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Business Segments | 12 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
Business Segments | BUSINESS SEGMENTS The Company is engaged, through its subsidiaries, in the property and casualty insurance and life and health insurance businesses. The Company conducts its operations through three operating segments: Specialty Property & Casualty Insurance, Preferred Property & Casualty Insurance and Life & Health Insurance. The Specialty Property & Casualty Insurance segment’s principal products are specialty automobile insurance and commercial automobile insurance. The Preferred Property & Casualty Insurance segment’s principal products are preferred automobile insurance, homeowners insurance, and other personal insurance. These products are distributed primarily through independent agents and brokers.The Life & Health Insurance segment’s principal products are individual life, accident, health and property insurance. These products are distributed by career agents employed by the Company and independent agents and brokers. The Company’s earned premiums are derived in the United States. The accounting policies of the segments are the same as those described in Note 2, “Summary of Accounting Policies and Accounting Changes,” to the Consolidated Financial Statements. Capital expenditures for long-lived assets by operating segment are immaterial. It is the Company’s management practice to allocate certain corporate expenses, primarily compensation costs for corporate employees and related facility costs, included in Interest and Other Expenses in the Consolidated Statements of Income to its insurance operations. The amount of such allocated corporate expenses was $109.5 million, $103.9 million and $68.0 million for the years ended December 31, 2020, 2019 and 2018, respectively. The Company does not allocate Income (Loss) from Change in Fair Value of Equity and Convertible Securities, Net Realized Gains on Sales of Investments, Impairment Losses, Acquisition Related Transaction, Integration and Other Costs, Loss from Early Extinguishment of Debt, interest expense on debt or postretirement benefit plans, and actuarial gains and losses on its postretirement benefit plans to its operating segments. Additionally, the Company did not allocate the 2018 and 2017 impacts of the Tax Act or the gains recognized in 2019 and 2018 on the partial satisfaction of a final judgment against Computer Sciences Corporation (“CSC”) to its operating segments. Segment Assets at December 31, 2020 and 2019 were:
DOLLARS IN MILLIONS |  | 2020 |  | 2019
Specialty Property & Casualty Insurance |  | $ | 4,897.1 |  |  | $ | 4,435.2 |
Preferred Property & Casualty Insurance |  | 1,711.2 |  |  | 1,549.8 |
Life & Health Insurance |  | 6,457.0 |  |  | 5,847.9 |
Corporate and Other, Net |  | 1,276.6 |  |  | 1,156.2 |
Total Assets |  | $ | 14,341.9 |  |  | $ | 12,989.1 |
Earned Premiums by product line for the years ended December 31, 2020, 2019 and 2018 were:
DOLLARS IN MILLIONS |  | 2020 |  | 2019 |  | 2018
Specialty Property & Casualty Insurance: |  |  |  |  |  |
Specialty Automobile |  | $ | 3,031.3 |  |  | $ | 2,825.6 |  |  | $ | 1,889.5 |
Commercial Automobile |  | 304.0 |  |  | 252.8 |  |  | 137.9 |
Preferred Property & Casualty Insurance: |  |  |  |  |  |
Preferred Automobile |  | 431.7 |  |  | 470.2 |  |  | 440.2 |
Homeowners |  | 220.7 |  |  | 241.3 |  |  | 250.1 |
Other Personal Lines |  | 35.8 |  |  | 38.8 |  |  | 40.4 |
Life & Health Insurance: |  |  |  |  |  |
Life |  | 385.7 |  |  | 384.6 |  |  | 378.4 |
Accident & Health |  | 199.3 |  |  | 190.9 |  |  | 177.5 |
Property |  | 63.7 |  |  | 68.2 |  |  | 70.4 |
Total Earned Premiums |  | $ | 4,672.2 |  |  | $ | 4,472.4 |  |  | $ | 3,384.4 |
NOTE 19. BUSINESS SEGMENTS (Continued) Segment Revenues, including a reconciliation to Total Revenues, for the years ended December 31, 2020, 2019 and 2018 were:
DOLLARS IN MILLIONS |  | 2020 |  | 2019 |  | 2018
Segment Revenues: |  |  |  |  |  |
Specialty Property & Casualty Insurance: |  |  |  |  |  |
Earned Premiums |  | $ | 3,335.3 |  |  | $ | 3,078.4 |  |  | $ | 2,027.4 |
Net Investment Income |  | 114.1 |  |  | 107.5 |  |  | 63.4 |
Other Income |  | 1.8 |  |  | 7.0 |  |  | 2.4 |
Total Specialty Property & Casualty Insurance |  | 3,451.2 |  |  | 3,192.9 |  |  | 2,093.2 |
Preferred Property & Casualty Insurance: |  |  |  |  |  |
Earned Premiums |  | 688.2 |  |  | 750.3 |  |  | 730.7 |
Net Investment Income |  | 37.7 |  |  | 44.1 |  |  | 61.8 |
Other Income |  | 0.1 |  |  | — |  |  | — |
Total Preferred Property & Casualty Insurance |  | 726.0 |  |  | 794.4 |  |  | 792.5 |
Life & Health Insurance: |  |  |  |  |  |
Earned Premiums |  | 648.7 |  |  | 643.7 |  |  | 626.3 |
Net Investment Income |  | 198.8 |  |  | 206.4 |  |  | 210.9 |
Other Income |  | 0.6 |  |  | 8.5 |  |  | 4.0 |
Total Life & Health Insurance |  | 848.1 |  |  | 858.6 |  |  | 841.2 |
Total Segment Revenues |  | 5,025.3 |  |  | 4,845.9 |  |  | 3,726.9 |
Income (Loss) from Change in Fair Value of Equity and Convertible Securities |  | 72.1 |  |  | 138.9 |  |  | (64.3) |
Net Realized Gains on the Sales of Investments |  | 38.1 |  |  | 41.9 |  |  | 26.4 |
Impairment Losses |  | (19.5) |  |  | (13.8) |  |  | (4.5) |
Other |  | 89.7 |  |  | 26.3 |  |  | 40.6 |
Total Revenues |  | $ | 5,205.7 |  |  | $ | 5,039.2 |  |  | $ | 3,725.1 |
Segment Operating Profit, including a reconciliation to Income from Continuing Operations before Income Taxes, for the years ended December 31, 2020, 2019 and 2018 was:
DOLLARS IN MILLIONS |  | 2020 |  | 2019 |  | 2018
Segment Operating Profit (Loss): |  |  |  |  |  |
Specialty Property & Casualty Insurance |  | $ | 420.9 |  |  | $ | 355.9 |  |  | $ | 145.6 |
Preferred Property & Casualty Insurance |  | 1.8 |  |  | 52.3 |  |  | 28.6 |
Life & Health Insurance |  | 71.2 |  |  | 121.9 |  |  | 115.9 |
Total Segment Operating Profit |  | 493.9 |  |  | 530.1 |  |  | 290.1 |
Corporate and Other Operating Profit (Loss) From: |  |  |  |  |  |
Partial Satisfaction of Judgment |  | 89.4 |  |  | 20.1 |  |  | 35.7 |
Other |  | (36.5) |  |  | (31.4) |  |  | (39.6) |
Corporate and Other Operating Profit (Loss) |  | 52.9 |  |  | (11.3) |  |  | (3.9) |
Adjusted Consolidated Operating Profit (Loss) |  | 546.8 |  |  | 518.8 |  |  | 286.2 |
Income (Loss) from Change in Fair Value of Equity and Convertible Securities |  | 72.1 |  |  | 138.9 |  |  | (64.3) |
Net Realized Gains on Sales of Investments |  | 38.1 |  |  | 41.9 |  |  | 26.4 |
Impairment Losses |  | (19.5) |  |  | (13.8) |  |  | (4.5) |
Acquisition Related Transaction, Integration and Other Costs |  | (63.3) |  |  | (18.4) |  |  | (44.7) |
Pension Obligation Settlement Costs |  | (64.1) |  |  | — |  |  | — |
Loss from Early Extinguishment of Debt |  | — |  |  | (5.8) |  |  | — |
Income from Continuing Operations before Income Taxes |  | $ | 510.1 |  |  | $ | 661.6 |  |  | $ | 199.1 |
NOTE 19. BUSINESS SEGMENTS (Continued) Segment Net Operating Income, including a reconciliation to Income from Continuing Operations, for the years ended December 31, 2020, 2019 and 2018 was:
DOLLARS IN MILLIONS |  | 2020 |  | 2019 |  | 2018
Segment Net Operating Income (Loss): |  |  |  |  |  |
Specialty Property & Casualty Insurance |  | $ | 337.9 |  |  | $ | 283.1 |  |  | $ | 115.8 |
Preferred Property & Casualty Insurance |  | 3.5 |  |  | 41.9 |  |  | 25.7 |
Life & Health Insurance |  | 60.0 |  |  | 98.7 |  |  | 91.5 |
Total Segment Net Operating Income (Loss) |  | 401.4 |  |  | 423.7 |  |  | 233.0 |
Corporate and Other Net Operating Income (Loss) From: |  |  |  |  |  |
Effects of Tax Law Changes |  | — |  |  | — |  |  | 26.4 |
Partial Satisfaction of Judgment |  | 70.6 |  |  | 15.9 |  |  | 28.2 |
Other |  | (33.2) |  |  | (21.3) |  |  | (29.2) |
Total Corporate and Other Net Operating Income (Loss) |  | 37.4 |  |  | (5.4) |  |  | 25.4 |
Adjusted Consolidated Net Operating Income |  | 438.8 |  |  | 418.3 |  |  | 258.4 |
Net Income (Loss) From: |  |  |  |  |  |
Change in Fair Value of Equity and Convertible Securities |  | 57.0 |  |  | 109.7 |  |  | (50.8) |
Net Realized Gains on Sales of Investments |  | 30.1 |  |  | 33.1 |  |  | 20.9 |
Impairment Losses |  | (15.4) |  |  | (10.9) |  |  | (3.6) |
Acquisition Related Transaction, Integration and Other Costs |  | (50.0) |  |  | (14.5) |  |  | (36.5) |
Pension Obligation Settlement Costs |  | (50.6) |  |  | — |  |  | — |
Loss from Early Extinguishment of Debt |  | — |  |  | (4.6) |  |  | — |
Income from Continuing Operations |  | $ | 409.9 |  |  | $ | 531.1 |  |  | $ | 188.4 |

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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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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=120311839&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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