Segment Information

The Company is organized into two operating segments: Insurance and Reinsurance. Subsequent to the transaction described in Note 3(c), "Acquisitions and Disposals - Catlin Acquisition," the underwriting results of the acquired businesses from the Acquisition Date through September 30, 2015 are included in the Company's Insurance or Reinsurance segment, as appropriate.

The Company’s general investment and financing operations are reflected in "Corporate and Other." Subsequent to the transaction described in Note 3(e), "Acquisitions and Disposals - Sale of Life Reinsurance Subsidiary," GCLR reinsures the majority of the Company's life reinsurance business through the Life Retro Arrangements. The results of the Run-Off Life Operations not subject to the Life Retro Arrangements are also reported within Corporate and Other.

The Company evaluates the performance of both the Insurance and Reinsurance segments based on underwriting profit. Other items of revenues and expenditures of the Company are not evaluated at the segment level. In addition, the Company does not allocate investment assets used to support its Property and Casualty ("P&C") operations to the individual segments, except as noted below. Investment assets related to the Company’s Run-Off Life Operations and certain structured products included in the Insurance and Reinsurance segments are held in separately identified portfolios. As such, net investment income from these assets is included in the contribution from the applicable segment or in Corporate and Other. The following tables summarize the segment results for the three and nine months ended September 30, 2015 and 2014:



Three Months Ended September 30, 2015 (U.S. dollars in thousands, except ratios)	Insurance			Reinsurance			Total P&C			Corporate and Other (1)			Total
Gross premiums written	$	2,200,196		$	458,946		$	2,659,142		$	80,208		$	2,739,350
Net premiums written	1,664,562			408,654			2,073,216			17,812			2,091,028
Net premiums earned	1,632,988			772,752			2,405,740			17,812			2,423,552
Net losses and loss expenses (2)	1,037,727			426,558			1,464,285			22,579			1,486,864
Acquisition costs (2)	214,773			189,671			404,444			4,729			409,173
Operating expenses (3)	334,211			88,682			422,893			(26		)	422,867
Underwriting profit (loss)	$	46,277		$	67,841		$	114,118		$	(9,470	)	$	104,648
Net investment income - excluding Life Funds Withheld Assets (4)							152,738			10,254			162,992
Net investment income - Life Funds Withheld Assets										46,586			46,586
Net results from structured products (5)	3,328			1,109			4,437			—			4,437
Net fee income and other (6)	(5,207		)	533			(4,674		)	254			(4,420		)
Net realized gains (losses) on investments - excluding Life Funds Withheld Assets							(197		)	(4		)	(201		)
Net realized gains (losses) on investments and net unrealized gains (losses) on investments, Trading - Life Funds Withheld Assets							—			51,608			51,608
Net realized and unrealized gains (losses) on derivative instruments							—			(7,903		)	(7,903		)
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets							—			(126,140		)	(126,140		)
Net income (loss) from investment fund affiliates and operating affiliates (7)							—			4,481			4,481
Exchange (gains) losses							—			11,661			11,661
Corporate operating expenses							—			135,500			135,500
Contribution from P&C and Corporate and Other							266,422			(177,495		)	88,927
Interest expense (8)										40,798			40,798
Non-controlling interests										57,889			57,889
Income tax expense										(37,042		)	(37,042		)
Net income (loss) attributable to ordinary shareholders													$	27,282
Ratios – P&C operations: (9)
Loss and loss expense ratio	63.5		%	55.2		%	60.9		%
Underwriting expense ratio	33.7		%	36.0		%	34.4		%
Combined ratio	97.2		%	91.2		%	95.3		%

____________


(1)	Corporate and Other includes other items of our revenues and expenditures that are not evaluated at the segment level for reporting purposes, as well as the Company's Run-Off Life Operations.


(2)	The Company has reflected the amortization of certain fair value adjustments recorded in conjunction with the Catlin Acquisition within the respective segments.


(3)	Operating expenses of the segments exclude Corporate operating expenses, shown separately.


(4)	Net investment income - excluding Life Funds Withheld Assets does not include net investment income related to the net results from structured products.


(5)	The net results from P&C structured products include net investment income and interest expense of $15.6 million and $11.1 million, respectively.


(6)	Net fee income and other includes operating expenses from the Company's loss prevention consulting services business.


(7)	The Company generally records the income related to the hedge fund affiliates and to the private investment and operating fund affiliates on a one-month and three-month lag, respectively.


(8)	Interest expense excludes interest expense related to deposit liabilities recorded in the Insurance and Reinsurance segments.


(9)	Ratios are based on net premiums earned from P&C operations.



Three Months Ended September 30, 2014 (U.S. dollars in thousands, except ratios)	Insurance			Reinsurance			Total P&C			Corporate and Other (1)			Total
Gross premiums written	$	1,324,418		$	276,284		$	1,600,702		$	83,496		$	1,684,198
Net premiums written	956,185			258,061			1,214,246			19,739			1,233,985
Net premiums earned	1,018,416			435,257			1,453,673			19,739			1,473,412
Net losses and loss expenses	650,256			209,332			859,588			20,101			879,689
Acquisition costs	95,992			84,800			180,792			2,090			182,882
Operating expenses (2)	218,281			50,637			268,918			2,785			271,703
Underwriting profit (loss)	$	53,887		$	90,488		$	144,375		$	(5,237	)	$	139,138
Net investment income - excluding Life Funds Withheld Assets (3)							141,575			11,552			153,127
Net investment income - Life Funds Withheld Assets										56,474			56,474
Net results from structured products (4)	3,571			1,720			5,291			—			5,291
Net fee income and other (5)	(3,826		)	601			(3,225		)	167			(3,058		)
Net realized gains (losses) on investments - excluding Life Funds Withheld Assets							9,418			395			9,813
Net realized gains (losses) on investments and net unrealized gains (losses) on investments, Trading - Life Funds Withheld Assets							—			(5,472		)	(5,472		)
Net realized and unrealized gains (losses) on derivative instruments							—			5,131			5,131
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets							—			(201,264		)	(201,264		)
Net income (loss) from investment fund affiliates and operating affiliates (6)							—			44,521			44,521
Exchange (gains) losses							—			(23,348		)	(23,348		)
Corporate operating expenses							—			55,322			55,322
Contribution from P&C and Corporate and Other							297,434			(125,707		)	171,727
Interest expense (7)										31,703			31,703
Non-controlling interests										37,583			37,583
Income tax expense										30,057			30,057
Net income (loss) attributable to ordinary shareholders													$	72,384
Ratios – P&C operations: (8)
Loss and loss expense ratio	63.8		%	48.1		%	59.1		%
Underwriting expense ratio	30.9		%	31.1		%	31.0		%
Combined ratio	94.7		%	79.2		%	90.1		%

____________


(1)	Corporate and Other includes other items of our revenue and expenditures that are not evaluated at the segment level for reporting purposes, as well as the Company's Run-Off Life Operations.


(2)	Operating expenses of the segments exclude Corporate operating expenses, shown separately.


(3)	Net investment income - excluding Life Funds Withheld Assets does not include net investment income related to the net results from structured products.


(4)	The net results from P&C structured products include net investment income and interest credit of $16.8 million and $11.1 million, respectively.


(5)	Net fee income and other includes operating expenses from the Company's loss prevention consulting services business.


(6)	The Company generally records the income related to the hedge fund affiliates and to the private investment and operating fund affiliates on a one-month and three-month lag, respectively.


(7)	Interest expense excludes interest expense related to deposit liabilities recorded in the Insurance and Reinsurance segments.


(8)	Ratios are based on net premiums earned from P&C operations.



Nine Months Ended September 30, 2015 (U.S. dollars in thousands, except ratios)	Insurance			Reinsurance			Total P&C			Corporate and Other (1)			Total
Gross premiums written	$	6,074,387		$	2,066,856		$	8,141,243		$	234,602		$	8,375,845
Net premiums written	4,155,442			1,854,590			6,010,032			50,576			6,060,608
Net premiums earned	4,008,200			1,780,829			5,789,029			50,576			5,839,605
Net losses and loss expenses (2)	2,551,044			834,263			3,385,307			64,047			3,449,354
Acquisition costs (2)	476,876			419,380			896,256			8,230			904,486
Operating expenses (3)	834,829			202,904			1,037,733			846			1,038,579
Underwriting profit (loss)	$	145,451		$	324,282		$	469,733		$	(22,547	)	$	447,186
Net investment income - excluding Life Funds Withheld Assets (4)							435,007			31,295			466,302
Net investment income - Life Funds Withheld Assets										143,869			143,869
Net results from structured products (5)	9,634			5,085			14,719			—			14,719
Net fee income and other (6)	(14,705		)	1,981			(12,724		)	432			(12,292		)
Net realized gains (losses) on investments - excluding Life Funds Withheld Assets							9,833			(1,081		)	8,752
Net realized gains (losses) on investments and net unrealized gains (losses) on investments, Trading - Life Funds Withheld Assets							—			145,513			145,513
Net realized and unrealized gains (losses) on derivative instruments							—			57,127			57,127
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets							—			(116,333		)	(116,333		)
Net income (loss) from investment fund affiliates and operating affiliates (7)							—			103,317			103,317
Gain on sale of operating affiliate										340,407			340,407
Exchange (gains) losses							—			49,425			49,425
Corporate operating expenses							—			328,930			328,930
Contribution from P&C and Corporate and Other							916,568			303,644			1,220,212
Interest expense (8)										121,317			121,317
Non-controlling interests										100,158			100,158
Income tax expense										20,135			20,135
Net income (loss) attributable to ordinary shareholders													$	978,602
Ratios – P&C operations: (9)
Loss and loss expense ratio	63.6		%	46.8		%	58.5		%
Underwriting expense ratio	32.8		%	35.0		%	33.4		%
Combined ratio	96.4		%	81.8		%	91.9		%

____________


(1)	Corporate and Other includes other items of our revenue and expenditures that are not evaluated at the segment level for reporting purposes, as well as the Company's Run-Off Life Operations.


(2)	The Company has reflected the amortization of certain fair value adjustments recorded in conjunction with the Catlin Acquisition within the respective segments.


(3)	Operating expenses of the segments exclude Corporate operating expenses, shown separately.


(4)	Net investment income - excluding Life Funds Withheld Assets does not include net investment income related to the net results from structured products.


(5)	The net results from P&C structured products include net investment income and interest expense of $46.7 million and $31.7 million, respectively.


(6)	Net fee income and other includes operating expenses from the Company's loss prevention consulting services business.


(7)	The Company generally records the income related to the hedge fund affiliates and to the private investment and operating fund affiliates on a one-month and three-month lag, respectively.


(8)	Interest expense excludes interest expense related to deposit liabilities recorded in the Insurance and Reinsurance segments.


(9)	Ratios are based on net premiums earned from P&C operations.



Nine Months Ended September 30, 2014 (U.S. dollars in thousands, except ratios)	Insurance			Reinsurance			Total P&C			Corporate and Other (1)			Total
Gross premiums written	$	4,513,749		$	1,627,121		$	6,140,870		$	254,503		$	6,395,373
Net premiums written	3,080,432			1,486,680			4,567,112			154,568			4,721,680
Net premiums earned	3,014,846			1,289,431			4,304,277			154,568			4,458,845
Net losses and loss expenses	1,917,076			601,897			2,518,973			218,987			2,737,960
Acquisition costs	300,855			252,909			553,764			13,151			566,915
Operating expenses (2)	635,264			139,080			774,344			8,182			782,526
Underwriting profit (loss)	$	161,651		$	295,545		$	457,196		$	(85,752	)	$	371,444
Net investment income - excluding Life Funds Withheld Assets (3)							429,657			134,562			564,219
Net investment income - Life Funds Withheld Assets										75,639			75,639
Net results from structured products (4)	40,106			8,023			48,129			—			48,129
Net fee income and other (5)	(8,605		)	1,938			(6,667		)	257			(6,410		)
Loss on sale of life reinsurance subsidiary							—			666,423			666,423
Net realized gains (losses) on investments - excluding Life Funds Withheld Assets							105,589			4,297			109,886
Net realized gains (losses) on investments and net unrealized gains (losses) on investments, Trading - Life Funds Withheld Assets							—			(13,619		)	(13,619		)
Net realized and unrealized gains (losses) on derivative instruments							—			18,540			18,540
Net realized and unrealized gains (losses) on life retrocession embedded derivative and derivative instruments - Life Funds Withheld Assets							—			(218,810		)	(218,810		)
Net income (loss) from investment fund affiliates and operating affiliates (6)							—			169,530			169,530
Exchange (gains) losses							—			8,234			8,234
Corporate operating expenses							—			163,155			163,155
Contribution from P&C and Corporate and Other							1,033,904			(753,168		)	280,736
Interest expense (7)										96,147			96,147
Non-controlling interests										77,024			77,024
Income tax expense										58,724			58,724
Net income (loss) attributable to ordinary shareholders													$	48,841
Ratios – P&C operations: (8)
Loss and loss expense ratio	63.6		%	46.7		%	58.5		%
Underwriting expense ratio	31.0		%	30.4		%	30.9		%
Combined ratio	94.6		%	77.1		%	89.4		%

____________


(1)	Corporate and Other includes other items of our revenue and expenditures that are not evaluated at the segment level for reporting purposes, as well as the Company's Run-Off Life Operations.


(2)	Operating expenses of the segments exclude Corporate operating expenses, shown separately.


(3)	Net investment income - excluding Life Funds Withheld Assets does not include net investment income related to the net results from structured products.


(4)	The net results from P&C structured products include net investment income and interest credit of $52.5 million and $3.7 million, respectively.


(5)	Net fee income and other includes operating expenses from the Company's loss prevention consulting services business.


(6)	The Company generally records the income related to the hedge fund affiliates and to the private investment and operating fund affiliates on a one-month and three-month lag, respectively.


(7)	Interest expense excludes interest expense related to deposit liabilities recorded in the Insurance and Reinsurance segments.


(8)	Ratios are based on net premiums earned from P&C operations.

The following tables summarize the Company’s net premiums earned by line of business for the three and nine months ended September 30, 2015 and 2014:



Three Months Ended September 30, 2015 (U.S. dollars in thousands)	Insurance		Reinsurance		Corporate and Other		Total
P&C Operations:
Professional	$	299,639	$	46,877	$	—	$	346,516
Casualty	473,777		141,135		—		614,912
Property catastrophe	—		205,337		—		205,337
Property	320,878		271,297		—		592,175
Marine, energy, aviation and satellite	—		36,345		—		36,345
Specialty	462,029		—		—		462,029
Other (1)	76,665		71,761		—		148,426
Total P&C Operations	$	1,632,988	$	772,752	$	—	$	2,405,740
Corporate and Other:
Run-off Life operations - Annuity	$	—	$	—	$	—	$	—
Run-off Life operations - Other Life	—		—		17,812		17,812
Total Corporate and Other	$	—	$	—	$	17,812	$	17,812
Total	$	1,632,988	$	772,752	$	17,812	$	2,423,552

Three Months Ended September 30, 2014 (U.S. dollars in thousands)	Insurance		Reinsurance		Corporate and Other		Total
P&C Operations:
Professional	$	269,275	$	45,221	$	—	$	314,496
Casualty	358,505		66,638		—		425,143
Property catastrophe	—		103,813		—		103,813
Property	139,663		155,415		—		295,078
Marine, energy, aviation and satellite	—		30,511		—		30,511
Specialty	186,360		—		—		186,360
Other (1)	64,613		33,659		—		98,272
Total P&C Operations	$	1,018,416	$	435,257	$	—	$	1,453,673
Corporate and Other:
Run-off Life operations - Annuity	$	—	$	—	$	2	$	2
Run-off Life operations - Other Life	—		—		19,737		19,737
Total Corporate and Other	$	—	$	—	$	19,739	$	19,739
Total	$	1,018,416	$	435,257	$	19,739	$	1,473,412

____________


(1)	Other within the Insurance segment includes: excess and surplus, programs, surety, structured indemnity and certain discontinued lines. Other within the Reinsurance segment includes: whole account contracts, accident and health and other lines.



Nine Months Ended September 30, 2015 (U.S. dollars in thousands)	Insurance		Reinsurance		Corporate and Other		Total
P&C Operations:
Professional	$	852,398	$	125,110	$	—	$	977,508
Casualty	1,203,584		325,130		—		1,528,714
Property catastrophe	—		462,862		—		462,862
Property	708,275		634,419		—		1,342,694
Marine, energy, aviation and satellite	—		86,969		—		86,969
Specialty	1,014,147		—		—		1,014,147
Other (1)	229,796		146,339		—		376,135
Total P&C Operations	$	4,008,200	$	1,780,829	$	—	$	5,789,029
Corporate and Other:
Run-off Life operations - Annuity	$	—	$	—	$	—	$	—
Run-off Life operations - Other Life	—		—		50,576		50,576
Total Corporate and Other	$	—	$	—	$	50,576	$	50,576
Total	$	4,008,200	$	1,780,829	$	50,576	$	5,839,605

Nine Months Ended September 30, 2014 (U.S. dollars in thousands)	Insurance		Reinsurance		Corporate and Other		Total
P&C Operations:
Professional	$	812,211	$	139,564	$	—	$	951,775
Casualty	1,061,499		226,288		—		1,287,787
Property catastrophe	—		324,812		—		324,812
Property	422,270		432,991		—		855,261
Marine, energy, aviation and satellite	—		75,090		—		75,090
Specialty	543,217		—		—		543,217
Other (1)	175,649		90,686		—		266,335
Total P&C Operations	$	3,014,846	$	1,289,431	$	—	$	4,304,277
Corporate and Other:
Run-off Life operations - Annuity	$	—	$	—	$	53,363	$	53,363
Run-off Life operations - Other Life	—		—		101,205		101,205
Total Corporate and Other	$	—	$	—	$	154,568	$	154,568
Total	$	3,014,846	$	1,289,431	$	154,568	$	4,458,845

____________


(1)	Other within the Insurance segment includes: excess and surplus, programs, surety, structured indemnity and certain discontinued lines. Other within the Reinsurance segment includes: whole account contracts, accident and health and other lines.