Segment Information

9 Months Ended

Sep. 30, 2012

Disclosure - Segment Reporting [Abstract]

Segment Information

9. 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 months and nine monthsended September 30, 2012 and 2011 (in millions of U.S. dollars, except ratios):

Segment Information
For the three months ended September 30, 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		$	311		$	123		$	360		$	75		$	869		$	187	$	-	$	1,056
Net premiums written		$	311		$	122		$	354		$	69		$	856		$	187	$	-	$	1,043
Decrease in unearned premiums			24			50			9			99			182			8		4		194
Net premiums earned		$	335		$	172		$	363		$	168		$	1,038		$	195	$	4	$	1,237
Losses and loss expenses and
life policy benefits			(251)			(110)			(161)			(39)			(561)			(157)		(3)		(721)
Acquisition costs			(83)			(42)			(79)			(15)			(219)			(27)		(1)		(247)
Technical result		$	1		$	20		$	123		$	114		$	258		$	11	$	-	$	269
Other income															1			1		1		3
Other operating expenses															(58)			(12)		(25)		(95)
Underwriting result														$	201		$	-		n/a	$	177
Net investment income																		15		120		135
Allocated underwriting result	(1)																$	15		n/a		n/a
Net realized and unrealized investment gains																				257		257
Interest expense																				(12)		(12)
Amortization of intangible assets																				(9)		(9)
Net foreign exchange losses																				(2)		(2)
Income tax expense																				(64)		(64)
Interest in earnings of equity investments																				5		5
Net income																				n/a	$	487
Loss ratio (2)			74.9	%		63.9	%		44.4	%		23.3	%		54.1	%
Acquisition ratio (3)			24.8			24.9			21.7			8.8			21.1
Technical ratio (4)			99.7	%		88.8	%		66.1	%		32.1	%		75.2	%
Other operating expense ratio (5)															5.5
Combined ratio (6)															80.7	%

_______________

(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 September 30, 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	$	288		$	144		$	368		$	95		$	895		$	194	$	6	$	1,095
Net premiums written	$	287		$	144		$	360		$	89		$	880		$	194	$	6	$	1,080
Decrease in unearned premiums		42			49			2			110			203			9		2		214
Net premiums earned	$	329		$	193		$	362		$	199		$	1,083		$	203	$	8	$	1,294
Losses and loss expenses and
life policy benefits		(192)			(102)			(247)			(169)			(710)			(168)		(4)		(882)
Acquisition costs		(80)			(52)			(82)			(15)			(229)			(33)		-		(262)
Technical result	$	57		$	39		$	33		$	15		$	144		$	2	$	4	$	150
Other income														1			-		-		1
Other operating expenses														(69)			(12)		(23)		(104)
Underwriting result													$	76		$	(10)		n/a	$	47
Net investment income																	19		145		164
Allocated underwriting result																$	9		n/a		n/a
Net realized and unrealized investment gains																			26		26
Interest expense																			(12)		(12)
Amortization of intangible assets																			(9)		(9)
Net foreign exchange gains																			11		11
Income tax expense																			(42)		(42)
Interest in losses of equity investments																			(5)		(5)
Net income																			n/a	$	180
Loss ratio		58.4	%		52.9	%		68.3	%		85.0	%		65.6	%
Acquisition ratio		24.3			26.9			22.7			7.4			21.1
Technical ratio		82.7	%		79.8	%		91.0	%		92.4	%		86.7	%
Other operating expense ratio														6.4
Combined ratio														93.1	%

Segment Information
For the nine months ended September 30, 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	$	924		$	600		$	1,178		$	475		$	3,177		$	604	$	6	$	3,787
Net premiums written	$	922		$	596		$	1,098		$	429		$	3,045		$	601	$	6	$	3,652
Increase in unearned premiums		(59)			(100)			(64)			(98)			(321)			(12)		(1)		(334)
Net premiums earned	$	863		$	496		$	1,034		$	331		$	2,724		$	589	$	5	$	3,318
Losses and loss expenses and
life policy benefits		(568)			(327)			(569)			(58)			(1,522)			(479)		(3)		(2,004)
Acquisition costs		(218)			(120)			(241)			(30)			(609)			(82)		-		(691)
Technical result	$	77		$	49		$	224		$	243		$	593		$	28	$	2	$	623
Other income														2			3		3		8
Other operating expenses														(187)			(38)		(74)		(299)
Underwriting result													$	408		$	(7)		n/a	$	332
Net investment income																	49		387		436
Allocated underwriting result																$	42		n/a		n/a
Net realized and unrealized investment gains																			488		488
Interest expense																			(37)		(37)
Amortization of intangible assets																			(27)		(27)
Net foreign exchange gains																			3		3
Income tax expense																			(181)		(181)
Interest in earnings of equity investments																			9		9
Net income																			n/a	$	1,023
Loss ratio		65.9	%		65.9	%		55.1	%		17.4	%		55.9	%
Acquisition ratio		25.2			24.3			23.3			9.1			22.3
Technical ratio		91.1	%		90.2	%		78.4	%		26.5	%		78.2	%
Other operating expense ratio														6.9
Combined ratio														85.1	%

Segment Information
For the nine months ended September 30, 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	$	868		$	585		$	1,092		$	581		$	3,126		$	597	$	12	$	3,735
Net premiums written	$	868		$	581		$	1,007		$	542		$	2,998		$	596	$	12	$	3,606
(Increase) decrease in unearned premiums		(18)			(14)			14			(110)			(128)			(8)		(4)		(140)
Net premiums earned	$	850		$	567		$	1,021		$	432		$	2,870		$	588	$	8	$	3,466
Losses and loss expenses and
life policy benefits		(556)			(379)			(675)			(1,209)			(2,819)			(479)		(5)		(3,303)
Acquisition costs		(210)			(145)			(240)			(16)			(611)			(89)		-		(700)
Technical result	$	84		$	43		$	106		$	(793)		$	(560)		$	20	$	3	$	(537)
Other income														4			-		1		5
Other operating expenses														(206)			(38)		(78)		(322)
Underwriting result													$	(762)		$	(18)		n/a	$	(854)
Net investment income																	50		424		474
Allocated underwriting result																$	32		n/a		n/a
Net realized and unrealized investment losses																			(8)		(8)
Interest expense																			(37)		(37)
Amortization of intangible assets																			(27)		(27)
Net foreign exchange gains																			20		20
Income tax expense																			(66)		(66)
Interest in losses of equity investments																			(5)		(5)
Net loss																			n/a	$	(503)
Loss ratio		65.5	%		66.8	%		66.1	%		279.9	%		98.2	%
Acquisition ratio		24.6			25.7			23.5			3.5			21.3
Technical ratio		90.1	%		92.5	%		89.6	%		283.4	%		119.5	%
Other operating expense ratio														7.2
Combined ratio														126.7	%