AXIS Capital's underwriting operations are organized around its global underwriting platforms, AXIS Insurance and AXIS Re. The Company has determined that it has two reportable segments, insurance and reinsurance. The Company does not allocate its assets by segment, with the exception of goodwill and intangible assets, as it evaluates the underwriting results of each segment separately from the results of its investment portfolio.

Insurance

The Company's insurance segment offers specialty insurance products to a variety of niche markets on a worldwide basis. The product lines in this segment are property, marine, terrorism, aviation, credit and political risk, professional lines, liability, accident and health, together with discontinued lines - Novae, which represents lines of business that Novae exited or placed into run-off in the three month periods ended December 31, 2016 and March 31, 2017.

Reinsurance

The Company's reinsurance segment provides treaty reinsurance to insurance companies on a worldwide basis. The product lines in this segment are catastrophe, property, professional lines, credit and surety, motor, liability, agriculture, engineering, marine and other, accident and health, together with discontinued lines - Novae, which represents lines of business that Novae exited or placed into run-off in the three month periods ended December 31, 2016 and March 31, 2017. The reinsurance segment also wrote derivative based risk management products designed to address weather and commodity price risks until July 1, 2017.

The following tables present the underwriting results of the Company's reportable segments, as well as the carrying amounts of allocated goodwill and intangible assets:




At and year ended December 31, 2018	Insurance			Reinsurance			Total

Gross premiums written	$	3,797,592		$	3,112,473		$	6,910,065
Net premiums written	2,324,747			2,334,215			4,658,962
Net premiums earned	2,362,606			2,428,889			4,791,495
Other insurance related income	3,460			7,162			10,622
Net losses and loss expenses	(1,494,323		)	(1,695,964		)	(3,190,287		)
Acquisition costs	(399,193		)	(569,642		)	(968,835		)
General and administrative expenses	(395,252		)	(123,916		)	(519,168		)
Underwriting income	$	77,298		$	46,529		123,827

Corporate expenses							(108,221		)
Net investment income							438,507
Net investment losses							(150,218		)
Foreign exchange gains							29,165
Interest expense and financing costs							(67,432		)
Transaction and reorganization expenses							(66,940		)
Amortization of value of business acquired							(172,332		)
Amortization of intangible assets							(13,814		)
Income before income taxes and interest in income (loss) of equity method investments							$	12,542

Net loss and loss expense ratio	63.2		%	69.8		%	66.6		%
Acquisition cost ratio	16.9		%	23.5		%	20.2		%
General and administrative expense ratio	16.8		%	5.1		%	13.1		%
Combined ratio	96.9		%	98.4		%	99.9		%

Total intangible assets	$	379,285		$	—		$	379,285




At and year ended December 31, 2017	Insurance			Reinsurance			Total

Gross premiums written	$	2,814,918		$	2,741,355		$	5,556,273
Net premiums written	1,775,825			2,251,318			4,027,143
Net premiums earned	1,816,438			2,332,322			4,148,760
Other insurance related income (loss)	2,944			(4,184		)	(1,240		)
Net losses and loss expenses	(1,465,427		)	(1,822,345		)	(3,287,772		)
Acquisition costs	(270,229		)	(553,362		)	(823,591		)
General and administrative expenses	(325,368		)	(124,115		)	(449,483		)
Underwriting loss	$	(241,642	)	$	(171,684	)	(413,326		)

Corporate expenses							(129,945		)
Net investment income							400,805
Net investment gains							28,226
Foreign exchange losses							(134,737		)
Interest expense and financing costs							(54,811		)
Bargain purchase gain							15,044
Transaction and reorganization expenses							(26,718		)
Amortization of value of business acquired							(50,104		)
Amortization of intangible assets							(2,543		)
Loss before income taxes and interest in income (loss) of equity method investments							$	(368,109	)

Net loss and loss expense ratio	80.7		%	78.1		%	79.2		%
Acquisition cost ratio	14.9		%	23.7		%	19.9		%
General and administrative expense ratio	17.9		%	5.3		%	14.0		%
Combined ratio	113.5		%	107.1		%	113.1		%

Total intangible assets	$	566,828		$	—		$	566,828




At and year ended December 31, 2016	Insurance			Reinsurance			Total

Gross premiums written	$	2,432,475		$	2,537,733		$	4,970,208
Net premiums written	1,519,559			2,233,415			3,752,974
Net premiums earned	1,534,282			2,171,343			3,705,625
Other insurance related income	89			7,133			7,222
Net losses and loss expenses	(977,771		)	(1,226,426		)	(2,204,197		)
Acquisition costs	(206,619		)	(540,257		)	(746,876		)
General and administrative expenses	(327,351		)	(155,350		)	(482,701		)
Underwriting income	$	22,630		$	256,443		279,073

Corporate expenses							(120,016		)
Net investment income							353,335
Net investment losses							(60,525		)
Foreign exchange gains							121,295
Interest expense and financing costs							(51,360		)
Income before income taxes and interest in income (loss) of equity method investments							$	521,802

Net loss and loss expense ratio	63.7		%	56.5		%	59.5		%
Acquisition cost ratio	13.5		%	24.9		%	20.2		%
General and administrative expense ratio	21.3		%	7.1		%	16.2		%
Combined ratio	98.5		%	88.5		%	95.9		%

Total intangible assets	$	85,049		$	—		$	85,049

The following table presents gross premiums written by the geographical location of the Company's subsidiaries:




Year ended December 31,	2018		2017		2016

Bermuda	$	606,452	$	529,425	$	465,980
Ireland	1,805,882		1,569,956		1,650,229
U.S.	2,811,537		2,814,933		2,562,789
Lloyd's of London	1,686,194		641,959		291,210
Total gross premium written	$	6,910,065	$	5,556,273	$	4,970,208

The following table presents net premiums earned by segment and line of business:




Year ended December 31,	2018		2017		2016

Insurance
Property	$	796,945	$	543,342	$	426,918
Marine	300,944		181,533		150,046
Terrorism	49,150		36,084		33,279
Aviation	74,203		75,107		44,980
Credit and political risk	102,825		56,432		57,964
Professional lines	570,241		519,759		510,806
Liability	229,373		188,770		169,182
Accident and health	207,777		199,121		141,107
Discontinued lines - Novae	31,148		16,290		—
Total Insurance	2,362,606		1,816,438		1,534,282

Reinsurance
Catastrophe	250,016		209,470		199,825
Property	317,038		304,376		272,403
Professional lines	220,687		226,622		289,868
Credit and surety	250,276		244,186		252,210
Motor	438,693		371,501		318,863
Liability	363,292		351,940		332,479
Agriculture	176,435		195,391		142,501
Engineering	67,932		66,291		62,833
Marine and other	35,570		64,449		57,322
Accident and health	299,813		289,925		243,039
Discontinued lines - Novae	9,137		8,171		—
Total Reinsurance	2,428,889		2,332,322		2,171,343

Total	$	4,791,495	$	4,148,760	$	3,705,625