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Segment Information
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segment Information Segment Information — Our Personal Lines segment writes insurance for personal autos and recreational vehicles (our special lines products). Our Commercial Lines segment writes primary liability, physical damage, and other auto-related insurance for automobiles and trucks owned and/or operated predominantly by small businesses in the business auto, for-hire transportation, contractor, for-hire specialty, tow, and for-hire livery markets. Our Property segment writes residential property insurance for homeowners, other property owners, and renters. Our other indemnity businesses include our run-off businesses. Our service businesses provide insurance-related services, including processing Commercial Automobile Insurance Procedures/Plans (CAIP) business and serving as an agent for homeowners, general liability, and workers’ compensation insurance, among other products, through our programs with ASI and unaffiliated insurance companies. All segment revenues are generated from external customers; all intercompany transactions are eliminated in consolidation.

Following are the operating results for the respective periods:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
(millions)
Revenues
 
Pretax
Profit (Loss)
 
Revenues
 
Pretax
Profit (Loss)
 
Revenues
 
Pretax Profit (Loss)
 
Revenues
 
Pretax Profit (Loss)
Personal Lines
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
$
3,703.4

 
$
380.2

 
$
3,318.2

 
$
372.2

 
$
10,851.5

 
$
1,267.9

 
$
9,607.7

 
$
1,142.2

Direct
3,804.0

 
291.7

 
3,337.2

 
294.4

 
11,113.7

 
940.2

 
9,565.3

 
880.3

Total Personal Lines1
7,507.4

 
671.9

 
6,655.4

 
666.6

 
21,965.2

 
2,208.1

 
19,173.0

 
2,022.5

Commercial Lines
1,106.9

 
69.7

 
939.6

 
112.7

 
3,190.4

 
360.7

 
2,632.5

 
307.8

Property2
397.9

 
(9.1
)
 
335.5

 
(7.8
)
 
1,141.1

 
(35.8
)
 
933.2

 
(31.2
)
Other indemnity
0

 
0

 
0

 
(0.1
)
 
0

 
0

 
0

 
0.1

Total underwriting operations
9,012.2

 
732.5

 
7,930.5

 
771.4

 
26,296.7

 
2,533.0

 
22,738.7

 
2,299.2

Fees and other revenues3
138.4

 
NA

 
122.6

 
NA

 
403.4

 
NA

 
342.4

 
NA

Service businesses
51.5

 
2.8

 
42.5

 
6.7

 
144.1

 
12.0

 
119.6

 
17.5

Investments4
328.4

 
322.5

 
400.2

 
394.4

 
1,437.0

 
1,418.7

 
743.2

 
725.2

Interest expense
NA

 
(47.5
)
 
NA

 
(42.0
)
 
NA

 
(142.3
)
 
NA

 
(120.5
)
Consolidated total
$
9,530.5

 
$
1,010.3

 
$
8,495.8

 
$
1,130.5

 
$
28,281.2

 
$
3,821.4

 
$
23,943.9

 
$
2,921.4

NA = Not applicable
1 Personal auto insurance accounted for 94% of the total Personal Lines segment net premiums earned during the three and nine months ended September 30, 2019 and 2018; 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 nine months ended September 30, 2019, pretax profit (loss) includes $15.8 million and $51.7 million, respectively, of amortization expense predominately associated with the acquisition of a controlling interest in ARX and $18.0 million and $54.0 million for the same periods in 2018. Although this expense is included in our Property segment, it is not reported in the consolidated results of ARX and, therefore, does not affect the value of net income 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.

Our management uses underwriting margin and combined ratio as primary measures of underwriting profitability. Underwriting profitability is calculated by subtracting losses and loss adjustment expenses, policy acquisition costs, and other underwriting expenses from the total of net premiums earned and fees and other revenues. The underwriting margin is the pretax underwriting profit (loss) expressed as a percentage of net premiums earned (i.e., revenues from underwriting operations). Combined ratio is the complement of the underwriting margin. 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,
 
2019
 
2018
 
2019
 
2018
 
Under-writing
Margin
 
Combined
Ratio
 
Under-writing
Margin
 
Combined
Ratio
 
Under-writing
Margin
 
Combined
Ratio
 
Under-writing
Margin
 
Combined
Ratio
Personal Lines
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
10.3
 %
 
89.7
 
11.2
 %
 
88.8

 
11.7
 %
 
88.3
 
11.9
 %
 
88.1
Direct
7.7

 
92.3
 
8.8

 
91.2

 
8.5

 
91.5
 
9.2

 
90.8
Total Personal Lines
9.0

 
91.0
 
10.0

 
90.0

 
10.1

 
89.9
 
10.5

 
89.5
Commercial Lines
6.3

 
93.7
 
12.0

 
88.0

 
11.3

 
88.7
 
11.7

 
88.3
Property1
(2.3
)
 
102.3
 
(2.3
)
 
102.3

 
(3.1
)
 
103.1
 
(3.3
)
 
103.3
Total underwriting operations
8.1

 
91.9
 
9.7

 
90.3

 
9.6

 
90.4
 
10.1

 
89.9

1 Included in the three and nine months ended September 30, 2019, is 4.0 points and 4.5 points, respectively, of amortization expense predominately associated with the acquisition of a controlling interest in ARX and 5.4 points and 5.8 points, respectively, for the three and nine months ended September 30, 2018.