v3.3.1.900

Segment Information (Tables) | 12 Months Ended
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Dec. 31, 2015
Segment Reporting [Abstract] |
Underwriting results of operating segments | The following tables summarize our reporting segment's underwriting results and the reconciliation of our reportable segments and Other category's underwriting results to our consolidated net income:
For the Year Ended December 31, 2015 |  | Diversified Reinsurance |  | AmTrust Reinsurance |  | Other |  | Total
Gross premiums written |  | $ | 776,852 |  |  | $ | 1,885,974 |  |  | $ | (1 | ) |  | $ | 2,662,825 |
Net premiums written |  | $ | 734,781 |  |  | $ | 1,779,334 |  |  | $ | 1 |  |  | $ | 2,514,116 |
Net premiums earned |  | $ | 744,875 |  |  | $ | 1,684,191 |  |  | $ | 3 |  |  | $ | 2,429,069 |
Other insurance revenue |  | 11,512 |  |  | — |  |  | — |  |  | 11,512 |
Net loss and loss adjustment expenses |  | (547,296 | ) |  | (1,074,072 | ) |  | (12,202 | ) |  | (1,633,570 | )
Commission and other acquisition expenses |  | (196,292 | ) |  | (527,863 | ) |  | (42 | ) |  | (724,197 | )
General and administrative expenses |  | (37,550 | ) |  | (2,947 | ) |  | — |  |  | (40,497 | )
Underwriting (loss) income |  | $ | (24,751 | ) |  | $ | 79,309 |  |  | $ | (12,241 | ) |  | 42,317 |
Reconciliation to net income |  |  |  |  |  |  |  |
Net investment income and realized gains on investment |  |  |  |  |  |  |  | 133,590 |
Net impairment losses recognized in earnings |  |  |  |  |  |  |  | (1,060 | )
Interest and amortization expenses |  |  |  |  |  |  |  | (29,063 | )
Amortization of intangible assets |  |  |  |  |  |  |  | (2,840 | )
Foreign exchange and other gains |  |  |  |  |  |  |  | 7,753 |
Other general and administrative expenses |  |  |  |  |  |  |  | (24,375 | )
Income tax expense |  |  |  |  |  |  |  | (2,038 | )
Net income |  |  |  |  |  |  |  | $ | 124,284 |
Net loss and LAE ratio (1) |  | 72.3 | % |  | 63.8 | % |  |  |  | 66.9 | %
Commission and other acquisition expense ratio (2) |  | 26.0 | % |  | 31.3 | % |  |  |  | 29.7 | %
General and administrative expense ratio (3) |  | 5.0 | % |  | 0.2 | % |  |  |  | 2.7 | %
Combined ratio (4) |  | 103.3 | % |  | 95.3 | % |  |  |  |  | 99.3 | %
3. Segment Information (continued)
For the Year Ended December 31, 2014 |  | Diversified Reinsurance |  | AmTrust Reinsurance |  | Other |  | Total
Gross premiums written |  | $ | 897,748 |  |  | $ | 1,610,485 |  |  | $ | (881 | ) |  | $ | 2,507,352 |
Net premiums written |  | $ | 850,049 |  |  | $ | 1,610,485 |  |  | $ | (2,398 | ) |  | $ | 2,458,136 |
Net premiums earned |  | $ | 854,026 |  |  | $ | 1,378,327 |  |  | $ | 19,390 |  |  | $ | 2,251,743 |
Other insurance revenue |  | 13,410 |  |  | — |  |  | — |  |  | 13,410 |
Net loss and loss adjustment expenses |  | (579,771 | ) |  | (893,502 | ) |  | (24,998 | ) |  | (1,498,271 | )
Commission and other acquisition expenses |  | (233,711 | ) |  | (418,908 | ) |  | (6,696 | ) |  | (659,315 | )
General and administrative expenses |  | (38,858 | ) |  | (2,533 | ) |  | (757 | ) |  | (42,148 | )
Underwriting income (loss) |  | $ | 15,096 |  |  | $ | 63,384 |  |  | $ | (13,061 | ) |  | 65,419 |
Reconciliation to net income |  |  |  |  |  |  |  |
Net investment income and realized gains on investment |  |  |  |  |  |  |  | 118,378 |
Net impairment losses recognized in earnings |  |  |  |  |  |  |  | (2,364 | )
Interest and amortization expenses |  |  |  |  |  |  |  | (29,959 | )
Accelerated amortization of junior subordinated debt discount and issuance cost |  |  |  |  |  |  |  | (28,240 | )
Amortization of intangible assets |  |  |  |  |  |  |  | (3,277 | )
Foreign exchange and other gains |  |  |  |  |  |  |  | 4,150 |
Other general and administrative expenses |  |  |  |  |  |  |  | (20,410 | )
Income tax expense |  |  |  |  |  |  |  | (2,164 | )
Net income |  |  |  |  |  |  |  | $ | 101,533 |
Net loss and LAE ratio (1) |  | 66.8 | % |  | 64.8 | % |  |  |  | 66.1 | %
Commission and other acquisition expense ratio (2) |  | 26.9 | % |  | 30.4 | % |  |  |  | 29.1 | %
General and administrative expense ratio (3) |  | 4.6 | % |  | 0.2 | % |  |  |  | 2.8 | %
Combined ratio (4) |  | 98.3 | % |  | 95.4 | % |  |  |  |  | 98.0 | %
3. Segment Information (continued)
For the Year Ended December 31, 2013 |  | Diversified Reinsurance |  | AmTrust Reinsurance |  | Other |  | Total
Gross premiums written |  | $ | 848,790 |  |  | $ | 1,169,961 |  |  | $ | 185,408 |  |  | $ | 2,204,159 |
Net premiums written |  | $ | 763,374 |  |  | $ | 1,169,961 |  |  | $ | 162,966 |  |  | $ | 2,096,301 |
Net premiums earned |  | $ | 753,157 |  |  | $ | 988,900 |  |  | $ | 258,830 |  |  | $ | 2,000,887 |
Other insurance revenue |  | 14,232 |  |  | — |  |  | — |  |  | 14,232 |
Net loss and loss adjustment expenses |  | (519,962 | ) |  | (653,528 | ) |  | (176,140 | ) |  | (1,349,630 | )
Commission and other acquisition expenses |  | (190,604 | ) |  | (291,559 | ) |  | (74,415 | ) |  | (556,578 | )
General and administrative expenses |  | (37,649 | ) |  | (1,566 | ) |  | (707 | ) |  | (39,922 | )
Underwriting income |  | $ | 19,174 |  |  | $ | 42,247 |  |  | $ | 7,568 |  |  | 68,989 |
Reconciliation to net income |  |  |  |  |  |  |  |
Net investment income and realized gains on investment |  |  |  |  |  |  |  | 94,937 |
Interest and amortization expenses |  |  |  |  |  |  |  | (39,805 | )
Amortization of intangible assets |  |  |  |  |  |  |  | (3,780 | )
Foreign exchange and other gains |  |  |  |  |  |  |  | 2,809 |
Other general and administrative expenses |  |  |  |  |  |  |  | (18,431 | )
Income tax expense |  |  |  |  |  |  |  | (1,863 | )
Net income |  |  |  |  |  |  |  | $ | 102,856 |
Net loss and LAE ratio (1) |  | 67.8 | % |  | 66.1 | % |  |  |  | 67.0 | %
Commission and other acquisition expense ratio (2) |  | 24.8 | % |  | 29.5 | % |  |  |  | 27.6 | %
General and administrative expense ratio (3) |  | 4.9 | % |  | 0.2 | % |  |  |  | 2.9 | %
Combined ratio (4) |  | 97.5 | % |  | 95.8 | % |  |  |  |  | 97.5 | %
(1) | Calculated by dividing net loss and LAE by the sum of net premiums earned and other insurance revenue.
(2) | Calculated by dividing commission and other acquisition expenses by the sum of net premiums earned and other insurance revenue.
(3) | Calculated by dividing general and administrative expenses by the sum of net premiums earned and other insurance revenue.
(4) | Calculated by adding together net loss and LAE ratio, commission and other acquisition expense ratio and general and administrative expense ratio.
3. Segment Information (continued) The following tables summarize the financial position of our reportable segments including the reconciliation to our consolidated assets at December 31, 2015 and 2014:
December 31, 2015 |  | Diversified Reinsurance |  | AmTrust Reinsurance |  | Total
Reinsurance balances receivable, net |  | $ | 230,223 |  |  | $ | 137,586 |  |  | $ | 367,809 |
Reinsurance recoverable on unpaid losses |  | 38,390 |  |  | 14,230 |  |  | 52,620 |
Deferred commission and other acquisition expenses |  | 80,012 |  |  | 317,536 |  |  | 397,548 |
Loan to related party |  | — |  |  | 167,975 |  |  | 167,975 |
Goodwill and intangible assets, net |  | 81,920 |  |  | — |  |  | 81,920 |
Restricted cash and cash equivalents and investments |  | 1,178,076 |  |  | 2,468,689 |  |  | 3,646,765 |
Other assets |  | 35,920 |  |  | 72,843 |  |  | 108,763 |
Total assets - reportable segments |  | 1,644,541 |  |  | 3,178,859 |  |  | 4,823,400 |
Corporate assets |  | — |  |  | — |  |  | 890,245 |
Total Assets |  | $ | 1,644,541 |  |  | $ | 3,178,859 |  |  | $ | 5,713,645 |
December 31, 2014 |  | Diversified Reinsurance |  | AmTrust Reinsurance |  | Total
Reinsurance balances receivable, net |  | $ | 245,782 |  |  | $ | 256,779 |  |  | $ | 502,561 |
Reinsurance recoverable on unpaid losses |  | 31,272 |  |  | — |  |  | 31,272 |
Deferred commission and other acquisition expenses |  | 87,289 |  |  | 285,232 |  |  | 372,521 |
Loan to related party |  | — |  |  | 167,975 |  |  | 167,975 |
Goodwill and intangible assets, net |  | 87,336 |  |  | — |  |  | 87,336 |
Restricted cash and cash equivalents and investments |  | 1,132,953 |  |  | 1,930,502 |  |  | 3,063,455 |
Other assets |  | 40,032 |  |  | — |  |  | 40,032 |
Total assets - reportable segments |  | 1,624,664 |  |  | 2,640,488 |  |  | 4,265,152 |
Corporate assets |  | — |  |  | — |  |  | 898,940 |
Total Assets |  | $ | 1,624,664 |  |  | $ | 2,640,488 |  |  | $ | 5,164,092 |
Gross and net premiums written and net premiums earned by geographic location | The following table shows an analysis of the Company’s gross and net premiums written and net premiums earned by geographic location for the years ended December 31, 2015, 2014 and 2013. In case of business assumed from AmTrust Financial Services, Inc. ("AmTrust"), it is the location of the relevant AmTrust subsidiaries.
For the Year Ended December 31, |  | 2015 |  | 2014 |  | 2013
Gross premiums written – North America |  | $ | 2,165,309 |  |  | $ | 1,979,768 |  |  | $ | 1,742,333 |
Gross premiums written – Other (predominantly Europe) |  | 497,516 |  |  | 527,584 |  |  | 461,826 |
Net premiums written – North America |  | 2,038,444 |  |  | 1,934,644 |  |  | 1,638,844 |
Net premiums written – Other (predominantly Europe) |  | 475,672 |  |  | 523,492 |  |  | 457,457 |
Net premiums earned – North America |  | 2,027,141 |  |  | 1,778,579 |  |  | 1,602,128 |
Net premiums earned – Other (predominantly Europe) |  | 401,928 |  |  | 473,164 |  |  | 398,759 |
Net premiums by major line of business | The following tables set forth financial information relating to net premiums written by major line of business and reportable segment for the years ended December 31, 2015, 2014 and 2013:
For the Year Ended December 31, |  | 2015 |  | 2014 |  | 2013
|  | Total |  | % of Total |  | Total |  | % of Total |  | Total |  | % of Total
Net premiums written |  |  |  |  |  |  |  |  |  |  |  |
Diversified Reinsurance |  |  |  |  |  |  |  |  |  |  |  |
Property |  | $ | 160,939 |  |  | 6.4 | % |  | $ | 160,308 |  |  | 6.5 | % |  | $ | 145,292 |  |  | 6.9 | %
Casualty |  | 435,625 |  |  | 17.3 | % |  | 535,518 |  |  | 21.8 | % |  | 473,732 |  |  | 22.6 | %
Accident and Health |  | 64,102 |  |  | 2.6 | % |  | 38,870 |  |  | 1.6 | % |  | 35,340 |  |  | 1.7 | %
International |  | 74,115 |  |  | 2.9 | % |  | 115,353 |  |  | 4.7 | % |  | 109,010 |  |  | 5.2 | %
Total Diversified Reinsurance |  | 734,781 |  |  | 29.2 | % |  | 850,049 |  |  | 34.6 | % |  | 763,374 |  |  | 36.4 | %
AmTrust Reinsurance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Small Commercial Business |  | 1,057,968 |  |  | 42.1 | % |  | 857,576 |  |  | 34.9 | % |  | 572,006 |  |  | 27.3 | %
Specialty Program |  | 332,416 |  |  | 13.2 | % |  | 220,121 |  |  | 8.9 | % |  | 157,578 |  |  | 7.5 | %
Specialty Risk and Extended Warranty |  | 388,950 |  |  | 15.5 | % |  | 532,788 |  |  | 21.7 | % |  | 440,377 |  |  | 21.0 | %
Total AmTrust Reinsurance |  | 1,779,334 |  |  | 70.8 | % |  | 1,610,485 |  |  | 65.5 | % |  | 1,169,961 |  |  | 55.8 | %
Other |  | 1 |  |  | — | % |  | (2,398 | ) |  | (0.1 | )% |  | 162,966 |  |  | 7.8 | %
|  | $ | 2,514,116 |  |  | 100.0 | % |  | $ | 2,458,136 |  |  | 100.0 | % |  | $ | 2,096,301 |  |  | 100.0 | %
The following tables set forth financial information relating to net premiums earned by major line of business and reportable segment for the years ended December 31, 2015, 2014 and 2013:
For the Year Ended December 31, |  | 2015 |  | 2014 |  | 2013
|  | Total |  | % of Total |  | Total |  | % of Total |  | Total |  | % of Total
Net premiums earned |  |  |  |  |  |  |  |  |  |  |  |
Diversified Reinsurance |  |  |  |  |  |  |  |  |  |  |  |
Property |  | $ | 157,186 |  |  | 6.5 | % |  | $ | 174,785 |  |  | 7.7 | % |  | $ | 150,261 |  |  | 7.5 | %
Casualty |  | 449,000 |  |  | 18.5 | % |  | 533,775 |  |  | 23.7 | % |  | 472,095 |  |  | 23.6 | %
Accident and Health |  | 55,672 |  |  | 2.3 | % |  | 39,918 |  |  | 1.8 | % |  | 36,165 |  |  | 1.8 | %
International |  | 83,017 |  |  | 3.4 | % |  | 105,548 |  |  | 4.7 | % |  | 94,636 |  |  | 4.7 | %
Total Diversified Reinsurance |  | 744,875 |  |  | 30.7 | % |  | 854,026 |  |  | 37.9 | % |  | 753,157 |  |  | 37.6 | %
AmTrust Reinsurance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Small Commercial Business |  | 984,333 |  |  | 40.5 | % |  | 752,188 |  |  | 33.4 | % |  | 493,774 |  |  | 24.7 | %
Specialty Program |  | 290,209 |  |  | 11.9 | % |  | 175,286 |  |  | 7.8 | % |  | 140,478 |  |  | 7.0 | %
Specialty Risk and Extended Warranty |  | 409,649 |  |  | 16.9 | % |  | 450,853 |  |  | 20.0 | % |  | 354,648 |  |  | 17.7 | %
Total AmTrust Reinsurance |  | 1,684,191 |  |  | 69.3 | % |  | 1,378,327 |  |  | 61.2 | % |  | 988,900 |  |  | 49.4 | %
Other |  | 3 |  |  | — | % |  | 19,390 |  |  | 0.9 | % |  | 258,830 |  |  | 13.0 | %
|  | $ | 2,429,069 |  |  | 100.0 | % |  | $ | 2,251,743 |  |  | 100.0 | % |  | $ | 2,000,887 |  |  | 100.0 | %

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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 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 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 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8721-108599 Reference 4: 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=35741047&loc=d3e13816-109267 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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