Underwriting, Acquisition and Insurance Expenses

9 Months Ended

Sep. 30, 2012

Underwriting, Acquisition and Insurance Expenses

11.    Underwriting, Acquisition and Insurance Expenses

Underwriting, acquisition and insurance expenses for the three and nine months ended September 30, 2012 and 2011 were as follows:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2012			2011			2012			2011
Commissions	$	55.3		$	49.0		$	156.0		$	143.1
General expenses		60.2			51.0			182.2			153.1
Premium taxes, boards and bureaus		7.1			8.0			19.2			19.7
		122.6			108.0			357.4			315.9
Net deferral of policy acquisition costs		(4.6	)		(3.8	)		(11.1	)		(1.2	)
Total underwriting, acquisition and insurance expenses	$	118.0		$	104.2		$	346.3		$	314.7

Underwriting, acquisition and insurance expenses increased for the nine months ended September 30, 2012 due primarily to an increase in the participation percentage of the Lloyd’s Syndicate 1200 and cost associated with our start up operations primarily in Brazil. Included in general expenses for the nine months ended September 30, 2011 is $4.0 million of expense to write-off certain uncollectible balances in reinsurance recoverables on paid losses. Partially offsetting these expenses were a recovery of $0.9 million for reinsurance recoverable amounts previously written off and a reversal of $0.9 million to adjust the allowances for doubtful accounts on premiums receivable and reinsurance recoverable on paid losses.