Segment Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

14. Segment Information

The Company manages its business through four business segments.  Commercial Specialty offers specialty property and casualty products designed for product lines such as Small Business Binding Authority, Property Brokerage, and Programs. Specialty Property offers specialty personal lines property and casualty insurance products.  Farm, Ranch, & Stable offers specialized property and casualty coverage including Commercial Farm Auto and Excess/Umbrella Coverage for the agriculture industry as well as specialized insurance products for the equine mortality and equine major medical industry.  Reinsurance Operations provides reinsurance solutions through brokers and primary writers including insurance and reinsurance companies.

The following are tabulations of business segment information for the quarters and six months ended June 30, 2020 and 2019:

Quarter Ended June 30, 2020 (Dollars in thousands)	Commercial Specialty		(1)	Specialty Property		(1)	Farm, Ranch, & Stable			(1)	Reinsurance Operations		(2)	Total
Revenues:
Gross written premiums	$	87,297		$	37,978		$	23,222			$	16,052		$	164,549
Net written premiums	$	77,880		$	33,075		$	20,257			$	16,052		$	147,264
Net earned premiums	$	69,728		$	33,543		$	19,030			$	19,546		$	141,847
Other income		—			429			36				279			744
Total revenues		69,728			33,972			19,066				19,825			142,591
Losses and Expenses:
Net losses and loss adjustment expenses		28,877			13,691			13,439				11,290			67,297
Acquisition costs and other underwriting expenses		26,516			13,761			7,606				5,695			53,578
Income from segments	$	14,335		$	6,520		$	(1,979	)		$	2,840		$	21,716
Unallocated Items:
Net investment income (loss)															(2,359	)
Net realized investment gains															38,507
Other income															22
Corporate and other operating expenses															(8,618	)
Interest expense															(4,712	)
Income before income taxes															44,556
Income tax expense															(7,005	)
Net income															37,551
Segment assets	$	753,310		$	203,561		$	140,658			$	277,242		$	1,374,771
Corporate assets															738,377
Total assets														$	2,113,148

(1) Includes business ceded to the Company’s Reinsurance Operations.  This quota share agreement was cancelled effective January 1, 2018.

(2) External business only, excluding business assumed from affiliates.

Quarter Ended June 30, 2019 (Dollars in thousands)	Commercial Specialty		(1)	Specialty Property		(1)	Farm, Ranch, & Stable			(1)	Reinsurance Operations			(2)	Total
Revenues:
Gross written premiums	$	77,079		$	46,486		$	23,697			$	32,059			$	179,321
Net written premiums	$	67,107		$	39,828		$	20,075			$	32,059			$	159,069
Net earned premiums	$	56,705		$	35,567		$	17,350			$	18,579			$	128,201
Other income (loss)		—			498			32				(8	)			522
Total revenues		56,705			36,065			17,382				18,571				128,723
Losses and Expenses:
Net losses and loss adjustment expenses		32,691			11,111			13,126				13,147				70,075
Acquisition costs and other underwriting expenses		22,890			14,939			7,345				5,360				50,534
Income (loss) from segments	$	1,124		$	10,015		$	(3,089	)		$	64			$	8,114
Unallocated Items:
Net investment income																13,826
Net realized investment gain																3,590
Corporate and other operating expenses																(4,639	)
Interest expense																(5,042	)
Income before income taxes																15,849
Income tax expense																(1,186	)
Net income																14,663
Segment assets	$	698,466		$	230,351		$	140,154			$	346,655			$	1,415,626
Corporate assets																599,846
Total assets															$	2,015,472

(1) Includes business ceded to the Company’s Reinsurance Operations.  This quota share agreement was cancelled effective January 1, 2018.

(2) External business only, excluding business assumed from affiliates.

Six Months Ended June 30, 2020 (Dollars in thousands)	Commercial Specialty		(1)	Specialty Property		(1)	Farm, Ranch, & Stable			(1)	Reinsurance Operations			(2)	Total
Revenues:
Gross written premiums	$	168,128		$	73,221		$	45,355			$	33,569			$	320,273
Net written premiums	$	150,363		$	63,082		$	39,362			$	33,569			$	286,376
Net earned premiums	$	137,442		$	67,759		$	37,713			$	43,401			$	286,315
Other income (loss)		—			856			72				(16	)			912
Total revenues		137,442			68,615			37,785				43,385				287,227
Losses and Expenses:
Net losses and loss adjustment expenses		66,312			31,189			23,049				24,394				144,944
Acquisition costs and other underwriting expenses		52,509			27,993			15,244				14,244				109,990
Income (loss) from segments	$	18,621		$	9,433		$	(508	)		$	4,747			$	32,293
Unallocated Items:
Net investment income																7,770
Net realized investment loss																(29,655	)
Other income																19
Corporate and other operating expenses																(12,841	)
Interest expense																(9,577	)
Loss before income taxes																(11,991	)
Income tax benefit																4,964
Net loss																(7,027	)
Segment assets	$	753,310		$	203,561		$	140,658			$	277,242			$	1,374,771
Corporate assets																738,377
Total assets															$	2,113,148

(1) Includes business ceded to the Company’s Reinsurance Operations.  This quota share agreement was cancelled effective January 1, 2018.

(2) External business only, excluding business assumed from affiliates.

Six Months Ended June 30, 2019 (Dollars in thousands)	Commercial Specialty		(1)	Specialty Property		(1)	Farm, Ranch, & Stable			(1)	Reinsurance Operations		(2)	Total
Revenues:
Gross written premiums	$	141,292		$	86,160		$	44,462			$	49,608		$	321,522
Net written premiums	$	122,277		$	73,040		$	37,567			$	49,601		$	282,485
Net earned premiums	$	112,346		$	70,186		$	34,472			$	33,286		$	250,290
Other income		—			941			62				7			1,010
Total revenues		112,346			71,127			34,534				33,293			251,300
Losses and Expenses:
Net losses and loss adjustment expenses		54,342			31,614			21,264				21,176			128,396
Acquisition costs and other underwriting expenses		45,702			29,592			14,627				10,356			100,277
Income (loss) from segments	$	12,302		$	9,921		$	(1,357	)		$	1,761		$	22,627
Unallocated Items:
Net investment income															21,045
Net realized investment gain															13,980
Corporate and other operating expenses															(7,844	)
Interest expense															(10,065	)
Income before income taxes															39,743
Income tax expense															(5,480	)
Net income															34,263
Segment assets	$	698,466		$	230,351		$	140,154			$	346,655		$	1,415,626
Corporate assets															599,846
Total assets														$	2,015,472

(1) Includes business ceded to the Company’s Reinsurance Operations.  This quota share agreement was cancelled effective January 1, 2018.

(2) External business only, excluding business assumed from affiliates.