Business Segments

9 Months Ended

Sep. 30, 2020

The Company’s reportable segments include the following two business segments, plus a corporate segment:

•Insurance - predominantly commercial insurance business, including excess and surplus lines, admitted lines and specialty personal lines throughout the United States, as well as insurance business in the United Kingdom, Continental Europe, South America, Canada, Mexico, Scandinavia, Asia and Australia.

•Reinsurance & Monoline Excess - reinsurance business on a facultative and treaty basis, primarily in the United States, the United Kingdom, Continental Europe, Australia, the Asia-Pacific Region and South Africa, as well as operations that solely retain risk on an excess basis.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Income tax expense and benefits are calculated based upon the Company's overall effective tax rate.

Summary financial information about the Company's reporting segments is presented in the following tables. Income (loss) before income taxes by segment includes allocated investment income. Identifiable assets by segment are those assets used in or allocated to the operation of each segment.


	Revenues
(In thousands)	Earned Premiums (1)		Investment Income		Other		Total (2)		Pre-Tax Income (Loss)		Net Income (Loss) to Common Stockholders
Three months ended September 30, 2020
Insurance	$	1,531,093	$	87,828	$	9,463	$	1,628,384	$	178,971	$	130,266
Reinsurance & Monoline Excess	217,828		40,306		—		258,134		61,532		49,070
Corporate, other and eliminations (3)	—		14,516		99,807		114,323		(73,067)		(57,781)
Net investment gains	—		—		38,978		38,978		38,978		30,123
Total	$	1,748,921	$	142,650	$	148,248	$	2,039,819	$	206,414	$	151,678
Three months ended September 30, 2019
Insurance	$	1,493,854	$	99,628	$	11,611	$	1,605,093	$	202,390	$	162,994
Reinsurance & Monoline Excess	182,956		43,768		—		226,724		46,863		38,240
Corporate, other and eliminations (3)	—		18,296		114,138		132,434		(47,736)		(37,184)
Net investment gains	—		—		1,465		1,465		1,465		1,158
Total	$	1,676,810	$	161,692	$	127,214	$	1,965,716	$	202,982	$	165,208
Nine months ended September 30, 2020
Insurance	$	4,481,092	$	255,392	$	25,953	$	4,762,437	$	431,464	$	315,733
Reinsurance & Monoline Excess	636,161		101,477		—		737,638		110,611		88,947
Corporate, other and eliminations (3)	—		45,975		300,715		346,690		(176,369)		(139,471)
Net investment losses	—		—		(60,311)		(60,311)		(60,311)		(46,689)
Total	$	5,117,253	$	402,844	$	266,357	$	5,786,454	$	305,395	$	218,520
Nine months ended September 30, 2019
Insurance	$	4,396,071	$	332,072	$	38,542	$	4,766,685	$	612,777	$	488,228
Reinsurance & Monoline Excess	520,436		127,791		—		648,227		144,353		115,630
Corporate, other and eliminations (3)	—		48,416		319,103		367,519		(194,664)		(154,736)
Net investment gains	—		—		143,691		143,691		143,691		113,516
Total	$	4,916,507	$	508,279	$	501,336	$	5,926,122	$	706,157	$	562,638

_________________

(1) Certain amounts included in earned premiums of each segment are related to inter-segment transactions.

(2) Revenues for Insurance from foreign countries for the three months ended September 30, 2020 and 2019 were $183 million and $185 million, respectively, and for the nine months ended September 30, 2020 and 2019 were $500 million and $535 million, respectively. Revenues for Reinsurance & Monoline Excess from foreign countries for the three months ended September 30, 2020 and 2019 were $77 million and $65 million, respectively, and for the nine months ended September 30, 2020 and 2019 were $212 million and $186 million, respectively.

(3) Corporate, other and eliminations represent corporate revenues and expenses that are not allocated to business segments.

Identifiable Assets


(In thousands)	September 30, 2020		December 31, 2019
Insurance	$	21,060,144	$	20,005,802
Reinsurance & Monoline Excess	4,697,249		4,710,819
Corporate, other and eliminations	2,454,977		1,913,409
Consolidated	$	28,212,370	$	26,630,030

Net premiums earned by major line of business are as follows:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,

(In thousands)	2020		2019		2020		2019
Insurance:
Other liability	$	561,595	$	527,253	$	1,653,189	$	1,523,534
Short-tail lines (1)	326,019		310,423		917,466		905,365
Workers' compensation	271,802		321,872		852,101		979,059
Commercial automobile	203,047		191,136		583,024		560,340
Professional liability	168,630		143,170		475,312		427,773
Total Insurance	1,531,093		1,493,854		4,481,092		4,396,071

Reinsurance & Monoline Excess:
Casualty reinsurance	130,186		106,532		383,375		292,471
Monoline excess (2)	43,577		40,639		126,800		119,020
Property reinsurance	44,065		35,785		125,986		108,945
Total Reinsurance & Monoline Excess	217,828		182,956		636,161		520,436

Total	$	1,748,921	$	1,676,810	$	5,117,253	$	4,916,507

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(1) Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery and other lines.

(2) Monoline excess includes operations that solely retain risk on an excess basis.