Segments

6 Months Ended

Jun. 30, 2013

Segments [Abstract]

Segments

(11) Segments

We report HCC's results in six operating segments, including the following five insurance underwriting segments:

• U.S. Property & Casualty
• Professional Liability
• Accident & Health
• U.S. Surety & Credit
• International

The Investing segment includes our consolidated investment portfolio, as well as all investment income, investment related expenses, realized investment gains and losses, and other-than-temporary impairment credit losses on investments. All investment activity is reported as revenue, consistent with our consolidated presentation.

In addition to our segments, we include a Corporate & Other category to reconcile segment results to consolidated totals. The Corporate & Other category includes corporate operating expenses not allocable to the segments, interest expense on long-term debt, foreign currency expense/benefit, and underwriting results of our Exited Lines.

Our Exited Lines include product lines that we no longer write and do not expect to write in the future.In the third quarter of 2012, we exited the HMO and medical excess reinsurance businesses that had previously been included in our Accident & Health segment. We have adjusted all prior financial data to report these two product lines in Exited Lines for the 2012 periods presented herein.

The following tables present information by business segment.

			U.S. Property & Casualty		Professional Liability		Accident & Health		U.S. Surety & Credit		International		Investing		Corporate & Other		Consolidated
Six months ended June 30, 2013
Net earned premium			$	184,963	$	185,223	$	434,947	$	97,231	$	210,412	$	0	$	9,766	$	1,122,542
Other revenue				11,429		325		2,330		621		1,902		124,626		22		141,255
	Segment revenue			196,392		185,548		437,277		97,852		212,314		124,626		9,788		1,263,797
Loss and LAE				107,394		111,821		320,566		18,851		104,916		0		8,623		672,171
Other expense				52,757		35,872		63,709		53,681		71,921		0		37,459		315,399
	Segment expense			160,151		147,693		384,275		72,532		176,837		-		46,082		987,570
		Segment pretax earnings (loss)	$	36,241	$	37,855	$	53,002	$	25,320	$	35,477	$	124,626	$	(36,294)	$	276,227

Six months ended June 30, 2012
Net earned premium			$	177,852	$	200,905	$	415,028	$	100,844	$	196,472	$	0	$	21,371	$	1,112,472
Other revenue				6,885		267		2,494		415		2,135		116,950		193		129,339
	Segment revenue			184,737		201,172		417,522		101,259		198,607		116,950		21,564		1,241,811
Loss and LAE				100,927		134,323		306,918		26,723		79,623		0		17,239		665,753
Other expense				59,767		36,207		61,102		55,523		68,765		0		43,415		324,779
	Segment expense			160,694		170,530		368,020		82,246		148,388		-		60,654		990,532
		Segment pretax earnings (loss)	$	24,043	$	30,642	$	49,502	$	19,013	$	50,219	$	116,950	$	(39,090)	$	251,279

			U.S. Property & Casualty		Professional Liability		Accident & Health		U.S. Surety & Credit		International		Investing		Corporate & Other		Consolidated
Three months ended June 30, 2013
Net earned premium			$	91,432	$	92,444	$	217,822	$	50,054	$	105,270	$	0	$	4,334	$	561,356
Other revenue				4,245		739		1,140		384		1,124		60,291		152		68,075
	Segment revenue			95,677		93,183		218,962		50,438		106,394		60,291		4,486		629,431
Loss and LAE				55,238		55,435		160,139		5,637		58,997		0		4,028		339,474
Other expense				25,452		18,124		32,583		27,402		36,212		0		25,353		165,126
	Segment expense			80,690		73,559		192,722		33,039		95,209		-		29,381		504,600
		Segment pretax earnings (loss)	$	14,987	$	19,624	$	26,240	$	17,399	$	11,185	$	60,291	$	(24,895)	$	124,831

Three months ended June 30, 2012
Net earned premium			$	88,834	$	99,467	$	208,147	$	53,115	$	105,188	$	0	$	10,580	$	565,331
Other revenue				4,522		134		1,157		200		941		59,769		234		66,957
	Segment revenue			93,356		99,601		209,304		53,315		106,129		59,769		10,814		632,288
Loss and LAE				51,666		65,168		154,396		15,690		41,856		0		8,049		336,825
Other expense				30,045		18,676		30,948		27,403		36,612		0		17,460		161,144
	Segment expense			81,711		83,844		185,344		43,093		78,468		-		25,509		497,969
		Segment pretax earnings (loss)	$	11,645	$	15,757	$	23,960	$	10,222	$	27,661	$	59,769	$	(14,695)	$	134,319