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Segment Information (Tables)
 3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Reconciliation of Revenue and operating Income from Segments to Consolidated
Following are the operating results for the respective periods:
 
Three Months Ended March 31,
 
2017
 
2016
(millions)
Revenues
 
Pretax
Profit
(Loss)
 
Revenues
 
Pretax
Profit
(Loss)
Personal Lines
 
 
 
 
 
 
 
Agency
$
2,631.5

 
$
249.7

 
$
2,347.9

 
$
171.4

Direct
2,523.7

 
175.3

 
2,220.7

 
79.5

Total Personal Lines1
5,155.2

 
425.0

 
4,568.6

 
250.9

Commercial Lines
645.5

 
67.4

 
548.8

 
61.1

Property2
226.0

 
7.8

 
200.0

 
(24.5
)
Other indemnity
0

 
(0.2
)
 
0

 
(0.7
)
Total underwriting operations
6,026.7

 
500.0

 
5,317.4

 
286.8

Fees and other revenues3
85.2

 
NA

 
78.9

 
NA

Service businesses
28.5

 
2.6

 
25.0

 
3.4

Investments4
181.1

 
175.5

 
136.2

 
131.4

Gains on extinguishment of debt
0.2

 
0.2

 
0

 
0

Interest expense
NA

 
(36.8
)
 
NA

 
(34.2
)
Consolidated total
$
6,321.7

 
$
641.5

 
$
5,557.5

 
$
387.4

NA = Not applicable
1 Personal auto insurance accounted for 93% and 92% of the total Personal Lines segment net premiums earned in the first quarters of 2017 and 2016, respectively; insurance for our special lines products (e.g., motorcycles, watercraft, and RVs) accounted for the balance of the Personal Lines net premiums earned.
2 For both the three months ended March 31, 2017 and 2016, pretax profit (loss) also includes $15.5 million of amortization expense predominately associated with the acquisition of a controlling interest in ARX.
3 Pretax profit (loss) for fees and other revenues are attributable to operating segments.
4 Revenues represent recurring investment income and total net realized gains (losses) on securities; pretax profit is net of investment expenses.
Underwriting Margins and Combined Ratios for our Underwriting Operations
Following are the underwriting margins and combined ratios for our underwriting operations for the respective periods:
 
 
Three Months Ended March 31,
 
2017
 
2016
 
Under-writing
Margin
 
Combined
Ratio
 
Under-writing
Margin
 
Combined
Ratio
Personal Lines
 
 
 
 
 
 
 
Agency
9.5
%
 
90.5
 
7.3
 %
 
92.7
Direct
6.9

 
93.1
 
3.6

 
96.4
Total Personal Lines
8.2

 
91.8
 
5.5

 
94.5
Commercial Lines
10.4

 
89.6
 
11.1

 
88.9
Property1
3.4

 
96.6
 
(12.2)

 
112.2
Other indemnity2
 NM

 
NM
 
 NM

 
NM
Total underwriting operations
8.3

 
91.7
 
5.4

 
94.6

1 Included in the three months ended March 31, 2017 and 2016, is 6.9 points and 7.8 points, respectively, of amortization expense predominately associated with the acquisition of a controlling interest in ARX.
2 Underwriting margins and combined ratios are not meaningful (NM) for our other indemnity businesses due to the low level of premiums earned by, and the variability of loss costs in, such businesses.