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Segment Reporting | 9 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting We have determined our reportable business segments based on the information used by management in assessing performance and allocating resources to underwriting operations. We have identified two reportable business segments - International and Bermuda. Each of our identified reportable segments has a Chief Executive Officer who is responsible for the overall profitability of their segment and who regularly reports and is directly accountable to the chief operating decision maker: the Chief Executive Officer of the consolidated group. We evaluate reportable segment performance based on their respective underwriting income or loss. Underwriting income or loss is calculated as net premiums earned less losses and loss adjustment expenses, acquisition costs, and other underwriting expenses (net of third party fee income). General and administrative expenses not incurred by the reportable segments are included in corporate and other expenses as part of the reconciliation of net underwriting income or loss to net income or loss attributable to common shareholders. As we do not manage our assets by reportable segment, investment income and assets are not allocated to reportable segments. Our core business is underwriting and our underwriting results are reflected in our reportable segments: (1) International, which is comprised of property, casualty and specialty insurance and reinsurance classes of business originating from the Company’s London, Dublin, and Hamilton Select operations; and (2) Bermuda, which is comprised of property, casualty and specialty insurance and reinsurance classes of business originating from Hamilton Re, Bermuda and Hamilton Re US and subsidiaries. We consider many factors, including the nature of each segment’s products, client types, production sources, distribution methods and the regulatory environment, in determining the aggregated operating segments. Corporate includes net realized and unrealized gains (losses) on investments, net investment income (loss), other income (loss) not incurred by the reportable segments, net foreign exchange gains (losses), general and administrative expenses not incurred by the reportable segments, amortization of intangible assets, interest expense, and income tax expense.
(Expressed in thousands of U.S. Dollars) |  |  |  |  |  |  |
Three Months Ended September 30, 2023 | International |  | Bermuda |  | Corporate |  | Total
Gross premiums written | $ | 307,140 |  |  | $ | 166,983 |  |  | $ | — |  |  | $ | 474,123 |
Net premiums written | $ | 234,621 |  |  | $ | 148,945 |  |  | $ | — |  |  | $ | 383,566 |
Net premiums earned | $ | 178,632 |  |  | $ | 158,404 |  |  | $ | — |  |  | $ | 337,036 |
Third party fee income | 2,115 |  |  | 186 |  |  | — |  |  | 2,301 |
Losses and loss adjustment expenses | 97,820 |  |  | 93,757 |  |  | — |  |  | 191,577 |
Acquisition costs | 47,236 |  |  | 31,301 |  |  | — |  |  | 78,537 |
Other underwriting expenses | 31,634 |  |  | 12,723 |  |  | — |  |  | 44,357 |
Underwriting income (loss) | $ | 4,057 |  |  | $ | 20,809 |  |  | $ | — |  |  | $ | 24,866 |
Net realized and unrealized gains (losses) on investments |  |  |  |  | 47,343 |  |  | 47,343 |
Net investment income (loss) |  |  |  |  | 8,069 |  |  | 8,069 |
Other income (loss), excluding third party fee income |  |  |  |  | 85 |  |  | 85 |
Net foreign exchange gains (losses) |  |  |  |  | 1,432 |  |  | 1,432 |
Corporate expenses |  |  |  |  | (18,678) |  |  | (18,678) |
Amortization of intangible assets |  |  |  |  | (2,794) |  |  | (2,794) |
Interest expense |  |  |  |  | (5,288) |  |  | (5,288) |
Net income (loss) before tax |  |  |  |  |  |  | 55,035 |
Income tax expense |  |  |  |  | (2,387) |  |  | (2,387) |
Net income (loss) |  |  |  |  |  |  | 52,648 |
Net income (loss) attributable to non-controlling interest |  |  |  |  | 9,065 |  |  | 9,065 |
Net income (loss) attributable to common shareholders |  |  |  |  |  |  | $ | 43,583 |
Key Ratios |  |  |  |  |  |  |
Attritional loss ratio - current year | 54.6 | % |  | 55.1 | % |  |  |  | 54.8 | %
Attritional loss ratio - prior year development | (5.3) | % |  | 5.7 | % |  |  |  | (0.1) | %
Catastrophe loss ratio - current year | 5.1 | % |  | 2.6 | % |  |  |  | 3.9 | %
Catastrophe loss ratio - prior year development | 0.4 | % |  | (4.2) | % |  |  |  | (1.8) | %
Loss and loss adjustment expense ratio | 54.8 | % |  | 59.2 | % |  |  |  | 56.8 | %
Acquisition cost ratio | 26.4 | % |  | 19.8 | % |  |  |  | 23.3 | %
Other underwriting expense ratio | 16.5 | % |  | 7.9 | % |  |  |  | 12.5 | %
Combined ratio | 97.7 | % |  | 86.9 | % |  |  |  | 92.6 | %
(Expressed in thousands of U.S. Dollars) |  |  |  |  |  |  |
Three Months Ended September 30, 2022 | International |  | Bermuda |  | Corporate |  | Total
Gross premiums written | $ | 269,228 |  |  | $ | 131,583 |  |  | $ | — |  |  | $ | 400,811 |
Net premiums written | $ | 184,319 |  |  | $ | 116,492 |  |  | $ | — |  |  | $ | 300,811 |
Net premiums earned | $ | 156,307 |  |  | $ | 138,636 |  |  | $ | — |  |  | $ | 294,943 |
Third party fee income | 3,138 |  |  | 106 |  |  | — |  |  | 3,244 |
Losses and loss adjustment expenses | 92,061 |  |  | 165,902 |  |  | — |  |  | 257,963 |
Acquisition costs | 41,936 |  |  | 23,799 |  |  | — |  |  | 65,735 |
Other underwriting expenses | 26,811 |  |  | 13,753 |  |  | — |  |  | 40,564 |
Underwriting income (loss) | $ | (1,363) |  |  | $ | (64,712) |  |  | $ | — |  |  | $ | (66,075) |
Net realized and unrealized gains (losses) on investments |  |  |  |  | (67,380) |  |  | (67,380) |
Net investment income (loss) |  |  |  |  | (5,255) |  |  | (5,255) |
Other income (loss), excluding third party fee income |  |  |  |  | (517) |  |  | (517) |
Net foreign exchange gains (losses) |  |  |  |  | 1,906 |  |  | 1,906 |
Corporate expenses |  |  |  |  | (5,780) |  |  | (5,780) |
Amortization of intangible assets |  |  |  |  | (3,178) |  |  | (3,178) |
Interest expense |  |  |  |  | (4,102) |  |  | (4,102) |
Net income (loss) before tax |  |  |  |  |  |  | (150,381) |
Income tax expense |  |  |  |  | (1,054) |  |  | (1,054) |
Net income (loss) |  |  |  |  |  |  | (151,435) |
Net income (loss) attributable to non-controlling interest |  |  |  |  | (15,318) |  |  | (15,318) |
Net income (loss) attributable to common shareholders |  |  |  |  |  |  | $ | (136,117) |
Key Ratios |  |  |  |  |  |  |
Attritional loss ratio - current year | 46.7 | % |  | 53.0 | % |  |  |  | 49.6 | %
Attritional loss ratio - prior year development | (0.1) | % |  | 21.7 | % |  |  |  | 10.2 | %
Catastrophe loss ratio - current year | 11.9 | % |  | 46.8 | % |  |  |  | 28.3 | %
Catastrophe loss ratio - prior year development | 0.4 | % |  | (1.8) | % |  |  |  | (0.6) | %
Loss and loss adjustment expense ratio | 58.9 | % |  | 119.7 | % |  |  |  | 87.5 | %
Acquisition cost ratio | 26.8 | % |  | 17.2 | % |  |  |  | 22.3 | %
Other underwriting expense ratio | 15.2 | % |  | 9.8 | % |  |  |  | 12.7 | %
Combined ratio | 100.9 | % |  | 146.7 | % |  |  |  | 122.5 | %
(Expressed in thousands of U.S. Dollars) |  |  |  |  |  |  |
Nine Months Ended September 30, 2023 | International |  | Bermuda |  | Corporate |  | Total
Gross premiums written | $ | 832,049 |  |  | $ | 685,198 |  |  | $ | — |  |  | $ | 1,517,247 |
Net premiums written | $ | 553,687 |  |  | $ | 563,085 |  |  | $ | — |  |  | $ | 1,116,772 |
Net premiums earned | $ | 504,784 |  |  | $ | 447,614 |  |  | $ | — |  |  | $ | 952,398 |
Third party fee income | 7,417 |  |  | 336 |  |  | — |  |  | 7,753 |
Losses and loss adjustment expenses | 255,787 |  |  | 263,767 |  |  | — |  |  | 519,554 |
Acquisition costs | 131,688 |  |  | 88,844 |  |  | — |  |  | 220,532 |
Other underwriting expenses | 89,635 |  |  | 36,607 |  |  | — |  |  | 126,242 |
Underwriting income (loss) | $ | 35,091 |  |  | $ | 58,732 |  |  | $ | — |  |  | $ | 93,823 |
Net realized and unrealized gains (losses) on investments |  |  |  |  | 101,881 |  |  | 101,881 |
Net investment income (loss) |  |  |  |  | 17,719 |  |  | 17,719 |
Other income (loss), excluding third party fee income |  |  |  |  | 85 |  |  | 85 |
Net foreign exchange gains (losses) |  |  |  |  | (3,953) |  |  | (3,953) |
Corporate expenses |  |  |  |  | (31,833) |  |  | (31,833) |
Amortization of intangible assets |  |  |  |  | (7,869) |  |  | (7,869) |
Interest expense |  |  |  |  | (16,007) |  |  | (16,007) |
Net income (loss) before tax |  |  |  |  |  |  | 153,846 |
Income tax expense |  |  |  |  | (6,908) |  |  | (6,908) |
Net income (loss) |  |  |  |  |  |  | 146,938 |
Net income (loss) attributable to non-controlling interest |  |  |  |  | 15,076 |  |  | 15,076 |
Net income (loss) attributable to common shareholders |  |  |  |  |  |  | $ | 131,862 |
Key Ratios |  |  |  |  |  |  |
Attritional loss ratio - current year | 52.6 | % |  | 50.8 | % |  |  |  | 51.8 | %
Attritional loss ratio - prior year development | (4.3) | % |  | 4.0 | % |  |  |  | (0.4) | %
Catastrophe loss ratio - current year | 2.2 | % |  | 5.4 | % |  |  |  | 3.7 | %
Catastrophe loss ratio - prior year development | 0.2 | % |  | (1.3) | % |  |  |  | (0.5) | %
Loss and loss adjustment expense ratio | 50.7 | % |  | 58.9 | % |  |  |  | 54.6 | %
Acquisition cost ratio | 26.1 | % |  | 19.8 | % |  |  |  | 23.2 | %
Other underwriting expense ratio | 16.3 | % |  | 8.1 | % |  |  |  | 12.4 | %
Combined ratio | 93.1 | % |  | 86.8 | % |  |  |  | 90.2 | %
(Expressed in thousands of U.S. Dollars) |  |  |  |  |  |  |
Nine Months Ended September 30, 2022 | International |  | Bermuda |  | Corporate |  | Total
Gross premiums written | $ | 698,968 |  |  | $ | 606,453 |  |  | $ | — |  |  | $ | 1,305,421 |
Net premiums written | $ | 446,577 |  |  | $ | 491,911 |  |  | $ | — |  |  | $ | 938,488 |
Net premiums earned | $ | 450,202 |  |  | $ | 381,265 |  |  | $ | — |  |  | $ | 831,467 |
Third party fee income | 9,022 |  |  | 355 |  |  | — |  |  | 9,377 |
Losses and loss adjustment expenses | 249,840 |  |  | 347,174 |  |  | — |  |  | 597,014 |
Acquisition costs | 122,593 |  |  | 72,202 |  |  | — |  |  | 194,795 |
Other underwriting expenses | 82,256 |  |  | 37,100 |  |  | — |  |  | 119,356 |
Underwriting income (loss) | $ | 4,535 |  |  | $ | (74,856) |  |  | $ | — |  |  | $ | (70,321) |
Net realized and unrealized gains (losses) on investments |  |  |  |  | 146,640 |  |  | 146,640 |
Net investment income (loss) |  |  |  |  | (22,185) |  |  | (22,185) |
Other income (loss), excluding third party fee income |  |  |  |  | (260) |  |  | (260) |
Net foreign exchange gains (losses) |  |  |  |  | 15,382 |  |  | 15,382 |
Corporate expenses |  |  |  |  | (15,934) |  |  | (15,934) |
Amortization of intangible assets |  |  |  |  | (9,874) |  |  | (9,874) |
Interest expense |  |  |  |  | (11,255) |  |  | (11,255) |
Net income (loss) before tax |  |  |  |  |  |  | 32,193 |
Income tax expense |  |  |  |  | (3,103) |  |  | (3,103) |
Net income (loss) |  |  |  |  |  |  | 29,090 |
Net income (loss) attributable to non-controlling interest |  |  |  |  | 68,069 |  |  | 68,069 |
Net income (loss) attributable to common shareholders |  |  |  |  |  |  | $ | (38,979) |
Key Ratios |  |  |  |  |  |  |
Attritional loss ratio - current year | 47.4 | % |  | 52.1 | % |  |  |  | 49.5 | %
Attritional loss ratio - prior year development | (3.5) | % |  | 7.2 | % |  |  |  | 1.4 | %
Catastrophe loss ratio - current year | 10.5 | % |  | 37.0 | % |  |  |  | 22.7 | %
Catastrophe loss ratio - prior year development | 1.1 | % |  | (5.2) | % |  |  |  | (1.8) | %
Loss and loss adjustment expense ratio | 55.5 | % |  | 91.1 | % |  |  |  | 71.8 | %
Acquisition cost ratio | 27.2 | % |  | 18.9 | % |  |  |  | 23.4 | %
Other underwriting expense ratio | 16.3 | % |  | 9.6 | % |  |  |  | 13.3 | %
Combined ratio | 99.0 | % |  | 119.6 | % |  |  |  | 108.5 | %
The following table presents gross premiums written by the geographical location of the Company's subsidiaries for the three and nine months ended September 30, 2023 and 2022:
| Three Months Ended |  | Nine Months Ended |  |  |  |  |  |
| September 30, |  | September 30, |  |  |  |  |  |
(Expressed in thousands of U.S. Dollars) | 2023 |  | 2022 |  | 2023 |  | 2022 |  |  |  |  |  |
International |  |  |  |  |  |  |  |  |  |  |  |  |
Lloyd's of London | $ | 189,155 |  |  | $ | 145,940 |  |  | $ | 507,326 |  |  | $ | 417,286 |  |  |  |  |  |  |
Ireland | 96,272 |  |  | 110,263 |  |  | 271,002 |  |  | 255,539 |  |  |  |  |  |  |
U.S. | 21,713 |  |  | 13,025 |  |  | 53,721 |  |  | 26,143 |  |  |  |  |  |  |
Total International | 307,140 |  |  | 269,228 |  |  | 832,049 |  |  | 698,968 |  |  |  |  |  |  |
Bermuda | 166,983 |  |  | 131,583 |  |  | 685,198 |  |  | 606,453 |  |  |  |  |  |  |
Total | $ | 474,123 |  |  | $ | 400,811 |  |  | $ | 1,517,247 |  |  | $ | 1,305,421 |  |  |  |  |  |  |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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