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Segment Information
 6 Months Ended
Jun. 30, 2017
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 Excess and Surplus ("E&S") Lines are evaluated based on statutory underwriting results (net premiums earned, incurred losses and loss expenses, policyholder 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; however, we do partially allocate taxes to various segments. Furthermore, 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 June 30,
 
Six Months ended June 30,
($ in thousands)
 
2017
 
2016
 
2017
 
2016
Standard Commercial Lines:
 
 

 
 

 
 
 
 
Net premiums earned:
 
 

 
 

 
 
 
 
Commercial automobile
 
$
108,316

 
98,896

 
215,445

 
194,315

Workers compensation
 
79,460

 
75,251

 
158,786

 
151,251

General liability
 
141,503

 
129,283

 
281,487

 
257,368

Commercial property
 
78,052

 
73,591

 
154,443

 
143,769

Businessowners’ policies
 
24,989

 
24,651

 
49,834

 
48,555

Bonds
 
6,986

 
5,665

 
13,484

 
11,129

Other
 
4,288

 
3,940

 
8,529

 
7,779

Miscellaneous income
 
3,016

 
3,567

 
5,876

 
4,257

Total Standard Commercial Lines revenue
 
446,610

 
414,844

 
887,884

 
818,423

Standard Personal Lines:
 
 
 
 
 
 
 
 
Net premiums earned:
 
 
 
 
 
 
 
 
Personal automobile
 
37,663

 
35,881

 
74,613

 
71,661

Homeowners
 
32,467

 
33,411

 
65,167

 
66,311

Other
 
1,542

 
1,532

 
3,093

 
3,057

Miscellaneous income
 
275

 
301

 
656

 
561

Total Standard Personal Lines revenue
 
71,947

 
71,125

 
143,529

 
141,590

E&S Lines:
 
 
 
 
 
 
 
 
Net premiums earned:
 
 
 
 
 
 
 
 
Commercial liability
 
39,054

 
36,940

 
76,966

 
73,796

Commercial property
 
13,710

 
12,891

 
27,037

 
25,399

Miscellaneous income
 
—

 
—

 
—

 
1

Total E&S Lines revenue
 
52,764

 
49,831

 
104,003

 
99,196

Investments:
 
 

 
 

 
 

 
 

Net investment income
 
41,430

 
31,182

 
78,849

 
61,951

Net realized investment gains (losses)
 
1,734

 
1,765

 
689

 
(939
)
Total Investments revenue
 
43,164

 
32,947

 
79,538

 
61,012

Total revenues
 
$
614,485

 
568,747

 
1,214,954

 
1,120,221

Income Before Federal Income Tax
 
Quarter ended June 30,
 
Six Months ended June 30,
($ in thousands)
 
2017
 
2016
 
2017
 
2016
Standard Commercial Lines:
 
 

 
 

 
 
 
 
Underwriting gain
 
$
34,759

 
40,173

 
77,305

 
71,105

GAAP combined ratio
 
92.2
%
 
90.2

 
91.2

 
91.3

Statutory combined ratio
 
90.6

 
88.6

 
89.5

 
89.1

 
 
 
 


 


 


Standard Personal Lines:
 
 
 
 
 
 
 
 
Underwriting (loss) gain
 
$
(5,768
)
 
6,125

 
(662
)
 
14,730

GAAP combined ratio
 
108.0
%
 
91.4

 
100.5

 
89.6

Statutory combined ratio
 
105.9

 
89.9

 
99.8

 
90.1

 
 
 
 
 
 
 
 
 
E&S Lines:
 
 
 
 
 
 
 
 
Underwriting gain (loss)
 
$
1,319

 
(2,521
)
 
2,889

 
(1,103
)
GAAP combined ratio
 
97.5
%
 
105.1

 
97.2

 
101.1

Statutory combined ratio
 
97.0

 
102.7

 
96.5

 
100.6

 
 
 
 
 
 
 
 
 
Investments:
 
 

 
 

 
 
 
 
Net investment income
 
$
41,430

 
31,182

 
78,849

 
61,951

Net realized investment losses
 
1,734

 
1,765

 
689

 
(939
)
Total investment income, before federal income tax
 
43,164

 
32,947

 
79,538

 
61,012

Tax on investment income
 
11,734

 
8,275

 
21,336

 
14,538

      Total investment income, after federal income tax

$
31,430


24,672

 
58,202

 
46,474


Reconciliation of Segment Results to Income
Before Federal Income Tax
 
Quarter ended June 30,
 
Six Months ended June 30,
($ in thousands)
 
2017
 
2016
 
2017
 
2016
Underwriting gain (loss), before federal income tax
 
 
 
 
 
 
 
 
Standard Commercial Lines
 
$
34,759

 
40,173

 
77,305

 
71,105

Standard Personal Lines
 
(5,768
)
 
6,125

 
(662
)
 
14,730

E&S Lines
 
1,319

 
(2,521
)
 
2,889

 
(1,103
)
Investment income, before federal income tax
 
43,164

 
32,947

 
79,538

 
61,012

Total all segments
 
73,474

 
76,724

 
159,070

 
145,744

Interest expense
 
(6,081
)
 
(5,620
)
 
(12,187
)
 
(11,226
)
General corporate and other expenses
 
(8,464
)
 
(8,793
)
 
(20,380
)
 
(20,332
)
Income, before federal income tax
 
$
58,929

 
62,311


126,503

 
114,186