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Segment Reporting
 9 Months Ended
Sep. 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., Bermuda, Canada and Europe through its offices in the U.S., Canada, United Kingdom, Ireland and a branch in 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

 

Nine Months Ended

Reinsurance

September 30,

 

September 30,

(Dollars in thousands)

2021

 

2020

 

2021

 

2020

Gross written premiums

$

2,488,344

 

$

2,086,961

 

$

6,695,594

 

$

5,403,080

Net written premiums

 

2,292,957

 

 

1,936,851

 

 

6,265,825

 

 

4,974,034

 

 

 

 

 

 

 

 

 

 

 

 

Premiums earned

$

1,976,454

 

$

1,669,257

 

$

5,674,707

 

$

4,656,733

Incurred losses and LAE

 

1,766,197

 

 

1,335,048

 

 

4,206,243

 

 

3,361,367

Commission and brokerage

 

471,079

 

 

373,251

 

 

1,353,062

 

 

1,130,946

Other underwriting expenses

 

45,347

 

 

51,333

 

 

144,408

 

 

135,170

Underwriting gain (loss)

$

(306,170)

 

$

(90,375)

 

$

(29,006)

 

$

29,250

 

Three Months Ended

 

Nine Months Ended

Insurance

September 30,

 

September 30,

(Dollars in thousands)

2021

 

2020

 

2021

 

2020

Gross written premiums

$

1,009,264

 

$

704,643

 

$

2,923,587

 

$

2,328,733

Net written premiums

 

732,832

 

 

511,829

 

 

2,123,311

 

 

1,693,603

 

 

 

 

 

 

 

 

 

 

 

 

Premiums earned

$

679,949

 

$

536,554

 

$

1,927,933

 

$

1,628,297

Incurred losses and LAE

 

508,103

 

 

401,162

 

 

1,365,619

 

 

1,212,699

Commission and brokerage

 

93,256

 

 

72,081

 

 

258,033

 

 

229,224

Other underwriting expenses

 

95,802

 

 

87,542

 

 

279,817

 

 

250,695

Underwriting gain (loss)

$

(17,213)

 

$

(24,231)

 

$

24,465

 

$

(64,321)

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

 

Nine Months Ended

 

September 30,

 

September 30,

(Dollars in thousands)

2021

 

2020

 

2021

 

2020

Underwriting gain (loss)

$

(323,383)

 

$

(114,606)

 

$

(4,541)

 

$

(35,071)

Net investment income

 

292,759

 

 

234,233

 

 

960,267

 

 

420,116

Net realized capital gains (losses)

 

(4,222)

 

 

110,203

 

 

138,789

 

 

84,263

Corporate expenses

 

(17,817)

 

 

(10,618)

 

 

(46,363)

 

 

(29,184)

Interest, fee and bond issue cost amortization expense

 

(15,539)

 

 

(6,641)

 

 

(46,785)

 

 

(21,477)

Other income (expense)

 

(19,517)

 

 

59,937

 

 

44,190

 

 

47,306

Income (loss) before taxes

$

(87,719)

 

$

272,508

 

$

1,045,557

 

$

465,953

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

 

Nine Months Ended

 

September 30,

 

September 30,

(Dollars in thousands)

2021

 

2020

 

2021

 

2020

United Kingdom gross written premium

$

281,645

 

$

314,502

 

$

897,107

 

$

857,310

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