 

3,675,178

 

 

4,585,602

Commission and brokerage

 

1,552,371

 

 

1,400,247

 

 

1,251,581

Other underwriting expenses

 

175,734

 

 

160,834

 

 

142,874

Underwriting gain (loss)

$

(195,410)

 

$

255,037

 

$

(686,986)

Insurance

Years Ended December 31,

(Dollars in thousands)

2020

 

2019

 

2018

Gross written premiums

$

3,200,645

 

$

2,777,475

 

$

2,250,552

Net written premiums

 

2,349,404

 

 

2,092,152

 

 

1,707,975

 

 

 

 

 

 

 

 

 

Premiums earned

$

2,215,407

 

$

1,912,390

 

$

1,638,628

Incurred losses and LAE

 

1,617,426

 

 

1,247,720

 

 

1,065,801

Commission and brokerage

 

320,879

 

 

303,479

 

 

267,449

Other underwriting expenses

 

335,503

 

 

280,065

 

 

228,667

Underwriting gain (loss)

$

(58,401)

 

$

81,126

 

$

76,711

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:

 

Years Ended December 31,

(Dollars in thousands)

2020

 

2019

 

2018

Underwriting gain (loss)

$

(253,811)

 

$

336,163

 

$

(610,275)

Net investment income

 

642,465

 

 

647,139

 

 

581,183

Net realized capital gains (losses)

 

267,649

 

 

185,004

 

 

(127,136)

Corporate expenses

 

(41,118)

 

 

(32,966)

 

 

(30,672)

Interest, fee and bond issue cost amortization expense

 

(36,323)

 

 

(31,693)

 

 

(31,031)

Other income (expense)

 

6,487

 

 

(4,660)

 

 

(24,251)

Income (loss) before taxes

$

585,349

 

$

1,098,987

 

$

(242,182)

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:

 

Year Ended December 31,

(Dollars in thousands)

2020

 

2019

 

2018

United Kingdom gross written premium

$

1,116,363

 

$

964,358

 

$

914,612

Approximately 20.1%, 23.1% and 19.7% of the Company’s gross written premiums in 2020, 2019 and 2018, respectively, were sourced through the Company’s largest intermediary.