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v3.24.3

Segment Information | 9 Months Ended
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Sep. 30, 2024
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 (i) before and after-tax underwriting results (net premiums earned, incurred loss and loss expense, policyholder dividends, policy acquisition costs, and other underwriting expenses), (ii) their return on equity ("ROE") contribution, and (iii) their 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 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 September 30, |  | Nine Months ended September 30,
($ in thousands) |  | 2024 |  | 2023 |  | 2024 |  | 2023
Standard Commercial Lines: |  |  |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |  |  |
General liability |  | $ | 286,641 |  |  | 261,551 |  |  | $ | 840,153 |  |  | 759,410 |
Commercial automobile |  | 269,036 |  |  | 234,622 |  |  | 781,408 |  |  | 677,060 |
Commercial property |  | 174,855 |  |  | 152,495 |  |  | 504,919 |  |  | 429,135 |
Workers compensation |  | 81,296 |  |  | 81,672 |  |  | 251,389 |  |  | 254,602 |
Businessowners' policies |  | 43,091 |  |  | 36,016 |  |  | 124,653 |  |  | 103,572 |
Bonds |  | 12,511 |  |  | 11,715 |  |  | 37,067 |  |  | 34,731 |
Other |  | 7,949 |  |  | 7,257 |  |  | 23,393 |  |  | 21,142 |
Miscellaneous income |  | 8,189 |  |  | 4,606 |  |  | 20,537 |  |  | 12,355 |
Total Standard Commercial Lines revenue |  | 883,568 |  |  | 789,934 |  |  | 2,583,519 |  |  | 2,292,007 |
Standard Personal Lines: |  |  |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |  |  |
Personal automobile |  | 56,599 |  |  | 51,906 |  |  | 171,103 |  |  | 145,050 |
Homeowners |  | 47,251 |  |  | 40,175 |  |  | 137,419 |  |  | 112,090 |
Other |  | 3,671 |  |  | 3,088 |  |  | 9,266 |  |  | 7,069 |
Miscellaneous income |  | 692 |  |  | 575 |  |  | 1,927 |  |  | 1,564 |
Total Standard Personal Lines revenue |  | 108,213 |  |  | 95,744 |  |  | 319,715 |  |  | 265,773 |
E&S Lines: |  |  |  |  |  |  |  |
Net premiums earned: |  |  |  |  |  |  |  |
Casualty lines |  | 77,471 |  |  | 67,718 |  |  | 222,996 |  |  | 190,686 |
Property lines |  | 51,857 |  |  | 33,702 |  |  | 139,637 |  |  | 91,856 |
Miscellaneous income |  | 49 |  |  | — |  |  | 102 |  |  | — |
Total E&S Lines revenue |  | 129,377 |  |  | 101,420 |  |  | 362,735 |  |  | 282,542 |
Investments: |  |  |  |  |  |  |  |
Net investment income earned |  | 117,759 |  |  | 100,863 |  |  | 334,250 |  |  | 290,065 |
Net realized and unrealized investment gains (losses) |  | 5,389 |  |  | (6,880) |  |  | 5,051 |  |  | (8,962) |
Total Investments revenue |  | 123,148 |  |  | 93,983 |  |  | 339,301 |  |  | 281,103 |
Total revenues |  | $ | 1,244,306 |  |  | 1,081,081 |  |  | $ | 3,605,270 |  |  | 3,121,425 |
Income (Loss) Before and After Federal Income Tax |  | Quarter ended September 30, |  | Nine Months ended September 30,
($ in thousands) |  | 2024 |  | 2023 |  | 2024 |  | 2023
Standard Commercial Lines: |  |  |  |  |  |  |  |
Underwriting income (loss), before federal income tax |  | $ | 7,319 |  |  | 41,339 |  |  | $ | (143,181) |  |  | 102,406 |
Underwriting income (loss), after federal income tax |  | 5,782 |  |  | 32,658 |  |  | (113,113) |  |  | 80,901 |
Combined ratio |  | 99.2 | % |  | 94.7 |  |  | 105.6 |  |  | 95.5 |
ROE contribution |  | 0.8 |  |  | 5.4 |  |  | (5.4) |  |  | 4.4 |
Standard Personal Lines: |  |  |  |  |  |  |  |
Underwriting income (loss), before federal income tax |  | $ | (23,774) |  |  | (26,099) |  |  | $ | (48,410) |  |  | (62,232) |
Underwriting income (loss), after federal income tax |  | (18,781) |  |  | (20,618) |  |  | (38,244) |  |  | (49,163) |
Combined ratio |  | 122.1 | % |  | 127.4 |  |  | 115.2 |  |  | 123.6 |
ROE contribution |  | (2.6) |  |  | (3.4) |  |  | (1.8) |  |  | (2.7) |
E&S Lines: |  |  |  |  |  |  |  |
Underwriting income (loss), before federal income tax |  | $ | 21,706 |  |  | 16,351 |  |  | $ | 42,192 |  |  | 29,074 |
Underwriting income (loss), after federal income tax |  | 17,148 |  |  | 12,917 |  |  | 33,332 |  |  | 22,968 |
Combined ratio |  | 83.2 | % |  | 83.9 |  |  | 88.4 |  |  | 89.7 |
ROE contribution |  | 2.4 |  |  | 2.1 |  |  | 1.6 |  |  | 1.3 |
Investments: |  |  |  |  |  |  |  |
Net investment income earned |  | $ | 117,759 |  |  | 100,863 |  |  | $ | 334,250 |  |  | 290,065 |
Net realized and unrealized investment gains (losses) |  | 5,389 |  |  | (6,880) |  |  | 5,051 |  |  | (8,962) |
Total investments segment income, before federal income tax |  | 123,148 |  |  | 93,983 |  |  | 339,301 |  |  | 281,103 |
Tax on investments segment income |  | 25,511 |  |  | 19,191 |  |  | 70,029 |  |  | 57,092 |
Total investments segment income, after federal income tax |  | $ | 97,637 |  |  | 74,792 |  |  | $ | 269,272 |  |  | 224,011 |
ROE contribution of after-tax net investment income earned |  | 13.1 |  |  | 13.1 |  |  | 12.6 |  |  | 12.7 |
Reconciliation of Segment Results to Income (Loss) Before Federal Income Tax |  | Quarter ended September 30, |  | Nine Months ended September 30,
($ in thousands) |  | 2024 |  | 2023 |  | 2024 |  | 2023
Underwriting income (loss) |  |  |  |  |  |  |  |
Standard Commercial Lines |  | $ | 7,319 |  |  | 41,339 |  |  | $ | (143,181) |  |  | 102,406 |
Standard Personal Lines |  | (23,774) |  |  | (26,099) |  |  | (48,410) |  |  | (62,232) |
E&S Lines |  | 21,706 |  |  | 16,351 |  |  | 42,192 |  |  | 29,074 |
Investment income |  | 123,148 |  |  | 93,983 |  |  | 339,301 |  |  | 281,103 |
Total all segments |  | 128,399 |  |  | 125,574 |  |  | 189,902 |  |  | 350,351 |
Interest expense |  | (7,250) |  |  | (7,186) |  |  | (21,633) |  |  | (21,610) |
Corporate expenses |  | (4,662) |  |  | (5,871) |  |  | (29,314) |  |  | (27,308) |
Income (loss), before federal income tax |  | $ | 116,487 |  |  | 112,517 |  |  | $ | 138,955 |  |  | 301,433 |
Preferred stock dividends |  | (2,300) |  |  | (2,300) |  |  | (6,900) |  |  | (6,900) |
Income (loss) available to common stockholders, before federal income tax |  | $ | 114,187 |  |  | 110,217 |  |  | $ | 132,055 |  |  | 294,533 |

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- Definition The entire disclosure for reporting segments including data and tables. 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