Segment Information (Tables)

9 Months Ended

Sep. 30, 2023

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,
	2023				2022				2023				2022
(millions)	Revenues		Pretax Profit (Loss)		Revenues		Pretax Profit (Loss)		Revenues		Pretax Profit (Loss)			Revenues		Pretax Profit (Loss)
Personal Lines
Agency	$	5,414.0	$	335.7	$	4,441.9	$	(41.3)	$	15,481.4	$	427.1		$	13,131.7	$	507.6
Direct	6,361.8		706.2		5,077.4		40.6		18,259.9		810.6			14,776.9		389.4
Total Personal Lines1	11,775.8		1,041.9		9,519.3		(0.7)		33,741.3		1,237.7			27,908.6		897.0
Commercial Lines	2,486.6		23.0		2,317.9		238.1		7,296.8		147.4			6,749.5		683.5
Property2	631.8		74.6		561.0		(141.0)		1,852.8		(164.9)			1,689.6		(289.6)
Other indemnity3	0.1		(3.3)		0.7		(2.1)		0.9		(6.7)			2.0		(9.3)
Total underwriting operations	14,894.3		1,136.2		12,398.9		94.3		42,891.8		1,213.5			36,349.7		1,281.6
Fees and other revenues4	223.7		NA		181.4		NA		656.6		NA			531.9		NA
Service businesses	81.4		(10.3)		82.7		(0.1)		234.9		(29.7)			230.5		9.0
Investments5	361.2		354.0		117.2		111.4		1,434.0		1,415.2			(971.2)		(988.6)
Interest expense	NA		(69.7)		NA		(63.1)		NA		(198.7)			NA		(180.4)
Property - Goodwill impairment2	NA		0		NA		0		NA		0			NA		(224.8)
Consolidated total	$	15,560.6	$	1,410.2	$	12,780.2	$	142.5	$	45,217.3	$	2,400.3		$	36,140.9	$	(103.2)

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, 2023 and 2022; insurance for our special lines products (e.g., motorcycles, 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, 2023, pretax profit (loss) included $2.9 million and $10.7 million, respectively, of amortization expense associated with intangible assets attributable to our Property segment, and $5.0 million and $24.1 million for the same periods in 2022. For the nine months ended September 30, 2022, the total pretax loss, including goodwill impairment, for the Property segment was $514.4 million. See Note 12 – Goodwill and Intangible Assets for further discussion.

3 Includes other underwriting business and run-off operations.

4 Pretax profit (loss) for fees and other revenues is allocated to operating segments based on revenue.

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

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,
	2023			2022			2023			2022
	Under-writing Margin		Combined Ratio	Under-writing Margin		Combined Ratio	Under-writing Margin		Combined Ratio		Under-writing Margin		Combined Ratio
Personal Lines
Agency	6.2	%	93.8	(0.9)	%	100.9	2.8	%	97.2		3.9	%	96.1
Direct	11.1		88.9	0.8		99.2	4.4		95.6		2.6		97.4
Total Personal Lines	8.8		91.2	0		100.0	3.7		96.3		3.2		96.8
Commercial Lines	0.9		99.1	10.3		89.7	2.0		98.0		10.1		89.9
Property1	11.8		88.2	(25.1)		125.1	(8.9)		108.9		(17.1)		117.1
Total underwriting operations	7.6		92.4	0.8		99.2	2.8		97.2		3.5		96.5

1 Included in the three and nine months ended September 30, 2023, is 0.5 points and 0.6 points, respectively, of amortization expense associated with intangible assets and 0.9 points and 1.4 points, respectively, for the three and nine months ended September 30, 2022.