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Segment Information
 9 Months Ended
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