12.

Segment Information

The Company manages its business through three business segments. Commercial Lines offers specialty property and casualty products designed for product lines such as Small Business Binding Authority, Property Brokerage, and Programs. Personal Lines offers specialty personal lines and agricultural coverage. Reinsurance Operations provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies.

The following are tabulations of business segment information for the quarters ended March 31, 2018 and 2017.


Quarter Ended March 31, 2018: (Dollars in thousands)	Commercial Lines ⁽¹⁾			Personal Lines ⁽¹⁾			Reinsurance Operations ⁽²⁾			Total
Revenues:
Gross premiums written	$	53,773		$	60,165	⁽⁶⁾	$	10,309		$	124,247

Net premiums written	$	48,306		$	49,255		$	10,309		$	107,870

Net premiums earned	$	47,362		$	50,612		$	10,028		$	108,002
Other income		—			503			51			554

Total revenues		47,362			51,115			10,079			108,556

Losses and Expenses:
Net losses and loss adjustment expenses		25,029			27,621			3,422			56,072
Acquisition costs and other underwriting expenses		19,205	⁽³⁾		22,179	⁽⁴⁾		3,619			45,003

Income from segments	$	3,128		$	1,315		$	3,038		$	7,481

Unallocated Items:
Net investment income											11,404
Net realized investment loss											(316	)
Corporate and other operating expenses											(9,260	)
Interest expense											(4,861	)

Income before income taxes											4,448
Income tax benefit											1,253

Net income										$	5,701

Total assets	$	893,115		$	494,908		$	575,691	⁽⁵⁾	$	1,963,714

(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 $174 relating to cessions from Commercial Lines to Reinsurance Operations.

(4)	Includes federal excise tax of $206 relating to cessions from Personal Lines to Reinsurance Operations.

(5)	Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries.

(6)	Includes ($867) of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement.


Quarter Ended March 31, 2017: (Dollars in thousands)	Commercial Lines ⁽¹⁾			Personal Lines ⁽¹⁾			Reinsurance Operations ⁽²⁾			Total
Revenues:
Gross premiums written	$	45,911		$	62,017	⁽⁶⁾	$	15,823		$	123,751

Net premiums written	$	41,115		$	54,583		$	15,808		$	111,506

Net premiums earned	$	44,992		$	58,663		$	9,471		$	113,126
Other income		—			1,281			87			1,368

Total revenues		44,992			59,944			9,558			114,494

Losses and Expenses:
Net losses and loss adjustment expenses		20,424			38,715			3,422			62,561
Acquisition costs and other underwriting expenses		19,019	⁽³⁾		24,534	⁽⁴⁾		2,998			46,551

Income (loss) from segments	$	5,549		$	(3,305	)	$	3,138		$	5,382

Unallocated Items:
Net investment income											8,644
Net realized investment gain											775
Corporate and other operating expenses											(3,054	)
Interest expense											(2,467	)

Income before income taxes											9,280
Income tax benefit											3,002

Net income											12,282

Total assets	$	877,798		$	479,640		$	714,947	⁽⁵⁾	$	2,072,385

(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 $120 relating to cessions from Commercial Lines to Reinsurance Operations.

(4)	Includes federal excise tax of $293 relating to cessions from Personal Lines to Reinsurance Operations.

(5)	Comprised of Global Indemnity Reinsurance’s total assets less its investment in subsidiaries.

(6)	Includes $1,051 of business written by American Reliable that is ceded to insurance companies owned by Assurant under a 100% quota share reinsurance agreement.