Segment results for Alleghany’s two reportable segments and for other activities for the three months ended March 31, 2016 and 2015 are shown in the tables below:


	Reinsurance Segment						Insurance Segment										Other Activities
Three Months Ended March 31, 2016	Property		Casualty & other⁽¹⁾		Total		RSUI		Cap Specialty		Pacific Comp		Total		Total Segments		Alleghany Capital		Corporate Activities⁽²⁾		Consolidated
	($ in millions)
Gross premiums written	$	383.2	$	759.2	$	1,142.4	$	256.9	$	62.9	$	34.1	$	353.9	$	1,496.3	$	-	$	(6.7)	$	1,489.6
Net premiums written		309.5		746.4		1,055.9		173.6		58.9		33.8		266.3		1,322.2		-		-		1,322.2
Net premiums earned		253.1		685.9		939.0		192.3		55.4		34.8		282.5		1,221.5		-		-		1,221.5
Net loss and LAE		96.1		430.0		526.1		85.1		26.9		26.5		138.5		664.6		-		-		664.6
Commissions, brokerage and other underwriting expenses		77.9		239.5		317.4		53.2		26.4		9.7		89.3		406.7		-		-		406.7

Underwriting profit (loss)⁽³⁾	$	79.1	$	16.4	$	95.5	$	54.0	$	2.1	$	(1.4)	$	54.7		150.2		-		-		150.2

Net investment income																102.8		(0.1)		2.2		104.9
Net realized capital gains																39.4		(0.1)		(3.4)		35.9
Other than temporary impairment losses																(20.8)		-		-		(20.8)
Other revenue																0.2		136.9		0.3		137.4
Other operating expenses																22.0		139.5		0.7		162.2
Corporate administration																0.2		-		9.5		9.7
Amortization of intangible assets																(1.0)		4.1		-		3.1
Interest expense																6.9		0.3		13.1		20.3

Earnings (losses) before income taxes															$	243.7	$	(7.2)	$	(24.2)	$	212.3


	Reinsurance Segment						Insurance Segment										Other Activities
Three Months Ended March 31, 2015	Property		Casualty & other⁽¹⁾		Total		RSUI		Cap Specialty		Pacific Comp		Total		Total Segments		Alleghany Capital		Corporate Activities⁽²⁾		Consolidated
	($ in millions)
Gross premiums written	$	271.6	$	630.6	$	902.2	$	288.2	$	54.5	$	21.5	$	364.2	$	1,266.4	$	-	$	(7.5)	$	1,258.9
Net premiums written		210.1		618.7		828.8		190.5		50.6		21.2		262.3		1,091.1		-		-		1,091.1
Net premiums earned		215.6		531.3		746.9		203.1		47.6		19.6		270.3		1,017.2		-		-		1,017.2
Net loss and LAE		63.2		343.2		406.4		100.8		24.4		15.3		140.5		546.9		-		-		546.9
Commissions, brokerage and other underwriting expenses		66.9		189.8		256.7		55.3		22.8		8.8		86.9		343.6		-		-		343.6

Underwriting profit (loss)⁽³⁾	$	85.5	$	(1.7)	$	83.8	$	47.0	$	0.4	$	(4.5)	$	42.9		126.7		-		-		126.7

Net investment income																110.8		1.0		1.6		113.4
Net realized capital gains																48.8		(0.1)		(5.6)		43.1
Other than temporary impairment losses																(52.3)		-		-		(52.3)
Other revenue																1.4		34.6		0.2		36.2
Other operating expenses																26.6		40.2		0.6		67.4
Corporate administration																0.3		-		12.4		12.7
Amortization of intangible assets																(1.8)		0.1		-		(1.7)
Interest expense																9.7		0.4		13.0		23.1

Earnings (losses) before income taxes															$	200.6	$	(5.2)	$	(29.8)	$	165.6

(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 elimination of minor reinsurance activity between segments.

(3)

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 revenue, 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.