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Segment Information | 12 Months Ended
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Dec. 31, 2022
Segment Reporting [Abstract] |
Segment Information | 23. Segment Information During the fourth quarter of 2022, the Company decided to restructure its insurance operations in an effort to strengthen its market presence and enhance its focus on GBLI’s core Wholesale Commercial and InsurTech products. As a result, the Company will be exiting its four brokerage divisions: Professional Liability, Excess Casualty, Environmental, and Middle Market Property. The Company will cease writing new business and existing renewals will be placed in run-off for these four divisions. On August 8, 2022, the Company sold the renewal rights related to its Farm, Ranch & Stable business for policies written on or after August 8, 2022 to Everett Cash Mutual Insurance Company. During the 2nd quarter of 2022, the Company decided that Farm, Ranch & Stable would not be a core business and a decision was made to not allocate additional resources to this segment. Previously, on October 26, 2021, the Company sold the renewal rights related to its manufactured and dwelling homes business which were part of the Specialty Property segment. In 2021, the Company decided to cease writing certain Property Brokerage business which was part of the Commercial Specialty segment, as well as exit certain property and catastrophe lines within the Reinsurance Operations segment. In the fourth quarter of 2022, the Company also decided it will reduce writings within its Reinsurance Operations segment. Based on the decisions to exit or downsize these lines of business, the Company changed the way it manages and analyzes its operating results. The chief operating decision makers decided they will be reviewing the specific results of the Exited Lines in a separate segment. The chief operating decision makers also determined that the small amount of specialty property business that remained from the Specialty Property segment would be included as a product offering in the Commercial Specialty segment for purpose of reviewing results and allocating resources. Several smaller reinsurance treaties have also been reclassified from Reinsurance to Commercial Specialty. The Reinsurance Operations segment writes casualty treaties as well as individual excess policies. Accordingly, the Company has three reportable segments: Commercial Specialty, Reinsurance Operations, and Exited Lines. Management believes these segments allow users of the Company’s financial statements to better understand the Company's performance, better assess prospects for future net cash flows, and make more informed judgments about the Company as a whole. The segment results for the years ended December 31, 2021 and 2020 have been revised to reflect these changes. All three segments follow the same accounting policies used for the Company’s consolidated financial statements. For further disclosure regarding the Company’s accounting policies, please see Note 5. The Company manages its business through two ongoing business segments. Commercial Specialty offers specialty property and casualty products designed for GBLI's Wholesale Commercial and InsurTech product offerings. Reinsurance Operations provides reinsurance and insurance solutions through brokers and primary writers including insurance and reinsurance companies. The company also has an Exited Lines segment that contains lines of business that are no longer being written or are in runoff. The following are tabulations of business segment information for the years ended December 31, 2022, 2021, and 2020. Corporate information is included to reconcile segment data to the consolidated financial statements.
2022: (Dollars in thousands) |  | Commercial Specialty |  |  |  | Reinsurance Operations |  | (1) |  | Exited Lines |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross written premiums |  | $ | 401,025 |  |  |  | $ | 158,711 |  |  |  | $ | 167,867 |  |  | $ | 727,603 |
Net written premiums |  | $ | 383,682 |  |  |  | $ | 158,711 |  |  |  | $ | 48,938 |  |  | $ | 591,331 |
Net earned premiums |  | $ | 377,953 |  |  |  | $ | 141,287 |  |  |  | $ | 83,231 |  |  | $ | 602,471 |
Other income (loss) |  |  | 1,029 |  |  |  |  | (82 | ) |  |  |  | 515 |  |  |  | 1,462 |
Total revenues |  |  | 378,982 |  |  |  |  | 141,205 |  |  |  |  | 83,746 |  |  |  | 603,933 |
Losses and Expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net losses and loss adjustment expenses |  |  | 225,389 |  |  |  |  | 85,385 |  |  |  |  | 48,454 |  |  |  | 359,228 |
Acquisition costs and other underwriting expenses |  |  | 141,471 |  |  |  |  | 51,721 |  |  |  |  | 43,189 |  |  |  | 236,381 |
Income (loss) from segments |  | $ | 12,122 |  |  |  | $ | 4,099 |  |  |  | $ | (7,897 | ) |  |  | 8,324 |
Unallocated Items: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  |  |  |  |  |  |  |  |  |  |  |  |  | 27,627 |
Net realized investment losses |  |  |  |  |  |  |  |  |  |  |  |  |  | (32,929 | )
Other income |  |  |  |  |  |  |  |  |  |  |  |  |  | 29,903 |
Corporate and other operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  | (24,421 | )
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,004 | )
Loss on extinguishment of debt |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,529 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,971 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  | (2,821 | )
Net loss |  |  |  |  |  |  |  |  |  |  |  |  | $ | (850 | )
Segment assets |  | $ | 980,884 |  |  |  | $ | 376,405 |  |  |  | $ | 277,031 |  |  | $ | 1,634,320 |
Corporate assets |  |  |  |  |  |  |  |  |  |  |  |  |  | 166,455 |
Total assets |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,800,775 |
(1) External business only, excluding business assumed from affiliates.
2021: (Dollars in thousands) |  | Commercial Specialty |  |  |  | Reinsurance Operations |  | (1) |  |  | Exited Lines |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross written premiums |  | $ | 373,552 |  |  |  | $ | 103,690 |  |  |  |  | $ | 204,880 |  |  | $ | 682,122 |
Net written premiums |  | $ | 353,105 |  |  |  | $ | 103,690 |  |  |  |  | $ | 123,273 |  |  | $ | 580,068 |
Net earned premiums |  | $ | 331,503 |  |  |  | $ | 76,663 |  |  |  |  | $ | 187,444 |  |  | $ | 595,610 |
Other income (loss) |  |  | 1,028 |  |  |  |  | (95 | ) |  |  |  |  | 882 |  |  |  | 1,815 |
Total revenues |  |  | 332,531 |  |  |  |  | 76,568 |  |  |  |  |  | 188,326 |  |  |  | 597,425 |
Losses and Expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net losses and loss adjustment expenses |  |  | 202,176 |  |  |  |  | 48,064 |  |  |  |  |  | 134,724 |  |  |  | 384,964 |
Acquisition costs and other underwriting expenses |  |  | 120,877 |  |  |  |  | 26,698 |  |  |  |  |  | 75,266 |  |  |  | 222,841 |
Income (loss) from segments |  | $ | 9,478 |  |  |  | $ | 1,806 |  |  |  |  | $ | (21,664 | ) |  |  | (10,380 | )
Unallocated Items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 37,020 |
Net realized investment gains |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 15,887 |
Other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 27,936 |
Corporate and other operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (27,179 | )
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (10,481 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 32,803 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,449 | )
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 29,354 |
Segment assets |  | $ | 915,428 |  |  |  | $ | 247,366 |  |  |  |  | $ | 464,936 |  |  | $ | 1,627,730 |
Corporate assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 385,079 |
Total assets |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 2,012,809 |
(1) External business only, excluding business assumed from affiliates.
2020: (Dollars in thousands) |  | Commercial Specialty |  |  |  | Reinsurance Operations |  | (1) |  |  | Exited Lines |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross written premiums |  | $ | 310,354 |  |  |  | $ | 55,616 |  |  |  |  | $ | 240,633 |  |  | $ | 606,603 |
Net written premiums |  | $ | 288,745 |  |  |  | $ | 55,616 |  |  |  |  | $ | 203,806 |  |  | $ | 548,167 |
Net earned premiums |  | $ | 277,892 |  |  |  | $ | 46,105 |  |  |  |  | $ | 243,702 |  |  | $ | 567,699 |
Other income |  |  | 888 |  |  |  |  | 191 |  |  |  |  |  | 959 |  |  |  | 2,038 |
Total revenues |  |  | 278,780 |  |  |  |  | 46,296 |  |  |  |  |  | 244,661 |  |  |  | 569,737 |
Losses and Expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net losses and loss adjustment expenses |  |  | 140,388 |  |  |  |  | 28,718 |  |  |  |  |  | 167,095 |  |  |  | 336,201 |
Acquisition costs and other underwriting expenses |  |  | 102,680 |  |  |  |  | 16,148 |  |  |  |  |  | 96,779 |  |  |  | 215,607 |
Income (loss) from segments |  | $ | 35,712 |  |  |  | $ | 1,430 |  |  |  |  | $ | (19,213 | ) |  |  | 17,929 |
Unallocated Items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 28,392 |
Net realized investment losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (14,662 | )
Other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 80 |
Corporate and other operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (41,998 | )
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (15,792 | )
Loss on extinguishment of debt |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,060 | )
Loss before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (29,111 | )
Income tax benefit |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 8,105 |
Net loss |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | (21,006 | )
Segment assets |  | $ | 824,987 |  |  |  | $ | 137,950 |  |  |  |  | $ | 555,943 |  |  | $ | 1,518,880 |
Corporate assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 386,028 |
Total assets |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,904,908 |
External business only, excluding business assumed from affiliates.

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