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Segment Information | 12 Months Ended
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Dec. 31, 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 E&S Lines are evaluated based on before and after-tax underwriting results (net premiums earned, incurred loss and loss expense, policyholders dividends, policy acquisition costs, and other underwriting expenses), and 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 corporate expenses. We do not maintain separate investment portfolios for the segments and therefore, do not allocate assets to the segments. Our combined insurance operations are subject to certain geographic concentrations, particularly in the Northeast and Mid-Atlantic regions of the country. In 2017, approximately 20% of NPW were related to insurance policies written in New Jersey. The goodwill balance of $7.8 million at both December 31, 2017 and 2016 relates to our Standard Commercial Lines reporting unit. The following summaries present revenues (net investment income and net realized gains on investments in the case of the Investments segment) and pre-tax income for the individual segments:
Revenue by Segment |  | Years ended December 31,
($ in thousands) |  | 2017 |  | 2016 |  | 2015
Standard Commercial Lines: |  |  |  |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |  |  |  |
Commercial automobile |  | $ | 442,818 |  |  | 398,942 |  |  | 358,909 |
Workers compensation |  | 317,982 |  |  | 308,233 |  |  | 290,075 |
General liability |  | 569,217 |  |  | 527,859 |  |  | 483,291 |
Commercial property |  | 311,932 |  |  | 293,438 |  |  | 269,022 |
Businessowners’ policies |  | 100,266 |  |  | 97,754 |  |  | 93,428 |
Bonds |  | 29,086 |  |  | 23,227 |  |  | 20,350 |
Other |  | 17,198 |  |  | 16,030 |  |  | 14,367 |
Miscellaneous income |  | 9,488 |  |  | 7,782 |  |  | 6,343 |
Total Standard Commercial Lines revenue |  | 1,797,987 |  |  | 1,673,265 |  |  | 1,535,785 |
Standard Personal Lines: |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |
Personal automobile |  | 153,147 |  |  | 142,876 |  |  | 146,784 |
Homeowners |  | 129,699 |  |  | 130,973 |  |  | 134,382 |
Other |  | 6,855 |  |  | 6,758 |  |  | 6,968 |
Miscellaneous income |  | 1,228 |  |  | 1,098 |  |  | 1,113 |
Total Standard Personal Lines revenue |  | 290,929 |  |  | 281,705 |  |  | 289,247 |
E&S Lines: |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |
Casualty lines |  | 157,366 |  |  | 151,638 |  |  | 126,064 |
Property lines |  | 55,461 |  |  | 51,844 |  |  | 46,269 |
Miscellaneous income |  | — |  |  | 1 |  |  | — |
Total E&S Lines revenue |  | 212,827 |  |  | 203,483 |  |  | 172,333 |
Investments: |  |  |  |  |  |  |  |  |
Net investment income |  | 161,882 |  |  | 130,754 |  |  | 121,316 |
Net realized investment gains (losses) |  | 6,359 |  |  | (4,937 | ) |  | 13,171 |
Total Investments revenues |  | 168,241 |  |  | 125,817 |  |  | 134,487 |
Total revenues |  | $ | 2,469,984 |  |  | 2,284,270 |  |  | 2,131,852 |
Income Before Federal Income Tax |  | Years ended December 31,
($ in thousands) |  | 2017 |  | 2016 |  | 2015
Standard Commercial Lines: |  |  |  |  |  |  |  |  |
Underwriting gain, before federal income tax |  | $ | 149,514 |  |  | 146,435 |  |  | 164,496 |
Underwriting gain, after federal income tax |  | 97,184 |  |  | 95,183 |  |  | 106,923 |
Combined ratio |  | 91.6 | % |  | 91.2 | % |  | 89.2 | %
Standard Personal Lines: |  |  |  |  |  |
Underwriting gain, before federal income tax |  | 11,104 |  |  | 12,419 |  |  | 1,336 |
Underwriting gain, after federal income tax |  | 7,217 |  |  | 8,072 |  |  | 868 |
Combined ratio |  | 96.2 | % |  | 95.6 | % |  | 99.5 | %
E&S Lines: |  |  |  |  |  |
Underwriting loss, before federal income tax |  | (6,282 | ) |  | (6,921 | ) |  | (16,803 | )
Underwriting loss, after federal income tax |  | (4,083 | ) |  | (4,499 | ) |  | (10,922 | )
Combined ratio |  | 103.0 | % |  | 103.4 | % |  | 109.8 | %
Investments: |  |  |  |  |  |  |  |  |
Net investment income |  | $ | 161,882 |  |  | 130,754 |  |  | 121,316 |
Net realized investment gains (losses) |  | 6,359 |  |  | (4,937 | ) |  | 13,171 |
Total investment income, before federal income tax |  | 168,241 |  |  | 125,817 |  |  | 134,487 |
Tax on investment income |  | 45,588 |  |  | 30,621 |  |  | 32,090 |
Total investment income, after federal income tax |  | $ | 122,653 |  |  | 95,196 |  |  | 102,397 |
Reconciliation of Segment Results to Income Before Federal Income Tax |  | Years ended December 31,
($ in thousands) |  | 2017 |  | 2016 |  | 2015
Underwriting gain (loss) |  |  |  |  |  |
Standard Commercial Lines |  | $ | 149,514 |  |  | 146,435 |  |  | 164,496 |
Standard Personal Lines |  | 11,104 |  |  | 12,419 |  |  | 1,336 |
E&S Lines |  | (6,282 | ) |  | (6,921 | ) |  | (16,803 | )
Investment income |  | 168,241 |  |  | 125,817 |  |  | 134,487 |
Total all segments |  | 322,577 |  |  | 277,750 |  |  | 283,516 |
Interest expense |  | (24,354 | ) |  | (22,771 | ) |  | (22,428 | )
Corporate expenses |  | (36,255 | ) |  | (35,024 | ) |  | (28,396 | )
Income, before federal income tax |  | $ | 261,968 |  |  | 219,955 |  |  | 232,692 |

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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 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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