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Segment Information
 9 Months Ended
Sep. 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 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
September 30,
 
Nine Months ended
September 30,
($ in thousands)
 
2014
 
2013
 
2014
 
2013
Standard Insurance Operations:
 
 

 
 

 
 
 
 
Net premiums earned:
 
 

 
 

 
 
 
 
Commercial automobile
 
$
83,536

 
79,138

 
249,224

 
230,191

Workers compensation
 
66,732

 
66,510

 
205,137

 
197,449

General liability
 
110,894

 
100,925

 
331,303

 
298,394

Commercial property
 
61,304

 
57,004

 
182,716

 
165,356

Businessowners’ policies
 
21,649

 
19,629

 
63,797

 
56,794

Bonds
 
4,791

 
4,705

 
14,281

 
14,244

Other
 
3,237

 
3,051

 
9,633

 
9,036

Total Standard Commercial Lines
 
352,143

 
330,962

 
1,056,091

 
971,464

Personal automobile
 
37,695

 
38,513

 
113,943

 
115,432

Homeowners
 
33,957

 
32,374

 
100,831

 
95,211

Other
 
2,725

 
3,827

 
8,965

 
10,655

Total Standard Personal Lines
 
74,377

 
74,714

 
223,739

 
221,298

Total Standard Insurance Operations net premiums earned
 
426,520

 
405,676

 
1,279,830

 
1,192,762

Miscellaneous income
 
3,196

 
3,342

 
14,923

 
9,590

Total Standard Insurance Operations revenue
 
429,716

 
409,018

 
1,294,753

 
1,202,352

E&S Insurance Operations:
 
 
 
 
 
 
 
 
Net premiums earned
 
36,119

 
31,892

 
102,929

 
91,998

Investments:
 
 

 
 

 
 

 
 

Net investment income
 
34,292

 
32,457

 
106,600

 
99,330

Net realized investment gains
 
15,231

 
13,431

 
26,988

 
21,940

Total investment revenues
 
49,523

 
45,888

 
133,588

 
121,270

Total all segments
 
515,358

 
486,798

 
1,531,270

 
1,415,620

Other income
 
—

 
15

 
8

 
87

Total revenues from continuing operations
 
$
515,358

 
486,813

 
1,531,278

 
1,415,707

 
Income from Continuing Operations before Federal Income Tax
 
Quarter ended September 30,
 
Nine Months ended September 30,
($ in thousands)
 
2014
 
2013
 
2014
 
2013
Standard Insurance Operations:
 
 

 
 

 
 
 
 
Commercial Lines underwriting gain
 
$
27,771

 
8,776

 
$
39,844

 
24,621

Personal Lines underwriting gain
 
8,037

 
1,362

 
95

 
4,360

Total Standard Insurance Operations underwriting gain, before federal income tax
 
35,808

 
10,138

 
39,939

 
28,981

GAAP combined ratio
 
91.6
%
 
97.5

 
96.9
%
 
97.6

Statutory combined ratio
 
90.5
%
 
96.0

 
96.3
%
 
96.6

 
 
 
 
 
 
 
 
 
E&S Insurance Operations:
 
 
 
 
 
 
 
 
Underwriting (loss) gain
 
(1,371
)
 
13

 
(433
)
 
(2,186
)
GAAP combined ratio
 
103.8
%
 
100.0

 
100.4
%
 
102.4

Statutory combined ratio
 
102.9
%
 
100.5

 
100.3
%
 
101.9

 
 
 
 
 
 
 
 
 
Investments:
 
 

 
 

 
 
 
 
Net investment income
 
34,292

 
32,457

 
106,600

 
99,330

Net realized investment gains
 
15,231

 
13,431

 
26,988

 
21,940

Total investment income, before federal income tax
 
49,523

 
45,888

 
133,588

 
121,270

Tax on investment income
 
13,858

 
12,648

 
36,374

 
31,960

      Total investment income, after federal income tax

35,665


33,240

 
97,214

 
89,310


Reconciliation of Segment Results to Income from Continuing Operations,
before Federal Income Tax
 
Quarter ended
September 30,
 
Nine Months ended
September 30,
($ in thousands)
 
2014
 
2013
 
2014
 
2013
Standard Insurance Operations underwriting gain, before federal income tax
 
$
35,808

 
10,138

 
$
39,939

 
28,981

E&S Insurance Operations underwriting (loss) gain, before federal income tax
 
(1,371
)
 
13

 
(433
)
 
(2,186
)
Investment income, before federal income tax
 
49,523

 
45,888

 
133,588

 
121,270

Total all segments
 
83,960

 
56,039

 
173,094

 
148,065

Interest expense
 
(5,558
)
 
(5,570
)
 
(16,544
)
 
(16,971
)
General corporate and other expenses
 
(3,076
)
 
(5,984
)
 
(16,619
)
 
(21,540
)
Income from continuing operations, before federal income tax
 
$
75,326

 
44,485


$
139,931

 
109,554