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 overall 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.
There could also be disruption in individual market sectors, such as occurred in the energy sector in recent years.
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.
By way of illustration, during the past five calendar years, pre-tax catastrophe losses, net of reinsurance, were as follows:
## Table 0 ##
Our losses from future catastrophic events could exceed our projections.
We use projections of possible losses from future catastrophic events of varying types and magnitudes as a strategic underwriting tool.
We use these loss projections to estimate our potential catastrophe losses in certain geographic areas and decide on the placement of retrocessional coverage or other actions to limit the extent of potential losses in a given geographic area.
These loss projections are approximations, reliant on a mix of quantitative and qualitative processes, and actual losses may exceed the projections by a material amount, resulting in a material adverse effect on our financial condition and results of operations.
Gross written premiums decreased by 7.8% to $1,230.7 million in 2016 compared to $1,334.2 million in 2015, primarily due to declines in Latin American, Middle East and Asian business and the negative impact of $40.7 million from the movement of foreign exchange rates.
Net written premiums decreased by 10.4% to $1,082.7 million in 2016 compared to $1,209.0 million in 2015.
The difference between the change in gross written premiums compared to the change in net written premiums is primarily due to varying utilization of reinsurance related to the quota share contracts.
Premiums earned decreased 10.6% to $1,119.1 million in 2016 compared to $1,251.1 million in 2015.
The change in premiums earned relative to net written premiums is primarily the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.
Incurred Losses and LAE.
The following table presents the incurred losses and LAE for the International segment for the periods indicated.
## Table 1 ##
Incurred losses and LAE increased by 117.8% to $1,059.6 million in 2017 compared to $486.6 million in 2016, primarily due to an increase of $277.5 million in current year catastrophe losses, favorable development of $224.8 million on prior years attritional losses in 2016 mainly related to property business which did not recur in 2017 and favorable development of $43.7 million on prior years catastrophe losses in 2016 which did not recur in 2017.
The $456.3 million of current year catastrophe losses in 2017 related to Hurricane Maria ($263.2 million), Hurricane Irma ($107.6 million), the Mexico City earthquake ($25.6 million), the South Africa Knysna fires ($24.0 million), Cyclone Debbie in Australia ($17.1 million), the Peru storms ($15.2 million) and Hurricane Harvey ($3.7 million).
The $178.8 million of current year catastrophe losses in 2016 were due to the Fort McMurray Canada wildfire ($97.5 million), Hurricane Matthew ($27.4 million), the Ecuador earthquake ($23.6 million), the 2016 Taiwan earthquake ($15.2 million) and the New Zealand earthquake ($14.0 million).
Incurred losses and LAE decreased by 35.1% to $486.6 million in 2016 compared to $749.9 million in 2015, primarily due to more favorable development on prior year attritional losses of $193.4 million, a decrease in current year attritional losses of $145.1 million, mainly due to lower Canadian, Latin American, Middle Eastern and African losses in 2016 and the impact of the decrease in premiums earned, as well as more favorable development of prior year catastrophe losses of $33.2 million, partially offset by an increase of $108.3 million in current year catastrophe losses.
The $224.8 million of favorable development on prior years attritional losses was mainly related to property business.
The $178.8 million of current year catastrophe losses in 2016 are outlined above.
The $70.5 million of current year catastrophe losses in 2015 were due to the Chilean earthquake ($34.8 million), Northern Chile storms ($19.5 million) and the
Loss and LAE Reserves.
Gross loss and LAE reserves totaled $11,884.3 million and $10,312.3 million at December 31, 2017 and 2016, respectively.
The following tables summarize gross outstanding loss and LAE reserves by segment, classified by case reserves and IBNR reserves, for the periods indicated.
## Table 2 ##
At December 31, 2016
## Table 3 ##
Changes in premiums earned and business mix, reserve re-estimations, catastrophe losses and changes in catastrophe loss reserves and claim settlement activity all impact loss and LAE reserves by segment and in total.
Our loss and LAE reserves represent management’s best estimate of our ultimate liability for unpaid claims.
We continuously re-evaluate our reserves, including re-estimates of prior period reserves, taking into consideration all available information and, in particular, newly reported loss and claim experience.
Changes in reserves resulting from such re-evaluations are reflected in incurred losses in the period when the reevaluation is made.
Our analytical methods and processes operate at multiple levels including individual contracts, groupings of like contracts, classes and lines of business, internal business units, segments, legal entities, and in the aggregate.
In order to set appropriate reserves, we make qualitative and quantitative analyses and judgments at these various levels.
Additionally, the attribution of reserves, changes in reserves and incurred losses among accident years requires qualitative and quantitative adjustments and allocations at these various levels.
We utilize actuarial science, business expertise and management judgment in a manner intended to ensure the accuracy and consistency of our reserving practices.
Nevertheless, our reserves are estimates, which are subject to variation, which may be significant.
There can be no assurance that reserves for, and losses from, claim obligations will not increase in the future, possibly by a material amount.
However, we believe that our existing reserves and reserving methodologies lessen the probability that any such increase would have a material adverse effect on our financial condition, results of operations or cash flows.
We have included ranges for loss reserve estimates determined by our actuaries, which have been developed through a combination of objective and subjective criteria.
Our presentation of this information may not be directly comparable to similar presentations of other companies as there are no consistently applied actuarial or accounting standards governing such presentations.
Our recorded reserves are an aggregation of our best point estimates for approximately 200 reserve groups and reflect our best point estimate of our liabilities.
Our actuarial methodologies develop point estimates rather than ranges and the ranges are developed subsequently based upon historical and prospective variability measures.

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Calendar year:	Pre-tax catastrophe losses
(Dollars in millions)
2017	$1,472.6
2016	301.2
2015	53.8
2014	56.3
2013	194.0

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Years Ended December 31,
(Dollars in millions)	Current Year	Ratio %/ Pt Change	Prior Years	Ratio %/ Pt Change	Total Incurred	Ratio %/ Pt Change
2017
Attritional	$605.3	50.4%	$0.2	0.0%	$605.6	50.4%
Catastrophes	456.3	38.0%	-2.3	-0.2%	454.0	37.8%
Total segment	$1,061.6	88.4%	$-2.1	-0.2%	$1,059.6	88.2%
2016
Attritional	$576.2	51.5%	$-224.8	-20.1%	$351.4	31.4%
Catastrophes	178.8	16.0%	-43.7	-3.9%	135.2	12.1%
Total segment	$755.0	67.5%	$-268.5	-24.0%	$486.6	43.5%
2015
Attritional	$721.3	57.7%	$-31.4	-2.5%	$689.9	55.2%
Catastrophes	70.5	5.6%	-10.5	-0.8%	60.0	4.8%
Total segment	$791.8	63.3%	$-41.9	-3.3%	$749.9	60.0%
Variance 2017/2016
Attritional	$29.1	-1.1	pts	$225.0	20.1	pts	$254.2	19.0	pts
Catastrophes	277.5	22.0	pts	41.4	3.7	pts	318.8	25.7	pts
Total segment	$306.6	20.9	pts	$266.4	23.8	pts	$573.1	44.7	pts
Variance 2016/2015
Attritional	$-145.1	-6.2	pts	$-193.4	-17.6	pts	$-338.5	-23.8	pts
Catastrophes	108.3	10.4	pts	-33.2	-3.1	pts	75.2	7.3	pts
Total segment	$-36.8	4.2	pts	$-226.6	-20.7	pts	$-263.3	-16.5	pts
(Some amounts may not reconcile due to rounding.)

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At December 31, 2017
(Dollars in millions)	Case Reserves	IBNR Reserves	Total Reserves	% of Total
U.S. Reinsurance	$1,719.6	$2,041.0	$3,760.6	31.6%
International	1,147.6	1,022.9	2,170.5	18.3%
Bermuda	1,037.8	1,417.0	2,454.8	20.7%
Insurance	1,049.4	2,000.0	3,049.4	25.7%
Total excluding A&E	4,954.3	6,481.0	11,435.3	96.2%
A&E	306.0	143.0	449.0	3.8%
Total including A&E	$5,260.4	$6,623.9	$11,884.3	100.0%
(Some amounts may not reconcile due to rounding.)

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At December 31, 2016
(Dollars in millions)	Case Reserves	IBNR Reserves	Total Reserves	% of Total
U.S. Reinsurance	$1,316.3	$2,033.9	$3,350.3	32.5%
International	893.5	850.3	1,743.8	16.9%
Bermuda	770.0	1,189.0	1,959.1	19.0%
Insurance	1,018.5	1,799.5	2,818.1	27.3%
Total excluding A&E	3,998.4	5,872.8	9,871.2	95.7%
A&E	293.5	147.6	441.1	4.3%
Total including A&E	$4,291.9	$6,020.4	$10,312.3	100.0%
(Some amounts may not reconcile due to rounding.)

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Question: In the year with lowest amount of Total segment the lowest for Total Incurred, what's the increasing rate of Catastrophes for Total Incurred?
Answer: 2.35799