Segment Information

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment Information

15. Segment Information

We are primarily engaged in underwriting property and casualty insurance and reinsurance. We have four ongoing reporting segments: Excess and Surplus Lines, Commercial Specialty, International Specialty and Syndicate 1200. Additionally, we have a Run-off Lines segment for certain products that we no longer underwrite.

We consider many factors, including the nature of each segment’s insurance and reinsurance products, production sources, distribution strategies and the regulatory environment, in determining how to aggregate reporting segments.

In evaluating the operating performance of our segments, we focus on core underwriting and investing results before the consideration of realized gains or losses from the sales of investments. Realized investment gains are reported as a component of the Corporate and Other segment, as decisions regarding the acquisition and disposal of securities reside with the investment function and are not under the control of the individual business segments. Identifiable assets by segment are those assets used in the operation of each segment.

Revenue and income (loss) before income taxes for each segment were as follows:

	For the Three Months Ended March 31,
(in millions)	2015			2014
Revenue:
Earned premiums
Excess and Surplus Lines	$	123.1		$	117.4
Commercial Specialty		72.6			71.7
International Specialty		37.3			37.0
Syndicate 1200		101.9			99.3
Run-off Lines		(0.3	)		0.3
Total earned premiums		334.6			325.7
Net investment income
Excess and Surplus Lines		8.5			9.3
Commercial Specialty		4.5			4.7
International Specialty		2.9			1.8
Syndicate 1200		2.2			3.7
Run-off Lines		2.0			2.5
Corporate and Other		0.7			1.3
Total net investment income		20.8			23.3
Net realized investment and other gains		16.0			11.1
Total revenue	$	371.4		$	360.1

	For the Three Months Ended March 31,
(in millions)	2015			2014
Income (loss) before income taxes
Excess and Surplus Lines	$	24.7		$	20.1
Commercial Specialty		3.8			1.7
International Specialty		9.1			6.8
Syndicate 1200		11.0			15.8
Run-off Lines		1.2			(5.9	)
Total segment income before taxes		49.8			38.5
Corporate and Other		(3.4	)		(6.9	)
Net realized investment and other gains		16.0			11.1
Total income before income taxes	$	62.4		$	42.7

The table below presents earned premiums by geographic location for the three months ended March 31, 2015 and 2014. For this disclosure, we determine geographic location by the country of domicile of our subsidiaries that underwrite the business and not by the location of insureds or reinsureds from whom the business was generated.

	For the Three Months Ended March 31,
(in millions)	2015		2014
Bermuda	$	23.9	$	24.4
Brazil		12.5		12.6
Malta		0.5		0.5
United Kingdom		101.9		98.9
United States		195.8		189.3
Total earned premiums	$	334.6	$	325.7

The following table represents identifiable assets:

	March 31,		December 31,
(in millions)	2015		2014
Excess and Surplus Lines	$	2,352.8	$	2,350.7
Commercial Specialty		1,384.0		1,358.5
International Specialty		799.5		776.8
Syndicate 1200		1,232.5		1,258.5
Run-off Lines		557.8		552.8
Corporate and Other		50.5		59.0
Total	$	6,377.1	$	6,356.3

Included in total assets at March 31, 2015 and December 31, 2014 are $294.2 million and $315.4 million, respectively, in assets associated with trade capital providers.