Segment Reporting

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Reporting

12. SEGMENT REPORTING

The Reinsurance operation writes worldwide property and casualty reinsurance and specialty lines of business, on

both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies. 

Business is written in the United States as well as through branches in Canada and Singapore. The Insurance

operation writes property and casualty insurance directly and through brokers, surplus lines brokers and general

agents within the United States. 

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. The Company measures its 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 September 30, 2022

Nine Months Ended September 30, 2022

(Dollars in millions)

Reinsurance

Insurance

Total 

Reinsurance

Insurance

Total 

Gross written premiums

$

1,681

$

905

$

2,585

$

4,454

$

2,773

$

7,227

Net written premiums

1,506

722

2,228

3,936

2,083

6,019

Premiums earned

$

1,398

$

706

$

2,104

$

3,902

$

1,985

$

5,887

Incurred losses and LAE

1,531

564

2,094

3,227

1,398

4,624

Commission and brokerage

337

85

423

985

231

1,216

Other underwriting expenses

33

94

127

97

269

365

Underwriting gain (loss)

$

(504)

$

(37)

$

(541)

$

(406)

$

87

$

(319)

Net investment income

124

457

Net gains (losses) on investments

(237)

(842)

Corporate expense

(5)

(17)

Interest, fee and bond issue cost amortization expense

(26)

(74)

Other income (expense) 

7

(2)

Income (loss) before taxes

$

(677)

$

(796)

(Some amounts may not reconcile due to rounding)

Three Months Ended September 30, 2021

Nine Months Ended September 30, 2021

(Dollars in millions)

Reinsurance

Insurance

Total 

Reinsurance

Insurance

Total 

Gross written premiums

$

1,693

$

831

$

2,524

$

4,552

$

2,422

$

6,974

Net written premiums

1,461

608

2,069

3,961

1,802

5,763

Premiums earned

$

1,280

$

571

$

1,851

$

3,690

$

1,625

$

5,315

Incurred losses and LAE

1,208

445

1,653

2,917

1,185

4,103

Commission and brokerage

320

69

389

935

190

1,126

Other underwriting expenses

32

77

110

101

228

329

Underwriting gain (loss)

$

(279)

$

(21)

$

(300)

$

(264)

$

22

$

(243)

Net investment income

197

593

Net gains (losses) on investments

(51)

267

Corporate expense

(11)

(23)

Interest, fee and bond issue cost amortization expense

(16)

(47)

Other income (expense) 

10

12

Income (loss) before taxes

$

(171)

$

560

(Some amounts may not reconcile due to rounding)

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

Nine Months Ended

September 30,

September 30,

(Dollars in millions)

2022

2021

2022

2021

Canada gross written premiums

$

103

$

60

$

252

$

164

No other country represented more than

5

% of the Company’s revenues.