Segment Information

9 Months Ended

Sep. 30, 2013

Disclosure - Segment Reporting [Abstract]

Segment Information

10. 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 20 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. The Non-life segment is further divided into four sub-segments: North America, Global (Non-U.S.) P&C, Global Specialty and Catastrophe. Following the acquisition of Presidio on December 31, 2012, Presidio's results are included in the Life and Health segment.Effective January 1, 2013, the Life segment is referred to as Life and Health to reflect the inclusion of Presidio's results following its acquisition and the Global (Non-U.S.) Specialty sub-segment is referred to as Global Specialty.

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 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 following tables provide a summary of the segment results for the three monthsand nine months endedSeptember 30, 2013 and 2012 (in millions of U.S. dollars, except ratios):

Segment Information
For the three months ended September 30, 2013
					Global									Total			Life
		North			(Non-U.S.)			Global						Non-life			and Health		Corporate
		America			P&C			Specialty			Catastrophe			segment			segment		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		0		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)		0		(283)
Technical result		$	127		$	55		$	62		$	113		$	357		$	24	$	6	$	387
Other income															2			3		0		5
Other operating expenses															(62)			(17)		(29)		(108)
Underwriting result														$	297		$	10		n/a	$	284
Net investment income																		15		107		122
Allocated underwriting result	(1)																$	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 investments																				6		6
Net income																				n/a	$	338
Loss ratio (2)			46.3	%		46.0	%		59.8	%		24.5	%		47.5	%
Acquisition ratio (3)			23.9			25.7			24.0			9.0			22.1
Technical ratio (4)			70.2	%		71.7	%		83.8	%		33.5	%		69.6	%
Other operating expense ratio (5)															5.3
Combined ratio (6)															74.9	%

_______________

(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, 2012
				Global									Total			Life
	North			(Non-U.S.)			Global						Non-life			and Health		Corporate
	America			P&C			Specialty			Catastrophe			segment			segment		and Other		Total
Gross premiums written	$	311		$	123		$	360		$	75		$	869		$	187	$	0	$	1,056
Net premiums written	$	311		$	122		$	354		$	69		$	856		$	187	$	0	$	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	$	0	$	269
Other income														1			1		1		3
Other operating expenses														(58)			(12)		(25)		(95)
Underwriting result													$	201		$	0		n/a	$	177
Net investment income																	15		120		135
Allocated underwriting result																$	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		74.9	%		63.9	%		44.4	%		23.3	%		54.1	%
Acquisition ratio		24.8			24.9			21.7			8.8			21.1
Technical ratio		99.7	%		88.8	%		66.1	%		32.1	%		75.2	%
Other operating expense ratio														5.5
Combined ratio														80.7	%

Segment Information
For the nine months ended September 30, 2013
				Global									Total			Life
	North			(Non-U.S.)			Global						Non-life			and Health		Corporate
	America			P&C			Specialty			Catastrophe			segment			segment		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)		0		(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 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	%

Segment Information
For the nine months ended September 30, 2012
				Global									Total			Life
	North			(Non-U.S.)			Global						Non-life			and Health		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)		0		(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	%