SEGMENT INFORMATION

The Company’s operations consist of a property and casualty insurance segment and a reinsurance segment. The property and casualty insurance segment writes both commercial and personal lines of insurance, with a focus on medium-sized commercial accounts. The reinsurance segment provides reinsurance for other insurers and reinsurers. The segments are managed separately due to differences in the insurance products sold and the business environments in which they operate. Management evaluates the performance of its insurance segments using financial measurements based on Statutory Accounting Principles (SAP) instead of GAAP. Such measures include premiums written, premiums earned, statutory underwriting profit (loss), and investment results, as well as loss and loss adjustment expense ratios, trade underwriting expense ratios, and combined ratios.

Summarized financial information for the Company’s segments is as follows:



Three months ended June 30, 2018	Property and casualty insurance			Reinsurance			Parent company			Consolidated
($ in thousands)	Property and casualty insurance			Reinsurance			Parent company			Consolidated
Premiums earned	$	121,495		$	36,451		$	—		$	157,946

Underwriting profit (loss):
SAP underwriting profit (loss)	(20,184		)	3,707			—			(16,477		)
GAAP adjustments	1,921			(855		)	—			1,066
GAAP underwriting profit (loss)	(18,263		)	2,852			—			(15,411		)

Net investment income	8,410			3,360			8			11,778
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments	(4,692		)	(1,168		)	—			(5,860		)
Other income (loss)	2,095			678			—			2,773
Interest expense	171			—			—			171
Other expenses	244			—			587			831
Income (loss) before income tax expense (benefit)	$	(12,865	)	$	5,722		$	(579	)	$	(7,722	)



Three months ended June 30, 2017	Property and casualty insurance			Reinsurance			Parent company			Consolidated
($ in thousands)	Property and casualty insurance			Reinsurance			Parent company			Consolidated
Premiums earned	$	116,187		$	33,650		$	—		$	149,837

Underwriting profit (loss):
SAP underwriting profit (loss)	(8,892		)	218			—			(8,674		)
GAAP adjustments	2,006			(805		)	—			1,201
GAAP underwriting profit (loss)	(6,886		)	(587		)	—			(7,473		)

Net investment income	7,958			3,201			12			11,171
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments	3,738			(351		)	—			3,387
Other income (loss)	1,559			(528		)	—			1,031
Interest expense	85			—			—			85
Other expenses	231			—			571			802
Income (loss) before income tax expense (benefit)	$	6,053		$	1,735		$	(559	)	$	7,229



Six months ended June 30, 2018	Property and casualty insurance			Reinsurance			Parent company			Consolidated
($ in thousands)	Property and casualty insurance			Reinsurance			Parent company			Consolidated
Premiums earned	$	240,127		$	73,605		$	—		$	313,732

Underwriting profit (loss):
SAP underwriting profit (loss)	(29,220		)	5,270			—			(23,950		)
GAAP adjustments	2,183			(753		)	—			1,430
GAAP underwriting profit (loss)	(27,037		)	4,517			—			(22,520		)

Net investment income	16,558			6,578			13			23,149
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments	(7,985		)	(3,268		)	—			(11,253		)
Other income (loss)	4,146			242			—			4,388
Interest expense	313			—			—			313
Other expenses	477			—			1,224			1,701
Income (loss) before income tax expense (benefit)	$	(15,108	)	$	8,069		$	(1,211	)	$	(8,250	)

Assets	$	1,176,071		$	477,701		$	568,324		$	2,222,096
Eliminations	—			—			(562,043		)	(562,043		)
Reclassifications	—			(745		)	—			(745		)
Total assets	$	1,176,071		$	476,956		$	6,281		$	1,659,308



Six months ended June 30, 2017	Property and casualty insurance			Reinsurance			Parent company			Consolidated
($ in thousands)	Property and casualty insurance			Reinsurance			Parent company			Consolidated
Premiums earned	$	229,835		$	64,489		$	—		$	294,324

Underwriting profit (loss):
SAP underwriting profit (loss)	(11,486		)	3,465			—			(8,021		)
GAAP adjustments	(281		)	(1,136		)	—			(1,417		)
GAAP underwriting profit (loss)	(11,767		)	2,329			—			(9,438		)

Net investment income	15,973			6,184			21			22,178
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments	3,141			(381		)	—			2,760
Other income (loss)	3,000			(1,099		)	—			1,901
Interest expense	169			—			—			169
Other expenses	410			—			1,153			1,563
Income (loss) before income tax expense (benefit)	$	9,768		$	7,033		$	(1,132	)	$	15,669

Year ended December 31, 2017
Assets	$	1,200,636		$	484,678		$	604,105		$	2,289,419
Eliminations	—			—			(599,036		)	(599,036		)
Reclassifications	(1,393		)	(6,273		)	(777		)	(8,443		)
Total assets	$	1,199,243		$	478,405		$	4,292		$	1,681,940

The following table displays the premiums earned for the property and casualty insurance segment and the reinsurance segment for the three and six months ended June 30, 2018 and 2017, by line of insurance.



	Three months ended June 30,				Six months ended June 30,
($ in thousands)	2018		2017		2018		2017
Property and casualty insurance segment
Commercial lines:
Automobile	$	31,660	$	29,014	$	62,304	$	57,046
Property	27,196		26,069		53,788		51,571
Workers' compensation	25,229		25,343		50,131		50,046
Other liability	25,591		24,254		50,553		48,382
Other	2,228		2,197		4,414		4,306
Total commercial lines	111,904		106,877		221,190		211,351

Personal lines	9,591		9,310		18,937		18,484
Total property and casualty insurance	$	121,495	$	116,187	$	240,127	$	229,835

Reinsurance segment
Pro rata reinsurance	$	10,070	$	12,016	$	23,143	$	22,451
Excess of loss reinsurance	26,381		21,634		50,462		42,038
Total reinsurance	$	36,451	$	33,650	$	73,605	$	64,489

Consolidated	$	157,946	$	149,837	$	313,732	$	294,324