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Segment Reporting
 12 Months Ended
Dec. 31, 2021
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, 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, Europe and South America through its offices in the U.S., Canada, Chile, 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:

 

Year Ended December 31, 2021

(Dollars in thousands)

Reinsurance

 

Insurance

 

Total

Gross written premiums

$

9,067,292

 

$

3,982,464

 

$

13,049,756

Net written premiums

 

8,535,618

 

 

2,909,886

 

 

11,445,505

 

 

 

 

 

 

 

 

 

Premiums earned

$

7,757,483

 

$

2,648,957

 

$

10,406,441

Incurred losses and LAE

 

5,556,444

 

 

1,834,809

 

 

7,391,253

Commission and brokerage

 

1,854,466

 

 

354,300

 

 

2,208,766

Other underwriting expenses

 

199,148

 

 

383,499

 

 

582,647

Underwriting gain (loss)

$

147,426

 

$

76,349

 

$

223,775

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

1,164,892

Net realized capital gains (losses)

 

 

 

 

 

 

 

257,943

Corporate expenses

 

 

 

 

 

 

 

(67,827)

Interest, fee and bond issue cost amortization expense

 

 

 

 

 

 

 

(70,149)

Other income (expense)

 

 

 

 

 

 

 

36,987

Income (loss) before taxes

 

 

 

 

 

 

$

1,545,621

 

Year Ended December 31, 2020

(Dollars in thousands)

Reinsurance

 

Insurance

 

Total

Gross written premiums

$

7,281,716

 

$

3,200,645

 

$

10,482,361

Net written premiums

 

6,767,579

 

 

2,349,404

 

 

9,116,983

 

 

 

 

 

 

 

 

 

Premiums earned

$

6,466,106

 

$

2,215,407

 

$

8,681,513

Incurred losses and LAE

 

4,933,411

 

 

1,617,426

 

 

6,550,837

Commission and brokerage

 

1,552,371

 

 

320,879

 

 

1,873,250

Other underwriting expenses

 

175,734

 

 

335,503

 

 

511,237

Underwriting gain (loss)

$

(195,410)

 

$

(58,401)

 

$

(253,811)

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

642,465

Net realized capital gains (losses)

 

 

 

 

 

 

 

267,649

Corporate expenses

 

 

 

 

 

 

 

(41,118)

Interest, fee and bond issue cost amortization expense

 

 

 

 

 

 

 

(36,323)

Other income (expense)

 

 

 

 

 

 

 

6,487

Income (loss) before taxes

 

 

 

 

 

 

$

585,349

 

Year Ended December 31, 2019

(Dollars in thousands)

Reinsurance

 

Insurance

 

Total

Gross written premiums

$

6,355,889

 

$

2,777,475

 

$

9,133,364

Net written premiums

 

5,732,272

 

 

2,092,152

 

 

7,824,424

 

 

 

 

 

 

 

 

 

Premiums earned

$

5,491,296

 

$

1,912,390

 

$

7,403,686

Incurred losses and LAE

 

3,675,178

 

 

1,247,720

 

 

4,922,898

Commission and brokerage

 

1,400,247

 

 

303,479

 

 

1,703,726

Other underwriting expenses

 

160,834

 

 

280,065

 

 

440,899

Underwriting gain (loss)

$

255,037

 

$

81,126

 

$

336,163

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

647,139

Net realized capital gains (losses)

 

 

 

 

 

 

 

185,004

Corporate expenses

 

 

 

 

 

 

 

(32,966)

Interest, fee and bond issue cost amortization expense

 

 

 

 

 

 

 

(31,693)

Other income (expense)

 

 

 

 

 

 

 

(4,660)

Income (loss) before taxes

 

 

 

 

 

 

$

1,098,987

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)

2021

 

2020

 

2019

United Kingdom gross written premium

$

1,245,909

 

$

1,116,363

 

$

964,358

Approximately 20.5%, 20.1% and 23.1% of the Company’s gross written premiums in 2021, 2020 and 2019, respectively, were sourced through the Company’s largest intermediary.