| Segment Information |
We evaluate the performance of our personal lines and commercial
lines segments based upon the underwriting results of our insurance
subsidiaries using statutory accounting principles
(“SAP”) that various state insurance departments
prescribe or permit. Our management uses SAP to measure the
performance of our insurance subsidiaries instead of United States
generally accepted accounting principles (“GAAP”). SAP
financial measures are considered non-GAAP financial measures under
applicable SEC rules because they include or exclude certain items
that the most comparable GAAP financial measures do not ordinarily
include or exclude.
Financial data by segment for the three and nine months ended
September 30, 2018 and 2017 is as follows:
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Three Months Ended September 30, |
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2018 |
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|
2017 |
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| |
|
(in thousands) |
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|
Revenues:
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|
|
|
|
|
|
|
|
Premiums earned:
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|
|
|
|
|
|
|
|
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Commercial lines
|
|
$ |
84,251 |
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|
$ |
80,724 |
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Personal lines
|
|
|
103,410 |
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|
96,560 |
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|
|
|
|
|
|
|
|
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Premiums earned
|
|
|
187,661 |
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|
|
177,284 |
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Net investment income
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|
|
6,620 |
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|
|
5,980 |
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Realized investment gains
|
|
|
3,464 |
|
|
|
561 |
|
|
Equity in earnings of DFSC
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|
|
733 |
|
|
|
404 |
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Other
|
|
|
1,426 |
|
|
|
1,487 |
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|
|
|
|
|
|
|
|
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Total revenues
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|
$ |
199,904 |
|
|
$ |
185,716 |
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|
|
|
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Income before income tax expense:
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Underwriting (loss) income:
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Commercial lines
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|
$ |
2,125 |
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|
$ |
8,998 |
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Personal lines
|
|
|
(12,210 |
) |
|
|
(8,919 |
) |
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|
|
|
|
|
|
|
|
|
SAP underwriting (loss) income
|
|
|
(10,085 |
) |
|
|
79 |
|
|
GAAP adjustments
|
|
|
332 |
|
|
|
644 |
|
|
|
|
|
|
|
|
|
|
|
GAAP underwriting (loss) income
|
|
|
(9,753 |
) |
|
|
723 |
|
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Net investment income
|
|
|
6,620 |
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|
|
5,980 |
|
|
Realized investment gains
|
|
|
3,464 |
|
|
|
561 |
|
|
Equity in earnings of DFSC
|
|
|
733 |
|
|
|
404 |
|
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Other
|
|
|
213 |
|
|
|
844 |
|
|
|
|
|
|
|
|
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Income before income tax expense
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|
$ |
1,277 |
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|
$ |
8,512 |
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Nine Months Ended September 30, |
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2018 |
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|
2017 |
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|
(in thousands) |
|
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Revenues:
|
|
|
|
|
|
|
|
|
|
Premiums earned:
|
|
|
|
|
|
|
|
|
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Commercial lines
|
|
$ |
251,029 |
|
|
$ |
236,437 |
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Personal lines
|
|
|
304,111 |
|
|
|
285,018 |
|
|
|
|
|
|
|
|
|
|
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Premiums earned
|
|
|
555,140 |
|
|
|
521,455 |
|
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Net investment income
|
|
|
19,341 |
|
|
|
17,385 |
|
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Realized investment gains
|
|
|
4,062 |
|
|
|
4,208 |
|
|
Equity in earnings of DFSC
|
|
|
2,153 |
|
|
|
1,023 |
|
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Other
|
|
|
4,326 |
|
|
|
4,197 |
|
|
|
|
|
|
|
|
|
|
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Total revenues
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|
$ |
585,022 |
|
|
$ |
548,268 |
|
|
|
|
|
|
|
|
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(Loss) income before income tax (benefit) expense:
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|
|
|
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Underwriting (loss) income:
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|
|
|
|
|
|
|
|
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Commercial lines
|
|
$ |
(17,935 |
) |
|
$ |
12,670 |
|
|
Personal lines
|
|
|
(42,358 |
) |
|
|
(31,816 |
) |
|
|
|
|
|
|
|
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|
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SAP underwriting loss
|
|
|
(60,293 |
) |
|
|
(19,146 |
) |
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GAAP adjustments
|
|
|
5,106 |
|
|
|
6,423 |
|
|
|
|
|
|
|
|
|
|
|
GAAP underwriting loss
|
|
|
(55,187 |
) |
|
|
(12,723 |
) |
|
Net investment income
|
|
|
19,341 |
|
|
|
17,385 |
|
|
Realized investment gains
|
|
|
4,062 |
|
|
|
4,208 |
|
|
Equity in earnings of DFSC
|
|
|
2,153 |
|
|
|
1,023 |
|
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Other
|
|
|
1,040 |
|
|
|
1,947 |
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income tax (benefit) expense
|
|
$ |
(28,591 |
) |
|
$ |
11,840 |
|
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