Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2018

Summary of Gross and Net Written and Earned Premiums, Underwriting Results, Ratios and Reserves for Each of Company's Business Segments

The following tables provide a summary of gross and net written and earned premiums, underwriting results, ratios and reserves for each of the Company’s business segments for the three months ended June 30, 2018 and 2017:



	Three Months Ended June 30, 2018
	Reinsurance			Insurance			Total
	($ in millions)
Underwriting Revenues
Gross written premiums	$	326.0		$	527.8		$	853.8
Net written premiums	266.9			219.1			486.0
Gross earned premiums	366.2			479.3			845.5
Net earned premiums	289.0			230.5			519.5
Underwriting Expenses
Losses and loss adjustment expenses	167.0			143.4			310.4
Amortization of deferred policy acquisition costs	62.8			23.1			85.9
General and administrative expenses	27.9			57.2			85.1
Underwriting income	$	31.3		$	6.8		38.1
Corporate expenses							(16.0		)
Non-operating expenses ⁽¹⁾							(9.1		)
Net investment income							50.4
Realized and unrealized investment gains							3.5
Realized and unrealized investment losses							(24.2		)
Realized loss on the debt extinguishment							(8.6		)
Change in fair value of loan notes issued by variable interest entities							(3.4		)
Change in fair value of derivatives							(46.1		)
Interest expense on long term debt							(7.6		)
Net realized and unrealized foreign exchange gains							5.2
Other income							2.1
Other expenses							(0.5		)
Loss before tax							$	(16.2	)

Net reserves for loss and loss adjustment expenses	$	2,744.1		$	2,132.3		$	4,876.4
Ratios
Loss ratio	57.8		%	62.2		%	59.7		%
Policy acquisition expense ratio	21.7			10.0			16.5
General and administrative expense ratio	9.7			24.8			21.2			⁽²⁾
Expense ratio	31.4			34.8			37.7
Combined ratio	89.2		%	97.0		%	97.4		%


⁽¹⁾	Non-operating expenses includes $8.6 million of expenses related to the Company’s Effectiveness and Efficiency Program.


⁽²⁾	The general and administrative expense ratio in the “Total” column includes corporate and non-operating expenses.



	Three Months Ended June 30, 2017
	Reinsurance			Insurance			Total
	( $ in millions)
Underwriting Revenues
Gross written premiums	$	335.6		$	486.5		$	822.1
Net written premiums	285.5			293.2			578.7
Gross earned premiums	320.6			429.1			749.7
Net earned premiums	272.7			289.3			562.0
Underwriting Expenses
Losses and loss adjustment expenses	152.6			193.5			346.1
Amortization of deferred policy acquisition costs	53.4			42.9			96.3
General and administrative expenses	40.7			65.7			106.4
Underwriting income/(loss)	$	26.0		$	(12.8	)	13.2
Corporate expenses							(11.4		)
Non-operating expenses							(2.1		)
Net investment income							47.4
Realized and unrealized investment gains							49.0
Realized and unrealized investment losses							(7.0		)
Change in fair value of loan notes issued by variable interest entities							(3.3		)
Change in fair value of derivatives							17.6
Interest expense on long term debt							(7.4		)
Net realized and unrealized foreign exchange (losses)							(20.6		)
Other income							3.6
Other expenses							(2.0		)
Income before tax							$	77.0

Net reserves for loss and loss adjustment expenses	$	2,445.0		$	2,347.0		$	4,792.0
Ratios
Loss ratio	56.0		%	66.9		%	61.6		%
Policy acquisition expense ratio	19.6			14.8			17.1
General and administrative expense ratio	14.9			22.7			21.3			⁽¹⁾
Expense ratio	34.5			37.5			38.4
Combined ratio	90.5		%	104.4		%	100.0		%


⁽¹⁾	The general and administrative expense ratio in the “Total” column includes corporate and non-operating expenses.