Consolidated Satements of Income & Comprehensive Income (loss) For the Years Ended December 31, 2008, 2007 and 2006 
| In thousands of U.S.$ (except share and per share amounts) |
2008 | 2007 | 2006 | |||
Revenues |
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| Gross premiums written | 2,246,420 | 1,781,115 | 1,789,642 | |||
| Ceded premiums written | (462,130 | ) | (206,140 | ) | (204,078 | ) |
| Net premiums written | 1,784,290 | 1,574,975 | 1,585,564 | |||
| Change in unearned premiums | (17,805 | ) | 19,825 | 53,010 | ||
| Net premiums earned (includes Nil, Nil, and $34,927 from related parties | ||||||
| in 2008, 2007 and 2006, respectively) | 1,766,485 | 1,594,800 | 1,638,574 | |||
| Net investment income | 130,176 | 281,276 | 257,449 | |||
| Net realized investment losses | (57,366 | ) | (18,302 | ) | (20,342 | ) |
| Other underwriting (loss) income | (3,973 | ) | 1,602 | 1,390 | ||
| Total revenues | 1,835,322 | 1,859,376 | 1,877,071 | |||
Expenses |
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| Net losses and loss expenses (includes Nil, Nil, $20,145, from related | ||||||
| parties in 2008, 2007 and 2006, respectively) | 1,135,431 | 749,081 | 827,630 | |||
| Acquisition expenses (includes Nil, Nil, and $11,238, from related parties | ||||||
| in 2008, 2007 and 2006, respectively) | 299,913 | 307,576 | 317,489 | |||
| General and administrative expenses | 216,365 | 217,269 | 190,373 | |||
| Amortization of intangibles | 10,675 | 5,286 | 4,600 | |||
| Net foreign exchange losses (gains) | 53,704 | 7,970 | (21,021 | ) | ||
| Interest expense | 30,171 | 30,125 | 30,041 | |||
| Total expenses | 1,746,259 | 1,137,307 | 1,349,112 | |||
| Income before income taxes | 89,063 | 542,069 | 527,959 | |||
| Income tax benefit (expense) | 9,561 | (20,962 | ) | (29,833 | ) | |
| Net income (loss) | 98,624 | 521,107 | 498,126 | |||
| Preferred dividends | (15,500 | ) | (15,500 | ) | (15,500 | ) |
| Net income available to common shareholders | 83,124 | 505,607 | 482,626 | |||
| Other comprehensive (loss) income | ||||||
| Net income | 98,624 | 521,107 | 498,126 | |||
| Net unrealized holding (losses) gains on investments | ||||||
| arising during the period (net of applicable deferred income taxes | ||||||
| in 2008 — ($12,252); 2007 — ($10,014); and 2006 — $3,620) | (218,816 | ) | 49,257 | (20,235 | ) | |
| Reclassification adjustment for net realized losses | ||||||
| included in net income | 57,366 | 18,302 | 20,342 | |||
| Foreign currency translation adjustments | (29,030 | ) | 4,541 | 5,010 | ||
| Reclassification adjustment for net loss on derivatives designated | ||||||
| as cash flow hedge included in net income | 90 | 90 | 90 | |||
| Other comprehensive (loss) income | (190,390 | ) | 72,190 | 5,207 | ||
| Comprehensive (loss) income | (91,766 | ) | 593,297 | 503,333 | ||
Per share data |
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| Weighted average number of common and | ||||||
| common equivalent shares outstanding: | ||||||
| Basic | 57,755,959 | 64,696,669 | 66,435,712 | |||
| Diluted | 62,795,085 | 70,539,647 | 71,755,303 | |||
| Basic earnings per common share | 1.44 | 7.82 | 7.26 | |||
| Diluted earnings per common share | 1.32 | 7.17 | 6.73 | |||
The financial information presented in this report should be reviewed in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 31, 2008 filed with the Securities and Exchange Commission.
