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Segment Information | 3 Months Ended
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Mar. 31, 2020
Segment Reporting [Abstract] |
Segment Information | Segment Information We evaluate the results of our four reportable segments as follows:
• | Our Standard Commercial Lines, Standard Personal Lines, and E&S Lines are evaluated on before and after-tax underwriting results (net premiums earned, incurred loss and loss expense, policyholder dividends, policy acquisition costs, and other underwriting expenses), return on equity ("ROE") contribution, and combined ratios.
• | Our Investments segment is primarily evaluated on after-tax net investment income and its ROE contribution. After-tax net realized and unrealized gains and losses, which are not included in non-GAAP operating income, are also included in our Investment segment results.
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 do not allocate assets to each segment. The following summaries present revenues (net investment income and net realized and unrealized gains on investments for the Investments segment) and pre-tax income for the individual segments:
Revenue by Segment |  | Quarter Ended March 31,
($ in thousands) |  | 2020 |  | 2019
Standard Commercial Lines: |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |
Commercial automobile |  | $ | 149,690 |  |  | 131,186 |
Workers compensation |  | 66,706 |  |  | 78,715 |
General liability |  | 164,580 |  |  | 161,525 |
Commercial property |  | 93,869 |  |  | 86,067 |
Businessowners’ policies |  | 27,036 |  |  | 26,081 |
Bonds |  | 9,639 |  |  | 8,904 |
Other |  | 5,060 |  |  | 4,706 |
Miscellaneous income |  | 1,391 |  |  | 2,044 |
Total Standard Commercial Lines revenue |  | 517,971 |  |  | 499,228 |
Standard Personal Lines: |  |  |  |
Net premiums earned: |  |  |  |
Personal automobile |  | 42,487 |  |  | 43,163 |
Homeowners |  | 31,490 |  |  | 32,130 |
Other |  | 2,151 |  |  | 2,014 |
Miscellaneous income |  | 434 |  |  | 276 |
Total Standard Personal Lines revenue |  | 76,562 |  |  | 77,583 |
E&S Lines: |  |  |  |
Net premiums earned: |  |  |  |
Casualty lines |  | 44,072 |  |  | 44,528 |
Property lines |  | 14,923 |  |  | 13,554 |
Miscellaneous income |  | — |  |  | — |
Total E&S Lines revenue |  | 58,995 |  |  | 58,082 |
Investments: |  |  |  |  |  |
Net investment income |  | 55,967 |  |  | 50,618 |
Net realized and unrealized investment (losses) gains |  | (44,666 | ) |  | 13,451 |
Total Investments revenue |  | 11,301 |  |  | 64,069 |
Total revenues |  | $ | 664,829 |  |  | 698,962 |
Income Before and After Federal Income Tax |  | Quarter Ended March 31,
($ in thousands) |  | 2020 |  | 2019
Standard Commercial Lines: |  |  |  |  |  |
Underwriting gain, before federal income tax |  | $ | 17,126 |  |  | 25,815 |
Underwriting gain, after federal income tax |  | 13,529 |  |  | 20,394 |
Combined ratio |  | 96.7 | % |  | 94.8 |
ROE contribution |  | 2.4 |  |  | 4.4 |
Standard Personal Lines: |  |  |  |
Underwriting gain, before federal income tax |  | $ | 387 |  |  | 3,167 |
Underwriting gain, after federal income tax |  | 306 |  |  | 2,502 |
Combined ratio |  | 99.5 | % |  | 95.9 |
ROE contribution |  | 0.1 |  |  | 0.5 |
E&S Lines: |  |  |  |
Underwriting gain, before federal income tax |  | $ | 3,844 |  |  | 4,579 |
Underwriting gain, after federal income tax |  | 3,037 |  |  | 3,617 |
Combined ratio |  | 93.5 | % |  | 92.1 |
ROE contribution |  | 0.6 |  |  | 0.8 |
Investments: |  |  |  |  |  |
Net investment income |  | $ | 55,967 |  |  | 50,618 |
Net realized and unrealized investment (losses) gains |  | (44,666 | ) |  | 13,451 |
Total investment segment income, before federal income tax |  | 11,301 |  |  | 64,069 |
Tax on investment segment income |  | 1,104 |  |  | 12,120 |
Total investment segment income, after federal income tax |  | $ | 10,197 |  |  | 51,949 |
ROE contribution of after-tax net investment income |  | 8.5 |  |  | 8.9 |
Reconciliation of Segment Results to Income Before Federal Income Tax |  | Quarter Ended March 31,
($ in thousands) |  | 2020 |  | 2019
Underwriting gain |  |  |  |
Standard Commercial Lines |  | $ | 17,126 |  |  | 25,815 |
Standard Personal Lines |  | 387 |  |  | 3,167 |
E&S Lines |  | 3,844 |  |  | 4,579 |
Investment income |  | 11,301 |  |  | 64,069 |
Total all segments |  | 32,658 |  |  | 97,630 |
Interest expense |  | (7,601 | ) |  | (11,526 | )
Corporate expenses |  | (9,060 | ) |  | (12,410 | )
Income, before federal income tax |  | $ | 15,997 |  |  | 73,694 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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