Segment Information

6 Months Ended

Jun. 30, 2024

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 on (i) before and after-tax 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 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 Segment	Quarter ended June 30,			Six Months ended June 30,
($ in thousands)	2024		2023	2024		2023
Standard Commercial Lines:
Net premiums earned:
General liability	$	280,097	254,510	$	553,512	497,859
Commercial automobile	260,652		225,067	512,372		442,438
Commercial property	168,511		141,348	330,064		276,640
Workers compensation	82,316		88,746	170,093		172,930
Businessowners' policies	41,641		34,385	81,562		67,556
Bonds	12,468		11,619	24,556		23,016
Other	7,808		7,034	15,444		13,885
Miscellaneous income	5,214		5,568	12,348		7,749
Total Standard Commercial Lines revenue	858,707		768,277	1,699,951		1,502,073
Standard Personal Lines:
Net premiums earned:
Personal automobile	57,544		48,230	114,504		93,144
Homeowners	46,055		36,902	90,168		71,915
Other	2,822		2,038	5,595		3,981
Miscellaneous income	594		536	1,235		989
Total Standard Personal Lines revenue	107,015		87,706	211,502		170,029
E&S Lines:
Net premiums earned:
Casualty lines	73,887		62,151	145,525		122,968
Property lines	46,430		30,120	87,780		58,154
Miscellaneous income	27		—	53		—
Total E&S Lines revenue	120,344		92,271	233,358		181,122
Investments:
Net investment income earned	108,642		97,696	216,491		189,202
Net realized and unrealized investment gains (losses)	1,297		(5,426)	(338)		(2,082)
Total Investments revenue	109,939		92,270	216,153		187,120
Total revenues	$	1,196,005	1,040,524	$	2,360,964	2,040,344

Income (Loss) Before and After Federal Income Tax	Quarter ended June 30,				Six Months ended June 30,
($ in thousands)	2024			2023	2024		2023
Standard Commercial Lines:
Underwriting income (loss), before federal income tax	$	(160,881)		22,146	$	(150,500)	61,067
Underwriting income (loss), after federal income tax	(127,096)			17,495	(118,895)		48,243
Combined ratio	118.8		%	97.1	108.9		95.9
ROE contribution	(18.4)			2.8	(8.6)		4.1
Standard Personal Lines:
Underwriting income (loss), before federal income tax	$	(19,301)		(23,060)	$	(24,636)	(36,133)
Underwriting income (loss), after federal income tax	(15,248)			(18,217)	(19,462)		(28,545)
Combined ratio	118.1		%	126.5	111.7		121.4
ROE contribution	(2.2)			(2.9)	(1.4)		(2.4)
E&S Lines:
Underwriting income (loss), before federal income tax	$	6,501		(612)	$	20,486	12,723
Underwriting income (loss), after federal income tax	5,136			(483)	16,184		10,051
Combined ratio	94.6		%	100.7	91.2		93.0
ROE contribution	0.7			(0.1)	1.2		0.8
Investments:
Net investment income earned	$	108,642		97,696	$	216,491	189,202
Net realized and unrealized investment gains (losses)	1,297			(5,426)	(338)		(2,082)
Total investments segment income, before federal income tax	109,939			92,270	216,153		187,120
Tax on investments segment income	22,652			18,745	44,518		37,901
Total investments segment income, after federal income tax	$	87,287		73,525	$	171,635	149,219
ROE contribution of after-tax net investment income earned	12.5			12.6	12.5		12.5

Reconciliation of Segment Results to Income (Loss) Before Federal Income Tax	Quarter ended June 30,			Six Months ended June 30,
($ in thousands)	2024		2023	2024		2023
Underwriting income (loss)
Standard Commercial Lines	$	(160,881)	22,146	$	(150,500)	61,067
Standard Personal Lines	(19,301)		(23,060)	(24,636)		(36,133)
E&S Lines	6,501		(612)	20,486		12,723
Investment income	109,939		92,270	216,153		187,120
Total all segments	(63,742)		90,744	61,503		224,777
Interest expense	(7,202)		(7,258)	(14,383)		(14,424)
Corporate expenses	(9,154)		(9,329)	(24,652)		(21,437)
Income (loss), before federal income tax	$	(80,098)	74,157	$	22,468	188,916
Preferred stock dividends	(2,300)		(2,300)	(4,600)		(4,600)
Income (loss) available to common stockholders, before federal income tax	$	(82,398)	71,857	$	17,868	184,316