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Segment Information
 9 Months Ended
Sep. 30, 2014
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
Segment Reporting Disclosure [Text Block]
9. Segment Information
The Company monitors the performance of its operations in three segments, Non-life, Life and Health and Corporate and Other as described in Note 21 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The Non-life segment is further divided into four sub-segments: North America, Global (Non-U.S.) P&C, Global Specialty and Catastrophe.
The North America sub-segment includes agriculture, casualty, credit/surety, motor, multiline, property and other risks generally originating in the United States. The Global (Non-U.S.) P&C sub-segment includes casualty, motor and property business generally originating outside of the United States. The Global Specialty sub-segment is comprised of business that is generally considered to be specialized due to the sophisticated technical underwriting required to analyze risks, and is global in nature. This sub-segment consists of several lines of business for which the Company believes it has developed specialized knowledge and underwriting capabilities. These lines of business include agriculture, aviation/space, credit/surety, energy, engineering, marine, specialty casualty, specialty property and other lines. The Catastrophe sub-segment is comprised of the Company’s catastrophe line of business. The Life and Health segment includes mortality, longevity and accident and health lines of business. Corporate and Other is comprised of the capital markets and investment related activities of the Company, including principal finance transactions, insurance-linked securities and strategic investments, and its corporate activities, including other operating expenses.
Since the Company does not manage its assets by segment, net investment income is not allocated to the Non-life segment. However, because of the interest-sensitive nature of some of the Company’s Life and Health products, net investment income is considered in Management’s assessment of the profitability of the Life and Health segment. The following items are not considered in evaluating the results of the Non-life and Life and Health segments: net realized and unrealized investment gains and losses, interest expense, amortization of intangible assets, net foreign exchange gains and losses, income tax expense or benefit and interest in earnings and losses of equity method investments. Segment results are shown before consideration of intercompany transactions.
Management measures results for the Non-life segment on the basis of the loss ratio, acquisition ratio, technical ratio, other operating expense ratio and combined ratio (all defined below). Management measures results for the Non-life sub-segments on the basis of the loss ratio, acquisition ratio and technical ratio. Management measures results for the Life and Health segment on the basis of the allocated underwriting result, which includes revenues from net premiums earned, other income or loss and allocated net investment income for Life and Health, and expenses from life policy benefits, acquisition costs and other operating expenses.
The segment results for the three months and nine months ended September 30, 2014 and 2013, were as follows (in millions of U.S. dollars, except ratios):
Segment Information
For the three months ended September 30, 2014
 
North
America
 
Global
(Non-U.S.)
P&C
 
Global
Specialty
 
Catastrophe
 
Total
Non-life
segment
 
Life
and Health
segment
 
Corporate
and Other
 
Total
Gross premiums written
$
372

 
$
162

 
$
432

 
$
59

 
$
1,025

 
$
336

 
$
—

 
$
1,361

Net premiums written
$
372

 
$
164

 
$
428

 
$
55

 
$
1,019

 
$
325

 
$
(1
)
 
$
1,343

Decrease in unearned premiums
52

 
38

 
20

 
98

 
208

 
6

 
—

 
214

Net premiums earned
$
424

 
$
202

 
$
448

 
$
153

 
$
1,227

 
$
331

 
$
(1
)
 
$
1,557

Losses and loss expenses and life policy benefits
(247
)
 
(123
)
 
(279
)
 
(39
)
 
(688
)
 
(272
)
 
—

 
(960
)
Acquisition costs
(106
)
 
(56
)
 
(105
)
 
(17
)
 
(284
)
 
(38
)
 
—

 
(322
)
Technical result
$
71

 
$
23

 
$
64

 
$
97

 
$
255

 
$
21

 
$
(1
)
 
$
275

Other (loss) income
 
 
 
 
 
 
 
 
(1
)
 
2

 
1

 
2

Other operating expenses
 
 
 
 
 
 
 
 
(62
)
 
(17
)
 
(29
)
 
(108
)
Underwriting result
 
 
 
 
 
 
 
 
$
192

 
$
6

 
n/a

 
$
169

Net investment income
 
 
 
 
 
 
 
 
 
 
14

 
104

 
118

Allocated underwriting result (1)
 
 
 
 
 
 
 
 
 
 
$
20

 
n/a

 
n/a

Net realized and unrealized investment losses
 
 
 
 
 
 
 
 
 
 
 
 
(34
)
 
(34
)
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
(12
)
 
(12
)
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
(7
)
 
(7
)
Net foreign exchange gains
 
 
 
 
 
 
 
 
 
 
 
 
8

 
8

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
(46
)
 
(46
)
Interest in earnings of equity method investments
 
 
 
 
 
 
 
 
 
 
 
 
5

 
5

Net income
 
 
 
 
 
 
 
 
 
 
 
 
n/a

 
$
201

Loss ratio (2)
58.2
%
 
61.1
%
 
62.3
%
 
25.2
%
 
56.1
%
 
 
 
 
 
 
Acquisition ratio (3)
24.9

 
27.6

 
23.5

 
11.7

 
23.1

 
 
 
 
 
 
Technical ratio (4)
83.1
%
 
88.7
%
 
85.8
%
 
36.9
%
 
79.2
%
 
 
 
 
 
 
Other operating expense ratio (5)
 
 
 
 
 
 
 
 
5.0

 
 
 
 
 
 
Combined ratio (6)
 
 
 
 
 
 
 
 
84.2
%
 
 
 
 
 
 
 
 
(1)
Allocated underwriting result is defined as net premiums earned, other income or loss and allocated net investment income less life policy benefits, acquisition costs and other operating expenses.
(2)
Loss ratio is obtained by dividing losses and loss expenses by net premiums earned.
(3)
Acquisition ratio is obtained by dividing acquisition costs by net premiums earned.
(4)
Technical ratio is defined as the sum of the loss ratio and the acquisition ratio.
(5)
Other operating expense ratio is obtained by dividing other operating expenses by net premiums earned.
(6)
Combined ratio is defined as the sum of the technical ratio and the other operating expense ratio.
Segment Information
For the three months ended September 30, 2013
 
North
America
 
Global
(Non-U.S.)
P&C
 
Global
Specialty
 
Catastrophe
 
Total
Non-life
segment
 
Life
and Health
segment
 
Corporate
and Other
 
Total
Gross premiums written
$
409

 
$
157

 
$
396

 
$
79

 
$
1,041

 
$
235

 
$
5

 
$
1,281

Net premiums written
$
408

 
$
157

 
$
389

 
$
72

 
$
1,026

 
$
234

 
$
5

 
$
1,265

Decrease (increase) in unearned premiums
17

 
38

 
(7
)
 
99

 
147

 
9

 
—

 
156

Net premiums earned
$
425

 
$
195

 
$
382

 
$
171

 
$
1,173

 
$
243

 
$
5

 
$
1,421

Losses and loss expenses and life policy benefits
(197
)
 
(90
)
 
(228
)
 
(42
)
 
(557
)
 
(195
)
 
1

 
(751
)
Acquisition costs
(101
)
 
(50
)
 
(92
)
 
(16
)
 
(259
)
 
(24
)
 
—

 
(283
)
Technical result
$
127

 
$
55

 
$
62

 
$
113

 
$
357

 
$
24

 
$
6

 
$
387

Other income
 
 
 
 
 
 
 
 
2

 
3

 
—

 
5

Other operating expenses
 
 
 
 
 
 
 
 
(62
)
 
(17
)
 
(29
)
 
(108
)
Underwriting result
 
 
 
 
 
 
 
 
$
297

 
$
10

 
n/a

 
$
284

Net investment income
 
 
 
 
 
 
 
 
 
 
15

 
107

 
122

Allocated underwriting result
 
 
 
 
 
 
 
 
 
 
$
25

 
n/a

 
n/a

Net realized and unrealized investment gains
 
 
 
 
 
 
 
 
 
 
 
 
16

 
16

Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
(12
)
 
(12
)
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
(7
)
 
(7
)
Net foreign exchange losses
 
 
 
 
 
 
 
 
 
 
 
 
(1
)
 
(1
)
Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
(70
)
 
(70
)
Interest in earnings of equity method investments
 
 
 
 
 
 
 
 
 
 
 
 
6

 
6

Net income
 
 
 
 
 
 
 
 
 
 
 
 
n/a

 
$
338

Loss ratio
46.3
%
 
46.0
%
 
59.8
%
 
24.5
%
 
47.5
%
 
 
 
 
 
 
Acquisition ratio
23.9

 
25.7

 
24.0

 
9.0

 
22.1

 
 
 
 
 
 
Technical ratio
70.2
%
 
71.7
%
 
83.8
%
 
33.5
%
 
69.6
%
 
 
 
 
 
 
Other operating expense ratio
 
 
 
 
 
 
 
 
5.3

 
 
 
 
 
 
Combined ratio
 
 
 
 
 
 
 
 
74.9
%
 
 
 
 
 
 

Segment Information
For the nine months ended September 30, 2014
 
North
America
 
Global
(Non-U.S.)
P&C
 
Global
Specialty
 
Catastrophe
 
Total
Non-life
segment
 
Life
and Health
segment
 
Corporate
and Other
 
Total
Gross premiums written
$
1,302

 
$
682

 
$
1,348

 
$
412

 
$
3,744

 
$
951

 
$
—

 
$
4,695

Net premiums written
$
1,291

 
$
672

 
$
1,250

 
$
370

 
$
3,583

 
$
918

 
$
(1
)
 
$
4,500

Increase in unearned premiums
(99
)
 
(104
)
 
(42
)
 
(78
)
 
(323
)
 
(14
)
 
—

 
(337
)
Net premiums earned
$
1,192

 
$
568

 
$
1,208

 
$
292

 
$
3,260

 
$
904

 
$
(1
)
 
$
4,163

Losses and loss expenses and life policy benefits
(747
)
 
(319
)
 
(749
)
 
(38
)
 
(1,853
)
 
(740
)
 
—

 
(2,593
)
Acquisition costs
(299
)
 
(162
)
 
(283
)
 
(34
)
 
(778
)
 
(111
)
 
—

 
(889
)
Technical result
$
146

 
$
87

 
$
176

 
$
220

 
$
629

 
$
53

 
$
(1
)
 
$
681

Other income
 
 
 
 
 
 
 
 
1

 
6

 
5

 
12

Other operating expenses
 
 
 
 
 
 
 
 
(187
)
 
(52
)
 
(88
)
 
(327
)
Underwriting result
 
 
 
 
 
 
 
 
$
443

 
$
7

 
n/a

 
$
366

Net investment income
 
 
 
 
 
 
 
 
 
 
45

 
320

 
365

Allocated underwriting result
 
 
 
 
 
 
 
 
 
 
$
52

 
n/a

 
n/a

Net realized and unrealized investment gains
 
 
 
 
 
 
 
 
 
 
 
 
273

 
273

Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
(36
)
 
(36
)
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
(21
)
 
(21
)
Net foreign exchange gains
 
 
 
 
 
 
 
 
 
 
 
 
11

 
11

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
(186
)
 
(186
)
Interest in earnings of equity method investments
 
 
 
 
 
 
 
 
 
 
 
 
16

 
16

Net income
 
 
 
 
 
 
 
 
 
 
 
 
n/a

 
$
788

Loss ratio
62.6
%
 
56.2
%
 
62.1
%
 
12.9
%
 
56.8
%
 
 
 
 
 
 
Acquisition ratio
25.1

 
28.5

 
23.4

 
11.5

 
23.9

 
 
 
 
 
 
Technical ratio
87.7
%
 
84.7
%
 
85.5
%
 
24.4
%
 
80.7
%
 
 
 
 
 
 
Other operating expense ratio
 
 
 
 
 
 
 
 
5.7

 
 
 
 
 
 
Combined ratio
 
 
 
 
 
 
 
 
86.4
%
 
 
 
 
 
 
Segment Information
For the nine months ended September 30, 2013
 
North
America
 
Global
(Non-U.S.)
P&C
 
Global
Specialty
 
Catastrophe
 
Total
Non-life
segment
 
Life
and Health
segment
 
Corporate
and Other
 
Total
Gross premiums written
$
1,228

 
$
690

 
$
1,253

 
$
478

 
$
3,649

 
$
722

 
$
8

 
$
4,379

Net premiums written
$
1,215

 
$
682

 
$
1,159

 
$
433

 
$
3,489

 
$
715

 
$
7

 
$
4,211

Increase in unearned premiums
(99
)
 
(152
)
 
(68
)
 
(97
)
 
(416
)
 
(17
)
 
(1
)
 
(434
)
Net premiums earned
$
1,116

 
$
530

 
$
1,091

 
$
336

 
$
3,073

 
$
698

 
$
6

 
$
3,777

Losses and loss expenses and life policy benefits
(682
)
 
(263
)
 
(697
)
 
(81
)
 
(1,723
)
 
(558
)
 
2

 
(2,279
)
Acquisition costs
(253
)
 
(134
)
 
(257
)
 
(33
)
 
(677
)
 
(82
)
 
—

 
(759
)
Technical result
$
181

 
$
133

 
$
137

 
$
222

 
$
673

 
$
58

 
$
8

 
$
739

Other income
 
 
 
 
 
 
 
 
3

 
9

 
1

 
13

Other operating expenses
 
 
 
 
 
 
 
 
(189
)
 
(52
)
 
(128
)
 
(369
)
Underwriting result
 
 
 
 
 
 
 
 
$
487

 
$
15

 
n/a

 
$
383

Net investment income
 
 
 
 
 
 
 
 
 
 
45

 
325

 
370

Allocated underwriting result
 
 
 
 
 
 
 
 
 
 
$
60

 
n/a

 
n/a

Net realized and unrealized investment losses
 
 
 
 
 
 
 
 
 
 
 
 
(260
)
 
(260
)
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
(37
)
 
(37
)
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
(21
)
 
(21
)
Net foreign exchange losses
 
 
 
 
 
 
 
 
 
 
 
 
(10
)
 
(10
)
Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
(37
)
 
(37
)
Interest in earnings of equity method investments
 
 
 
 
 
 
 
 
 
 
 
 
10

 
10

Net income
 
 
 
 
 
 
 
 
 
 
 
 
n/a

 
$
398

Loss ratio
61.1
%
 
49.7
%
 
63.9
%
 
24.2
%
 
56.1
%
 
 
 
 
 
 
Acquisition ratio
22.7

 
25.2

 
23.6

 
9.7

 
22.0

 
 
 
 
 
 
Technical ratio
83.8
%
 
74.9
%
 
87.5
%
 
33.9
%
 
78.1
%
 
 
 
 
 
 
Other operating expense ratio
 
 
 
 
 
 
 
 
6.1

 
 
 
 
 
 
Combined ratio
 
 
 
 
 
 
 
 
84.2
%