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	%