SEGMENT REPORTING

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

SEGMENT REPORTING

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 and Bermuda 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 and Bermuda.

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, result from dividing 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 June 30, 2023						Six Months Ended June 30, 2023
(Dollars in millions)	Reinsurance		Insurance		Total		Reinsurance		Insurance		Total
Gross written premiums	$	1,791	$	1,125	$	2,915	$	3,434	$	1,977	$	5,411
Net written premiums	1,580		816		2,396		2,953		1,506		4,459
Premiums earned	$	1,417	$	714	$	2,131	$	2,784	$	1,416	$	4,200
Incurred losses and LAE	864		460		1,325		1,794		925		2,719
Commission and brokerage	363		70		433		724		145		869
Other underwriting expenses	36		100		136		75		200		275
Underwriting gain (loss)	$	153	$	84	$	237	$	191	$	145	$	336
Net investment income					242						432
Net gains (losses) on investments					(22)						—
Corporate expense					(4)						(10)
Interest, fee and bond issue cost amortization expense					(33)						(65)
Other income (expense)					(10)						(15)
Income (loss) before taxes					$	411					$	679

(Some amounts may not reconcile due to rounding)

	Three Months Ended June 30, 2022						Six Months Ended June 30, 2022
(Dollars in millions)	Reinsurance		Insurance		Total		Reinsurance		Insurance		Total
Gross written premiums	$	1,394	$	1,043	$	2,437	$	2,774	$	1,868	$	4,642
Net written premiums	1,245		750		1,995		2,430		1,360		3,791
Premiums earned	$	1,295	$	659	$	1,954	$	2,504	$	1,279	$	3,783
Incurred losses and LAE	875		429		1,304		1,696		834		2,530
Commission and brokerage	332		77		409		647		146		793
Other underwriting expenses	32		88		120		63		175		238
Underwriting gain (loss)	$	55	$	66	$	121	$	98	$	124	$	222
Net investment income					176						333
Net gains (losses) on investments					(378)						(605)
Corporate expense					(6)						(12)
Interest, fee and bond issue cost amortization expense					(24)						(48)
Other income (expense)					—						(9)
Income (loss) before taxes					$	(110)					$	(119)

(Some amounts may not reconcile due to rounding)