Incurred Losses and LAE.
The following table presents the incurred losses and LAE for the Insurance segment for the periods indicated.
## Table 0 ##
Incurred losses and LAE decreased by 0.8% to $700.3 million in 2012 compared to $705.9 million in 2011.
This was primarily due to a decrease of $9.5 million (4.3 points) in attritional losses resulting primarily from lower prior years’ losses in 2012 resulting from development on excess casualty and California workers’ compensation reserves, as well as a shift in the mix of business towards shorter-tail lines of business.
This decrease was partially offset by a $4.2 million increase in current year catastrophe losses due primarily to Superstorm Sandy ($5.5 million).
Incurred losses and LAE increased by $169.2 million, or 31.5%, to $705.9 million in 2011 compared to $536.8 million in 2010.
This was primarily due to an increase of $141.4 million in current year attritional losses driven by an increase in premiums earned and an increase in prior years’ losses of $25.2 million (1.8 points) attributable to development on excess casualty and California workers compensation reserves.
Segment Expenses Commission and brokerage decreased by 14.6% to $117.6 million in 2012 compared to $137.7 million in 2011, driven by growth in direct distribution business, which has lower acquisition costs.
Segment other underwriting expenses increased to $103.0 million in 2012 compared to $89.5 million for the same period in 2011.
These increases are primarily the result of increased personnel benefit costs.
Commission and brokerage increased by 14.0% to $137.7 million in 2011 compared to $120.8 million in 2010.
This increase was primarily the result of an increase in net premiums earned; however, due to changes in distribution and the mix of business, the commission ratio declined 2.0 points, year over year.
Segment other underwriting expenses increased to $89.5 million in 2011 compared to $69.7 million for the same period in 2010.
This increase was primarily due to the expenses of the newly acquired Heartland.
Reinsurance Receivables.
We have purchased reinsurance to reduce our exposure to adverse claim experience, large claims and catastrophic loss occurrences.
Our ceded reinsurance provides for recovery from reinsurers of a portion of losses and loss expenses under certain circumstances.
Such reinsurance does not relieve us of our obligation to our policyholders.
In the event our reinsurers are unable to meet their obligations under these agreements or are able to successfully challenge losses ceded by us under the contracts, we will not be able to realize the full value of the reinsurance receivable balance.
To minimize exposure from uncollectible reinsurance receivables, we have a reinsurance security committee that evaluates the financial strength of each reinsurer prior to our entering into a reinsurance arrangement.
In some cases, we may hold full or partial collateral for the receivable, including letters of credit, trust assets and cash.
Additionally, creditworthy foreign reinsurers of business written in the U. S.  are generally required to secure their obligations.
We have established reserves for uncollectible balances based on our assessment of the collectability of the outstanding balances.
As of December 31, 2012 and 2011, the reserve for uncollectible balances was $21.6 million.
Actual uncollectible amounts may vary, perhaps substantially, from such reserves, impacting income (loss) in the period in which the change in reserves is made.
See also ITEM 8, “Financial Statements and Supplementary Data” - Note 12 of Notes to the Consolidated Financial Statements and “Financial Condition – Reinsurance Receivables” below.
Premiums Written and Earned.
Premiums written by us are earned ratably over the coverage periods of the related insurance and reinsurance contracts.
We establish unearned premium reserves to cover the unexpired portion of each contract.
Such reserves, for assumed reinsurance, are computed using pro rata methods based on statistical data received from ceding companies.
Premiums earned, and the related costs, which have not yet been reported to us, are estimated and accrued.
Because of the inherent lag in the reporting of written and earned premiums by our ceding companies, we use standard accepted actuarial methodologies to estimate earned but not reported premium at each financial reporting date.
These earned but not reported premiums are combined with reported earned premiums to comprise our total premiums earned for determination of our incurred losses and loss and LAE reserves.
Commission expense and incurred losses related to the change in earned but not reported premium are included in current period company and segment financial results.
See also ITEM 8, “Financial Statements and Supplementary Data” - Note 1 of Notes to the Consolidated Financial Statements.
The following table displays the estimated components of earned but not reported premiums by segment for the periods indicated.
## Table 1 ##
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 0.33% of the portfolio, that are either valued by brokers or an investment advisor.
At December 31, 2012 and 2011, our investment portfolio included $548.9 million and $515.5 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.
9.
JUNIOR SUBORDINATED DEBT SECURITIES PAYABLE In accordance with the provisions of the junior subordinated debt securities which were issued on March 29, 2004, Holdings elected to redeem the $329,897 thousand of 6.2% junior subordinated debt securities outstanding on May 24, 2013.
As a result of the early redemption, the Company incurred pre-tax expense of $7,282 thousand related to the immediate amortization of the remaining capitalized issuance costs on the trust preferred securities.
Interest expense incurred in connection with these junior subordinated debt securities is as follows for the periods indicated:
## Table 2 ##
Holdings considered the mechanisms and obligations relating to the trust preferred securities, taken together, constituted a full and unconditional guarantee by Holdings of Capital Trust II’s payment obligations with respect to their trust preferred securities.10.
REINSURANCE AND TRUST AGREEMENTS Certain subsidiaries of Group have established trust agreements, which effectively use the Company’s investments as collateral, as security for assumed losses payable to certain non-affiliated ceding companies.
At December 31, 2015, the total amount on deposit in trust accounts was $454,384 thousand.
On April 24, 2014, the Company entered into two collateralized reinsurance agreements with Kilimanjaro Re Limited (“Kilimanjaro”), a Bermuda based special purpose reinsurer, to provide the Company with catastrophe reinsurance coverage.
These agreements are multi-year reinsurance contracts which cover specified named storm and earthquake events.
The first agreement provides up to $250,000 thousand of reinsurance coverage from named storms in specified states of the Southeastern United States.
The second agreement provides up to $200,000 thousand of reinsurance coverage from named storms in specified states of the Southeast, Mid-Atlantic and Northeast regions of the United States and Puerto Rico as well as reinsurance coverage from earthquakes in specified states of the Southeast, Mid-Atlantic, Northeast and West regions of the United States, Puerto Rico and British Columbia.
On November 18, 2014, the Company entered into a collateralized reinsurance agreement with Kilimanjaro Re to provide the Company with catastrophe reinsurance coverage.
This agreement is a multi-year reinsurance contract which covers specified earthquake events.
The agreement provides up to $500,000 thousand of reinsurance coverage from earthquakes in the United States, Puerto Rico and Canada.
On December 1, 2015 the Company entered into two collateralized reinsurance agreements with Kilimanjaro Re to provide the Company with catastrophe reinsurance coverage.
These agreements are multi-year reinsurance contracts which cover named storm and earthquake events.
The first agreement provides up to $300,000 thousand of reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada.
The second agreement provides up to $325,000 thousand of reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada.
Kilimanjaro has financed the various property catastrophe reinsurance coverage by issuing catastrophe bonds to unrelated, external investors.
On April 24, 2014, Kilimanjaro issued $450,000 thousand of notes (“Series 2014-1 Notes”).
On November 18, 2014, Kilimanjaro issued $500,000 thousand of notes (“Series 2014-2 Notes”).
On December 1, 2015, Kilimanjaro issued $625,000 thousand of notes (“Series 2015-1 Notes).
The proceeds from the issuance of the Series 2014-1 Notes, the Series 2014-2 Notes and the Series 2015-1 Notes are held in reinsurance trust throughout the duration of the applicable reinsurance agreements and invested solely in US government money market funds with a rating of at least “AAAm” by Standard & Poor’s.

<table><tr><td></td><td colspan="9">Years Ended December 31,</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>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>$640.1</td><td>75.1%</td><td></td><td>$53.5</td><td>6.3%</td><td></td><td>$693.6</td><td>81.4%</td><td></td></tr><tr><td>Catastrophes</td><td>6.7</td><td>0.8%</td><td></td><td>-</td><td>0.0%</td><td></td><td>6.7</td><td>0.8%</td><td></td></tr><tr><td>Total segment</td><td>$646.8</td><td>75.9%</td><td></td><td>$53.5</td><td>6.3%</td><td></td><td>$700.3</td><td>82.2%</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>$641.4</td><td>78.2%</td><td></td><td>$61.7</td><td>7.5%</td><td></td><td>$703.1</td><td>85.7%</td><td></td></tr><tr><td>Catastrophes</td><td>2.5</td><td>0.3%</td><td></td><td>0.3</td><td>0.0%</td><td></td><td>2.8</td><td>0.3%</td><td></td></tr><tr><td>Total segment</td><td>$643.9</td><td>78.5%</td><td></td><td>$62.0</td><td>7.5%</td><td></td><td>$705.9</td><td>86.0%</td><td></td></tr><tr><td>2010</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>$500.0</td><td>78.0%</td><td></td><td>$36.8</td><td>5.7%</td><td></td><td>$536.8</td><td>83.7%</td><td></td></tr><tr><td>Catastrophes</td><td>-</td><td>0.0%</td><td></td><td>-</td><td>0.0%</td><td></td><td>-</td><td>0.0%</td><td></td></tr><tr><td>Total segment</td><td>$500.0</td><td>78.0%</td><td></td><td>$36.8</td><td>5.7%</td><td></td><td>$536.8</td><td>83.7%</td><td></td></tr><tr><td>Variance 2012/2011</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Attritional</td><td>$-1.3</td><td>-3.1</td><td>pts</td><td>$-8.2</td><td>-1.2</td><td>pts</td><td>$-9.5</td><td>-4.3</td><td>pts</td></tr><tr><td>Catastrophes</td><td>4.2</td><td>0.5</td><td>pts</td><td>-0.3</td><td>-</td><td>pts</td><td>3.9</td><td>0.5</td><td>pts</td></tr><tr><td>Total segment</td><td>$2.9</td><td>-2.6</td><td>pts</td><td>$-8.5</td><td>-1.2</td><td>pts</td><td>$-5.6</td><td>-3.8</td><td>pts</td></tr><tr><td>Variance 2011/2010</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>$141.4</td><td>0.2</td><td>pts</td><td>$24.9</td><td>1.8</td><td>pts</td><td>$166.3</td><td>2.0</td><td>pts</td></tr><tr><td>Catastrophes</td><td>2.5</td><td>0.3</td><td>pts</td><td>0.3</td><td>-</td><td>pts</td><td>2.8</td><td>0.3</td><td>pts</td></tr><tr><td>Total segment</td><td>$143.9</td><td>0.5</td><td>pts</td><td>$25.2</td><td>1.8</td><td>pts</td><td>$169.2</td><td>2.3</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>2012</td><td>2011</td><td>2010</td></tr><tr><td>U.S. Reinsurance</td><td>$246.6</td><td>$308.2</td><td>$340.4</td></tr><tr><td>International</td><td>211.0</td><td>216.8</td><td>195.2</td></tr><tr><td>Bermuda</td><td>194.0</td><td>196.9</td><td>204.7</td></tr><tr><td>Insurance</td><td>-</td><td>-</td><td>2.2</td></tr><tr><td>Total</td><td>$651.6</td><td>$722.0</td><td>$742.5</td></tr><tr><td>(Some amounts may not reconcile due to rounding.)</td><td></td><td></td><td></td></tr></table>
<table><tr><td></td><td>Years Ended December 31,</td></tr><tr><td>(Dollars in thousands)</td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td>Interest expense incurred</td><td>$-</td><td>$-</td><td>$8,181</td></tr></table>

Question: what was the percent of the pre-tax expense incurred as part of the early redemption to the redemption amount
Answer: 0.02207