| 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 (loss) income from continuing operations: | | | | | | | | | | | | | | | | | | For the Three Months Ended June 30, 2019 | | Diversified Reinsurance | | AmTrust Reinsurance | | Other | | Total | Gross premiums written | | $ | 11,244 |
| | $ | (9,127 | ) | | $ | — |
| | $ | 2,117 |
| Net premiums written | | $ | 8,718 |
| | $ | (9,127 | ) | | $ | — |
| | $ | (409 | ) | Net premiums earned | | $ | 22,472 |
| | $ | 111,514 |
| | $ | — |
| | $ | 133,986 |
| Other insurance revenue | | 754 |
| | — |
| | — |
| | 754 |
| Net loss and loss adjustment expenses ("loss and LAE") | | (12,497 | ) | | (109,088 | ) | | 24 |
| | (121,561 | ) | Commission and other acquisition expenses | | (8,147 | ) | | (41,509 | ) | | — |
| | (49,656 | ) | General and administrative expenses | | (2,092 | ) | | (562 | ) | | — |
| | (2,654 | ) | Underwriting income (loss) | | $ | 490 |
| | $ | (39,645 | ) | | $ | 24 |
| | (39,131 | ) | Reconciliation to net income from continuing operations | | | | | | | | | Net investment income and realized gains on investment | | | | | | | | 55,208 |
| Interest and amortization expenses | | | | | | | | (4,830 | ) | Foreign exchange and other gains | | | | | | | | 1,207 |
| Other general and administrative expenses | | | | | | | | (10,195 | ) | Income tax benefit | | | | | | | | 1,026 |
| Net income from continuing operations | | | | | | | | $ | 3,285 |
| | | | | | | | | | Net loss and LAE ratio(1) | | 53.8 | % | | 97.8 | % | | | | 90.2 | % | Commission and other acquisition expense ratio(2) | | 35.1 | % | | 37.2 | % | | | | 36.9 | % | General and administrative expense ratio(3) | | 9.0 | % | | 0.5 | % | | | | 9.5 | % | Expense ratio(4) | | 44.1 | % | | 37.7 | % | | | | 46.4 | % | Combined ratio(5) | | 97.9 | % | | 135.5 | % | | | | 136.6 | % |
3. Segment Information (continued) | | | | | | | | | | | | | | | | | | For the Three Months Ended June 30, 2018 | | Diversified Reinsurance | | AmTrust Reinsurance | | Other | | Total | Gross premiums written | | $ | 30,041 |
| | $ | 491,485 |
| | $ | — |
| | $ | 521,526 |
| Net premiums written | | $ | 29,717 |
| | $ | 491,311 |
| | $ | — |
| | $ | 521,028 |
| Net premiums earned | | $ | 28,539 |
| | $ | 475,849 |
| | $ | — |
| | $ | 504,388 |
| Other insurance revenue | | 2,033 |
| | — |
| | — |
| | 2,033 |
| Net loss and LAE | | (16,165 | ) | | (353,836 | ) | | — |
| | (370,001 | ) | Commission and other acquisition expenses | | (9,988 | ) | | (152,792 | ) | | — |
| | (162,780 | ) | General and administrative expenses | | (4,593 | ) | | (1,082 | ) | | — |
| | (5,675 | ) | Underwriting loss | | $ | (174 | ) | | $ | (31,861 | ) | | $ | — |
| | (32,035 | ) | Reconciliation to net loss from continuing operations | | | | | | | | | Net investment income and realized losses on investment | | | | | | | | 33,846 |
| Interest and amortization expenses | | | | | | | | (4,829 | ) | Foreign exchange gains | | | | | | | | 4,821 |
| Other general and administrative expenses | | | | | | | | (9,185 | ) | Income tax benefit | | | | | | | | 1,847 |
| Net loss from continuing operations | | | | | | | | $ | (5,535 | ) | | | | | | | | | | Net loss and LAE ratio(1) | | 52.9 | % | | 74.4 | % | | | | 73.1 | % | Commission and other acquisition expense ratio(2) | | 32.7 | % | | 32.1 | % | | | | 32.1 | % | General and administrative expense ratio(3) | | 15.0 | % | | 0.2 | % | | | | 2.9 | % | Expense ratio(4) | | 47.7 | % | | 32.3 | % | | | | 35.0 | % | Combined ratio(5) | | 100.6 | % | | 106.7 | % | | | | 108.1 | % |
3. Segment Information (continued) | | | | | | | | | | | | | | | | | | For the Six Months Ended June 30, 2019 | | Diversified Reinsurance | | AmTrust Reinsurance | | Other | | Total | Gross premiums written | | $ | 26,582 |
| | $ | (585,604 | ) | | $ | — |
| | $ | (559,022 | ) | Net premiums written | | $ | 23,665 |
| | $ | (585,604 | ) | | $ | — |
| | $ | (561,939 | ) | Net premiums earned | | $ | 47,764 |
| | $ | 269,324 |
| | $ | — |
| | $ | 317,088 |
| Other insurance revenue | | 1,504 |
| | — |
| | — |
| | 1,504 |
| Net loss and LAE | | (26,888 | ) | | (247,158 | ) | | (204 | ) | | (274,250 | ) | Commission and other acquisition expenses | | (17,408 | ) | | (101,865 | ) | | — |
| | (119,273 | ) | General and administrative expenses | | (5,123 | ) | | (1,828 | ) | | — |
| | (6,951 | ) | Underwriting loss | | $ | (151 | ) | | $ | (81,527 | ) | | $ | (204 | ) | | (81,882 | ) | Reconciliation to net loss from continuing operations | | | | | | | | | Net investment income and realized gains on investment | | | | | | | | 76,129 |
| Interest and amortization expenses | | | | | | | | (9,659 | ) | Foreign exchange and other gains | | | | | | | | 6,186 |
| Other general and administrative expenses | | | | | | | | (21,837 | ) | Income tax benefit | | | | | | | | 1,064 |
| Net loss from continuing operations | | | | | | | | $ | (29,999 | ) | | | | | | | | | | Net loss and LAE ratio(1) | | 54.6 | % | | 91.8 | % | | | | 86.1 | % | Commission and other acquisition expense ratio(2) | | 35.3 | % | | 37.8 | % | | | | 37.5 | % | General and administrative expense ratio(3) | | 10.4 | % | | 0.7 | % | | | | 9.0 | % | Expense ratio(4) | | 45.7 | % | | 38.5 | % | | | | 46.5 | % | Combined ratio(5) | | 100.3 | % | | 130.3 | % | | | | 132.6 | % |
3. Segment Information (continued) | | | | | | | | | | | | | | | | | | For the Six Months Ended June 30, 2018 | | Diversified Reinsurance | | AmTrust Reinsurance | | Other | | Total | Gross premiums written | | $ | 79,441 |
| | $ | 1,065,413 |
| | $ | — |
| | $ | 1,144,854 |
| Net premiums written | | $ | 77,988 |
| | $ | 1,065,691 |
| | $ | — |
| | $ | 1,143,679 |
| Net premiums earned | | $ | 54,054 |
| | $ | 967,147 |
| | $ | — |
| | $ | 1,021,201 |
| Other insurance revenue | | 5,759 |
| | — |
| | — |
| | 5,759 |
| Net loss and LAE | | (32,064 | ) | | (691,143 | ) | | — |
| | (723,207 | ) | Commission and other acquisition expenses | | (19,300 | ) | | (310,108 | ) | | — |
| | (329,408 | ) | General and administrative expenses | | (9,074 | ) | | (2,002 | ) | | — |
| | (11,076 | ) | Underwriting loss | | $ | (625 | ) | | $ | (36,106 | ) | | $ | — |
| | (36,731 | ) | Reconciliation to net income from continuing operations | | | | | | | | | Net investment income and realized losses on investment | | | | | | | | 67,072 |
| Interest and amortization expenses | | | | | | | | (9,658 | ) | Foreign exchange gains | | | | | | | | 2,414 |
| Other general and administrative expenses | | | | | | | | (19,455 | ) | Income tax benefit | | | | | | | | 3,171 |
| Net income from continuing operations | | | | | | | | $ | 6,813 |
| | | | | | | | | | Net loss and LAE ratio(1) | | 53.6 | % | | 71.4 | % | | | | 70.4 | % | Commission and other acquisition expense ratio(2) | | 32.2 | % | | 32.1 | % | | | | 32.1 | % | General and administrative expense ratio(3) | | 15.2 | % | | 0.2 | % | | | | 3.0 | % | Expense ratio(4) | | 47.4 | % | | 32.3 | % | | | | 35.1 | % | Combined ratio(5) | | 101.0 | % | | 103.7 | % | | | | 105.5 | % |
| | (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 the commission and other acquisition expense ratio and general and administrative expense ratio. |
| | (5) | Calculated by adding together net loss and LAE ratio and the expense ratio. |
The following tables summarize the financial position of our reportable segments including the reconciliation to our consolidated assets at June 30, 2019 and December 31, 2018: | | | | | | | | | | | | | | June 30, 2019 | | Diversified Reinsurance | | AmTrust Reinsurance | | Total | Total assets - reportable segments | | $ | 180,370 |
| | $ | 3,720,416 |
| | $ | 3,900,786 |
| Corporate assets | | — |
| | — |
| | 631,761 |
| Assets held for sale | | — |
| | — |
| | 66,009 |
| Total Assets | | $ | 180,370 |
| | $ | 3,720,416 |
| | $ | 4,598,556 |
| | | | | | | | December 31, 2018 | | Diversified Reinsurance | | AmTrust Reinsurance | | Total | Total assets - reportable segments | | $ | 190,437 |
| | $ | 4,495,740 |
| | $ | 4,686,177 |
| Corporate assets | | — |
| | — |
| | 426,808 |
| Assets held for sale | | — |
| | — |
| | 174,475 |
| Total Assets | | $ | 190,437 |
| | $ | 4,495,740 |
| | $ | 5,287,460 |
|
|
| 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 three and six months ended June 30, 2019 and 2018: | | | | | | | | | | For the Three Months Ended June 30, | | 2019 | 2018 | Net premiums written | | Total | Total | Diversified Reinsurance | | | | | International | | $ | 8,718 |
| | $ | 29,717 |
| Total Diversified Reinsurance | | 8,718 |
| | 29,717 |
| AmTrust Reinsurance | | | | | Small Commercial Business | | 5,515 |
| | 279,486 |
| Specialty Program | | (16,031 | ) | | 103,196 |
| Specialty Risk and Extended Warranty | | 1,389 |
| | 108,629 |
| Total AmTrust Reinsurance | | (9,127 | ) | | 491,311 |
| Total Net Premiums Written | | $ | (409 | ) | | $ | 521,028 |
|
| | | | | | | | | | For the Six Months Ended June 30, | | 2019 | 2018 | Net premiums written | | Total | Total | Diversified Reinsurance | | | | | International | | $ | 23,665 |
| | $ | 77,947 |
| Other | | — |
| | 41 |
| Total Diversified Reinsurance | | 23,665 |
| | 77,988 |
| AmTrust Reinsurance | | | | | Small Commercial Business | | (337,166 | ) | | 647,240 |
| Specialty Program | | (28,639 | ) | | 192,327 |
| Specialty Risk and Extended Warranty | | (219,799 | ) | | 226,124 |
| Total AmTrust Reinsurance | | (585,604 | ) | | 1,065,691 |
| Total Net Premiums Written | | $ | (561,939 | ) | | $ | 1,143,679 |
|
The following tables set forth financial information relating to net premiums earned by major line of business and reportable segment for the three and six months ended June 30, 2019 and 2018: | | | | | | | | | | For the Three Months Ended June 30, | | 2019 | 2018 | Net premiums earned | | Total | Total | Diversified Reinsurance | | | | | International | | $ | 22,472 |
| | $ | 28,539 |
| Other | | — |
| | — |
| Total Diversified Reinsurance | | 22,472 |
| | 28,539 |
| AmTrust Reinsurance | | | | | Small Commercial Business | | 23,283 |
| | 293,514 |
| Specialty Program | | 30,326 |
| | 96,739 |
| Specialty Risk and Extended Warranty | | 57,905 |
| | 85,596 |
| Total AmTrust Reinsurance | | 111,514 |
| | 475,849 |
| Total Net Premiums Earned | | $ | 133,986 |
| | $ | 504,388 |
|
3. Segment Information (continued) | | | | | | | | | | For the Six Months Ended June 30, | | 2019 | 2018 | Net premiums earned | | Total | Total | Diversified Reinsurance | | | | | International | | $ | 47,764 |
| | $ | 54,013 |
| Other | | — |
| | 41 |
| Total Diversified Reinsurance | | 47,764 |
| | 54,054 |
| AmTrust Reinsurance | | | | | Small Commercial Business | | 62,738 |
| | 609,223 |
| Specialty Program | | 106,547 |
| | 185,233 |
| Specialty Risk and Extended Warranty | | 100,039 |
| | 172,691 |
| Total AmTrust Reinsurance | | 269,324 |
| | 967,147 |
| Total Net Premiums Earned | | $ | 317,088 |
| | $ | 1,021,201 |
|
|