Segments

3 Months Ended

Mar. 31, 2013

Segments [Abstract]

Segments

(10) Segments

We report HCC's results in six operating segments, including the following five insurance underwriting segments:

• U.S. Property & Casualty
• Professional Liability
• Accident & Health
• U.S. Surety & Credit
• International

The Investing segment includes our consolidated investment portfolio, as well as all investment income, investment related expenses, realized investment gains and losses, and other-than-temporary impairment credit losses on investments. All investment activity is reported as revenue, consistent with our consolidated presentation.

In addition to our segments, we include a Corporate & Other category to reconcile segment results to consolidated totals. The Corporate & Other category includes corporate operating expenses not allocable to the segments, interest expense on long-term debt, foreign currency expense/benefit, and underwriting results of our Exited Lines.

Our Exited Lines include product lines that we no longer write and do not expect to write in the future.In the third quarter of 2012, we exited the HMO and medical excess reinsurance businesses that had previously been included in our Accident & Health segment. We have adjusted all prior financial data to report these two product lines in Exited Lines for the 2012 period presented herein.

The following tables present information by business segment.

			U.S. Property & Casualty		Professional Liability		Accident & Health		U.S. Surety & Credit		International		Investing		Corporate & Other		Consolidated
Three months ended March 31, 2013
Net earned premium			$	93,531	$	92,779	$	217,125	$	47,177	$	105,142	$	0	$	5,432	$	561,186
Other revenue				7,184		(414)		1,190		237		778		64,335		(130)		73,180
	Segment revenue			100,715		92,365		218,315		47,414		105,920		64,335		5,302		634,366
Loss and LAE				52,156		56,386		160,427		13,214		45,919		0		4,595		332,697
Other expense				27,305		17,748		31,126		26,279		35,709		0		12,106		150,273
	Segment expense			79,461		74,134		191,553		39,493		81,628		-		16,701		482,970
		Segment pretax earnings (loss)	$	21,254	$	18,231	$	26,762	$	7,921	$	24,292	$	64,335	$	(11,399)	$	151,396

Three months ended March 31, 2012
Net earned premium			$	89,018	$	101,438	$	206,881	$	47,729	$	91,284	$	0	$	10,791	$	547,141
Other revenue				2,363		133		1,337		215		1,194		57,181		(41)		62,382
	Segment revenue			91,381		101,571		208,218		47,944		92,478		57,181		10,750		609,523
Loss and LAE				49,261		69,155		152,522		11,033		37,767		0		9,190		328,928
Other expense				29,722		17,531		30,154		28,120		32,153		0		25,955		163,635
	Segment expense			78,983		86,686		182,676		39,153		69,920		-		35,145		492,563
		Segment pretax earnings (loss)	$	12,398	$	14,885	$	25,542	$	8,791	$	22,558	$	57,181	$	(24,395)	$	116,960