Segment results for Alleghany’s two reportable segments and for corporate activities for the three and six months ended June 30, 2012 (which include Transatlantic from the Acquisition Date through June 30, 2012) and June 30, 2011 are shown in the tables below:


	Reinsurance Segment						Insurance Segment
Three Months Ended June 30, 2012	Property		Casualty & Other⁽¹⁾		Total		RSUI		CATA			PCC			Total		Total Segments			Corporate Activities⁽²⁾			Consolidated
	(in millions)
Gross premiums written	$	307.8	$	656.5	$	964.3	$	365.2	$	41.7		$	3.6		$	410.5	$	1,374.8		$	(5.8	)	$	1,369.0
Net premiums written		296.9		646.0		942.9		237.7		39.4			3.7			280.8		1,223.7			—			1,223.7
Net premiums earned	$	272.8	$	620.5	$	893.3	$	163.9	$	35.6		$	3.1		$	202.6	$	1,095.9		$	—		$	1,095.9
Net loss and LAE		94.0		466.8		560.8		91.7		25.4			3.0			120.1		680.9			—			680.9
Commissions, brokerage and other underwriting expenses		57.6		109.4		167.0		45.8		19.6			6.7			72.1		239.1			—			239.1

Underwriting profit (loss)⁽³⁾	$	121.2	$	44.3	$	165.5	$	26.4	$	(9.4	)	$	(6.6	)	$	10.4		175.9			—			175.9

Net investment income																		95.3			(4.4	)		90.9
Net realized capital gains																		39.4			—			39.4
OTTI losses																		(1.1	)		—			(1.1	)
Gain on bargain purchase																		—			—			—
Other income																		0.7			8.6			9.3
Other operating expenses																		23.7			11.1			34.8
Corporate administration																		—			11.1			11.1
Amortization of intangible assets																		108.1			—			108.1
Interest expense																		11.1			4.7			15.8

Earnings before income taxes																	$	167.3		$	(22.7	)	$	144.6


	Reinsurance Segment						Insurance Segment
Three Months Ended June 30, 2011	Property		Casualty & Other⁽¹⁾		Total		RSUI		CATA			PCC			Total			Total Segments			Corporate Activities			Consolidated
	(in millions)
Gross premiums written	$	—	$	—	$	—	$	320.7	$	38.6		$	0.7		$	360.0		$	360.0		$	—		$	360.0
Net premiums written		—		—		—		206.6		36.2			1.8			244.6			244.6			—			244.6
Net premiums earned	$	—	$	—	$	—	$	144.4	$	37.9		$	1.6		$	183.9		$	183.9		$	—		$	183.9
Net loss and LAE		—		—		—		84.0		22.5			16.1			122.6			122.6			—			122.6
Commissions, brokerage and other underwriting expenses		—		—		—		40.9		17.1			6.1			64.1			64.1			—			64.1

Underwriting profit (loss)⁽³⁾	$	—	$	—	$	—	$	19.5	$	(1.7	)	$	(20.6	)	$	(2.8	)		(2.8	)		—			(2.8	)

Net investment income																			31.0			(2.4	)		28.6
Net realized capital gains																			6.5			—			6.5
OTTI losses																			—			—			—
Gain on bargain purchase																			—			—			—
Other income																			0.1			0.1			0.2
Other operating expenses																			6.5			1.4			7.9
Corporate administration																			—			5.0			5.0
Amortization of intangible assets																			0.8			—			0.8
Interest expense																			—			4.3			4.3

Earnings before income taxes																		$	27.5		$	(13.0	)	$	14.5


	Reinsurance Segment						Insurance Segment
Six Months Ended June 30, 2012	Property		Casualty & Other⁽¹⁾		Total		RSUI		CATA			PCC			Total		Total Segments			Corporate Activities⁽²⁾			Consolidated
	(in millions)
Gross premiums written	$	378.9	$	831.5	$	1,210.4	$	612.5	$	80.2		$	6.3		$	699.0	$	1,909.4		$	(7.0	)	$	1,902.4
Net premiums written		360.6		818.6		1,179.2		396.6		75.7			6.4			478.7		1,657.9			—			1,657.9
Net premiums earned	$	338.9	$	797.5	$	1,136.4	$	317.8	$	70.3		$	5.6		$	393.7	$	1,530.1		$	—		$	1,530.1
Net loss and LAE		111.8		596.7		708.5		156.8		43.9			5.6			206.3		914.8			—			914.8
Commissions, brokerage and other underwriting expenses		65.7		130.5		196.2		90.6		38.9			13.4			142.9		339.1			—			339.1

Underwriting profit (loss)⁽³⁾	$	161.4	$	70.3	$	231.7	$	70.4	$	(12.5	)	$	(13.4	)	$	44.5		276.2			—			276.2

Net investment income																		136.0			8.1			144.1
Net realized capital gains																		68.8			38.7			107.5
OTTI losses																		(2.9	)		—			(2.9	)
Gain on bargain purchase																		—			494.9			494.9
Other income																		1.0			8.6			9.6
Other operating expenses																		37.5			13.0			50.5
Corporate administration																		—			58.4			58.4
Amortization of intangible assets																		140.0			—			140.0
Interest expense																		15.8			9.0			24.8

Earnings before income taxes																	$	285.8		$	469.9		$	755.7


	Reinsurance Segment						Insurance Segment
Six Months Ended June 30, 2011	Property		Casualty & Other⁽¹⁾		Total		RSUI		CATA			PCC			Total		Total Segments		Corporate Activities			Consolidated
	(in millions)
Gross premiums written	$	—	$	—	$	—	$	532.9	$	76.2		$	1.1		$	610.2	$	610.2	$	—		$	610.2
Net premiums written		—		—		—		337.4		71.6			2.2			411.2		411.2		—			411.2
Net premiums earned	$	—	$	—	$	—	$	286.0	$	77.1		$	1.7		$	364.8	$	364.8	$	—		$	364.8
Net loss and LAE		—		—		—		135.2		41.6			16.8			193.6		193.6		—			193.6
Commissions, brokerage and other underwriting expenses		—		—		—		82.3		36.5			11.8			130.6		130.6		—			130.6

Underwriting profit (loss)⁽³⁾	$	—	$	—	$	—	$	68.5	$	(1.0	)	$	(26.9	)	$	40.6		40.6		—			40.6

Net investment income																		61.2		(1.0	)		60.2
Net realized capital gains																		41.2		—			41.2
OTTI losses																		—		—			—
Gain on bargain purchase																		—		—			—
Other income																		0.3		0.8			1.1
Other operating expenses																		15.6		1.8			17.4
Corporate administration																		—		11.4			11.4
Amortization of intangible assets																		1.6		—			1.6
Interest expense																		—		8.7			8.7

Earnings before income taxes																	$	126.1	$	(22.1	)	$	104.0

(1)	Casualty & other primarily consists of assumed: D&O liability; errors and omissions liability; general liability; medical malpractice; ocean marine and aviation; auto liability; accident and health; surety; and credit.

(2)	Includes elimination of minor reinsurance activity between segments.

(3)

Represents net premiums earned less net loss and LAE and commissions, brokerage and other underwriting expenses, all as determined in accordance with GAAP and does not include net investment income, net realized capital gains, OTTI losses, other income, other operating expenses, amortization of intangible assets or interest expense. Underwriting profit does not replace earnings before income taxes determined in accordance with GAAP as a measure of profitability. Rather, Alleghany believes that underwriting profit, enhances the understanding of its segments’ operating results by highlighting net earnings attributable to their underwriting performance. Earnings before income taxes (a GAAP measure) may show a profit despite an underlying underwriting loss. Where underwriting losses persist over extended periods, a reinsurance or insurance company’s ability to continue as an ongoing concern may be at risk. Therefore, Alleghany views underwriting profit as an important measure in the overall evaluation of performance.