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Segment Information (Tables)
 12 Months Ended
Dec. 31, 2017
Segment Reporting [Abstract]  
Reconciliation of Revenue and Operating Income from Segments to Consolidated
Following are the operating results for the years ended December 31:
  
2017
 
2016
 
2015
(millions)
Revenues

Pretax
Profit
(Loss)

 
Revenues

Pretax
Profit
(Loss)

 
Revenues

Pretax
Profit
(Loss)

Personal Lines
 
 
 
 
 
 
 
 
Agency
$
11,177.6

$
839.6

 
$
9,791.7

$
492.8

 
$
9,108.6

$
713.2

Direct
10,769.6

683.7

 
9,396.5

412.2

 
8,185.9

403.4

Total Personal Lines1 
21,947.2

1,523.3


19,188.2

905.0


17,294.5

1,116.6

Commercial Lines
2,793.9

214.1

 
2,421.3

155.2

 
1,995.9

318.3

Property2
988.8

(50.3
)
 
864.5

32.5

 
609.1

61.3

Other indemnity3
0

(0.2
)
 
0

(1.6
)
 
(0.4
)
(1.0
)
Total underwriting operations
25,729.9

1,686.9

 
22,474.0

1,091.1

 
19,899.1

1,495.2

Fees and other revenues4 
370.6

NA

 
332.5

NA

 
302.0

NA

Service businesses
126.8

17.3

 
103.3

11.3

 
86.3

8.8

Investments5 
612.7

588.8

 
530.0

507.6

 
567.3

544.5

Other gains (losses)
(1.0
)
(1.0
)
 
1.6

1.6

 
(0.9
)
(0.9
)
Interest expense
NA

(153.1
)
 
NA

(140.9
)
 
NA

(136.0
)
Consolidated total
$
26,839.0

$
2,138.9

 
$
23,441.4

$
1,470.7

 
$
20,853.8

$
1,911.6

NA = Not Applicable
1 Personal auto insurance accounted for 93% of the total Personal Lines segment net premiums earned in 2017, compared to 92% in 2016 and 2015; insurance for our special lines products (e.g., motorcycles, ATVs, RVs, watercraft, and snowmobiles) accounted for the balance of the Personal Lines net premiums earned.
2 We began reporting our Property business as a segment on April 1, 2015, upon acquisition of a controlling interest in ARX; therefore, the year ended 2015 only includes results for nine months and is not comparable to results reported for 2017 or 2016. During 2017, 2016, and 2015, pretax profit (loss) also includes $66.2 million, $62.1 million, and $46.8 million, respectively, of amortization expense predominately associated with the acquisition of a controlling interest in ARX. Although this expense is included in our Property segment, it is not reported in the consolidated results of ARX and, therefore, will not affect the value of the net income attributable to the noncontrolling interest.
3 Our professional liability group recognized $0.4 million of reinstatement premiums paid to our reinsurers pursuant to their reinsurance contracts during 2015. This premium reduction was reflected in our companywide total results.
4 Pretax profit (loss) for fees and other revenues are allocated to operating segments.
5 Revenues represent recurring investment income and total net realized gains (losses) on securities; pretax profit is net of investment expenses.
Underwriting Margins and Combined Ratios for our Underwriting Operations
Following are the underwriting margins/combined ratios for our underwriting operations for the years ended December 31:
 
2017
 
2016
 
2015
  
Underwriting
Margin

Combined
Ratio
 
Underwriting
Margin

Combined
Ratio
 
Underwriting
Margin

Combined
Ratio
Personal Lines
 
 
 
 
 
 
 
 
Agency
7.5
 %
92.5
 
5.0
%
95.0
 
7.8
%
92.2
Direct
6.3

93.7
 
4.4

95.6
 
4.9

95.1
Total Personal Lines
6.9

93.1
 
4.7

95.3
 
6.5

93.5
Commercial Lines
7.7

92.3
 
6.4

93.6
 
15.9

84.1
Property1
(5.1
)
105.1
 
3.8

96.2
 
10.1

89.9
Total underwriting operations
6.6

93.4
 
4.9

95.1
 
7.5

92.5
1 We began reporting our Property business as a segment on April 1, 2015, when we acquired a controlling interest in ARX; therefore, the year ended 2015 only includes results for nine months and is not comparable to results reported for 2017 or 2016. Included in 2017, 2016, and 2015 is 6.7 points, 7.2 points, and 7.7 points, respectively, of amortization expense predominately associated with the acquisition of a controlling interest in ARX.