XML 34 R23.htm IDEA: XBRL DOCUMENT
v3.20.2

Segment Information | 9 Months Ended
--- | ---
Sep. 30, 2020
Segment Reporting [Abstract] |
Segment Information |
1 5. | Segment Information
The Company manages its business through four business segments. Commercial Specialty offers specialty property and casualty products designed for product lines such as Small Business Binding Authority, Property Brokerage, and Programs. Specialty Property offers specialty personal lines property and casualty insurance products. Farm, Ranch, & Stable offers specialized property and casualty coverage including Commercial Farm Auto and Excess/Umbrella Coverage for the agriculture industry as well as specialized insurance products for the equine mortality and equine major medical industry. 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 and nine months ended September 30, 2020 and 2019:
Quarter Ended September 30, 2020 (Dollars in thousands) |  | Commercial Specialty |  | (1) | Specialty Property |  | (1) | Farm, Ranch, & Stable |  | (1) | Reinsurance Operations |  | (2) | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross written premiums |  | $ | 74,971 |  |  | $ | 34,730 |  |  | $ | 19,443 |  |  | $ | 14,605 |  |  | $ | 143,749 |
Net written premiums |  | $ | 69,074 |  |  | $ | 29,971 |  |  | $ | 16,961 |  |  | $ | 14,605 |  |  | $ | 130,611 |
Net earned premiums |  | $ | 73,887 |  |  | $ | 31,388 |  |  | $ | 19,978 |  |  | $ | 15,049 |  |  | $ | 140,302 |
Other income |  |  | — |  |  |  | 450 |  |  |  | 35 |  |  |  | 112 |  |  |  | 597 |
Total revenues |  |  | 73,887 |  |  |  | 31,838 |  |  |  | 20,013 |  |  |  | 15,161 |  |  |  | 140,899 |
Losses and Expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net losses and loss adjustment expenses |  |  | 42,879 |  |  |  | 34,430 |  |  |  | 14,649 |  |  |  | 5,190 |  |  |  | 97,148 |
Acquisition costs and other underwriting expenses |  |  | 26,943 |  |  |  | 13,364 |  |  |  | 7,443 |  |  |  | 5,518 |  |  |  | 53,268 |
Income (loss) from segments |  | $ | 4,065 |  |  | $ | (15,956 | ) |  | $ | (2,079 | ) |  | $ | 4,453 |  |  | $ | (9,517 | )
Unallocated Items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 11,746 |
Net realized investment gains |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 7,323 |
Other loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (55 | )
Corporate and other operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (21,196 | )
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,620 | )
Loss on extinguishment of debt |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,060 | )
Loss before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (18,379 | )
Income tax benefit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3,209 |
Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (15,170 | )
Segment assets |  | $ | 752,002 |  |  | $ | 207,831 |  |  | $ | 137,697 |  |  | $ | 269,771 |  |  | $ | 1,367,301 |
Corporate assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 572,456 |
Total assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,939,757 |
(1) | Includes business ceded to the Company’s Reinsurance Operations. This quota share agreement was cancelled effective January 1, 2018.
(2) | External business only, excluding business assumed from affiliates.
Quarter Ended September 30, 2019 (Dollars in thousands) |  | Commercial Specialty |  | (1) | Specialty Property |  | (1) | Farm, Ranch, & Stable |  | (1) | Reinsurance Operations |  | (2) | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross written premiums |  | $ | 73,175 |  |  | $ | 42,611 |  |  | $ | 21,410 |  |  | $ | 19,981 |  |  | $ | 157,177 |
Net written premiums |  | $ | 62,925 |  |  | $ | 37,628 |  |  | $ | 18,294 |  |  | $ | 19,989 |  |  | $ | 138,836 |
Net earned premiums |  | $ | 60,869 |  |  | $ | 34,554 |  |  | $ | 18,377 |  |  | $ | 19,512 |  |  | $ | 133,312 |
Other income (loss) |  |  | — |  |  |  | 465 |  |  |  | 34 |  |  |  | (235 | ) |  |  | 264 |
Total revenues |  |  | 60,869 |  |  |  | 35,019 |  |  |  | 18,411 |  |  |  | 19,277 |  |  |  | 133,576 |
Losses and Expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net losses and loss adjustment expenses |  |  | 27,389 |  |  |  | 25,997 |  |  |  | 10,939 |  |  |  | 9,258 |  |  |  | 73,583 |
Acquisition costs and other underwriting expenses |  |  | 24,820 |  |  |  | 14,571 |  |  |  | 7,776 |  |  |  | 6,199 |  |  |  | 53,366 |
Income (loss) from segments |  | $ | 8,660 |  |  | $ | (5,549 | ) |  | $ | (304 | ) |  | $ | 3,820 |  |  | $ | 6,627 |
Unallocated Items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 11,348 |
Net realized investment loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (2,690 | )
Corporate and other operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,858 | )
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (5,023 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6,404 |
Income tax benefit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 317 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6,721 |
Segment assets |  | $ | 705,260 |  |  | $ | 246,080 |  |  | $ | 136,420 |  |  | $ | 346,137 |  |  | $ | 1,433,897 |
Corporate assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 650,259 |
Total assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 2,084,156 |
(1) | Includes business ceded to the Company’s Reinsurance Operations. This quota share agreement was cancelled effective January 1, 2018.
(2) | External business only, excluding business assumed from affiliates.
Nine Months Ended September 30, 2020 (Dollars in thousands) |  | Commercial Specialty |  | (1) | Specialty Property |  | (1) | Farm, Ranch, & Stable |  | (1) | Reinsurance Operations |  | (2) | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross written premiums |  | $ | 243,099 |  |  | $ | 107,951 |  |  | $ | 64,798 |  |  | $ | 48,174 |  |  | $ | 464,022 |
Net written premiums |  | $ | 219,437 |  |  | $ | 93,053 |  |  | $ | 56,323 |  |  | $ | 48,174 |  |  | $ | 416,987 |
Net earned premiums |  | $ | 211,329 |  |  | $ | 99,147 |  |  | $ | 57,691 |  |  | $ | 58,450 |  |  | $ | 426,617 |
Other income |  |  | — |  |  |  | 1,306 |  |  |  | 107 |  |  |  | 96 |  |  |  | 1,509 |
Total revenues |  |  | 211,329 |  |  |  | 100,453 |  |  |  | 57,798 |  |  |  | 58,546 |  |  |  | 428,126 |
Losses and Expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net losses and loss adjustment expenses |  |  | 109,191 |  |  |  | 65,619 |  |  |  | 37,698 |  |  |  | 29,584 |  |  |  | 242,092 |
Acquisition costs and other underwriting expenses |  |  | 79,452 |  |  |  | 41,357 |  |  |  | 22,687 |  |  |  | 19,762 |  |  |  | 163,258 |
Income (loss) from segments |  | $ | 22,686 |  |  | $ | (6,523 | ) |  | $ | (2,587 | ) |  | $ | 9,200 |  |  | $ | 22,776 |
Unallocated Items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 19,516 |
Net realized investment loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (22,332 | )
Other loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (36 | )
Corporate and other operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (34,037 | )
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (13,197 | )
Loss on extinguishment of debt |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,060 | )
Loss before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (30,370 | )
Income tax benefit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 8,173 |
Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (22,197 | )
Segment assets |  | $ | 752,002 |  |  | $ | 207,831 |  |  | $ | 137,697 |  |  | $ | 269,771 |  |  | $ | 1,367,301 |
Corporate assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 572,456 |
Total assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,939,757 |
(1) | Includes business ceded to the Company’s Reinsurance Operations. This quota share agreement was cancelled effective January 1, 2018.
(2) | External business only, excluding business assumed from affiliates.
Nine Months Ended September 30, 2019 (Dollars in thousands) |  | Commercial Specialty |  | (1) | Specialty Property |  | (1) | Farm, Ranch, & Stable |  | (1) | Reinsurance Operations |  | (2) | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross written premiums |  | $ | 214,467 |  |  | $ | 128,771 |  |  | $ | 65,872 |  |  | $ | 69,589 |  |  | $ | 478,699 |
Net written premiums |  | $ | 185,202 |  |  | $ | 110,668 |  |  | $ | 55,861 |  |  | $ | 69,590 |  |  | $ | 421,321 |
Net earned premiums |  | $ | 173,215 |  |  | $ | 104,740 |  |  | $ | 52,849 |  |  | $ | 52,798 |  |  | $ | 383,602 |
Other income (loss) |  |  | — |  |  |  | 1,406 |  |  |  | 96 |  |  |  | (228 | ) |  |  | 1,274 |
Total revenues |  |  | 173,215 |  |  |  | 106,146 |  |  |  | 52,945 |  |  |  | 52,570 |  |  |  | 384,876 |
Losses and Expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net losses and loss adjustment expenses |  |  | 81,731 |  |  |  | 57,611 |  |  |  | 32,203 |  |  |  | 30,434 |  |  |  | 201,979 |
Acquisition costs and other underwriting expenses |  |  | 70,522 |  |  |  | 44,163 |  |  |  | 22,403 |  |  |  | 16,555 |  |  |  | 153,643 |
Income (loss) from segments |  | $ | 20,962 |  |  | $ | 4,372 |  |  | $ | (1,661 | ) |  | $ | 5,581 |  |  | $ | 29,254 |
Unallocated Items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 32,393 |
Net realized investment gain |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 11,290 |
Corporate and other operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (11,702 | )
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (15,088 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 46,147 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (5,163 | )
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 40,984 |
Segment assets |  | $ | 705,260 |  |  | $ | 246,080 |  |  | $ | 136,420 |  |  | $ | 346,137 |  |  | $ | 1,433,897 |
Corporate assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 650,259 |
Total assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 2,084,156 |
(1) | Includes business ceded to the Company’s Reinsurance Operations. This quota share agreement was cancelled effective January 1, 2018.
(2) | External business only, excluding business assumed from affiliates.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration