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Segment Information | 6 Months Ended
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Jun. 30, 2012
Segment Reporting [Abstract] |
Segment Information | Segment Information We have classified our operations into two segments, the disaggregated results of which are reported to and used by senior management to manage our operations:
• | Insurance Operations, which is evaluated based on statutory underwriting results (net premiums earned, incurred losses and loss expenses, policyholders dividends, policy acquisition costs, and other underwriting expenses) and statutory combined ratios; and
• | Investments, which is evaluated based on net investment income and net realized gains and losses.
Our Insurance Operations segment has historically reflected the results of our standard commercial lines and personal lines market insurance products. In 2011, through our acquisition activities, we began writing E&S business. This business has not met the quantitative thresholds for individual segment reporting, and as our E&S operations share various economic, regulatory, and production-related characteristics with our standard market insurance products, we have aggregated their results into our Insurance Operations segment. In computing the results of each segment, we do not make adjustments for interest expense, net general corporate expenses, or federal income taxes. We do not maintain separate investment portfolios for the segments, and therefore, do not allocate assets to the segments. The following summaries present revenue (net investment income and net realized gain (loss) on investments in the case of the Investments segment) and pre-tax income for the individual segments:
Revenue by Segment |  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2012 |  | 2011 |  | 2012 |  | 2011
Insurance Operations: |  |  |  |  |  |  |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |  |  |  |  |  |  |
Commercial automobile |  | $ | 71,540 |  |  | 69,198 |  |  | $ | 142,024 |  |  | 138,868 |
Workers compensation |  | 66,661 |  |  | 63,855 |  |  | 132,472 |  |  | 126,381 |
General liability |  | 92,632 |  |  | 85,672 |  |  | 182,775 |  |  | 168,238 |
Commercial property |  | 50,377 |  |  | 47,877 |  |  | 99,748 |  |  | 96,070 |
Business owners’ policies |  | 17,266 |  |  | 16,407 |  |  | 34,123 |  |  | 32,892 |
Bonds |  | 4,700 |  |  | 4,725 |  |  | 9,363 |  |  | 9,492 |
Other |  | 19,080 |  |  | 2,561 |  |  | 31,971 |  |  | 5,117 |
Total commercial lines |  | 322,256 |  |  | 290,295 |  |  | 632,476 |  |  | 577,058 |
Personal automobile |  | 37,897 |  |  | 37,189 |  |  | 75,353 |  |  | 74,151 |
Homeowners |  | 28,808 |  |  | 25,060 |  |  | 56,766 |  |  | 49,615 |
Other |  | 3,251 |  |  | 3,036 |  |  | 6,446 |  |  | 6,099 |
Total personal lines |  | 69,956 |  |  | 65,285 |  |  | 138,565 |  |  | 129,865 |
Total net premiums earned |  | 392,212 |  |  | 355,580 |  |  | 771,041 |  |  | 706,923 |
Miscellaneous income |  | 2,438 |  |  | 2,388 |  |  | 5,895 |  |  | 5,158 |
Total Insurance Operations revenues |  | 394,650 |  |  | 357,968 |  |  | 776,936 |  |  | 712,081 |
Investments: |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  | 34,006 |  |  | 39,345 |  |  | 66,634 |  |  | 82,818 |
Net realized investment gains |  | 178 |  |  | 2,146 |  |  | 4,536 |  |  | 7,906 |
Total investment revenues |  | 34,184 |  |  | 41,491 |  |  | 71,170 |  |  | 90,724 |
Total all segments |  | 428,834 |  |  | 399,459 |  |  | 848,106 |  |  | 802,805 |
Other income |  | 73 |  |  | 111 |  |  | 149 |  |  | 221 |
Total revenues |  | $ | 428,907 |  |  | 399,570 |  |  | $ | 848,255 |  |  | 803,026 |
Income Before Federal Income Tax |  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2012 |  | 2011 |  | 2012 |  | 2011
Insurance Operations: |  |  |  |  |  |  |  |  |  |  |  |
Commercial lines underwriting |  | $ | (19,524 | ) |  | (23,446 | ) |  | $ | (24,008 | ) |  | (29,638 | )
Personal lines underwriting |  | (7,438 | ) |  | (10,556 | ) |  | (4,317 | ) |  | (17,062 | )
Underwriting loss, before federal income tax |  | (26,962 | ) |  | (34,002 | ) |  | (28,325 | ) |  | (46,700 | )
GAAP combined ratio |  | 106.9 | % |  | 109.6 | % |  | 103.7 | % |  | 106.6 | %
Statutory combined ratio |  | 106.2 | % |  | 109.5 | % |  | 102.7 | % |  | 106.1 | %
Investments: |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  | $ | 34,006 |  |  | 39,345 |  |  | $ | 66,634 |  |  | 82,818 |
Net realized investment gains |  | 178 |  |  | 2,146 |  |  | 4,536 |  |  | 7,906 |
Total investment income, before federal income tax |  | 34,184 |  |  | 41,491 |  |  | 71,170 |  |  | 90,724 |
Total all segments |  | 7,222 |  |  | 7,489 |  |  | 42,845 |  |  | 44,024 |
Interest expense |  | (4,723 | ) |  | (4,559 | ) |  | (9,423 | ) |  | (9,116 | )
General corporate and other expenses |  | (3,191 | ) |  | (3,029 | ) |  | (10,923 | ) |  | (8,849 | )
(Loss) Income before federal income tax |  | $ | (692 | ) |  | (99 | ) |  | $ | 22,499 |  |  | 26,059 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 + Details
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