v3.3.1.900

Segment Information | 12 Months Ended
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Dec. 31, 2015
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company currently has two reportable segments: Diversified Reinsurance and AmTrust Reinsurance. Our Diversified Reinsurance segment consists of a portfolio of predominantly property and casualty reinsurance business focusing on regional and specialty property and casualty insurance companies located, primarily in the U.S. and Europe. Our AmTrust Reinsurance segment includes all business ceded to Maiden Bermuda from AmTrust, primarily the AmTrust Quota Share and the European Hospital Liability Quota Share. In addition to our reportable segments, the results of operations of the former NGHC Quota Share segment and the remnants of the U.S. excess and surplus business have been included in the "Other" category. The Company evaluates segment performance based on segment profit separately from the results of our investment portfolio. General and administrative expenses are allocated to the segments on an actual basis except salaries and benefits where management’s judgment is applied. The Company does not allocate general corporate expenses to the segments. In determining total assets by reportable segment, the Company identifies those assets that are attributable to a particular segment such as reinsurance balances receivable, reinsurance recoverable on unpaid losses, deferred commission and other acquisition expenses, loans, goodwill and intangible assets, restricted cash and cash equivalents and investments and prepaid reinsurance premiums. All remaining assets are allocated to Corporate. 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 |
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 |
3. Segment Information (continued) 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 The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 9: 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 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: 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 + Details
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