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Segment Information
 6 Months Ended
Jun. 30, 2015
Segment Information

14. Segment Information

The acquisition of American Reliable has impacted the way the Company manages and analyzes its operating results. The business acquired from American Reliable is considered to be a separate segment, Personal Lines. The Company now manages its business through three business segments: Commercial Lines, managed in Bala Cynwyd, PA, offers specialty property and casualty products designed for product lines such as Small Business Binding Authority, Property Brokerage, and Programs; Personal Lines, managed in Scottsdale, AZ, offers specialty personal lines and agricultural coverage; and Reinsurance Operations, managed in Bermuda, provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies.

The following are tabulations of business segment information for the quarters and six months ended June 30, 2015 and 2014.

 

Quarter Ended June 30, 2015:

(Dollars in thousands)

    Commercial
Lines (1)		     Personal
Lines (1)		     Reinsurance
Operations (2)		     Total  

Revenues:

         

Gross premiums written

    $ 59,033      $ 89,004      $ 18,478      $ 166,515   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net premiums written

    $ 54,700      $ 72,827      $ 18,478      $ 146,005   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net premiums earned

    $ 49,614      $ 65,918      $ 13,345      $ 128,877   

Other income

      153        411        13        577   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

      49,767        66,329        13,358        129,454   
  

 

 

    

 

 

    

 

 

    

 

 

  

Losses and Expenses:

         

Net losses and loss adjustment expenses

      30,039        45,180        4,341        79,560   

Acquisition costs and other underwriting expenses

      20,008 (3)      26,065 (4)      4,853        50,926   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from segments

    $ (280 )    $ (4,916 )    $ 4,164      $ (1,032 ) 
  

 

 

    

 

 

    

 

 

    

Unallocated Items:

         

Net investment income

            9,141   

Net realized investment gains

            6,532   

Corporate and other operating expenses

            (4,334 ) 

Interest expense

            (535 ) 
        

 

 

  

Income before income taxes

            9,772   

Income tax benefit

            1,345   
        

 

 

  

Net income

            11,117   
        

 

 

  

Total assets

    $ 944,744      $ 554,302      $ 761,412 (5)    $ 2,260,458   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Includes business ceded to the Company’s Reinsurance Operations.
(2) External business only, excluding business assumed from affiliates.
(3) Includes federal excise tax of $261 relating to cessions from Commercial Lines to Reinsurance Operations.
(4) Includes federal excise tax of $330 relating to cessions from Personal Lines to Reinsurance Operations.
(5) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries.

 

Quarter Ended June 30, 2014:

(Dollars in thousands)

    Commercial
Lines (1)		     Reinsurance
Operations (2)		     Total  

Revenues:

       

Gross premiums written

    $ 60,556      $ 22,349      $ 82,905   
  

 

 

    

 

 

    

 

 

  

Net premiums written

    $ 55,039      $ 21,333      $ 76,372   
  

 

 

    

 

 

    

 

 

  

Net premiums earned

    $ 53,034      $ 12,983      $ 66,017   

Other income (loss)

      160        (5 )      155   
  

 

 

    

 

 

    

 

 

  

Total revenues

      53,194        12,978        66,172   

Losses and Expenses:

       

Net losses and loss adjustment expenses

      33,875        4,395        38,270   

Acquisition costs and other underwriting expenses

      22,560 (3)      4,611        27,171   
  

 

 

    

 

 

    

 

 

  

Income (loss) from segments

    $ (3,241 )    $ 3,972        731   
  

 

 

    

 

 

    

Unallocated Items:

       

Net investment income

          7,677   

Net realized investment gains

          39,881   

Corporate and other operating expenses

          (3,172 ) 

Interest expense

          (319 ) 
      

 

 

  

Income before income taxes

          44,798   

Income tax expense

          (11,590 ) 
      

 

 

  

Net income

        $ 33,208   
      

 

 

  

Total assets

    $ 1,316,314      $ 661,373 (4)    $ 1,977,687   
  

 

 

    

 

 

    

 

 

  

 

(1) Includes business ceded to the Company’s Reinsurance Operations.
(2) External business only, excluding business assumed from affiliates.
(3) Includes federal excise tax of $281 relating to cessions from Commercial Lines to Reinsurance Operations.
(4) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries.

 

Six Months Ended June 30, 2015:

(Dollars in thousands)

    Commercial
Lines (1)		     Personal
Lines (1)		     Reinsurance
Operations (2)		     Total  

Revenues:

         

Gross premiums written

    $ 108,826      $ 162,215      $ 38,343      $ 309,384   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net premiums written

    $ 100,322      $ 133,483      $ 38,304      $ 272,109   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net premiums earned

    $ 100,328      $ 129,340      $ 26,546      $ 256,214   

Other income (loss)

      318        877        (66 )      1,129   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

      100,646        130,217        26,480        257,343   
  

 

 

    

 

 

    

 

 

    

 

 

  

Losses and Expenses:

         

Net losses and loss adjustment expenses

      59,642        81,098        8,439        149,179   

Acquisition costs and other underwriting expenses

      40,631 (3)      48,811 (4)      9,742        99,184   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income from segments

    $ 373      $ 308      $ 8,299      $ 8,980   
  

 

 

    

 

 

    

 

 

    

Unallocated Items:

         

Net investment income

            17,382   

Net realized investment gains

            3,562   

Corporate and other operating expenses

            (15,874 ) 

Interest expense

            (1,040 ) 
        

 

 

  

Income before income taxes

            13,010   

Income tax benefit

            4,901   
        

 

 

  

Net income

            17,911   
        

 

 

  

Total assets

    $ 944,744      $ 554,302      $ 761,412 (5)    $ 2,260,458   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Includes business ceded to the Company’s Reinsurance Operations.
(2) External business only, excluding business assumed from affiliates.
(3) Includes federal excise tax of $529 relating to cessions from Commercial Lines to Reinsurance Operations.
(4) Includes federal excise tax of $647 relating to cessions from Personal Lines to Reinsurance Operations.
(5) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries.

 

Six Months Ended June 30, 2014:

(Dollars in thousands)

    Commercial
Lines (1)		     Reinsurance
Operations (2)		     Total  

Revenues:

       

Gross premiums written

    $ 113,548      $ 46,554      $ 160,102   
  

 

 

    

 

 

    

 

 

  

Net premiums written

    $ 103,695      $ 45,538      $ 149,233   
  

 

 

    

 

 

    

 

 

  

Net premiums earned

    $ 106,347      $ 27,214      $ 133,561   

Other income (loss)

      326        (3 )      323   
  

 

 

    

 

 

    

 

 

  

Total revenues

      106,673        27,211        133,884   

Losses and Expenses:

       

Net losses and loss adjustment expenses

      67,472        9,370        76,842   

Acquisition costs and other underwriting expenses

      44,278 (3)      9,378        53,656   
  

 

 

    

 

 

    

 

 

  

Income (loss) from segments

    $ (5,077 )    $ 8,463        3,386   
  

 

 

    

 

 

    

Unallocated Items:

       

Net investment income

          15,961   

Net realized investment gains

          39,068   

Corporate and other operating expenses

          (6,133 ) 

Interest expense

          (510 ) 
      

 

 

  

Income before income taxes

          51,772   

Income tax expense

          (9,741 ) 
      

 

 

  

Net income

        $ 42,031   
      

 

 

  

Total assets

    $ 1,316,314      $ 661,373 (4)    $ 1,977,687   
  

 

 

    

 

 

    

 

 

  

 

(1) Includes business ceded to the Company’s Reinsurance Operations.
(2) External business only, excluding business assumed from affiliates.
(3) Includes federal excise tax of $561 relating to cessions from Commercial Lines to Reinsurance Operations.
(4) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries.