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Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
We report our results of operations for our reportable segments consistent with the manner in which our chief operating decision maker ("CODM") reviews the business to assess performance and allocate resources. We identify our CODM to be a group consisting of our Chairman of the Board, President and Chief Executive Officer, and our Chief Financial Officer.

We evaluate the results of our four reportable segments as follows:

•Our Standard Commercial Lines, Standard Personal Lines, and E&S Lines (collectively, "Insurance Operations") are evaluated on (i) 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 Investment segment results.

Our CODM uses these measures of profit or loss to allocate resources for each segment predominantly in the annual budget and forecasting process, considering budget-to-actual variances when allocating capital and personnel to the segments throughout the year. The CODM also uses these profit measures for evaluating (i) segment performance, (ii) pricing in our Insurance Operations, and (iii) employee compensation.

We do not allocate interest expense, corporate expenses, and assets to our segments. We allocate taxes to our investments segment as we manage that segment on after-tax results. While we allocate taxes to our Insurance Operations, we do not manage those segments on after-tax results.

Our combined insurance operations have some geographic concentrations, particularly in certain states in the Northeastern region of the country. In 2024, approximately 34% of NPW were related to insurance policies written in New Jersey (16%), Pennsylvania (10%), and New York (8%).

We had a goodwill balance of $7.8 million at both December 31, 2024, and 2023, on our Consolidated Balance Sheets that relates to our Standard Commercial Lines reporting unit.
  
(a) The following table presents revenues by segment and a reconciliation to consolidated revenue.

Revenue by SegmentYears ended December 31,
($ in thousands)202420232022
Standard Commercial Lines:   
Net premiums earned:   
General liability$1,125,491 1,020,362 902,428 
Commercial automobile1,058,228 916,140 812,306 
Commercial property685,568 586,267 495,647 
Workers compensation327,725 333,669 335,955 
Businessowners’ policies169,321 140,547 124,474 
Bonds49,748 46,215 43,354 
Other31,475 28,584 25,655 
Miscellaneous income28,394 17,168 9,519 
Total Standard Commercial Lines revenue3,475,950 3,088,952 2,749,338 
Standard Personal Lines:
Net premiums earned:
Personal automobile226,138 200,027 162,899 
Homeowners185,651 154,828 128,222 
Other13,128 10,358 8,284 
Miscellaneous income2,566 2,201 1,816 
Total Standard Personal Lines revenue427,483 367,414 301,221 
E&S Lines:
Net premiums earned:
Casualty lines307,895 261,144 233,086 
Property lines196,079 129,465 101,070 
Miscellaneous income155 33 — 
Total E&S Lines revenue504,129 390,642 334,156 
Investments:   
Net investment income457,051 388,650 288,155 
Net realized and unrealized investment gains (losses)
(2,949)(3,552)(114,808)
Total Investments revenues454,102 385,098 173,347 
Total revenues$4,861,664 4,232,106 3,558,062 
(b) The following tables present information about our segments' pre- and after-tax income, significant expenses, and reconciliations to consolidated results for the periods indicated.
2024Standard Commercial LinesStandard Personal Lines
E&S
Lines
Total Insurance OperationsInvestmentsTotal Reportable Segments
($ in thousands)
Total segment revenues
$3,475,950 427,483 504,129 4,407,562 454,102 4,861,664 
Loss and loss expense incurred:
Net catastrophe losses181,546 79,965 22,992 284,503 — 284,503 
Non-catastrophe property loss and loss expense459,537 164,045 58,025 681,607 — 681,607 
(Favorable)/unfavorable prior year casualty reserve development286,000 5,000 20,000 311,000 — 311,000 
Current year casualty loss costs
1,574,532 115,591 197,251 1,887,374 — 1,887,374 
Total loss and loss expense incurred2,501,615 364,601 298,268 3,164,484 — 3,164,484 
Net underwriting expenses incurred:
Commissions to distribution partners639,180 30,270 111,349 780,799 — 780,799 
Salaries and employee benefits290,880 37,024 25,547 353,451 — 353,451 
Other segment expenses
182,754 35,073 17,085 234,912 — 234,912 
Total net underwriting expenses incurred1,112,814 102,367 153,981 1,369,162 — 1,369,162 
Dividends to policyholders6,504 — — 6,504 — 6,504 
Segment income (loss), before federal income tax(144,983)(39,485)51,880 (132,588)454,102 321,514 
Federal income tax (expense) benefit27,843 (93,815)(65,972)
Segment income (loss), after federal income tax(104,745)360,287 255,542 
Reconciliation of segment income (loss) to consolidated income before and after federal income tax
Total segment income (loss), before federal income tax
321,514 
Interest expense(28,878)
Corporate expenses(34,602)
Income before federal income tax258,034 
Federal income tax (expense) benefit on segment income (loss)(65,972)
Federal income tax (expense) benefit on interest and corporate expenses14,950 
Total federal income tax (expense) benefit(51,022)
Net income207,012 
Preferred stock dividends(9,200)
Net income available to common stockholders197,812 
2023Standard Commercial LinesStandard Personal Lines
E&S
Lines
Total Insurance OperationsInvestmentsTotal Reportable Segments
($ in thousands)
Total segment revenues$3,088,952 367,414 390,642 3,847,008 385,098 4,232,106 
Loss and loss expense incurred:
Net catastrophe losses150,518 69,315 24,677 244,510 — 244,510 
Non-catastrophe property loss and loss expense461,593 156,890 31,901 650,384 — 650,384 
(Favorable)/unfavorable prior year casualty reserve development(15,500)14,000 (5,000)(6,500)— (6,500)
Current year casualty loss costs1,322,593 112,980 160,318 1,595,891 — 1,595,891 
Total loss and loss expense incurred1,919,204 353,185 211,896 2,484,285 — 2,484,285 
Net underwriting expenses incurred:
Commissions to distribution partners571,078 22,052 87,055 680,185 — 680,185 
Salaries and employee benefits267,375 38,830 21,800 328,005 — 328,005 
Other segment expenses167,234 32,610 15,135 214,979 — 214,979 
Total net underwriting expenses incurred1,005,687 93,492 123,990 1,223,169 — 1,223,169 
Dividends to policyholders6,755 — — 6,755 — 6,755 
Segment income (loss), before federal income tax157,306 (79,263)54,756 132,799 385,098 517,897 
Federal income tax (expense) benefit(27,888)(78,369)(106,257)
Segment income (loss), after federal income tax104,911 306,729 411,640 
Reconciliation of segment income (loss) to consolidated income before and after federal income tax
Total segment income (loss), before federal income tax
517,897 
Interest expense(28,799)
Corporate expenses(30,686)
Income before federal income tax458,412 
Federal income tax (expense) benefit on segment income (loss)(106,257)
Federal income tax (expense) benefit on interest and corporate expenses13,083 
Total federal income tax (expense) benefit(93,174)
Net income365,238 
Preferred stock dividends(9,200)
Net income available to common stockholders356,038 
2022Standard Commercial LinesStandard Personal LinesE&S LinesTotal Insurance OperationsInvestmentsTotal Reportable Segments
($ in thousands)
Total segment revenues$2,749,338 301,221 334,156 3,384,715 173,347 3,558,062 
Loss and loss expense incurred:
Net catastrophe losses95,600 40,759 9,567 145,926 — 145,926 
Non-catastrophe property loss and loss expense461,119 117,125 39,626 617,870 — 617,870 
(Favorable)/unfavorable prior year casualty reserve development(81,000)— (5,000)(86,000)— (86,000)
Current year casualty loss costs1,208,269 73,229 152,484 1,433,982 — 1,433,982 
Total loss and loss expense incurred1,683,988 231,113 196,677 2,111,778 — 2,111,778 
Net underwriting expenses incurred:
Commissions to distribution partners515,938 13,379 74,883 604,200 — 604,200 
Salaries and employee benefits245,339 34,045 18,128 297,512 — 297,512 
Other segment expenses155,519 29,877 14,169 199,565 — 199,565 
Total net underwriting expenses incurred916,796 77,301 107,180 1,101,277 — 1,101,277 
Dividends to policyholders4,858 — — 4,858 — 4,858 
Segment income (loss), before federal income tax143,696 (7,193)30,299 166,802 173,347 340,149 
Federal income tax (expense) benefit(35,028)(31,846)(66,874)
Segment income (loss), after federal income tax131,774 141,501 273,275 
Reconciliation of segment income (loss) to consolidated income before and after federal income tax
Total segment income (loss), before federal income tax
340,149 
Interest expense(28,847)
Corporate expenses(31,116)
Income before federal income tax280,186 
Federal income tax (expense) benefit on segment income (loss)(66,874)
Federal income tax (expense) benefit on interest and corporate expenses11,574 
Total federal income tax (expense) benefit(55,300)
Net income224,886 
Preferred stock dividends(9,200)
Net income available to common stockholders215,686 

The "Other segment expenses" primarily consist of (i) fees paid for licenses, (ii) depreciation expense, and (iii) general overhead items to operate our business operations, including travel expenses, postage and telephone expenses, and utility expenses. "Loss and loss expense incurred" includes a portion of salaries and employee benefits related to claims personnel.
(c) The following tables present reconciliations of our segments' ROE contributions and combined ratios to consolidated results.

ROE
Years ended December 31,
202420232022
Standard Commercial Lines segment(4.0)%5.0 4.6 
Standard Personal Lines segment (1.1)(2.5)(0.2)
E&S Lines segment1.4 1.7 1.0 
Total insurance operations(3.7)4.2 5.4 
Net investment income earned
12.8 12.4 9.4 
Net realized and unrealized investment gains (losses)(0.1)(0.1)(3.6)
Total investments segment 12.7 12.3 5.8 
Other(2.0)(2.2)(2.4)
ROE7.0 %14.3 8.8 

Combined Ratio
Years ended December 31,
202420232022
AmountRatioAmountRatio
Amount
Ratio
Standard Commercial Lines:
Net premiums earned
$3,447,556 3,071,784 2,739,819 
Loss and loss expense incurred
2,501,615 72.5 
%
1,919,204 62.5 1,683,988 61.5 
Net underwriting expenses incurred1
1,084,420 31.5 988,519 32.2 907,277 33.1 
Dividends to policyholders
6,504 0.2 6,755 0.2 4,858 0.2 
Underwriting income (loss)
(144,983)104.2 157,306 94.9 143,696 94.8 
Standard Personal Lines:
Net premiums earned
424,917 365,213 299,405 
Loss and loss expense incurred364,601 85.8 353,185 96.7 231,113 77.2 
Net underwriting expenses incurred1
99,801 23.5 91,291 25.0 75,485 25.2 
Underwriting income (loss)
(39,485)109.3 (79,263)121.7 (7,193)102.4 
E&S Lines:
Net premiums earned
503,974 390,609 334,156 
Loss and loss expense incurred
298,268 59.2 211,896 54.3 196,677 58.8 
Net underwriting expenses incurred1
153,826 30.5 123,957 31.7 107,180 32.1 
Underwriting income (loss)
51,880 89.7 54,756 86.0 30,299 90.9 
Total Insurance Operations:
Net premiums earned
4,376,447 3,827,606 3,373,380 
Loss and loss expense incurred
3,164,484 72.3 2,484,285 64.9 2,111,778 62.7 
Net underwriting expenses incurred1
1,338,047 30.6 1,203,767 31.4 1,089,942 32.3 
Dividends to policyholders
6,504 0.1 6,755 0.2 4,858 0.1 
Underwriting income (loss)
(132,588)103.0 132,799 96.5 166,802 95.1 
1"Net underwriting expenses incurred" includes "Other income" allocated to each reportable segment.