• Filing Date: 2020-03-06
  • Form Type: 10-K
  • Description: Annual report
v3.19.3.a.u2
Segment Information
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment Information

Note 16 -- 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, 2019, 2018 and 2017, revenues from the Company’s insurance operations before intracompany elimination represented 95.0%, 95.0% and 96.2%, respectively, of total revenues of all operating segments. At December 31, 2019 and 2018, insurance operations’ total assets represented 85.5% and 85.9%, 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, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net premiums earned

 

$

216,314

 

 

$

 

 

$

 

 

$

 

 

$

216,314

 

Net investment income

 

 

12,230

 

 

 

1

 

 

 

2,348

 

 

 

(937

)

 

 

13,642

 

Net realized investment gains (losses)

 

 

286

 

 

 

 

 

 

(540

)

 

 

 

 

 

(254

)

Net unrealized investment gains

 

 

6,565

 

 

 

 

 

 

1,385

 

 

 

 

 

 

7,950

 

Net other-than-temporary impairment losses

 

 

(289

)

 

 

 

 

 

 

 

 

 

 

 

(289

)

Policy fee income

 

 

3,229

 

 

 

 

 

 

 

 

 

 

 

 

3,229

 

Other

 

 

762

 

 

 

9,366

 

 

 

5,738

 

 

 

(13,984

)

 

 

1,882

 

Total revenue

 

 

239,097

 

 

 

9,367

 

 

 

8,931

 

 

 

(14,921

)

 

 

242,474

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses and loss adjustment expenses

 

 

107,514

 

 

 

 

 

 

 

 

 

 

 

 

107,514

 

Amortization of deferred policy acquisition costs

 

 

37,146

 

 

 

 

 

 

 

 

 

 

 

 

37,146

 

Interest expense

 

 

2

 

 

 

1,653

 

 

 

12,043

 

 

 

(643

)

 

 

13,055

 

Depreciation and amortization

 

 

113

 

 

 

2,542

 

 

 

1,285

 

 

 

(2,390

)

 

 

1,550

 

Other

 

 

30,590

 

 

 

5,168

 

 

 

23,246

 

 

 

(11,888

)

 

 

47,116

 

Total expenses

 

 

175,365

 

 

 

9,363

 

 

 

36,574

 

 

 

(14,921

)

 

 

206,381

 

Income (loss) before income taxes

 

$

63,732

 

 

$

4

 

 

$

(27,643

)

 

$

 

 

$

36,093

 

Total revenue from non-affiliates(c)

 

$

239,097

 

 

$

7,738

 

 

$

7,176

 

 

 

 

 

 

 

 

 

 

(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 of certain revenue and expenses 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, 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 gains

 

 

(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 of certain revenue and expenses 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 repurchase 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 of certain revenue and expenses 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,

 

 

 

2019

 

 

2018

 

Segment:

 

 

 

 

 

 

 

 

Insurance Operations

 

$

663,280

 

 

$

615,983

 

Real Estate Operations

 

 

93,727

 

 

 

83,828

 

Corporate and Other

 

 

60,662

 

 

 

146,651

 

Consolidation and Elimination

 

 

(15,060

)

 

 

(13,599

)

Total assets

 

$

802,609

 

 

$

832,863