Segment Reporting Disclosures

The Company monitors and reports its ongoing underwriting operations in the following three segments: U.S. Insurance, International Insurance and Reinsurance. In determining how to aggregate and monitor its underwriting results, the Company considers many factors, including the geographic location and regulatory environment of the insurance entity underwriting the risk, the nature of the insurance product sold, the type of account written and the type of customer served. The U.S. Insurance segment includes all direct business and facultative placements written by the Company's insurance subsidiaries domiciled in the United States. The International Insurance segment includes all direct business and facultative placements written by the Company's insurance subsidiaries domiciled outside of the United States, including the Company's syndicate at Lloyd's of London. The Reinsurance segment includes all treaty reinsurance written across the Company. Results for lines of business discontinued prior to, or in conjunction with, acquisitions, including the results attributable to the run-off of life and annuity reinsurance business, are reported in the Other Insurance (Discontinued Lines) segment. All investing activities related to the Company's insurance operations are included in the Investing segment.

The Company's non-insurance operations include the Company's Markel Ventures operations, which primarily consist of controlling interests in various industrial and service businesses. The Company's non-insurance operations also include the results of the Company's legal and professional consulting services. For purposes of segment reporting, the Company's non-insurance operations are not considered to be a reportable segment.

Segment profit for the Investing segment is measured by net investment income and net realized investment gains or losses. Segment profit or loss for each of the Company's underwriting segments is measured by underwriting profit or loss. The property and casualty insurance industry commonly defines underwriting profit or loss as earned premiums net of losses and loss adjustment expenses and underwriting, acquisition and insurance expenses. Underwriting profit or loss does not replace operating income or net income computed in accordance with U.S. GAAP as a measure of profitability. Underwriting profit or loss provides a basis for management to evaluate the Company's underwriting performance. Segment profit or loss for the Company's underwriting segments also includes other revenues and other expenses, primarily related to the run-off of managing general agent operations that were discontinued in conjunction with acquisitions. Other revenues and other expenses in the Other Insurance (Discontinued Lines) segment are comprised of the results attributable to the run-off of life and annuity reinsurance business.

For management reporting purposes, the Company allocates assets to its underwriting, investing and non-insurance operations. Underwriting assets are all assets not specifically allocated to the Investing segment or to the Company's non-insurance operations. Underwriting and investing assets are not allocated to the U.S. Insurance, International Insurance, Reinsurance or Other Insurance (Discontinued Lines) segments since the Company does not manage its assets by underwriting segment. The Company does not allocate capital expenditures for long-lived assets to any of its underwriting segments for management reporting purposes.

a)The following tables summarize the Company's segment disclosures.



	Quarter Ended June 30, 2015
(dollars in thousands)	U.S. Insurance			International Insurance			Reinsurance			Other Insurance (Discontinued Lines)				Investing		Consolidated
Gross premium volume	$	668,853		$	338,159		$	258,745		$	29			$	—	$	1,265,786
Net written premiums	554,638			264,129			215,520			57				—		1,034,344

Earned premiums	520,446			223,941			213,140			30				—		957,557
Losses and loss adjustment expenses:
Current accident year	(341,335		)	(168,896		)	(154,623		)	—				—		(664,854		)
Prior accident years	68,620			43,373			15,118			1,549				—		128,660
Underwriting, acquisition and insurance expenses	(211,856		)	(94,617		)	(73,170		)	(9		)		—		(379,652		)
Underwriting profit	35,875			3,801			465			1,570				—		41,711
Net investment income	—			—			—			—				90,586		90,586
Net realized investment gains	—			—			—			—				6,105		6,105
Other revenues (insurance)	2,203			915			469			350				—		3,937
Other expenses (insurance)	(1,284		)	(1,318		)	—			(3,348		)		—		(5,950		)
Segment profit (loss)	$	36,794		$	3,398		$	934		$	(1,428	)		$	96,691	$	136,389
Other revenues (non-insurance)																246,420
Other expenses (non-insurance)																(236,286		)
Amortization of intangible assets																(16,949		)
Interest expense																(29,288		)
Income before income taxes																$	100,286
U.S. GAAP combined ratio ⁽¹⁾	93		%	98		%	100		%	NM			⁽²⁾			96		%



	Quarter Ended June 30, 2014
(dollars in thousands)	U.S. Insurance			International Insurance			Reinsurance			Other Insurance (Discontinued Lines)				Investing		Consolidated
Gross premium volume	$	681,371		$	359,120		$	302,950		$	(63	)		$	—	$	1,343,378
Net written premiums	560,282			270,552			253,085			412				—		1,084,331

Earned premiums	499,083			239,861			226,289			366				—		965,599
Losses and loss adjustment expenses:
Current accident year	(336,514		)	(171,930		)	(161,466		)	—				—		(669,910		)
Prior accident years	37,883			29,570			13,353			(21,302		)		—		59,504
Underwriting, acquisition and insurance expenses	(198,914		)	(88,442		)	(78,263		)	(368		)		—		(365,987		)
Underwriting profit (loss)	1,538			9,059			(87		)	(21,304		)		—		(10,794		)
Net investment income	—			—			—			—				92,169		92,169
Net realized investment gains	—			—			—			—				7,120		7,120
Other revenues (insurance)	660			4,357			1,032			143				—		6,192
Other expenses (insurance)	(1,464		)	(4,113		)	(1,097		)	(8,670		)		—		(15,344		)
Segment profit (loss)	$	734		$	9,303		$	(152	)	$	(29,831	)		$	99,289	$	79,343
Other revenues (non-insurance)																187,891
Other expenses (non-insurance)																(169,598		)
Amortization of intangible assets																(13,488		)
Interest expense																(29,789		)
Income before income taxes																$	54,359
U.S. GAAP combined ratio ⁽¹⁾	100		%	96		%	100		%	NM			⁽²⁾			101		%


⁽¹⁾	The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses and underwriting, acquisition and insurance expenses to earned premiums.


⁽²⁾	NM – Ratio is not meaningful.



	Six Months Ended June 30, 2015
(dollars in thousands)	U.S. Insurance			International Insurance			Reinsurance			Other Insurance (Discontinued Lines)				Investing		Consolidated
Gross premium volume	$	1,254,218		$	627,386		$	636,582		$	73			$	—	$	2,518,259
Net written premiums	1,050,807			486,837			531,732			398				—		2,069,774

Earned premiums	1,035,000			429,902			435,894			411				—		1,901,207
Losses and loss adjustment expenses:
Current accident year	(658,092		)	(317,740		)	(303,363		)	—				—		(1,279,195		)
Prior accident years	136,201			120,023			41,505			(1,723		)		—		296,006
Underwriting, acquisition and insurance expenses	(397,116		)	(173,411		)	(149,723		)	(87		)		—		(720,337		)
Underwriting profit (loss)	115,993			58,774			24,313			(1,399		)		—		197,681
Net investment income	—			—			—			—				183,461		183,461
Net realized investment gains	—			—			—			—				11,676		11,676
Other revenues (insurance)	3,605			6,302			892			327				—		11,126
Other expenses (insurance)	(2,189		)	(2,722		)	—			(10,697		)		—		(15,608		)
Segment profit (loss)	$	117,409		$	62,354		$	25,205		$	(11,769	)		$	195,137	$	388,336
Other revenues (non-insurance)																499,289
Other expenses (non-insurance)																(457,629		)
Amortization of intangible assets																(31,589		)
Interest expense																(58,600		)
Income before income taxes																$	339,807
U.S. GAAP combined ratio ⁽¹⁾	89		%	86		%	94		%	NM			⁽²⁾			90		%



	Six Months Ended June 30, 2014
(dollars in thousands)	U.S. Insurance			International Insurance			Reinsurance			Other Insurance (Discontinued Lines)				Investing		Consolidated
Gross premium volume	$	1,256,604		$	653,356		$	792,911		$	264			$	—	$	2,703,135
Net written premiums	1,034,336			499,672			689,082			552				—		2,223,642

Earned premiums	982,818			462,008			469,604			544				—		1,914,974
Losses and loss adjustment expenses:
Current accident year	(648,927		)	(335,309		)	(335,366		)	—				—		(1,319,602		)
Prior accident years	81,437			71,867			41,553			(27,964		)		—		166,893
Underwriting, acquisition and insurance expenses	(392,443		)	(168,451		)	(160,235		)	(363		)		—		(721,492		)
Underwriting profit (loss)	22,885			30,115			15,556			(27,783		)		—		40,773
Net investment income	—			—			—			—				178,884		178,884
Net realized investment gains	—			—			—			—				24,514		24,514
Other revenues (insurance)	2,770			11,705			3,168			186				—		17,829
Other expenses (insurance)	(3,111		)	(7,708		)	(1,097		)	(17,285		)		—		(29,201		)
Segment profit (loss)	$	22,544		$	34,112		$	17,627		$	(44,882	)		$	203,398	$	232,799
Other revenues (non-insurance)																362,425
Other expenses (non-insurance)																(337,909		)
Amortization of intangible assets																(27,487		)
Interest expense																(59,488		)
Income before income taxes																$	170,340
U.S. GAAP combined ratio ⁽¹⁾	98		%	93		%	97		%	NM			⁽²⁾			98		%


⁽¹⁾	The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses and underwriting, acquisition and insurance expenses to earned premiums.


⁽²⁾	NM – Ratio is not meaningful.


b)	The following table reconciles segment assets to the Company's consolidated balance sheets.



(dollars in thousands)	June 30, 2015		December 31, 2014
Segment assets:
Investing	$	18,335,222	$	18,531,150
Underwriting	5,800,178		5,422,445
Total segment assets	24,135,400		23,953,595
Non-insurance operations	1,230,740		1,246,762
Total assets	$	25,366,140	$	25,200,357