Business Segments

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Business Segments

Note 11 - 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, 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, supplemental health and property insurance. These products are distributed by career agents employed by the Company and independent agents and brokers.

Note 11 - Business Segments (continued)

Earned Premiums by product line for the three months ended March 31, 2019 and 2018 were:

	Three Months Ended
(Dollars in Millions)	Mar 31, 2019		Mar 31, 2018
Preferred Property & Casualty Insurance:
Personal Automobile	$	115.4	$	104.9
Homeowners	60.3		61.8
Other Personal Lines	9.9		10.1
Specialty Property & Casualty Insurance:
Specialty Automobile	669.6		266.2
Commercial Automobile	59.7		12.2
Life & Health Insurance:
Life	95.8		93.7
Accident and Health	46.9		43.3
Property	17.2		17.6
Total Earned Premiums	$	1,074.8	$	609.8

Segment Revenues, including a reconciliation to Total Revenues, for the three months ended March 31, 2019 and 2018 were:

	Three Months Ended
(Dollars in Millions)	Mar 31, 2019			Mar 31, 2018
Segment Revenues
Preferred Property & Casualty Insurance
Earned Premiums	$	185.6		$	176.8
Net Investment Income	8.3			13.7
Total Preferred Property & Casualty Insurance	193.9			190.5
Specialty Property & Casualty Insurance:
Earned Premiums	729.3			278.4
Net Investment Income	21.5			9.9
Other Income	0.8			0.3
Total Specialty Property & Casualty Insurance	751.6			288.6
Life & Health Insurance:
Earned Premiums	159.9			154.6
Net Investment Income	51.7			53.7
Other Income	1.1			0.8
Total Life & Health Insurance	212.7			209.1
Total Segment Revenues	1,158.2			688.2
Income from Change in Fair Value of Equity and Convertible Securities	64.4			0.7
Net Realized Gains on Sales of Investments	16.1			2.6
Net Impairment Losses Recognized in Earnings	(3.6		)	(0.5		)
Other	1.2			2.0
Total Revenues	$	1,236.3		$	693.0

Note 11 - Business Segments (continued)

Segment Operating Profit, including a reconciliation to Income from Continuing Operations before Income Taxes, for the three months ended March 31, 2019 and 2018 was:

	Three Months Ended
(Dollars in Millions)	Mar 31, 2019			Mar 31, 2018
Segment Operating Profit :
Preferred Property & Casualty Insurance	$	3.3		$	16.6
Specialty Property & Casualty Insurance	99.4			29.0
Life & Health Insurance	29.3			30.3
Total Segment Operating Profit	132.0			75.9
Corporate and Other Operating Loss	(8.6		)	(5.5		)
Adjusted Consolidated Operating Profit	123.4			70.4
Income from Change in Fair Value of Equity and Convertible Securities	64.4			0.7
Net Realized Gains on Sales of Investments	16.1			2.6
Net Impairment Losses Recognized in Earnings	(3.6		)	(0.5		)
Acquisition Related Transaction, Integration and Other Costs	(5.6		)	(6.2		)
Income from Continuing Operations before Income Taxes	$	194.7		$	67.0

Segment Net Operating Income, including a reconciliation to Income from Continuing Operations, for the three months and three months ended March 31, 2019 and 2018 was:

	Three Months Ended
(Dollars in Millions and Net of Income Taxes)	Mar 31, 2019			Mar 31, 2018
Segment Net Operating Income:
Preferred Property & Casualty Insurance	$	2.8		$	13.5
Specialty Property & Casualty Insurance	79.6			23.4
Life & Health Insurance	23.1			24.1
Total Segment Net Operating Income	105.5			61.0
Total Corporate and Other Net Operating Income (Loss)	(6.6		)	(3.5		)
Adjusted Consolidated Net Operating Income	98.9			57.5
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	50.9			0.6
Net Realized Gains on Sales of Investments	12.7			2.1
Net Impairment Losses Recognized in Earnings	(2.8		)	(0.4		)
Acquisition Related Transaction, Integration and Other Costs	(4.4		)	(6.2		)
Income from Continuing Operations	$	155.3		$	53.6