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Segment Information | 6 Months Ended
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Jun. 30, 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 the first quarter of 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 $8 million, are included in "Miscellaneous income" within the table below as a component of the Standard Insurance Operations revenue. The following summaries present revenues from continuing operations (net investment income and net realized gains on investments in the case of the Investments segment) and pre-tax income from continuing operations for the individual segments:
Revenue by Segment |  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2014 |  | 2013 |  | 2014 |  | 2013
Standard Insurance Operations: |  |  |  |  |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |  |  |  |  |
Commercial automobile |  | $ | 83,472 |  |  | 76,706 |  |  | 165,688 |  |  | 151,053 |
Workers compensation |  | 68,992 |  |  | 64,855 |  |  | 138,405 |  |  | 130,939 |
General liability |  | 111,591 |  |  | 99,766 |  |  | 220,409 |  |  | 197,469 |
Commercial property |  | 61,226 |  |  | 54,937 |  |  | 121,412 |  |  | 108,352 |
Businessowners’ policies |  | 21,279 |  |  | 18,625 |  |  | 42,148 |  |  | 37,165 |
Bonds |  | 4,734 |  |  | 4,775 |  |  | 9,490 |  |  | 9,539 |
Other |  | 3,213 |  |  | 2,993 |  |  | 6,396 |  |  | 5,985 |
Total Standard Commercial Lines |  | 354,507 |  |  | 322,657 |  |  | 703,948 |  |  | 640,502 |
Personal automobile |  | 38,022 |  |  | 38,526 |  |  | 76,248 |  |  | 76,919 |
Homeowners |  | 33,576 |  |  | 31,702 |  |  | 66,874 |  |  | 62,837 |
Other |  | 2,946 |  |  | 3,320 |  |  | 6,240 |  |  | 6,828 |
Total Standard Personal Lines |  | 74,544 |  |  | 73,548 |  |  | 149,362 |  |  | 146,584 |
Total Standard Insurance Operations net premiums earned |  | 429,051 |  |  | 396,205 |  |  | 853,310 |  |  | 787,086 |
Miscellaneous income |  | 1,908 |  |  | 3,528 |  |  | 11,727 |  |  | 6,248 |
Total Standard Insurance Operations revenue |  | 430,959 |  |  | 399,733 |  |  | 865,037 |  |  | 793,334 |
E&S Insurance Operations: |  |  |  |  |  |  |  |
Net premiums earned |  | 34,574 |  |  | 30,047 |  |  | 66,810 |  |  | 60,106 |
Investments: |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  | 36,774 |  |  | 34,003 |  |  | 72,308 |  |  | 66,873 |
Net realized investment gains |  | 4,539 |  |  | 5,154 |  |  | 11,757 |  |  | 8,509 |
Total investment revenues |  | 41,313 |  |  | 39,157 |  |  | 84,065 |  |  | 75,382 |
Total all segments |  | 506,846 |  |  | 468,937 |  |  | 1,015,912 |  |  | 928,822 |
Other income |  | 3 |  |  | 8 |  |  | 8 |  |  | 72 |
Total revenues from continuing operations |  | $ | 506,849 |  |  | 468,945 |  |  | 1,015,920 |  |  | 928,894 |
Income from Continuing Operations before Federal Income Tax |  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2014 |  | 2013 |  | 2014 |  | 2013
Standard Insurance Operations: |  |  |  |  |  |  |  |  |  |
Commercial Lines underwriting gain |  | $ | 15,703 |  |  | 9,743 |  |  | $ | 12,073 |  |  | 15,845 |
Personal Lines underwriting (loss) gain |  | (5,582 | ) |  | (2,975 | ) |  | (7,942 | ) |  | 2,998 |
Total Standard Insurance Operations underwriting gain, before federal income tax |  | 10,121 |  |  | 6,768 |  |  | 4,131 |  |  | 18,843 |
GAAP combined ratio |  | 97.6 | % |  | 98.3 |  |  | 99.5 | % |  | 97.6 |
Statutory combined ratio |  | 97.3 | % |  | 97.0 |  |  | 99.2 | % |  | 96.9 |
E&S Insurance Operations: |  |  |  |  |  |  |  |
Underwriting (loss) gain |  | (37 | ) |  | (2,285 | ) |  | 938 |  |  | (2,199 | )
GAAP combined ratio |  | 100.1 | % |  | 107.6 |  |  | 98.6 | % |  | 103.7 |
Statutory combined ratio |  | 99.9 | % |  | 106.8 |  |  | 98.8 | % |  | 102.6 |
Investments: |  |  |  |  |  |  |  |  |  |
Net investment income |  | 36,774 |  |  | 34,003 |  |  | 72,308 |  |  | 66,873 |
Net realized investment gains |  | 4,539 |  |  | 5,154 |  |  | 11,757 |  |  | 8,509 |
Total investment income, before federal income tax |  | 41,313 |  |  | 39,157 |  |  | 84,065 |  |  | 75,382 |
Tax on investment income |  | 10,941 |  |  | 10,107 |  |  | 22,516 |  |  | 19,312 |
Total investment income, after federal income tax |  | 30,372 |  |  | 29,050 |  |  | 61,549 |  |  | 56,070 |
Reconciliation of Segment Results to Income from Continuing Operations, before Federal Income Tax |  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2014 |  | 2013 |  | 2014 |  | 2013
Standard Insurance Operations underwriting gain, before federal income tax |  | $ | 10,121 |  |  | 6,768 |  |  | $ | 4,131 |  |  | 18,843 |
E&S Insurance Operations underwriting (loss) gain, before federal income tax |  | (37 | ) |  | (2,285 | ) |  | 938 |  |  | (2,199 | )
Investment income, before federal income tax |  | 41,313 |  |  | 39,157 |  |  | 84,065 |  |  | 75,382 |
Total all segments |  | 51,397 |  |  | 43,640 |  |  | 89,134 |  |  | 92,026 |
Interest expense |  | (5,425 | ) |  | (5,570 | ) |  | (10,986 | ) |  | (11,401 | )
General corporate and other expenses |  | (6,451 | ) |  | (1,869 | ) |  | (13,543 | ) |  | (15,556 | )
Income from continuing operations, before federal income tax |  | $ | 39,521 |  |  | 36,201 |  |  | $ | 64,605 |  |  | 65,069 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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