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Segment Information (Tables)
 6 Months Ended
Jun. 30, 2018
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 June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
(millions)
Revenues
 
Pretax
Profit (Loss)
 
Revenues
 
Pretax
Profit (Loss)
 
Revenues
 
Pretax
Profit
(Loss)
 
Revenues
 
Pretax
Profit
(Loss)
Personal Lines
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
$
3,225.7

 
$
360.9

 
$
2,752.5

 
$
205.5

 
$
6,289.5

 
$
770.0

 
$
5,384.0

 
$
455.2

Direct
3,211.8

 
287.9

 
2,650.0

 
162.7

 
6,228.1

 
585.9

 
5,173.7

 
338.0

Total Personal Lines1
6,437.5

 
648.8

 
5,402.5

 
368.2

 
12,517.6

 
1,355.9

 
10,557.7

 
793.2

Commercial Lines
884.3

 
100.3

 
671.7

 
56.2

 
1,692.9

 
195.1

 
1,317.2

 
123.6

Property2
312.4

 
(51.9
)
 
239.1

 
3.7

 
597.7

 
(23.4
)
 
465.1

 
11.5

Other indemnity
0

 
0

 
0

 
(0.1
)
 
0

 
0.2

 
0

 
(0.3
)
Total underwriting operations
7,634.2

 
697.2

 
6,313.3

 
428.0

 
14,808.2

 
1,527.8

 
12,340.0

 
928.0

Fees and other revenues3
116.0

 
NA

 
88.8

 
NA

 
219.8

 
NA

 
174.0

 
NA

Service businesses
42.9

 
5.9

 
32.7

 
5.7

 
77.1

 
10.8

 
61.2

 
8.3

Investments4
224.9

 
218.7

 
170.9

 
164.3

 
343.0

 
330.8

 
352.0

 
339.8

Other gains (losses)
0

 
0

 
0

 
0

 
0

 
0

 
0.2

 
0.2

Interest expense
NA

 
(41.7
)
 
NA

 
(43.4
)
 
NA

 
(78.5
)
 
NA

 
(80.2
)
Consolidated total
$
8,018.0

 
$
880.1

 
$
6,605.7

 
$
554.6

 
$
15,448.1

 
$
1,790.9

 
$
12,927.4

 
$
1,196.1

NA = Not applicable
1 Personal auto insurance accounted for 94% of the total Personal Lines segment net premiums earned during the three and six months ended June 30, 2018, and 93% for the same periods in 2017; insurance for our special lines products (e.g., motorcycles, ATVs, RVs, watercraft, and snowmobiles) accounted for the balance of the Personal Lines net premiums earned.
2 For the three and six months ended June 30, 2018, pretax profit (loss) includes $18.0 million and $36.0 million, respectively, of amortization expense predominately associated with the acquisition of a controlling interest in ARX and $15.5 million and $31.0 million for the same periods in 2017. Although this expense is included in our Property segment, it is not reported in the consolidated results of ARX and, therefore, will not affect the value of net income (loss) attributable to noncontrolling interest.
3 Pretax profit (loss) for fees and other revenues is attributable to operating segments.
4 Revenues represent recurring investment income and total net realized gains (losses) on securities; pretax profit is net of investment expense.
Underwriting Margins and Combined Ratios for our Underwriting Operations
Following are the underwriting margins/combined ratios for our underwriting operations for the respective periods:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
 
Under-writing
Margin
 
Combined
Ratio
 
Under-writing
Margin
 
Combined
Ratio
 
Under-writing
Margin
 
Combined
Ratio
 
Under-writing
Margin
 
Combined
Ratio
Personal Lines
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
11.2
 %
 
88.8
 
7.5
%
 
92.5

 
12.2
 %
 
87.8
 
8.5
%
 
91.5
Direct
9.0

 
91.0
 
6.1

 
93.9

 
9.4

 
90.6
 
6.5

 
93.5
Total Personal Lines
10.1

 
89.9
 
6.8

 
93.2

 
10.8

 
89.2
 
7.5

 
92.5
Commercial Lines
11.3

 
88.7
 
8.4

 
91.6

 
11.5

 
88.5
 
9.4

 
90.6
Property1
(16.6
)
 
116.6
 
1.5
 
 
98.5

 
(3.9
)
 
103.9
 
2.5
 
 
97.5
Total underwriting operations
9.1

 
90.9
 
6.8

 
93.2

 
10.3

 
89.7
 
7.5

 
92.5

1 Included in the three and six months ended June 30, 2018 is 5.8 points and 6.0 points, respectively, of amortization expense predominately associated with the acquisition of a controlling interest in ARX and 6.5 points and 6.7 points, respectively, for the three and six months ended June 30, 2017.