| Segment Information |
We pursue our business activities primarily through subsidiaries whose operations are organized into producing units and are supported by our insurance carrier subsidiaries. Our non-carrier insurance activities are organized by operating units into the following reportable segments:
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Standard Commercial Segment. The Standard Commercial Segment includes the standard lines commercial property/casualty and occupational accident insurance products and services handled by our Standard Commercial P&C operating unit and the workers compensation insurance products handled by our Workers Compensation operating unit. Effective July 1, 2015, the Workers Compensation operating unit no longer retains any risk on new or renewal policies. Our Standard Commercial P&C operating unit is comprised of our American Hallmark Insurance Services and ECM subsidiaries. Our Workers Compensation operating unit is comprised of our TBIC Holdings, TBIC and TBICRM subsidiaries.
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Specialty Commercial Segment. Our Specialty Commercial Segment includes the excess and surplus lines commercial property/casualty insurance products and services handled by our MGA Commercial Products operating unit and the general aviation, satellite launch, commercial umbrella and primary/excess liability, medical professional liability and primary/excess commercial property insurance products and services handled by our Specialty Commercial operating unit, as well as the Specialty Programs managed at the parent level. Our MGA Commercial Products operating unit is comprised of our HSU, PAAC and TGASRI subsidiaries. Our Specialty Commercial operating unit is comprised of our Aerospace Insurance Managers, ASRI, ACMG, HXS and HDS subsidiaries.
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Personal Segment. Our Personal Segment includes the non-standard personal automobile and renters insurance products and services handled by our Specialty Personal Lines operating unit. During the fourth quarter of 2014, our Specialty Personal Lines operating unit discontinued the low value dwelling/homeowners and manufactured homes insurance products it previously offered. Our Specialty Personal Lines operating unit is comprised of AHGA and HCS.
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The retained premium produced by these reportable segments is supported by our AHIC, HSIC, HIC, HNIC and TBIC insurance company subsidiaries. In addition, control and management of HCM is maintained through our wholly owned subsidiary, CYR Insurance Management Company (“CYR”). CYR has as its primary asset a management agreement with HCM which provides for CYR to have management and control of HCM. HCM is used to front certain lines of business in our Specialty Commercial and Personal Segments in Texas. HCM does not retain any business.
AHIC, HIC, HSIC and HNIC have entered into a pooling arrangement, pursuant to which AHIC retains 34% of the net premiums written by any of them, HIC retains 32% of the net premiums written by any of them, HSIC retains 24% of the net premiums written by any of them and HNIC retains 10% of the net premiums written by any of them. Neither HCM nor TBIC is a party to the intercompany pooling arrangement.
The following is additional business segment information for the twelve months ended December 31, 2015, 2014 and 2013 (in thousands):
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2015
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2014
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2013
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Revenues
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Standard Commercial Segment
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$
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76,864
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$
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81,464
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$
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83,306
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Specialty Commercial Segment
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249,910
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241,920
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229,734
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Personal Segment
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45,538
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20,404
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71,081
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Corporate
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90
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(6,422)
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5,307
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Consolidated
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$
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372,402
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$
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337,366
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$
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389,428
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Depreciation and Amortization Expense
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Standard Commercial Segment
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$
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136
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$
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183
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$
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201
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Specialty Commercial Segment
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2,537
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2,503
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2,896
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Personal Segment
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779
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515
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1,111
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Corporate
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64
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23
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92
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Consolidated
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$
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3,516
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$
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3,224
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$
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4,300
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Interest Expense
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Standard Commercial Segment
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$
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-
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$
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-
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$
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-
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Specialty Commercial Segment
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-
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-
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-
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Personal Segment
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-
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-
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-
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Corporate
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3,906
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4,576
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4,599
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Consolidated
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$
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3,906
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$
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4,576
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$
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4,599
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Tax Expense (Benefit)
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Standard Commercial Segment
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$
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1,436
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$
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622
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$
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312
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Specialty Commercial Segment
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11,609
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9,690
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3,613
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Personal Segment
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(1,345)
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(574)
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(398)
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Corporate
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(1,677)
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(4,385)
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(692)
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Consolidated
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$
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10,023
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$
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5,353
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$
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2,835
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Pre-tax Income (Loss)
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Standard Commercial Segment
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$
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6,687
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$
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4,595
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$
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1,980
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Specialty Commercial Segment
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40,277
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34,237
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19,527
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Personal Segment
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(885)
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1,226
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(3,416)
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Corporate
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(14,193)
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(21,276)
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(7,011)
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Consolidated
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$
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31,886
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$
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18,782
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$
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11,080
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The following is additional business segment information as of the following dates (in thousands):
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December 31
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2015
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2014
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Assets
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Standard Commercial Segment
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$
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156,722
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$
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145,355
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Specialty Commercial Segment
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660,263
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590,852
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Personal Segment
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239,632
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222,183
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Corporate
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19,983
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22,479
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Consolidated
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$
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1,076,600
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$
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980,869
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