The following tables present the results for Alleghany’s three reportable segments and for corporate activities for the three and six months ended June 30, 2018 and 2017:


	Reinsurance Segment						Insurance Segment
Three Months Ended June 30, 2018	Property		Casualty & Other⁽¹⁾		Total		RSUI		Cap Specialty		Total		Subtotal		Alleghany Capital			Total Segments		Corporate Activities⁽²⁾			Consolidated
	($ in millions)
Gross premiums written	$	345.1	$	726.6	$	1,071.7	$	318.8	$	88.7	$	407.5	$	1,479.2	$	-		$	1,479.2	$	(6.5	)	$	1,472.7
Net premiums written		275.9		700.7		976.6		216.9		82.3		299.2		1,275.8		-			1,275.8		-			1,275.8
Net premiums earned		292.1		689.2		981.3		184.7		71.0		255.7		1,237.0		-			1,237.0		-			1,237.0
Net loss and LAE		153.5		440.0		593.5		105.7		39.0		144.7		738.2		-			738.2		-			738.2
Commissions, brokerage and other underwriting expenses		94.8		223.2		318.0		53.7		30.4		84.1		402.1		-			402.1		-			402.1

Underwriting profit⁽³⁾	$	43.8	$	26.0	$	69.8	$	25.3	$	1.6	$	26.9		96.7		-			96.7		-			96.7

Net investment income														121.1		1.2			122.3		4.0			126.3
Change in the fair value of equity securities														146.8		-			146.8		38.4			185.2
Net realized capital gains														6.8		(0.1	)		6.7		(0.2	)		6.5
Other than temporary impairment losses														-		-			-		-			-
Noninsurance revenue														4.7		329.0			333.7		9.0			342.7
Other operating expenses														19.9		314.5			334.4		8.8			343.2
Corporate administration														0.8		-			0.8		13.3			14.1
Amortization of intangible assets														0.2		5.8			6.0		-			6.0
Interest expense														6.9		2.3			9.2		13.1			22.3

Earnings before income taxes													$	348.3	$	7.5		$	355.8	$	16.0		$	371.8


	Reinsurance Segment						Insurance Segment
Three Months Ended June 30, 2017	Property		Casualty & Other⁽¹⁾		Total		RSUI		Cap Specialty		Pacific Comp		Total		Subtotal			Alleghany Capital			Total Segments			Corporate Activities⁽²⁾			Consolidated
													($ in millions)
Gross premiums written	$	369.1	$	676.3	$	1,045.4	$	295.1	$	73.3	$	41.9	$	410.3	$	1,455.7		$	-		$	1,455.7		$	(5.7	)	$	1,450.0
Net premiums written		317.2		661.6		978.8		204.6		68.4		41.3		314.3		1,293.1			-			1,293.1			-			1,293.1
Net premiums earned		270.5		686.9		957.4		178.5		64.1		43.9		286.5		1,243.9			-			1,243.9			-			1,243.9
Net loss and LAE		122.9		450.1		573.0		93.8		35.6		32.5		161.9		734.9			-			734.9			-			734.9
Commissions, brokerage and other underwriting expenses		87.9		234.3		322.2		53.0		27.2		11.3		91.5		413.7			-			413.7			-			413.7

Underwriting profit⁽³⁾	$	59.7	$	2.5	$	62.2	$	31.7	$	1.3	$	0.1	$	33.1		95.3			-			95.3			-			95.3

Net investment income																98.0			0.2			98.2			3.5			101.7
Change in the fair value of equity securities																-			-			-			-			-
Net realized capital gains																9.2			0.2			9.4			(0.1	)		9.3
Other than temporary impairment losses																(3.8	)		-			(3.8	)		-			(3.8	)
Noninsurance revenue																3.3			192.8			196.1			6.7			202.8
Other operating expenses																25.9			189.4			215.3			9.9			225.2
Corporate administration																0.8			-			0.8			13.6			14.4
Amortization of intangible assets																(0.4	)		5.0			4.6			-			4.6
Interest expense																6.8			1.0			7.8			13.2			21.0

Earnings (losses) before income taxes															$	168.9		$	(2.2	)	$	166.7		$	(26.6	)	$	140.1


	Reinsurance Segment						Insurance Segment
Six Months Ended June 30, 2018	Property		Casualty & Other⁽¹⁾		Total		RSUI		Cap Specialty		Total		Subtotal			Alleghany Capital		Total Segments			Corporate Activities⁽²⁾			Consolidated
											($ in millions)
Gross premiums written	$	742.3	$	1,445.0	$	2,187.3	$	593.4	$	163.2	$	756.6	$	2,943.9		$	-	$	2,943.9		$	(12.4	)	$	2,931.5
Net premiums written		581.0		1,392.7		1,973.7		403.8		151.7		555.5		2,529.2			-		2,529.2			-			2,529.2
Net premiums earned		567.2		1,374.3		1,941.5		365.6		137.7		503.3		2,444.8			-		2,444.8			-			2,444.8
Net loss and LAE		250.1		882.8		1,132.9		202.6		73.3		275.9		1,408.8			-		1,408.8			-			1,408.8
Commissions, brokerage and other underwriting expenses		187.9		452.1		640.0		107.2		61.2		168.4		808.4			-		808.4			-			808.4

Underwriting profit⁽³⁾	$	129.2	$	39.4	$	168.6	$	55.8	$	3.2	$	59.0		227.6			-		227.6			-			227.6

Net investment income														239.4			3.1		242.5			7.9			250.4
Change in the fair value of equity securities														132.7			-		132.7			9.9			142.6
Net realized capital gains														50.7			0.5		51.2			(0.2	)		51.0
Other than temporary impairment losses														(0.5	)		-		(0.5	)		-			(0.5	)
Noninsurance revenue														10.4			571.7		582.1			12.3			594.4
Other operating expenses														37.0			554.4		591.4			16.7			608.1
Corporate administration														0.5			-		0.5			21.4			21.9
Amortization of intangible assets														-			11.2		11.2			-			11.2
Interest expense														13.6			3.6		17.2			26.6			43.8

Earnings (losses) before income taxes													$	609.2		$	6.1	$	615.3		$	(34.8	)	$	580.5


	Reinsurance Segment							Insurance Segment
Six Months Ended June 30, 2017	Property		Casualty & Other⁽¹⁾			Total		RSUI		Cap Specialty		Pacific Comp			Total		Subtotal			Alleghany Capital			Total Segments			Corporate Activities⁽²⁾			Consolidated
															($ in millions)
Gross premiums written	$	744.5	$	1,356.6		$	2,101.1	$	559.6	$	138.8	$	82.6		$	781.0	$	2,882.1		$	-		$	2,882.1		$	(11.2	)	$	2,870.9
Net premiums written		602.4		1,325.8			1,928.2		387.2		129.4		81.4			598.0		2,526.2			-			2,526.2			-			2,526.2
Net premiums earned		557.3		1,326.2			1,883.5		361.2		126.2		82.2			569.6		2,453.1			-			2,453.1			-			2,453.1
Net loss and LAE		244.7		885.4			1,130.1		174.4		68.7		61.0			304.1		1,434.2			-			1,434.2			-			1,434.2
Commissions, brokerage and other underwriting expenses		178.7		459.0			637.7		107.9		54.9		21.7			184.5		822.2			-			822.2			-			822.2

Underwriting profit (loss)⁽³⁾	$	133.9	$	(18.2	)	$	115.7	$	78.9	$	2.6	$	(0.5	)	$	81.0		196.7			-			196.7			-			196.7

Net investment income																		210.3			0.5			210.8			6.4			217.2
Change in the fair value of equity securities																		-			-			-			-			-
Net realized capital gains																		69.4			0.1			69.5			(0.6	)		68.9
Other than temporary impairment losses																		(7.0	)		-			(7.0	)		-			(7.0	)
Noninsurance revenue																		5.8			337.6			343.4			10.7			354.1
Other operating expenses																		49.1			331.0			380.1			20.2			400.3
Corporate administration																		1.6			-			1.6			29.7			31.3
Amortization of intangible assets																		(0.9	)		9.3			8.4			-			8.4
Interest expense																		13.6			1.8			15.4			26.5			41.9

Earnings (losses) before income taxes																	$	411.8		$	(3.9	)	$	407.9		$	(59.9	)	$	348.0

(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, change in the fair value of equity securities, net realized capital gains, OTTI losses,

noninsurance 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 reinsurance and insurance 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.