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Segment Information (Tables)
 9 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Reconciliation of Revenue and operating Income from Segments to Consolidated
Following are the operating results for the respective periods:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
(millions)
Revenues
 
Pretax
Profit
(Loss)
 
Revenues
 
Pretax
Profit
(Loss)
 
Revenues
 
Pretax
Profit
(Loss)
 
Revenues
 
Pretax
Profit
(Loss)
Personal Lines
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
$
2,840.0

 
$
69.5

 
$
2,474.3

 
$
98.6

 
$
8,224.0

 
$
524.7

 
$
7,245.5

 
$
354.5

Direct
2,734.8

 
128.7

 
2,391.2

 
84.4

 
7,908.5

 
466.7

 
6,946.7

 
237.5

Total Personal Lines1
5,574.8

 
198.2

 
4,865.5

 
183.0

 
16,132.5

 
991.4

 
14,192.2

 
592.0

Commercial Lines
714.0

 
42.8

 
630.2

 
4.4

 
2,031.2

 
166.4

 
1,772.4

 
96.7

Property2
255.2

 
(69.0
)
 
227.7

 
10.4

 
720.3

 
(57.5
)
 
638.0

 
(27.7
)
Other indemnity
0

 
0

 
0

 
(0.8
)
 
0

 
(0.3
)
 
0

 
(1.6
)
Total underwriting operations
6,544.0

 
172.0

 
5,723.4

 
197.0

 
18,884.0

 
1,100.0

 
16,602.6

 
659.4

Fees and other revenues3
96.3

 
NA

 
86.8

 
NA

 
270.3

 
NA

 
248.2

 
NA

Service businesses
33.3

 
4.4

 
26.2

 
3.0

 
94.5

 
12.7

 
77.7

 
9.2

Investments4
118.2

 
112.4

 
98.6

 
93.8

 
470.2

 
452.2

 
381.7

 
366.8

Gains on extinguishment of debt
0

 
0

 
0

 
0

 
0.2

 
0.2

 
1.6

 
1.6

Interest expense
NA

 
(37.4
)
 
NA

 
(35.3
)
 
NA

 
(117.6
)
 
NA

 
(103.8
)
Consolidated total
$
6,791.8

 
$
251.4

 
$
5,935.0

 
$
258.5

 
$
19,719.2

 
$
1,447.5

 
$
17,311.8

 
$
933.2

NA = Not applicable
1 Personal auto insurance accounted for 93% of the total Personal Lines segment net premiums earned in the three and nine months ended September 30, 2017, and 92% for the same periods in 2016; insurance for our special lines products (e.g., motorcycles, watercraft, and RVs) accounted for the balance of the Personal Lines net premiums earned.
2 For the three and nine months ended September 30, 2017, pretax profit (loss) includes $17.2 million and $48.2 million, respectively, of amortization expense predominately associated with the acquisition of a controlling interest in ARX and $15.5 million and $46.6 million for the same periods in 2016.
3 Pretax profit (loss) for fees and other revenues are attributable to operating segments.
4 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 and combined ratios for our underwriting operations for the respective periods:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
 
Under-writing
Margin
 
Combined
Ratio
 
Under-writing
Margin
 
Combined
Ratio
 
Under-writing
Margin
 
Combined
Ratio
 
Under-writing
Margin
 
Combined
Ratio
Personal Lines
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
2.4
 %
 
97.6
 
4.0
%
 
96.0
 
6.4
 %
 
93.6
 
4.9
 %
 
95.1
Direct
4.7

 
95.3
 
3.5

 
96.5
 
5.9

 
94.1
 
3.4

 
96.6
Total Personal Lines
3.6

 
96.4
 
3.8

 
96.2
 
6.1

 
93.9
 
4.2

 
95.8
Commercial Lines
6.0

 
94.0
 
0.7

 
99.3
 
8.2

 
91.8
 
5.5

 
94.5
Property1
(27.0
)
 
127.0
 
4.6
 
 
95.4
 
(8.0
)
 
108.0
 
(4.3
)
 
104.3
Other indemnity2
NM

 
NM
 
NM

 
NM
 
 NM

 
NM
 
 NM
 
NM
Total underwriting operations
2.6

 
97.4
 
3.4

 
96.6
 
5.8

 
94.2
 
4.0

 
96.0

1 Included in both the three and nine months ended September 30, 2017 are 6.7 points of amortization expense predominately associated with the acquisition of a controlling interest in ARX and 6.8 points and 7.3 points, respectively, for the three and nine months ended September 30, 2016. The nine months ended September 30, 2016, also include 0.7 points of expense related to the loss on the exchange transaction that occurred in 2016.
2 Underwriting margins and 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.