Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2019

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 March 31, 2019 and 2018:



	Three Months Ended March 31, 2019
	Reinsurance			Insurance			Total
	($ in millions)
Underwriting Revenues
Gross written premiums	$	538.4		$	475.4		$	1,013.8
Net written premiums	395.6			222.0			617.6
Gross earned premiums	336.5			480.5			817.0
Net earned premiums	276.9			233.7			510.6
Underwriting Expenses
Losses and loss adjustment expenses	165.8			146.0			311.8
Amortization of deferred policy acquisition costs	62.6			25.6			88.2
General and administrative expenses	27.2			59.0			86.2
Underwriting income	$	21.3		$	3.1		24.4
Corporate expenses							(11.9		)
Non-operating expenses ⁽¹⁾							(39.2		)
Net investment income							51.5
Realized and unrealized investment gains							42.0
Realized and unrealized investment losses							(6.2		)
Change in fair value of loan notes issued by variable interest entities							(1.5		)
Change in fair value of derivatives							(53.3		)
Interest expense on long term debt							(5.5		)
Net realized and unrealized foreign exchange gains							5.1
Other income							1.7
Other expenses							(0.9		)
Income before tax							$	6.2

Net reserves for loss and loss adjustment expenses	$	2,871.5		$	2,005.9		$	4,877.4
Ratios
Loss ratio	59.9		%	62.5		%	61.1		%
Policy acquisition expense ratio	22.6			11.0			17.3
General and administrative expense ratio	9.8			25.2			26.9			⁽²⁾
Expense ratio	32.4			36.2			44.2
Combined ratio	92.3		%	98.7		%	105.3		%


⁽¹⁾	Non-operating expenses includes $6.1 million of expenses related to the Company’s operating effectiveness and efficiency program (the “Effectiveness and Efficiency Program”) and $29.8 million of fees related to or triggered by the Merger.


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



	Three Months Ended March 31, 2018
	Reinsurance			Insurance			Total
	( $ in millions)
Underwriting Revenues
Gross written premiums	$	623.5		$	493.3		$	1,116.8
Net written premiums	425.0			210.5			635.5
Gross earned premiums	375.0			467.6			842.6
Net earned premiums	282.5			251.0			533.5
Underwriting Expenses
Losses and loss adjustment expenses	166.9			143.3			310.2
Amortization of deferred policy acquisition costs	55.9			34.9			90.8
General and administrative expenses	31.6			63.6			95.2
Underwriting income	$	28.1		$	9.2		37.3
Corporate expenses							(13.7		)
Non-operating expenses⁽¹⁾							(12.1		)
Net investment income							47.3
Realized and unrealized investment gains							100.6
Realized and unrealized investment losses							(138.3		)
Change in fair value of loan notes issued by variable interest entities							1.0
Change in fair value of derivatives							23.5
Interest expense on long term debt							(7.4		)
Net realized and unrealized foreign exchange (losses)							(4.7		)
Other income							2.1
Other expenses							(1.2		)
Income before tax							$	34.4

Net reserves for loss and loss adjustment expenses	$	2,823.6		$	2,244.5		$	5,068.1
Ratios
Loss ratio	59.1		%	57.1		%	58.1		%
Policy acquisition expense ratio	19.8			13.9			17.0
General and administrative expense ratio	11.2			25.3			22.7			⁽²⁾
Expense ratio	31.0			39.2			39.7
Combined ratio	90.1		%	96.3		%	97.8		%


⁽¹⁾	Non-operating expenses includes $11.8 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.