Segment results for Alleghany’s two reportable segments and for corporate activities for the three months ended March 31, 2014 and 2013 are shown in the tables below:


	Reinsurance Segment						Insurance Segment
Three Months Ended March 31, 2014	Property		Casualty & Other⁽¹⁾		Total		RSUI		Capitol		PCC⁽²⁾		Total		Total Segments		Corporate Activities⁽³⁾		Consolidated
	(in millions)
Gross premiums written	$	298.6	$	642.7	$	941.3	$	302.3	$	49.1	$	15.8	$	367.2	$	1,308.5	$	(7.4)	$	1,301.1
Net premiums written		250.6		629.2		879.8		195.4		43.3		15.5		254.2		1,134.0		-		1,134.0

Net premiums earned		234.5		558.8		793.3		204.0		42.3		14.4		260.7		1,054.0		-		1,054.0
Net loss and LAE		61.3		402.6		463.9		112.4		24.0		10.9		147.3		611.2		-		611.2

Commissions, brokerage and other underwriting expenses		65.3		174.1		239.4		54.8		22.0		8.0		84.8		324.2		-		324.2

Underwriting profit (loss)⁽⁴⁾	$	107.9	$	(17.9)	$	90.0	$	36.8	$	(3.7)	$	(4.5)	$	28.6		118.6		-		118.6

Net investment income																109.2		1.4		110.6
Net realized capital gains																75.1		21.7		96.8
Other than temporary impairment losses																(5.2)		-		(5.2)
Other income																3.4		27.0		30.4
Other operating expenses																21.3		32.0		53.3
Corporate administration																-		9.6		9.6
Amortization of intangible assets																(1.9)		0.1		(1.8)
Interest expense																12.3		9.5		21.8

Earnings (losses) before income taxes															$	269.4	$	(1.1)	$	268.3


	Reinsurance Segment						Insurance Segment
Three Months Ended March 31, 2013	Property		Casualty & Other⁽¹⁾		Total		RSUI		Capitol		PCC⁽²⁾		Total		Total Segments		Corporate Activities⁽³⁾		Consolidated
	(in millions)

Gross premiums written	$	270.1	$	637.6	$	907.7	$	285.8	$	40.2	$	9.1	$	335.1	$	1,242.8	$	(5.3)	$	1,237.5

Net premiums written		236.7		629.3		866.0		181.2		37.8		8.9		227.9		1,093.9		-		1,093.9

Net premiums earned		250.1		603.8		853.9		175.7		37.3		8.1		221.1		1,075.0		-		1,075.0
Net loss and LAE		56.2		415.0		471.2		70.4		18.1		7.7		96.2		567.4		-		567.4

Commissions, brokerage and other underwriting expenses		62.4		188.9		251.3		48.4		19.5		7.0		74.9		326.2		-		326.2

Underwriting profit (loss)⁽⁴⁾	$	131.5	$	(0.1)	$	131.4	$	56.9	$	(0.3)	$	(6.6)	$	50.0		181.4		-		181.4

Net investment income																93.3		25.5		118.8
Net realized capital gains																49.3		1.6		50.9
Other than temporary impairment losses																(32.3)		-		(32.3)
Other income																0.7		10.5		11.2
Other operating expenses																20.4		10.4		30.8
Corporate administration																-		12.4		12.4
Amortization of intangible assets																11.6		-		11.6
Interest expense																12.4		9.4		21.8

Earnings before income taxes															$	248.0	$	5.4	$	253.4

(1)	Primarily consists of the following assumed reinsurance lines of business: directors’ and officers’ liability; errors and omissions liability; general liability; medical malpractice; ocean marine and aviation; auto liability; accident and health; surety; and credit.

(2)	Includes underwriting results of AIHL Re.

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

(4)

Underwriting profit 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 an 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.