Item 2. PROPERTIES

We lease a total of approximately 9,000 square feet in Bermuda for the operations of ACGL and our internal investment management group. Our reinsurance group leases approximately 85,000 square feet for offices in the U.S., Bermuda, Europe and Canada. The principal U.S. office of our insurance group support operations (excluding underwriting units) is in Jersey City, New Jersey where we lease approximately 107,000 square feet. Such lease expires in 2024. We lease approximately 71,000 square feet in New York City for the headquarters of the U.S. insurance group’s underwriting product lines and Northeast regional underwriting operations. Our insurance group also leases a total of approximately 255,000 square feet for its other primary U.S. offices and offices in Canada, Bermuda, Europe, South Africa and Australia. Our mortgage group leases approximately 131,000 square feet for offices in the U.S., primarily in Walnut Creek, California.

Our rental expense, net of income from subleases, was approximately $23.1 million, $18.7 million and $17.1 million for 2014, 2013 and 2012, respectively. Our future minimum rental charges for the remaining terms of our existing leases, exclusive of escalation clauses and maintenance costs and net of rental income, will be approximately $154.7 million. We believe that the above described office space is adequate for our needs. However, as we continue to develop our business, we may open additional office locations during 2015.