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Segment Information
 3 Months Ended
Mar. 31, 2015
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, 2014. 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 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 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 expenses.
The segment results for the three months ended March 31, 2015 and 2014, were as follows (in millions of U.S. dollars, except ratios):
Segment Information
For the three months ended March 31, 2015
 
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
$
473

 
$
334

 
$
427

 
$
191

 
$
1,425

 
$
324

 
$
—

 
$
1,749

Net premiums written
$
471

 
$
331

 
$
362

 
$
176

 
$
1,340

 
$
313

 
$
—

 
$
1,653

(Increase) decrease in unearned premiums
(132
)
 
(157
)
 
3

 
(118
)
 
(404
)
 
(14
)
 
—

 
(418
)
Net premiums earned
$
339

 
$
174

 
$
365

 
$
58

 
$
936

 
$
299

 
$
—

 
$
1,235

Losses and loss expenses and life policy benefits
(172
)
 
(119
)
 
(170
)
 
(20
)
 
(481
)
 
(240
)
 
—

 
(721
)
Acquisition costs
(93
)
 
(52
)
 
(93
)
 
(4
)
 
(242
)
 
(34
)
 
—

 
(276
)
Technical result
$
74

 
$
3

 
$
102

 
$
34

 
$
213

 
$
25

 
$
—

 
$
238

Other income
 
 
 
 
 
 
 
 
—

 
1

 
3

 
4

Other expenses
 
 
 
 
 
 
 
 
(52
)
 
(15
)
 
(58
)
 
(125
)
Underwriting result
 
 
 
 
 
 
 
 
$
161

 
$
11

 
n/a

 
$
117

Net investment income
 
 
 
 
 
 
 
 
 
 
14

 
91

 
105

Allocated underwriting result (1)
 
 
 
 
 
 
 
 
 
 
$
25

 
n/a

 
n/a

Net realized and unrealized investment gains
 
 
 
 
 
 
 
 
 
 
 
 
116

 
116

Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
(12
)
 
(12
)
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
(7
)
 
(7
)
Net foreign exchange gains
 
 
 
 
 
 
 
 
 
 
 
 
13

 
13

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
(80
)
 
(80
)
Interest in losses of equity method investments
 
 
 
 
 
 
 
 
 
 
 
 
(4
)
 
(4
)
Net income
 
 
 
 
 
 
 
 
 
 
 
 
n/a

 
$
248

Loss ratio (2)
50.7
%
 
68.4
%
 
46.7
%
 
33.7
%
 
51.4
%
 
 
 
 
 
 
Acquisition ratio (3)
27.5

 
30.1

 
25.4

 
7.0

 
25.9

 
 
 
 
 
 
Technical ratio (4)
78.2
%
 
98.5
%
 
72.1
%
 
40.7
%
 
77.3
%
 
 
 
 
 
 
Other expense ratio (5)
 
 
 
 
 
 
 
 
5.5

 
 
 
 
 
 
Combined ratio (6)
 
 
 
 
 
 
 
 
82.8
%
 
 
 
 
 
 
 
 
(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 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 expense ratio is obtained by dividing other expenses by net premiums earned.
(6)
Combined ratio is defined as the sum of the technical ratio and the other expense ratio.
n/a Not applicable
Segment Information
For the three months ended March 31, 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
$
530

 
$
364

 
$
479

 
$
210

 
$
1,583

 
$
289

 
$
—

 
$
1,872

Net premiums written
$
527

 
$
361

 
$
389

 
$
179

 
$
1,456

 
$
282

 
$
—

 
$
1,738

Increase in unearned premiums
(148
)
 
(182
)
 
(34
)
 
(100
)
 
(464
)
 
(20
)
 
—

 
(484
)
Net premiums earned
$
379

 
$
179

 
$
355

 
$
79

 
$
992

 
$
262

 
$
—

 
$
1,254

Losses and loss expenses and life policy benefits
(260
)
 
(94
)
 
(201
)
 
21

 
(534
)
 
(215
)
 
—

 
(749
)
Acquisition costs
(92
)
 
(54
)
 
(79
)
 
(8
)
 
(233
)
 
(32
)
 
—

 
(265
)
Technical result
$
27

 
$
31

 
$
75

 
$
92

 
$
225

 
$
15

 
$
—

 
$
240

Other income (loss)
 
 
 
 
 
 
 
 
1

 
1

 
(2
)
 
—

Other expenses
 
 
 
 
 
 
 
 
(65
)
 
(17
)
 
(29
)
 
(111
)
Underwriting result
 
 
 
 
 
 
 
 
$
161

 
$
(1
)
 
n/a

 
$
129

Net investment income
 
 
 
 
 
 
 
 
 
 
15

 
102

 
117

Allocated underwriting result
 
 
 
 
 
 
 
 
 
 
$
14

 
n/a

 
n/a

Net realized and unrealized investment gains
 
 
 
 
 
 
 
 
 
 
 
 
142

 
142

Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
(12
)
 
(12
)
Amortization of intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
(7
)
 
(7
)
Net foreign exchange gains
 
 
 
 
 
 
 
 
 
 
 
 
—

 
—

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
(62
)
 
(62
)
Interest in earnings of equity method investments
 
 
 
 
 
 
 
 
 
 
 
 
6

 
6

Net income
 
 
 
 
 
 
 
 
 
 
 
 
n/a

 
$
313

Loss ratio
68.6
%
 
52.4
%
 
56.6
%
 
(26.5
)%
 
53.8
%
 
 
 
 
 
 
Acquisition ratio
24.3

 
30.1

 
22.4

 
10.1

 
23.6

 
 
 
 
 
 
Technical ratio
92.9
%
 
82.5
%
 
79.0
%
 
(16.4
)%
 
77.4
%
 
 
 
 
 
 
Other expense ratio
 
 
 
 
 
 
 
 
6.5

 
 
 
 
 
 
Combined ratio
 
 
 
 
 
 
 
 
83.9
%