XML 26 R16.htm IDEA: XBRL DOCUMENT v3.22.2
Segment Information
 6 Months Ended
Jun. 30, 2022
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 based on before and after-tax underwriting results (net premiums earned, incurred loss and loss expense, policyholder dividends, policy acquisition costs, and other underwriting expenses), return on equity ("ROE") contribution, and 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, which are not included in non-GAAP operating income, 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 SegmentQuarter ended June 30,Six Months ended June 30,
($ in thousands)2022202120222021
Standard Commercial Lines:  
Net premiums earned:  
General liability$226,285 197,293 $442,610 390,813 
Commercial automobile198,381 178,028 392,211 349,909 
Commercial property123,562 106,113 243,624 208,923 
Workers compensation83,502 74,337 168,182 152,527 
Businessowners' policies31,508 29,311 61,552 57,938 
Bonds10,682 8,993 21,042 17,586 
Other6,317 5,679 12,485 11,199 
Miscellaneous income2,596 5,795 3,697 9,502 
Total Standard Commercial Lines revenue682,833 605,549 1,345,403 1,198,397 
Standard Personal Lines:
Net premiums earned:
Personal automobile39,952 41,009 79,668 82,402 
Homeowners31,630 30,570 62,817 61,168 
Other1,756 1,714 3,495 3,544 
Miscellaneous income441 417 869 822 
Total Standard Personal Lines revenue73,779 73,710 146,849 147,936 
E&S Lines:
Net premiums earned:
Casualty lines56,041 47,642 110,665 91,475 
Property lines24,823 19,829 48,371 37,994 
Total E&S Lines revenue80,864 67,471 159,036 129,469 
Investments:    
Net investment income 70,222 83,731 142,824 153,447 
Net realized and unrealized investment (losses) gains(42,880)10,057 (83,232)15,176 
Total Investments revenue27,342 93,788 59,592 168,623 
Total revenues $864,818 840,518 $1,710,880 1,644,425 

Income Before and After Federal Income TaxQuarter ended June 30,Six Months ended June 30,
($ in thousands)2022202120222021
Standard Commercial Lines:  
Underwriting income, before federal income tax$46,708 67,938 $89,092 137,437 
Underwriting income, after federal income tax36,899 53,671 70,383 108,575 
Combined ratio93.1 %88.7 93.4 88.4 
ROE contribution6.0 8.2 5.5 8.3 
Standard Personal Lines:
Underwriting (loss) income, before federal income tax$(12,367)5,644 $(5,847)13,339 
Underwriting (loss) income, after federal income tax(9,770)4,459 (4,619)10,538 
Combined ratio116.9 %92.3 104.0 90.9 
ROE contribution(1.6)0.7 (0.4)0.8 
E&S Lines:
Underwriting income, before federal income tax$3,372 2,306 $10,297 2,822 
Underwriting income, after federal income tax2,664 1,822 8,135 2,229 
Combined ratio95.8 %96.6 93.5 97.8 
ROE contribution0.4 0.3 0.6 0.2 
Investments:  
Net investment income earned$70,222 83,731 $142,824 153,447 
Net realized and unrealized investment (losses) gains(42,880)10,057 (83,232)15,176 
Total investments segment income, before federal income tax27,342 93,788 59,592 168,623 
Tax on investments segment income4,559 18,402 10,172 32,850 
Total investments segment income, after federal income tax$22,783 75,386 $49,420 135,773 
ROE contribution of after-tax net investment income earned9.1 10.3 8.9 9.5 
Reconciliation of Segment Results to Income Before Federal Income TaxQuarter ended June 30,Six Months ended June 30,
($ in thousands)2022202120222021
Underwriting income (loss)
Standard Commercial Lines$46,708 67,938 $89,092 137,437 
Standard Personal Lines(12,367)5,644 (5,847)13,339 
E&S Lines3,372 2,306 10,297 2,822 
Investment income27,342 93,788 59,592 168,623 
Total all segments65,055 169,676 153,134 322,221 
Interest expense(7,252)(7,366)(14,420)(14,725)
Corporate expenses(7,899)(9,112)(18,920)(18,666)
Income, before federal income tax$49,904 153,198 $119,794 288,830 
Preferred stock dividends(2,300)(2,300)(4,600)(4,753)
Income available to common stockholders, before federal income tax$47,604 150,898 $115,194 284,077