NOTE 2. SEGMENT INFORMATION

We report our results of operations consistent with the manner in which our Chief Operating Decision Maker reviews the business to assess performance through our reporting segments: U.S. Insurance, International Insurance (“Int’l Insurance”), Global Reinsurance (“GlobalRe”) and Corporate.

We classify our business into three underwriting segments: U.S. Insurance, Int’l Insurance and GlobalRe. Both the U.S. Insurance and Int’l Insurance reporting segments are each comprised of three operating segments: Marine, P&C and Professional Liability.

We evaluate the performance of each of the underwriting segments based on underwriting results. Underwriting results are measured based on Underwriting Profit or Loss and the related Combined Ratio, which are both measures of underwriting profitability. Underwriting Profit (Loss) is calculated from Net Earned Premiums less the sum of Net Losses and LAE, Commission Expenses, Other Operating Expenses and Other Underwriting Income (Expense). The Combined Ratio is derived by dividing the sum of Net Losses and LAE, Commission Expenses, Other Operating Expenses and Other Underwriting Income (Expense) by Net Earned Premiums. A Combined Ratio of less than 100% indicates an Underwriting Profit and greater than 100% indicates an Underwriting Loss. Our underwriting performance is evaluated separately from the rest of our operations.

The performance of our investment portfolios, our liquidity and capital resource needs, our foreign currency exposure and our tax planning strategies are evaluated on a consolidated basis within our Corporate segment. We do not allocate our assets by underwriting segment as we evaluate the underwriting results of these segments separately from the results of our investments portfolio.

The following tables set forth the financial data by segment for the years ended December 31, 2017, 2016 and 2015:

	Year Ended December 31, 2017
	U.S.			Int'l
amounts in thousands	Insurance			Insurance			GlobalRe			Corporate ⁽¹⁾			Total
Net Earned Premiums	$	674,665		$	333,792		$	177,963		$	—		$	1,186,420
Net Losses and LAE		(443,353	)		(229,601	)		(133,311	)		—			(806,265	)
Commission Expenses		(77,729	)		(68,824	)		(39,136	)		958			(184,731	)
Other Operating Expenses		(128,905	)		(83,464	)		(20,861	)		—			(233,230	)
Other Underwriting Income (Expense)		461			—			565			(958	)		68
Underwriting Profit (Loss)	$	25,139		$	(48,097	)	$	(14,780	)	$	—		$	(37,738	)
Net Investment Income											89,293			89,293
Net Realized Gains											43,009			43,009
Interest Expense											(15,447	)		(15,447	)
Other Loss											(4,311	)		(4,311	)
Income (Loss) Before Income Taxes	$	25,139		$	(48,097	)	$	(14,780	)	$	112,544		$	74,806
Income Tax Expense											(34,312	)		(34,312	)
Net Income													$	40,494
Losses and LAE ratio		65.7	%		68.8	%		74.9	%					68.0	%
Commission Expense Ratio		11.5	%		20.6	%		22.0	%					15.6	%
Other Operating Expense Ratio ⁽²⁾		19.1	%		25.0	%		11.4	%					19.6	%
Combined Ratio		96.3	%		114.4	%		108.3	%					103.2	%

(1) - Includes Corporate segment intercompany eliminations.

(2) - Includes Other Operating Expenses and Other Underwriting Income (Expense).

	Year Ended December 31, 2016
	U.S.			Int'l
amounts in thousands	Insurance			Insurance			GlobalRe			Corporate ⁽¹⁾			Total
Net Earned Premiums	$	629,308		$	307,416		$	163,621		$	—		$	1,100,345
Net Losses and LAE		(397,860	)		(178,284	)		(89,304	)		—			(665,448	)
Commission Expenses		(70,812	)		(61,703	)		(34,008	)		1,478			(165,045	)
Other Operating Expenses		(128,108	)		(86,395	)		(19,593	)		—			(234,096	)
Other Underwriting Income (Expense)		1,092			—			522			(1,478	)		136
Underwriting Profit (Loss)	$	33,620		$	(18,966	)	$	21,238		$	—		$	35,892
Net Investment Income											79,451			79,451
Net Realized Gains											9,036			9,036
Interest Expense											(15,435	)		(15,435	)
Other Income											8,565			8,565
Income (Loss) Before Income Taxes	$	33,620		$	(18,966	)	$	21,238		$	81,617		$	117,509
Income Tax Expense											(34,783	)		(34,783	)
Net Income													$	82,726
Losses and LAE ratio		63.2	%		58.0	%		54.6	%					60.5	%
Commission Expense Ratio		11.3	%		20.1	%		20.8	%					15.0	%
Other Operating Expense Ratio ⁽²⁾		20.2	%		28.1	%		11.6	%					21.2	%
Combined Ratio		94.7	%		106.2	%		87.0	%					96.7	%

(1) - Includes Corporate segment intercompany eliminations.

(2) - Includes Other Operating Expenses and Other Underwriting Income (Expense).

	Year Ended December 31, 2015
	U.S.			Int'l
amounts in thousands	Insurance			Insurance			GlobalRe			Corporate ⁽¹⁾			Total
Net Earned Premiums	$	555,836		$	259,960		$	168,291		$	—		$	984,087
Net Losses and LAE		(343,497	)		(134,702	)		(94,399	)		—			(572,598	)
Commission Expenses		(56,319	)		(43,676	)		(32,240	)		2,258			(129,977	)
Other Operating Expenses		(131,407	)		(75,867	)		(16,242	)		—			(223,516	)
Other Underwriting Income (Expense)		1,690			—			690			(2,258	)		122
Underwriting Profit	$	26,303		$	5,715		$	26,100		$	—		$	58,118
Net Investment Income											68,718			68,718
Net Realized Gains											6,675			6,675
Interest Expense											(15,424	)		(15,424	)
Other Loss											(613	)		(613	)
Income Before Income Taxes	$	26,303		$	5,715		$	26,100		$	59,356		$	117,474
Income Tax Expense											(36,417	)		(36,417	)
Net Income													$	81,057
Losses and LAE ratio		61.8	%		51.8	%		56.1	%					58.2	%
Commission Expense Ratio		10.1	%		16.8	%		19.2	%					13.2	%
Other Operating Expense Ratio ⁽²⁾		23.4	%		29.2	%		9.2	%					22.7	%
Combined Ratio		95.3	%		97.8	%		84.5	%					94.1	%

(1) - Includes Corporate segment intercompany eliminations.

(2) - Includes Other Operating Expenses and Other Underwriting Income (Expense).

The following tables provide additional financial data by operating segment for the years ended December 31, 2017, 2016 and 2015:

	Year Ended December 31, 2017
amounts in thousands	Gross written premiums		Ceded written premiums			Net written premiums		Net earned premiums
U.S. Insurance
Marine	$	156,171	$	(72,431	)	$	83,740	$	86,605
P&C		713,539		(173,501	)		540,038		495,260
Professional Liability		118,583		(21,061	)		97,522		92,800
Total	$	988,293	$	(266,993	)	$	721,300	$	674,665
Int'l Insurance
Marine	$	198,241	$	(42,018	)	$	156,223	$	152,396
P&C		159,123		(85,298	)		73,825		88,517
Professional Liability		143,766		(37,962	)		105,804		92,879
Total	$	501,130	$	(165,278	)	$	335,852	$	333,792
GlobalRe	$	223,842	$	(9,664	)	$	214,178	$	177,963
Total	$	1,713,265	$	(441,935	)	$	1,271,330	$	1,186,420

	Year Ended December 31, 2016
amounts in thousands	Gross written premiums		Ceded written premiums			Net written premiums		Net earned premiums
U.S. Insurance
Marine	$	169,405	$	(70,858	)	$	98,547	$	100,132
P&C		631,562		(135,888	)		495,674		453,673
Professional Liability		118,428		(29,081	)		89,347		75,503
Total	$	919,395	$	(235,827	)	$	683,568	$	629,308

Int'l Insurance
Marine	$	183,228	$	(40,092	)	$	143,136	$	141,593
P&C		181,094		(69,606	)		111,488		89,455
Professional Liability		120,149		(28,806	)		91,343		76,368
Total	$	484,471	$	(138,504	)	$	345,967	$	307,416

GlobalRe	$	165,045	$	(8,356	)	$	156,689	$	163,621

Total	$	1,568,911	$	(382,687	)	$	1,186,224	$	1,100,345

	Year Ended December 31, 2015
amounts in thousands	Gross written premiums		Ceded written premiums			Net written premiums		Net earned premiums
U.S. Insurance
Marine	$	158,124	$	(61,916	)	$	96,208	$	96,082
P&C		596,673		(152,168	)		444,505		401,408
Professional Liability		110,984		(54,691	)		56,293		58,346
Total	$	865,781	$	(268,775	)	$	597,006	$	555,836
Int'l Insurance
Marine	$	183,707	$	(36,515	)	$	147,192	$	149,256
P&C		130,729		(67,722	)		63,007		55,320
Professional Liability		97,511		(29,768	)		67,743		55,384
Total	$	411,947	$	(134,005	)	$	277,942	$	259,960
GlobalRe	$	175,774	$	(6,862	)	$	168,912	$	168,291
Total	$	1,453,502	$	(409,642	)	$	1,043,860	$	984,087

The following is a summary of our Company's Gross Written Premiums allocated based on the location of the insured's head office:

	Years Ended December 31,
amounts in thousands	2017		2016		2015
United States	$	1,203,695	$	1,101,337	$	1,057,895
Worldwide (Excluding the United States)		509,570		467,574		395,607
Total	$	1,713,265	$	1,568,911	$	1,453,502

The assets of our Company are reviewed in total by management for purposes of decision making.