Segment Information

3 Months Ended

Mar. 31, 2012

Disclosure - Segment Reporting [Abstract]

Segment Information

8. Segment Information

The Company monitors the performance of its operations in three segments, Non-life, Life and Corporate and Otheras described in Note 22 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K/A for the year ended December 31, 2011.The Non-life segment is further divided into four sub-segments: North America, Global (Non-U.S.) Property and Casualty (Global (Non-U.S.) P&C), Global (Non-U.S.) Specialty and Catastrophe.

Because 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 products, net investment income is considered in Management's assessment of the profitability of the Life segment. The following items are not considered in evaluating the results of the Non-life and Life 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 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 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 expenses from life policy benefits, acquisition costs and other operating expenses.

The followingtables provide a summary of the segment results for the three monthsended March 31, 2012 and 2011 (in millions of U.S. dollars, except ratios):

Segment Information
For the three months ended March 31, 2012
					Global			Global						Total
		North			(Non-U.S.)			(Non-U.S.)						Non-life			Life		Corporate
		America			P&C			Specialty			Catastrophe			Segment			Segment		and Other		Total
Gross premiums written		$	341		$	347		$	417		$	242		$	1,347		$	217	$	3	$	1,567
Net premiums written		$	341		$	346		$	353		$	215		$	1,255		$	215	$	3	$	1,473
Increase in unearned premiums			(103)			(187)			(45)			(125)			(460)			(21)		(2)		(483)
Net premiums earned		$	238		$	159		$	308		$	90		$	795		$	194	$	1	$	990
Losses and loss expenses and
life policy benefits			(133)			(98)			(194)			(2)			(427)			(149)		—		(576)
Acquisition costs			(66)			(38)			(70)			(9)			(183)			(29)		—		(212)
Technical result		$	39		$	23		$	44		$	79		$	185		$	16	$	1	$	202
Other income															1			—		1		2
Other operating expenses															(63)			(12)		(23)		(98)
Underwriting result														$	123		$	4		n/a	$	106
Net investment income																		17		130		147
Allocated underwriting result	(1)																$	21		n/a		n/a
Net realized and unrealized investment gains																				193		193
Interest expense																				(12)		(12)
Amortization of intangible assets																				(9)		(9)
Net foreign exchange losses																				(3)		(3)
Income tax expense																				(67)		(67)
Interest in earnings of equity investments																				5		5
Net income																				n/a	$	360
Loss ratio (2)			55.9	%		61.6	%		63.2	%		2.1	%		53.8	%
Acquisition ratio (3)			27.5			23.9			22.6			10.5			23.0
Technical ratio (4)			83.4	%		85.5	%		85.8	%		12.6	%		76.8	%
Other operating expense ratio (5)															7.9
Combined ratio (6)															84.7	%

_______________

(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 March 31, 2011
				Global			Global						Total
	North			(Non-U.S.)			(Non-U.S.)						Non-life			Life		Corporate
	America			P&C			Specialty			Catastrophe			Segment			Segment		and Other		Total
Gross premiums written	$	338		$	318		$	375		$	317		$	1,348		$	208	$	2	$	1,558
Net premiums written	$	338		$	317		$	315		$	292		$	1,262		$	206	$	2	$	1,470
(Increase) decrease in unearned premiums		(79)			(136)			2			(168)			(381)			(22)		(2)		(405)
Net premiums earned	$	259		$	181		$	317		$	124		$	881		$	184	$	—	$	1,065
Losses and loss expenses and
life policy benefits		(174)			(150)			(221)			(918)			(1,463)			(145)		—		(1,608)
Acquisition costs		(66)			(40)			(80)			8			(178)			(30)		—		(208)
Technical result	$	19		$	(9)		$	16		$	(786)		$	(760)		$	9	$	—	$	(751)
Other income														1			—		1		2
Other operating expenses														(66)			(12)		(26)		(104)
Underwriting result													$	(825)		$	(3)		n/a	$	(853)
Net investment income																	15		137		152
Allocated underwriting result																$	12		n/a		n/a
Net realized and unrealized investment losses																			(112)		(112)
Interest expense																			(12)		(12)
Amortization of intangible assets																			(9)		(9)
Net foreign exchange gains																			—		—
Income tax benefit																			26		26
Interest in earnings of equity investments																			1		1
Net loss																			n/a	$	(807)
Loss ratio		67.0	%		82.8	%		69.7	%		743.0	%		166.0	%
Acquisition ratio		25.6			22.1			25.3			(6.7)			20.3
Technical ratio		92.6	%		104.9	%		95.0	%		736.3	%		186.3	%
Other operating expense ratio														7.4
Combined ratio														193.7	%