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Segment Information
 12 Months Ended
Dec. 31, 2013
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 after-tax net investment income and net realized gains and losses.
 
Our combined insurance operations are subject to certain geographic concentrations, particularly in the Northeast and Mid-Atlantic regions of the country. In 2013, 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, 2013 and 2012 related to our Standard Insurance Operations segment.
 
In computing the results of each segment, we do not make adjustments for interest expense or net general corporate expenses. While we do not fully allocate taxes to all segments, we do allocate taxes to our investments segment as we manage that segment on after-tax results. 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)
 
2013
 
2012
 
2011
Standard Insurance Operations:
 
 

 
 

 
 

Net premiums earned:
 
 

 
 

 
 

Commercial automobile
 
$
310,994

 
288,010

 
279,610

Workers compensation
 
267,612

 
262,108

 
259,354

General liability
 
405,322

 
373,381

 
344,682

Commercial property
 
224,412

 
202,340

 
192,989

Businessowners’ policies
 
77,097

 
68,462

 
66,225

Bonds
 
19,000

 
18,891

 
18,910

Other
 
12,182

 
12,143

 
9,177

Total standard Commercial Lines
 
1,316,619

 
1,225,335

 
1,170,947

Personal automobile
 
152,005

 
152,142

 
148,824

Homeowners
 
127,991

 
113,850

 
102,764

Other
 
14,336

 
13,563

 
12,864

Total standard Personal Lines
 
294,332

 
279,555

 
264,452

Total Standard Insurance Operations net premiums earned
 
1,610,951

 
1,504,890

 
1,435,399

Miscellaneous income
 
12,201

 
8,827

 
8,069

Total Standard Insurance Operations revenue
 
1,623,152

 
1,513,717

 
1,443,468

E&S Insurance Operations:
 
 
 
 
 
 
Net premiums earned
 
125,121

 
79,229

 
3,914

Investments:
 
 

 
 

 
 

Net investment income
 
134,643

 
131,877

 
147,443

Net realized investment gains
 
20,732

 
8,988

 
2,240

Total investment revenues
 
155,375

 
140,865

 
149,683

Total all segments
 
1,903,648

 
1,733,811

 
1,597,065

Other income
 
93

 
291

 
410

Total revenues from continuing operations
 
$
1,903,741

 
1,734,102

 
1,597,475



Segment Income
 
 
 
 
 
 
Years ended December 31,
 
 
 
 
 
 
($ in thousands)
 
2013
 
2012
 
2011
Standard Insurance Operations:
 
 

 
 

 
 

Commercial Lines underwriting gain (loss)
 
$
33,856

 
(40,935
)
 
(49,952
)
Personal Lines underwriting gain (loss)
 
8,645

 
(3,514
)
 
(46,971
)
Total Standard Insurance Operations underwriting gain (loss), before federal income tax
 
42,501

 
(44,449
)
 
(96,923
)
GAAP combined ratio
 
97.4
%
 
103.0

 
106.8

Statutory combined ratio
 
97.1
%
 
102.5

 
106.4

 
 
 
 
 
 
 
E&S Insurance Operations:
 
 
 
 
 
 
Underwriting loss, before federal income tax
 
(3,735
)
 
(19,558
)
 
(6,661
)
GAAP combined ratio
 
103.0
%
 
124.7

 
270.2

Statutory combined ratio
 
102.9
%
 
118.8

 
131.3

 
 
 
 
 
 
 
Investments:
 
 

 
 

 
 

Net investment income
 
134,643

 
131,877

 
147,443

Net realized investment gains
 
20,732

 
8,988

 
2,240

Total investment income, before federal income tax
 
155,375

 
140,865

 
149,683

Tax on investment income
 
40,489

 
34,758

 
37,139

Total investment income, after federal income tax
 
$
114,886

 
106,107

 
112,544


 
Reconciliation of Segment Results to Income from Continuing Operations, before Federal Income Tax
 
 
 
 
 
 
Years ended December 31,
 
 
 
 
 
 
($ in thousands)
 
2013
 
2012
 
2011
Standard Insurance Operations underwriting gain (loss), before federal income tax
 
$
42,501

 
(44,449
)
 
(96,923
)
E&S Insurance Operations underwriting loss, before federal income tax
 
(3,735
)
 
(19,558
)
 
(6,661
)
Investment income, before federal income tax
 
155,375

 
140,865

 
149,683

Total all segments
 
194,141

 
76,858

 
46,099

Interest expense
 
(22,538
)
 
(18,872
)
 
(18,259
)
General corporate and other expenses
 
(27,801
)
 
(20,351
)
 
(16,440
)
Income from continuing operations, before federal income tax
 
$
143,802

 
37,635

 
11,400