SEGMENT INFORMATION

The Company’s operations consist of a property and casualty insurance segment and a reinsurance segment. The property and casualty insurance segment writes both commercial and personal lines of insurance, with a focus on medium-sized commercial accounts. The reinsurance segment provides reinsurance for other insurers and reinsurers. The segments are managed separately due to differences in the insurance products sold and the business environments in which they operate. Management evaluates the performance of its insurance segments using financial measurements based on Statutory Accounting Principles (SAP) instead of GAAP. Such measures include premiums written, premiums earned, statutory underwriting profit (loss), and investment results, as well as loss and loss adjustment expense ratios, trade underwriting expense ratios, and combined ratios.

Summarized financial information for the Company’s segments is as follows:



Three months ended September 30, 2017	Property and casualty insurance			Reinsurance			Parent company			Consolidated
($ in thousands)	Property and casualty insurance			Reinsurance			Parent company			Consolidated
Premiums earned	$	120,472		$	34,718		$	—		$	155,190

Underwriting profit (loss):
SAP underwriting profit (loss)	1,927			(18,364		)	—			(16,437		)
GAAP adjustments	5,860			194			—			6,054
GAAP underwriting profit (loss)	7,787			(18,170		)	—			(10,383		)

Net investment income	8,252			3,237			12			11,501
Net realized investment gains (losses)	(108		)	(486		)	—			(594		)
Other income (loss)	179			(358		)	—			(179		)
Interest expense	84			—			—			84
Other expenses	170			—			531			701
Income (loss) before income tax expense (benefit)	$	15,856		$	(15,777	)	$	(519	)	$	(440	)



Three months ended September 30, 2016	Property and casualty insurance			Reinsurance			Parent company			Consolidated
($ in thousands)	Property and casualty insurance			Reinsurance			Parent company			Consolidated
Premiums earned	$	116,372		$	35,809		$	—		$	152,181

Underwriting profit (loss):
SAP underwriting profit (loss)	(8,081		)	689			—			(7,392		)
GAAP adjustments	2,970			35			—			3,005
GAAP underwriting profit (loss)	(5,111		)	724			—			(4,387		)

Net investment income	8,185			3,285			4			11,474
Net realized investment gains (losses)	(799		)	(393		)	—			(1,192		)
Other income (loss)	172			(257		)	—			(85		)
Interest expense	84			—			—			84
Other expenses	190			—			489			679
Income (loss) before income tax expense (benefit)	$	2,173		$	3,359		$	(485	)	$	5,047



Nine months ended September 30, 2017	Property and casualty insurance			Reinsurance			Parent company			Consolidated
($ in thousands)	Property and casualty insurance			Reinsurance			Parent company			Consolidated
Premiums earned	$	350,307		$	99,207		$	—		$	449,514

Underwriting profit (loss):
SAP underwriting profit (loss)	(9,559		)	(14,899		)	—			(24,458		)
GAAP adjustments	8,135			(942		)	—			7,193
GAAP underwriting profit (loss)	(1,424		)	(15,841		)	—			(17,265		)

Net investment income	24,225			9,421			33			33,679
Net realized investment gains (losses)	3,033			(867		)	—			2,166
Other income (loss)	623			(1,457		)	—			(834		)
Interest expense	253			—			—			253
Other expenses	580			—			1,684			2,264
Income (loss) before income tax expense (benefit)	$	25,624		$	(8,744	)	$	(1,651	)	$	15,229

Assets	$	1,185,269		$	481,951		$	575,365		$	2,242,585
Eliminations	—			—			(568,814		)	(568,814		)
Reclassifications	(2,772		)	—			(161		)	(2,933		)
Total assets	$	1,182,497		$	481,951		$	6,390		$	1,670,838



Nine months ended September 30, 2016	Property and casualty insurance			Reinsurance			Parent company			Consolidated
($ in thousands)	Property and casualty insurance			Reinsurance			Parent company			Consolidated
Premiums earned	$	338,589		$	102,775		$	—		$	441,364

Underwriting profit (loss):
SAP underwriting profit (loss)	(8,904		)	7,777			—			(1,127		)
GAAP adjustments	3,026			(803		)	—			2,223
GAAP underwriting profit (loss)	(5,878		)	6,974			—			1,096

Net investment income	25,524			10,350			9			35,883
Net realized investment gains (losses)	(627		)	(16		)	—			(643		)
Other income (loss)	466			(485		)	—			(19		)
Interest expense	253			—			—			253
Other expenses	558			—			1,495			2,053
Income (loss) before income tax expense (benefit)	$	18,674		$	16,823		$	(1,486	)	$	34,011

Year ended December 31, 2016
Assets	$	1,122,037		$	455,493		$	554,164		$	2,131,694
Eliminations	—			—			(540,249		)	(540,249		)
Reclassifications	—			(1,932		)	(700		)	(2,632		)
Total assets	$	1,122,037		$	453,561		$	13,215		$	1,588,813

The following table displays the premiums earned for the property and casualty insurance segment and the reinsurance segment for the three and nine months ended September 30, 2017 and 2016, by line of insurance.



	Three months ended September 30,				Nine months ended September 30,
($ in thousands)	2017		2016		2017		2016
Property and casualty insurance segment
Commercial lines:
Automobile	$	30,229	$	28,113	$	87,275	$	82,449
Property	27,980		27,471		79,551		77,292
Workers' compensation	25,373		24,536		75,419		71,272
Other liability	24,996		24,277		73,378		72,086
Other	2,203		2,102		6,509		6,246
Total commercial lines	110,781		106,499		322,132		309,345

Personal lines	9,691		9,873		28,175		29,244
Total property and casualty insurance	$	120,472	$	116,372	$	350,307	$	338,589

Reinsurance segment
Pro rata reinsurance	$	10,730	$	15,066	$	33,181	$	44,175
Excess of loss reinsurance	23,988		20,743		66,026		58,600
Total reinsurance	$	34,718	$	35,809	$	99,207	$	102,775

Consolidated	$	155,190	$	152,181	$	449,514	$	441,364