Business Segments

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company’s reportable segments include the following two business segments, plus a corporate segment:

• Insurance - primarily commercial insurance business, including excess and surplus lines and admitted lines in the United States, United Kingdom, Continental Europe, South America, Canada, Mexico, Scandinavia, Asia and Australia; and

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

Commencing with the first quarter of 2017, the Company reclassified two businesses from the Insurance Segment to the Reinsurance segment. Reclassifications have been made to the Company's 2016 financial information to conform with this 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 reporting segments is presented in the following tables. Income (loss) before income taxes by segment includes allocated investment income. Identifiable assets by segment are those assets used in or allocated to the operation of each segment.

	Revenues
(In thousands)	Earned Premiums		Investment Income		Other		Total (1)		Pre-Tax Income (Loss)			Net Income (Loss) to Common Stockholders
Three months ended June 30, 2017
Insurance	$	1,415,586	$	102,719	$	22,984	$	1,541,289	$	186,134		$	124,442
Reinsurance	153,117		21,491		—		174,608		14,771			10,324
Corporate, other and eliminations (2)	—		11,054		80,645		91,699		(80,397		)	(52,056		)
Net investment gains	—		—		40,453		40,453		40,453			26,294
Total	$	1,568,703	$	135,264	$	144,082	$	1,848,049	$	160,961		$	109,004
Three months ended June 30, 2016
Insurance	$	1,390,744	$	94,155	$	27,603	$	1,512,502	$	176,500		$	119,135
Reinsurance	169,049		25,372		—		194,421		23,834			16,681
Corporate, other and eliminations (2)	—		9,522		133,154		142,676		(48,335		)	(30,954		)
Net investment gains	—		—		6,315		6,315		6,315			4,105
Total	$	1,559,793	$	129,049	$	167,072	$	1,855,914	$	158,314		$	108,967
Six months ended June 30, 2017:
Insurance	$	2,828,755	214,628		$	41,271	$	3,084,654	$	386,127		$	257,458
Reinsurance	309,989		46,269		—		356,258		19,364			13,983
Corporate, other and eliminations (2)	—		23,226		161,528		184,754		(153,034		)	(99,311		)
Net investment gains	—		—		92,801		92,801		92,801			60,321
Total	$	3,138,744	$	284,123	$	295,600	$	3,718,467	$	345,258		$	232,451
Six months ended June 30, 2016:
Insurance	$	2,757,350	$	193,605	$	54,396	$	3,005,351	$	376,153		$	253,639
Reinsurance	329,778		49,552		—		379,330		51,893			36,070
Corporate, other and eliminations (2)	—		16,025		248,761		264,786		(108,714		)	(70,110		)
Net investment gains	—		—		13,658		13,658		13,658			8,878
Total	$	3,087,128	$	259,182	$	316,815	$	3,663,125	$	332,990		$	228,477

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(1) Revenues for Insurance from foreign countries for the three months ended June 30, 2017 and 2016 were $168 million and $179 million and for the six months ended June 30, 2017 and 2016 were $347 million and $359 million, respectively. Revenues for Reinsurance from foreign countries for the three months ended June 30, 2017 and 2016 were both $50 million and for the six months ended June 30, 2017 and 2016 were $101 million and $105 million, respectively.

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

Identifiable Assets

(In thousands)	June 30, 2017		December 31, 2016
Insurance	$	18,687,170	$	19,137,758
Reinsurance	3,085,961		2,524,338
Corporate, other and eliminations	2,220,360		1,687,980
Consolidated	$	23,993,491	$	23,350,076

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

	For the Three Months				For the Six Months
	Ended June 30,				Ended June 30,
(In thousands)	2017		2016		2017		2016
Insurance:
Other liability	$	460,059	$	433,472	$	911,889	$	847,000
Workers’ compensation	366,950		344,736		728,086		688,317
Short-tail lines (1)	290,696		322,493		599,930		649,570
Commercial automobile	161,526		159,892		319,653		316,709
Professional liability	136,355		130,151		269,197		255,754
Total Insurance	1,415,586		1,390,744		2,828,755		2,757,350
Reinsurance:
Casualty	93,212		100,113		187,952		204,418
Property	59,905		68,936		122,037		125,360
Total Reinsurance	153,117		169,049		309,989		329,778
Total	$	1,568,703	$	1,559,793	$	3,138,744	$	3,087,128

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