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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:


	Three Months Ended September 30,
	2018			2017
	(in thousands)
Revenues:
Premiums earned:
Commercial lines	$	84,251		$	80,724
Personal lines		103,410			96,560

Premiums earned		187,661			177,284
Net investment income		6,620			5,980
Realized investment gains		3,464			561
Equity in earnings of DFSC		733			404
Other		1,426			1,487

Total revenues	$	199,904		$	185,716

Income before income tax expense:
Underwriting (loss) income:
Commercial lines	$	2,125		$	8,998
Personal lines		(12,210	)		(8,919	)

SAP underwriting (loss) income		(10,085	)		79
GAAP adjustments		332			644

GAAP underwriting (loss) income		(9,753	)		723
Net investment income		6,620			5,980
Realized investment gains		3,464			561
Equity in earnings of DFSC		733			404
Other		213			844

Income before income tax expense	$	1,277		$	8,512


	Nine Months Ended September 30,
	2018			2017
	(in thousands)
Revenues:
Premiums earned:
Commercial lines	$	251,029		$	236,437
Personal lines		304,111			285,018

Premiums earned		555,140			521,455
Net investment income		19,341			17,385
Realized investment gains		4,062			4,208
Equity in earnings of DFSC		2,153			1,023
Other		4,326			4,197

Total revenues	$	585,022		$	548,268

(Loss) income before income tax (benefit) expense:
Underwriting (loss) income:
Commercial lines	$	(17,935	)	$	12,670
Personal lines		(42,358	)		(31,816	)

SAP underwriting loss		(60,293	)		(19,146	)
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
Other		1,040			1,947

(Loss) income before income tax (benefit) expense	$	(28,591	)	$	11,840