Business Segments

3 Months Ended

Mar. 31, 2020

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


•	Insurance - predominantly commercial insurance business, including excess and surplus lines, admitted lines and specialty personal lines throughout the United States, as well as insurance business in the United Kingdom, Continental Europe, South America, Canada, Mexico, Scandinavia, Asia and Australia.


•	Reinsurance & Monoline Excess - reinsurance business on a facultative and treaty basis, primarily in the United States, the United Kingdom, Continental Europe, Australia, the Asia-Pacific Region and South Africa, as well as operations that solely retain risk on an excess basis.

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 (1)		Investment Income		Other			Total (2)			Pre-Tax (Loss) Income			Net (Loss) Income to Common Stockholders
Three months ended March 31, 2020
Insurance	$	1,484,955	$	123,458	$	8,473		$	1,616,886		$	175,947		$	140,117
Reinsurance & Monoline Excess	206,463		37,710		—			244,173			36,514			29,187
Corporate, other and eliminations (3)	—		13,595		113,130			126,725			(41,755		)	(33,755		)
Net investment losses	—		—		(177,174		)	(177,174		)	(177,174		)	(139,967		)
Total	$	1,691,418	$	174,763	$	(55,571	)	$	1,810,610		$	(6,468	)	$	(4,418	)
Three months ended March 31, 2019
Insurance	$	1,427,034	$	100,041	$	13,244		$	1,540,319		$	184,516		$	145,993
Reinsurance & Monoline Excess	165,822		39,574		—			205,396			44,855			35,525
Corporate, other and eliminations (3)	—		18,639		104,015			122,654			(68,585		)	(55,032		)
Net investment gains	—		—		68,653			68,653			68,653			54,236
Total	$	1,592,856	$	158,254	$	185,912		$	1,937,022		$	229,439		$	180,722

_________________

(1)Certain amounts included in earned premiums of each segment are related to inter-segment transactions.

(2)Revenues for Insurance from foreign countries for the three months ended March 31, 2020 and 2019 were $168 million and $170 million, respectively. Revenues for Reinsurance & Monoline Excess from foreign countries for the three months ended March 31, 2020 and 2019 were $69 million and $59 million, respectively.


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

Identifiable Assets



(In thousands)	March 31, 2020		December 31, 2019
Insurance	$	19,485,407	$	20,005,802
Reinsurance & Monoline Excess	4,405,637		4,710,819
Corporate, other and eliminations	2,198,885		1,913,409
Consolidated	$	26,089,929	$	26,630,030

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



	For the Three Months Ended March 31,
	For the Three Months Ended March 31,
(In thousands)	2020		2019
Insurance:
Other liability	$	547,129	$	490,661
Workers’ compensation	301,600		326,676
Short-tail lines (1)	295,478		289,091
Commercial automobile	189,643		180,925
Professional liability	151,105		139,681
Total Insurance	1,484,955		1,427,034

Reinsurance & Monoline Excess:
Casualty reinsurance	122,731		90,830
Monoline excess (2)	42,161		38,981
Property reinsurance	41,571		36,011
Total Reinsurance & Monoline Excess	206,463		165,822

Total	$	1,691,418	$	1,592,856

______________

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

(2) Monoline excess includes operations that solely retain risk on an excess basis.