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Segment Information | 9 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
Segment Information | 15. Segment Information During the fourth quarter of 2022, the Company restructured its insurance operations to strengthen its market presence and enhance its focus on GBLI’s core Package Specialty and Targeted Specialty products. As a result, the Company exited 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. 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 and nine months ended September 30, 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 Package Specialty and Targeted Specialty product offerings. These product lines are offered primarily in the excess and surplus lines marketplace. 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 and nine months ended September 30, 2023 and 2022. Corporate information is included to reconcile segment data to the consolidated financial statements.
Quarter Ended September 30, 2023 (Dollars in thousands) |  | Commercial Specialty |  |  | Reinsurance Operations |  | (1) | Exited Lines |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Gross written premiums |  | $ | 87,029 |  |  | $ | 11,864 |  |  | $ | 33 |  |  | $ | 98,926 |
Net written premiums |  | $ | 84,103 |  |  | $ | 11,864 |  |  | $ | (344 | ) |  | $ | 95,623 |
Net earned premiums |  | $ | 83,679 |  |  | $ | 26,671 |  |  | $ | 1,345 |  |  | $ | 111,695 |
Other income |  |  | 275 |  |  |  | — |  |  |  | 24 |  |  |  | 299 |
Total revenues |  |  | 83,954 |  |  |  | 26,671 |  |  |  | 1,369 |  |  |  | 111,994 |
Losses and Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Net losses and loss adjustment expenses |  |  | 63,624 |  |  |  | 13,673 |  |  |  | (12,181 | ) |  |  | 65,116 |
Acquisition costs and other underwriting expenses |  |  | 32,671 |  |  |  | 10,553 |  |  |  | 2,978 |  |  |  | 46,202 |
Income (loss) from segments |  | $ | (12,341 | ) |  | $ | 2,445 |  |  | $ | 10,572 |  |  | $ | 676 |
Unallocated Items: |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  |  |  |  |  |  |  |  |  |  |  | 14,200 |
Net realized investment losses |  |  |  |  |  |  |  |  |  |  |  | (133 | )
Corporate and other operating expenses |  |  |  |  |  |  |  |  |  |  |  | (5,280 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  | 9,463 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  | (1,763 | )
Net income |  |  |  |  |  |  |  |  |  |  | $ | 7,700 |
Segment assets |  | $ | 1,020,613 |  |  | $ | 386,026 |  |  | $ | 186,614 |  |  | $ | 1,593,253 |
Corporate assets |  |  |  |  |  |  |  |  |  |  |  | 174,593 |
Total assets |  |  |  |  |  |  |  |  |  |  | $ | 1,767,846 |
(1) External business only, excluding business assumed from affiliates.
Quarter Ended September 30, 2022 (Dollars in thousands) |  | Commercial Specialty |  |  | Reinsurance Operations |  | (1) | Exited Lines |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Gross written premiums |  | $ | 96,056 |  |  | $ | 43,055 |  |  | $ | 36,716 |  |  | $ | 175,827 |
Net written premiums |  | $ | 93,172 |  |  | $ | 43,055 |  |  | $ | 6,608 |  |  | $ | 142,835 |
Net earned premiums |  | $ | 98,597 |  |  | $ | 35,046 |  |  | $ | 20,001 |  |  | $ | 153,644 |
Other income |  |  | 272 |  |  |  | — |  |  |  | 44 |  |  |  | 316 |
Total revenues |  |  | 98,869 |  |  |  | 35,046 |  |  |  | 20,045 |  |  |  | 153,960 |
Losses and Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Net losses and loss adjustment expenses |  |  | 56,833 |  |  |  | 20,316 |  |  |  | 11,310 |  |  |  | 88,459 |
Acquisition costs and other underwriting expenses |  |  | 37,817 |  |  |  | 13,013 |  |  |  | 10,046 |  |  |  | 60,876 |
Income (loss) from segments |  | $ | 4,219 |  |  | $ | 1,717 |  |  | $ | (1,311 | ) |  | $ | 4,625 |
Unallocated Items: |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  |  |  |  |  |  |  |  |  |  |  | 8,389 |
Net realized investment gains |  |  |  |  |  |  |  |  |  |  |  | 2,234 |
Other income |  |  |  |  |  |  |  |  |  |  |  | 30,000 |
Corporate and other operating expenses |  |  |  |  |  |  |  |  |  |  |  | (14,064 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  | 31,184 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  | (7,438 | )
Net income |  |  |  |  |  |  |  |  |  |  |  | 23,746 |
Segment assets |  | $ | 996,336 |  |  | $ | 372,036 |  |  | $ | 336,668 |  |  | $ | 1,705,040 |
Corporate assets |  |  |  |  |  |  |  |  |  |  |  | 174,097 |
Total assets |  |  |  |  |  |  |  |  |  |  | $ | 1,879,137 |
(1) External business only, excluding business assumed from affiliates.
Nine Months Ended September 30, 2023 (Dollars in thousands) |  | Commercial Specialty |  |  | Reinsurance Operations |  | (1) | Exited Lines |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Gross written premiums |  | $ | 277,884 |  |  | $ | 50,124 |  |  | $ | 4,003 |  |  | $ | 332,011 |
Net written premiums |  | $ | 267,233 |  |  | $ | 50,124 |  |  | $ | 123 |  |  | $ | 317,480 |
Net earned premiums |  | $ | 270,269 |  |  | $ | 91,103 |  |  | $ | 19,551 |  |  | $ | 380,923 |
Other income |  |  | 808 |  |  |  | — |  |  |  | 127 |  |  |  | 935 |
Total revenues |  |  | 271,077 |  |  |  | 91,103 |  |  |  | 19,678 |  |  |  | 381,858 |
Losses and Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Net losses and loss adjustment expenses |  |  | 182,405 |  |  |  | 54,448 |  |  |  | (5,654 | ) |  |  | 231,199 |
Acquisition costs and other underwriting expenses |  |  | 102,169 |  |  |  | 34,106 |  |  |  | 10,506 |  |  |  | 146,781 |
Income (loss) from segments |  | $ | (13,497 | ) |  | $ | 2,549 |  |  | $ | 14,826 |  |  | $ | 3,878 |
Unallocated Items: |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  |  |  |  |  |  |  |  |  |  |  | 39,424 |
Net realized investment losses |  |  |  |  |  |  |  |  |  |  |  | (2,414 | )
Corporate and other operating expenses |  |  |  |  |  |  |  |  |  |  |  | (16,638 | )
Interest expense |  |  |  |  |  |  |  |  |  |  |  | (12 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  | 24,238 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  | (4,707 | )
Net income |  |  |  |  |  |  |  |  |  |  | $ | 19,531 |
Segment assets |  | $ | 1,020,613 |  |  | $ | 386,026 |  |  | $ | 186,614 |  |  | $ | 1,593,253 |
Corporate assets |  |  |  |  |  |  |  |  |  |  |  | 174,593 |
Total assets |  |  |  |  |  |  |  |  |  |  | $ | 1,767,846 |
(1) External business only, excluding business assumed from affiliates.
Nine Months Ended September 30, 2022 (Dollars in thousands) |  | Commercial Specialty |  |  | Reinsurance Operations |  | (1) | Exited Lines |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Gross written premiums |  | $ | 303,914 |  |  | $ | 130,575 |  |  | $ | 129,144 |  |  | $ | 563,633 |
Net written premiums |  | $ | 291,002 |  |  | $ | 130,575 |  |  | $ | 47,898 |  |  | $ | 469,475 |
Net earned premiums |  | $ | 283,791 |  |  | $ | 108,506 |  |  | $ | 65,919 |  |  | $ | 458,216 |
Other income |  |  | 791 |  |  |  | — |  |  |  | 48 |  |  |  | 839 |
Total revenues |  |  | 284,582 |  |  |  | 108,506 |  |  |  | 65,967 |  |  |  | 459,055 |
Losses and Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Net losses and loss adjustment expenses |  |  | 163,296 |  |  |  | 64,168 |  |  |  | 38,308 |  |  |  | 265,772 |
Acquisition costs and other underwriting expenses |  |  | 106,886 |  |  |  | 39,527 |  |  |  | 32,253 |  |  |  | 178,666 |
Income (loss) from segments |  | $ | 14,400 |  |  | $ | 4,811 |  |  | $ | (4,594 | ) |  | $ | 14,617 |
Unallocated Items: |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  |  |  |  |  |  |  |  |  |  |  | 16,911 |
Net realized investment losses |  |  |  |  |  |  |  |  |  |  |  | (33,067 | )
Other income |  |  |  |  |  |  |  |  |  |  |  | 30,000 |
Corporate and other operating expenses |  |  |  |  |  |  |  |  |  |  |  | (21,718 | )
Interest expense |  |  |  |  |  |  |  |  |  |  |  | (3,004 | )
Loss on extinguishment of debt |  |  |  |  |  |  |  |  |  |  |  | (3,529 | )
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  | 210 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  | (3,399 | )
Net loss |  |  |  |  |  |  |  |  |  |  | $ | (3,189 | )
Segment assets |  | $ | 996,336 |  |  | $ | 372,036 |  |  | $ | 336,668 |  |  | $ | 1,705,040 |
Corporate assets |  |  |  |  |  |  |  |  |  |  |  | 174,097 |
Total assets |  |  |  |  |  |  |  |  |  |  | $ | 1,879,137 |
(1) External business only, excluding business assumed from affiliates.

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