Business Segments

6 Months Ended

Jun. 30, 2021

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, 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 six and three months ended June 30, 2021 and 2020 were:

	Six Months Ended				Three Months Ended
(Dollars in Millions)	Jun 30, 2021		Jun 30, 2020		Jun 30, 2021		Jun 30, 2020
Specialty Property & Casualty Insurance:
Specialty Automobile	$	1,695.0	$	1,443.0	$	909.6	$	689.8
Commercial Automobile	192.9		138.5		100.7		69.2
Preferred Property & Casualty Insurance:
Personal Automobile	206.5		214.0		103.5		99.1
Homeowners	102.1		112.4		51.3		55.6
Other Personal Lines	16.8		18.1		8.4		8.9
Life & Health Insurance:
Life	198.7		192.9		100.6		95.7
Accident and Health	95.3		100.2		47.9		50.8
Property	31.2		32.6		15.7		16.2
Total Earned Premiums	$	2,538.5	$	2,251.7	$	1,337.7	$	1,085.3

Note 4 - Business Segments (continued)

Segment Revenues, including a reconciliation to Total Revenues, for the six and three months ended June 30, 2021 and 2020 were:

	Six Months Ended				Three Months Ended
(Dollars in Millions)	Jun 30, 2021		Jun 30, 2020		Jun 30, 2021		Jun 30, 2020
Segment Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums	$	1,887.9	$	1,581.5	$	1,010.3	759.0
Net Investment Income	77.7		45.7		42.7		16.9
Change in Value of Alternative Energy Partnership Investments	(11.0)		—		(3.7)		—
Other Income	1.9		1.0		1.0		0.1
Total Specialty Property & Casualty Insurance	1,956.5		1,628.2		1,050.3		776.0
Preferred Property & Casualty Insurance:
Earned Premiums	325.4		344.5		163.2		$	163.6
Net Investment Income	35.4		14.0		19.5		4.3
Change in Value of Alternative Energy Partnership Investments	(6.1)		—		(2.0)		—
Other Income	—		0.1		—		0.1
Total Preferred Property & Casualty Insurance	354.7		358.6		180.7		168.0
Life & Health Insurance:
Earned Premiums	325.2		325.7		164.2		162.7
Net Investment Income	103.5		95.3		52.4		44.3
Change in Value of Alternative Energy Partnership Investments	(6.0)		—		(2.0)		—
Other Income	0.2		0.6		0.1		0.5
Total Life & Health Insurance	422.9		421.6		214.7		207.5
Total Segment Revenues	2,734.1		2,408.4		1,445.7		1,151.5
Income (Loss) from Change in Fair Value of Equity and Convertible    Securities	93.0		(46.2)		40.8		71.6
Net Realized Gains on Sales of Investments	33.0		28.2		19.2		11.7
Impairment Losses	(7.2)		(19.0)		(3.2)		(7.0)
Other	6.8		88.5		5.2		3.1
Total Revenues	$	2,859.7	$	2,459.9	$	1,507.7	$	1,230.9

Note 4 - Business Segments (continued)

Segment Operating Income (Loss), including a reconciliation to Income (Loss) before Income Taxes, for the six and three months ended June 30, 2021 and 2020 was:

	Six Months Ended				Three Months Ended
(Dollars in Millions)	Jun 30, 2021		Jun 30, 2020		Jun 30, 2021		Jun 30, 2020
Segment Operating Income (Loss):
Specialty Property & Casualty Insurance	$	(36.9)	$	159.5	$	(122.1)	84.5
Preferred Property & Casualty Insurance	(10.4)		23.8		(13.4)		0.8
Life & Health Insurance	12.4		46.4		13.2		19.9
Total Segment Operating Income (Loss)	(34.9)		229.7		(122.3)		105.2
Corporate and Other Operating Income (Loss) From:
Partial Satisfaction of Judgment	—		89.4		—		—
Other	(25.3)		(15.8)		(13.8)		(4.7)
Corporate and Other Operating Income (Loss)	(25.3)		73.6		(13.8)		(4.7)
Adjusted Consolidated Operating Income (Loss)	(60.2)		303.3		(136.1)		100.5
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	93.0		(46.2)		40.8		71.6
Net Realized Gains on Sales of Investments	33.0		28.2		19.2		11.7
Impairment Losses	(7.2)		(19.0)		(3.2)		(7.0)
Acquisition Related Transaction, Integration and Other Costs	(26.7)		(28.9)		(10.4)		(17.1)
Income (Loss) before Income Taxes	$	31.9	$	237.4	$	(89.7)	$	159.7

Segment Net Operating Income (Loss), including a reconciliation to Net Income (Loss), for the six and three months ended June 30, 2021 and 2020 was:

	Six Months Ended				Three Months Ended
(Dollars in Millions and Net of Income Taxes)	Jun 30, 2021		Jun 30, 2020		Jun 30, 2021		Jun 30, 2020
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance	$	(11.6)	$	127.6	$	(91.7)	$	67.5
Preferred Property & Casualty Insurance	1.3		19.3		(8.3)		0.9
Life & Health Insurance	20.3		38.4		13.0		16.1
Total Segment Net Operating Income (Loss)	10.0		185.3		(87.0)		84.5
Corporate and Other Net Operating Income (Loss) From:
Partial Satisfaction of Judgment	—		70.6		—		—
Other	(22.2)		(13.8)		(12.4)		(5.3)
Total Corporate and Other Net Operating Income (Loss)	(22.2)		56.8		(12.4)		(5.3)
Adjusted Consolidated Net Operating Income (Loss)	(12.2)		242.1		(99.4)		79.2
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	73.5		(36.5)		32.3		56.6
Net Realized Gains on Sales of Investments	26.1		22.3		15.2		9.3
Impairment Losses	(5.7)		(15.0)		(2.5)		(5.5)
Acquisition Related Transaction, Integration and Other Costs	(21.1)		(22.8)		(8.2)		(13.5)
Net Income (Loss)	$	60.6	$	190.1	$	(62.6)	$	126.1