Segment Information

The Company monitors the performance of its operations in three segments: Property and Casualty (P&C), Specialty and Life and Health. The business in the P&C and Specialty segments is collectively referred to as Non-life business. P&C, Specialty and Life and Health each separately represent markets that are reasonably homogeneous in terms of client types, buying patterns, underlying risk patterns and approach to risk management.

The P&C segment is comprised of property and casualty business underwritten, including property catastrophe, facultative and U.S. health risks. The Specialty segment is comprised of specialty business underwritten, including treaty and facultative contracts. The Life and Health segment is comprised of mortality, morbidity and longevity business.

Management measures results for the P&C and Specialty segments 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 Life and Health segment on the basis of the allocated underwriting result, which includes underwriting result and net investment income allocated to life business.

The segment results for the years ended December 31, 2019, 2018 and 2017 are presented below (in millions of U.S. dollars, except ratios).

Segment Information

For the year ended December 31, 2019



	P&C segment			Specialty segment			Total Non-life			Life and Health segment			Corporate and Other			Total
Gross premiums written	$	3,579		$	2,213		$	5,792		$	1,493		$	—		$	7,285
Net premiums written	$	3,302		$	2,137		$	5,439		$	1,470		$	—		$	6,909
Increase in unearned premiums	(231		)	(150		)	(381		)	(3		)	—			(384		)
Net premiums earned	$	3,071		$	1,987		$	5,058		$	1,467		$	—		$	6,525
Losses and loss expenses	(2,167		)	(1,496		)	(3,663		)	(1,263		)	3			(4,923		)
Acquisition costs	(783		)	(523		)	(1,306		)	(149		)	—			(1,455		)
Technical result	$	121		$	(32	)	$	89		$	55		$	3		$	147
Other (loss) income	(1		)	—			(1		)	15			1			15
Other expenses	(80		)	(28		)	(108		)	(69		)	(193		)	(370		)
Underwriting result	$	40		$	(60	)	$	(20	)	$	1		n/a			$	(208	)
Net investment income										72			377			449
Allocated underwriting result										$	73		n/a			n/a
Net realized and unrealized investment gains													887			887
Interest expense													(40		)	(40		)
Loss on redemption of debt													(15		)	(15		)
Amortization of intangible assets													(12		)	(12		)
Net foreign exchange losses													(87		)	(87		)
Income tax expense													(53		)	(53		)
Interest in earnings of equity method investments													16			16
Net income													n/a			$	937
Loss ratio ⁽¹⁾	70.6		%	75.3		%	72.4		%
Acquisition ratio ⁽²⁾	25.5			26.3			25.8
Technical ratio ⁽³⁾	96.1		%	101.6		%	98.2		%
Other expense ratio ⁽⁴⁾	2.6			1.4			2.1
Combined ratio ⁽⁵⁾	98.7		%	103.0		%	100.3		%

(1) Loss ratio is obtained by dividing losses and loss expenses by net premiums earned.

(2) Acquisition ratio is obtained by dividing acquisition costs by net premiums earned.

(3) Technical ratio is defined as the sum of the loss ratio and the acquisition ratio.

(4) Other expense ratio is obtained by dividing other expenses by net premiums earned.

(5) Combined ratio is defined as the sum of the technical ratio and the other expense ratio.

Segment Information

For the year ended December 31, 2018



	P&C segment			Specialty segment			Total Non-life			Life and Health segment			Corporate and Other			Total
Gross premiums written	$	3,015		$	2,050		$	5,065		$	1,235		$	—		$	6,300
Net premiums written	$	2,722		$	1,870		$	4,592		$	1,211		$	—		$	5,803
(Increase) decrease in unearned premiums	(187		)	(103		)	(290		)	1			—			(289		)
Net premiums earned	$	2,535		$	1,767		$	4,302		$	1,212		$	—		$	5,514
Losses and loss expenses	(2,073		)	(1,096		)	(3,169		)	(1,025		)	—			(4,194		)
Acquisition costs	(606		)	(502		)	(1,108		)	(129		)	—			(1,237		)
Technical result	$	(144	)	$	169		$	25		$	58		$	—		$	83
Other income	30			—			30			13			7			50
Other expenses	(75		)	(27		)	(102		)	(51		)	(153		)	(306		)
Underwriting result	$	(189	)	$	142		$	(47	)	$	20		n/a			$	(173	)
Net investment income										66			350			416
Allocated underwriting result										$	86		n/a			n/a
Net realized and unrealized investment losses													(390		)	(390		)
Interest expense													(43		)	(43		)
Amortization of intangible assets													(35		)	(35		)
Net foreign exchange gains													119			119
Income tax benefit													9			9
Interest in earnings of equity method investments													11			11
Net loss													n/a			$	(86	)
Loss ratio	81.8		%	62.0		%	73.7		%
Acquisition ratio	23.9			28.4			25.8
Technical ratio	105.7		%	90.4		%	99.5		%
Other expense ratio	3.0			1.5			2.4
Combined ratio	108.7		%	91.9		%	101.9		%

Segment Information

For the year ended December 31, 2017



	P&C segment			Specialty segment			Total Non-life			Life and Health segment			Corporate and Other			Total
Gross premiums written	$	2,671		$	1,934		$	4,605		$	983		$	—		$	5,588
Net premiums written	$	2,375		$	1,780		$	4,155		$	965		$	—		$	5,120
(Increase) decrease in unearned premiums	(45		)	(55		)	(100		)	5			—			(95		)
Net premiums earned	$	2,330		$	1,725		$	4,055		$	970		$	—		$	5,025
Losses and loss expenses	(2,051		)	(955		)	(3,006		)	(835		)	—			(3,841		)
Acquisition costs	(534		)	(489		)	(1,023		)	(97		)	—			(1,120		)
Technical result	$	(255	)	$	281		$	26		$	38		$	—		$	64
Other (loss) income	—			(1		)	(1		)	14			2			15
Other expenses	(88		)	(33		)	(121		)	(44		)	(183		)	(348		)
Underwriting result	$	(343	)	$	247		$	(96	)	$	8		n/a			$	(269	)
Net investment income										60			342			402
Allocated underwriting result										$	68		n/a			n/a
Net realized and unrealized investment gains													232			232
Interest expense													(42		)	(42		)
Loss on redemption of debt													(2		)	(2		)
Amortization of intangible assets													(25		)	(25		)
Net foreign exchange losses													(108		)	(108		)
Income tax expense													(10		)	(10		)
Interest in earnings of equity method investments													86			86
Net income													n/a			$	264
Loss ratio	88.0		%	55.4		%	74.1		%
Acquisition ratio	22.9			28.4			25.2
Technical ratio	110.9		%	83.8		%	99.3		%
Other expense ratio	3.8			1.9			3.0
Combined ratio	114.7		%	85.7		%	102.3		%

The following table provides the geographic distribution of gross premiums written based on the location of the underlying risk for the years ended December 31, 2019, 2018 and 2017 (in millions of U.S. dollars, except percentages):



	2019				2018				2017
North America	$	3,752	51	%	$	2,929	47	%	$	2,620	47	%
Europe	2,155		30		2,152		34		1,866		33
Asia, Australia and New Zealand	835		11		699		11		565		10
Latin America and the Caribbean	264		4		260		4		267		5
Middle East, Africa, Russia and the Commonwealth of Independent States (CIS)	279		4		260		4		270		5
Total	$	7,285	100	%	$	6,300	100	%	$	5,588	100	%

The following table provides the gross premiums written by segment and line of business for the years ended December 31, 2019, 2018 and 2017 (in millions of U.S. dollars, except percentages):



	2019		2018		2017
P&C
Casualty	$	1,394	$	1,052	$	804
Property	644		615		547
Catastrophe	537		478		481
Motor	400		308		262
U.S. health	391		405		416
Multiline and other	213		157		161
Total P&C	$	3,579	$	3,015	$	2,671
Specialty
Financial risks	$	587	$	549	$	490
Agriculture	483		506		557
Aviation and space	286		228		219
Multiline and other	276		307		199
Energy	183		79		63
Property	151		112		90
Marine	132		103		154
Engineering	102		124		117
Casualty	13		42		45
Total Specialty	$	2,213	$	2,050	$	1,934
Life and Health	$	1,493	$	1,235	$	983
Total	$	7,285	$	6,300	$	5,588

The Company produces its business both through brokers and through direct relationships with insurance company clients. None of the Company’s cedants individually accounted for more than 4% of total gross premiums written during each of the years ended December 31, 2019, 2018 and 2017.

The Company has two brokers that individually accounted for 10% or more of its gross premiums written during the years ended December 31, 2019, 2018 and 2017, as follows:



	2019		2018		2017
Marsh (including Guy Carpenter)	28	%	22	%	25	%
Aon Group (including the Benfield Group)	22	%	22	%	22	%

The following table summarizes the percentage of gross premiums written through these two brokers by segment for the years ended December 31, 2019, 2018 and 2017:



	2019		2018		2017
P&C	60	%	53	%	53	%
Specialty	62	%	52	%	56	%
Life and Health	8	%	11	%	12	%