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Segment Information (Tables)
 9 Months Ended
Sep. 30, 2019
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,
 
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.
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,
 
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.