(In millions)

Assets

Investments

Cash and cash equivalents

Accrued investment income

Premiums and accounts receivable, net

Reinsurance recoverable on paid and unpaid losses and unearned premiums

Deferred acquisition costs

Deferred income taxes

Goodwill

Other assets

Assets held-for-sale

Assets of discontinued life business

Total assets

Liabilities

Loss and loss adjustment expense reserves

Unearned premiums

Expenses and taxes payable

Reinsurance premiums payable

Debt

Liabilities held-for-sale

Liabilities of discontinued life business

Total liabilities

Total shareholders’ equity

Total liabilities and shareholders’ equity

(In millions)

Revenues

Premiums

Net investment income

Net realized investment gains

Fees and other income

Total revenues

Losses and expenses

Losses and loss adjustment expenses

Amortization of deferred acquisition costs

Interest expense

Other operating expenses

Total losses and expenses

Income from continuing operations before income taxes

Total income tax expense

Income from continuing operations

Earnings per common share from continuing operations:

Basic

Diluted

Weighted average shares outstanding:

Basic

Diluted

(In millions)

Revenues

Premiums

Net investment income

Net realized investment gains

Fees and other income

Total revenues

Losses and expenses

Losses and loss adjustment expenses

Amortization of deferred acquisition costs

Interest expense

Gain on disposal of U.K. motor business

Net loss from repayment of debt

Other operating expenses

Total losses and expenses

Income from continuing operations before income taxes

Total income tax expense

Income from continuing operations

Earnings per common share from continuing operations:

Basic

Diluted

Weighted average shares outstanding:

Basic

Diluted

(In millions)

Revenues

Premiums

Net investment income

Net realized investment gains

Fees and other income

Total revenues

Losses and expenses

Losses and loss adjustment expenses

Amortization of deferred acquisition costs

Interest expense

Gain on disposal of U.K. motor business

Net loss from repayment of debt

Other operating expenses

Total losses and expenses

Income from continuing operations before income taxes

Total income tax expense

Income from continuing operations

Earnings per common share from continuing operations:

Basic

Diluted

Weighted average shares outstanding:

Basic

Diluted

(In millions)

Revenues

Premiums

Net investment income

Net realized and unrealized investment gains

Fees and other income

Total revenues

Losses and expenses

Losses and loss adjustment expenses

Amortization of deferred acquisition costs

Interest expense

Other operating expenses

Total losses and expenses

Income from continuing operations before income taxes

Total income tax expense

Income from continuing operations

Earnings per common share from continuing operations:

Basic

Diluted

Weighted average shares outstanding:

Basic

Diluted

This adjustment reflects anticipated proceeds of $865 million, including $45 million of estimated contingent consideration as of September 30, 2018. These anticipated proceeds are partially offset by $17.1 million of contract adjustments paid to China Re to adjust the purchase price for amounts received by the Company from Chaucer subsequent to March 31, 2018 (“the locked box date”). Additionally, certain expenses associated with the transaction totaling $25.3 million further reduce the net proceeds. Due to additional catastrophe losses incurred by Chaucer subsequent to September 30, 2018, the Company currently estimates Chaucer’s 2018 accident year catastrophe loss ratio to be above the 10% threshold and anticipates receipt of $25 million to $35 million of the contingent consideration, subject to final review and audit as of June 30, 2019.

Adjustments to the consolidated balance sheet include the disposal of $4,247.2 million of assets held-for-sale related to Chaucer and are comprised of the following (in millions):

Investments

Cash and cash equivalents

Accrued investment income

Premiums and accounts receivable, net

Deferred acquisition costs

Reinsurance recoverable on paid and unpaid losses and unearned premiums

Goodwill

Other assets

This adjustment primarily reflects increases in accrued expenses and income tax obligations associated with the transaction, including those established in accordance with FASB Accounting Standards Codification Topic 460, “Guarantees” (“ASC 460”).

Adjustments to the consolidated balance sheet also include the disposal of $3,660.4 million of liabilities held by Chaucer and are comprised of the following (in millions):

Loss and loss adjustment expense reserves

Unearned premiums

Reinsurance premium payable

Other liabilities

Total liabilities held-for-sale

This adjustment primarily represents the anticipated gain on sale as of November 30, 2018, subject to closing adjustments, and excluding recognition of certain after-tax losses that have accumulated in Accumulated Other Comprehensive Income that relate to the Chaucer business being sold.

These adjustments to the consolidated statements of income for the years ended December 31, 2017, 2016 and 2015 reflect activity directly associated with and previously recognized by Chaucer.

As of September 30, 2018, the published consolidated income statement already reflects the results of operations as if the transaction had occurred January 1, 2018 due to the presentation of the respective business as a discontinued operation in accordance with FASB Accounting Standards Codification Topic 360, “Impairment and Disposal of Long-Lived Assets” (“ASC 360”).