Consolidated Statements of Income
(millions – except per share amounts)
| For the years ended December 31, |  2009 |
2008 | 2007 | |||
|---|---|---|---|---|---|---|
Revenues |
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| Net premiums earned | $ | 14,012.8 | $ | 13,631.4 | $ | 13,877.4 |
| Investment income | 507.0 | 637.7 | 680.8 | |||
| Net realized gains (losses) on securities: | ||||||
| Other-than-temporary impairment (OTTI) losses: | ||||||
| Total OTTI losses | (80.9) | |||||
| Less: portion of OTTI losses recognized in other comprehensive income | 40.1 | |||||
| Net impairment losses recognized in earnings | (40.8) | |||||
| Net realized gains (losses) on securities | 67.9 | |||||
| Total net realized gains (losses) on securities | 27.1 | (1,445.1) | 106.3 | |||
| Service revenues | 16.7 | 16.1 | 22.3 | |||
| Total revenues | 14,563.6 | 12,840.1 | 14,686.8 | |||
Expenses |
||||||
| Losses and loss adjustment expenses | 9,904.9 | 10,015.0 | 9,926.2 | |||
| Policy acquisition costs | 1,364.6 | 1,358.1 | 1,399.9 | |||
| Other underwriting expenses | 1,567.7 | 1,523.4 | 1,526.2 | |||
| Investment expenses | 11.1 | 8.8 | 12.4 | |||
| Service expenses | 19.4 | 20.4 | 20.5 | |||
| Interest expense | 139.0 | 136.7 | 108.6 | |||
| Total expenses | 13,006.7 | 13,062.4 | 12,993.8 | |||
Net Income (Loss) |
||||||
| Income (loss) before income taxes | 1,556.9 | (222.3) | 1,693.0 | |||
| Provision (benefit) for income taxes | 499.4 | (152.3) | 510.5 | |||
| Net income (loss) | $ | 1,057.5 | $ | (70.0) | $ | 1,182.5 |
Computation of Earnings Per Share |
||||||
| Basic: | ||||||
| Average shares outstanding | 666.8 | 668.0 | 710.4 | |||
| Per share | $ | 1.59 | $ | (.10) | $ | 1.66 |
| Diluted: | ||||||
| Average shares outstanding | 666.8 | 668.0 | 710.4 | |||
| Net effect of dilutive stock-based compensation | 5.4 | 5.9 | 8.1 | |||
| Total equivalent shares | 672.2 | 673.9 | 718.5 | |||
| Per share1 | $ | 1.57 | $ | (.10) | $ | 1.65 |
1) For 2008, amount represents basic earnings per share since diluted earnings per share was antidilutive due to the net loss for the year.
See notes to consolidated financial statements.