Business Segments

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Business Segments

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 three operating segments: Specialty Property & Casualty Insurance, Preferred Property & Casualty Insurance and Life & Health Insurance.

The Specialty Property & Casualty Insurance segment’s principal products are specialty automobile insurance and commercial automobile insurance. The Preferred Property & Casualty Insurance segment’s principal products are preferred automobile insurance, homeowners insurance and other personal 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.

Note 3 - Business Segments (continued)

Earned Premiums by product line for the three months ended March 31, 2021 and 2020 were:

	Three Months Ended
(Dollars in Millions)	Mar 31, 2021		Mar 31, 2020
Specialty Property & Casualty Insurance:
Specialty Automobile	$	785.4	$	753.2
Commercial Automobile	92.2		69.3
Preferred Property & Casualty Insurance:
Personal Automobile	103.0		114.9
Homeowners	50.8		56.8
Other Personal Lines	8.4		9.2
Life & Health Insurance:
Life	98.1		97.2
Accident and Health	47.4		49.4
Property	15.5		16.4
Total Earned Premiums	$	1,200.8	$	1,166.4

Note 3 - Business Segments (continued)

Segment Revenues, including a reconciliation to Total Revenues, for the three months ended March 31, 2021 and 2020 were:

	Three Months Ended
(Dollars in Millions)	Mar 31, 2021		Mar 31, 2020
Segment Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums	$	877.6	$	822.5
Net Investment Income	35.0		28.8
Change in Value of Alternative Energy Partnership Investments	(7.3)		—
Other Income	0.9		0.9
Total Specialty Property & Casualty Insurance	906.2		852.2
Preferred Property & Casualty Insurance:
Earned Premiums	162.2		180.9
Net Investment Income	15.9		9.7
Change in Value of Alternative Energy Partnership Investments	(4.1)		—
Total Preferred Property & Casualty Insurance	174.0		190.6
Life & Health Insurance:
Earned Premiums	161.0		163.0
Net Investment Income	51.1		51.0
Change in Value of Alternative Energy Partnership Investments	(4.0)		—
Other Income	0.1		0.1
Total Life & Health Insurance	208.2		214.1
Total Segment Revenues	1,288.4		1,256.9
Income (Loss) from Change in Fair Value of Equity and Convertible    Securities	52.2		(117.8)
Net Realized Gains on Sales of Investments	13.8		16.5
Impairment Losses	(4.0)		(12.0)
Other	1.6		85.4
Total Revenues	$	1,352.0	$	1,229.0

Note 3 - Business Segments (continued)

Segment Operating Income, including a reconciliation to Income before Income Taxes, for the three months ended March 31, 2021 and 2020 was:

	Three Months Ended
(Dollars in Millions)	Mar 31, 2021		Mar 31, 2020
Segment Operating Income (Loss):
Specialty Property & Casualty Insurance	$	85.2	$	75.0
Preferred Property & Casualty Insurance	3.0		23.0
Life & Health Insurance	(0.8)		26.5
Total Segment Operating Income (Loss)	87.4		124.5
Corporate and Other Operating Income (Loss) From:
Partial Satisfaction of Judgment	—		89.4
Other	(11.5)		(11.1)
Corporate and Other Operating Income (Loss)	(11.5)		78.3
Adjusted Consolidated Operating Income (Loss)	75.9		202.8
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	52.2		(117.8)
Net Realized Gains on Sales of Investments	13.8		16.5
Impairment Losses	(4.0)		(12.0)
Acquisition Related Transaction, Integration and Other Costs	(16.3)		(11.8)
Income before Income Taxes	$	121.6	$	77.7

Segment Net Operating Income, including a reconciliation to Net Income, for the three months ended March 31, 2021 and 2020 was:

	Three Months Ended
(Dollars in Millions and Net of Income Taxes)	Mar 31, 2021		Mar 31, 2020
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance	$	80.1	$	60.1
Preferred Property & Casualty Insurance	9.6		18.4
Life & Health Insurance	7.3		22.3
Total Segment Net Operating Income (Loss)	97.0		100.8
Corporate and Other Net Operating Income (Loss) From:
Partial Satisfaction of Judgment	—		70.6
Other	(9.8)		(8.5)
Total Corporate and Other Net Operating Income (Loss)	(9.8)		62.1
Adjusted Consolidated Net Operating Income (Loss)	87.2		162.9
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	41.2		(93.1)
Net Realized Gains on Sales of Investments	10.9		13.0
Impairment Losses	(3.2)		(9.5)
Acquisition Related Transaction, Integration and Other Costs	(12.9)		(9.3)
Net Income	$	123.2	$	64.0