XML 34 R23.htm IDEA: XBRL DOCUMENT v3.20.2
Segment Information
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Information

15.

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.