The following tables present segment results for Alleghany’s two reportable segments and for other activities for 2017, 2016 and 2015:


	Reinsurance Segment						Insurance Segment								Total Segments		Other Activities				Consolidated
Year Ended December 31, 2017	Property		Casualty & Other⁽¹⁾		Total		RSUI		Cap Specialty		Pacific Comp		Total		Total Segments		Alleghany Capital		Corporate Activities⁽²⁾		Consolidated
											($ in millions)
Gross premiums written	$	1,557.8	$	2,652.8	$	4,210.6	$	1,056.8	$	290.2	$	162.6	$	1,509.6	$	5,720.2	$	-	$	(23.3)	$	5,696.9
Net premiums written		1,233.1		2,577.0		3,810.1		724.4		271.2		160.2		1,155.8		4,965.9		-		-		4,965.9
Net premiums earned		1,181.9		2,626.8		3,808.7		721.7		260.9		163.7		1,146.3		4,955.0		-		-		4,955.0
Net loss and LAE		1,080.1		1,705.3		2,785.4		569.9		143.9		121.0		834.8		3,620.2		-		-		3,620.2
Commissions, brokerage and other underwriting expenses⁽³⁾		383.4		903.3		1,286.7		208.9		112.7		42.9		364.5		1,651.2		-		-		1,651.2

Underwriting (loss) profit⁽⁴⁾	$	(281.6)	$	18.2	$	(263.4)	$	(57.1)	$	4.3	$	(0.2)	$	(53.0)		(316.4)		-		-		(316.4)

Net investment income																434.6		2.7		13.7		451.0
Net realized capital gains																85.7		18.2		3.3		107.2
Other than temporary impairment losses																(16.9)		-		-		(16.9)
Other revenue																15.5		906.9		5.9		928.3
Other operating expenses																82.8		881.0		3.3		967.1
Corporate administration																1.7		-		45.3		47.0
Amortization of intangible assets																(1.5)		20.9		-		19.4
Interest expense																26.9		4.0		52.1		83.0

(Losses) earnings before income taxes															$	92.6	$	21.9	$	(77.8)	$	36.7


	Reinsurance Segment						Insurance Segment								Total Segments		Other Activities				Consolidated
Year Ended December 31, 2016	Property		Casualty & Other⁽¹⁾		Total		RSUI		Cap Specialty		Pacific Comp		Total		Total Segments		Alleghany Capital		Corporate Activities⁽²⁾		Consolidated
											($ in millions)
Gross premiums written	$	1,515.5	$	2,814.8	$	4,330.3	$	1,056.4	$	266.5	$	139.8	$	1,462.7	$	5,793.0	$	-	$	(25.9)	$	5,767.1
Net premiums written		1,237.2		2,732.2		3,969.4		734.1		250.0		138.3		1,122.4		5,091.8		-		-		5,091.8
Net premiums earned		1,168.0		2,677.0		3,845.0		754.5		237.5		138.8		1,130.8		4,975.8		-		-		4,975.8
Net loss and LAE		578.4		1,707.0		2,285.4		403.8		125.3		102.7		631.8		2,917.2		-		-		2,917.2
Commissions, brokerage and other underwriting expenses⁽³⁾		376.2		922.8		1,299.0		212.3		107.3		38.7		358.3		1,657.3		-		-		1,657.3

Underwriting profit (loss)⁽⁴⁾	$	213.4	$	47.2	$	260.6	$	138.4	$	4.9	$	(2.6)	$	140.7		401.3		-		-		401.3

Net investment income																433.1		(2.3)		7.7		438.5
Net realized capital gains																159.9		(86.0)		(10.7)		63.2
Other than temporary impairment losses																(45.2)		-		-		(45.2)
Other revenue																4.4		687.1		7.3		698.8
Other operating expenses																80.6		680.5		4.1		765.2
Corporate administration																1.0		-		42.0		43.0
Amortization of intangible assets																(3.1)		22.1		-		19.0
Interest expense																27.2		1.9		52.5		81.6

Earnings (losses) before income taxes															$	847.8	$	(105.7)	$	(94.3)	$	647.8


	Reinsurance Segment						Insurance Segment								Total Segments		Other Activities
Year Ended December 31, 2015	Property		Casualty & Other⁽¹⁾		Total		RSUI		Cap Specialty		Pacific Comp		Total		Total Segments		Alleghany Capital		Corporate Activities⁽²⁾		Consolidated
											($ in millions)
Gross premiums written	$	1,171.9	$	2,490.2	$	3,662.1	$	1,148.4	$	236.6	$	103.1	$	1,488.1	$	5,150.2	$	-	$	(28.0)	$	5,122.2
Net premiums written		953.6		2,433.7		3,387.3		779.4		220.6		101.9		1,101.9		4,489.2		-		-		4,489.2
Net premiums earned		887.4		2,228.1		3,115.5		809.8		205.0		100.0		1,114.8		4,230.3		-		-		4,230.3
Net loss and LAE		292.1		1,426.6		1,718.7		428.8		115.7		76.6		621.1		2,339.8		-		-		2,339.8
Commissions, brokerage and other underwriting expenses⁽³⁾		295.6		774.2		1,069.8		222.9		94.3		36.9		354.1		1,423.9		-		-		1,423.9

Underwriting profit (loss)⁽⁴⁾	$	299.7	$	27.3	$	327.0	$	158.1	$	(5.0)	$	(13.5)	$	139.6		466.6		-		-		466.6

Net investment income																427.6		5.4		5.8		438.8
Net realized capital gains																242.6		(25.6)		(3.1)		213.9
Other than temporary impairment losses																(125.5)		-		(8.4)		(133.9)
Other revenue																6.5		241.0		2.9		250.4
Other operating expenses																80.4		259.3		2.6		342.3
Corporate administration																0.9		-		45.6		46.5
Amortization of intangible assets																(5.3)		3.1		-		(2.2)
Interest expense																38.3		1.5		52.0		91.8

Earnings (losses) before income taxes															$	903.5	$	(43.1)	$	(103.0)	$	757.4

(1)	Primarily consists of the following assumed reinsurance lines of business: directors’ and officers’ liability; errors and omissions liability; general liability; medical malpractice; ocean marine and aviation; auto liability; accident and health; surety; and credit.

(2)	Includes elimination of minor reinsurance activity between segments.

(3)	Includes amortization associated with deferred acquisition costs of $1,261.7 million, $1,253.2 million and $1,024.5 million for the years ended December 31, 2017, 2016 and 2015, respectively.

(4)

Underwriting profit represents net premiums earned less net loss and LAE and commissions, brokerage and other underwriting expenses, all as determined in accordance with GAAP, and does not include net investment income, net realized capital gains, OTTI losses, other revenue, other operating expenses, corporate administration, amortization of intangible assets or interest expense. Underwriting profit does not replace earnings before income taxes determined in accordance with GAAP as a measure of profitability. Rather, Alleghany believes that underwriting profit enhances the understanding of its reinsurance and insurance segments’ operating results by highlighting net earnings attributable to their underwriting performance. Earnings before income taxes (a GAAP measure) may show a profit despite an underlying underwriting loss. Where underwriting losses persist over extended periods, a reinsurance or an insurance company’s ability to continue as an ongoing concern may be at risk. Therefore, Alleghany views underwriting profit as an important measure in the overall evaluation of performance.