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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2011
SEGMENT INFORMATION [Abstract]  
SEGMENT INFORMATION [Text Block]

3.       SEGMENT INFORMATION

 

Our underwriting operations are organized around our global underwriting platforms, AXIS Insurance and AXIS Re. Therefore we have determined that we have two reportable segments, insurance and reinsurance. Except for goodwill and intangible assets, we do not allocate our assets by segment as we evaluate the underwriting results of each segment separately from the results of our investment portfolio.

 

Insurance

 

Our insurance segment provides insurance coverage on a worldwide basis. The product lines in this segment are property, marine, terrorism, aviation, credit and political risk, professional lines, liability and accident & health.

 

Reinsurance

 

Our reinsurance segment provides treaty and facultative property and casualty reinsurance to insurance companies on a worldwide basis. The product lines in this segment are catastrophe, property, professional lines, credit and bond, motor, liability, engineering and other.

 

The following tables summarize the underwriting results of our reportable segments, as well as the carrying values of allocated goodwill and intangible assets:
              
    
 At and year ended December 31, 2011 Insurance Reinsurance Total 
              
 Gross premiums written$ 2,121,829 $ 1,974,324 $ 4,096,153 
 Net premiums written  1,466,134   1,953,300   3,419,434 
 Net premiums earned  1,429,687   1,885,274   3,314,961 
 Other insurance related income  2,396   -   2,396 
 Net losses and loss expenses  (919,319)   (1,755,733)   (2,675,052) 
 Acquisition costs  (199,583)   (387,886)   (587,469) 
 General and administrative expenses  (278,147)   (103,915)   (382,062) 
 Underwriting income (loss)$ 35,034 $ (362,260)   (327,226) 
              
 Corporate expenses           (77,089) 
 Net investment income          362,430 
 Net realized investment gains          121,439 
 Foreign exchange gains          44,582 
 Interest expense and financing costs          (62,598) 
  Income before income taxes        $ 61,538 
              
 Net loss and loss expense ratio 64.3%  93.1%  80.7% 
 Acquisition cost ratio 14.0%  20.6%  17.7% 
 General and administrative expense ratio 19.4%  5.5%  13.9% 
  Combined ratio 97.7%  119.2%  112.3% 
              
 Goodwill and intangible assets$ 99,590 $ - $ 99,590 
              

    
 At and year ended December 31, 2010 Insurance Reinsurance Total 
              
 Gross premiums written$ 1,916,116 $ 1,834,420 $ 3,750,536 
 Net premiums written  1,332,220   1,815,320   3,147,540 
 Net premiums earned  1,206,493   1,740,917   2,947,410 
 Other insurance related income  2,073   -   2,073 
 Net losses and loss expenses  (569,869)   (1,107,263)   (1,677,132) 
 Acquisition costs  (152,223)   (336,489)   (488,712) 
 General and administrative expenses  (276,435)   (98,001)   (374,436) 
 Underwriting income$ 210,039 $ 199,164   409,203 
              
 Corporate expenses           (75,449) 
 Net investment income          406,892 
 Net realized investment gains          195,098 
 Foreign exchange gains          15,535 
 Interest expense and financing costs          (55,876) 
  Income before income taxes        $ 895,403 
              
 Net loss and loss expense ratio 47.2%  63.6%  56.9% 
 Acquisition cost ratio 12.6%  19.3%  16.6% 
 General and administrative expense ratio 23.0%  5.7%  15.2% 
  Combined ratio 82.8%  88.6%  88.7% 
              
 Goodwill and intangible assets$ 103,231 $ - $ 103,231 
              

              
 At and year ended December 31, 2009 Insurance Reinsurance Total 
              
 Gross premiums written$ 1,775,590 $ 1,811,705 $ 3,587,295 
 Net premiums written  1,025,061   1,791,368   2,816,429 
 Net premiums earned  1,157,966   1,633,798   2,791,764 
 Other insurance related income (loss)  (130,946)   1,265   (129,681) 
 Net losses and loss expenses  (612,694)   (811,178)   (1,423,872) 
 Acquisition costs  (113,187)   (307,308)   (420,495) 
 General and administrative expenses  (216,954)   (76,127)   (293,081) 
 Underwriting income$ 84,185 $ 440,450   524,635 
              
 Corporate expenses           (77,076) 
 Net investment income          464,478 
 Net realized investment losses          (311,584) 
 Foreign exchange losses          (28,561) 
 Interest expense and financing costs          (32,031) 
  Income before income taxes        $ 539,861 
              
 Net loss and loss expense ratio 52.9%  49.6%  51.0% 
 Acquisition cost ratio 9.8%  18.8%  15.1% 
 General and administrative expense ratio 18.7%  4.7%  13.2% 
  Combined ratio 81.4%  73.1%  79.3% 
              
 Goodwill and intangible assets$ 91,505 $ - $ 91,505 
              

The following table presents our gross premiums written by the geographical location of our subsidiaries:
      
            
 Year ended December 31,  2011  2010  2009 
            
 Bermuda $ 822,237 $ 822,530 $ 802,577 
 Europe   1,493,692   1,203,091   1,057,427 
 United States   1,780,224   1,724,915   1,727,291 
  Total gross premium written $ 4,096,153 $ 3,750,536 $ 3,587,295 
            

The following table presents our net premiums earned by segment and line of business:
           
           
 Year ended December 31, 2011 2010 2009 
           
 Insurance         
  Property$ 385,291 $ 337,525 $ 268,469 
  Marine  152,123   145,356   139,196 
  Terrorism  35,213   32,486   34,001 
  Aviation  70,681   66,636   64,245 
  Credit and political risk  97,680   89,773   188,311 
  Professional lines  536,238   444,663   381,364 
  Liability  89,555   87,481   82,380 
  Accident & health  62,906   2,573   - 
 Total Insurance  1,429,687   1,206,493   1,157,966 
           
 Reinsurance         
  Catastrophe  456,858   454,954   451,085 
  Property  356,022   323,201   311,272 
  Professional lines   281,025   285,224   266,792 
  Credit and bond  263,912   217,809   179,362 
  Motor  202,830   127,404   99,497 
  Liability  230,872   232,014   227,511 
  Engineering  65,727   71,229   66,428 
  Other  28,028   29,082   31,851 
 Total Reinsurance  1,885,274   1,740,917   1,633,798 
           
 Total $ 3,314,961 $ 2,947,410 $ 2,791,764