Industry Segments

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Industry Segments

Business Segments

The Company’s financial results are presented for the following reportable business segments:

• Insurance-Domestic - commercial insurance business, including excess and surplus lines and admitted lines, throughout the United States;

• Insurance-International - insurance business primarily in the United Kingdom, Continental Europe, South America, Canada, Scandinavia, and Australia; and

• Reinsurance-Global - reinsurance business on a facultative and treaty basis, primarily in the United States, United Kingdom, Europe, Australia, and the Asia-Pacific Region.

During the first quarter of 2013, the Company changed the aggregation of its business segments. All domestic insurance operating companies, previously included in the Specialty, Regional and Alternative Markets segments, were aggregated into the Insurance-Domestic segment; all international insurance companies were aggregated into the Insurance-International segment; and all reinsurance operating companies were aggregated into the Reinsurance-Global segment. The segment disclosures for prior periods have been revised to be consistent with the new reportable business segment presentation. The segment disclosures for the years ended December 31, 2012, 2011 and 2010, and as of December 31, 2012 and 2011, have also been included herein, revised for the new reportable business segment presentation.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Income tax expense and benefits are calculated based upon the Company’s overall effective tax rate.

Summary financial information about the Company's business segments is presented in the following tables.

	Revenues
(In thousands)	Earned Premiums		Investment Income		Other		Total		Pre-Tax Income (Loss)			Net Income (Loss)
Three months ended September 30, 2013:
Insurance-Domestic	$	958,994	$	94,071	$	26,125	$	1,079,190	$	172,177		$	118,183
Insurance-International	189,054		11,151		—		200,205		16,129			11,225
Reinsurance-Global	180,814		20,121		—		200,935		24,559			17,300
Corporate and eliminations (1)	—		291		109,634		109,925		(58,501		)	(38,248		)
Net investment gains	—		—		43,869		43,869		43,869			28,514
Total	$	1,328,862	$	125,634	$	179,628	$	1,634,124	$	198,233		$	136,974
Three months ended September 30, 2012:
Insurance-Domestic	$	873,835	$	82,565	$	26,208	$	982,608	$	132,498		$	94,852
Insurance-International	157,773		10,411		—		168,184		13,806			10,027
Reinsurance-Global	154,925		21,149		—		176,074		23,048			17,202
Corporate and eliminations (1)	—		1,894		69,515		71,409		(57,885		)	(35,945		)
Net investment gains	—		—		22,226		22,226		22,226			14,811
Total	$	1,186,533	$	116,019	$	117,949	$	1,420,501	$	133,693		$	100,947
Nine months ended September 30, 2013:
Insurance-Domestic	$	2,769,369	$	299,430	$	80,513	$	3,149,312	$	465,861		$	324,069
Insurance-International	540,365		36,383		—		576,748		51,094			35,794
Reinsurance-Global	533,762		65,656		—		599,418		87,252			61,375
Corporate and eliminations (1)	—		3,831		285,650		289,481		(183,941		)	(114,674		)
Net investment gains	—		—		96,896		96,896		96,896			62,982
Total	$	3,843,496	$	405,300	$	463,059	$	4,711,855	$	517,162		$	369,546
Nine months ended September 30, 2012:
Insurance-Domestic	$	2,530,638	$	315,307	$	77,121	$	2,923,066	$	424,873		$	304,167
Insurance-International	456,159		31,936		—		488,095		43,287			30,972
Reinsurance-Global	446,744		78,287		—		525,031		82,140			60,343
Corporate and eliminations (1)	—		9,358		175,400		184,758		(174,868		)	(112,122		)
Net investment gains	—		—		94,003		94,003		94,003			61,743
Total	$	3,433,541	$	434,888	$	346,524	$	4,214,953	$	469,435		$	345,103

___________

(1) Corporate and eliminations represent corporate revenues and expenses that are not allocated to business segments.

Identifiable assets by segment are as follows:

(In thousands)	September 30, 2013		December 31, 2012
Insurance-Domestic	$	15,097,667	$	14,661,476
Insurance-International	1,451,487		1,541,365
Reinsurance-Global	3,090,334		3,337,937
Corporate and eliminations	884,231		615,118
Total	$	20,523,719	$	20,155,896

Net premiums earned by major line of business are as follows:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
(In thousands)	2013		2012		2013		2012
Insurance-Domestic:
Other liability	$	314,878	$	280,808	$	917,910	$	812,153
Workers’ compensation	252,220		223,477		722,422		637,583
Short-tail lines (1)	199,181		189,613		570,868		552,905
Commercial automobile	125,942		116,418		361,964		339,317
Products liability	66,773		63,519		196,205		188,680
Total	958,994		873,835		2,769,369		2,530,638
Insurance-International:
Other liability	18,457		29,719		48,745		47,559
Workers’ compensation	20,847		21,102		65,482		59,618
Short-tail lines (1)	92,213		52,043		248,637		183,791
Commercial automobile	30,898		30,557		97,929		90,831
Products liability	26,639		24,352		79,572		74,360
Total	189,054		157,773		540,365		456,159
Reinsurance-Global:
Casualty	128,127		112,914		371,571		321,277
Property	52,687		42,011		162,191		125,467
Total	180,814		154,925		533,762		446,744
Total	$	1,328,862	$	1,186,533	$	3,843,496	$	3,433,541

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(1) Short-tail lines includes commercial multi-peril (non-liability), inland and ocean marine, accident and health, fidelity and surety, boiler and machinery and other lines.