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Segment Reporting
 6 Months Ended
Jun. 30, 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, the United Kingdom and Switzerland. 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 branches in Switzerland and the Netherlands.

 

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. The Company measures its 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)

2021

 

2020

 

2021

 

2020

Gross written premiums

$

2,148,235

 

$

1,538,348

 

$

4,207,250

 

$

3,316,119

Net written premiums

 

2,059,919

 

 

1,424,089

 

 

3,972,868

 

 

3,037,183

 

 

 

 

 

 

 

 

 

 

 

 

Premiums earned

$

1,920,801

 

$

1,502,256

 

$

3,698,253

 

$

2,987,476

Incurred losses and LAE

 

1,168,139

 

 

1,005,677

 

 

2,440,045

 

 

2,026,319

Commission and brokerage

 

473,258

 

 

387,339

 

 

881,982

 

 

757,695

Other underwriting expenses

 

47,065

 

 

39,698

 

 

99,061

 

 

83,837

Underwriting gain (loss)

$

232,339

 

$

69,542

 

$

277,165

 

$

119,625

 

Three Months Ended

 

Six Months Ended

Insurance

June 30,

 

June 30,

(Dollars in thousands)

2021

 

2020

 

2021

 

2020

Gross written premiums

$

1,041,905

 

$

830,990

 

$

1,914,323

 

$

1,624,090

Net written premiums

 

749,492

 

 

593,389

 

 

1,390,479

 

 

1,181,774

 

 

 

 

 

 

 

 

 

 

 

 

Premiums earned

$

637,571

 

$

540,149

 

$

1,247,984

 

$

1,091,743

Incurred losses and LAE

 

418,002

 

 

401,339

 

 

857,515

 

 

811,537

Commission and brokerage

 

84,490

 

 

78,977

 

 

164,777

 

 

157,143

Other underwriting expenses

 

93,779

 

 

78,432

 

 

184,014

 

 

163,153

Underwriting gain (loss)

$

41,300

 

$

(18,599)

 

$

41,678

 

$

(40,090)

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)

2021

 

2020

 

2021

 

2020

Underwriting gain (loss)

$

273,639

 

$

50,943

 

$

318,843

 

$

79,535

Net investment income

 

407,095

 

 

38,083

 

 

667,508

 

 

185,883

Net realized capital gains (losses)

 

104,109

 

 

184,648

 

 

143,011

 

 

(25,940)

Corporate expenses

 

(16,168)

 

 

(8,733)

 

 

(28,546)

 

 

(18,566)

Interest, fee and bond issue cost amortization expense

 

(15,607)

 

 

(7,253)

 

 

(31,246)

 

 

(14,836)

Other income (expense)

 

7,114

 

 

(20,621)

 

 

63,707

 

 

(12,631)

Income (loss) before taxes

$

760,181

 

$

237,067

 

$

1,133,276

 

$

193,445

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)

2021

 

2020

 

2021

 

2020

United Kingdom gross written premium

$

249,314

 

$

236,100

 

$

615,462

 

$

542,808

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