12. SEGMENT REPORTING

The U.S. Reinsurance operation writes property and casualty reinsurance and specialty lines of business, including Marine, Aviation, Surety and Accident and Health ("A&H") business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies primarily within the U.S. The International operation writes non-U.S. property and casualty reinsurance through Everest Re's branches in Canada, Singapore and through offices in Brazil, Miami and New Jersey. The Insurance operation writes property and casualty insurance directly and through brokers, surplus lines brokers and general agents mainly within the U.S.

These segments are managed independently, but conform with corporate guidelines with respect to pricing, risk management, control of aggregate catastrophe exposures, capital, investments and support operations. Management generally monitors and evaluates the financial performance of these operating segments based upon their underwriting results.

Underwriting results include earned premium less losses and LAE incurred, commission and brokerage expenses and other underwriting expenses. We measure our underwriting results using ratios, in particular loss, commission and brokerage and other underwriting expense ratios, which, respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned.

The Company does not maintain separate balance sheet data for its operating segments. Accordingly, the Company does not review and evaluate the financial results of its operating segments based upon balance sheet data.

The following tables present the underwriting results for the operating segments for the periods indicated:


	Three Months Ended					Six Months Ended
U.S. Reinsurance	June 30,					June 30,
(Dollars in thousands)	2019		2018			2019		2018
Gross written premiums	$	641,763	$	652,110		$	1,405,903	$	1,296,332
Net written premiums		487,694		429,931			1,105,835		853,762

Premiums earned	$	605,136	$	467,509		$	1,180,040	$	908,894
Incurred losses and LAE		367,473		708,524			684,111		1,009,728
Commission and brokerage		172,589		148,711			339,692		276,031
Other underwriting expenses		15,728		15,472			31,319		32,358
Underwriting gain (loss)	$	49,346	$	(405,198	)	$	124,918	$	(409,223	)


	Three Months Ended					Six Months Ended
International	June 30,					June 30,
(Dollars in thousands)	2019		2018			2019		2018
Gross written premiums	$	372,671	$	398,714		$	761,642	$	765,738
Net written premiums		350,219		337,357			708,077		672,232

Premiums earned	$	353,086	$	343,133		$	675,460	$	672,072
Incurred losses and LAE		213,808		259,487			450,884		435,846
Commission and brokerage		85,974		84,379			155,836		162,773
Other underwriting expenses		9,632		9,869			18,097		19,955
Underwriting gain (loss)	$	43,672	$	(10,602	)	$	50,643	$	53,498


	Three Months Ended				Six Months Ended
Insurance	June 30,				June 30,
(Dollars in thousands)	2019		2018		2019		2018
Gross written premiums	$	673,603	$	581,460	$	1,205,374	$	1,036,445
Net written premiums		481,952		423,066		898,196		771,387

Premiums earned	$	417,401	$	369,194	$	790,577	$	714,880
Incurred losses and LAE		261,941		260,749		504,323		496,441
Commission and brokerage		58,212		54,912		109,465		105,655
Other underwriting expenses		57,991		48,885		112,317		99,264
Underwriting gain (loss)	$	39,257	$	4,648	$	64,472	$	13,520

The following table reconciles the underwriting results for the operating segments to income (loss) before taxes as reported in the consolidated statements of operations and comprehensive income (loss) for the periods indicated:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in thousands)	2019			2018			2019			2018
Underwriting gain (loss)	$	132,275		$	(411,152	)	$	240,033		$	(342,205	)
Net investment income		90,709			72,070			175,243			141,979
Net realized capital gains (losses)		142,563			(42,271	)		277,619			(102,472	)
Corporate expense		(2,519	)		(1,513	)		(4,170	)		(5,109	)
Interest, fee and bond issue cost amortization expense		(9,684	)		(7,623	)		(19,512	)		(14,936	)
Other income (expense)		(3,812	)		77,682			(5,026	)		2,805
Income (loss) before taxes	$	349,532		$	(312,807	)	$	664,187		$	(319,938	)

The Company produces business in the U.S. and internationally. The net income deriving from assets residing in the individual foreign countries in which the Company writes business are not identifiable in the Company's financial records. Based on gross written premium, the table below presents the largest country, other than the U.S., in which the Company writes business, for the periods indicated:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2019		2018		2019		2018
Canada gross written premiums	$	47,206	$	44,189	$	86,256	$	84,581

No other country represented more than 5% of the Company's revenues.