The following selected consolidated GAAP financial data of the Company as of and for the years ended December 31, 2011, 2010, 2009, 2008 and 2007, were derived from the audited consolidated financial statements of the Company. The following financial data should be read in conjunction with the Consolidated Financial Statements and accompanying notes.
Years Ended December 31,
(Dollars in millions, except per share amounts)
2011
2010
2009
2008
2007
Operating data:
Gross written premiums
$
4,286.2
$
4,200.7
$
4,129.0
$
3,678.1
$
4,077.6
Net written premiums
4,108.9
3,945.6
3,929.8
3,505.2
3,919.4
Premiums earned
4,101.3
3,934.6
3,894.1
3,694.3
3,997.5
Net investment income
620.0
653.5
547.8
565.9
682.4
Realized gain on debt repurchase
-
-
78.3
-
-
Net realized capital gains (losses)
6.9
101.9
(2.3
)
(695.8
)
86.3
Incurred losses and loss adjustment
expenses (including catastrophes)
3,726.2
2,945.7
2,374.1
2,439.0
2,548.1
Net catastrophe losses (1)
1,237.6
544.1
65.2
307.2
126.5
Commission, brokerage, taxes and fees
950.5
931.9
928.3
930.7
961.8
Other underwriting expenses
182.4
166.3
167.2
148.5
139.5
Corporate expenses
16.5
14.9
17.6
13.8
13.1
Interest, fees and bond issue cost
amortization expense
52.3
55.8
72.1
79.2
91.6
Income (loss) before taxes
(233.9
)
591.2
939.3
(83.6
)
1,028.0
Income tax expense (benefit)
(153.5
)
(19.5
)
132.3
(64.8
)
188.7
Net income (loss) (2)
(80.5
)
610.8
807.0
(18.8
)
839.3
EARNINGS PER COMMON SHARE:
Basic (3)
$
(1.49
)
$
10.73
$
13.26
$
(0.30
)
$
13.25
Diluted (4)
$
(1.49
)
$
10.70
$
13.22
$
(0.30
)
$
13.15
Dividends declared
$
1.92
$
1.92
$
1.92
$
1.92
$
1.92
Certain GAAP financial ratios: (5)
Loss ratio
90.9
%
74.9
%
61.0
%
66.0
%
63.7
%
Other underwriting expense ratio
27.6
%
27.9
%
28.1
%
29.2
%
27.6
%
Combined ratio (2)
118.5
%
102.8
%
89.1
%
95.2
%
91.3
%
Balance sheet data (at end of period):
Total investments and cash
$
15,797.4
$
15,365.0
$
14,918.8
$
13,714.3
$
14,936.2
Total assets
18,893.6
18,384.2
17,970.9
16,814.3
17,968.9
Loss and LAE reserves
10,123.2
9,340.2
8,937.9
8,840.7
9,040.6
Total debt
818.1
868.1
1,018.0
1,179.1
1,178.9
Total liabilities
12,822.2
12,100.7
11,869.2
11,853.9
12,284.1
Shareholders' equity
6,071.4
6,283.5
6,101.7
4,960.4
5,684.8
Book value per share (6)
112.99
115.45
102.87
80.77
90.43
_____________________________
(1)
Catastrophe losses are presented net of reinsurance and reinstatement premiums. Effective April 1, 2010, a catastrophe is defined, for purposes of the consolidated Selected Financial Data, as an event that caused a loss on property exposures before reinsurance of at least $10.0 million before corporate level reinsurance and taxes. All prior periods reflect a catastrophe as a property event with expected reported losses of at least $5.0 million before corporate level reinsurance and taxes. Catastrophe insurance provides coverage for one event. When limits are exhausted, some contractual arrangements provide for the availability of additional coverage upon the payment of additional premium. This additional premium is referred to as reinstatement premium.
(2)
Some amounts may not reconcile due to rounding.
(3)
Based on weighted average basic common shares outstanding of 53.8 million, 56.6 million, 60.7 million, 61.7 million, and 63.1 million for 2011, 2010, 2009, 2008 and 2007, respectively.
(4)
Based on weighted average diluted common shares outstanding of 56.8 million, 60.8 million and 63.6 million for 2010, 2009 and 2007, respectively. Diluted calculation was not applicable for 2011 and 2008.
(5)
Loss ratio is the GAAP losses and LAE incurred as a percentage of GAAP net premiums earned. Underwriting expense ratio is the GAAP commissions, brokerage, taxes, fees and other underwriting expenses as a percentage of GAAP net premiums earned. Combined ratio is the sum of the loss ratio and underwriting expense ratio.
(6)
Based on $53.7 million, $54.4 million, 59.3 million, 61.4 million and 62.9 million common shares outstanding for December 31, 2011, 2010, 2009, 2008 and 2007, respectively.
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