| Segment Information |
Note 15 – Segment Information
The Company identifies its operating divisions based on organizational structure and revenue source. Currently, the Company has three reportable segments: insurance operations, real estate operations, and corporate and other. Due to their economic characteristics, the Company’s property and casualty insurance division and reinsurance division are grouped together into one reportable segment under insurance operations. The real estate operations segment includes companies engaged in operating commercial properties the Company owns for investment purposes or for use in its own operations. The corporate and other segment represents the activities of the holding companies, the information technology division, and other companies that do not meet the quantitative and qualitative thresholds for a reportable segment. The determination of segments may change over time due to changes in operational emphasis, revenues, and results of operations. The Company’s chief executive officer, who serves as the Company’s chief operating decision maker, evaluates each division’s financial and operating performance based on revenue and operating income.
For the three months ended September 30, 2020 and 2019, revenues from the Company’s insurance operations before intracompany elimination represented 71.1% and 95.2%, respectively, of total revenues of all operating segments. For the nine months ended September 30, 2020 and 2019, revenues from the Company’s insurance operations before intracompany elimination represented 86.2% and 95.0%, respectively, of total revenues of all operating segments. At September 30, 2020 and December 31, 2019, insurance operations’ total assets represented 83.0% and 85.5%, respectively, of the combined assets of all operating segments. The following tables present segment information reconciled to the Company’s consolidated statements of income. Intersegment transactions are not eliminated from segment results. However, intracompany transactions are eliminated in segment results below.
|
|
|
Insurance |
|
|
Real |
|
|
Corporate/ |
|
|
Reclassification/ |
|
|
|
|
|
|
For Three Months Ended September 30, 2020 |
|
Operations |
|
|
Estate(a) |
|
|
Other(b) |
|
|
Elimination |
|
|
Consolidated |
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums earned |
|
$ |
62,463 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
62,463 |
|
|
Net investment income (loss) |
|
|
1,050 |
|
|
|
— |
|
|
|
1,072 |
|
|
|
(290 |
) |
|
|
1,832 |
|
|
Net realized investment gains |
|
|
131 |
|
|
|
— |
|
|
|
46 |
|
|
|
— |
|
|
|
177 |
|
|
Net unrealized investment gains |
|
|
1,093 |
|
|
|
— |
|
|
|
247 |
|
|
|
— |
|
|
|
1,340 |
|
|
Credit losses on investments |
|
|
(50 |
) |
|
|
— |
|
|
|
(20 |
) |
|
|
— |
|
|
|
(70 |
) |
|
Policy fee income |
|
|
895 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
895 |
|
|
Gain on involuntary conversion |
|
|
— |
|
|
|
36,969 |
|
|
|
— |
|
|
|
— |
|
|
|
36,969 |
|
|
Other |
|
|
285 |
|
|
|
2,384 |
|
|
|
510 |
|
|
|
(2,758 |
) |
|
|
421 |
|
|
Total revenue |
|
|
65,867 |
|
|
|
39,353 |
|
|
|
1,855 |
|
|
|
(3,048 |
) |
|
|
104,027 |
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and loss adjustment expenses |
|
|
51,743 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
51,743 |
|
|
Amortization of deferred policy acquisition costs |
|
|
12,200 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,200 |
|
|
Interest expense |
|
|
— |
|
|
|
463 |
|
|
|
2,631 |
|
|
|
(238 |
) |
|
|
2,856 |
|
|
Depreciation and amortization |
|
|
28 |
|
|
|
566 |
|
|
|
452 |
|
|
|
(585 |
) |
|
|
461 |
|
|
Other |
|
|
10,028 |
|
|
|
1,423 |
|
|
|
6,005 |
|
|
|
(2,225 |
) |
|
|
15,231 |
|
|
Total expenses |
|
|
73,999 |
|
|
|
2,452 |
|
|
|
9,088 |
|
|
|
(3,048 |
) |
|
|
82,491 |
|
|
(Loss) income before income taxes |
|
$ |
(8,132 |
) |
|
$ |
36,901 |
|
|
$ |
(7,233 |
) |
|
$ |
— |
|
|
$ |
21,536 |
|
|
Total revenue from non-affiliates(c) |
|
$ |
65,867 |
|
|
$ |
38,859 |
|
|
$ |
1,345 |
|
|
|
|
|
|
|
|
|
|
|
(a) |
Other revenue under real estate primarily consisted of rental income from investment properties. |
|
|
(b) |
Other revenue under corporate and other primarily consisted of revenue from restaurant and marina businesses. |
|
|
(c) |
Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. |
|
|
|
Insurance |
|
|
Real |
|
|
Corporate/ |
|
|
Reclassification/ |
|
|
|
|
|
|
For Three Months Ended September 30, 2019 |
|
Operations |
|
|
Estate(a) |
|
|
Other(b) |
|
|
Elimination |
|
|
Consolidated |
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums earned |
|
$ |
54,434 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
54,434 |
|
|
Net investment income (loss) |
|
|
3,365 |
|
|
|
— |
|
|
|
461 |
|
|
|
(205 |
) |
|
|
3,621 |
|
|
Net realized investment (loss) gains |
|
|
(33 |
) |
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
(30 |
) |
|
Net unrealized investment gains |
|
|
533 |
|
|
|
— |
|
|
|
109 |
|
|
|
— |
|
|
|
642 |
|
|
Policy fee income |
|
|
811 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
811 |
|
|
Other |
|
|
186 |
|
|
|
2,317 |
|
|
|
1,341 |
|
|
|
(3,343 |
) |
|
|
501 |
|
|
Total revenue |
|
|
59,296 |
|
|
|
2,317 |
|
|
|
1,914 |
|
|
|
(3,548 |
) |
|
|
59,979 |
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and loss adjustment expenses |
|
|
27,327 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
27,327 |
|
|
Amortization of deferred policy acquisition costs |
|
|
9,556 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,556 |
|
|
Interest expense |
|
|
1 |
|
|
|
409 |
|
|
|
2,659 |
|
|
|
(162 |
) |
|
|
2,907 |
|
|
Depreciation and amortization |
|
|
29 |
|
|
|
627 |
|
|
|
261 |
|
|
|
(530 |
) |
|
|
387 |
|
|
Other |
|
|
7,978 |
|
|
|
1,292 |
|
|
|
5,669 |
|
|
|
(2,856 |
) |
|
|
12,083 |
|
|
Total expenses |
|
|
44,891 |
|
|
|
2,328 |
|
|
|
8,589 |
|
|
|
(3,548 |
) |
|
|
52,260 |
|
|
Income (loss) before income taxes |
|
$ |
14,405 |
|
|
$ |
(11 |
) |
|
$ |
(6,675 |
) |
|
$ |
— |
|
|
$ |
7,719 |
|
|
Total revenue from non-affiliates(c) |
|
$ |
59,296 |
|
|
$ |
1,910 |
|
|
$ |
1,466 |
|
|
|
|
|
|
|
|
|
|
|
(a) |
Other revenue under real estate primarily consisted of rental income from investment properties. |
|
|
(b) |
Other revenue under corporate and other primarily consisted of revenue from restaurant and marina businesses. |
|
|
(c) |
Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. |
|
|
|
Insurance |
|
|
Real |
|
|
Corporate/ |
|
|
Reclassification/ |
|
|
|
|
|
|
For Nine Months Ended September 30, 2020 |
|
Operations |
|
|
Estate(a) |
|
|
Other(b) |
|
|
Elimination |
|
|
Consolidated |
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums earned |
|
$ |
197,558 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
197,558 |
|
|
Net investment income (loss) |
|
|
5,459 |
|
|
|
3 |
|
|
|
(1,194 |
) |
|
|
(1,024 |
) |
|
|
3,244 |
|
|
Net realized investment losses |
|
|
(208 |
) |
|
|
— |
|
|
|
(424 |
) |
|
|
— |
|
|
|
(632 |
) |
|
Net unrealized investment losses |
|
|
(531 |
) |
|
|
— |
|
|
|
(50 |
) |
|
|
— |
|
|
|
(581 |
) |
|
Credit losses on investments |
|
|
(576 |
) |
|
|
|
|
|
|
(20 |
) |
|
|
|
|
|
|
(596 |
) |
|
Policy fee income |
|
|
2,571 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,571 |
|
|
Gain on involuntary conversion |
|
|
— |
|
|
|
36,969 |
|
|
|
— |
|
|
|
— |
|
|
|
36,969 |
|
|
Other |
|
|
880 |
|
|
|
7,362 |
|
|
|
2,400 |
|
|
|
(9,051 |
) |
|
|
1,591 |
|
|
Total revenue |
|
|
205,153 |
|
|
|
44,334 |
|
|
|
712 |
|
|
|
(10,075 |
) |
|
|
240,124 |
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and loss adjustment expenses |
|
|
119,664 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
119,664 |
|
|
Amortization of deferred policy acquisition costs |
|
|
35,568 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
35,568 |
|
|
Interest expense |
|
|
1 |
|
|
|
1,434 |
|
|
|
8,090 |
|
|
|
(679 |
) |
|
|
8,846 |
|
|
Depreciation and amortization |
|
|
86 |
|
|
|
1,862 |
|
|
|
1,263 |
|
|
|
(1,793 |
) |
|
|
1,418 |
|
|
Other |
|
|
25,710 |
|
|
|
4,080 |
|
|
|
18,425 |
|
|
|
(7,603 |
) |
|
|
40,612 |
|
|
Total expenses |
|
|
181,029 |
|
|
|
7,376 |
|
|
|
27,778 |
|
|
|
(10,075 |
) |
|
|
206,108 |
|
|
Income (loss) before income taxes |
|
$ |
24,124 |
|
|
$ |
36,958 |
|
|
$ |
(27,066 |
) |
|
$ |
— |
|
|
$ |
34,016 |
|
|
Total revenue (investment loss) from non-affiliates(c) |
|
$ |
205,153 |
|
|
$ |
42,907 |
|
|
$ |
(837 |
) |
|
|
|
|
|
|
|
|
|
|
(a) |
Other revenue under real estate primarily consisted of rental income from investment properties. |
|
|
(b) |
Other revenue under corporate and other primarily consisted of revenue from restaurant and marina businesses. |
|
|
(c) |
Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. |
|
|
|
Insurance |
|
|
Real |
|
|
Corporate/ |
|
|
Reclassification/ |
|
|
|
|
|
|
For Nine Months Ended September 30, 2019 |
|
Operations |
|
|
Estate(a) |
|
|
Other(b) |
|
|
Elimination |
|
|
Consolidated |
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums earned |
|
$ |
157,616 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
157,616 |
|
|
Net investment income (loss) |
|
|
9,381 |
|
|
|
— |
|
|
|
2,064 |
|
|
|
(320 |
) |
|
|
11,125 |
|
|
Net realized investment gains (losses) |
|
|
33 |
|
|
|
— |
|
|
|
(568 |
) |
|
|
— |
|
|
|
(535 |
) |
|
Net unrealized investment gains |
|
|
5,951 |
|
|
|
— |
|
|
|
1,310 |
|
|
|
— |
|
|
|
7,261 |
|
|
Policy fee income |
|
|
2,406 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,406 |
|
|
Other |
|
|
524 |
|
|
|
7,009 |
|
|
|
4,590 |
|
|
|
(10,753 |
) |
|
|
1,370 |
|
|
Total revenue |
|
|
175,911 |
|
|
|
7,009 |
|
|
|
7,396 |
|
|
|
(11,073 |
) |
|
|
179,243 |
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and loss adjustment expenses |
|
|
78,616 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
78,616 |
|
|
Amortization of deferred policy acquisition costs |
|
|
26,982 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26,982 |
|
|
Interest expense |
|
|
2 |
|
|
|
1,174 |
|
|
|
9,374 |
|
|
|
(422 |
) |
|
|
10,128 |
|
|
Depreciation and amortization |
|
|
82 |
|
|
|
1,878 |
|
|
|
791 |
|
|
|
(1,586 |
) |
|
|
1,165 |
|
|
Other |
|
|
22,842 |
|
|
|
3,866 |
|
|
|
17,392 |
|
|
|
(9,065 |
) |
|
|
35,035 |
|
|
Total expenses |
|
|
128,524 |
|
|
|
6,918 |
|
|
|
27,557 |
|
|
|
(11,073 |
) |
|
|
151,926 |
|
|
Income (loss) before income taxes |
|
$ |
47,387 |
|
|
$ |
91 |
|
|
$ |
(20,161 |
) |
|
$ |
— |
|
|
$ |
27,317 |
|
|
Total revenue from non-affiliates(c) |
|
$ |
175,911 |
|
|
$ |
5,787 |
|
|
$ |
6,088 |
|
|
|
|
|
|
|
|
|
|
|
(a) |
Other revenue under real estate primarily consisted of rental income from investment properties. |
|
|
(b) |
Other revenue under corporate and other primarily consisted of revenue from restaurant and marina businesses. |
|
|
(c) |
Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. |
The following table presents segment assets reconciled to the Company’s total assets in the consolidated balance sheets.
|
|
|
September 30, |
|
|
December 31, |
|
|
|
|
2020 |
|
|
2019 |
|
|
Segment: |
|
|
|
|
|
|
|
|
|
Insurance Operations |
|
$ |
738,141 |
|
|
$ |
663,280 |
|
|
Real Estate Operations |
|
|
130,138 |
|
|
|
93,727 |
|
|
Corporate and Other |
|
|
45,731 |
|
|
|
60,662 |
|
|
Consolidation and Elimination |
|
|
(26,197 |
) |
|
|
(15,060 |
) |
|
Total assets |
|
$ |
887,813 |
|
|
$ |
802,609 |
|
|