XML 32 R20.htm IDEA: XBRL DOCUMENT v3.21.1
Segment Reporting
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment Reporting

13. 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)

2021

 

2020

Gross written premiums

$

2,059,015

 

$

1,777,771

Net written premiums

 

1,912,950

 

 

1,613,094

 

 

 

 

 

 

Premiums earned

$

1,777,452

 

$

1,485,221

Incurred losses and LAE

 

1,271,906

 

 

1,020,642

Commission and brokerage

 

408,724

 

 

370,356

Other underwriting expenses

 

51,996

 

 

44,139

Underwriting gain (loss)

$

44,826

 

$

50,084

 

Three Months Ended

Insurance

March 31,

(Dollars in thousands)

2021

 

2020

Gross written premiums

$

872,418

 

$

793,100

Net written premiums

 

640,987

 

 

588,385

 

 

 

 

 

 

Premiums earned

$

610,413

 

$

551,593

Incurred losses and LAE

 

439,513

 

 

410,198

Commission and brokerage

 

80,287

 

 

78,166

Other underwriting expenses

 

90,235

 

 

84,721

Underwriting gain (loss)

$

378

 

$

(21,492)

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)

2021

 

2020

Underwriting gain (loss)

$

45,204

 

$

28,592

Net investment income

 

260,413

 

 

147,800

Net realized capital gains (losses)

 

38,902

 

 

(210,588)

Corporate expenses

 

(12,378)

 

 

(9,833)

Interest, fee and bond issue cost amortization expense

 

(15,639)

 

 

(7,583)

Other income (expense)

 

56,593

 

 

7,990

Income (loss) before taxes

$

373,095

 

$

(43,622)

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)

2021

 

2020

United Kingdom gross written premium

$

366,148

 

$

306,708

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