Segment Reporting The Company operates as a single reportable segment, Insurance Operations, through our wholly owned subsidiaries. In the fourth quarter of 2023, the Company developed and executed an integration plan to consolidate our previously segregated direct-to-consumer operations (Cerity) into the Company's mainstream operations, while retaining our digital distribution capabilities. The integration plan, which will allow the Company to operate more efficiently and generate cost savings, resulted in a change in the composition of our reportable segments by eliminating any distinction, including stand-alone financial statements, among our former segments, which were: Employers and Cerity. The Insurance Operations segment represents the traditional business offered through its agents, including business originated from the Company's strategic partnerships and alliances and also direct-to-customer business. The following table summarizes the Company's written premiums and components of net income. All periods prior to December 31, 2023 have been conformed to the current presentation. | | | | | | | | | | | | | | | | | Insurance Operations | | Total | | | (in millions) | Year Ended December 31, 2023 | | | | | Gross premiums written | | $ | 767.7 | | | $ | 767.7 | | Net premiums written | | 760.6 | | | 760.6 | | | | | | | Net premiums earned | | 721.9 | | | 721.9 | | Net investment income | | 106.5 | | | 106.5 | | Net realized and unrealized gains on investments | | 22.7 | | | 22.7 | | | | | | | Other (loss) income | | (0.2) | | | (0.2) | | Total revenues | | 850.9 | | | 850.9 | | | | | | | Losses and loss adjustment expenses | | 405.7 | | | 405.7 | | Commission expense | | 100.0 | | | 100.0 | | Underwriting and general and administrative expenses | | 180.0 | | | 180.0 | | Interest and financing expenses | | 5.8 | | | 5.8 | | Other expenses | | 11.0 | | | 11.0 | | Total expenses | | 702.5 | | | 702.5 | | | | | | | Net income before income taxes | | 148.4 | | | 148.4 | | Income tax expense | | 30.3 | | | 30.3 | | Net income | | $ | 118.1 | | | $ | 118.1 | |
| | | | | | | | | | | | | | | | | Insurance Operations | | Total | | | (in millions) | Year Ended December 31, 2022 | | | | | Gross premiums written | | $ | 714.2 | | | $ | 714.2 | | Net premiums written | | 707.2 | | | 707.2 | | | | | | | Net premiums earned | | 675.2 | | | 675.2 | | Net investment income | | 89.8 | | | 89.8 | | Net realized and unrealized (losses) on investments | | (51.8) | | | (51.8) | | | | | | | Other income | | 0.3 | | | 0.3 | | Total revenues | | 713.5 | | | 713.5 | | | | | | | Losses and loss adjustment expenses | | 391.0 | | | 391.0 | | Commission expense | | 95.9 | | | 95.9 | | Underwriting and general and administrative expenses | | 167.3 | | | 167.3 | | Interest and financing expenses | | 3.5 | | | 3.5 | | | | | | | Total expenses | | 657.7 | | | 657.7 | | | | | | | Net income before income taxes | | 55.8 | | | 55.8 | | Income tax expense | | 7.4 | | | 7.4 | | Net income | | $ | 48.4 | | | $ | 48.4 | |
| | | | | | | | | | | | | | | | | Insurance Operations | | Total | | | (in millions) | Year Ended December 31, 2021 | | | | | Gross premiums written | | $ | 589.7 | | | $ | 589.7 | | Net premiums written | | 583.1 | | | 583.1 | | | | | | | Net premiums earned | | 574.4 | | | 574.4 | | Net investment income | | 72.7 | | | 72.7 | | Net realized and unrealized gains on investments | | 54.6 | | | 54.6 | | | | | | | Other income | | 1.4 | | | 1.4 | | Total revenues | | 703.1 | | | 703.1 | | | | | | | Losses and loss adjustment expenses | | 315.2 | | | 315.2 | | Commission expense | | 76.1 | | | 76.1 | | Other underwriting expenses | | 160.2 | | | 160.2 | | Interest and financing expenses | | 0.5 | | | 0.5 | | Other expenses | | 4.1 | | | 4.1 | | Total expenses | | 556.1 | | | 556.1 | | | | | | | Net income before income taxes | | 147.0 | | | 147.0 | | Income tax expense | | 27.7 | | | 27.7 | | Net income | | $ | 119.3 | | | $ | 119.3 | |
Entity-Wide Disclosures The Company operates solely within the United States and does not have revenue from transactions with a single policyholder accounting for 10% or more of its revenues. The following table shows our in-force premiums, in-force premiums including estimated final audit premium, and number of policies in-force for each state of our largest states and all other states combined as of December 31: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2023 | | 2022 | | 2021 | State | | In-force Premiums | | Policies In-force | | In-force Premiums | | Policies In-force | | In-force Premiums | | Policies In-force | | | (dollars in millions) | California | | $ | 311.5 | | | 43,353 | | | $ | 279.7 | | | 42,876 | | | $ | 258.4 | | | 40,704 | | Florida | | 56.6 | | | 10,008 | | | 49.4 | | | 9,417 | | | 41.1 | | | 7,989 | | New York | | 31.9 | | | 7,603 | | | 27.3 | | | 7,497 | | | 24.5 | | | 7,307 | | | | | | | | | | | | | | | | | | | | | | | | | | | | Other (43 states and D.C.) | | 294.6 | | | 65,445 | | | 266.1 | | | 61,566 | | | 247.4 | | | 55,350 | | Total | | $ | 694.6 | | | 126,409 | | | $ | 622.5 | | | 121,356 | | | $ | 571.4 | | | 111,350 | | Estimated audit premium | | 45.6 | | | — | | | 39.5 | | | — | | | 42.3 | | | — | | Total, including estimated audit premium | | $ | 740.2 | | | 126,409 | | | $ | 662.0 | | | 121,356 | | | $ | 613.7 | | | 111,350 | |
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