Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

NOTE 2.  SEGMENT INFORMATION

We report our results of operations consistent with the manner in which our Chief Operating Decision Maker reviews the business to assess performance through our reporting segments: U.S. Insurance, International Insurance (“Int’l Insurance”), GlobalRe and Corporate. 

We classify our business into three underwriting segments: U.S. Insurance, Int’l Insurance and GlobalRe.  Both the U.S. Insurance and Int’l Insurance reporting segments are each comprised of three operating segments: Marine, P&C and Professional Liability.

We evaluate the performance of each of the underwriting segments based on underwriting results.  Underwriting results are measured based on Underwriting profit or loss and the related Combined ratio, which are both non-GAAP measures of underwriting profitability.   Underwriting profit (loss) is calculated from Net earned premiums less the sum of Net losses and LAE, Commission expenses, Other operating expenses and Other underwriting income (expense).  The Combined ratio is derived by dividing the sum of Net losses and LAE, Commission expenses, Other operating expenses and Other underwriting income (expense) by Net earned premiums.  A Combined ratio of less than 100% indicates an underwriting profit and greater than 100% indicates an underwriting loss.  Our underwriting performance is evaluated separately from the rest of our operations.  The performance of our investment portfolios, our liquidity and capital resource needs, our foreign currency exposure and our tax planning strategies are evaluated on a consolidated basis within our Corporate segment.

The following tables set forth the financial data by segment for the years ended December 31, 2016, 2015 and 2014:

	Year Ended December 31, 2016
	U.S.			Int'l
amounts in thousands	Insurance			Insurance			GlobalRe			Corporate (1)			Total
Net earned premiums	$	629,308		$	307,416		$	163,621		$	—		$	1,100,345
Net losses and LAE		(397,860	)		(178,284	)		(89,304	)		—			(665,448	)
Commission expenses		(70,812	)		(61,703	)		(34,008	)		1,478			(165,045	)
Other operating expenses		(128,108	)		(86,395	)		(19,593	)		—			(234,096	)
Other underwriting income (expense)		1,092			—			522			(1,478	)		136
Underwriting profit (loss)	$	33,620		$	(18,966	)	$	21,238		$	—		$	35,892
Net investment income											79,451			79,451
Net realized gains (losses)											9,036			9,036
Interest expense											(15,435	)		(15,435	)
Other income (loss)											8,565			8,565
Income before income taxes	$	33,620		$	(18,966	)	$	21,238		$	81,617		$	117,509
Income tax (expense) benefit											(34,783	)		(34,783	)
Net income (loss)													$	82,726
Losses and LAE ratio		63.2	%		58.0	%		54.6	%					60.5	%
Commission expense ratio		11.3	%		20.1	%		20.8	%					15.0	%
Other operating expense ratio (2)		20.2	%		28.1	%		11.6	%					21.2	%
Combined ratio		94.7	%		106.2	%		87.0	%					96.7	%

(1) - Includes Corporate segment intercompany eliminations.

(2) - Includes Other operating expenses and Other underwriting income (expense).

	Year Ended December 31, 2015
	U.S.			Int'l
amounts in thousands	Insurance			Insurance			GlobalRe			Corporate (1)			Total
Net earned premiums	$	555,836		$	259,960		$	168,291		$	—		$	984,087
Net losses and LAE		(343,497	)		(134,702	)		(94,399	)		—			(572,598	)
Commission expenses		(56,319	)		(43,676	)		(32,240	)		2,258			(129,977	)
Other operating expenses		(131,407	)		(75,867	)		(16,242	)		—			(223,516	)
Other underwriting income (expense)		1,690			—			690			(2,258	)		122
Underwriting profit (loss)	$	26,303		$	5,715		$	26,100		$	—		$	58,118
Net investment income											68,718			68,718
Net realized gains (losses)											6,675			6,675
Interest expense											(15,424	)		(15,424	)
Other income (loss)											(613	)		(613	)
Income before income taxes	$	26,303		$	5,715		$	26,100		$	59,356		$	117,474
Income tax (expense) benefit											(36,417	)		(36,417	)
Net income (loss)													$	81,057
Losses and LAE ratio		61.8	%		51.8	%		56.1	%					58.2	%
Commission expense ratio		10.1	%		16.8	%		19.2	%					13.2	%
Other operating expense ratio (2)		23.4	%		29.2	%		9.2	%					22.7	%
Combined ratio		95.3	%		97.8	%		84.5	%					94.1	%

(1) - Includes Corporate segment intercompany eliminations.

(2) - Includes Other operating expenses and Other underwriting income (expense).

	Year Ended December 31, 2014
	U.S.			Int'l
amounts in thousands	Insurance			Insurance			GlobalRe			Corporate (1)			Total
Net earned premiums	$	504,289		$	243,485		$	188,121		$	—		$	935,895
Net losses and LAE		(311,839	)		(115,079	)		(118,311	)		—			(545,229	)
Commission expenses		(49,840	)		(44,426	)		(33,429	)		2,167			(125,528	)
Other operating expenses		(115,817	)		(65,275	)		(15,733	)		—			(196,825	)
Other underwriting income (expense)		2,241			32			489			(2,167	)		595
Underwriting profit (loss)	$	29,034		$	18,737		$	21,137		$	—		$	68,908
Net investment income											64,168			64,168
Net realized gains (losses)											12,812			12,812
Interest expense											(15,413	)		(15,413	)
Other income (loss)											10,061			10,061
Income (loss) before income taxes	$	29,034		$	18,737		$	21,137		$	71,628		$	140,536
Income tax (expense) benefit											(45,207	)		(45,207	)
Net income (loss)													$	95,329
Losses and LAE ratio		61.8	%		47.3	%		62.9	%					58.3	%
Commission expense ratio		9.9	%		18.2	%		17.8	%					13.4	%
Other operating expense ratio (2)		22.5	%		26.8	%		8.1	%					20.9	%
Combined ratio		94.2	%		92.3	%		88.8	%					92.6	%

(1) - Includes Corporate segment intercompany eliminations.

(2) - Includes Other operating expenses and Other underwriting income (expense).

The following tables provide additional financial data by operating segment for the years ended December 31, 2016, 2015 and 2014:

	Year Ended December 31, 2016
amounts  in  thousands	Gross written premiums		Cededwritten premiums			Net written premiums		Net earned premiums
U.S. Insurance
Marine	$	169,405	$	(70,858	)	$	98,547	$	100,132
P&C		631,562		(135,888	)		495,674		453,673
Professional Liability		118,428		(29,081	)		89,347		75,503
Total	$	919,395	$	(235,827	)	$	683,568	$	629,308
Int'l Insurance
Marine	$	183,228	$	(40,092	)	$	143,136	$	141,593
P&C		181,094		(69,606	)		111,488		89,455
Professional Liability		120,149		(28,806	)		91,343		76,368
Total	$	484,471	$	(138,504	)	$	345,967	$	307,416
GlobalRe	$	165,045	$	(8,356	)	$	156,689	$	163,621
Total	$	1,568,911	$	(382,687	)	$	1,186,224	$	1,100,345

	Year Ended December 31, 2015
amounts  in  thousands	Gross written premiums		Ceded written premiums			Net written premiums		Net earned premiums
U.S. Insurance
Marine	$	158,124	$	(61,916	)	$	96,208	$	96,082
P&C		596,673		(152,168	)		444,505		401,408
Professional Liability		110,984		(54,691	)		56,293		58,346
Total	$	865,781	$	(268,775	)	$	597,006	$	555,836
Int'l Insurance
Marine	$	183,707	$	(36,515	)	$	147,192	$	149,256
P&C		130,729		(67,722	)		63,007		55,320
Professional Liability		97,511		(29,768	)		67,743		55,384
Total	$	411,947	$	(134,005	)	$	277,942	$	259,960
GlobalRe	$	175,774	$	(6,862	)	$	168,912	$	168,291
Total	$	1,453,502	$	(409,642	)	$	1,043,860	$	984,087

	Year Ended December 31, 2014
amounts  in  thousands	Gross written premiums		Ceded written premiums			Net written premiums		Net earned premiums
U.S. Insurance
Marine	$	154,233	$	(46,685	)	$	107,548	$	105,650
P&C		543,045		(169,953	)		373,092		314,833
Professional Liability		109,830		(38,345	)		71,485		83,806
Total	$	807,108	$	(254,983	)	$	552,125	$	504,289
Int'l Insurance
Marine	$	190,787	$	(47,805	)	$	142,982	$	141,097
P&C		158,139		(98,087	)		60,052		62,520
Professional Liability		75,978		(26,029	)		49,949		39,868
Total	$	424,904	$	(171,921	)	$	252,983	$	243,485
GlobalRe	$	200,341	$	(5,311	)	$	195,030	$	188,121
Total	$	1,432,353	$	(432,215	)	$	1,000,138	$	935,895

The assets of the Company are reviewed in total by management for purposes of decision making.