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Segment Information
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment Information
Segment Information
The disaggregated results of our four reportable segments are used by senior management to manage our operations. These reportable segments are evaluated as follows:

•
Our Standard Commercial Lines, Standard Personal Lines, and 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.

•
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 2016, approximately 20% of NPW were related to insurance policies written in New Jersey.
 
The goodwill balance of $7.8 million at both December 31, 2016 and 2015 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 for the individual segments:
Revenue by Segment
 
 
 
 
 
 
Years ended December 31,
 
 
 
 
 
 
($ in thousands)
 
2016
 
2015
 
2014
Standard Commercial Lines:
 
 

 
 

 
 

Net premiums earned:
 
 

 
 

 
 

Commercial automobile
 
$
398,942

 
358,909

 
333,310

Workers compensation
 
308,233

 
290,075

 
274,585

General liability
 
527,859

 
483,291

 
444,938

Commercial property
 
293,438

 
269,022

 
244,792

Businessowners’ policies
 
97,754

 
93,428

 
85,788

Bonds
 
23,227

 
20,350

 
19,288

Other
 
16,030

 
14,367

 
13,011

Miscellaneous income
 
7,782

 
6,343

 
14,747

Total Standard Commercial Lines revenue
 
1,673,265

 
1,535,785

 
1,430,459

Standard Personal Lines:
 
 
 
 
 
 
Net premiums earned:
 
 
 
 
 
 
Personal automobile
 
142,876

 
146,784

 
151,317

Homeowners
 
130,973

 
134,382

 
134,273

Other
 
6,758

 
6,968

 
11,157

Miscellaneous income
 
1,098

 
1,113

 
1,834

Total Standard Personal Lines revenue
 
281,705

 
289,247

 
298,581

E&S Lines:
 
 
 
 
 
 
Net premiums earned:
 
 
 
 
 
 
Commercial liability
 
151,638

 
126,064

 
99,086

Commercial property
 
51,844

 
46,269

 
41,064

Miscellaneous income
 
1

 
—

 
17

Total E&S Lines revenue
 
203,483

 
172,333

 
140,167

Investments:
 
 

 
 

 
 

Net investment income
 
130,754

 
121,316

 
138,708

Net realized investment (losses) gains
 
(4,937
)
 
13,171

 
26,599

Total investment revenues
 
125,817

 
134,487

 
165,307

Total all segments
 
2,284,270

 
2,131,852

 
2,034,514

Other income
 
—

 
—

 
347

Total revenues
 
$
2,284,270

 
2,131,852

 
2,034,861


Income before Federal Income Tax
 
 
 
 
 
 
Years ended December 31,
 
 
 
 
 
 
($ in thousands)
 
2016
 
2015
 
2014
Standard Commercial Lines:
 
 

 
 

 
 

Underwriting gain, before federal income tax
 
$
146,435

 
164,496

 
61,221

GAAP combined ratio
 
91.2
%
 
89.2
%
 
95.7
%
Statutory combined ratio
 
89.9
%
 
89.2
%
 
95.5
%
 
 
 
 
 
 
 
Standard Personal Lines:
 
 
 
 
 
 
Underwriting gain, before federal income tax
 
12,419

 
1,336

 
16,536

GAAP combined ratio
 
95.6
%
 
99.5
%
 
94.4
%
Statutory combined ratio
 
95.2
%
 
99.9
%
 
94.5
%
 
 
 
 
 
 
 
E&S Lines:
 
 
 
 
 
 
Underwriting (loss) gain, before federal income tax
 
(6,921
)
 
(16,803
)
 
386

GAAP combined ratio
 
103.4
%
 
109.8
%
 
99.7
%
Statutory combined ratio
 
102.1
%
 
108.4
%
 
99.2
%
 
 
 
 
 
 
 
Investments:
 
 

 
 

 
 

Net investment income
 
$
130,754

 
121,316

 
138,708

Net realized investment (losses) gains
 
(4,937
)
 
13,171

 
26,599

Total investment income, before federal income tax
 
125,817

 
134,487

 
165,307

Tax on investment income
 
30,621

 
32,090

 
43,811

Total investment income, after federal income tax
 
$
95,196

 
102,397

 
121,496


Reconciliation of Segment Results to Income before Federal Income Tax
 
 
 
 
 
 
Years ended December 31,
 
 
 
 
 
 
($ in thousands)
 
2016
 
2015
 
2014
Underwriting gain (loss), before federal income tax
 
 
 
 
 
 
     Standard Commercial Lines
 
$
146,435

 
164,496

 
61,221

     Standard Personal Lines
 
12,419

 
1,336

 
16,536

     E&S Lines
 
(6,921
)
 
(16,803
)
 
386

Investment income, before federal income tax
 
125,817

 
134,487

 
165,307

Total all segments
 
277,750

 
283,516

 
243,450

Interest expense
 
(22,771
)
 
(22,428
)
 
(23,063
)
General corporate and other expenses
 
(35,024
)
 
(28,396
)
 
(23,256
)
Income, before federal income tax
 
$
219,955

 
232,692

 
197,131