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Segment Information | 9 Months Ended
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Sep. 30, 2024
Segment Reporting [Abstract] |
Segment Information | 8. Segment Information The Company’s primary business operations include insurance products and services provided through four reporting segments: Core Commercial, Specialty, Personal Lines and Other. Core Commercial includes commercial multiple peril, commercial automobile, workers’ compensation, and other commercial coverages provided to small and mid-sized businesses. Specialty includes four divisions of business: Professional and Executive Lines, Specialty Property and Casualty (“Specialty P&C”), Marine, and Surety and Other. Specialty P&C includes coverages such as program business, which provides commercial insurance to markets with specialized coverage or risk management needs related to groups of similar businesses, specialty industrial and commercial property, excess and surplus lines and specialty general liability coverage. Personal Lines includes personal automobile, homeowners and other personal coverages. The Other segment includes earnings on holding company assets; holding company and other expenses, including certain costs associated with retirement benefits due to the Company’s former life insurance employees and agents; run-off voluntary assumed property and casualty pools and run-off direct asbestos and environmental, and product liability businesses. Also included in the Other segment during the first half of 2024 and prior were the operations of Opus Investment Management, Inc. (“Opus”), which provided investment management services to THG, as well as institutions, pension funds, and other organizations. During the second and third quarters of 2024, the Company exited all of Opus’ business operations serving unaffiliated entities. Investment management services provided by Opus to THG related to its investment-grade fixed maturities portfolio were also transferred to an external manager during the second quarter of 2024. The separate financial information is presented consistent with the way results are regularly evaluated by the CODM in deciding how to allocate resources and in assessing performance. The Company reports interest expense related to debt separately from the earnings of its reporting segments. This consists primarily of interest on the Company’s senior and subordinated debentures. Management evaluates the results of its segments based on operating income (loss) before interest expense and income taxes. Operating income (loss) before interest expense and income taxes excludes certain items which are included in net income (loss), such as net realized and unrealized investment gains and losses. Such gains and losses are excluded since they are determined by interest rates, financial markets and the timing of sales. Also, operating income (loss) before interest expense and income taxes excludes net gains and losses on disposals of businesses, gains and losses related to the repayment of debt, discontinued operations, costs to acquire businesses, restructuring costs, the cumulative effect of accounting changes and certain other items. Although the items excluded from operating income (loss) before interest expense and income taxes may be important components in understanding and assessing the Company’s overall financial performance, management believes that the presentation of operating income (loss) before interest expense and income taxes enhances an investor’s understanding of the Company’s results of operations by highlighting net income (loss) attributable to the core operations of the business. However, operating income (loss) before income taxes should not be construed as a substitute for income (loss) before income taxes or income (loss) from continuing operations and operating income (loss) should not be construed as a substitute for net income (loss). Summarized below is financial information with respect to the Company’s reporting segments.
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
(in millions) |  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Operating revenues: |  |  |  |  |  |  |  |  |  |  |  |
Core Commercial |  | $ | 576.6 |  |  | $ | 557.1 |  |  | $ | 1,727.6 |  |  | $ | 1,658.2 |
Specialty |  |  | 353.7 |  |  |  | 340.9 |  |  |  | 1,049.0 |  |  |  | 1,011.6 |
Personal Lines |  |  | 644.9 |  |  |  | 620.5 |  |  |  | 1,908.5 |  |  |  | 1,815.1 |
Other |  |  | 2.5 |  |  |  | 4.2 |  |  |  | 9.4 |  |  |  | 11.6 |
Total |  |  | 1,577.7 |  |  |  | 1,522.7 |  |  |  | 4,694.5 |  |  |  | 4,496.5 |
Net realized and unrealized investment losses |  |  | (12.4 | ) |  |  | (6.1 | ) |  |  | (41.4 | ) |  |  | (31.8 | )
Total revenues |  | $ | 1,565.3 |  |  | $ | 1,516.6 |  |  | $ | 4,653.1 |  |  | $ | 4,464.7 |
Operating income (loss) before interest expense and income taxes: |  |  |  |  |  |  |  |  |  |  |  |
Core Commercial: |  |  |  |  |  |  |  |  |  |  |  |
Underwriting income |  | $ | 14.6 |  |  | $ | 5.3 |  |  | $ | 88.3 |  |  | $ | 1.0 |
Net investment income |  |  | 42.1 |  |  |  | 38.4 |  |  |  | 124.3 |  |  |  | 114.2 |
Other expense |  |  | (0.8 | ) |  |  | (0.6 | ) |  |  | (2.0 | ) |  |  | (0.8 | )
Core Commercial operating income |  |  | 55.9 |  |  |  | 43.1 |  |  |  | 210.6 |  |  |  | 114.4 |
Specialty: |  |  |  |  |  |  |  |  |  |  |  |
Underwriting income |  |  | 52.6 |  |  |  | 52.7 |  |  |  | 113.5 |  |  |  | 119.5 |
Net investment income |  |  | 20.9 |  |  |  | 18.0 |  |  |  | 61.7 |  |  |  | 53.6 |
Other expense |  |  | (0.5 | ) |  |  | (0.4 | ) |  |  | (0.8 | ) |  |  | (0.1 | )
Specialty operating income |  |  | 73.0 |  |  |  | 70.3 |  |  |  | 174.4 |  |  |  | 173.0 |
Personal Lines: |  |  |  |  |  |  |  |  |  |  |  |
Underwriting loss |  |  | (6.7 | ) |  |  | (127.3 | ) |  |  | (74.4 | ) |  |  | (422.4 | )
Net investment income |  |  | 26.3 |  |  |  | 24.3 |  |  |  | 77.9 |  |  |  | 73.3 |
Other income |  |  | 2.1 |  |  |  | 2.6 |  |  |  | 6.7 |  |  |  | 8.0 |
Personal Lines operating income (loss) |  |  | 21.7 |  |  |  | (100.4 | ) |  |  | 10.2 |  |  |  | (341.1 | )
Other: |  |  |  |  |  |  |  |  |  |  |  |
Underwriting income |  |  | — |  |  |  | — |  |  |  | — |  |  | — |
Net investment income |  |  | 2.5 |  |  |  | 3.5 |  |  |  | 8.0 |  |  |  | 9.4 |
Other expense |  |  | (2.5 | ) |  |  | (2.8 | ) |  |  | (7.5 | ) |  |  | (8.2 | )
Other operating income |  |  | — |  |  |  | 0.7 |  |  |  | 0.5 |  |  |  | 1.2 |
Operating income (loss) before interest expense and income taxes |  |  | 150.6 |  |  |  | 13.7 |  |  |  | 395.7 |  |  |  | (52.5 | )
Interest on debt |  |  | (8.5 | ) |  |  | (8.5 | ) |  |  | (25.6 | ) |  |  | (25.6 | )
Operating income (loss) before income taxes |  |  | 142.1 |  |  |  | 5.2 |  |  |  | 370.1 |  |  |  | (78.1 | )
Non-operating items: |  |  |  |  |  |  |  |  |  |  |  |
Net realized and unrealized investment losses |  |  | (12.4 | ) |  |  | (6.1 | ) |  |  | (41.4 | ) |  |  | (31.8 | )
Other non-operating |  |  | — |  |  |  | — |  |  |  | (2.4 | ) |  |  | 0.8 |
Income (loss) from continuing operations before income taxes |  | $ | 129.7 |  |  | $ | (0.9 | ) |  | $ | 326.3 |  |  | $ | (109.1 | )
The following table provides identifiable assets for the Company’s segments and discontinued operations:
(in millions) |  | September 30, 2024 |  |  | December 31, 2023 |
Property and Casualty |  | $ | 15,277.9 |  |  | $ | 14,526.0 |
Assets of discontinued businesses |  |  | 89.1 |  |  |  | 86.6 |
Total |  | $ | 15,367.0 |  |  | $ | 14,612.6 |
The Company reviews the assets of its insurance subsidiaries collectively and does not allocate them among the Core Commercial, Specialty, Personal Lines and Other segments.

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