The Company is organized into three operating segments: Insurance, Reinsurance and Life operations. The Company’s general investment and financing operations are reflected in Corporate.

The Company evaluates the performance of both the Insurance and Reinsurance segments based on underwriting profit while the Life operations segment performance is based on contribution. Other items of revenue and expenditure of the Company are not evaluated at the segment level. In addition, the Company does not allocate investment assets by segment for its Property and Casualty (“P&C”) operations. Investment assets related to the Company’s Life operations segment and certain structured products included in the Insurance and Reinsurance segments and Corporate are held in separately identified portfolios. As such, net investment income from these assets is included in the contribution from the applicable segment.

The following tables summarize the segment results for the three and six months ended June 30, 2013 and 2012:



Three Months Ended June 30, 2013 (U.S. dollars in thousands, except ratios)	Insurance			Reinsurance			Total P&C			Life Operations			Total
Gross premiums written	$	1,472,388		$	471,782		$	1,944,170		$	81,302		$	2,025,472
Net premiums written	1,049,163			410,809			1,459,972			73,896			1,533,868
Net premiums earned	1,058,542			429,955			1,488,497			73,896			1,562,393
Net losses and loss expenses	721,323			216,283			937,606			116,767			1,054,373
Acquisition costs	138,032			86,599			224,631			7,255			231,886
Operating expenses (1)	194,514			39,622			234,136			2,206			236,342
Underwriting profit (loss)	$	4,673		$	87,451		$	92,124		$	(52,332	)	$	39,792
Net investment income							143,818			70,592			214,410
Net results from structured products (2)	3,532			2,521			6,053			—			6,053
Net fee income and other (3)	(1,355		)	520			(835		)	44			(791		)
Net realized gains (losses) on investments							29,369			11,599			40,968
Contribution from P&C and Life Operations							$	270,529		$	29,903		$	300,432
Corporate & other:
Net realized & unrealized gains (losses) on derivative instruments													(5,105		)
Net income (loss) from investment fund affiliates and operating affiliates (4)													79,368
Exchange (gains) losses													(11,331		)
Corporate operating expenses													55,155
Interest expense (5)													26,121
Non-controlling interests													3,180
Income tax expense													28,872
Net income (loss) attributable to ordinary shareholders													$	272,698
Ratios – P&C operations: (6)
Loss and loss expense ratio	68.1		%	50.3		%	63.0		%
Underwriting expense ratio	31.5		%	29.4		%	30.8		%
Combined ratio	99.6		%	79.7		%	93.8		%

____________


(1)	Operating expenses exclude Corporate operating expenses, shown separately.


(2)	The net results from P&C structured products include net investment income and interest expense of $18.1 million and $12.1 million, respectively.


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


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


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


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



Three Months Ended June 30, 2012 (U.S. dollars in thousands, except ratios)	Insurance			Reinsurance			Total P&C			Life Operations			Total
Gross premiums written	$	1,311,035		$	452,417		$	1,763,452		$	92,903		$	1,856,355
Net premiums written	944,266			403,011			1,347,277			85,623			1,432,900
Net premiums earned	959,293			441,677			1,400,970			85,623			1,486,593
Net losses and loss expenses	635,282			191,072			826,354			131,149			957,503
Acquisition costs	123,285			87,722			211,007			7,930			218,937
Operating expenses (1)	192,246			41,991			234,237			2,829			237,066
Underwriting profit (loss)	$	8,480		$	120,892		$	129,372		$	(56,285	)	$	73,087
Net investment income							170,579			74,646			245,225
Net results from structured products (2)	9,047			(22,806		)	(13,759		)	—			(13,759		)
Net fee income and other (3)	256			990			1,246			42			1,288
Net realized gains (losses) on investments							(2,154		)	(10,239		)	(12,393		)
Contribution from P&C and Life Operations							$	285,284		$	8,164		$	293,448
Corporate & other:
Net realized & unrealized gains (losses) on derivative instruments													(4,301		)
Net income (loss) from investment fund affiliates and operating affiliates (4)													23,554
Exchange (gains) losses													(17,976		)
Corporate operating expenses													50,062
Interest expense (5)													26,194
Non-controlling interests													3,455
Income tax expense													29,812
Net income (loss) attributable to ordinary shareholders													$	221,154
Ratios – P&C operations: (6)
Loss and loss expense ratio	66.2		%	43.3		%	59.0		%
Underwriting expense ratio	32.9		%	29.3		%	31.8		%
Combined ratio	99.1		%	72.6		%	90.8		%

____________


(1)	Operating expenses exclude Corporate operating expenses, shown separately.


(2)	The net results from P&C structured products include net investment income and interest expense of $17.4 million and $31.2 million, respectively.


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


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


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


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



Six Months Ended June 30, 2013 (U.S. dollars in thousands, except ratios)	Insurance			Reinsurance			Total P&C			Life Operations			Total
Gross premiums written	$	2,970,175		$	1,378,911		$	4,349,086		$	154,272		$	4,503,358
Net premiums written	2,238,351			1,263,830			3,502,181			139,341			3,641,522
Net premiums earned	2,097,634			855,109			2,952,743			139,341			3,092,084
Net losses and loss expenses	1,371,840			408,850			1,780,690			227,720			2,008,410
Acquisition costs	268,654			172,133			440,787			11,358			452,145
Operating expenses (1)	378,511			80,043			458,554			4,801			463,355
Underwriting profit (loss)	$	78,629		$	194,083		$	272,712		$	(104,538	)	$	168,174
Net investment income							300,857			142,280			443,137
Net results from structured products (2)	7,717			3,512			11,229			—			11,229
Net fee income and other (3)	(3,294		)	1,152			(2,142		)	1,087			(1,055		)
Net realized gains (losses) on investments							74,947			2,530			77,477
Contribution from P&C and Life Operations							$	657,603		$	41,359		$	698,962
Corporate & other:
Net realized & unrealized gains (losses) on derivative instruments													2,780
Net income (loss) from investment fund affiliates and operating affiliates (4)													142,587
Exchange (gains) losses													(44,766		)
Corporate operating expenses													102,078
Interest expense (5)													52,257
Non-controlling interests													38,922
Income tax expense													72,351
Net income (loss) attributable to ordinary shareholders													$	623,487
Ratios – P&C operations: (6)
Loss and loss expense ratio	65.4		%	47.8		%	60.3		%
Underwriting expense ratio	30.9		%	29.5		%	30.5		%
Combined ratio	96.3		%	77.3		%	90.8		%

____________


(1)	Operating expenses exclude Corporate operating expenses, shown separately.


(2)	The net results from P&C structured products include net investment income and interest expense of $35.9 million and $24.6 million, respectively.


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


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


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


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



Six Months Ended June 30, 2012 (U.S. dollars in thousands, except ratios)	Insurance			Reinsurance			Total P&C			Life Operations			Total
Gross premiums written	$	2,647,669		$	1,432,767		$	4,080,436		$	179,586		$	4,260,022
Net premiums written	1,980,792			1,329,713			3,310,505			164,119			3,474,624
Net premiums earned	1,893,348			865,519			2,758,867			164,143			2,923,010
Net losses and loss expenses	1,266,968			413,452			1,680,420			252,455			1,932,875
Acquisition costs	251,540			175,966			427,506			15,581			443,087
Operating expenses (1)	377,593			80,738			458,331			5,436			463,767
Underwriting profit (loss)	$	(2,753	)	$	195,363		$	192,610		$	(109,329	)	$	83,281
Net investment income							343,547			149,672			493,219
Net results from structured products (2)	11,866			(20,368		)	(8,502		)	—			(8,502		)
Net fee income and other (3)	(1,764		)	1,323			(441		)	90			(351		)
Net realized gains (losses) on investments							22,812			(14,403		)	8,409
Contribution from P&C and Life Operations							$	550,026		$	26,030		$	576,056
Corporate & other:
Net realized & unrealized gains (losses) on derivative instruments													(3,598		)
Net income (loss) from investment fund affiliates and operating affiliates (4)													59,216
Exchange (gains) losses													(5,258		)
Corporate operating expenses													94,322
Interest expense (5)													53,454
Non-controlling interests													40,012
Income tax expense													51,362
Net income (loss) attributable to ordinary shareholders													$	397,782
Ratios – P&C operations: (6)
Loss and loss expense ratio	66.9		%	47.8		%	60.9		%
Underwriting expense ratio	33.2		%	29.6		%	32.1		%
Combined ratio	100.1		%	77.4		%	93.0		%

____________


(1)	Operating expenses exclude Corporate operating expenses, shown separately.


(2)	The net results from P&C structured products include net investment income and interest expense of $34.7 million and $43.2 million, respectively.


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


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


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


(6)	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 months ended June 30, 2013 and 2012:



Three Months Ended June 30, 2013 (U.S. dollars in thousands)	Insurance		Reinsurance		Life Operations		Total
P&C Operations:
Professional	$	349,807	$	50,977	$	—	$	400,784
Casualty	333,393		76,546		—		409,939
Property catastrophe	—		129,361		—		129,361
Property	135,087		132,496		—		267,583
Marine, energy, aviation and satellite	—		24,587		—		24,587
Specialty	181,133		—		—		181,133
Other (1)	59,122		15,988		—		75,110
Total P&C Operations	$	1,058,542	$	429,955	$	—	$	1,488,497
Life Operations:
Annuity	$	—	$	—	$	30,087	$	30,087
Other Life	—		—		43,809		43,809
Total Life Operations	$	—	$	—	$	73,896	$	73,896
Total	$	1,058,542	$	429,955	$	73,896	$	1,562,393

Three Months Ended June 30, 2012 (U.S. dollars in thousands)	Insurance		Reinsurance		Life Operations		Total
P&C Operations:
Professional	$	330,871	$	53,303	$	—	$	384,174
Casualty	269,534		76,836		—		346,370
Property catastrophe	—		113,221		—		113,221
Property	112,448		145,022		—		257,470
Marine, energy, aviation and satellite	—		35,631		—		35,631
Specialty	191,591		—		—		191,591
Other (1)	54,849		17,664		—		72,513
Total P&C Operations	$	959,293	$	441,677	$	—	$	1,400,970
Life Operations:
Annuity	$	—	$	—	$	31,243	$	31,243
Other Life	—		—		54,380		54,380
Total Life Operations	$	—	$	—	$	85,623	$	85,623
Total	$	959,293	$	441,677	$	85,623	$	1,486,593

____________


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

The following tables summarize the Company’s net premiums earned by line of business for the six months ended June 30, 2013 and 2012:



Six Months Ended June 30, 2013 (U.S. dollars in thousands)	Insurance		Reinsurance		Life Operations		Total
P&C Operations:
Professional	$	700,643	$	96,413	$	—	$	797,056
Casualty	656,328		153,528		—		809,856
Property catastrophe	—		243,003		—		243,003
Property	259,539		273,767		—		533,306
Marine, energy, aviation and satellite	—		52,425		—		52,425
Specialty	364,099		—		—		364,099
Other (1)	117,025		35,973		—		152,998
Total P&C Operations	$	2,097,634	$	855,109	$	—	$	2,952,743
Life Operations:
Annuity	$	—	$	—	$	59,771	$	59,771
Other Life	—		—		79,570		79,570
Total Life Operations	$	—	$	—	$	139,341	$	139,341
Total	$	2,097,634	$	855,109	$	139,341	$	3,092,084

Six Months Ended June 30, 2012 (U.S. dollars in thousands)	Insurance		Reinsurance		Life Operations		Total
P&C Operations:
Professional	$	654,692	$	108,211	$	—	$	762,903
Casualty	531,103		150,085		—		681,188
Property catastrophe	—		216,144		—		216,144
Property	238,374		280,759		—		519,133
Marine, energy, aviation and satellite	—		71,371		—		71,371
Specialty	356,043		—		—		356,043
Other (1)	113,136		38,949		—		152,085
Total P&C Operations	$	1,893,348	$	865,519	$	—	$	2,758,867
Life Operations:
Annuity	$	—	$	—	$	62,700	$	62,700
Other Life	—		—		101,443		101,443
Total Life Operations	$	—	$	—	$	164,143	$	164,143
Total	$	1,893,348	$	865,519	$	164,143	$	2,923,010

____________


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