ACQUISITIONS AND DISCONTINUED OPERATIONS (Tables)

12 Months Ended

Dec. 31, 2012

Determination Of Purchase Price

The following table summarizes the transaction in both GBP and U.S. dollars:

(in millions)
Aggregate purchase price announced on April 20, 2011 Based on 53.3p contract price	£	297.7	$	485.3
Actual consideration on July 14, 2011:
Cash	£	287.4	$	455.0
Loan notes and other payables		9.5		15.3
Foreign exchange forward settlement		—		11.3
Total	£	296.9	$	481.6

Allocation Of Purchase Price

The purchase price has been allocated as follows based on an estimate of the fair value of assets acquired and liabilities assumed as of July 1, 2011 (converted to U.S. dollars using an exchange rate of 1.6053):

(in millions)
Cash	$	756.1
Premiums and accounts receivable, net		469.5
Investments		1,630.8
Reinsurance recoverables, net		569.8
Deferred acquisition costs		171.9
Deferred income taxes		52.4
Other assets		18.1
Loss and loss adjustment expense reserves		(2,300.6	)
Unearned premiums		(857.3	)
Debt		(63.3	)
Other liabilities		(64.4	)
Net tangible assets		383.0
Goodwill		6.0
Intangible assets		87.7
Purchase price allocated to Chaucer		476.7
Additional hedge-related adjustment based upon July 14, 2011 settlement		4.9
Total purchase price, excluding transaction costs		481.6
Transaction costs		11.7
Total purchase price	$	493.3

Identification And Valuation Of Intangible Assets

A summary of the fair value of goodwill and the identifiable intangible assets and their respective estimated useful lives at July 1, 2011 is as follows:

(in millions)	Amount		Estimated Useful Life		Amortization Method
Intangibles:
Lloyd’s syndicate capacity	$	78.7		Indefinite		N/A
Other intangibles		9.0		2-5 years		Straight line
Total intangible assets		87.7
Goodwill		6.0		Indefinite		N/A
Total goodwill and intangibles	$	93.7

Pro Forma Results

The following unaudited pro forma information presents the combined revenues, net income (loss) and net income (loss) per share of THG and Chaucer for the years ended December 31, 2011 and 2010 with pro forma purchase accounting adjustments as if the acquisition had been consummated as of January 1, 2010. This pro forma information is not necessarily indicative of what would have occurred had the acquisition and related transactions been made on the dates indicated, or of future results of the Company. Amounts in 2011 and 2010 are converted from GBP to U.S. dollar at rates of 1.60 and 1.55, respectively.

	(Unaudited)
For the Year Ended December 31	2011			2010
(in millions, except per share data)
Revenue	$	4,360.4		$	4,134.6
Net income (loss)	$	(18.9	)	$	158.1
Net income (loss) per share – basic	$	(0.42	)	$	3.47
Net income (loss) per share – diluted(1)	$	(0.42	)	$	3.41
Weighted average shares outstanding – basic		45.2			45.6
Weighted average shares outstanding – diluted(1)		45.2			46.3

(1) Weighted average shares outstanding and per diluted share amounts in 2011 exclude common stock equivalents, since the impact of these instruments would be antidilutive.