• Filing Date: 2019-03-08
  • Form Type: 10-K
  • Description: Annual report
v3.10.0.1
Segment Information
12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Segment Information
Note 17 — Segment
Information
The Company identifies its operating divisions based on organizational structure and revenue source. Currently, the Company has three reportable segments: insurance operations, real estate operations, and corporate and other. 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. The real estate operations segment includes companies engaged in operating commercial properties the Company owns for investment purposes or for use in its own operations. The corporate and other segment represents the activities of the holding companies, the information technology division, and other companies that do not meet the quantitative thresholds for a reportable segment. The determination of segments may change over time due to changes in operational emphasis, revenues, and results of operations. The Company’s chief executive officer, who serves as the Company’s chief operating decision maker, evaluates each division’s financial and operating performance based on revenue and operating income.
For the years ended December 31, 2018, 2017 and 2016, revenues from the Company’s insurance operations before intracompany elimination represented 95.0%, 96.2% and 95.5%, respectively, of total revenues of all operating segments. At December 31, 2018, 2017 and 2016, insurance operations’ total assets represented 85.9%, 87.1% and 87.9%, 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.
 
 
 
Insurance
Operations
 
 
Real
Estate(a)
 
 
Corporate/
Other(b)
 
 
Reclassification/
Elimination
 
 
Consolidated
 
For the Year Ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
$
213,422
 
 
$
 
 
$
 
 
$
 
 
$
213,422
 
Net investment income
 
 
10,862
 
 
 
1
 
 
 
5,554
 
 
 
164
 
 
 
16,581
 
Net realized investment gains
 
 
4,639
 
 
 
 
 
 
1,544
 
 
 
 
 
 
6,183
 
Net unrealized investment losses
 
 
(8,688
)
 
 
 
 
 
(1,514
)
 
 
 
 
 
(10,202
)
Net other-than-temporary impairment losses
 
 
 
 
 
 
 
 
(80
)
 
 
 
 
 
(80
)
Policy fee income
 
 
3,389
 
 
 
 
 
 
 
 
 
 
 
 
3,389
 
Other
 
 
583
 
 
 
9,324
 
 
 
4,999
 
 
 
(12,907
)
 
 
1,999
 
Total revenue
 
 
224,207
 
 
 
9,325
 
 
 
10,503
 
 
 
(12,743
)
 
 
231,292
 
Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Losses and loss adjustment expenses
 
 
109,328
 
 
 
 
 
 
 
 
 
 
 
 
109,328
 
Amortization of deferred policy acquisition costs
 
 
35,204
 
 
 
 
 
 
 
 
 
 
 
 
35,204
 
Interest expense
 
 
1
 
 
 
1,568
 
 
 
17,008
 
 
 
(481
)
 
 
18,096
 
Depreciation and amortization
 
 
125
 
 
 
2,373
 
 
 
1,011
 
 
 
(2,140
)
 
 
1,369
 
Other
 
 
25,797
 
 
 
4,254
 
 
 
20,464
 
 
 
(10,122
)
 
 
40,393
 
Total expenses
 
 
170,455
 
 
 
8,195
 
 
 
38,483
 
 
 
(12,743
)
 
 
204,390
 
Income (loss) before income taxes
 
$
53,752
 
 
$
1,130
 
 
$
(27,980
)
 
$
 
 
$
26,902
 
Total revenue from non-affiliates(c)
 
$
224,207
 
 
$
7,718
 
 
$
9,331
 
 
 
 
 
 
 
 
 
 
(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.
 
 
 
Insurance
Operations
 
 
Real
Estate(a)
 
 
Corporate/
Other(b)
 
 
Reclassification/
Elimination
 
 
Consolidated
 
For the Year Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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.
 
 
 
Insurance
Operations
 
 
Real
Estate(a)
 
 
Corporate/
Other(b)
 
 
Reclassification/
Elimination
 
 
Consolidated
 
For the Year Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premiums earned
 
$
243,627
 
 
$
 
 
$
 
 
$
 
 
$
243,627
 
Net investment income
 
 
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.
 
The following table presents segment assets reconciled to the Company’s total assets in the consolidated balance sheets.

 
 
 
December 31,
 
 
 
2018
 
 
2017
 
Segment:
 
 
 
 
 
 
 
 
Insurance Operations
 
$
615,983
 
 
$
652,754
 
Real Estate Operations
 
 
83,828
 
 
 
80,152
 
Corporate and Other
 
 
146,651
 
 
 
127,822
 
Consolidation and Elimination
 
 
(13,599
)
 
 
(18,464
)
Total assets
 
$
832,863
 
 
$
842,264