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. The GAAP accounting policies of the segments are described in note 1, Summary of Significant Accounting Policies.

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



Year ended December 31, 2018	Property and casualty insurance			Reinsurance			Parent company			Consolidated
($ in thousands)	Property and casualty insurance			Reinsurance			Parent company			Consolidated
Premiums earned	$	495,447		$	149,736		$	—		$	645,183

Underwriting profit (loss):
SAP underwriting profit (loss)	(15,177		)	(9,404		)	—			(24,581		)
GAAP adjustments	(1,342		)	111			—			(1,231		)
GAAP underwriting profit (loss)	(16,519		)	(9,293		)	—			(25,812		)

Net investment income	34,070			13,523			44			47,637
Net realized investment gains (losses) and, beginning in 2018, change in unrealized gains on equity investments	(28,227		)	(12,935		)	(90		)	(41,252		)
Other income (loss)	8,444			715			—			9,159
Interest expense	654			—			—			654
Other expenses	1,202			—			2,552			3,754
Income (loss) before income tax expense (benefit)	$	(4,088	)	$	(7,990	)	$	(2,598	)	$	(14,676	)

Assets	$	1,191,286		$	485,270		$	565,905		$	2,242,461
Eliminations	—			—			(556,977		)	(556,977		)
Reclassifications	—			—			(6		)	(6		)
Total assets	$	1,191,286		$	485,270		$	8,922		$	1,685,478



Year ended December 31, 2017	Property and casualty insurance			Reinsurance			Parent company			Consolidated
($ in thousands)	Property and casualty insurance			Reinsurance			Parent company			Consolidated
Premiums earned	$	472,369		$	134,789		$	—		$	607,158

Underwriting profit (loss):
SAP underwriting profit (loss)	2,702			(15,386		)	—			(12,684		)
GAAP adjustments	105			(670		)	—			(565		)
GAAP underwriting profit (loss)	2,807			(16,056		)	—			(13,249		)

Net investment income	32,670			12,771			38			45,479
Net realized investment gains (losses) and, beginning in 2018, change in unrealized gains on equity investments	4,896			1,660			—			6,556
Other income (loss)	6,283			(1,519		)	—			4,764
Interest expense	337			—			—			337
Other expenses	1,128			—			2,269			3,397
Income (loss) before income tax expense (benefit)	$	45,191		$	(3,144	)	$	(2,231	)	$	39,816

Assets	$	1,200,636		$	484,678		$	604,105		$	2,289,419
Eliminations	—			—			(599,036		)	(599,036		)
Reclassifications	(1,393		)	(6,273		)	(777		)	(8,443		)
Total assets	$	1,199,243		$	478,405		$	4,292		$	1,681,940



Year ended December 31, 2016	Property and casualty insurance			Reinsurance			Parent company			Consolidated
($ in thousands)	Property and casualty insurance			Reinsurance			Parent company			Consolidated
Premiums earned	$	456,467		$	135,941		$	—		$	592,408

Underwriting profit (loss):
SAP underwriting profit (loss)	4,276			11,377			—			15,653
GAAP adjustments	(5,743		)	(1,023		)	—			(6,766		)
GAAP underwriting profit (loss)	(1,467		)	10,354			—			8,887

Net investment income	33,886			13,591			13			47,490
Net realized investment gains (losses) and, beginning in 2018, change in unrealized gains on equity investments	4,082			(8		)	—			4,074
Other income (loss)	5,403			417			—			5,820
Interest expense	337			—			—			337
Other expenses	721			—			2,006			2,727
Income (loss) before income tax expense (benefit)	$	40,846		$	24,354		$	(1,993	)	$	63,207

The following table displays the premiums earned for the property and casualty insurance segment and the reinsurance segment for the three years ended December 31, 2018, by line of insurance.



	Year ended December 31,
($ in thousands)	2018		2017		2016
Property and casualty insurance
Commercial lines:
Automobile	$	128,496	$	118,224	$	110,941
Property	108,525		108,162		105,012
Workers' compensation	99,699		100,552		96,517
Other liability	110,400		98,674		96,630
Other	9,256		8,719		8,374
Total commercial lines	456,376		434,331		417,474

Personal lines	39,071		38,038		38,993
Total property and casualty insurance	$	495,447	$	472,369	$	456,467

Reinsurance
Pro rata reinsurance	$	44,610	$	44,636	$	56,317
Excess of loss reinsurance	105,126		90,153		79,624
Total reinsurance	$	149,736	$	134,789	$	135,941

Consolidated	$	645,183	$	607,158	$	592,408