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Segment Information
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Segment Information
14.
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 exited Commercial Specialty's four brokerage divisions: Professional Liability, Excess Casualty, Environmental, and Middle Market Property. The Company ceased writing new business and existing renewals were 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. Based on the decisions to exit 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 these exited lines within the Company's Exited Lines segment. In addition, a decision was made in the fourth quarter of 2022 to reclassify several smaller reinsurance treaties from Reinsurance Operations to Commercial Specialty. Management believes these segment changes 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. Accordingly, the segment results for the quarter ended March 31, 2022 have been revised to reflect these changes.

 

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 quarters ended March 31, 2023 and 2022. Corporate information is included to reconcile segment data to the consolidated financial statements.

 

Quarter Ended March 31, 2023
(Dollars in thousands)

 

Commercial
Specialty

 

 

Reinsurance
Operations

 

(1)

Exited Lines

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Gross written premiums

 

$

95,508

 

 

$

23,416

 

 

$

4,061

 

 

$

122,985

 

Net written premiums

 

$

91,234

 

 

$

23,416

 

 

$

1,211

 

 

$

115,861

 

Net earned premiums

 

$

93,182

 

 

$

34,847

 

 

$

12,043

 

 

$

140,072

 

Other income (loss)

 

 

267

 

 

 

(9

)

 

 

77

 

 

 

335

 

Total revenues

 

 

93,449

 

 

 

34,838

 

 

 

12,120

 

 

 

140,407

 

Losses and Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Net losses and loss adjustment expenses

 

 

60,119

 

 

 

21,263

 

 

 

6,619

 

 

 

88,001

 

Acquisition costs and other underwriting expenses

 

 

35,526

 

 

 

12,816

 

 

 

5,136

 

 

 

53,478

 

Income (loss) from segments

 

$

(2,196

)

 

$

759

 

 

$

365

 

 

$

(1,072

)

Unallocated Items:

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

12,008

 

Net realized investment losses

 

 

 

 

 

 

 

 

 

 

 

(1,520

)

Other income

 

 

 

 

 

 

 

 

 

 

 

19

 

Corporate and other operating expenses

 

 

 

 

 

 

 

 

 

 

 

(6,368

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

3,067

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

(573

)

Net income

 

 

 

 

 

 

 

 

 

 

$

2,494

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment assets

 

$

985,557

 

 

$

368,751

 

 

$

249,302

 

 

$

1,603,610

 

Corporate assets

 

 

 

 

 

 

 

 

 

 

 

173,668

 

Total assets

 

 

 

 

 

 

 

 

 

 

$

1,777,278

 

 

(1)
External business only, excluding business assumed from affiliates.

 

Quarter Ended March 31, 2022
(Dollars in thousands)

 

Commercial
Specialty

 

 

Reinsurance
Operations

 

(1)

Exited Lines

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Gross written premiums

 

$

102,848

 

 

$

40,996

 

 

$

47,139

 

 

$

190,983

 

Net written premiums

 

$

98,163

 

 

$

40,996

 

 

$

20,323

 

 

$

159,482

 

Net earned premiums

 

$

91,197

 

 

$

34,298

 

 

$

23,328

 

 

$

148,823

 

Other income (loss)

 

 

259

 

 

 

(20

)

 

 

200

 

 

 

439

 

Total revenues

 

 

91,456

 

 

 

34,278

 

 

 

23,528

 

 

 

149,262

 

Losses and Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Net losses and loss adjustment expenses

 

 

53,659

 

 

 

21,059

 

 

 

9,977

 

 

 

84,695

 

Acquisition costs and other underwriting expenses

 

 

33,526

 

 

 

11,961

 

 

 

11,205

 

 

 

56,692

 

Income from segments

 

$

4,271

 

 

$

1,258

 

 

$

2,346

 

 

$

7,875

 

Unallocated Items:

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

6,592

 

Net realized investment losses

 

 

 

 

 

 

 

 

 

 

 

(25,385

)

Other loss

 

 

 

 

 

 

 

 

 

 

 

(13

)

Corporate and other operating expenses

 

 

 

 

 

 

 

 

 

 

 

(4,660

)

Interest expense

 

 

 

 

 

 

 

 

 

 

 

(2,595

)

Loss before income taxes

 

 

 

 

 

 

 

 

 

 

 

(18,186

)

Income tax benefit

 

 

 

 

 

 

 

 

 

 

 

3,413

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(14,773

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment assets

 

$

964,718

 

 

$

267,466

 

 

$

396,227

 

 

$

1,628,411

 

Corporate assets

 

 

 

 

 

 

 

 

 

 

 

331,085

 

Total assets

 

 

 

 

 

 

 

 

 

 

$

1,959,496

 

 

(1)
External business only, excluding business assumed from affiliates.