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Segment Information (Tables)
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Reconciliation of Revenue and Operating Income from Segments to Consolidated
Following are the operating results for the years ended December 31:
 
  
2015
 
2014
 
2013
(millions)
Revenues

Pretax
Profit
(Loss)

 
Revenues

Pretax
Profit
(Loss)

 
Revenues

Pretax
Profit
(Loss)

Personal Lines
 
 
 
 
 
 
 
 
Agency
$
9,108.6

$
713.2

 
$
9,087.0

$
683.0

 
$
8,601.5

$
542.9

Direct
8,185.9

403.4

 
7,474.0

423.4

 
6,740.1

473.9

Total Personal Lines1 
17,294.5

1,116.6


16,561.0

1,106.4


15,341.6

1,016.8

Commercial Lines
1,995.9

318.3

 
1,837.5

315.8

 
1,761.6

114.1

Property2
609.1

61.3

 
0

0

 
0

0

Other indemnity3
(0.4
)
(1.0
)
 
0

(11.9
)
 
0.2

(10.8
)
Total underwriting operations
19,899.1

1,495.2

 
18,398.5

1,410.3

 
17,103.4

1,120.1

Fees and other revenues4 
302.0

NA

 
309.1

NA

 
291.8

NA

Service businesses
86.3

8.8

 
56.0

5.1

 
39.6

0.8

Investments5 
567.3

544.5

 
632.6

613.7

 
740.4

721.6

Gains (losses) on extinguishment of debt
(0.9
)
(0.9
)
 
(4.8
)
(4.8
)
 
(4.3
)
(4.3
)
Interest expense
NA

(136.0
)
 
NA

(116.9
)
 
NA

(118.2
)
Consolidated total
$
20,853.8

$
1,911.6

 
$
19,391.4

$
1,907.4

 
$
18,170.9

$
1,720.0


NA = Not Applicable
1 Personal auto insurance accounted for 92% of the total Personal Lines segment net premiums earned in 2015, compared to 92% in 2014 and 91% in 2013; insurance for our special lines products (e.g., motorcycles, ATVs, RVs, manufactured homes, watercraft, and snowmobiles) accounted for the balance of the Personal Lines net premiums earned.
2 We began reporting our Property business as a segment on April 1, 2015, when we acquired a controlling interest in ARX; Property business written prior to that date was negligible. During 2015, amounts include $45.2 million of amortization/depreciation expense associated with the acquisition of a controlling interest in ARX. Although this expense is included in our Property segment, it is not reported in the consolidated results of ARX Holding Corp. and, therefore, will not affect the value of the noncontrolling interest.
3 Our professional liability group recognized $0.4 million of reinstatement premiums paid to our reinsurers pursuant to their reinsurance contracts during 2015. This premium reduction is reflected in our companywide total results. In total, our run-off businesses generated an underwriting loss of $1.0 million in 2015.
4 Pretax profit (loss) for fees and other revenues are allocated to operating segments.
5 Revenues represent recurring investment income and total net realized gains (losses) on securities; pretax profit is net of investment expenses.
Underwriting Margins and Combined Ratios for our Underwriting Operations
Following are the underwriting margins/combined ratios for our underwriting operations for the years ended December 31:
 
2015
 
2014
 
2013
  
Underwriting
Margin

Combined
Ratio
 
Underwriting
Margin

Combined
Ratio
 
Underwriting
Margin

Combined
Ratio
Personal Lines
 
 
 
 
 
 
 
 
Agency
7.8
%
92.2
 
7.5
%
92.5
 
6.3
%
93.7
Direct
4.9

95.1
 
5.7

94.3
 
7.0

93.0
Total Personal Lines
6.5

93.5
 
6.7

93.3
 
6.6

93.4
Commercial Lines
15.9

84.1
 
17.2

82.8
 
6.5

93.5
Property1
10.1

89.9
 
0

0
 
0

0
Other indemnity2
NM

NM
 
NM

NM
 
NM

NM
Total underwriting operations
7.5

92.5
 
7.7

92.3
 
6.5

93.5

1 Included is 7.4 points of amortization/depreciation expense associated with the acquisition of a controlling interest in ARX.
2 Underwriting margins/combined ratios are not meaningful (NM) for our other indemnity businesses due to the low level of premiums earned by, and the variability of loss costs in, such businesses.