XML 31 R16.htm IDEA: XBRL DOCUMENT v3.21.2
Segment Information
 9 Months Ended
Sep. 30, 2021
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 Investments segment results.

In computing each segment's results, we do not make adjustments for interest expense or corporate expenses, nor do we allocate assets.
The following summaries present revenues (net investment income and net realized and unrealized gains and losses on investments for the Investments segment) and pre-tax income for the individual segments:
Revenue by SegmentQuarter ended September 30,Nine Months ended September 30,
($ in thousands)2021202020212020
Standard Commercial Lines:  
Net premiums earned:  
Commercial property$111,981 97,997 $320,904 287,279 
Workers compensation78,318 75,595 230,845 204,207 
General liability205,904 181,459 596,717 509,312 
Commercial automobile185,610 160,937 535,519 449,162 
Businessowners' policies23,025 27,605 80,963 82,157 
Bonds8,850 9,226 26,436 28,075 
Other5,883 5,266 17,082 15,477 
Miscellaneous income4,168 5,521 13,670 11,107 
Total Standard Commercial Lines revenue623,739 563,606 1,822,136 1,586,776 
Standard Personal Lines:
Net premiums earned:
Personal automobile40,575 42,458 122,977 123,134 
Homeowners30,633 31,395 91,801 94,537 
Other2,154 2,123 5,698 6,066 
Miscellaneous income420 598 1,242 1,520 
Total Standard Personal Lines revenue73,782 76,574 221,718 225,257 
E&S Lines:
Net premiums earned:
Casualty lines52,983 43,650 144,458 130,444 
Property lines21,331 16,830 59,325 47,065 
Total E&S Lines revenue74,314 60,480 203,783 177,509 
Investments:    
Net investment income 93,032 68,185 246,479 158,596 
Net realized and unrealized investment gains (losses)177 7,721 15,353 (24,296)
Total Investments revenue93,209 75,906 261,832 134,300 
Total revenues $865,044 776,566 $2,509,469 2,123,842 

Income Before and After Federal Income TaxQuarter ended September 30,Nine Months ended September 30,
($ in thousands)2021202020212020
Standard Commercial Lines:  
Underwriting gain, before federal income tax$17,413 42,718 $154,850 76,574 
Underwriting gain, after federal income tax13,756 33,746 122,332 60,493 
Combined ratio97.2 %92.3 91.4 95.1 
ROE contribution2.1 5.7 6.2 3.5 
Standard Personal Lines:
Underwriting gain (loss), before federal income tax$(11,146)(14,404)$2,193 (20,342)
Underwriting gain (loss), after federal income tax(8,805)(11,379)1,732 (16,070)
Combined ratio115.2 %119.0 99.0 109.1 
ROE contribution(1.3)(1.9)0.1 (0.9)
E&S Lines:
Underwriting gain (loss), before federal income tax$4,672 (7,277)$7,494 (3,965)
Underwriting gain (loss), after federal income tax3,691 (5,748)5,920 (3,132)
Combined ratio93.7 %112.0 96.3 102.2 
ROE contribution0.5 (1.0)0.3 (0.2)
Investments:  
Net investment income $93,032 68,185 $246,479 158,596 
Net realized and unrealized investment gains (losses)177 7,721 15,353 (24,296)
Total investments segment income, before federal income tax93,209 75,906 261,832 134,300 
Tax on investments segment income18,379 14,676 51,229 24,338 
Total investments segment income, after federal income tax$74,830 61,230 $210,603 109,962 
ROE contribution of after-tax net investment income11.0 9.4 10.1 7.5 
Reconciliation of Segment Results to Income Before Federal Income TaxQuarter ended September 30,Nine Months ended September 30,
($ in thousands)2021202020212020
Underwriting gain
Standard Commercial Lines$17,413 42,718 $154,850 76,574 
Standard Personal Lines(11,146)(14,404)2,193 (20,342)
E&S Lines4,672 (7,277)7,494 (3,965)
Investment income93,209 75,906 261,832 134,300 
Total all segments104,148 96,943 426,369 186,567 
Interest expense(7,242)(7,781)(21,967)(23,310)
Corporate expenses(4,270)(3,905)(22,936)(19,310)
Income, before federal income tax$92,636 85,257 $381,466 143,947 
Preferred stock dividends(2,300)— (7,053)— 
Income available to common stockholders, before federal income tax$90,336 85,257 $374,413 143,947