v3.25.1
Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Information
12.
Segment Information

On December 31, 2024, the Company executed an extensive internal business reorganization that marked a significant milestone, positioning the Company for growth and enhanced operational efficiency, increased statutory capital, and more efficient capital management resulting from de-stacking of the insurance companies.

As a result of this reorganization, the Company’s reportable segments are now structured under two holding companies:

•
Penn-America Underwriters, LLC consists of (i) three agencies: Penn-America Insurance Services, LLC, J.H. Ferguson, LLC, which includes the Vacant Express division, and Collectibles Insurance Services, LLC that source, underwrite, and service policies and (ii) two strategic insurance product and service businesses: Liberty Insurance Adjustment Agency, Inc. a claims adjustment and claims service business and Kaleidoscope Insurance Technologies, Inc., a proprietary insurance software and services provider.
•
Belmont Holdings GX, Inc. includes five state-regulated insurance carriers: Penn-Patriot Insurance Company, Diamond State Insurance Company, Penn-Star Insurance Company, Penn-America Insurance Company, and United National Insurance Company, each of which are rated “A” (Excellent) by AM Best.

In the first quarter of 2025, the Company realigned the composition of its reportable segments to reflect changes in how the Company now manages its operations. The Company changed the level at which its chief operating decision maker (“CODM”), the Chief Executive Officer of Global Indemnity Group, LLC, regularly reviews operating results and allocate

resources to now include Agency and Insurance Services. As a result of these changes, the Company has three reportable segments:

•
Agency and Insurance Services consists of (i) three agencies: Penn-America Insurance Services, LLC, J.H. Ferguson, LLC, which includes the Vacant Express division, and Collectibles Insurance Services, LLC that source, underwrite, and service policies and (ii) two strategic insurance product and service businesses: Liberty Insurance Adjustment Agency, Inc. a claims adjustment and claims service business and Kaleidoscope Insurance Technologies, Inc., a proprietary insurance software and services provider.
•
Belmont Insurance Companies - Core (“Belmont Core”), previously known as the Penn-America segment, consists of insurance company operations for ongoing direct insurance products and assumed reinsurance products, which are offered in the excess and surplus lines marketplace.
•
Belmont Insurance Companies - Non-Core (“Belmont Non-Core”), previously known as the Non-Core Operations segment, consists of insurance company operations for lines of business that have been de-emphasized or are no longer being written. The primary activities of Belmont Non-Core are servicing the run-off of polices/treaties, adjusting claims and estimating loss reserves on de-emphasized and terminated business.

The entities within the Agency and Insurance Services segment executed new affiliated service agreements with Belmont Holdings GX, Inc. and its insurance company subsidiaries, effective January 1, 2025. As a result, there are no revenues and expenses for Agency and Insurance Services in the comparable period in 2024.

The Company's segments are reported on a stand-alone basis. Intercompany transactions are eliminated in consolidation.

The Company analyzes the operating performance of each segment using the segment’s income (loss). Segment income (loss) does not equate to “net income (loss)” as determined in accordance with U.S. GAAP but is the measure of segment profit or loss used by the CODM to evaluate segment performance and allocate resources, and consistent with authoritative guidance, is the measure of segment performance presented below.

 

The following are tabulations of business segment information for the quarter ended March 31, 2025. Corporate information is included to reconcile segment data to the consolidated financial statements.

 

Quarter Ended March 31, 2025:
 (Dollars in thousands)

 

Agency and Insurance Services

 

 

Belmont Core

 

 

Belmont Non-Core

 

 

Elimination

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross written premiums

 

$

—

 

 

$

98,389

 

 

$

286

 

 

$

—

 

 

$

98,675

 

Net written premiums

 

$

—

 

 

$

95,634

 

 

$

230

 

 

$

—

 

 

$

95,864

 

Net earned premiums

 

$

—

 

 

$

92,260

 

 

$

1,056

 

 

$

—

 

 

$

93,316

 

Commission and service fee income (1)

 

 

14,049

 

 

 

—

 

 

 

—

 

 

 

(14,049

)

 

 

—

 

Policy and installment fee income

 

 

387

 

 

 

—

 

 

 

30

 

 

 

—

 

 

 

417

 

Total segment revenues

 

 

14,436

 

 

 

92,260

 

 

 

1,086

 

 

 

(14,049

)

 

 

93,733

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,782

 

Net realized investment gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

136

 

Total consolidated revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

$

108,651

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net losses and loss adjustment expenses

 

 

—

 

 

 

66,452

 

 

 

619

 

 

 

(333

)

 

 

66,738

 

Net commission expenses

 

 

—

 

 

 

32,404

 

 

 

501

 

 

 

(10,571

)

 

 

22,334

 

Other underwriting expenses (3)

 

 

12,632

 

 

 

4,986

 

 

 

700

 

 

 

(3,145

)

 

 

15,173

 

Income (loss) from segments

 

 

1,804

 

 

$

(11,582

)

 

$

(734

)

 

 

—

 

 

$

(10,512

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment profit (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,782

 

Net realized investment gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

136

 

Corporate expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,500

)

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,094

)

Income tax expense (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,105

)

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(3,989

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment assets

 

$

41,886

 

 

$

153,788

 

 

$

86,130

 

 

$

(29,871

)

 

 

251,933

 

Corporate assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,461,673

 

Total assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,713,606

 

 

(1)
Consists of intersegment revenues, which are eliminated in consolidation.
(2)
The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(3)
Other underwriting expenses consist primarily of personnel expenses and general operating expenses related to underwriting activities.

 

The following are tabulations of business segment information for the quarter ended March 31, 2024. Corporate information is included to reconcile segment data to the consolidated financial statements. Segment results for the quarter ended March 31, 2024 have been recast to conform to the new reportable segments.

 

Quarter Ended March 31, 2024:
 (Dollars in thousands)

 

Agency and Insurance Services

 

 

Belmont Core

 

 

Belmont Non-Core

 

 

Elimination

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross written premiums

 

$

—

 

 

$

94,048

 

 

$

(560

)

 

$

—

 

 

$

93,488

 

Net written premiums

 

$

—

 

 

$

92,596

 

 

$

(511

)

 

$

—

 

 

$

92,085

 

Net earned premiums

 

$

—

 

 

$

89,132

 

 

$

7,447

 

 

$

—

 

 

$

96,579

 

Commission and service fee income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Policy and installment fee income

 

 

—

 

 

 

339

 

 

 

6

 

 

 

—

 

 

 

345

 

Total segment revenues

 

 

—

 

 

 

89,471

 

 

 

7,453

 

 

 

—

 

 

 

96,924

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,520

 

Net realized investment gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

847

 

Total consolidated revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

$

112,291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net losses and loss adjustment expenses

 

 

—

 

 

 

48,909

 

 

 

4,475

 

 

 

—

 

 

 

53,384

 

Net commission expenses

 

 

—

 

 

 

20,891

 

 

 

2,532

 

 

 

—

 

 

 

23,423

 

Other underwriting expenses (2)

 

 

—

 

 

 

14,036

 

 

 

810

 

 

 

—

 

 

 

14,846

 

Income (loss) from segments

 

$

—

 

 

$

5,635

 

 

$

(364

)

 

$

—

 

 

$

5,271

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment profit (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,520

 

Net realized investment gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

847

 

Corporate expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,373

)

Income (loss) before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,265

 

Income tax expense (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,899

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

11,366

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment assets

 

$

—

 

 

$

154,078

 

 

$

116,583

 

 

$

—

 

 

 

270,661

 

Corporate assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,457,581

 

Total assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,728,242

 

 

(1)
The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(2)
Other underwriting expenses consist primarily of personnel expenses and general operating expenses related to underwriting activities.