UNAUDITED CONDENSED QUARTERLY FINANCIAL DATA (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

UNAUDITED SUMMARY OF QUARTERLY FINANCIAL RESULTS

An unaudited summary of quarterly financial results is shown in the following table:




Quarters ended	Mar 31			Jun 30			Sep 30			Dec 31

2019
Net premiums earned	$	1,134,212		$	1,123,607		$	1,157,307		$	1,172,051
Net investment income	107,303			137,949			115,763			117,557
Net investment gains	12,767			21,225			14,527			42,712
Underwriting income (loss) ^{(1) (2)}	77,822			78,659			(78,718		)	(49,254		)
Net income (loss) available (attributable) to common shareholders	98,125			166,387			27,745			(9,897		)
Earnings (loss) per common share	$	1.17		$	1.98		$	0.33		$	(0.12	)
Earnings (loss) per diluted common share	$	1.16		$	1.97		$	0.33		$	(0.12	)

2018
Net premiums earned	$	1,167,402		$	1,185,548		$	1,224,075		$	1,214,469
Net investment income	100,999			109,960			114,421			113,128
Net investment losses	(14,830		)	(45,093		)	(17,628		)	(72,667		)
Underwriting income (loss)	143,737			115,726			59,026			(194,664		)
Net income (loss) available (attributable) to common shareholders	62,546			92,858			43,439			(198,448		)
Earnings (loss) per common share	$	0.75		$	1.11		$	0.52		$	(2.37	)
Earnings (loss) per diluted common share	$	0.75		$	1.11		$	0.52		$	(2.37	)

(1)

Consolidated underwriting income is a pre-tax measure of underwriting profitability that takes into account net premiums earned and other insurance related income (loss) as revenues and net losses and loss expenses, acquisition costs and underwriting-related general and administrative expenses as expenses. Consolidated underwriting income (loss) is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to income (loss) before income taxes and interest in income (loss) of equity method investments, the most comparable GAAP financial measure, is provided in Note 3 'Segment Information'.

(2)

Underwriting-related general and administrative expenses includes those general and administrative expenses that are incremental and/or directly attributable to the Company's underwriting operations. Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses of $129 million, $108 million and $130 million for the years ended December 31, 2019, 2018 and 2017, respectively. Corporate expenses include holding company costs necessary to support our worldwide insurance and reinsurance operations and costs associated with operating as a publicly-traded company. As these costs are not incremental and/or directly attributable to the Company's underwriting operations, these expenses are excluded from underwriting-related general and administrative expenses.

(3)

During the quarters ended March 31, June 30, September 30 and December 31, 2019, the Company recognized reorganization expenses of $15 million, $3 million, $11 million and $8 million, respectively, related to its transformation program which was launched in 2017. This program encompasses the integration of Novae which commenced in the fourth quarter of 2017, the realignment of the accident and health business, together with other initiatives designed to increase the Company's efficiency and enhance the Company's profitability while delivering a customer-centric operating model. During the quarters ended March 31, June 30, September 30 and December 31, 2018, the Company recognized reorganization expenses of $13 million, $19 million, $16 million and $19 million, respectively (refer to Note 18 'Transaction and Reorganization Expense').

(4)

During the quarters ended March 31, June 30, September 30 and December 31, 2019, the Company recognized amortization of VOBA of $13 million, $7 million, $4 million, $2 million, respectively, related to the acquisition of Novae. During the quarters ended March 31, June 30, September 30 and December 31, 2018, the Company recognized amortization of VOBA of $57 million, $53 million, $39 million and $23 million (refer to Note 4 'Goodwill and Intangible Assets').