Segment Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Information

15. Segment Information

The insurance companies are managed 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 nine months ended September 30, 2021 and 2020:

Quarter Ended September 30, 2021 (Dollars in thousands)	Commercial Specialty			Specialty Property			Farm, Ranch & Stable		Reinsurance Operations			(1)	Total
Revenues:
Gross written premiums	$	95,734		$	30,504		$	18,500	$	29,565			$	174,303
Net written premiums	$	89,160		$	27,204		$	16,370	$	29,565			$	162,299
Net earned premiums	$	84,209		$	29,343		$	17,936	$	26,077			$	157,565
Other income (loss)		—			435			37		(58	)			414
Total revenues		84,209			29,778			17,973		26,019				157,979
Losses and Expenses:
Net losses and loss adjustment expenses		62,545			20,516			10,678		15,456				109,195
Acquisition costs and other underwriting expenses		30,257			12,127			7,267		9,631				59,282
Income (loss) from segments	$	(8,593	)	$	(2,865	)	$	28	$	932			$	(10,498	)
Unallocated Items:
Net investment income														9,344
Net realized investment loss														(310	)
Other loss														(25	)
Corporate and other operating expenses														(5,387	)
Interest expense														(2,596	)
Loss before income taxes														(9,472	)
Income tax benefit														1,759
Net loss													$	(7,713	)
Segment assets	$	904,050		$	201,589		$	134,854	$	305,107			$	1,545,600
Corporate assets														405,021
Total assets													$	1,950,621

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

Quarter Ended September 30, 2020 (Dollars in thousands)	Commercial Specialty		Specialty Property			Farm, Ranch & Stable			Reinsurance Operations		(1)	Total
Revenues:
Gross written premiums	$	74,971	$	34,730		$	19,443		$	14,605		$	143,749
Net written premiums	$	69,074	$	29,971		$	16,961		$	14,605		$	130,611
Net earned premiums	$	73,887	$	31,388		$	19,978		$	15,049		$	140,302
Other income		—		450			35			112			597
Total revenues		73,887		31,838			20,013			15,161			140,899
Losses and Expenses:
Net losses and loss adjustment expenses		42,879		34,430			14,649			5,190			97,148
Acquisition costs and other underwriting expenses		26,943		13,364			7,443			5,518			53,268
Income (loss) from segments	$	4,065	$	(15,956	)	$	(2,079	)	$	4,453		$	(9,517	)
Unallocated Items:
Net investment income													11,746
Net realized investment gains													7,323
Other loss													(55	)
Corporate and other operating expenses													(21,196	)
Interest expense													(3,620	)
Loss on extinguishment of debt													(3,060	)
Loss before income taxes													(18,379	)
Income tax benefit													3,209
Net loss												$	(15,170	)
Segment assets	$	752,002	$	207,831		$	137,697		$	269,771		$	1,367,301
Corporate assets													572,456
Total assets												$	1,939,757

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

Nine Months Ended September 30, 2021 (Dollars in thousands)	Commercial Specialty			Specialty Property		Farm, Ranch & Stable			Reinsurance Operations			(1)	Total
Revenues:
Gross written premiums	$	279,746		$	96,875	$	60,353		$	76,123			$	513,097
Net written premiums	$	256,007		$	86,652	$	51,853		$	76,123			$	470,635
Net earned premiums	$	240,505		$	89,826	$	54,037		$	66,305			$	450,673
Other income (loss)		—			1,323		111			(100	)			1,334
Total revenues		240,505			91,149		54,148			66,205				452,007
Losses and Expenses:
Net losses and loss adjustment expenses		167,598			50,296		33,640			39,382				290,916
Acquisition costs and other underwriting expenses		88,067			37,745		21,440			24,007				171,259
Income (loss) from segments	$	(15,160	)	$	3,108	$	(932	)	$	2,816			$	(10,168	)
Unallocated Items:
Net investment income														29,813
Net realized investment gains														7,342
Other loss														(47	)
Corporate and other operating expenses														(15,992	)
Interest expense														(7,887	)
Income before income taxes														3,061
Income tax benefit														1,118
Net income													$	4,179
Segment assets	$	904,050		$	201,589	$	134,854		$	305,107			$	1,545,600
Corporate assets														405,021
Total assets													$	1,950,621

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

Nine Months Ended September 30, 2020 (Dollars in thousands)	Commercial Specialty		Specialty Property			Farm, Ranch & Stable			Reinsurance Operations		(1)	Total
Revenues:
Gross written premiums	$	243,099	$	107,951		$	64,798		$	48,174		$	464,022
Net written premiums	$	219,437	$	93,053		$	56,323		$	48,174		$	416,987
Net earned premiums	$	211,329	$	99,147		$	57,691		$	58,450		$	426,617
Other income		—		1,306			107			96			1,509
Total revenues		211,329		100,453			57,798			58,546			428,126
Losses and Expenses:
Net losses and loss adjustment expenses		109,191		65,619			37,698			29,584			242,092
Acquisition costs and other underwriting expenses		79,452		41,357			22,687			19,762			163,258
Income (loss) from segments	$	22,686	$	(6,523	)	$	(2,587	)	$	9,200		$	22,776
Unallocated Items:
Net investment income													19,516
Net realized investment loss													(22,332	)
Other loss													(36	)
Corporate and other operating expenses													(34,037	)
Interest expense													(13,197	)
Loss on extinguishment of debt													(3,060	)
Loss before income taxes													(30,370	)
Income tax benefit													8,173
Net loss												$	(22,197	)
Segment assets	$	752,002	$	207,831		$	137,697		$	269,771		$	1,367,301
Corporate assets													572,456
Total assets												$	1,939,757

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