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 three operating segments: Preferred Property & Casualty Insurance, Specialty Property & Casualty Insurance and Life & Health Insurance.

The Preferred Property & Casualty Insurance segment’s principal products are preferred automobile insurance, homeowners insurance, and other personal insurance. The Specialty Property & Casualty Insurance segment’s principal products are specialty automobile 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 $68.0 million, $50.8 million and $52.9 million for the years ended December 31, 2018, 2017 and 2016, respectively. The Company does not allocate Income from Change in Fair Value of Equity and Convertible Securities, 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. Additionally, in 2018 the Company did not allocate the impact of the Tax Act or the gain recognized on the partial satisfaction of a final judgment against CSC to its operating segments.

Segment Assets at December 31, 2018 and 2017 were:



DOLLARS IN MILLIONS	2018		2017
Preferred Property & Casualty Insurance	$	1,567.7	$	1,567.6
Specialty Property & Casualty Insurance	3,541.0		1,327.3
Life & Health Insurance	5,117.2		5,079.3
Corporate and Other, Net	1,319.0		402.0
Total Assets	$	11,544.9	$	8,376.2

NOTE 18. BUSINESS SEGMENTS (Continued)

Earned Premiums by product line for the years ended December 31, 2018, 2017 and 2016 were:



DOLLARS IN MILLIONS	2018		2017		2016
Preferred Property & Casualty Insurance:
Preferred Automobile	$	440.2	$	422.8	$	424.6
Homeowners	250.1		264.8		271.9
Other Personal Lines	40.4		42.7		45.0
Specialty Property & Casualty Insurance:
Specialty Automobile	1,889.5		954.3		820.0
Commercial Automobile	137.9		51.4		53.3
Life & Health Insurance:
Life	378.4		379.7		381.6
Accident & Health	177.5		161.7		149.4
Property	70.4		72.6		74.2
Total Earned Premiums	$	3,384.4	$	2,350.0	$	2,220.0

Segment Revenues, including a reconciliation to Total Revenues, for the years ended December 31, 2018, 2017 and 2016 were:



DOLLARS IN MILLIONS	2018			2017			2016
Segment Revenues:
Preferred Property & Casualty Insurance:
Earned Premiums	$	730.7		730.3			741.5
Net Investment Income	61.8			58.9			48.6
Total Preferred Property & Casualty Insurance	792.5			789.2			790.1
Specialty Property & Casualty Insurance:
Earned Premiums	2,027.4			1,005.7			873.3
Net Investment Income	63.4			39.2			29.1
Other Income	2.4			1.1			0.5
Total Specialty Property & Casualty Insurance	2,093.2			1,046.0			902.9
Life & Health Insurance:
Earned Premiums	626.3			614.0			605.2
Net Investment Income	210.9			223.2			214.2
Other Income	4.0			2.6			2.8
Total Life & Health Insurance	841.2			839.8			822.2
Total Segment Revenues	3,726.9			2,675.0			2,515.2
Loss from Change in Fair Value of Equity and Convertible Securities	(64.3		)	—			—
Net Realized Gains on the Sales of Investments	26.4			56.5			33.1
Net Impairment Losses Recognized in Earnings	(4.5		)	(14.3		)	(32.7		)
Other	40.6			6.2			6.3
Total Revenues	$	3,725.1		$	2,723.4		$	2,521.9

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, 2018, 2017 and 2016 was:



DOLLARS IN MILLIONS	2018			2017			2016
Segment Operating Profit (Loss):
Preferred Property & Casualty Insurance	$	28.6		$	(78.1	)	$	15.8
Specialty Property & Casualty Insurance	145.6			80.5			(27.7		)
Life & Health Insurance	115.9			140.2			46.7
Total Segment Operating Profit	290.1			142.6			34.8
Corporate and Other Operating Loss	(3.9		)	(23.7		)	(31.7		)
Adjusted Consolidated Operating Profit	286.2			118.9			3.1
Loss from Change in Fair Value of Equity and Convertible Securities	(64.3		)	—			—
Net Realized Gains on Sales of Investments	26.4			56.5			33.1
Net Impairment Losses Recognized in Earnings	(4.5		)	(14.3		)	(32.7		)
Acquisition Related Transaction, Integration and Other Costs	(44.7		)	—			—
Income from Continuing Operations before Income Taxes	$	199.1		$	161.1		$	3.5

Segment Net Operating Income, including a reconciliation to Income from Continuing Operations, for the years ended December 31, 2018, 2017 and 2016 was:



DOLLARS IN MILLIONS	2018			2017			2016
Segment Net Operating Income (Loss):
Preferred Property & Casualty Insurance	$	25.7		$	(45.4	)	$	15.6
Specialty Property & Casualty Insurance	115.8			56.3			(14.5		)
Life & Health Insurance	91.5			91.9			31.0
Total Segment Net Operating Income	233.0			102.8			32.1
Corporate and Other Net Operating Income (Loss) From:
Effects of Tax Law Changes	26.4			7.4			—
Partial Satisfaction of Judgment	28.2			—			—
Other	(29.2		)	(17.7		)	(19.7		)
Corporate and Other Net Operating Loss	25.4			(10.3		)	(19.7		)
Adjusted Consolidated Net Operating Income	258.4			92.5			12.4
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	(50.8		)	—			—
Net Realized Gains on Sales of Investments	20.9			36.7			21.5
Net Impairment Losses Recognized in Earnings	(3.6		)	(9.3		)	(21.2		)
Acquisition Related Transaction, Integration and Other Costs	(36.5		)	—			—
Income from Continuing Operations	$	188.4		$	119.9		$	12.7

Amortization of Deferred Policy Acquisition Costs by Operating Segment for the years ended December 31, 2018, 2017 and 2016 was:



DOLLARS IN MILLIONS	2018		2017		2016
Preferred Property & Casualty Insurance	$	117.2	$	114.6	$	115.3
Specialty Property & Casualty Insurance	202.0		150.2		136.8
Life & Health Insurance	57.9		53.5		47.2
Total Amortization	$	377.1	$	318.3	$	299.3