The following tables summarize the Company’s underwriting income or loss by segment, together with a reconciliation of underwriting income or loss to net income available to common shareholders:



	Three Months Ended
	March 31, 2014
	Insurance			Reinsurance			Mortgage			Sub-Total			Other			Total

Gross premiums written (1)	$	730,646		$	517,053		$	47,907		$	1,295,136		$	32,194		$	1,295,136
Premiums ceded	(185,044		)	(73,127		)	(4,639		)	(262,340		)	—			(230,146		)
Net premiums written	545,602			443,926			43,268			1,032,796			32,194			1,064,990
Change in unearned premiums	(68,101		)	(102,578		)	(4,503		)	(175,182		)	(30,028		)	(205,210		)
Net premiums earned	477,501			341,348			38,765			857,614			2,166			859,780
Other underwriting income	500			316			766			1,582			—			1,582
Losses and loss adjustment expenses	(286,770		)	(139,636		)	(8,478		)	(434,884		)	(1,356		)	(436,240		)
Acquisition expenses, net	(76,932		)	(73,433		)	(9,154		)	(159,519		)	(823		)	(160,342		)
Other operating expenses	(81,144		)	(36,195		)	(13,876		)	(131,215		)	(1,109		)	(132,324		)
Underwriting income (loss)	$	33,155		$	92,400		$	8,023		133,578			(1,122		)	132,456

Net investment income										66,993			1			66,994
Net realized gains										19,697			—			19,697
Net impairment losses recognized in earnings										(2,971		)	—			(2,971		)
Equity in net income of investment funds accounted for using the equity method										3,253			—			3,253
Other income (loss)										(2,104		)	—			(2,104		)
Other expenses										(10,799		)	(2,676		)	(13,475		)
Interest expense										(14,404		)	—			(14,404		)
Net foreign exchange gains (losses)										(6,656		)	93			(6,563		)
Income before income taxes										186,587			(3,704		)	182,883
Income tax expense										(3,738		)	—			(3,738		)
Net income (loss)										182,849			(3,704		)	179,145
Net (income) loss attributable to noncontrolling interests										—			3,355			3,355
Net income available to Arch										182,849			(349		)	182,500
Preferred dividends										(5,484		)	—			(5,484		)
Net income available to Arch common shareholders										$	177,365		$	(349	)	$	177,016

Underwriting Ratios
Loss ratio	60.1		%	40.9		%	21.9		%	50.7		%	62.6		%	50.7		%
Acquisition expense ratio (2)	16.0		%	21.5		%	23.6		%	18.5		%	38.0		%	18.6		%
Other operating expense ratio	17.0		%	10.6		%	35.8		%	15.3		%	51.2		%	15.4		%
Combined ratio	93.1		%	73.0		%	81.3		%	84.5		%	151.8		%	84.7		%

Total investable assets										$	14,261,106		$	1,083,280		$	15,344,386
Total assets										20,653,897			1,146,461			21,800,358
Total liabilities										14,860,124			35,371			14,895,495

_________________________________________________


(1)	Certain amounts included in the gross premiums written of each segment are related to intersegment transactions. Accordingly, the sum of gross premiums written for each segment does not agree to the total gross premiums written as shown in the table above due to the elimination of intersegment transactions in the total.


(2)	The acquisition expense ratio is adjusted to include certain other underwriting income.



	Three Months Ended
	March 31, 2013
	Insurance			Reinsurance			Mortgage			Sub-Total			Other			Total

Gross premiums written (1)	$	688,817		$	450,447		$	25,758		$	1,163,699		$	—		$	1,163,699
Premiums ceded	(184,267		)	(27,979		)	—			(210,923		)	—			(210,923		)
Net premiums written	504,550			422,468			25,758			952,776			—			952,776
Change in unearned premiums	(59,585		)	(126,315		)	(14,106		)	(200,006		)	—			(200,006		)
Net premiums earned	444,965			296,153			11,652			752,770			—			752,770
Other underwriting income	525			13			—			538			—			538
Losses and loss adjustment expenses	(283,467		)	(113,857		)	(2,079		)	(399,403		)	—			(399,403		)
Acquisition expenses, net	(70,758		)	(53,143		)	(3,691		)	(127,592		)	—			(127,592		)
Other operating expenses	(76,315		)	(32,197		)	(1,403		)	(109,915		)	—			(109,915		)
Underwriting income	$	14,950		$	96,969		$	4,479		116,398			—			116,398

Net investment income										65,672			—			65,672
Net realized gains										58,340			—			58,340
Net impairment losses recognized in earnings										(2,246		)	—			(2,246		)
Equity in net income of investment funds accounted for using the equity method										13,823			—			13,823
Other income (loss)										1,244			—			1,244
Other expenses										(10,268		)	—			(10,268		)
Interest expense										(5,898		)	—			(5,898		)
Net foreign exchange gains										24,264			—			24,264
Income before income taxes										261,329			—			261,329
Income tax expense										(4,853		)	—			(4,853		)
Net income										256,476			—			256,476
Net (income) loss attributable to noncontrolling interests										—			—			—
Net income available to Arch										256,476			—			256,476
Preferred dividends										(5,484		)	—			(5,484		)
Net income available to Arch common shareholders										$	250,992		$	—		$	250,992

Underwriting Ratios
Loss ratio	63.7		%	38.4		%	17.8		%	53.1		%	—		%	53.1		%
Acquisition expense ratio (2)	15.8		%	17.9		%	31.7		%	16.9		%	—		%	16.9		%
Other operating expense ratio	17.2		%	10.9		%	12.0		%	14.6		%	—		%	14.6		%
Combined ratio	96.7		%	67.2		%	61.5		%	84.6		%	—		%	84.6		%

Total investable assets										$	13,132,116		$	—		$	13,132,116
Total assets										18,757,061			—			18,757,061
Total liabilities										13,421,531			—			13,421,531

_________________________________________________


(1)	Certain amounts included in the gross premiums written of each segment are related to intersegment transactions. Accordingly, the sum of gross premiums written for each segment does not agree to the total gross premiums written as shown in the table above due to the elimination of intersegment transactions in the total.


(2)	The acquisition expense ratio is adjusted to include other underwriting income.