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Segment Information
 9 Months Ended
Sep. 30, 2012
Segment Reporting [Abstract]  
Segment Information
Segment Information
We have historically 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.

In Nine Months 2012, we began writing E&S business through our newly-acquired subsidiary, MUSIC. 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 for reporting purposes.
 
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
 September 30,
 
Nine Months ended
September 30,
($ in thousands)
 
2012
 
2011
 
2012
 
2011
Insurance Operations:
 
 

 
 

 
 

 
 

Net premiums earned:
 
 

 
 

 
 

 
 

Commercial automobile
 
$
72,758

 
70,174

 
$
214,782

 
209,042

Workers compensation
 
65,592

 
63,497

 
198,064

 
189,878

General liability
 
93,763

 
87,479

 
276,538

 
255,717

Commercial property
 
52,197

 
48,051

 
151,945

 
144,121

Business owners’ policies
 
17,749

 
16,663

 
51,872

 
49,555

Bonds
 
4,713

 
4,727

 
14,076

 
14,219

Other
 
27,648

 
1,772

 
59,619

 
6,889

Total commercial lines
 
334,420

 
292,363

 
966,896

 
869,421

Personal automobile
 
38,295

 
37,371

 
113,648

 
111,522

Homeowners
 
29,919

 
25,923

 
86,685

 
75,538

Other
 
3,591

 
3,306

 
10,037

 
9,405

Total personal lines
 
71,805

 
66,600

 
210,370

 
196,465

Total net premiums earned
 
406,225

 
358,963

 
1,177,266

 
1,065,886

Miscellaneous income
 
1,009

 
1,255

 
6,904

 
6,413

Total Insurance Operations revenues
 
407,234

 
360,218

 
1,184,170

 
1,072,299

Investments:
 
 

 
 

 
 

 
 

Net investment income
 
30,650

 
35,786

 
97,284

 
118,604

Net realized investment (losses) gains
 
(1,088
)
 
(2,045
)
 
3,448

 
5,861

Total investment revenues
 
29,562

 
33,741

 
100,732

 
124,465

Total all segments
 
436,796

 
393,959

 
1,284,902

 
1,196,764

Other income
 
76

 
110

 
225

 
331

Total revenues
 
$
436,872

 
394,069

 
$
1,285,127

 
1,197,095

 
Income from Continuing Operations before Federal Income Tax
 
Quarter ended
September 30,
 
Nine Months ended
September 30,
($ in thousands)
 
2012
 
2011
 
2012
 
2011
Insurance Operations:
 
 

 
 

 
 

 
 

Commercial lines underwriting
 
$
(6,359
)
 
(36,512
)
 
$
(30,367
)
 
(66,150
)
Personal lines underwriting
 
7,220

 
(28,267
)
 
2,903

 
(45,329
)
Underwriting income (loss), before federal income tax
 
861

 
(64,779
)
 
(27,464
)
 
(111,479
)
GAAP combined ratio
 
99.8
%
 
118.0
%
 
102.3
%
 
110.5
%
Statutory combined ratio
 
98.4
%
 
116.4
%
 
101.2
%
 
109.6
%
Investments:
 
 

 
 

 
 

 
 

Net investment income
 
$
30,650

 
35,786

 
$
97,284

 
118,604

Net realized investment (losses) gains
 
(1,088
)
 
(2,045
)
 
3,448

 
5,861

Total investment income, before federal income tax
 
29,562

 
33,741

 
100,732

 
124,465

Total all segments
 
30,423

 
(31,038
)
 
73,268

 
12,986

Interest expense
 
(4,725
)
 
(4,559
)
 
(14,148
)
 
(13,675
)
General corporate and other expenses
 
(5,384
)
 
(1,886
)
 
(16,307
)
 
(10,735
)
Income (loss) from continuing operations before federal income tax
 
$
20,314

 
(37,483
)
 
$
42,813

 
(11,424
)