Segment Information

3 Months Ended

Mar. 31, 2020

6 - 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 months ended March 31, 2020 and 2019 is as follows:


	Three Months Ended March 31,
	2020			2019
	(in thousands)
Revenues:
Premiums earned:
Commercial lines	$	101,775		$	91,481
Personal lines		85,478			96,592

Premiums earned		187,253			188,073
Net investment income		7,376			7,049
Investment (losses) gains		(10,695	)		18,097
Equity in earnings of DFSC		—			295
Other		977			1,200

Total revenues	$	184,911		$	214,714

Income before income tax expense:
Underwriting income (loss):
Commercial lines	$	(566	)	$	(1,688	)
Personal lines		4,811			2,473

SAP underwriting income		4,245			785
GAAP adjustments		1,385			551

GAAP underwriting income		5,630			1,336
Net investment income		7,376			7,049
Investment (losses) gains		(10,695	)		18,097
Equity in earnings of DFSC		—			295
Other		192			68

Income before income tax (benefit) expense	$	2,503		$	26,845