Results for Alleghany’s two reportable segments and for other activities for the three and six months ended June 30, 2016 and 2015 are shown in the tables below:


	Reinsurance Segment						Insurance Segment										Other Activities
Three Months Ended June 30, 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	$	389.9	$	712.4	$	1,102.3	$	307.7	$	70.0	$	34.0	$	411.7	$	1,514.0	$	-	$	(4.7)	$	1,509.3
Net premiums written		315.1		695.4		1,010.5		224.5		65.7		33.6		323.8		1,334.3		-		-		1,334.3
Net premiums earned		290.2		689.9		980.1		188.3		58.6		34.5		281.4		1,261.5		-		-		1,261.5
Net loss and LAE		201.3		448.1		649.4		109.1		30.9		25.9		165.9		815.3		-		-		815.3
Commissions, brokerage and other underwriting expenses		92.2		226.5		318.7		54.7		25.9		9.6		90.2		408.9		-		-		408.9

Underwriting profit (loss)⁽³⁾	$	(3.3)	$	15.3	$	12.0	$	24.5	$	1.8	$	(1.0)	$	25.3		37.3		-		-		37.3

Net investment income																105.1		-		1.8		106.9
Net realized capital gains																41.0		13.0		-		54.0
Other than temporary impairment losses																(5.7)		-		-		(5.7)
Other revenue																3.3		161.8		0.3		165.4
Other operating expenses																19.5		164.9		0.6		185.0
Corporate administration																0.5		-		13.0		13.5
Amortization of intangible assets																(0.7)		6.1		-		5.4
Interest expense																6.9		0.3		13.3		20.5

Earnings (losses) before income taxes															$	154.8	$	3.5	$	(24.8)	$	133.5


	Reinsurance Segment						Insurance Segment										Other Activities
Three Months Ended June 30, 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	$	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)⁽³⁾	$	92.9	$	0.1	$	93.0	$	32.0	$	(5.8)	$	(3.9)	$	22.3		115.3		-		-		115.3

Net investment income																103.3		(1.2)		1.0		103.1
Net realized capital gains																86.2		0.1		(0.1)		86.2
Other than temporary impairment losses																(7.3)		-		-		(7.3)
Other revenue																1.0		42.5		0.3		43.8
Other operating expenses																16.8		46.3		0.7		63.8
Corporate administration																0.2		-		9.6		9.8
Amortization of intangible assets																(1.1)		0.1		-		(1.0)
Interest expense																9.7		0.4		13.3		23.4

Earnings (losses) before income taxes															$	272.9	$	(5.4)	$	(22.4)	$	245.1


	Reinsurance Segment						Insurance Segment										Other Activities
Six Months Ended June 30, 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	$	773.1	$	1,471.6	$	2,244.7	$	564.6	$	132.9	$	68.1	$	765.6	$	3,010.3	$	-	$	(11.5)	$	2,998.8
Net premiums written		624.6		1,441.9		2,066.5		398.1		124.5		67.4		590.0		2,656.5		-		-		2,656.5
Net premiums earned		543.3		1,375.8		1,919.1		380.6		114.2		69.2		564.0		2,483.1		-		-		2,483.1
Net loss and LAE		297.3		878.2		1,175.5		194.2		57.9		52.4		304.5		1,480.0		-		-		1,480.0
Commissions, brokerage and other underwriting expenses		170.2		465.9		636.1		107.9		52.4		19.3		179.6		815.7		-		-		815.7

Underwriting profit (loss)⁽³⁾	$	75.8	$	31.7	$	107.5	$	78.5	$	3.9	$	(2.5)	$	79.9		187.4		-		-		187.4

Net investment income																207.8		-		3.9		211.7
Net realized capital gains																80.4		12.9		(3.4)		89.9
Other than temporary impairment losses																(26.5)		-		-		(26.5)
Other revenue																3.5		298.7		0.6		302.8
Other operating expenses																41.5		304.4		1.2		347.1
Corporate administration																0.6		-		22.6		23.2
Amortization of intangible assets																(1.8)		10.2		-		8.4
Interest expense																13.8		0.6		26.3		40.7

Earnings (losses) before income taxes															$	398.5	$	(3.6)	$	(49.0)	$	345.9


	Reinsurance Segment						Insurance Segment										Other Activities
Six Months Ended June 30, 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	$	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)⁽³⁾	$	178.4	$	(1.6)	$	176.8	$	79.0	$	(5.3)	$	(8.5)	$	65.2		242.0		-		-		242.0

Net investment income																214.0		(0.2)		2.7		216.5
Net realized capital gains																135.0		-		(5.7)		129.3
Other than temporary impairment losses																(59.6)		-		-		(59.6)
Other revenue																2.5		77.1		0.3		79.9
Other operating expenses																43.5		86.5		1.2		131.2
Corporate administration																0.4		-		22.1		22.5
Amortization of intangible assets																(3.0)		0.2		0.1		(2.7)
Interest expense																19.5		0.8		26.2		46.5

Earnings (losses) before income taxes															$	473.5	$	(10.6)	$	(52.3)	$	410.6

(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.