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Business Segments
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Business Segments 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: Specialty Property & Casualty Insurance, Preferred Property & Casualty Insurance and Life & Health Insurance.
The Specialty Property & Casualty Insurance segment’s principal products are specialty automobile insurance and commercial automobile insurance. The Preferred Property & Casualty Insurance segment’s principal products are preferred automobile insurance, homeowners insurance, and other personal 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.
NOTE 19. BUSINESS SEGMENTS (Continued)
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 $103.9 million, $68.0 million and $50.8 million for the years ended December 31, 2019, 2018 and 2017, 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, Acquisition Related Transaction, Integration and Other Costs, Loss from Early Extinguishment of Debt, interest expense on debt or postretirement benefit plans, and actuarial gains and losses on its postretirement benefit plans to its operating segments. Additionally, the Company did not allocate the 2018 and 2017 impacts of the Tax Act or the gains recognized in 2019 and 2018 on the partial satisfaction of a final judgment against Computer Sciences Corporation (“CSC”) to its operating segments.
Segment Assets at December 31, 2019 and 2018 were:
DOLLARS IN MILLIONS
 
2019
 
2018
Specialty Property & Casualty Insurance
 
$
4,435.2

 
$
3,541.0

Preferred Property & Casualty Insurance
 
1,549.8

 
1,567.7

Life & Health Insurance
 
5,847.9

 
5,117.2

Corporate and Other, Net
 
1,156.2

 
1,319.0

Total Assets
 
$
12,989.1

 
$
11,544.9


Earned Premiums by product line for the years ended December 31, 2019, 2018 and 2017 were:
DOLLARS IN MILLIONS
 
2019
 
2018
 
2017
Specialty Property & Casualty Insurance:
 
 
 
 
 
 
Specialty Automobile
 
$
2,825.6

 
$
1,889.5

 
$
954.3

Commercial Automobile
 
252.8

 
137.9

 
51.4

Preferred Property & Casualty Insurance:
 
 
 
 
 
 
Preferred Automobile
 
470.2

 
440.2

 
422.8

Homeowners
 
241.3

 
250.1

 
264.8

Other Personal Lines
 
38.8

 
40.4

 
42.7

Life & Health Insurance:
 
 
 
 
 
 
Life
 
384.6

 
378.4

 
379.7

Accident & Health
 
190.9

 
177.5

 
161.7

Property
 
68.2

 
70.4

 
72.6

Total Earned Premiums
 
$
4,472.4

 
$
3,384.4

 
$
2,350.0


NOTE 19. BUSINESS SEGMENTS (Continued)
Segment Revenues, including a reconciliation to Total Revenues, for the years ended December 31, 2019, 2018 and 2017 were:
DOLLARS IN MILLIONS
 
2019
 
2018
 
2017
Segment Revenues:
 
 
 
 
 
 
Specialty Property & Casualty Insurance:
 
 
 
 
 
 
Earned Premiums
 
$
3,078.4

 
$
2,027.4

 
$
1,005.7

Net Investment Income
 
107.5

 
63.4

 
39.2

Other Income
 
7.0

 
2.4

 
1.1

Total Specialty Property & Casualty Insurance
 
3,192.9

 
2,093.2

 
1,046.0

Preferred Property & Casualty Insurance:
 
 
 
 
 
 
Earned Premiums
 
750.3

 
730.7

 
730.3

Net Investment Income
 
44.1

 
61.8

 
58.9

Total Preferred Property & Casualty Insurance
 
794.4

 
792.5

 
789.2

Life & Health Insurance:
 
 
 
 
 
 
Earned Premiums
 
643.7

 
626.3

 
614.0

Net Investment Income
 
206.4

 
210.9

 
223.2

Other Income
 
8.5

 
4.0

 
2.6

Total Life & Health Insurance
 
858.6

 
841.2

 
839.8

Total Segment Revenues
 
4,845.9

 
3,726.9

 
2,675.0

Income (Loss) from Change in Fair Value of Equity and Convertible Securities
 
138.9

 
(64.3
)
 
—

Net Realized Gains on the Sales of Investments
 
41.9

 
26.4

 
56.5

Net Impairment Losses Recognized in Earnings
 
(13.8
)
 
(4.5
)
 
(14.3
)
Other
 
26.3

 
40.6

 
6.2

Total Revenues
 
$
5,039.2

 
$
3,725.1

 
$
2,723.4


Segment Operating Profit, including a reconciliation to Income from Continuing Operations before Income Taxes, for the years ended December 31, 2019, 2018 and 2017 was:
DOLLARS IN MILLIONS
 
2019
 
2018
 
2017
Segment Operating Profit (Loss):
 
 
 
 
 
 
Specialty Property & Casualty Insurance
 
$
355.9

 
$
145.6

 
$
80.5

Preferred Property & Casualty Insurance
 
52.3

 
28.6

 
(78.1
)
Life & Health Insurance
 
121.9

 
115.9

 
140.2

Total Segment Operating Profit
 
530.1

 
290.1

 
142.6

Corporate and Other Operating Profit (Loss) From:
 
 
 
 
 
 
Partial Satisfaction of Judgment
 
20.1

 
35.7

 
—

Other
 
(31.4
)
 
(39.6
)
 
(23.7
)
Corporate and Other Operating Profit (Loss)
 
(11.3
)
 
(3.9
)
 
(23.7
)
Adjusted Consolidated Operating Profit (Loss)
 
518.8

 
286.2

 
118.9

Income (Loss) from Change in Fair Value of Equity and Convertible Securities
 
138.9

 
(64.3
)
 
—

Net Realized Gains on Sales of Investments
 
41.9

 
26.4

 
56.5

Net Impairment Gains (Losses) Recognized in Earnings
 
(13.8
)
 
(4.5
)
 
(14.3
)
Acquisition Related Transaction, Integration and Other Costs
 
(18.4
)
 
(44.7
)
 
—

Loss from Early Extinguishment of Debt
 
(5.8
)
 
—

 
—

Income from Continuing Operations before Income Taxes
 
$
661.6


$
199.1


$
161.1


NOTE 19. BUSINESS SEGMENTS (Continued)
Segment Net Operating Income, including a reconciliation to Income from Continuing Operations, for the years ended December 31, 2019, 2018 and 2017 was:
DOLLARS IN MILLIONS
 
2019
 
2018
 
2017
Segment Net Operating Income (Loss):
 
 
 
 
 
 
Specialty Property & Casualty Insurance
 
$
283.1

 
$
115.8

 
$
56.3

Preferred Property & Casualty Insurance
 
41.9

 
25.7

 
(45.4
)
Life & Health Insurance
 
98.7

 
91.5

 
91.9

Total Segment Net Operating Income (Loss)
 
423.7

 
233.0

 
102.8

Corporate and Other Net Operating Income (Loss) From:
 
 
 
 
 
 
Effects of Tax Law Changes
 
—

 
26.4

 
7.4

Partial Satisfaction of Judgment
 
15.9

 
28.2

 
—

Other
 
(21.3
)
 
(29.2
)
 
(17.7
)
Total Corporate and Other Net Operating Income (Loss)
 
(5.4
)
 
25.4

 
(10.3
)
Adjusted Consolidated Net Operating Income
 
418.3

 
258.4

 
92.5

Net Income (Loss) From:
 
 
 
 
 
 
Change in Fair Value of Equity and Convertible Securities
 
109.7

 
(50.8
)
 
—

Net Realized Gains on Sales of Investments
 
33.1

 
20.9

 
36.7

Net Impairment Losses Recognized in Earnings
 
(10.9
)
 
(3.6
)
 
(9.3
)
Acquisition Related Transaction, Integration and Other Costs
 
(14.5
)
 
(36.5
)
 
—

Loss from Early Extinguishment of Debt
 
(4.6
)
 
—

 
—

Income from Continuing Operations
 
$
531.1

 
$
188.4

 
$
119.9


Amortization of Deferred Policy Acquisition Costs by Operating Segment for the years ended December 31, 2019, 2018 and 2017 was:
DOLLARS IN MILLIONS
 
2019
 
2018
 
2017
Specialty Property & Casualty Insurance
 
$
224.9

 
$
202.0

 
$
150.2

Preferred Property & Casualty Insurance
 
120.1

 
117.2

 
114.6

Life & Health Insurance
 
63.3

 
57.9

 
53.5

Total Amortization
 
$
408.3

 
$
377.1

 
$
318.3