Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

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