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Segment Information | 12 Months Ended
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Dec. 31, 2015
Segment Reporting [Abstract] |
Segment Information | Segment Information We classify our business into four reportable segments:
• | Standard Commercial Lines - comprised of insurance products and services provided in the standard marketplace to our commercial customers, who are typically businesses, non-profit organizations, and local government agencies.
• | Standard Personal Lines - comprised of insurance products and services, including flood insurance coverage, provided primarily to individuals acquiring coverage in the standard marketplace.
• | E&S Lines - comprised of insurance products and services provided to customers who have not obtained coverage in the standard marketplace.
• | Investments - invests the premiums collected by our insurance operations, as well as amounts generated through our capital management strategies, which may include the issuance of debt and equity securities.
The disaggregated results of our four segments are used by senior management to manage our operations. These segments are evaluated as follows:
• | Standard Commercial Lines, Standard Personal Lines, and our E&S Lines 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.
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. Our combined insurance segments are subject to certain geographic concentrations, particularly in the Northeast and Mid-Atlantic regions of the country. In 2015, approximately 21% of NPW were related to insurance policies written in New Jersey. The goodwill balance of $7.8 million at both December 31, 2015 and 2014 relates to our Standard Commercial Lines reporting unit. The following summaries present revenues from continuing operations (net investment income and net realized gains on investments in the case of the Investments segment) and pre-tax income from continuing operations for the individual segments:
Revenue by Segment |  |  |  |  |  |
Years ended December 31, |  |  |  |  |  |
($ in thousands) |  | 2015 |  | 2014 |  | 2013
Standard Commercial Lines: |  |  |  |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |  |  |  |
Commercial automobile |  | $ | 358,909 |  |  | 333,310 |  |  | 310,994 |
Workers compensation |  | 290,075 |  |  | 274,585 |  |  | 267,612 |
General liability |  | 483,291 |  |  | 444,938 |  |  | 405,322 |
Commercial property |  | 269,022 |  |  | 244,792 |  |  | 224,412 |
Businessowners’ policies |  | 93,428 |  |  | 85,788 |  |  | 77,097 |
Bonds |  | 20,350 |  |  | 19,288 |  |  | 19,000 |
Other |  | 14,367 |  |  | 13,011 |  |  | 12,182 |
Miscellaneous income |  | 6,343 |  |  | 14,747 |  |  | 10,253 |
Total Standard Commercial Lines revenue |  | 1,535,785 |  |  | 1,430,459 |  |  | 1,326,872 |
Standard Personal Lines: |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |
Personal automobile |  | 146,784 |  |  | 151,317 |  |  | 152,005 |
Homeowners |  | 134,382 |  |  | 134,273 |  |  | 127,991 |
Other |  | 6,968 |  |  | 11,157 |  |  | 14,336 |
Miscellaneous income |  | 1,113 |  |  | 1,834 |  |  | 1,948 |
Total Standard Personal Lines revenue |  | 289,247 |  |  | 298,581 |  |  | 296,280 |
E&S Lines: |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |
General liability |  | 121,802 |  |  | 96,142 |  |  | 88,761 |
Commercial property |  | 42,736 |  |  | 38,572 |  |  | 32,054 |
Commercial automobile |  | 7,795 |  |  | 5,436 |  |  | 4,306 |
Miscellaneous income |  | — |  |  | 17 |  |  | — |
Total E&S Lines revenue |  | 172,333 |  |  | 140,167 |  |  | 125,121 |
Investments: |  |  |  |  |  |  |  |  |
Net investment income |  | 121,316 |  |  | 138,708 |  |  | 134,643 |
Net realized investment gains |  | 13,171 |  |  | 26,599 |  |  | 20,732 |
Total investment revenues |  | 134,487 |  |  | 165,307 |  |  | 155,375 |
Total all segments |  | 2,131,852 |  |  | 2,034,514 |  |  | 1,903,648 |
Other income |  | — |  |  | 347 |  |  | 93 |
Total revenues |  | $ | 2,131,852 |  |  | 2,034,861 |  |  | 1,903,741 |
Income from Continuing Operations before Federal Income Tax |  |  |  |  |  |
Years ended December 31, |  |  |  |  |  |
($ in thousands) |  | 2015 |  | 2014 |  | 2013
Standard Commercial Lines: |  |  |  |  |  |  |  |  |
Underwriting gain, before federal income tax |  | $ | 164,496 |  |  | 61,221 |  |  | 33,856 |
GAAP combined ratio |  | 89.2 | % |  | 95.7 | % |  | 97.4 | %
Statutory combined ratio |  | 89.2 | % |  | 95.5 | % |  | 97.1 | %
Standard Personal Lines: |  |  |  |  |  |
Underwriting gain, before federal income tax |  | 1,336 |  |  | 16,536 |  |  | 8,645 |
GAAP combined ratio |  | 99.5 | % |  | 94.4 | % |  | 97.1 | %
Statutory combined ratio |  | 99.9 | % |  | 94.5 | % |  | 96.9 | %
E&S Lines: |  |  |  |  |  |
Underwriting (loss) gain, before federal income tax |  | (16,803 | ) |  | 386 |  |  | (3,735 | )
GAAP combined ratio |  | 109.8 | % |  | 99.7 | % |  | 103.0 | %
Statutory combined ratio |  | 108.4 | % |  | 99.2 | % |  | 102.9 | %
Investments: |  |  |  |  |  |  |  |  |
Net investment income |  | $ | 121,316 |  |  | 138,708 |  |  | 134,643 |
Net realized investment gains |  | 13,171 |  |  | 26,599 |  |  | 20,732 |
Total investment income, before federal income tax |  | 134,487 |  |  | 165,307 |  |  | 155,375 |
Tax on investment income |  | 32,090 |  |  | 43,811 |  |  | 40,489 |
Total investment income, after federal income tax |  | $ | 102,397 |  |  | 121,496 |  |  | 114,886 |
Reconciliation of Segment Results to Income from Continuing Operations, before Federal Income Tax |  |  |  |  |  |
Years ended December 31, |  |  |  |  |  |
($ in thousands) |  | 2015 |  | 2014 |  | 2013
Underwriting gain (loss), before federal income tax |  |  |  |  |  |
Standard Commercial Lines |  | $ | 164,496 |  |  | 61,221 |  |  | 33,856 |
Standard Personal Lines |  | 1,336 |  |  | 16,536 |  |  | 8,645 |
E&S Lines |  | (16,803 | ) |  | 386 |  |  | (3,735 | )
Investment income, before federal income tax |  | 134,487 |  |  | 165,307 |  |  | 155,375 |
Total all segments |  | 283,516 |  |  | 243,450 |  |  | 194,141 |
Interest expense |  | (22,428 | ) |  | (23,063 | ) |  | (26,361 | )
General corporate and other expenses |  | (28,396 | ) |  | (23,256 | ) |  | (23,978 | )
Income from continuing operations, before federal income tax |  | $ | 232,692 |  |  | 197,131 |  |  | 143,802 |

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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 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: 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=51669610&loc=d3e9038-108599 Reference 3: 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=51669610&loc=d3e8971-108599 Reference 4: 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=51669610&loc=d3e8595-108599 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=51669610&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 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: 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=51669610&loc=d3e8844-108599 Reference 8: 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=51669610&loc=d3e8984-108599 Reference 9: 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=51669610&loc=d3e9031-108599 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=51669610&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 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: 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=51669610&loc=d3e8864-108599 Reference 13: 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=51669610&loc=d3e8924-108599 Reference 14: 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=51669610&loc=d3e8906-108599 + Details
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