Segment Information (Tables)

9 Months Ended

Sep. 30, 2020

Reconciliation of Revenue and operating Income from Segments to Consolidated

Following are the operating results for the respective periods:


	Three Months Ended September 30,								Nine Months Ended September 30,
	2020				2019				2020				2019
(millions)	Revenues		Pretax Profit (Loss)		Revenues		Pretax Profit (Loss)		Revenues		Pretax Profit (Loss)		Revenues		Pretax Profit (Loss)
Personal Lines
Agency	$	4,001.6	$	596.5	$	3,703.4	$	380.2	$	11,749.3	$	1,748.7	$	10,851.5	$	1,267.9
Direct	4,309.8		517.6		3,804.0		291.7		12,470.1		1,637.8		11,113.7		940.2
Total Personal Lines1	8,311.4		1,114.1		7,507.4		671.9		24,219.4		3,386.5		21,965.2		2,208.1
Commercial Lines	1,214.8		155.9		1,106.9		69.7		3,532.8		448.2		3,190.4		360.7
Property2	447.3		(52.9)		397.9		(9.1)		1,300.6		(192.4)		1,141.1		(35.8)

Total underwriting operations	9,973.5		1,217.1		9,012.2		732.5		29,052.8		3,642.3		26,296.7		2,533.0
Fees and other revenues3	151.8		NA		138.4		NA		434.8		NA		403.4		NA
Service businesses	58.8		4.4		51.5		2.8		169.4		14.7		144.1		12.0
Investments4	763.1		758.4		328.4		322.5		1,585.3		1,570.8		1,437.0		1,418.7

Interest expense	NA		(56.4)		NA		(47.5)		NA		(160.8)		NA		(142.3)
Consolidated total	$	10,947.2	$	1,923.5	$	9,530.5	$	1,010.3	$	31,242.3	$	5,067.0	$	28,281.2	$	3,821.4

NA = Not applicable

1 Personal auto insurance accounted for 94% of the total Personal Lines segment net premiums earned during the three and nine months ended September 30, 2020 and 2019; 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 For the three and nine months ended September 30, 2020, pretax profit (loss) includes $14.2 million and $42.8 million, respectively, of amortization expense predominately associated with the acquisition of a controlling interest in ARX and $15.8 million and $51.7 million for the same periods in 2019. See Note 13 – Goodwill and Intangible Assets for further discussion.

3 Pretax profit (loss) for fees and other revenues is allocated to operating segments.

4 Revenues represent recurring investment income and total net realized gains (losses) on securities; pretax profit is net of investment expense.

Underwriting Margins and Combined Ratios for our Underwriting Operations

Following are the underwriting margins and combined ratios for our underwriting operations for the respective periods:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
	Under-writing Margin		Combined Ratio	Under-writing Margin		Combined Ratio	Under-writing Margin		Combined Ratio	Under-writing Margin		Combined Ratio
Personal Lines
Agency	14.9	%	85.1	10.3	%	89.7	14.9	%	85.1	11.7	%	88.3
Direct	12.0		88.0	7.7		92.3	13.1		86.9	8.5		91.5
Total Personal Lines	13.4		86.6	9.0		91.0	14.0		86.0	10.1		89.9
Commercial Lines	12.8		87.2	6.3		93.7	12.7		87.3	11.3		88.7
Property1	(11.8)		111.8	(2.3)		102.3	(14.8)		114.8	(3.1)		103.1

Total underwriting operations	12.2		87.8	8.1		91.9	12.5		87.5	9.6		90.4

1 Included in the three and nine months ended September 30, 2020, is 3.2 points and 3.3 points, respectively, of amortization expense predominately associated with the acquisition of a controlling interest in ARX and 4.0 points and 4.5 points, respectively, for the three and nine months ended September 30, 2019.