SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2011

SEGMENT INFORMATION [ABSTRACT]

SEGMENT INFORMATION

2.       SEGMENT INFORMATION

Our underwriting operations are organized around our two global underwriting platforms, AXIS Insurance and AXIS Re. Therefore we have determined that we have two reportable segments, insurance and reinsurance. Except for goodwill and intangible assets, we do not allocate our assets by segment as we evaluate the underwriting results of each segment separately from the results of our investment portfolio.

The following tables summarize the underwriting results of our reportable segments for the periods indicated and the carrying values of goodwill and intangible assets at September 30, 2011 and 2010:
		2011										2010
	Three months ended September 30,		Insurance			Reinsurance			Total			Insurance			Reinsurance			Total
	Gross premiums written	$	493,460		$	341,596		$	835,056		$	433,550		$	317,137		$	750,687
	Net premiums written		331,857			341,596			673,453			309,277			317,045			626,322
	Net premiums earned		370,520			469,472			839,992			320,184			438,689			758,873
	Other insurance related income		1,156			-			1,156			884			-			884
	Net losses and loss expenses		(207,403)			(299,436)			(506,839)			(150,860)			(271,294)			(422,154)
	Acquisition costs		(51,753)			(95,083)			(146,836)			(38,962)			(84,826)			(123,788)
	General and administrative expenses		(72,005)			(25,439)			(97,444)			(64,147)			(22,292)			(86,439)
	Underwriting income	$	40,515		$	49,514			90,029		$	67,099		$	60,277			127,376
	Corporate expenses								(17,093)									(16,996)
	Net investment income								49,396									111,800
	Net realized investment gains								57,557									76,531
	Foreign exchange (losses) gains								60,830									(24,961)
	Interest expense and financing costs								(15,677)									(15,800)
	Income before income taxes							$	225,042								$	257,950
	Net loss and loss expense ratio		56.0	%		63.8	%		60.3	%		47.1	%		61.8	%		55.6	%
	Acquisition cost ratio		14.0	%		20.3	%		17.5	%		12.2	%		19.4	%		16.3	%
	General and administrative expense ratio		19.4	%		5.4	%		13.7	%		20.0	%		5.1	%		13.7	%
	Combined ratio		89.4	%		89.5	%		91.5	%		79.3	%		86.3	%		85.6	%
	Goodwill and intangible assets	$	98,260		$	-		$	98,260		$	89,744		$	-		$	89,744

	2011										2010
Nine months ended September 30,		Insurance			Reinsurance			Total			Insurance			Reinsurance			Total
Gross premiums written	$	1,600,548		$	1,829,101		$	3,429,649		$	1,419,372		$	1,696,389		$	3,115,761
Net premiums written		1,116,222			1,808,150			2,924,372			982,969			1,675,927			2,658,896
Net premiums earned		1,058,042			1,410,165			2,468,207			878,117			1,311,975			2,190,092
Other insurance related income		2,047			-			2,047			1,727			-			1,727
Net losses and loss expenses		(692,255)			(1,399,343)			(2,091,598)			(437,057)			(856,730)			(1,293,787)
Acquisition costs		(145,075)			(285,022)			(430,097)			(110,670)			(253,944)			(364,614)
General and administrative expenses		(209,960)			(80,900)			(290,860)			(189,802)			(66,960)			(256,762)
Underwriting income (loss)	$	12,799		$	(355,100)			(342,301)		$	142,315		$	134,341			276,656
Corporate expenses								(58,302)									(52,504)
Net investment income								260,068									299,004
Net realized investment gains								125,177									117,325
Foreign exchange gains								27,254									10,415
Interest expense and financing costs								(46,982)									(40,185)
Income (loss) before income taxes							$	(35,086)								$	610,711
Net loss and loss expense ratio		65.4	%		99.2	%		84.7	%		49.8	%		65.3	%		59.1	%
Acquisition cost ratio		13.7	%		20.2	%		17.4	%		12.6	%		19.4	%		16.6	%
General and administrative expense ratio		19.9	%		5.8	%		14.2	%		21.6	%		5.1	%		14.1	%
Combined ratio		99.0	%		125.2	%		116.3	%		84.0	%		89.8	%		89.8	%
Goodwill and intangible assets	$	98,260		$	-		$	98,260		$	89,744		$	-		$	89,744