v2.4.0.8

Segments (Tables) | 3 Months Ended
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Mar. 31, 2014
Segment Reporting [Abstract] |
Underwriting results of operating segments | The following tables summarize our operating segment's underwriting results and the reconciliation of our operating segments to net income:
For the Three Months Ended March 31, 2014 |  | Diversified Reinsurance |  | AmTrust Quota Share Reinsurance |  | NGHC Quota Share |  | Total
Net premiums written |  | $ | 291,619 |  |  | $ | 419,010 |  |  | $ | (737 | ) |  | $ | 709,892 |
Net premiums earned |  | $ | 199,316 |  |  | $ | 304,922 |  |  | $ | 14,992 |  |  | $ | 519,230 |
Other insurance revenue |  | 5,162 |  |  | — |  |  | — |  |  | 5,162 |
Net loss and loss adjustment expenses |  | (141,364 | ) |  | (199,544 | ) |  | (10,436 | ) |  | (351,344 | )
Commission and other acquisition expenses |  | (50,841 | ) |  | (90,485 | ) |  | (4,756 | ) |  | (146,082 | )
General and administrative expenses |  | (10,990 | ) |  | (548 | ) |  | (199 | ) |  | (11,737 | )
Underwriting income (loss) |  | $ | 1,283 |  |  | $ | 14,345 |  |  | $ | (399 | ) |  | $ | 15,229 |
Reconciliation to net income |  |  |  |  |  |  |  |  |  |  |  |
Net investment income and realized gains on investment |  |  |  |  |  |  |  |  |  |  | 27,930 |
Amortization of intangible assets |  |  |  |  |  |  |  |  |  |  | (819 | )
Foreign exchange and other gains |  |  |  |  |  |  |  |  |  |  | 138 |
Interest and amortization expenses |  |  |  |  |  |  |  |  |  |  | (8,064 | )
Accelerated amortization of junior subordinated debt discount and issuance cost |  |  |  |  |  |  |  | (28,240 | )
Other general and administrative expenses |  |  |  |  |  |  |  |  |  |  | (3,187 | )
Income tax expense |  |  |  |  |  |  |  |  |  |  | (926 | )
Net income |  |  |  |  |  |  |  |  |  |  | $ | 2,061 |
Net loss and loss adjustment expense ratio* |  | 69.1 | % |  | 65.4 | % |  | 69.6 | % |  | 67.0 | %
Commission and other acquisition expense ratio** |  | 24.9 | % |  | 29.7 | % |  | 31.7 | % |  | 27.9 | %
General and administrative expense ratio*** |  | 5.4 | % |  | 0.2 | % |  | 1.4 | % |  | 2.8 | %
Combined ratio**** |  | 99.4 | % |  | 95.3 | % |  | 102.7 | % |  | 97.7 | %
3. Segments (continued)
For the Three Months Ended March 31, 2013 |  | Diversified Reinsurance |  | AmTrust Quota Share Reinsurance |  | NGHC Quota Share |  | Total
Net premiums written |  | $ | 267,610 |  |  | $ | 344,818 |  |  | $ | 76,631 |  |  | $ | 689,059 |
Net premiums earned |  | $ | 196,249 |  |  | $ | 220,288 |  |  | $ | 71,905 |  |  | $ | 488,442 |
Other insurance revenue |  | 5,215 |  |  | — |  |  | — |  |  | 5,215 |
Net loss and loss adjustment expenses |  | (140,763 | ) |  | (145,645 | ) |  | (48,487 | ) |  | (334,895 | )
Commission and other acquisition expenses |  | (44,782 | ) |  | (65,132 | ) |  | (22,416 | ) |  | (132,330 | )
General and administrative expenses |  | (10,798 | ) |  | (489 | ) |  | (174 | ) |  | (11,461 | )
Underwriting income |  | $ | 5,121 |  |  | $ | 9,022 |  |  | $ | 828 |  |  | $ | 14,971 |
Reconciliation to net income |  |  |  |  |  |  |  |
Net investment income and realized gains on investment |  |  |  |  |  |  |  | 25,262 |
Amortization of intangible assets |  |  |  |  |  |  |  | (945 | )
Foreign exchange and other gains |  |  |  |  |  |  |  | 1,547 |
Interest and amortization expenses |  |  |  |  |  |  |  | (9,570 | )
Other general and administrative expenses |  |  |  |  |  |  |  | (2,634 | )
Income tax expense |  |  |  |  |  |  |  | (524 | )
Net income |  |  |  |  |  |  |  | $ | 28,107 |
Net loss and loss adjustment expense ratio* |  | 69.9 | % |  | 66.1 | % |  | 67.4 | % |  | 67.8 | %
Commission and other acquisition expense ratio** |  | 22.2 | % |  | 29.6 | % |  | 31.2 | % |  | 26.8 | %
General and administrative expense ratio*** |  | 5.4 | % |  | 0.2 | % |  | 0.2 | % |  | 2.9 | %
Combined ratio**** |  | 97.5 | % |  | 95.9 | % |  | 98.8 | % |  | 97.5 | %
* | Calculated by dividing net loss and loss adjustment expenses by the sum of net premiums earned and other insurance revenue.
** | Calculated by dividing commission and other acquisition expenses by the sum of net premiums earned and other insurance revenue.
*** | Calculated by dividing general and administrative expenses by the sum of net premiums earned and other insurance revenue.
**** | Calculated by adding together net loss and loss adjustment expense ratio, commission and other acquisition expense ratio and general and administrative expense ratio.
3. Segments (continued) The following table summarizes the financial position of our operating segments as of March 31, 2014 and December 31, 2013:
March 31, 2014 |  | Diversified Reinsurance |  | AmTrust Quota Share Reinsurance |  | NGHC Quota Share |  | Total
Reinsurance balances receivable, net |  | $ | 336,807 |  |  | $ | 338,412 |  |  | $ | — |  |  | $ | 675,219 |
Prepaid reinsurance premiums |  | 31,870 |  |  | — |  |  | — |  |  | 31,870 |
Reinsurance recoverable on unpaid losses |  | 83,350 |  |  | — |  |  | — |  |  | 83,350 |
Deferred commission and other acquisition expenses |  | 102,342 |  |  | 244,322 |  |  | 2,052 |  |  | 348,716 |
Loan to related party |  | — |  |  | 167,975 |  |  | — |  |  | 167,975 |
Goodwill and intangible assets, net |  | 89,794 |  |  | — |  |  | — |  |  | 89,794 |
Restricted cash and cash equivalents and investments |  | 1,032,818 |  |  | 1,221,365 |  |  | 106,328 |  |  | 2,360,511 |
Other assets |  | 28,617 |  |  | — |  |  | — |  |  | 28,617 |
Total assets - operating segments |  | 1,705,598 |  |  | 1,972,074 |  |  | 108,380 |  |  | 3,786,052 |
Corporate assets |  | — |  |  | — |  |  | — |  |  | 1,082,504 |
Total Assets |  | $ | 1,705,598 |  |  | $ | 1,972,074 |  |  | $ | 108,380 |  |  | $ | 4,868,556 |
December 31, 2013 |  | Diversified Reinsurance |  | AmTrust Quota Share Reinsurance |  | NGHC Quota Share |  | Total
Reinsurance balances receivable, net |  | $ | 260,882 |  |  | $ | 278,573 |  |  | $ | 20,690 |  |  | $ | 560,145 |
Prepaid reinsurance premiums |  | 39,186 |  |  | — |  |  | — |  |  | 39,186 |
Reinsurance recoverable on unpaid losses |  | 84,036 |  |  | — |  |  | — |  |  | 84,036 |
Deferred commission and other acquisition expenses |  | 88,482 |  |  | 209,439 |  |  | 6,987 |  |  | 304,908 |
Loan to related party |  | — |  |  | 167,975 |  |  | — |  |  | 167,975 |
Goodwill and intangible assets, net |  | 90,613 |  |  | — |  |  | — |  |  | 90,613 |
Restricted cash and cash equivalents and investments |  | 1,029,537 |  |  | 1,098,409 |  |  | 103,752 |  |  | 2,231,698 |
Other assets |  | 32,358 |  |  | — |  |  | — |  |  | 32,358 |
Total assets - operating segments |  | 1,625,094 |  |  | 1,754,396 |  |  | 131,429 |  |  | 3,510,919 |
Corporate assets |  | — |  |  | — |  |  | — |  |  | 1,202,460 |
Total Assets |  | $ | 1,625,094 |  |  | $ | 1,754,396 |  |  | $ | 131,429 |  |  | $ | 4,713,379 |
Net premiums by major line of business | The following tables set forth financial information relating to net premiums written and earned by major line of business for the three months ended March 31, 2014 and 2013:
For the Three Months Ended March 31, |  | 2014 |  | 2013
Net premiums written |  | Total |  | % of Total |  | Total |  | % of Total
Diversified Reinsurance |  |  |  |  |  |  |  |
Property |  | $ | 62,581 |  |  | 8.8 | % |  | $ | 69,522 |  |  | 10.1 | %
Casualty |  | 171,754 |  |  | 24.2 | % |  | 148,423 |  |  | 21.5 | %
Accident and Health |  | 17,222 |  |  | 2.4 | % |  | 15,529 |  |  | 2.2 | %
International |  | 40,062 |  |  | 5.7 | % |  | 34,136 |  |  | 5.0 | %
Total Diversified Reinsurance |  | 291,619 |  |  | 41.1 | % |  | 267,610 |  |  | 38.8 | %
AmTrust Quota Share Reinsurance |  |  |  |  |  |  |  |
Small Commercial Business |  | 253,757 |  |  | 35.7 | % |  | 162,018 |  |  | 23.5 | %
Specialty Program |  | 31,798 |  |  | 4.5 | % |  | 34,946 |  |  | 5.1 | %
Specialty Risk and Extended Warranty |  | 133,455 |  |  | 18.8 | % |  | 147,854 |  |  | 21.5 | %
Total AmTrust Quota Share Reinsurance |  | 419,010 |  |  | 59.0 | % |  | 344,818 |  |  | 50.1 | %
NGHC Quota Share |  |  |  |  |  |  |  |
Automobile Liability |  | (534 | ) |  | (0.1 | )% |  | 44,339 |  |  | 6.4 | %
Automobile Physical Damage |  | (203 | ) |  | — | % |  | 32,292 |  |  | 4.7 | %
Total NGHC Quota Share |  | (737 | ) |  | (0.1 | )% |  | 76,631 |  |  | 11.1 | %
|  | $ | 709,892 |  |  | 100.0 | % |  | $ | 689,059 |  |  | 100.0 | %
For the Three Months Ended March 31, |  | 2014 |  | 2013
Net premiums earned |  | Total |  | % of Total |  | Total |  | % of Total
Diversified Reinsurance |  |  |  |  |  |  |  |
Property |  | $ | 40,595 |  |  | 7.8 | % |  | $ | 47,547 |  |  | 9.7 | %
Casualty |  | 121,887 |  |  | 23.5 | % |  | 117,059 |  |  | 24.0 | %
Accident and Health |  | 8,886 |  |  | 1.7 | % |  | 8,633 |  |  | 1.8 | %
International |  | 27,948 |  |  | 5.4 | % |  | 23,010 |  |  | 4.7 | %
Total Diversified Reinsurance |  | 199,316 |  |  | 38.4 | % |  | 196,249 |  |  | 40.2 | %
AmTrust Quota Share Reinsurance |  |  |  |  |  |  |  |
Small Commercial Business |  | 158,605 |  |  | 30.5 | % |  | 102,257 |  |  | 20.9 | %
Specialty Program |  | 32,853 |  |  | 6.3 | % |  | 33,346 |  |  | 6.8 | %
Specialty Risk and Extended Warranty |  | 113,464 |  |  | 21.9 | % |  | 84,685 |  |  | 17.3 | %
Total AmTrust Quota Share Reinsurance |  | 304,922 |  |  | 58.7 | % |  | 220,288 |  |  | 45.0 | %
NGHC Quota Share |  |  |  |  |  |  |  |
Automobile Liability |  | 9,096 |  |  | 1.8 | % |  | 41,630 |  |  | 8.6 | %
Automobile Physical Damage |  | 5,896 |  |  | 1.1 | % |  | 30,275 |  |  | 6.2 | %
Total NGHC Quota Share |  | 14,992 |  |  | 2.9 | % |  | 71,905 |  |  | 14.8 | %
|  | $ | 519,230 |  |  | 100.0 | % |  | $ | 488,442 |  |  | 100.0 | %

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- Definition Tabular disclosure of entity-wide revenues from external customers for each product or service or each group of similar products or services if the information is not provided as part of the reportable operating segment information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 + Details
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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8721-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8813-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8736-108599 + Details
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