• Filing Date: 2017-02-22
  • Form Type: 10-K
  • Description: Annual report
v3.6.0.2
Segment Information
12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment Information

Note 16 — Segment Information

The Company’s businesses consist of four operating divisions: property and casualty insurance, reinsurance, investment real estate and information technology. The Company’s chief executive officer who serves as the Company’s chief operating decision maker evaluates each division’s financial and operating performances based on revenue and operating income. The Company aggregates its operating divisions into segments based on organizational structure and revenue source.

Due to their economic characteristics, the Company’s property and casualty insurance division and reinsurance division are grouped together into one reportable segment under insurance operations. For the years ended December 31, 2016, 2015 and 2014, revenues from the Company’s insurance operations before intracompany elimination represented 95.5%, 97.5% and 97.2%, respectively, of total revenues of all operating segments. At December 31, 2016, 2015 and 2014, insurance operations’ total assets represented 87.9%, 91.8% and 94.1%, respectively, of the combined assets of all operating segments. There was no other operating division representing ten percent or more of the Company’s total revenues or combined assets. In addition, there was no other operating division representing ten percent or more, in absolute amount, of the combined profits of all operating divisions reporting a profit and combined losses of all operating divisions reporting a loss. See Note 1 — “Nature of Operations” for a description of the Company’s insurance operations. The following tables present segment information reconciled to the Company’s consolidated statements of income. Intersegment transactions are not eliminated from segment results. However, intracompany transactions are eliminated in segment results below.

 

     Insurance      Corporate/      Reclassification/         
For the Year Ended December 31, 2016    Operations      Other(a)      Elimination      Consolidated  

Revenue:

           

Net premiums earned

   $ 243,627       $ —         $ —         $ 243,627   

Net investment income (loss)

     8,440         1,180         (533      9,087   

Net realized investment gains

     2,450         151         —           2,601   

Net other-than-temporary impairment losses

     (2,467      (15      —           (2,482

Policy fee income

     3,914         —           —           3,914   

Gain on repurchases of convertible senior notes

     —           153         —           153   

Gain on bargain purchase

     —           2,071         —           2,071   

Gain on remeasurement of previously held interest

     —           4,005         —           4,005   

Other

     684         8,609         (7,823      1,470   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenue

     256,648         16,154         (8,356      264,446   
  

 

 

    

 

 

    

 

 

    

 

 

 

Expenses:

           

Losses and loss adjustment expenses

     124,667         —           —           124,667   

Amortization of deferred policy acquisition costs

     37,868         —           —           37,868   

Interest expense

     —           11,079         —           11,079   

Depreciation and amortization

     158         1,722         (608      1,272   

Other operating expenses

     31,351         19,101         (7,748      42,704   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses

     194,044         31,902         (8,356      217,590   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes

   $ 62,604       $ (15,748    $ —         $ 46,856   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     Insurance      Corporate/      Reclassification/         
For the Year Ended December 31, 2015    Operations      Other(a)      Elimination      Consolidated  

Revenue:

           

Net premiums earned

   $ 282,506       $ —         $ —         $ 282,506   

Net investment income (loss)

     6,841         (1,966      (897      3,978   

Net realized investment (losses) gains

     (716      108         —           (608

Net other-than-temporary impairment losses

     (4,606      (75      —           (4,681

Policy fee income

     3,496         —           —           3,496   

Other

     564         7,304         (6,607      1,261   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenue

     288,085         5,371         (7,504      285,952   
  

 

 

    

 

 

    

 

 

    

 

 

 

Expenses:

           

Losses and loss adjustment expenses

     87,224         —           —           87,224   

Amortization of deferred policy acquisition costs

     36,224         —           —           36,224   

Interest expense

     —           10,754         —           10,754   

Depreciation and amortization

     185         1,523         (370      1,338   

Other operating expenses

     30,665         20,689         (7,134      44,220   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses

     154,298         32,966         (7,504      179,760   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes

   $ 133,787       $ (27,595    $ —         $ 106,192   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     Insurance      Corporate/      Reclassification/         
For the Year Ended December 31, 2014    Operations      Other(a)      Elimination      Consolidated  

Revenue:

           

Net premiums earned

   $ 252,065       $ —         $ —         $ 252,065   

Net investment income (loss)

     5,098         964         (1,174      4,888   

Net realized investment gains

     4,426         309         —           4,735   

Net other-than-temporary impairment losses

     (107      —           —           (107

Policy fee income

     2,820         —           —           2,820   

Other

     948         7,618         (6,859      1,707   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenue

     265,250         8,891         (8,033      266,108   
  

 

 

    

 

 

    

 

 

    

 

 

 

Expenses:

           

Losses and loss adjustment expenses

     79,468         —           —           79,468   

Amortization of deferred policy acquisition costs

     32,918         —           —           32,918   

Interest expense

     —           10,453         —           10,453   

Depreciation and amortization

     158         1,548         (402      1,304   

Other operating expenses

     30,591         18,043         (7,631      41,003   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses

     143,135         30,044         (8,033      165,146   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes

   $ 122,115       $ (21,153    $ —         $ 100,962   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) Other revenue under corporate and other primarily consisted of rental income from investment properties and revenue from restaurant and marina businesses.

The following table presents segment assets reconciled to the Company’s total assets in the consolidated balance sheets.

 

     December 31,  
     2016      2015  

Segment:

     

Insurance Operations

   $ 651,927       $ 591,101   

Corporate and Other

     116,849         88,412   

Consolidation and Elimination

     (98,712      (42,527
  

 

 

    

 

 

 

Total assets

   $ 670,064       $ 636,986