corporate income taxes other than withholding taxes on certain investment income and premium excise taxes.
If Group or its Bermuda subsidiaries were to become subject to U. S.  income tax, there could be a material adverse effect on the Company’s financial condition, results of operations and cash flows.
United Kingdom.
Bermuda Re’s UK branch conducts business in the UK and is subject to taxation in the UK.
Bermuda Re believes that it has operated and will continue to operate its Bermuda operation in a manner which will not cause them to be subject to UK taxation.
If Bermuda Re’s Bermuda operations were to become subject to UK income tax, there could be a material adverse impact on the Company’s financial condition, results of operations and cash flow.
Ireland.
Holdings Ireland and Ireland Re conduct business in Ireland and are subject to taxation in Ireland.
Available Information.
The Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8- K, proxy statements and amendments to those reports are available free of charge through the Company’s internet website at http://www.
everestregroup.
com as soon as reasonably practicable after such reports are electronically filed with the Securities and Exchange Commission (the “SEC”).
ITEM 1A.
RISK FACTORS In addition to the other information provided in this report, the following risk factors should be considered when evaluating an investment in our securities.
If the circumstances contemplated by the individual risk factors materialize, our business, financial condition and results of operations could be materially and adversely affected and the trading price of our common shares could decline significantly.
RISKS RELATING TO OUR BUSINESS Fluctuations in the financial markets could result in investment losses.
Prolonged and severe disruptions in the public debt and equity markets, such as occurred during 2008, could result in significant realized and unrealized losses in our investment portfolio.
Although financial markets have significantly improved since 2008, they could deteriorate in the future.
Such declines in the financial markets could result in significant realized and unrealized losses on investments and could have a material adverse impact on our results of operations, equity, business and insurer financial strength and debt ratings.
Our results could be adversely affected by catastrophic events.
We are exposed to unpredictable catastrophic events, including weather-related and other natural catastrophes, as well as acts of terrorism.
Any material reduction in our operating results caused by the occurrence of one or more catastrophes could inhibit our ability to pay dividends or to meet our interest and principal payment obligations.
Subsequent to April 1, 2010, we define a catastrophe as an event that causes a loss on property exposures before reinsurance of at least $10.0 million, before corporate level reinsurance and taxes.
Prior to April 1, 2010, we used a threshold of $5.0 million.
By way of illustration, during the past five calendar years, pre-tax catastrophe losses, net of contract specific reinsurance but before cessions under corporate reinsurance programs, were as follows:
## Table 0 ##
Incurred Losses and LAE.
The following table presents the incurred losses and LAE for the U. S.  Reinsurance segment for the periods indicated.
## Table 1 ##
Incurred losses decreased by 22.4% to $814.7 million in 2013 compared to $1,050.4 million in 2012, primarily due to the decrease in current year catastrophe losses, partially offset by an increase of $75.0 million in current year attritional losses due to the impact of the increase in premiums earned.
Current year catastrophe losses for 2013, were $51.8 million, mainly due to U. S.  Storms ($44.8 million) , the European floods ($5.0 million) and the Canadian Floods ($2.0 million), compared to $372.6 million of current year catastrophe losses for 2012, which related to Superstorm Sandy ($289.0 million), U. S.  storms ($59.8 million) and Hurricane Isaac ($23.8 million).
Despite the increase in current year attritional losses, the current year attritional loss ratio decreased 3.2 points due to the continued shift in business to excess of loss contracts which generally have lower attritional losses than pro rata contracts.
Incurred losses increased by 1.6% to $1,050.4 million in 2012 compared to $1,034.1 in 2011, primarily as a result of the $98.0 million (5.4 points) increase in catastrophe losses for 2012 (outlined above) compared to 2011.
The $262.0 million of current year catastrophe losses for 2011 related primarily to the Japanese earthquake and tsunami ($71.5 million), the 2011 New Zealand earthquake ($63.0 million), U. S.  tornadoes ($58.2 million), Hurricane Irene ($27.5 million) and the Thailand floods ($17.0 million).
The current year attritional losses decreased $13.5 million due primarily to a shift in business to excess of loss contracts which generally have lower attritional losses than pro rata contracts.
Segment Expenses.
Commission and brokerage expenses increased by 4.6% to $366.9 million in 2013 compared to $350.6 million in 2012.
The year over year change was primarily due to the impact of the increase in premiums earned, partially offset by the impact of the termination of the large Florida quota share reinsurance contract in second quarter 2012 as well as the adoption of new accounting standards concerning the accounting for acquisition costs, which increased expenses in 2012.
Segment other underwriting expenses increased to $47.2 million in 2013 from $44.8 million in 2012, primarily due to increased compensation expenses and higher premiums earned.
The following table displays the estimated components of earned but not reported premiums by segment for the periods indicated.
## Table 2 ##
Investment Valuation.
Our fixed income investments are classified for accounting purposes as available for sale and are carried at market value or fair value in our consolidated balance sheets.
Our equity securities are also held as available for sale and are carried at market or fair value.
Most securities we own are traded on national exchanges where market values are readily available.
Some of our commercial mortgage-backed securities (“CMBS”) are valued using cash flow models and risk-adjusted discount rates.
We hold some privately placed securities, less than 0.04% of the portfolio, that are either valued by brokers or an investment advisor.
At December 31, 2013 and 2012, our investment portfolio included $469.1 million and $548.9 million, respectively, of limited partnership investments whose values are reported pursuant to the equity method of accounting.
We carry these investments at values provided by the managements of the limited partnerships and due to inherent reporting lags, the carrying values are based on values with “as of” dates from one month to one quarter prior to our financial statement date.
At December 31, 2013, we had net unrealized gains, net of tax, of $201.2 million compared to $603.9 million at December 31, 2012.
Gains and losses from market fluctuations for investments held at market value are reflected as comprehensive income (loss) in the consolidated balance sheets.
Gains and losses from market fluctuations for investments held at fair value are reflected as net realized capital gains and losses in the consolidated statements of operations and comprehensive income (loss).
Market value declines for the fixed income portfolio, which are considered credit other-than-temporary impairments, are reflected in our consolidated statements of operations and comprehensive income (loss), as realized capital losses.
We consider many factors when determining whether a market value decline is other-thantemporary, including: (1) we have no intent to sell and, more likely than not, will not be required to sell prior to recovery, (2) the length of time the market value has been below book value, (3) the credit strength of the issuer, (4) the issuer’s market sector, (5) the length of time to maturity and (6) for asset-backed securities, changes in prepayments, credit enhancements and underlying default rates.
If management’s assessments change in the future, we may ultimately record a realized loss after management originally concluded that the decline in value was temporary.
See also ITEM 8, “Financial Statements and Supplementary Data” - Note 1 of Notes to the Consolidated Financial Statements.
FINANCIAL CONDITION Cash and Invested Assets.
Aggregate invested assets, including cash and short-term investments, were $16,596.5 million at December 31, 2013, an increase of $20.3 million compared to $16,576.2 million at December 31, 2012.
This increase was primarily the result of $1,098.3 million of cash flows from operations, $258.9 million in fair value re-measurements, $143.0 million of subscription advances for third party investment into Mt.
Logan Re, $87.5 million from external third party capital investment into Mt.
Logan Re, $51.5 million from common share issuance under share based compensation plans, net of expense incurred, and $45.9 million in equity adjustments of our limited partnership investments, partially offset by $621.9 million paid for share repurchases, $467.2 million of pre-tax unrealized depreciation, $329.9 million paid to redeem junior subordinated debt securities, $106.7 million paid out in dividends to shareholders, $66.5 million of amortization bond premium, $54.2 million due to fluctuations in foreign currencies and $2.8 million of unsettled securities.
Changes in pension and other post-employment benefits, and associated expenses, may occur in the future due to changes in these assumptions.
The impact that a 0.25% decrease in the discount rate or a 1% change in the medical cost trend rate would have on our pension and other post-employment benefit expense, as applicable, is as follows:
## Table 3 ##
The effect of a 1% increase in the medical cost trend rate would increase the accumulated postretirement benefit obligation and the annual postretirement expense by approximately $0.6 million and $0.1 million, respectively; a 1% decrease in the rate would decrease the obligation and expense by approximately $0.6 million and $0.1 million, respectively.
The ongoing assessment of the valuation of inventory, given the large number of natural ingredients employed, the quality of which may be diminished over time.
We hold a majority of our inventory as raw materials, providing the greatest degree of flexibility in manufacture and use.
As of December 31, 2015, we maintained 48% of our inventory as raw materials.
Materials are evaluated based on shelf life, known uses and anticipated demand based on forecasted customer order activity and changes in product/sales mix.
Management policy provides for an ongoing assessment of inventory with adjustments recorded when an item is deemed to be slow moving or obsolete.
We believe that we have considered relevant circumstances that we may be currently subject to, and the financial statements accurately reflect our best estimate of the impact of these items in our results of operations, financial condition and cash flows for the years presented.
We have discussed the decision process and selection of these critical accounting policies with the Audit Committee of the Board of Directors.
New Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which requires changes to the accounting for leases.
The new guidance establishes a new lease accounting model, that, for many companies, eliminates the concept of operating leases and requires entities to record assets and liabilities related to leases on the balance sheet for certain types of leases.
The guidance will be effective for annual and interim periods beginning after December 31, 2018.
Early adoption will be permitted for all entities.
The Company is currently evaluating the impact that this new standard will have on its consolidated financial statements.
In November 2015, the FASB issued authoritative guidance which requires entities to present all deferred tax assets and deferred tax liabilities as noncurrent in a classified balance sheet.
This guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years.
Early adoption of this guidance is permitted.
The Company elected to adopt this guidance as of December 31, 2015 and accordingly has classified all deferred tax assets and liabilities as noncurrent in the consolidated balance sheet as of December 31, 2015.
This guidance has been applied prospectively and prior amounts have not been adjusted retrospectively
2003.
This increase was primarily due to a net income tax benefit of $40.3 million that was recorded for the year ended December 31, 2004 primarily due to the reduction of the valuation allowance against our deferred tax asset, as is more fully described below.
Without giving effect to the reduction of the valuation allowance, our Net income for the year ended December 31, 2004 would have been $7.9 million.
Total revenues increased by $17.3 million or 30.0% to $75.8 million for the year ended December 31, 2004 from $58.5 million for the year ended December 31, 2003.
This increase in total revenues was primarily due to the growth in the total volume of bonds traded on our platform, which grew 55.0% to $298.1 billion for the year ended December 31, 2004 from $192.3 billion for the comparable period in 2003, offset in part by an increasing portion of our total trading volume generated from European highgrade corporate bonds that carry a lower fee per million, as well as by the introduction of the new U. S.  high-grade fee plans in the third quarter of 2003.
Total expenses increased by $4.4 million or 8.2% to $58.5 million for the year ended December 31, 2004 from $54.1 million for the comparable period in 2003.
For the year ended December 31, 2004, our total expenses increased primarily due to increases in employee compensation and benefits, technology and communications, professional and consulting fees, marketing and advertising and general and administrative expense, offset by decreases in depreciation, amortization, warrant-related expense and Moneyline revenue share, in each case compared to the comparable period in 2003.
During the year ended December 31, 2004, we reduced the valuation allowance relating to our deferred tax assets by $46.1 million, from $64.3 million to $18.1 million.
Due to the fact that we had achieved multiple quarters of profitability, it became more likely than not that we would be able to utilize our net operating loss carryforwards.
We also determined that it was more likely than not that all of the temporary differences relating to the deductibility of certain expenses for book and tax purposes, including the warrantrelated expense, would be utilized prior to expiration.
We also recognized $2.1 million in tax credits and an additional tax benefit for operating losses of $1.5 million.
Without giving effect to the reduction of the valuation allowance, tax credits and reversal, our net income for the year ended December 31, 2004 would have been $7.9 million.
Our revenues and percentage of revenues for the years ended December 31, 2004 and 2003, and the resulting dollar and percentage change, are as follows:
## Table 4 ##
Commissions.
Total commissions increased by $15.4 million or 29.1% to $68.2 million for the year ended December 31, 2004 from $52.8 million for the comparable period in 2003.
This increase was primarily due to increases in the amount of U. S.  high-grade commissions and substantial increases in European high-
At Lloyd’s, International competes with other syndicates operating in the Lloyd’s market as well as international and domestic insurers in the various markets where the Lloyd’s operation writes business worldwide.
Lloyd’s syndicates are increasingly capitalized by corporate capital, much of which is provided by large international insurance enterprises.
Competition is again based on price, product and service offerings.
The Company focuses on lines it believes it can underwrite effectively and profitably with an emphasis on short-tail insurance lines.
The Company underwrites through five principal business units at Lloyd’s: aviation, marine, global property, accident & special risks, and power & utilities.
PERSONAL INSURANCE Personal Insurance writes a broad range of property and casualty insurance covering personal risks.
The primary coverages in Personal Insurance are automobile and homeowners insurance sold to individuals.
These products are distributed through independent agents, sponsoring organizations such as employee and affinity groups, joint marketing arrangements with other insurers, and direct marketing.
Selected Product and Distribution Channel Information The following table sets forth net written premiums for Personal Insurance by product line for the periods indicated.
For a description of the product lines referred to in the following table, see ‘‘—Product Lines.

<table><tr><td>Calendar year:</td><td>Pre-tax catastrophe losses</td></tr><tr><td>(Dollars in millions)</td><td></td></tr><tr><td>2013</td><td>$195.0</td></tr><tr><td>2012</td><td>410.0</td></tr><tr><td>2011</td><td>1,300.4</td></tr><tr><td>2010</td><td>571.1</td></tr><tr><td>2009</td><td>67.4</td></tr></table>
<table><tr><td></td><td colspan="8">Years Ended December 31,</td><td></td></tr><tr><td>(Dollars in millions)</td><td>Current Year</td><td colspan="2">Ratio %/ Pt Change</td><td>Prior Years</td><td colspan="2">Ratio %/ Pt Change</td><td>Total Incurred</td><td colspan="2">Ratio %/ Pt Change</td></tr><tr><td>2013</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Attritional</td><td>$781.8</td><td>46.7%</td><td></td><td>$-36.7</td><td>-2.2%</td><td></td><td>$745.2</td><td>44.5%</td><td></td></tr><tr><td>Catastrophes</td><td>51.8</td><td>3.1%</td><td></td><td>17.7</td><td>1.1%</td><td></td><td>69.5</td><td>4.2%</td><td></td></tr><tr><td>Total segment</td><td>$833.6</td><td>49.8%</td><td></td><td>$-18.9</td><td>-1.1%</td><td></td><td>$814.7</td><td>48.7%</td><td></td></tr><tr><td>2012</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Attritional</td><td>$706.8</td><td>49.9%</td><td></td><td>$-27.2</td><td>-1.9%</td><td></td><td>$679.6</td><td>48.0%</td><td></td></tr><tr><td>Catastrophes</td><td>372.6</td><td>26.3%</td><td></td><td>-1.8</td><td>-0.1%</td><td></td><td>370.8</td><td>26.2%</td><td></td></tr><tr><td>Total segment</td><td>$1,079.4</td><td>76.2%</td><td></td><td>$-29.0</td><td>-2.0%</td><td></td><td>$1,050.4</td><td>74.2%</td><td></td></tr><tr><td>2011</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Attritional</td><td>$720.3</td><td>54.9%</td><td></td><td>$41.0</td><td>3.1%</td><td></td><td>$761.3</td><td>58.0%</td><td></td></tr><tr><td>Catastrophes</td><td>262.0</td><td>20.0%</td><td></td><td>10.8</td><td>0.8%</td><td></td><td>272.8</td><td>20.8%</td><td></td></tr><tr><td>Total segment</td><td>$982.3</td><td>74.9%</td><td></td><td>$51.8</td><td>3.9%</td><td></td><td>$1,034.1</td><td>78.8%</td><td></td></tr><tr><td>Variance 2013/2012</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Attritional</td><td>$75.0</td><td>-3.2</td><td>pts</td><td>$-9.5</td><td>-0.3</td><td>pts</td><td>$65.6</td><td>-3.5</td><td>pts</td></tr><tr><td>Catastrophes</td><td>-320.8</td><td>-23.2</td><td>pts</td><td>19.5</td><td>1.2</td><td>pts</td><td>-301.3</td><td>-22.0</td><td>pts</td></tr><tr><td>Total segment</td><td>$-245.8</td><td>-26.4</td><td>pts</td><td>$10.1</td><td>0.9</td><td>pts</td><td>$-235.7</td><td>-25.5</td><td>pts</td></tr><tr><td>Variance 2012/2011</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Attritional</td><td>$-13.5</td><td>-5.0</td><td>pts</td><td>$-68.2</td><td>-5.0</td><td>pts</td><td>$-81.7</td><td>-10.0</td><td>pts</td></tr><tr><td>Catastrophes</td><td>110.6</td><td>6.3</td><td>pts</td><td>-12.6</td><td>-0.9</td><td>pts</td><td>98.0</td><td>5.4</td><td>pts</td></tr><tr><td>Total segment</td><td>$97.1</td><td>1.3</td><td>pts</td><td>$-80.8</td><td>-5.9</td><td>pts</td><td>$16.3</td><td>-4.6</td><td>pts</td></tr><tr><td colspan="2">(Some amounts may not reconcile due to rounding.)</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr></table>
<table><tr><td></td><td colspan="3">At December 31,</td></tr><tr><td>(Dollars in millions)</td><td>2013</td><td>2012</td><td>2011</td></tr><tr><td>U.S. Reinsurance</td><td>$336.0</td><td>$246.6</td><td>$308.2</td></tr><tr><td>International</td><td>231.5</td><td>211.0</td><td>216.8</td></tr><tr><td>Bermuda</td><td>207.8</td><td>194.0</td><td>196.9</td></tr><tr><td>Insurance</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Mt. Logan</td><td>0.3</td><td>-</td><td>-</td></tr><tr><td>Total</td><td>$775.6</td><td>$651.6</td><td>$722.0</td></tr><tr><td>(Some amounts may not reconcile due to rounding.)</td><td></td><td></td><td></td></tr></table>
<table><tr><td></td><td colspan="4">Sensitivity of Disclosures to Changes in Selected Assumptions</td></tr><tr><td></td><td colspan="2">25 BP Decrease inDiscount Rate</td><td>25 BP Decrease inDiscount Rate</td><td>25 BP Decrease inLong-Term Rateof Return</td></tr><tr><td>(DOLLARS IN THOUSANDS)</td><td>Change inPBO</td><td>Change inABO</td><td>Change inpension expense</td><td>Change inpension expense</td></tr><tr><td>U.S. Pension Plans</td><td>$17,519</td><td>$17,359</td><td>$-5</td><td>$1,186</td></tr><tr><td>Non-U.S. Pension Plans</td><td>39,727</td><td>37,661</td><td>2,478</td><td>1,963</td></tr><tr><td>Postretirement Benefit Plan</td><td>N/A</td><td>2,376</td><td>85</td><td>N/A</td></tr></table>
<table><tr><td></td><td colspan="6">Year Ended December 31,</td></tr><tr><td></td><td colspan="2">2004</td><td colspan="2">2003</td><td colspan="2"></td></tr><tr><td></td><td> $</td><td>% of Revenues</td><td> $</td><td>% of Revenues</td><td>$ Change</td><td>% Change</td></tr><tr><td></td><td colspan="6">($ in thousands)</td></tr><tr><td> Revenues</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Commissions</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. high-grade</td><td>$45,465</td><td>60.0%</td><td>$40,310</td><td>69.0%</td><td>$5,155</td><td>12.8%</td></tr><tr><td>European high-grade</td><td>15,142</td><td>20.0</td><td>7,126</td><td>12.2</td><td>8,016</td><td>112.5</td></tr><tr><td>Other</td><td>7,565</td><td>10.0</td><td>5,364</td><td>9.1</td><td>2,201</td><td>41.0</td></tr><tr><td>Total commissions</td><td>68,172</td><td>90.0</td><td>52,800</td><td>90.3</td><td>15,372</td><td>29.1</td></tr><tr><td>Information and user access fees</td><td>2,713</td><td>3.6</td><td>1,144</td><td>2.0</td><td>1,569</td><td>137.2</td></tr><tr><td>License fees</td><td>3,143</td><td>4.1</td><td>4,145</td><td>7.1</td><td>-1,002</td><td>-24.2</td></tr><tr><td>Interest income</td><td>882</td><td>1.2</td><td>371</td><td>0.6</td><td>511</td><td>137.7</td></tr><tr><td>Other</td><td>887</td><td>1.1</td><td>—</td><td>0.0</td><td>887</td><td>—</td></tr><tr><td> Total revenues</td><td>$75,797</td><td>100.0%</td><td>$58,460</td><td>100%</td><td>$17,337</td><td>29.7%</td></tr></table>

Question: What is the ratio of Catastrophes of Current Year in Table 1 to the U.S. Reinsurance in Table 2 in 2012?
Answer: 1.51095