Segments

6 Months Ended

Jun. 30, 2014

Segments [Abstract]

Segments

(10) 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 allocated 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.

The following tables present information by business segment.

			U.S. Property		Professional		Accident		U.S. Surety						Corporate
			& Casualty		Liability		& Health		& Credit		International		Investing		& Other		Consolidated
Six months ended June 30, 2014
Net earned premium			$	185,588	$	173,577	$	472,481	$	97,134	$	205,460	$	-	$	620	$	1,134,860
Other revenue				9,946		470		5,502		868		1,899		138,395		564		157,644
	Segment revenue			195,534		174,047		477,983		98,002		207,359		138,395		1,184		1,292,504
Loss and LAE				93,388		103,321		341,295		28,558		82,380		-		(4)		648,938
Other expense				58,148		34,545		74,254		53,407		79,979		-		50,617		350,950
	Segment expense			151,536		137,866		415,549		81,965		162,359		-		50,613		999,888
		Segment pretax earnings (loss)	$	43,998	$	36,181	$	62,434	$	16,037	$	45,000	$	138,395	$	(49,429)	$	292,616

Six months ended June 30, 2013
Net earned premium			$	184,963	$	185,223	$	434,947	$	97,231	$	210,412	$	-	$	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		-		8,623		672,171
Other expense				52,757		35,872		63,709		53,681		71,921		-		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

			U.S. Property		Professional		Accident		U.S. Surety						Corporate
			& Casualty		Liability		& Health		& Credit		International		Investing		& Other		Consolidated
Three months ended June 30, 2014
Net earned premium			$	88,536	$	88,127	$	240,338	$	50,191	$	104,727	$	-	$	329	$	572,248
Other revenue				4,070		195		3,862		580		931		61,343		345		71,326
	Segment revenue			92,606		88,322		244,200		50,771		105,658		61,343		674		643,574
Loss and LAE				46,733		52,189		172,296		14,862		40,765		-		249		327,094
Other expense				29,055		17,420		37,875		27,463		41,302		-		25,721		178,836
	Segment expense			75,788		69,609		210,171		42,325		82,067		-		25,970		505,930
		Segment pretax earnings (loss)	$	16,818	$	18,713	$	34,029	$	8,446	$	23,591	$	61,343	$	(25,296)	$	137,644

Three months ended June 30, 2013
Net earned premium			$	91,432	$	92,444	$	217,822	$	50,054	$	105,270	$	-	$	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		-		4,028		339,474
Other expense				25,452		18,124		32,583		27,402		36,212		-		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