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Segment Reporting
 3 Months Ended
Mar. 31, 2022
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, 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:

 

 

 

 

Reinsurance

Three Months Ended March 31, 2022

 

Three Months Ended March 31, 2021

(Dollars in thousands)

Reinsurance

 

Insurance

 

Total

 

Reinsurance

 

Insurance

 

Total

Gross written premiums

$

2,185,612

 

$

1,000,739

 

$

3,186,351

 

$

2,059,015

 

$

872,418

 

$

2,931,433

Net written premiums

 

2,081,449

 

 

730,564

 

 

2,812,013

 

 

1,912,950

 

 

640,987

 

 

2,553,937

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums earned

$

2,066,254

 

$

725,511

 

$

2,791,765

 

$

1,777,452

 

$

610,413

 

$

2,387,865

Incurred losses and LAE

 

1,324,716

 

 

465,147

 

 

1,789,863

 

 

1,271,906

 

 

439,513

 

 

1,711,419

Commission and brokerage

 

514,243

 

 

90,987

 

 

605,230

 

 

408,724

 

 

80,287

 

 

489,011

Other underwriting expenses

 

50,453

 

 

110,840

 

 

161,293

 

 

51,996

 

 

90,235

 

 

142,231

Underwriting gain (loss)

$

176,842

 

$

58,537

 

$

235,379

 

$

44,826

 

$

378

 

$

45,204

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

242,830

 

 

 

 

 

 

 

 

260,413

Net gains (losses) on investments

 

 

 

 

 

 

 

(153,627)

 

 

 

 

 

 

 

 

38,902

Corporate expenses

 

 

 

 

 

 

 

(14,020)

 

 

 

 

 

 

 

 

(12,378)

Interest, fee and bond issue cost amortization expense

 

 

 

 

 

 

 

(24,078)

 

 

 

 

 

 

 

 

(15,639)

Other income (expense)

 

 

 

 

 

 

 

15,363

 

 

 

 

 

 

 

 

56,593

Income (loss) before taxes

 

 

 

 

 

 

$

301,847

 

 

 

 

 

 

 

$

373,095

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)

2022

 

2021

United Kingdom gross written premium

$

311,581

 

$

366,148

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