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Segment Information
 12 Months Ended
Dec. 31, 2012
Segment Reporting [Abstract]  
Segment Information
Segment Information
The disaggregated results of our three operating segments are used by senior management to manage our operations. These segments are evaluated based on the following:
•
Our Standard Insurance Operations segment and our E&S Insurance Operations segment are 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
•
Our Investments segment is evaluated based on net investment income and net realized gains and losses.

As discussed in Note 1. "Organization" we have revised our reportable segments in 2012 and these revisions are reflected throughout this report for all periods presented.
 
Our combined insurance operations are subject to certain geographic concentrations, particularly in the Northeast and Mid-Atlantic regions of the country. In 2012, approximately 23% of net premiums written were related to insurance policies written in New Jersey.
 
The goodwill balance for our operating segments was $7.8 million at December 31, 2012 and 2011 related to our Standard 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 revenues from continuing operations (net investment income and net realized losses on investments in the case of the Investments segment) and pre-tax income from continuing operations for the individual segments:
Revenue by Segment
 
 
 
 
 
 
Years ended December 31,
 
 
 
 
 
 
($ in thousands)
 
2012
 
2011
 
2010
Standard Insurance Operations:
 
 

 
 

 
 

Net premiums earned:
 
 

 
 

 
 

Commercial automobile
 
$
288,010

 
279,610

 
291,495

Workers compensation
 
262,108

 
259,354

 
252,441

General liability
 
373,381

 
344,682

 
336,475

Commercial property
 
202,340

 
192,989

 
199,252

Business owners’ policies
 
68,462

 
66,225

 
65,260

Bonds
 
18,891

 
18,910

 
19,243

Other
 
12,143

 
9,177

 
10,116

Total standard Commercial Lines
 
1,225,335

 
1,170,947

 
1,174,282

Personal automobile
 
152,142

 
148,824

 
141,962

Homeowners
 
113,850

 
102,764

 
87,862

Other
 
13,563

 
12,864

 
12,492

Total standard Personal Lines
 
279,555

 
264,452

 
242,316

Total Standard Insurance Operations net premiums earned
 
1,504,890

 
1,435,399

 
1,416,598

Miscellaneous income
 
8,827

 
8,069

 
9,230

Total Standard Insurance Operations revenue
 
1,513,717

 
1,443,468

 
1,425,828

E&S Insurance Operations:
 
 
 
 
 
 
Net premiums earned
 
79,229

 
3,914

 
—

Investments:
 
 

 
 

 
 

Net investment income
 
131,877

 
147,443

 
145,708

Net realized gains (losses) on investments
 
8,988

 
2,240

 
(7,083
)
Total investment revenues
 
140,865

 
149,683

 
138,625

Total all segments
 
1,733,811

 
1,597,065

 
1,564,453

Other income
 
291

 
410

 
168

Total revenues from continuing operations
 
$
1,734,102

 
1,597,475

 
1,564,621

Income before federal income tax
 
 
 
 
 
 
Years ended December 31,
 
 
 
 
 
 
($ in thousands)
 
2012
 
2011
 
2010
Standard Insurance Operations:
 
 

 
 

 
 

Commercial Lines underwriting (loss) gain
 
$
(40,935
)
 
(49,952
)
 
180

Personal Lines underwriting loss
 
(3,514
)
 
(46,971
)
 
(20,154
)
Total Standard Insurance Operations underwriting loss, before federal income tax
 
(44,449
)
 
(96,923
)
 
(19,974
)
GAAP combined ratio
 
103.0
%
 
106.8

 
101.4

Statutory combined ratio
 
102.5
%
 
106.4

 
101.6

 
 
 
 
 
 
 
E&S Insurance Operations:
 
 
 
 
 
 
Underwriting loss
 
(19,558
)
 
(6,661
)
 
—

GAAP combined ratio
 
124.7
%
 
270.2

 
—

Statutory combined ratio
 
118.8
%
 
131.3

 
—

 
 
 
 
 
 
 
Investments:
 
 

 
 

 
 

Net investment income
 
131,877

 
147,443

 
145,708

Net realized gains (losses) on investments
 
8,988

 
2,240

 
(7,083
)
Total investment income, before federal income tax
 
140,865

 
149,683

 
138,625

 
 
 
 
 
 
 
Total all segments
 
76,858

 
46,099

 
118,651

Interest expense
 
(18,872
)
 
(18,259
)
 
(18,616
)
General corporate and other expenses
 
(20,351
)
 
(16,440
)
 
(15,886
)
 
 
 
 
 
 
 
Income from continuing operations, before federal income tax
 
$
37,635

 
11,400

 
84,149