Segment Information (Tables)

6 Months Ended

Jun. 30, 2021

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,
	2021				2020				2021				2020
(millions)	Revenues		Pretax Profit (Loss)		Revenues		Pretax Profit (Loss)		Revenues		Pretax Profit (Loss)		Revenues		Pretax Profit (Loss)
Personal Lines
Agency	$	4,220.3	$	207.5	$	3,919.0	$	550.6	$	8,318.5	$	755.0	$	7,747.7	$	1,152.2
Direct	4,633.9		128.4		4,167.9		647.2		9,065.6		543.0		8,160.3		1,120.2
Total Personal Lines1	8,854.2		335.9		8,086.9		1,197.8		17,384.1		1,298.0		15,908.0		2,272.4
Commercial Lines	1,621.8		130.1		1,129.0		179.8		3,039.6		358.6		2,318.0		292.3
Property2	502.3		(83.3)		432.7		(188.7)		974.8		(154.0)		853.3		(139.5)
Other indemnity3	4.0		0.1		0		0		4.0		0.1		0		0
Total underwriting operations	10,982.3		382.8		9,648.6		1,188.9		21,402.5		1,502.7		19,079.3		2,425.2
Fees and other revenues4	176.2		NA		129.5		NA		341.9		NA		283.0		NA
Service businesses	74.5		6.6		59.0		6.2		128.3		11.1		110.6		10.3
Investments5	672.5		666.2		1,134.6		1,130.1		1,478.0		1,466.1		822.2		812.4

Interest expense	NA		(56.4)		NA		(56.4)		NA		(112.8)		NA		(104.4)
Consolidated total	$	11,905.5	$	999.2	$	10,971.7	$	2,268.8	$	23,350.7	$	2,867.1	$	20,295.1	$	3,143.5

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, 2021 and 2020; 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, 2021, pretax profit (loss) includes $14.1 million and $28.3 million, respectively, of amortization expense associated with acquisition-related intangible assets attributable to our Property segment, and $14.1 million and $28.6 million for the same periods in 2020. See Note 12 – Goodwill and Intangible Assets for further discussion.

3 Primarily includes Protective Insurance's run-off business operations.

4 Pretax profit (loss) for fees and other revenues is allocated to operating segments.

5 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 June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
	Under-writing Margin		Combined Ratio	Under-writing Margin		Combined Ratio	Under-writing Margin		Combined Ratio	Under-writing Margin		Combined Ratio
Personal Lines
Agency	4.9	%	95.1	14.0	%	86.0	9.1	%	90.9	14.9	%	85.1
Direct	2.8		97.2	15.5		84.5	6.0		94.0	13.7		86.3
Total Personal Lines	3.8		96.2	14.8		85.2	7.5		92.5	14.3		85.7
Commercial Lines	8.0		92.0	15.9		84.1	11.8		88.2	12.6		87.4
Property1	(16.6)		116.6	(43.6)		143.6	(15.8)		115.8	(16.3)		116.3

Total underwriting operations	3.5		96.5	12.3		87.7	7.0		93.0	12.7		87.3

1 Included in the three and six months ended June 30, 2021, is 2.8 points and 2.9 points, respectively, of amortization expense predominately associated with intangible assets and 3.3 points and 3.4 points, respectively, for the three and six months ended June 30, 2020.