Segment results for Alleghany’s two reportable segments and for corporate activities for the three and six months ended June 30, 2015 and 2014 are shown in the tables below:


	Reinsurance Segment						Insurance Segment
Three Months Ended June 30, 2015	Property		Casualty & other⁽¹⁾		Total		RSUI		Cap Specialty			Pacific Comp⁽²⁾			Total		Total Segments			Corporate Activities⁽³⁾			Consolidated
	(in millions)
Gross premiums written	$	302.4	$	587.8	$	890.2	$	339.7	$	61.4		$	24.1		$	425.2	$	1,315.4		$	(6.5	)	$	1,308.9
Net premiums written		252.4		578.2		830.6		233.7		57.9			23.8			315.4		1,146.0			—			1,146.0
Net premiums earned		236.7		562.9		799.6		201.4		49.9			23.8			275.1		1,074.7			—			1,074.7

Net loss and LAE		67.2		361.7		428.9		114.3		33.9			18.3			166.5		595.4			—			595.4
Commissions, brokerage and other underwriting expenses		76.6		201.1		277.7		55.1		21.8			9.4			86.3		364.0			—			364.0

Underwriting profit (loss)⁽⁴⁾	$	92.9	$	0.1	$	93.0	$	32.0	$	(5.8	)	$	(3.9	)	$	22.3		115.3			—			115.3

Net investment income																		103.3			(0.2	)		103.1
Net realized capital gains																		86.2			—			86.2
Other than temporary impairment losses																		(7.3	)		—			(7.3	)
Other income																		1.0			42.8			43.8
Other operating expenses																		16.8			47.0			63.8
Corporate administration																		0.2			9.6			9.8
Amortization of intangible assets																		(1.1	)		0.1			(1.0	)
Interest expense																		9.7			13.7			23.4

Earnings (losses) before income taxes																	$	272.9		$	(27.8	)	$	245.1


	Reinsurance Segment						Insurance Segment
Three Months Ended June 30, 2014	Property		Casualty & other⁽¹⁾		Total		RSUI		Cap Specialty			Pacific Comp⁽²⁾			Total		Total Segments			Corporate Activities⁽³⁾			Consolidated
	(in millions)
Gross premiums written	$	310.3	$	636.8	$	947.1	$	377.4	$	56.9		$	15.7		$	450.0	$	1,397.1		$	(5.1	)	$	1,392.0
Net premiums written		271.3		618.7		890.0		252.4		51.5			15.5			319.4		1,209.4			—			1,209.4

Net premiums earned		258.7		573.2		831.9		205.6		45.8			15.6			267.0		1,098.9			—			1,098.9

Net loss and LAE		121.8		360.9		482.7		105.0		29.7			11.8			146.5		629.2			—			629.2
Commissions, brokerage and other underwriting expenses		80.8		193.6		274.4		54.6		23.1			7.5			85.2		359.6			—			359.6

Underwriting profit (loss)⁽⁴⁾	$	56.1	$	18.7	$	74.8	$	46.0	$	(7.0	)	$	(3.7	)	$	35.3		110.1			—			110.1

Net investment income																		112.4			1.7			114.1
Net realized capital gains																		41.8			(0.3	)		41.5
Other than temporary impairment losses																		(0.9	)		—			(0.9	)
Other income																		(1.5	)		39.1			37.6
Other operating expenses																		23.9			42.4			66.3
Corporate administration																		0.1			12.6			12.7
Amortization of intangible assets																		(0.9	)		—			(0.9	)
Interest expense																		12.2			9.7			21.9

Earnings (losses) before income taxes																	$	226.6		$	(24.2	)	$	202.4


	Reinsurance Segment							Insurance Segment
Six Months Ended June 30, 2015	Property		Casualty & other⁽¹⁾			Total		RSUI		Cap Specialty			Pacific Comp⁽²⁾			Total		Total Segments			Corporate Activities⁽³⁾			Consolidated
	(in millions)
Gross premiums written	$	574.0	$	1,218.4		$	1,792.4	$	627.9	$	115.9		$	45.6		$	789.4	$	2,581.8		$	(14.0	)	$	2,567.8
Net premiums written		462.4		1,196.9			1,659.3		424.3		108.5			45.0			577.8		2,237.1			—			2,237.1
Net premiums earned		452.3		1,094.2			1,546.5		404.5		97.5			43.4			545.4		2,091.9			—			2,091.9

Net loss and LAE		130.4		704.9			835.3		215.1		58.3			33.7			307.1		1,142.4			—			1,142.4
Commissions, brokerage and other underwriting expenses		143.5		390.9			534.4		110.4		44.5			18.2			173.1		707.5			—			707.5

Underwriting profit (loss)⁽⁴⁾	$	178.4	$	(1.6	)	$	176.8	$	79.0	$	(5.3	)	$	(8.5	)	$	65.2		242.0			—			242.0

Net investment income																			214.0			2.5			216.5
Net realized capital gains																			135.0			(5.7	)		129.3
Other than temporary impairment losses																			(59.6	)		—			(59.6	)
Other income																			2.5			77.4			79.9
Other operating expenses																			43.5			87.7			131.2
Corporate administration																			0.4			22.1			22.5
Amortization of intangible assets																			(3.0	)		0.3			(2.7	)
Interest expense																			19.5			27.0			46.5

Earnings (losses) before income taxes																		$	473.5		$	(62.9	)	$	410.6


	Reinsurance Segment							Insurance Segment
Six Months Ended June 30, 2014	Property		Casualty & other⁽¹⁾			Total		RSUI		Cap Specialty			Pacific Comp⁽²⁾			Total		Total Segments			Corporate Activities⁽³⁾			Consolidated
	(in millions)
Gross premiums written	$	608.9	$	1,279.5		$	1,888.4	$	679.7	$	106.0		$	31.5		$	817.2	$	2,705.6		$	(12.5	)	$	2,693.1
Net premiums written		521.9		1,247.9			1,769.8		447.8		94.8			31.0			573.6		2,343.4			—			2,343.4

Net premiums earned		493.2		1,132.0			1,625.2		409.6		88.1			30.0			527.7		2,152.9			—			2,152.9

Net loss and LAE		183.1		763.5			946.6		217.5		53.6			22.7			293.8		1,240.4			—			1,240.4
Commissions, brokerage and other underwriting expenses		146.1		367.8			513.9		109.3		45.1			15.5			169.9		683.8			—			683.8

Underwriting profit (loss)⁽⁴⁾	$	164.0	$	0.7		$	164.7	$	82.8	$	(10.6	)	$	(8.2	)	$	64.0		228.7			—			228.7

Net investment income																			221.6			3.1			224.7
Net realized capital gains																			116.9			21.5			138.4
Other than temporary impairment losses																			(6.2	)		—			(6.2	)
Other income																			1.9			66.1			68.0
Other operating expenses																			45.2			74.4			119.6
Corporate administration																			0.2			22.1			22.3
Amortization of intangible assets																			(3.0	)		0.3			(2.7	)
Interest expense																			24.5			19.2			43.7

Earnings (losses) before income taxes																		$	496.0		$	(25.3	)	$	470.7

(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, corporate administration, 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.