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Segment Information
 9 Months Ended
Sep. 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 nine months ended September 30, 2015 and 2014.

 

Quarter Ended September 30, 2015:

(Dollars in thousands)

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

Revenues:

         

Gross premiums written

    $ 52,920      $ 87,349      $ 9,879      $ 150,148   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net premiums written

    $ 49,325      $ 63,302      $ 9,870      $ 122,497   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net premiums earned

    $ 48,916      $ 62,132      $ 13,659      $ 124,707   

Other income (loss)

      102        1,188        (11 )      1,279   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

      49,018        63,320        13,648        125,986   
  

 

 

    

 

 

    

 

 

    

 

 

  

Losses and Expenses:

         

Net losses and loss adjustment expenses

      22,832        48,899        5,960        77,691   

Acquisition costs and other underwriting expenses

      20,686 (3)      25,779 (4)      4,469        50,934   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from segments

    $ 5,500      $ (11,358 )    $ 3,219      $ (2,639 ) 
  

 

 

    

 

 

    

 

 

    

Unallocated Items:

         

Net investment income

            8,852   

Net realized investment losses

            (10,778 ) 

Corporate and other operating expenses

            (3,567 ) 

Interest expense

            (1,595 ) 
        

 

 

  

Income before income taxes

            (9,727 ) 

Income tax benefit

            5,981   
        

 

 

  

Net income

            (3,746 ) 
        

 

 

  

Total assets

    $ 1,005,435      $ 572,807      $ 740,377 (5)    $ 2,318,619   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(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 $258 relating to cessions from Commercial Lines to Reinsurance Operations.
(4) Includes federal excise tax of $310 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 September 30, 2014:

(Dollars in thousands)

    Commercial
Lines (1)		     Reinsurance
Operations (2)		     Total  

Revenues:

       

Gross premiums written

    $ 56,489      $ 10,609      $ 67,098   
  

 

 

    

 

 

    

 

 

  

Net premiums written

    $ 52,674      $ 10,588      $ 63,262   
  

 

 

    

 

 

    

 

 

  

Net premiums earned

    $ 52,462      $ 15,566      $ 68,028   

Other income (loss)

      164        (38 )      126   
  

 

 

    

 

 

    

 

 

  

Total revenues

      52,626        15,528        68,154   

Losses and Expenses:

       

Net losses and loss adjustment expenses

      29,575        7,079        36,654   

Acquisition costs and other underwriting expenses

      21,790 (3)      5,668        27,458   
  

 

 

    

 

 

    

 

 

  

Income (loss) from segments

    $ 1,261      $ 2,781        4,042   
  

 

 

    

 

 

    

Unallocated Items:

       

Net investment income

          6,527   

Net realized investment gains

          1,158   

Corporate and other operating expenses

          (3,481 ) 

Interest expense

          (118 ) 
      

 

 

  

Income before income taxes

          8,128   

Income tax expense

          1,633   
      

 

 

  

Net income

        $ 9,761   
      

 

 

  

Total assets

    $ 1,229,463      $ 650,352 (4)    $ 1,879,815   
  

 

 

    

 

 

    

 

 

  

 

(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 $277 relating to cessions from Commercial Lines to Reinsurance Operations.
(4) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries.

 

Nine Months Ended September 30, 2015:

(Dollars in thousands)

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

Revenues:

         

Gross premiums written

    $ 161,746      $ 249,564      $ 48,222      $ 459,532   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net premiums written

    $ 149,647      $ 196,785      $ 48,174      $ 394,606   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net premiums earned

    $ 149,244      $ 191,472      $ 40,205      $ 380,921   

Other income (loss)

      420        2,065        (77 )      2,408   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

      149,664        193,537        40,128        383,329   
  

 

 

    

 

 

    

 

 

    

 

 

  

Losses and Expenses:

         

Net losses and loss adjustment expenses

      82,474        129,997        14,399        226,870   

Acquisition costs and other underwriting expenses

      61,317 (3)      74,590 (4)      14,211        150,118   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income from segments

    $ 5,873      $ (11,050 )    $ 11,518      $ 6,341   
  

 

 

    

 

 

    

 

 

    

Unallocated Items:

         

Net investment income

            26,234   

Net realized investment losses

            (7,216 ) 

Corporate and other operating expenses

            (19,441 ) 

Interest expense

            (2,635 ) 
        

 

 

  

Income before income taxes

            3,283   

Income tax benefit

            10,882   
        

 

 

  

Net income

            14,165   
        

 

 

  

Total assets

    $ 1,005,435      $ 572,807      $ 740,377 (5)    $ 2,318,619   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(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 $787 relating to cessions from Commercial Lines to Reinsurance Operations.
(4) Includes federal excise tax of $957 relating to cessions from Personal Lines to Reinsurance Operations.
(5) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries.

 

Nine Months Ended September 30, 2014:

(Dollars in thousands)

    Commercial
Lines (1)		     Reinsurance
Operations (2)		     Total  

Revenues:

       

Gross premiums written

    $ 170,037      $ 57,163      $ 227,200   
  

 

 

    

 

 

    

 

 

  

Net premiums written

    $ 156,369        56,126      $ 212,495   
  

 

 

    

 

 

    

 

 

  

Net premiums earned

    $ 158,809      $ 42,780      $ 201,589   

Other income (loss)

      490        (41 )      449   
  

 

 

    

 

 

    

 

 

  

Total revenues

      159,299        42,739        202,038   

Losses and Expenses:

       

Net losses and loss adjustment expenses

      97,047        16,449        113,496   

Acquisition costs and other underwriting expenses

      66,068 (3)      15,046        81,114   
  

 

 

    

 

 

    

 

 

  

Income (loss) from segments

    $ (3,816 )    $ 11,244        7,428   
  

 

 

    

 

 

    

Unallocated Items:

       

Net investment income

          22,488   

Net realized investment gains

          40,226   

Corporate and other operating expenses

          (9,614 ) 

Interest expense

          (628 ) 
      

 

 

  

Income before income taxes

          59,900   

Income tax expense

          (8,108 ) 
      

 

 

  

Net income

        $ 51,792   
      

 

 

  

Total assets

    $ 1,229,463      $ 650,352 (4)    $ 1,879,815   
  

 

 

    

 

 

    

 

 

  

 

(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 $838 relating to cessions from Commercial Lines to Reinsurance Operations.
(4) Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries.