Segment Information (Tables)

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Reconciliation of Revenue and Operating Income from Segments to Consolidated

Following are the operating results for the years ended December 31:

	2019					2018					2017
(millions)	Revenues		Pretax Profit (Loss)			Revenues		Pretax Profit (Loss)			Revenues			Pretax Profit (Loss)
Personal Lines
Agency	$	14,904.1	$	1,673.2		$	13,017.2	$	1,435.7		$	11,177.6		$	839.6
Direct	15,305.9		1,181.4			13,017.5		1,088.5			10,769.6			683.7
Total Personal Lines1	30,210.0		2,854.6			26,034.7		2,524.2			21,947.2			1,523.3
Commercial Lines	4,427.6		458.8			3,610.9		478.6			2,793.9			214.1
Property2	1,554.8		(26.1		)	1,287.7		(88.7		)	988.8			(50.3		)
Other indemnity	0		0			0		0.9			0			(0.2		)
Total underwriting operations	36,192.4		3,287.3			30,933.3		2,915.0			25,729.9			1,686.9
Fees and other revenues3	563.7		NA			472.2		NA			370.6			NA
Service businesses	195.0		16.1			158.5		24.4			126.8			17.3
Investments4	2,071.2		2,046.6			415.0		390.7			612.7			588.8
Other gains (losses)	0		0			0		0			(1.0		)	(1.0		)
Interest expense	NA		(189.7		)	NA		(166.5		)	NA			(153.1		)
Consolidated total	$	39,022.3	$	5,160.3		$	31,979.0	$	3,163.6		$	26,839.0		$	2,138.9

NA = Not applicable

¹ Personal auto insurance accounted for 94% of the total Personal Lines segment net premiums earned in 2019 and 2018, compared to 93% 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 During 2019, 2018, and 2017, pretax profit (loss) includes $66.3 million, $72.0 million, and $66.2 million, respectively, of amortization expense predominately 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 and, therefore, does not affect the value of net income attributable to noncontrolling interest.

³ Pretax profit (loss) for fees and other revenues are allocated 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 years ended December 31:

	2019			2018			2017
	Underwriting Margin		Combined Ratio	Underwriting Margin		Combined Ratio	Underwriting Margin		Combined Ratio
Personal Lines
Agency	11.2	%	88.8	11.0	%	89.0	7.5	%	92.5
Direct	7.7		92.3	8.4		91.6	6.3		93.7
Total Personal Lines	9.5		90.5	9.7		90.3	6.9		93.1
Commercial Lines	10.4		89.6	13.3		86.7	7.7		92.3
Property1	(1.7	)	101.7	(6.9	)	106.9	(5.1	)	105.1
Total underwriting operations	9.1		90.9	9.4		90.6	6.6		93.4

¹ Included in 2019, 2018, and 2017, are 4.3 points, 5.6 points, and 6.7 points, respectively, of amortization expense predominately associated with the acquisition of a controlling interest in ARX.