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Segment Information | 9 Months Ended
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Sep. 30, 2016
Segment Reporting [Abstract] |
Segment Information | Segment Information We classify our business into four reportable segments, which are as follows:
• | Standard Commercial Lines - comprised of insurance products and services provided in the standard marketplace to
commercial enterprises, which 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 our earnings and amounts generated through our capital management strategies, which may include the issuance of debt and equity securities.
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 (net investment income and net realized gains on investments in the case of the Investments segment) and pre-tax income for the individual segments:
Revenue by Segment |  | Quarter ended September 30, |  | Nine Months ended September 30,
($ in thousands) |  | 2016 |  | 2015 |  | 2016 |  | 2015
Standard Commercial Lines: |  |  |  |  |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |  |  |  |  |
Commercial automobile |  | $ | 100,612 |  |  | 90,758 |  |  | 294,927 |  |  | 265,771 |
Workers compensation |  | 78,596 |  |  | 74,560 |  |  | 229,847 |  |  | 213,991 |
General liability |  | 133,981 |  |  | 123,252 |  |  | 391,349 |  |  | 357,430 |
Commercial property |  | 74,052 |  |  | 68,587 |  |  | 217,821 |  |  | 199,699 |
Businessowners’ policies |  | 24,461 |  |  | 23,726 |  |  | 73,016 |  |  | 69,603 |
Bonds |  | 5,795 |  |  | 5,031 |  |  | 16,924 |  |  | 15,137 |
Other |  | 4,089 |  |  | 3,628 |  |  | 11,868 |  |  | 10,649 |
Miscellaneous income |  | 1,925 |  |  | 448 |  |  | 6,182 |  |  | 4,680 |
Total Standard Commercial Lines revenue |  | 423,511 |  |  | 389,990 |  |  | 1,241,934 |  |  | 1,136,960 |
Standard Personal Lines: |  |  |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |  |  |
Personal automobile |  | 34,865 |  |  | 36,623 |  |  | 106,526 |  |  | 110,373 |
Homeowners |  | 32,031 |  |  | 33,670 |  |  | 98,342 |  |  | 101,122 |
Other |  | 1,794 |  |  | 1,795 |  |  | 4,851 |  |  | 5,143 |
Miscellaneous income |  | 275 |  |  | 250 |  |  | 836 |  |  | 841 |
Total Standard Personal Lines revenue |  | 68,965 |  |  | 72,338 |  |  | 210,555 |  |  | 217,479 |
E&S Lines: |  |  |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |  |  |
General liability |  | 37,398 |  |  | 32,395 |  |  | 108,372 |  |  | 87,914 |
Commercial property |  | 11,853 |  |  | 11,309 |  |  | 35,013 |  |  | 31,428 |
Commercial automobile |  | 2,902 |  |  | 2,056 |  |  | 7,963 |  |  | 5,562 |
Miscellaneous income |  | (1 | ) |  | — |  |  | — |  |  | — |
Total E&S Lines revenue |  | 52,152 |  |  | 45,760 |  |  | 151,348 |  |  | 124,904 |
Investments: |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  | 33,375 |  |  | 32,061 |  |  | 95,326 |  |  | 91,208 |
Net realized investment gains |  | 3,688 |  |  | 308 |  |  | 2,749 |  |  | 15,771 |
Total Investments revenue |  | 37,063 |  |  | 32,369 |  |  | 98,075 |  |  | 106,979 |
Total revenues |  | $ | 581,691 |  |  | 540,457 |  |  | 1,701,912 |  |  | 1,586,322 |
Income Before Federal Income Tax |  | Quarter ended September 30, |  | Nine Months ended September 30,
($ in thousands) |  | 2016 |  | 2015 |  | 2016 |  | 2015
Standard Commercial Lines: |  |  |  |  |  |  |  |  |  |
Underwriting gain |  | $ | 30,124 |  |  | 44,027 |  |  | 101,229 |  |  | 109,304 |
GAAP combined ratio |  | 92.9 | % |  | 88.7 |  |  | 91.8 |  |  | 90.3 |
Statutory combined ratio |  | 92.0 |  |  | 88.4 |  |  | 90.1 |  |  | 89.4 |
Standard Personal Lines: |  |  |  |  |  |  |  |
Underwriting gain (loss) |  | $ | 4,271 |  |  | 2,826 |  |  | 19,001 |  |  | (4,295 | )
GAAP combined ratio |  | 93.8 | % |  | 96.1 |  |  | 90.9 |  |  | 102.0 |
Statutory combined ratio |  | 92.0 |  |  | 95.0 |  |  | 90.7 |  |  | 101.7 |
E&S Insurance Operations: |  |  |  |  |  |  |  |
Underwriting loss |  | $ | (2,362 | ) |  | (2,022 | ) |  | (3,465 | ) |  | (5,033 | )
GAAP combined ratio |  | 104.5 | % |  | 104.4 |  |  | 102.3 |  |  | 104.0 |
Statutory combined ratio |  | 101.4 |  |  | 101.1 |  |  | 100.9 |  |  | 101.8 |
Investments: |  |  |  |  |  |  |  |  |  |
Net investment income |  | $ | 33,375 |  |  | 32,061 |  |  | 95,326 |  |  | 91,208 |
Net realized investment gains |  | 3,688 |  |  | 308 |  |  | 2,749 |  |  | 15,771 |
Total investment income, before federal income tax |  | 37,063 |  |  | 32,369 |  |  | 98,075 |  |  | 106,979 |
Tax on investment income |  | 9,752 |  |  | 7,614 |  |  | 24,290 |  |  | 26,186 |
Total investment income, after federal income tax |  | $ | 27,311 |  |  | 24,755 |  |  | 73,785 |  |  | 80,793 |
Reconciliation of Segment Results to Income Before Federal Income Tax |  | Quarter ended September 30, |  | Nine Months ended September 30,
($ in thousands) |  | 2016 |  | 2015 |  | 2016 |  | 2015
Underwriting gain (loss), before federal income tax |  |  |  |  |  |  |  |
Standard Commercial Lines |  | $ | 30,124 |  |  | 44,027 |  |  | 101,229 |  |  | 109,304 |
Standard Personal Lines |  | 4,271 |  |  | 2,826 |  |  | 19,001 |  |  | (4,295 | )
E&S Lines |  | (2,362 | ) |  | (2,022 | ) |  | (3,465 | ) |  | (5,033 | )
Investment income, before federal income tax |  | 37,063 |  |  | 32,369 |  |  | 98,075 |  |  | 106,979 |
Total all segments |  | 69,096 |  |  | 77,200 |  |  | 214,840 |  |  | 206,955 |
Interest expense |  | (5,714 | ) |  | (5,610 | ) |  | (16,940 | ) |  | (16,826 | )
General corporate and other expenses |  | (7,939 | ) |  | (5,751 | ) |  | (28,271 | ) |  | (21,235 | )
Income before federal income tax |  | $ | 55,443 |  |  | 65,839 |  |  | 169,629 |  |  | 168,894 |

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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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&loc=d3e8906-108599 + Details
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