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Segment Information | 6 Months Ended
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Jun. 30, 2022
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 based 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. No segment has a separate investment portfolio or allocated assets. 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 |  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2022 |  | 2021 |  | 2022 |  | 2021
Standard Commercial Lines: |  |  |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |  |  |
General liability |  | $ | 226,285 |  |  | 197,293 |  |  | $ | 442,610 |  |  | 390,813 |
Commercial automobile |  | 198,381 |  |  | 178,028 |  |  | 392,211 |  |  | 349,909 |
Commercial property |  | 123,562 |  |  | 106,113 |  |  | 243,624 |  |  | 208,923 |
Workers compensation |  | 83,502 |  |  | 74,337 |  |  | 168,182 |  |  | 152,527 |
Businessowners' policies |  | 31,508 |  |  | 29,311 |  |  | 61,552 |  |  | 57,938 |
Bonds |  | 10,682 |  |  | 8,993 |  |  | 21,042 |  |  | 17,586 |
Other |  | 6,317 |  |  | 5,679 |  |  | 12,485 |  |  | 11,199 |
Miscellaneous income |  | 2,596 |  |  | 5,795 |  |  | 3,697 |  |  | 9,502 |
Total Standard Commercial Lines revenue |  | 682,833 |  |  | 605,549 |  |  | 1,345,403 |  |  | 1,198,397 |
Standard Personal Lines: |  |  |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |  |  |
Personal automobile |  | 39,952 |  |  | 41,009 |  |  | 79,668 |  |  | 82,402 |
Homeowners |  | 31,630 |  |  | 30,570 |  |  | 62,817 |  |  | 61,168 |
Other |  | 1,756 |  |  | 1,714 |  |  | 3,495 |  |  | 3,544 |
Miscellaneous income |  | 441 |  |  | 417 |  |  | 869 |  |  | 822 |
Total Standard Personal Lines revenue |  | 73,779 |  |  | 73,710 |  |  | 146,849 |  |  | 147,936 |
E&S Lines: |  |  |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |  |  |
Casualty lines |  | 56,041 |  |  | 47,642 |  |  | 110,665 |  |  | 91,475 |
Property lines |  | 24,823 |  |  | 19,829 |  |  | 48,371 |  |  | 37,994 |
Total E&S Lines revenue |  | 80,864 |  |  | 67,471 |  |  | 159,036 |  |  | 129,469 |
Investments: |  |  |  |  |  |  |  |
Net investment income |  | 70,222 |  |  | 83,731 |  |  | 142,824 |  |  | 153,447 |
Net realized and unrealized investment (losses) gains |  | (42,880) |  |  | 10,057 |  |  | (83,232) |  |  | 15,176 |
Total Investments revenue |  | 27,342 |  |  | 93,788 |  |  | 59,592 |  |  | 168,623 |
Total revenues |  | $ | 864,818 |  |  | 840,518 |  |  | $ | 1,710,880 |  |  | 1,644,425 |
Income Before and After Federal Income Tax |  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2022 |  | 2021 |  | 2022 |  | 2021
Standard Commercial Lines: |  |  |  |  |  |  |  |
Underwriting income, before federal income tax |  | $ | 46,708 |  |  | 67,938 |  |  | $ | 89,092 |  |  | 137,437 |
Underwriting income, after federal income tax |  | 36,899 |  |  | 53,671 |  |  | 70,383 |  |  | 108,575 |
Combined ratio |  | 93.1 | % |  | 88.7 |  |  | 93.4 |  |  | 88.4 |
ROE contribution |  | 6.0 |  |  | 8.2 |  |  | 5.5 |  |  | 8.3 |
Standard Personal Lines: |  |  |  |  |  |  |  |
Underwriting (loss) income, before federal income tax |  | $ | (12,367) |  |  | 5,644 |  |  | $ | (5,847) |  |  | 13,339 |
Underwriting (loss) income, after federal income tax |  | (9,770) |  |  | 4,459 |  |  | (4,619) |  |  | 10,538 |
Combined ratio |  | 116.9 | % |  | 92.3 |  |  | 104.0 |  |  | 90.9 |
ROE contribution |  | (1.6) |  |  | 0.7 |  |  | (0.4) |  |  | 0.8 |
E&S Lines: |  |  |  |  |  |  |  |
Underwriting income, before federal income tax |  | $ | 3,372 |  |  | 2,306 |  |  | $ | 10,297 |  |  | 2,822 |
Underwriting income, after federal income tax |  | 2,664 |  |  | 1,822 |  |  | 8,135 |  |  | 2,229 |
Combined ratio |  | 95.8 | % |  | 96.6 |  |  | 93.5 |  |  | 97.8 |
ROE contribution |  | 0.4 |  |  | 0.3 |  |  | 0.6 |  |  | 0.2 |
Investments: |  |  |  |  |  |  |  |
Net investment income earned |  | $ | 70,222 |  |  | 83,731 |  |  | $ | 142,824 |  |  | 153,447 |
Net realized and unrealized investment (losses) gains |  | (42,880) |  |  | 10,057 |  |  | (83,232) |  |  | 15,176 |
Total investments segment income, before federal income tax |  | 27,342 |  |  | 93,788 |  |  | 59,592 |  |  | 168,623 |
Tax on investments segment income |  | 4,559 |  |  | 18,402 |  |  | 10,172 |  |  | 32,850 |
Total investments segment income, after federal income tax |  | $ | 22,783 |  |  | 75,386 |  |  | $ | 49,420 |  |  | 135,773 |
ROE contribution of after-tax net investment income earned |  | 9.1 |  |  | 10.3 |  |  | 8.9 |  |  | 9.5 |
Reconciliation of Segment Results to Income Before Federal Income Tax |  | Quarter ended June 30, |  | Six Months ended June 30,
($ in thousands) |  | 2022 |  | 2021 |  | 2022 |  | 2021
Underwriting income (loss) |  |  |  |  |  |  |  |
Standard Commercial Lines |  | $ | 46,708 |  |  | 67,938 |  |  | $ | 89,092 |  |  | 137,437 |
Standard Personal Lines |  | (12,367) |  |  | 5,644 |  |  | (5,847) |  |  | 13,339 |
E&S Lines |  | 3,372 |  |  | 2,306 |  |  | 10,297 |  |  | 2,822 |
Investment income |  | 27,342 |  |  | 93,788 |  |  | 59,592 |  |  | 168,623 |
Total all segments |  | 65,055 |  |  | 169,676 |  |  | 153,134 |  |  | 322,221 |
Interest expense |  | (7,252) |  |  | (7,366) |  |  | (14,420) |  |  | (14,725) |
Corporate expenses |  | (7,899) |  |  | (9,112) |  |  | (18,920) |  |  | (18,666) |
Income, before federal income tax |  | $ | 49,904 |  |  | 153,198 |  |  | $ | 119,794 |  |  | 288,830 |
Preferred stock dividends |  | (2,300) |  |  | (2,300) |  |  | (4,600) |  |  | (4,753) |
Income available to common stockholders, before federal income tax |  | $ | 47,604 |  |  | 150,898 |  |  | $ | 115,194 |  |  | 284,077 |

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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