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Segment Information
 6 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  
Segment Information
Segment Information
The 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 loss 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.

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 gains on investments in the case of the Investments segment) and pre-tax income from continuing operations for the individual segments:
Revenue by Segment
 
Quarter ended June 30,
 
Six Months ended June 30,
($ in thousands)
 
2013
 
2012
 
2013
 
2012
Standard Insurance Operations:
 
 

 
 

 
 
 
 
Net premiums earned:
 
 

 
 

 
 
 
 
Commercial automobile
 
$
76,706

 
71,540

 
151,053

 
142,024

Workers compensation
 
64,855

 
66,661

 
130,939

 
132,472

General liability
 
99,766

 
92,632

 
197,469

 
182,775

Commercial property
 
54,937

 
50,377

 
108,352

 
99,748

Businessowners’ policies
 
18,625

 
17,266

 
37,165

 
34,123

Bonds
 
4,775

 
4,700

 
9,539

 
9,363

Other
 
2,993

 
3,113

 
5,985

 
6,281

Total standard Commercial Lines
 
322,657

 
306,289

 
640,502

 
606,786

Personal automobile
 
38,526

 
37,897

 
76,919

 
75,353

Homeowners
 
31,702

 
28,808

 
62,837

 
56,766

Other
 
3,320

 
3,251

 
6,828

 
6,446

Total standard Personal Lines
 
73,548

 
69,956

 
146,584

 
138,565

Total Standard Insurance Operations net premiums earned
 
396,205

 
376,245

 
787,086

 
745,351

Miscellaneous income
 
3,528

 
2,438

 
6,248

 
5,895

Total Standard Insurance Operations revenue
 
399,733

 
378,683

 
793,334

 
751,246

E&S Insurance Operations:
 
 
 
 
 
 
 
 
Net premiums earned
 
30,047

 
15,967

 
60,106

 
25,690

Investments:
 
 

 
 

 
 

 
 

Net investment income
 
34,003

 
34,006

 
66,873

 
66,634

Net realized investment gains
 
5,154

 
178

 
8,509

 
4,536

Total investment revenues
 
39,157

 
34,184

 
75,382

 
71,170

Total all segments
 
468,937

 
428,834

 
928,822

 
848,106

Other income
 
8

 
73

 
72

 
149

Total revenues from continuing operations
 
$
468,945

 
428,907

 
928,894

 
848,255

 
Income from Continuing Operations before Federal Income Tax
 
Quarter ended June 30,
 
Six Months ended June 30,
($ in thousands)
 
2013
 
2012
 
2013
 
2012
Standard Insurance Operations:
 
 

 
 

 
 
 
 
Commercial Lines underwriting gain (loss)
 
$
9,743

 
(14,424
)
 
15,845

 
(14,015
)
Personal Lines underwriting gain (loss)
 
(2,975
)
 
(7,438
)
 
2,998

 
(4,317
)
Total Standard Insurance Operations underwriting gain (loss), before federal income tax
 
6,768

 
(21,862
)
 
18,843

 
(18,332
)
GAAP combined ratio
 
98.3
%
 
105.8

 
97.6

 
102.5

Statutory combined ratio
 
97.0
%
 
105.5

 
96.9

 
101.8

 
 
 
 
 
 
 
 
 
E&S Insurance Operations:
 
 
 
 
 
 
 
 
Underwriting loss
 
(2,285
)
 
(5,100
)
 
(2,199
)
 
(9,993
)
GAAP combined ratio
 
107.6
%
 
131.9

 
103.7

 
138.9

Statutory combined ratio
 
106.8
%
 
116.1

 
102.6

 
118.0

 
 
 
 
 
 
 
 
 
Investments:
 
 

 
 

 
 

 
 

Net investment income
 
34,003

 
34,006

 
66,873

 
66,634

Net realized investment gains
 
5,154

 
178

 
8,509

 
4,536

Total investment income, before federal income tax
 
39,157

 
34,184

 
75,382

 
71,170

 
 
 
 
 
 
 
 
 
Total all segments
 
43,640

 
7,222

 
92,026

 
42,845

Interest expense
 
(5,570
)
 
(4,723
)
 
(11,401
)
 
(9,423
)
General corporate and other expenses
 
(1,869
)
 
(3,191
)
 
(15,556
)
 
(10,923
)
Income (loss) from continuing operations before federal income tax
 
$
36,201

 
(692
)
 
65,069

 
22,499