v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 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 and Associates, 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 and Associates, 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 quarters and six months ended June 30, 2025 and 2024. Corporate information is included to reconcile segment data to the consolidated financial statements. Segment results for the quarter and six months ended June 30, 2024 have been recast to conform to the new reportable segments.

 

Quarter Ended June 30, 2025
(Dollars in thousands)

 

Agency and Insurance Services

 

 

Belmont Core

 

 

Belmont Non-Core

 

 

Elimination

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross written premiums

 

$

—

 

 

$

109,819

 

 

$

(3,018

)

 

$

—

 

 

$

106,801

 

Net written premiums

 

$

—

 

 

$

106,873

 

 

$

(2,959

)

 

$

—

 

 

$

103,914

 

Net earned premiums

 

$

—

 

 

$

97,513

 

 

$

(2,367

)

 

$

—

 

 

$

95,146

 

Commission and service fee income (1)

 

 

14,851

 

 

 

—

 

 

 

—

 

 

 

(14,851

)

 

 

—

 

Policy and installment fee income

 

 

499

 

 

 

—

 

 

 

41

 

 

 

—

 

 

 

540

 

Total segment revenues

 

 

15,350

 

 

 

97,513

 

 

 

(2,326

)

 

 

(14,851

)

 

 

95,686

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,707

 

Net realized investment gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

127

 

Total consolidated revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

$

110,520

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net losses and loss adjustment expenses

 

 

—

 

 

 

56,109

 

 

 

(2,829

)

 

 

(332

)

 

 

52,948

 

Net commission expenses

 

 

—

 

 

 

34,079

 

 

 

(780

)

 

 

(11,456

)

 

 

21,843

 

Other underwriting expenses (3)

 

 

13,042

 

 

 

4,591

 

 

 

502

 

 

 

(3,063

)

 

 

15,072

 

Income from segments

 

$

2,308

 

 

$

2,734

 

 

$

781

 

 

$

—

 

 

$

5,823

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment profit (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,707

 

Net realized investment gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

127

 

Corporate expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,528

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,129

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,785

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

$

10,344

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment assets

 

$

33,730

 

 

$

154,811

 

 

$

85,360

 

 

$

(19,644

)

 

 

254,257

 

Corporate assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,466,328

 

Total assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,720,585

 

 

(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.

 

 

Quarter Ended June 30, 2024
(Dollars in thousands)

 

Agency and Insurance Services

 

 

Belmont Core

 

 

Belmont Non-Core

 

 

Elimination

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross written premiums

 

$

—

 

 

$

100,552

 

 

$

154

 

 

$

—

 

 

$

100,706

 

Net written premiums

 

$

—

 

 

$

97,602

 

 

$

149

 

 

$

—

 

 

$

97,751

 

Net earned premiums

 

$

—

 

 

$

89,353

 

 

$

3,461

 

 

$

—

 

 

$

92,814

 

Commission and service fee income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Policy and installment fee income

 

 

—

 

 

 

344

 

 

 

13

 

 

 

—

 

 

 

357

 

Total segment revenues

 

 

—

 

 

 

89,697

 

 

 

3,474

 

 

 

—

 

 

 

93,171

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,311

 

Net realized investment gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

205

 

Total consolidated revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

$

108,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net losses and loss adjustment expenses

 

 

—

 

 

 

51,126

 

 

 

2,536

 

 

 

—

 

 

 

53,662

 

Net commission expenses

 

 

—

 

 

 

20,589

 

 

 

1,094

 

 

 

—

 

 

 

21,683

 

Other underwriting expenses (2)

 

 

—

 

 

 

13,309

 

 

 

976

 

 

 

—

 

 

 

14,285

 

Income (loss) from segments

 

$

—

 

 

$

4,673

 

 

$

(1,132

)

 

$

—

 

 

$

3,541

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment profit (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,311

 

Net realized investment gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

205

 

Corporate expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,383

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,674

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,581

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

$

10,093

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment assets

 

$

—

 

 

$

152,534

 

 

$

108,847

 

 

$

—

 

 

 

261,381

 

Corporate assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,477,168

 

Total assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,738,549

 

 

(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.

 

Six Months Ended June 30, 2025
(Dollars in thousands)

 

Agency and Insurance Services

 

 

Belmont Core

 

 

Belmont Non-Core

 

 

Elimination

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross written premiums

 

$

—

 

 

$

208,208

 

 

$

(2,732

)

 

$

—

 

 

$

205,476

 

Net written premiums

 

$

—

 

 

$

202,507

 

 

$

(2,729

)

 

$

—

 

 

$

199,778

 

Net earned premiums

 

$

—

 

 

$

189,773

 

 

$

(1,311

)

 

$

—

 

 

$

188,462

 

Commission and service fee income (1)

 

 

28,900

 

 

 

—

 

 

 

—

 

 

 

(28,900

)

 

 

—

 

Policy and installment fee income

 

 

886

 

 

 

—

 

 

 

71

 

 

 

—

 

 

 

957

 

Total segment revenues

 

 

29,786

 

 

 

189,773

 

 

 

(1,240

)

 

 

(28,900

)

 

 

189,419

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29,489

 

Net realized investment gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

263

 

Total consolidated revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

$

219,171

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net losses and loss adjustment expenses

 

 

—

 

 

 

122,561

 

 

 

(2,210

)

 

 

(665

)

 

 

119,686

 

Net commission expenses

 

 

—

 

 

 

66,483

 

 

 

(279

)

 

 

(22,027

)

 

 

44,177

 

Other underwriting expenses (3)

 

 

25,674

 

 

 

9,577

 

 

 

1,202

 

 

 

(6,208

)

 

 

30,245

 

Income (loss) from segments

 

$

4,112

 

 

$

(8,848

)

 

$

47

 

 

$

—

 

 

$

(4,689

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment profit (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29,489

 

Net realized investment gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

263

 

Corporate expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17,028

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,035

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,680

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

$

6,355

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment assets

 

$

33,730

 

 

$

154,811

 

 

$

85,360

 

 

$

(19,644

)

 

 

254,257

 

Corporate assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,466,328

 

Total assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,720,585

 

 

(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

 

Six months ended June 30, 2024
(Dollars in thousands)

 

Agency and Insurance Services

 

 

Belmont Core

 

 

Belmont Non-Core

 

 

Elimination

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross written premiums

 

$

—

 

 

$

194,600

 

 

$

(406

)

 

$

—

 

 

$

194,194

 

Net written premiums

 

$

—

 

 

$

190,198

 

 

$

(362

)

 

$

—

 

 

$

189,836

 

Net earned premiums

 

$

—

 

 

$

178,485

 

 

$

10,908

 

 

$

—

 

 

$

189,393

 

Commission and service fee income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Policy and installment fee income

 

 

—

 

 

 

683

 

 

 

19

 

 

 

—

 

 

 

702

 

Total segment revenues

 

 

—

 

 

 

179,168

 

 

 

10,927

 

 

 

—

 

 

 

190,095

 

Reconciliation of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29,831

 

Net realized investment gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,052

 

Total consolidated revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

$

220,978

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net losses and loss adjustment expenses

 

 

—

 

 

 

100,035

 

 

 

7,011

 

 

 

—

 

 

 

107,046

 

Net commission expenses

 

 

—

 

 

 

41,480

 

 

 

3,626

 

 

 

—

 

 

 

45,106

 

Other underwriting expenses (2)

 

 

—

 

 

 

27,345

 

 

 

1,786

 

 

 

—

 

 

 

29,131

 

Income (loss) from segments

 

$

—

 

 

$

10,308

 

 

$

(1,496

)

 

$

—

 

 

$

8,812

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment profit (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29,831

 

Net realized investment gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,052

 

Corporate expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,756

)

Income before income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26,939

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,480

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

$

21,459

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment assets

 

$

—

 

 

$

152,534

 

 

$

108,847

 

 

$

—

 

 

 

261,381

 

Corporate assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,477,168

 

Total assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,738,549

 

 

 

 

 

 

 

 

 

(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.