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Segment Reporting
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment Reporting

13. SEGMENT REPORTING

The Reinsurance operation writes worldwide property and casualty reinsurance and specialty lines of business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies. Business is written in the United States as well as through branches in Canada and Singapore. The Insurance operation writes property and casualty insurance directly and through brokers, surplus lines brokers and general agents within the United States.

These segments are managed independently, but conform with corporate guidelines with respect to pricing, risk management, control of aggregate catastrophe exposures, capital, investments and support operations. Management generally monitors and evaluates the financial performance of these operating segments based upon their underwriting results.

Underwriting results include earned premium less losses and LAE incurred, commission and brokerage expenses and other underwriting expenses. We measure our underwriting results using ratios, in particular loss, commission and brokerage and other underwriting expense ratios, which, respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned.

The Company does not maintain separate balance sheet data for its operating segments. Accordingly, the Company does not review and evaluate the financial results of its operating segments based upon balance sheet data.

The following tables present the underwriting results for the operating segments for the periods indicated:

Three Months EndedSix Months Ended
ReinsuranceJune 30,June 30,
(Dollars in thousands)2020201920202019
Gross written premiums$1,124,895$1,014,434$2,433,089$2,167,545
Net written premiums992,750837,9132,106,9841,813,912
Premiums earned$1,062,833$958,222$2,069,868$1,855,500
Incurred losses and LAE630,658581,2811,313,3661,134,995
Commission and brokerage292,286258,563553,187495,528
Other underwriting expenses26,59925,36056,44649,416
Underwriting gain (loss)$113,290$93,018$146,869$175,561

Three Months EndedSix Months Ended
InsuranceJune 30,June 30,
(Dollars in thousands)2020201920202019
Gross written premiums$713,352$673,603$1,380,123$1,205,374
Net written premiums508,801481,9521,033,275898,196
Premiums earned$476,127$417,401$963,097$790,577
Incurred losses and LAE345,174261,941691,979504,323
Commission and brokerage63,41358,212125,616109,465
Other underwriting expenses67,53257,991138,893112,317
Underwriting gain (loss)$8$39,257$6,609$64,472

The following table reconciles the underwriting results for the operating segments to income (loss) before taxes as reported in the consolidated statements of operations and comprehensive income (loss) for the periods indicated:

Three Months EndedSix Months Ended
June 30,June 30,
(Dollars in thousands)2020201920202019
Underwriting gain (loss)$113,298$132,275$153,478$240,033
Net investment income35,15390,709109,354175,243
Net realized capital gains (losses)(479,360)142,563(222,493)277,619
Corporate expense(3,514)(2,519)(7,235)(4,170)
Interest, fee and bond issue cost amortization expense(6,922)(9,684)(14,382)(19,512)
Other income (expense) (5,122)(5,055)(9,620)(5,785)
Income (loss) before taxes$(346,467)$348,289$9,102$663,428

The Company produces business in the U.S. and internationally. The net income deriving from assets residing in the individual foreign countries in which the Company writes business are not identifiable in the Company’s financial records. Based on gross written premium, the table below presents the largest country, other than the U.S., in which the Company writes business, for the periods indicated:

Three Months EndedSix Months Ended
June 30,June 30,
(Dollars in thousands)2020201920202019
Canada gross written premiums$71,021$47,206$134,658$86,256

No other country represented more than 5% of the Company’s revenues.