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Segment Information
 3 Months Ended
Mar. 31, 2014
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 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 after-tax net investment income and net realized gains and losses.

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.

In First Quarter 2014, we sold the renewal rights to our $38 million self-insured group, or "SIG," book of business within the Standard Insurance Operations segment. We decided to opportunistically sell this very small and specialized book of pooled business as a significant portion of the business was produced outside of our standard lines footprint, and proved difficult to grow. As this was a renewal rights sale, we will continue to service policies that were in force at the date of the sale. We continue to remain active in the municipal and public school marketplace for individual risks that procure traditional insurance programs rather than pooling arrangements. The proceeds from this sale, which amounted to $8 million, are included in "Miscellaneous income" within the table below as a component of the Standard Insurance Operations revenue.

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 March 31,
($ in thousands)
 
2014
 
2013
Standard Insurance Operations:
 
 

 
 

Net premiums earned:
 
 

 
 

Commercial automobile
 
$
82,216

 
74,347

Workers compensation
 
69,413

 
66,084

General liability
 
108,818

 
97,703

Commercial property
 
60,186

 
53,415

Businessowners’ policies
 
20,869

 
18,540

Bonds
 
4,756

 
4,764

Other
 
3,183

 
2,992

Total Standard Commercial Lines
 
349,441

 
317,845

Personal automobile
 
38,226

 
38,393

Homeowners
 
33,298

 
31,135

Other
 
3,294

 
3,508

Total Standard Personal Lines
 
74,818

 
73,036

Total Standard Insurance Operations net premiums earned
 
424,259

 
390,881

Miscellaneous income
 
9,819

 
2,720

Total Standard Insurance Operations revenue
 
434,078

 
393,601

E&S Insurance Operations:
 
 
 
 
Net premiums earned
 
32,236

 
30,059

Investments:
 
 

 
 

Net investment income
 
35,534

 
32,870

Net realized investment gains
 
7,218

 
3,355

Total investment revenues
 
42,752

 
36,225

Total all segments
 
509,066

 
459,885

Other income
 
5

 
64

Total revenues from continuing operations
 
$
509,071

 
459,949

 
Income from Continuing Operations before Federal Income Tax
 
Quarter ended March 31,
($ in thousands)
 
2014
 
2013
Standard Insurance Operations:
 
 

 
 

Commercial Lines underwriting (loss) gain
 
$
(3,630
)
 
6,102

Personal Lines underwriting (loss) gain
 
(2,360
)
 
5,973

Total Standard Insurance Operations underwriting (loss) gain, before federal income tax
 
(5,990
)
 
12,075

GAAP combined ratio
 
101.4
%
 
96.9
%
Statutory combined ratio
 
101.1
%
 
96.8
%
 
 
 
 
 
E&S Insurance Operations:
 
 
 
 
Underwriting gain
 
975

 
86

GAAP combined ratio
 
97.0
%
 
99.7
%
Statutory combined ratio
 
97.9
%
 
98.2
%
 
 
 
 
 
Investments:
 
 

 
 

Net investment income
 
35,534

 
32,870

Net realized investment gains
 
7,218

 
3,355

Total investment income, before federal income tax
 
42,752

 
36,225

Tax on investment income
 
11,575

 
9,205

      Total investment income, after federal income tax

31,177


27,020


Reconciliation of Segment Results to Income from Continuing Operations,
before Federal Income Tax
 
Quarter ended March 31,
($ in thousands)
 
2014
 
2013
Standard Insurance Operations underwriting (loss) gain, before federal income tax
 
$
(5,990
)
 
12,075

E&S Insurance Operations underwriting gain, before federal income tax
 
975

 
86

Investment income, before federal income tax
 
42,752

 
36,225

Total all segments
 
37,737

 
48,386

Interest expense
 
(5,561
)
 
(5,831
)
General corporate and other expenses
 
(7,092
)
 
(13,687
)
Income from continuing operations, before federal income tax
 
$
25,084

 
28,868