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), return on equity ("ROE") contribution, and combined ratios.


•	Our Investments segment is evaluated based on after-tax net investment income and its ROE contribution, as well as after-tax net realized and unrealized 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 2018, approximately 19% of NPW were related to insurance policies written in New Jersey.

We had a goodwill balance of $7.8 million at both December 31, 2018 and 2017 on our Consolidated Balance Sheet that 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)	2018			2017	2016
Standard Commercial Lines:
Net premiums earned:
Commercial automobile	$	493,093		442,818	398,942
Workers compensation	317,616			317,982	308,233
General liability	616,187			569,217	527,859
Commercial property	329,660			311,932	293,438
Businessowners’ policies	103,412			100,266	97,754
Bonds	33,991			29,086	23,227
Other	18,263			17,198	16,030
Miscellaneous income	8,180			9,488	7,782
Total Standard Commercial Lines revenue	1,920,402			1,797,987	1,673,265
Standard Personal Lines:
Net premiums earned:
Personal automobile	168,250			153,147	142,876
Homeowners	128,961			129,699	130,973
Other	7,230			6,855	6,758
Miscellaneous income	1,257			1,228	1,098
Total Standard Personal Lines revenue	305,698			290,929	281,705
E&S Lines:
Net premiums earned:
Casualty lines	164,313			157,366	151,638
Property lines	55,253			55,461	51,844
Miscellaneous income	1			—	1
Total E&S Lines revenue	219,567			212,827	203,483
Investments:
Net investment income	195,336			161,882	130,754
Net realized and unrealized investment (losses) gains	(54,923		)	6,359	(4,937	)
Total Investments revenues	140,413			168,241	125,817
Total revenues	$	2,586,080		2,469,984	2,284,270



Income Before and After Federal Income Tax	Years ended December 31,
($ in thousands)	2018			2017		2016
Standard Commercial Lines:
Underwriting gain, before federal income tax	$	109,104		149,514		146,435
Underwriting gain, after federal income tax	86,192			97,184		95,183
Combined ratio	94.3		%	91.6	%	91.2	%
ROE contribution	4.9		%	6.1		6.4

Standard Personal Lines:
Underwriting gain, before federal income tax	12,764			11,104		12,419
Underwriting gain, after federal income tax	10,084			7,217		8,072
Combined ratio	95.8		%	96.2	%	95.6	%
ROE contribution	0.6		%	0.4		0.6

E&S Lines:
Underwriting loss, before federal income tax	(695		)	(6,282	)	(6,921	)
Underwriting loss, after federal income tax	(549		)	(4,083	)	(4,499	)
Combined ratio	100.3		%	103.0	%	103.4	%
ROE contribution	—		%	(0.3	)	(0.3	)

Investments:
Net investment income	$	195,336		161,882		130,754
Net realized and unrealized investment (losses) gains	(54,923		)	6,359		(4,937	)
Total investment income, before federal income tax	140,413			168,241		125,817
Tax on investment income	19,560			45,588		30,621
Total investment income, after federal income tax	$	120,853		122,653		95,196
ROE contribution of after-tax net investment income	6.9		%	7.5		6.5



Reconciliation of Segment Results to Income Before Federal Income Tax	Years ended December 31,
($ in thousands)	2018			2017		2016
Underwriting gain (loss)
Standard Commercial Lines	$	109,104		149,514		146,435
Standard Personal Lines	12,764			11,104		12,419
E&S Lines	(695		)	(6,282	)	(6,921	)
Investment income	140,413			168,241		125,817
Total all segments	261,586			322,577		277,750
Interest expense	(24,419		)	(24,354	)	(22,771	)
Corporate expenses	(25,446		)	(36,255	)	(35,024	)
Income, before federal income tax	$	211,721		261,968		219,955