• Filing Date: 2018-03-07
  • Form Type: 10-K
  • Description: Annual report
v3.8.0.1
Segment Information
12 Months Ended
Dec. 31, 2017
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, 2017, 2016 and 2015, revenues from the Company’s insurance operations before intracompany elimination represented 96.2%, 95.5% and 97.5%, respectively, of total revenues of all operating segments. At December 31, 2017, 2016 and 2015, insurance operations’ total assets represented 87.1%, 87.9% and 91.8%, respectively, of the combined assets of all operating segments. 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.

 

For the Year Ended December 31, 2017    Insurance
Operations
    Real
Estate(a)
    Corporate/
Other(b)
    Reclassification/
Elimination
    Consolidated  

Revenue:

          

Net premiums earned

   $ 224,618     $ —       $ —       $ —       $ 224,618  

Net investment income

     9,898       6       2,974       (1,439     11,439  

Net realized investment gains

     3,978       —         368       —         4,346  

Net unrealized investment gains

     —         —         92       —         92  

Net other-than-temporary impairment losses

     (1,258     —         (209     —         (1,467

Policy fee income

     3,622       —         —         —         3,622  

Other

     693       7,046       4,417       (10,400     1,756  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     241,551       7,052       7,642       (11,839     244,406  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Expenses:

          

Losses and loss adjustment expenses

     165,629       —         —         —         165,629  

Amortization of deferred policy acquisition costs

     35,663       —         —         —         35,663  

Interest expense

     —         1,250       15,704       (187     16,767  

Loss on repurchases of senior notes

     —         —         743       —         743  

Depreciation and amortization

     128       2,121       939       (1,950     1,238  

Other

     27,547       4,022       18,123       (9,702     39,990  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

     228,967       7,393       35,509       (11,839     260,030  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

   $ 12,584     $ (341   $ (27,867   $ —       $ (15,624
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue from non-affiliates(c)

   $ 241,551     $ 5,525     $ 6,958      

 

(a) Other revenue under real estate primarily consisted of rental income from investment properties.
(b) Other revenue under corporate and other primarily consisted of revenue from restaurant and marina businesses.
(c) Represents amounts before reclassification to conform with an insurance company’s presentation.

 

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

Revenue:

           

Net premiums earned

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

Net investment income (loss)

     8,440       18        1,162       (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       4,505        4,104       (7,823     1,470  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total revenue

     256,648       10,599        5,555       (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

     —         561        10,518       —         11,079  

Depreciation and amortization

     158       814        908       (608     1,272  

Other operating expenses

     31,351       2,921        16,180       (7,748     42,704  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total expenses

     194,044       4,296        27,606       (8,356     217,590  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

   $ 62,604     $ 6,303      $ (22,051   $ —       $ 46,856  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total revenue from non-affiliates(c)

   $ 256,648     $ 9,072      $ 5,470      

 

(a) Other revenue under real estate primarily consisted of rental income from investment properties.
(b) Other revenue under corporate and other primarily consisted of revenue from restaurant and marina businesses.
(c) Represents amounts before reclassification to conform with an insurance company’s presentation.

 

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

Revenue:

           

Net premiums earned

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

Net investment income (loss)

     6,841       5        (1,971     (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       4,095        3,209       (6,607     1,261  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total revenue

     288,085       4,100        1,271       (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

     —         15        10,739       —         10,754  

Depreciation and amortization

     185       603        920       (370     1,338  

Other operating expenses

     30,665       2,822        17,867       (7,134     44,220  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total expenses

     154,298       3,440        29,526       (7,504     179,760  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

   $ 133,787     $ 660      $ (28,255   $ —       $ 106,192  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total revenue from non-affiliates(c)

   $ 288,085     $ 2,612      $ 1,104      

 

(a) Other revenue under real estate primarily consisted of rental income from investment properties.
(b) Other revenue under corporate and other primarily consisted of revenue from restaurant and marina businesses.
(c) Represents amounts before reclassification to conform with an insurance company’s presentation.

 

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

 

     December 31,  
     2017      2016  

Segment:

     

Insurance Operations

   $ 652,754      $ 651,927  

Real Estate Operations

     80,152        71,226  

Corporate and Other

     127,822        45,623  

Consolidation and Elimination

     (18,464      (98,712
  

 

 

    

 

 

 

Total assets

   $ 842,264      $ 670,064