14. SEGMENT INFORMATION

The Company's primary business operations include insurance products and services in three property and casualty operating segments. These segments are Commercial Lines, Personal Lines, and Other Property and Casualty. Commercial Lines includes commercial multiple peril, commercial automobile, workers' compensation, and other commercial coverages, such as specialty program business, inland marine, bonds, professional liability and management liability, while Personal Lines includes personal automobile, homeowners and other personal coverages. The Other Property and Casualty segment consists of: Opus Investment Management, Inc., which markets investment management services to institutions, pension funds and other organizations; earnings on holding company assets; as well as voluntary pools business which is in run-off. Additionally, prior to the sale of FAFLIC on January 2, 2009, the operations included the results of this run-off life insurance and annuity business as a separate segment. This business is now reflected as discontinued operations. Certain ongoing expenses were also reclassified from this former life segment to the Property and Casualty business. The separate financial information of each segment is presented consistent with the way results are regularly evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

The Company reports interest expense related to its debt separately from the earnings of its operating segments. The Company's debt consists of senior debentures, junior subordinated debentures, advances under the Company's collateralized borrowing program with the FHLBB, capital securities and surplus notes.

Management evaluates the results of the aforementioned segments on a pre-tax basis. Segment income excludes certain items which are included in net income, such as federal income taxes and net realized investment gains and losses, because fluctuations in these gains and losses are determined by interest rates, financial markets and the timing of sales. Also, segment income excludes net gains and losses on disposals of businesses, discontinued operations, restructuring costs, extraordinary items, the cumulative effect of accounting changes and certain other items. Although the items excluded from segment income may be significant components in understanding and assessing the Company's financial performance, management believes that the presentation of segment income enhances an investor's understanding of the Company's results of operations by highlighting net income attributable to the core operations of the business. However, segment income should not be construed as a substitute for net income determined in accordance with generally accepted accounting principles.

Summarized below is financial information with respect to business segments:


FOR THE YEARS ENDED DECEMBER 31	2010			2009			2008
*(In millions)*
Segment revenues:
Property and Casualty:
Commercial Lines	$	1,522.3		$	1,228.8		$	1,154.8
Personal Lines		1,583.8			1,585.3			1,607.4
Other Property and Casualty		21.0			22.6			21.6

Total Property and Casualty		3,127.1			2,836.7			2,783.8
Intersegment revenues		(4.6	)		(4.0	)		(5.6	)

Total segment revenues		3,122.5			2,832.7			2,778.2
Adjustments to segment revenues:
Net realized investment gains (losses)		29.7			1.4			(97.8	)

Total revenues	$	3,152.2		$	2,834.1		$	2,680.4

Segment income before federal income taxes:
Property and Casualty:
Commercial Lines:
GAAP underwriting (loss) income	$	(20.6	)	$	60.9		$	39.8
Net investment income		129.9			125.6			124.4
Other		1.9			3.2			5.5

Commercial Lines segment income		111.2			189.7			169.7

Personal Lines:
GAAP underwriting income (loss)		1.6			(43.6	)		(7.7	)
Net investment income		102.9			109.6			118.9
Other		8.5			10.4			12.3

Personal Lines segment income		113.0			76.4			123.5

Other Property and Casualty:
GAAP underwriting income		0.8			11.7			1.2
Net investment income		14.4			16.5			14.7
Other net expenses		(11.7	)		(24.2	)		(6.9	)

Other Property and Casualty segment income		3.5			4.0			9.0

Total Property and Casualty		227.7			270.1			302.2
Interest on debt		(44.3	)		(35.1	)		(39.9	)

Segment income before federal income taxes		183.4			235.0			262.3
Adjustments to segment income:
Net realized investment gains (losses)		29.7			1.4			(97.8	)
(Loss) gain on retirement of debt		(2.0	)		34.5			—
Other items		—			—			(0.1	)

Income from continuing operations before federal income taxes	$	211.1		$	270.9		$	164.4


DECEMBER 31	*2010*			*2009*
*(In millions)*	*Identifiable Assets*
Property and Casualty ⁽¹⁾	$	8,449.1		$	7,922.6
Assets of discontinued operations ⁽²⁾		133.6			130.6
Intersegment eliminations		(12.8	)		(10.5	)

Total	$	8,569.9		$	8,042.7

⁽¹⁾	The Company reviews assets based on the total Property and Casualty Group and does not allocate between the Commercial Lines, Personal Lines and Other Property and Casualty segments.

⁽²⁾	Includes assets related to the Company's discontinued accident and health insurance business.