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Segment Reporting
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting

17. 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:

ReinsuranceYears Ended December 31,
(Dollars in thousands)202020192018
Gross written premiums$5,265,698 $4,600,373$4,569,582
Net written premiums4,632,265 3,923,7993,519,704
Premiums earned$4,484,693 $3,796,136$3,386,386
Incurred losses and LAE3,209,160 2,692,6803,811,747
Commission and brokerage1,119,966 1,027,286923,902
Other underwriting expenses119,320 110,03297,927
Underwriting gain (loss)$36,247 $(33,862)$(1,447,190)

InsuranceYears Ended December 31,
(Dollars in thousands)202020192018
Gross written premiums$2,691,340 $2,452,691$2,004,093
Net written premiums2,006,435 1,851,1501,512,158
Premiums earned$1,921,883 $1,692,899$1,452,672
Incurred losses and LAE1,398,984 1,136,442999,271
Commission and brokerage253,389 242,767217,812
Other underwriting expenses281,713 240,869195,420
Underwriting gain (loss)$(12,203) $72,821$40,169

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:

Years Ended December 31,
(Dollars in thousands)202020192018
Underwriting gain (loss)$24,044 $38,959$(1,407,021)
Net investment income375,906 356,211314,381
Net realized capital gains (losses)49,804 419,367(185,356)
Corporate expense(15,985) (13,063)(11,034)
Interest, fee and bond issue cost amortization expense(35,659) (34,931)(30,611)
Other income (expense) (14,579) (1,589)(9,568)
Income (loss) before taxes$383,531 $764,955$(1,329,209)

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:

Years Ended December 31,
(Dollars in thousands)202020192018
Canada gross written premiums$320,665$214,594$173,530

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

Approximately 20.1%, 25.8% and 21.1% of the Company’s gross written premiums in 2020, 2019 and 2018, respectively, were sourced through the Company’s largest intermediary.