Profit and Loss Account
Consolidated Statements of Operations as at 31 December 2009 and 2008(US dollars in million, except share amounts)
| 2009 | 2008 | |
|---|---|---|
| Revenues | ||
| Gross premiums written | $3,715 | $3,437 |
| Reinsurance premiums ceded | (547) | (826) |
| Net premiums written | 3,168 | 2,611 |
| Change in net unearned premiums | (250) | (15) |
| Net premiums earned | 2,918 | 2,596 |
| Net investment return | 414 | (91) |
| Change in fair value of catastrophe swaps | (31) | (13) |
| Net realised gains/(losses) on foreign currency exchange | 30 | (21) |
| Other income | 4 | 15 |
| Total revenues | 3,355 | 2,486 |
| Expenses | ||
| Losses and loss expenses | 1,681 | 1,632 |
| Policy acquisition costs | 586 | 510 |
| Administrative and other expenses | 449 | 339 |
| Financing costs | 16 | 18 |
| Total expenses | 2,732 | 2,499 |
| Net income/(loss) before income tax | 603 | (13) |
| Income tax (expense)/benefit | (50) | 10 |
| Net income | 553 | (3) |
| Preferred share dividend | (44) | (44) |
| Net income available to common stockholders | $509 | $(47) |
| Earnings per common share | ||
| Basic | $1.52 | $(0.16) |
| Diluted | $1.47 | $(0.16) |