| Business Segments |
Note 11 - Business Segments The Company is engaged, through its subsidiaries, in the property and casualty insurance and life and health insurance businesses. The Company conducts its operations through two operating segments: Property & Casualty Insurance and Life & Health Insurance. The Property & Casualty Insurance segment’s principal products are personal automobile insurance, both preferred and nonstandard, homeowners insurance, other personal insurance and commercial automobile insurance. These products are distributed primarily through independent agents and brokers. The Life & Health Insurance segment’s principal products are individual life, accident, supplemental health and property insurance. These products are distributed by career agents employed by the Company and independent agents and brokers. Earned Premiums by product line for the nine and three months ended September 30, 2018 and 2017 were: | | | | | | | | | | | | | | | | | | | | Nine Months Ended | | Three Months Ended | (Dollars in Millions) | | Sep 30,
2018 | | Sep 30,
2017 | | Sep 30,
2018 | | Sep 30,
2017 | Personal Automobile | | $ | 1,554.0 |
| | $ | 1,012.8 |
| | $ | 766.7 |
| | $ | 353.0 |
| Homeowners | | 186.5 |
| | 199.6 |
| | 62.5 |
| | 66.7 |
| Other Personal Property and Casualty Insurance | | 83.4 |
| | 87.0 |
| | 27.7 |
| | 28.9 |
| Commercial Automobile | | 80.6 |
| | 38.5 |
| | 55.9 |
| | 13.1 |
| Life | | 284.3 |
| | 285.6 |
| | 95.2 |
| | 94.5 |
| Accident and Health | | 132.0 |
| | 120.6 |
| | 44.9 |
| | 42.0 |
| Total Earned Premiums | | $ | 2,320.8 |
| | $ | 1,744.1 |
| | $ | 1,052.9 |
| | $ | 598.2 |
|
Note 11 - Business Segments (continued) Segment Revenues, including a reconciliation to Total Revenues, for the nine and three months ended September 30, 2018 and 2017 were: | | | | | | | | | | | | | | | | | | | | Nine Months Ended | | Three Months Ended | (Dollars in Millions) | | Sep 30,
2018 | | Sep 30,
2017 | | Sep 30,
2018 | | Sep 30,
2017 | Revenues: | | | | | | | | | Property & Casualty Insurance: | | | | | | | | | Earned Premiums | | $ | 1,851.5 |
| | $ | 1,283.1 |
| | $ | 895.2 |
| | $ | 443.5 |
| Net Investment Income | | 79.4 |
| | 72.5 |
| | 34.0 |
| | 27.8 |
| Other Income | | 1.6 |
| | 0.9 |
| | 0.9 |
| | 0.4 |
| Total Property & Casualty Insurance | | 1,932.5 |
| | 1,356.5 |
| | 930.1 |
| | 471.7 |
| Life & Health Insurance: | | | | | | | | | Earned Premiums | | 469.3 |
| | 461.0 |
| | 157.7 |
| | 154.7 |
| Net Investment Income | | 157.9 |
| | 163.8 |
| | 50.5 |
| | 55.9 |
| Other Income | | 2.9 |
| | 1.9 |
| | 1.2 |
| | 0.7 |
| Total Life & Health Insurance | | 630.1 |
| | 626.7 |
| | 209.4 |
| | 211.3 |
| Total Segment Revenues | | 2,562.6 |
| | 1,983.2 |
| | 1,139.5 |
| | 683.0 |
| Income from Change in Fair Value of Equity Securities | | 12.1 |
| | — |
| | 11.0 |
| | — |
| Net Realized Gains on Sales of Investments | | 10.0 |
| | 45.0 |
| | 3.6 |
| | 8.1 |
| Net Impairment Losses Recognized in Earnings | | (2.3 | ) | | (10.5 | ) | | (1.8 | ) | | (2.9 | ) | Other | | 48.0 |
| | 8.4 |
| | 43.2 |
| | 2.1 |
| Total Revenues | | $ | 2,630.4 |
| | $ | 2,026.1 |
| | $ | 1,195.5 |
| | $ | 690.3 |
|
Segment Operating Profit, including a reconciliation to Income from Continuing Operations before Income Taxes, for the nine and three months ended September 30, 2018 and 2017 was: | | | | | | | | | | | | | | | | | | | | Nine Months Ended | | Three Months Ended | (Dollars in Millions) | | Sep 30,
2018 | | Sep 30,
2017 | | Sep 30,
2018 | | Sep 30,
2017 | Segment Operating Profit (Loss): | | | | | | | | | Property & Casualty Insurance | | $ | 96.9 |
| | $ | (2.2 | ) | | $ | 34.2 |
| | $ | 30.8 |
| Life & Health Insurance | | 96.3 |
| | 99.8 |
| | 33.0 |
| | 36.0 |
| Total Segment Operating Profit (Loss) | | 193.2 |
| | 97.6 |
| | 67.2 |
| | 66.8 |
| Corporate and Other Operating Profit (Loss) From: | | | | | | | | | Partial Satisfaction of Judgment | | 35.7 |
| | — |
| | 35.7 |
| | — |
| Other | | (17.7 | ) | | (15.2 | ) | | (7.0 | ) | | (3.7 | ) | Total Corporate and Other Operating Profit (Loss) | | 18.0 |
| | (15.2 | ) | | 28.7 |
| | (3.7 | ) | Income from Change in Fair Value of Equity Securities | | 12.1 |
| | — |
| | 11.0 |
| | — |
| Net Realized Gains on Sales of Investments | | 10.0 |
| | 45.0 |
| | 3.6 |
| | 8.1 |
| Net Impairment Losses Recognized in Earnings | | (2.3 | ) | | (10.5 | ) | | (1.8 | ) | | (2.9 | ) | Acquisition Related Transaction, Integration and Other Costs | | (38.0 | ) | | — |
| | (28.2 | ) | | — |
| Income from Continuing Operations before Income Taxes | | $ | 193.0 |
| | $ | 116.9 |
| | $ | 80.5 |
| | $ | 68.3 |
|
Note 11 - Business Segments (continued) Segment Net Operating Income, including a reconciliation to Income from Continuing Operations, for the nine and three months ended September 30, 2018 and 2017 was: | | | | | | | | | | | | | | | | | | | | Nine Months Ended | | Three Months Ended | (Dollars in Millions and Net of Income Taxes) | | Sep 30,
2018 | | Sep 30,
2017 | | Sep 30,
2018 | | Sep 30,
2017 | Segment Net Operating Income: | | | | | | | | | Property & Casualty Insurance | | $ | 79.4 |
| | $ | 5.7 |
| | $ | 28.2 |
| | $ | 22.9 |
| Life & Health Insurance | | 76.9 |
| | 65.5 |
| | 26.7 |
| | 23.5 |
| Total Segment Net Operating Income | | 156.3 |
| | 71.2 |
| | 54.9 |
| | 46.4 |
| Corporate and Other Net Operating Income (Loss) From: | | | | | | | | | Effects of Tax Reform | | 26.0 |
| | — |
| | 26.0 |
| | — |
| Partial Satisfaction of Judgment | | 28.2 |
| | — |
| | 28.2 |
| | — |
| Other | | (12.0 | ) | | (9.7 | ) | | (4.6 | ) | | (2.0 | ) | Total Corporate and Other Net Operating Income (Loss) | | 42.2 |
| | (9.7 | ) | | 49.6 |
| | (2.0 | ) | Net Income (Loss) From: | | | | | | | | | Income from Change in Fair Value of Equity Securities | | 9.6 |
| | — |
| | 8.7 |
| | — |
| Net Realized Gains on Sales of Investments | | 7.9 |
| | 29.3 |
| | 2.8 |
| | 5.3 |
| Net Impairment Losses Recognized in Earnings | | (1.8 | ) | | (6.8 | ) | | (1.4 | ) | | (1.9 | ) | Acquisition Related Transaction, Integration and Other Costs | | (30.8 | ) | | — |
| | (22.3 | ) | | — |
| Income from Continuing Operations | | $ | 183.4 |
| | $ | 84.0 |
| | $ | 92.3 |
| | $ | 47.8 |
|
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