XML 106 R19.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2019
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), return on equity ("ROE") contribution, and combined ratios.
• | Our Investments segment is evaluated based on after-tax net investment income and its ROE contribution. Also included in our Investment segment results are after-tax net realized and unrealized gains and losses, which are not included in non-GAAP operating income.
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 Eastern region of the country. In 2019, approximately 19% of NPW were related to insurance policies written in New Jersey. We had a goodwill balance of $7.8 million at both December 31, 2019 and 2018 on our Consolidated Balance Sheet that relates to our Standard Commercial Lines reporting unit. The following summaries present revenues (net investment income and net realized and unrealized gains and losses on investments in the case of the Investments segment) and pre-tax income for the individual segments:
Revenue by Segment |  | Years ended December 31,
($ in thousands) |  | 2019 |  | 2018 |  | 2017
Standard Commercial Lines: |  |  |  |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |  |  |  |
Commercial automobile |  | $ | 554,256 |  |  | 493,093 |  |  | 442,818 |
Workers compensation |  | 311,370 |  |  | 317,616 |  |  | 317,982 |
General liability |  | 669,895 |  |  | 616,187 |  |  | 569,217 |
Commercial property |  | 353,834 |  |  | 329,660 |  |  | 311,932 |
Businessowners’ policies |  | 105,252 |  |  | 103,412 |  |  | 100,266 |
Bonds |  | 35,726 |  |  | 33,991 |  |  | 29,086 |
Other |  | 19,281 |  |  | 18,263 |  |  | 17,198 |
Miscellaneous income |  | 10,889 |  |  | 8,180 |  |  | 9,488 |
Total Standard Commercial Lines revenue |  | 2,060,503 |  |  | 1,920,402 |  |  | 1,797,987 |
Standard Personal Lines: |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |
Personal automobile |  | 172,606 |  |  | 168,250 |  |  | 153,147 |
Homeowners |  | 127,543 |  |  | 128,961 |  |  | 129,699 |
Other |  | 7,590 |  |  | 7,230 |  |  | 6,855 |
Miscellaneous income |  | 1,466 |  |  | 1,257 |  |  | 1,228 |
Total Standard Personal Lines revenue |  | 309,205 |  |  | 305,698 |  |  | 290,929 |
E&S Lines: |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |
Casualty lines |  | 182,864 |  |  | 164,313 |  |  | 157,366 |
Property lines |  | 56,954 |  |  | 55,253 |  |  | 55,461 |
Miscellaneous income |  | — |  |  | 1 |  |  | — |
Total E&S Lines revenue |  | 239,818 |  |  | 219,567 |  |  | 212,827 |
Investments: |  |  |  |  |  |  |  |  |
Net investment income |  | 222,543 |  |  | 195,336 |  |  | 161,882 |
Net realized and unrealized investment gains (losses) |  | 14,422 |  |  | (54,923 | ) |  | 6,359 |
Total Investments revenues |  | 236,965 |  |  | 140,413 |  |  | 168,241 |
Total revenues |  | $ | 2,846,491 |  |  | 2,586,080 |  |  | 2,469,984 |
Income Before and After Federal Income Tax |  | Years ended December 31,
($ in thousands) |  | 2019 |  | 2018 |  | 2017
Standard Commercial Lines: |  |  |  |  |  |  |  |  |
Underwriting gain, before federal income tax |  | $ | 145,990 |  |  | 109,104 |  |  | 149,514 |
Underwriting gain, after federal income tax |  | 115,332 |  |  | 86,192 |  |  | 97,184 |
Combined ratio |  | 92.9 | % |  | 94.3 | % |  | 91.6 | %
ROE contribution |  | 5.8 | % |  | 4.9 |  |  | 6.1 |
Standard Personal Lines: |  |  |  |  |  |
Underwriting gain, before federal income tax |  | 8,260 |  |  | 12,764 |  |  | 11,104 |
Underwriting gain, after federal income tax |  | 6,525 |  |  | 10,084 |  |  | 7,217 |
Combined ratio |  | 97.3 | % |  | 95.8 | % |  | 96.2 | %
ROE contribution |  | 0.3 | % |  | 0.6 |  |  | 0.4 |
E&S Lines: |  |  |  |  |  |
Underwriting gain (loss), before federal income tax |  | 9,743 |  |  | (695 | ) |  | (6,282 | )
Underwriting gain (loss), after federal income tax |  | 7,697 |  |  | (549 | ) |  | (4,083 | )
Combined ratio |  | 95.9 | % |  | 100.3 | % |  | 103.0 | %
ROE contribution |  | 0.4 | % |  | — |  |  | (0.3 | )
Investments: |  |  |  |  |  |  |  |  |
Net investment income |  | $ | 222,543 |  |  | 195,336 |  |  | 161,882 |
Net realized and unrealized investment gains (losses) |  | 14,422 |  |  | (54,923 | ) |  | 6,359 |
Total investment segment income, before federal income tax |  | 236,965 |  |  | 140,413 |  |  | 168,241 |
Tax on investment segment income |  | 45,301 |  |  | 19,560 |  |  | 45,588 |
Total investment segment income, after federal income tax |  | $ | 191,664 |  |  | 120,853 |  |  | 122,653 |
ROE contribution of after-tax net investment income |  | 9.6 | % |  | 6.9 |  |  | 7.5 |
Reconciliation of Segment Results to Income Before Federal Income Tax |  | Years ended December 31,
($ in thousands) |  | 2019 |  | 2018 |  | 2017
Underwriting gain (loss) |  |  |  |  |  |
Standard Commercial Lines |  | $ | 145,990 |  |  | 109,104 |  |  | 149,514 |
Standard Personal Lines |  | 8,260 |  |  | 12,764 |  |  | 11,104 |
E&S Lines |  | 9,743 |  |  | (695 | ) |  | (6,282 | )
Investment income |  | 236,965 |  |  | 140,413 |  |  | 168,241 |
Total all segments |  | 400,958 |  |  | 261,586 |  |  | 322,577 |
Interest expense |  | (33,668 | ) |  | (24,419 | ) |  | (24,354 | )
Corporate expenses |  | (30,900 | ) |  | (25,446 | ) |  | (36,255 | )
Income, before federal income tax |  | $ | 336,390 |  |  | 211,721 |  |  | 261,968 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration