Segment Information

9 Months Ended

Sep. 30, 2019

We are primarily engaged in underwriting property and casualty insurance and reinsurance. We have two ongoing reporting segments: U.S. Operations and International Operations. 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. Transactions between segments are reported in the segment that initiated the transaction.

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



	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
(in millions)	2019			2018		2019		2018
Revenue:
Earned premiums
U.S. Operations	$	290.8		$	278.3	$	848.6	$	807.6
International Operations	160.7			168.5		455.0		471.4
Run-off Lines	—			0.1		0.1		0.3
Total earned premiums	451.5			446.9		1,303.7		1,279.3
Net investment income
U.S. Operations	27.4			21.4		80.1		64.7
International Operations	10.7			8.4		31.3		25.6
Run-off Lines	1.7			2.1		4.4		6.3
Corporate and Other	0.4			2.6		1.1		7.1
Total net investment income	40.2			34.5		116.9		103.7
Fee and other income	1.9			3.3		6.3		7.2
Net realized investment (losses) gains	(6.2		)	14.2		58.3		9.0
Total revenue	$	487.4		$	498.9	$	1,485.2	$	1,399.2



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in millions)	2019			2018			2019			2018
Income (loss) before income taxes
U.S. Operations	$	42.2		$	50.3		$	138.3		$	126.8
International Operations	(52.9		)	(1.2		)	(57.7		)	34.9
Run-off Lines	0.7			(7.6		)	0.2			(8.6		)
Total segment (loss) income before taxes	(10.0		)	41.5			80.8			153.1
Corporate and Other	(7.9		)	(12.1		)	(30.1		)	(37.0		)
Net realized investment and other (losses) gains	(6.2		)	14.2			58.3			9.0
Foreign currency exchange gains	1.6			1.7			6.2			2.3
Other corporate expenses	(3.7		)	—			(11.7		)	—
Total (loss) income before income taxes	$	(26.2	)	$	45.3		$	103.5		$	127.4

The table below presents earned premiums by geographic location for the three and nine months ended September 30, 2019 and 2018. 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 September 30,				For the Nine Months Ended September 30,
(in millions)	2019		2018		2019		2018
United States	$	289.6	$	276.5	$	845.4	$	803.7
United Kingdom	101.9		117.2		295.6		333.3
Bermuda	24.3		23.3		60.1		64.7
Malta	21.3		18.2		62.3		39.6
All other jurisdictions	14.4		11.7		40.3		38.0
Total earned premiums	$	451.5	$	446.9	$	1,303.7	$	1,279.3

The following table represents identifiable assets:



(in millions)	September 30, 2019		December 31, 2018
U.S. Operations	$	5,477.4	$	4,707.8
International Operations	4,403.8		3,984.7
Run-off Lines	375.9		444.8
Corporate and Other	188.7		420.9
Total	$	10,445.8	$	9,558.2

Included in total assets at September 30, 2019 and December 31, 2018 are $884.6 million and $880.4 million, respectively, in assets associated with trade capital providers.