Business Segments

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Business Segments

NOTE 18. BUSINESS SEGMENTS

The Company is engaged, through its subsidiaries, in the property and casualty insurance and life and health insurance businesses. The Company conducts its operations through two operating segments: Property & Casualty Insurance and Life & Health Insurance.

The Property & Casualty Insurance segment’s principal products are personal automobile insurance, both standard and nonstandard risks, homeowners insurance, other personal insurance and commercial automobile insurance. These products are distributed primarily through independent agents and brokers. The Life & Health Insurance segment’s principal products are individual life, accident, health and property insurance. These products are distributed by career agents employed by the Company and independent agents and brokers.

The Company’s earned premiums are derived in the United States. The accounting policies of the segments are the same as those described in Note 2, “Summary of Accounting Policies and Accounting Changes,” to the Consolidated Financial Statements. Capital expenditures for long-lived assets by operating segment are immaterial.

It is the Company’s management practice to allocate certain corporate expenses, primarily compensation costs for corporate employees and related facility costs, included in Interest and Other Expenses in the Consolidated Statements of Income to its insurance operations. The amount of such allocated corporate expenses was $43.4 million, $42.1 million and $39.7 million for

NOTE 18. BUSINESS SEGMENTS (Continued)

the years ended December 31, 2015, 2014 and 2013, respectively. The Company does not allocate Net Realized Gains on Sales of Investments, Net Impairment Losses Recognized in Earnings, interest expense on debt or postretirement benefit plans, and actuarial gains and losses on its postretirement benefit plans to its operating segments.

Segment Assets at December 31, 2015 and 2014 were:

DOLLARS IN MILLIONS	2015		2014
Property & Casualty Insurance	$	2,749.0	$	2,486.1
Life & Health Insurance	4,733.9		4,810.6
Corporate and Other, Net	553.2		536.7
Total Assets	$	8,036.1	$	7,833.4

Earned Premiums by product line for the years ended December 31, 2015, 2014 and 2013 were:

DOLLARS IN MILLIONS	2015		2014		2013
Personal Automobile	$	1,027.7	$	831.4	$	959.1
Homeowners	286.3		312.4		326.2
Other Personal Property and Casualty Insurance	122.1		127.4		134.1
Commercial Automobile	54.5		54.8		52.3
Life	374.1		387.6		392.7
Accident and Health	144.9		148.6		161.4
Total Earned Premiums	$	2,009.6	$	1,862.2	$	2,025.8

Segment Revenues, including a reconciliation to Total Revenues, for the years ended December 31, 2015, 2014 and 2013 were:

DOLLARS IN MILLIONS	2015			2014			2013
Segment Revenues:
Property & Casualty Insurance:
Earned Premiums	$	1,415.2		$	1,249.5		$	1,392.9
Net Investment Income	73.3			72.7			90.9
Other Income	0.6			0.5			0.5
Total Property & Casualty Insurance	1,489.1			1,322.7			1,484.3
Life & Health Insurance:
Earned Premiums	594.4			612.7			632.9
Net Investment Income	214.2			218.7			209.9
Other Income	2.4			0.9			0.2
Total Life & Health Insurance	811.0			832.3			843.0
Total Segment Revenues	2,300.1			2,155.0			2,327.3
Net Realized Gains on the Sales of Investments	52.1			39.1			99.1
Net Impairment Losses Recognized in Earnings	(27.2		)	(15.2		)	(13.9		)
Other	15.8			17.7			14.0
Total Revenues	$	2,340.8		$	2,196.6		$	2,426.5

NOTE 18. BUSINESS SEGMENTS (Continued)

Segment Operating Profit, including a reconciliation to Income from Continuing Operations before Income Taxes, for the years ended December 31, 2015, 2014 and 2013 was:

DOLLARS IN MILLIONS	2015			2014			2013
Segment Operating Profit:
Property & Casualty Insurance	$	23.7		$	27.1		$	139.6
Life & Health Insurance	109.7			141.9			136.9
Total Segment Operating Profit	133.4			169.0			276.5
Corporate and Other Operating Loss	(48.9		)	(32.7		)	(47.3		)
Total Operating Profit	84.5			136.3			229.2
Net Realized Gains on Sales of Investments	52.1			39.1			99.1
Net Impairment Losses Recognized in Earnings	(27.2		)	(15.2		)	(13.9		)
Loss from Early Extinguishment of Debt	(9.1		)	—			—
Income from Continuing Operations before Income Taxes	$	100.3		$	160.2		$	314.4

Segment Net Operating Income, including a reconciliation to Income from Continuing Operations, for the years ended December 31, 2015, 2014 and 2013 was:

DOLLARS IN MILLIONS	2015			2014			2013
Segment Net Operating Income:
Property & Casualty Insurance	$	26.7		$	24.9		$	100.6
Life & Health Insurance	71.7			91.8			89.3
Total Segment Net Operating Income	98.4			116.7			189.9
Corporate and Other Net Operating Loss	(28.5		)	(19.6		)	(30.7		)
Consolidated Net Operating Income	69.9			97.1			159.2
Net Income (Loss) From:
Net Realized Gains on Sales of Investments	33.9			25.4			64.4
Net Impairment Losses Recognized in Earnings	(17.7		)	(9.9		)	(9.1		)
Loss from Early Extinguishment of Debt	(5.9		)	—			—
Income from Continuing Operations	$	80.2		$	112.6		$	214.5

Amortization of Deferred Policy Acquisition Costs by Operating Segment for the years ended December 31, 2015, 2014 and 2013 was:

DOLLARS IN MILLIONS	2015		2014		2013
Property & Casualty Insurance	$	213.1	$	187.5	$	207.2
Life & Health Insurance	44.3		47.9		46.7
Total Amortization	$	257.4	$	235.4	$	253.9