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Segment Information
 12 Months Ended
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.