XML 14 R17.htm IDEA: XBRL DOCUMENT v2.4.0.8
Segment Information
 9 Months Ended
Sep. 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 September 30,
 
Nine Months ended September 30,
($ in thousands)
 
2013
 
2012
 
2013
 
2012
Standard Insurance Operations:
 
 

 
 

 
 
 
 
Net premiums earned:
 
 

 
 

 
 
 
 
Commercial automobile
 
$
79,138

 
72,758

 
230,191

 
214,782

Workers compensation
 
66,510

 
65,592

 
197,449

 
198,064

General liability
 
100,925

 
93,763

 
298,394

 
276,538

Commercial property
 
57,004

 
52,197

 
165,356

 
151,945

Businessowners’ policies
 
19,629

 
17,749

 
56,794

 
51,872

Bonds
 
4,705

 
4,713

 
14,244

 
14,076

Other
 
3,051

 
2,921

 
9,036

 
9,202

Total standard Commercial Lines
 
330,962

 
309,693

 
971,464

 
916,479

Personal automobile
 
38,513

 
38,295

 
115,432

 
113,648

Homeowners
 
32,374

 
29,919

 
95,211

 
86,685

Other
 
3,827

 
3,591

 
10,655

 
10,037

Total standard Personal Lines
 
74,714

 
71,805

 
221,298

 
210,370

Total Standard Insurance Operations net premiums earned
 
405,676

 
381,498

 
1,192,762

 
1,126,849

Miscellaneous income
 
3,342

 
1,009

 
9,590

 
6,904

Total Standard Insurance Operations revenue
 
409,018

 
382,507

 
1,202,352

 
1,133,753

E&S Insurance Operations:
 
 
 
 
 
 
 
 
Net premiums earned
 
31,892

 
24,727

 
91,998

 
50,417

Investments:
 
 

 
 

 
 

 
 

Net investment income
 
32,457

 
30,650

 
99,330

 
97,284

Net realized investment gains (losses)
 
13,431

 
(1,088
)
 
21,940

 
3,448

Total investment revenues
 
45,888

 
29,562

 
121,270

 
100,732

Total all segments
 
486,798

 
436,796

 
1,415,620

 
1,284,902

Other income
 
15

 
76

 
87

 
225

Total revenues from continuing operations
 
$
486,813

 
436,872

 
1,415,707

 
1,285,127

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

 
 

 
 
 
 
Commercial Lines underwriting gain (loss)
 
$
8,776

 
(651
)
 
24,621

 
(14,666
)
Personal Lines underwriting gain
 
1,362

 
7,220

 
4,360

 
2,903

Total Standard Insurance Operations underwriting gain (loss), before federal income tax
 
10,138

 
6,569

 
28,981

 
(11,763
)
GAAP combined ratio
 
97.5
%
 
98.3

 
97.6

 
101.0

Statutory combined ratio
 
96.0
%
 
96.9

 
96.6

 
100.1

 
 
 
 
 
 
 
 
 
E&S Insurance Operations:
 
 
 
 
 
 
 
 
Underwriting gain (loss)
 
13

 
(5,708
)
 
(2,186
)
 
(15,701
)
GAAP combined ratio
 
100.0
%
 
123.1

 
102.4

 
131.1

Statutory combined ratio
 
100.5
%
 
121.6

 
101.9

 
120.3

 
 
 
 
 
 
 
 
 
Investments:
 
 

 
 

 
 

 
 

Net investment income
 
32,457

 
30,650

 
99,330

 
97,284

Net realized investment gains (losses)
 
13,431

 
(1,088
)
 
21,940

 
3,448

Total investment income, before federal income tax
 
45,888

 
29,562

 
121,270

 
100,732

 
 
 
 
 
 
 
 
 
Total all segments
 
56,039

 
30,423

 
148,065

 
73,268

Interest expense
 
(5,570
)
 
(4,725
)
 
(16,971
)
 
(14,148
)
General corporate and other expenses
 
(5,984
)
 
(5,384
)
 
(21,540
)
 
(16,307
)
Income from continuing operations before federal income tax
 
$
44,485

 
20,314

 
109,554

 
42,813