Business Segments

3 Months Ended

Mar. 31, 2020

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

Earned Premiums by product line for the three months ended March 31, 2020 and 2019 were:

	Three Months Ended
(Dollars in Millions)	Mar 31, 2020		Mar 31, 2019
Specialty Property & Casualty Insurance:
Specialty Automobile	$	753.2	$	669.6
Commercial Automobile	69.3		59.7
Preferred Property & Casualty Insurance:
Personal Automobile	114.9		115.4
Homeowners	56.8		60.3
Other Personal Lines	9.2		9.9
Life & Health Insurance:
Life	97.2		95.8
Accident and Health	49.4		46.9
Property	16.4		17.2
Total Earned Premiums	$	1,166.4	$	1,074.8

Note 12 - Business Segments (continued)

Segment Revenues, including a reconciliation to Total Revenues, for the three months ended March 31, 2020 and 2019 were:

	Three Months Ended
(Dollars in Millions)	Mar 31, 2020			Mar 31, 2019
Segment Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums	$	822.5		$	729.3
Net Investment Income	28.8			21.5
Other Income	0.9			0.8
Total Specialty Property & Casualty Insurance	852.2			751.6
Preferred Property & Casualty Insurance:
Earned Premiums	180.9			185.6
Net Investment Income	9.7			8.3
Total Preferred Property & Casualty Insurance	190.6			193.9
Life & Health Insurance:
Earned Premiums	163.0			159.9
Net Investment Income	51.0			51.7
Other Income	0.1			1.1
Total Life & Health Insurance	214.1			212.7
Total Segment Revenues	1,256.9			1,158.2
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	(117.8		)	64.4
Net Realized Gains on Sales of Investments	16.5			16.1
Impairment Losses	(12.0		)	(3.6		)
Other	85.4			1.2
Total Revenues	$	1,229.0		$	1,236.3

Note 12 - Business Segments (continued)

Segment Operating Profit, including a reconciliation to Income from Continuing Operations before Income Taxes, for the three months ended March 31, 2020 and 2019 was:

	Three Months Ended
(Dollars in Millions)	Mar 31, 2020			Mar 31, 2019
Segment Operating Profit:
Specialty Property & Casualty Insurance	$	75.0		$	99.4
Preferred Property & Casualty Insurance	23.0			3.3
Life & Health Insurance	26.5			29.3
Total Segment Operating Profit	124.5			132.0
Corporate and Other Operating Profit (Loss) From:
Partial Satisfaction of Judgment	89.4			—
Other	(11.1		)	(8.6		)
Corporate and Other Operating Profit (Loss)	78.3			(8.6		)
Adjusted Consolidated Operating Profit	202.8			123.4
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	(117.8		)	64.4
Net Realized Gains on Sales of Investments	16.5			16.1
Impairment Losses	(12.0		)	(3.6		)
Acquisition Related Transaction, Integration and Other Costs	(11.8		)	(5.6		)
Income from Continuing Operations before Income Taxes	$	77.7		$	194.7

Segment Net Operating Income, including a reconciliation to Income from Continuing Operations, for the three months ended March 31, 2020 and 2019 was:

	Three Months Ended
(Dollars in Millions and Net of Income Taxes)	Mar 31, 2020			Mar 31, 2019
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance	$	60.1		$	79.6
Preferred Property & Casualty Insurance	18.4			2.8
Life & Health Insurance	22.3			23.1
Total Segment Net Operating Income	100.8			105.5
Corporate and Other Net Operating Income (Loss) From:
Partial Satisfaction of Judgment	70.6			—
Other	(8.5		)	(6.6		)
Total Corporate and Other Net Operating Income (Loss)	62.1			(6.6		)
Adjusted Consolidated Net Operating Income	162.9			98.9
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	(93.1		)	50.9
Net Realized Gains on Sales of Investments	13.0			12.7
Impairment Losses	(9.5		)	(2.8		)
Acquisition Related Transaction, Integration and Other Costs	(9.3		)	(4.4		)
Income from Continuing Operations	$	64.0		$	155.3