Business Segments

3 Months Ended

Mar. 31, 2022

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 personal automobile insurance and commercial automobile insurance. The Preferred Property & Casualty Insurance segment’s principal products are personal 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.

Earned Premiums by product line for the three months ended March 31, 2022 and 2021 were:

	Three Months Ended
(Dollars in Millions)	Mar 31, 2022		Mar 31, 2021
Specialty Property & Casualty Insurance:
Personal Automobile	$	901.7	$	785.4
Commercial Automobile	119.9		92.2
Preferred Property & Casualty Insurance:
Personal Automobile	96.0		103.0
Homeowners	51.3		50.8
Other Personal Lines	8.3		8.4
Life & Health Insurance:
Life	101.3		98.1
Accident and Health	45.8		47.4
Property	14.3		15.5
Total Earned Premiums	$	1,338.6	$	1,200.8

Note 4 - Business Segments (Continued)

Segment Revenues, including a reconciliation to Total Revenues, for the three months ended March 31, 2022 and 2021 were:

	Three Months Ended
(Dollars in Millions)	Mar 31, 2022		Mar 31, 2021
Segment Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums	$	1,021.6	$	877.6
Net Investment Income	34.9		35.0
Change in Value of Alternative Energy Partnership Investments	(8.4)		(7.3)
Other Income	1.7		0.9
Total Specialty Property & Casualty Insurance	1,049.8		906.2
Preferred Property & Casualty Insurance:
Earned Premiums	155.6		162.2
Net Investment Income	12.5		15.9
Change in Value of Alternative Energy Partnership Investments	(3.9)		(4.1)
Total Preferred Property & Casualty Insurance	164.2		174.0
Life & Health Insurance:
Earned Premiums	161.4		161.0
Net Investment Income	49.4		51.1
Change in Value of Alternative Energy Partnership Investments	(4.4)		(4.0)
Other Income	—		0.1
Total Life & Health Insurance	206.4		208.2
Total Segment Revenues	1,420.4		1,288.4
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	(28.2)		52.2
Net Realized Gains on Sales of Investments	1.5		13.8
Net Impairment Losses Recognized in Earnings	(8.9)		(4.0)
Other	3.9		1.6
Total Revenues	$	1,388.7	$	1,352.0

Note 4 - Business Segments (Continued)

Segment Operating Income (Loss), including a reconciliation to Income (Loss) before Income Taxes, for the three months ended March 31, 2022 and 2021 was:

	Three Months Ended
(Dollars in Millions)	Mar 31, 2022		Mar 31, 2021
Segment Operating Income (Loss):
Specialty Property & Casualty Insurance	$	(60.2)	$	85.2
Preferred Property & Casualty Insurance	(9.5)		3.0
Life & Health Insurance	1.2		(0.8)
Total Segment Operating Income (Loss)	(68.5)		87.4
Corporate and Other Operating Income (Loss) From:
Other	(14.0)		(11.5)
Corporate and Other Operating Income (Loss)	(14.0)		(11.5)
Adjusted Consolidated Operating Income (Loss)	(82.5)		75.9
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	(28.2)		52.2
Net Realized Gains on Sales of Investments	1.5		13.8
Impairment Losses	(8.9)		(4.0)
Acquisition Related Transaction, Integration and Other Costs	(4.7)		(16.3)
Loss from Early Extinguishment of Debt	(3.7)		—
Income (Loss) before Income Taxes	$	(126.5)	$	121.6

Segment Net Operating Income (Loss), including a reconciliation to Net Income (Loss), for the three months ended March 31, 2022 and 2021 was:

	Three Months Ended
(Dollars in Millions and Net of Income Taxes)	Mar 31, 2022		Mar 31, 2021
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance	$	(44.7)	$	80.1
Preferred Property & Casualty Insurance	(6.1)		9.6
Life & Health Insurance	3.1		7.3
Total Segment Net Operating Income (Loss)	(47.7)		97.0
Corporate and Other Net Operating Income (Loss) From:
Other	(12.4)		(9.8)
Total Corporate and Other Net Operating Income (Loss)	(12.4)		(9.8)
Adjusted Consolidated Net Operating Income (Loss)	(60.1)		87.2
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	(22.3)		41.2
Net Realized Gains on Sales of Investments	1.2		10.9
Impairment Losses	(7.0)		(3.2)
Acquisition Related Transaction, Integration and Other Costs	(3.7)		(12.9)
Loss from Early Extinguishment of Debt	(2.9)		—
Net Income (Loss)	$	(94.8)	$	123.2