Business Segments

9 Months Ended

Sep. 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 nine and three months ended September 30, 2021 and 2020 were:

	Nine Months Ended				Three Months Ended
(Dollars in Millions)	Sep 30, 2021		Sep 30, 2020		Sep 30, 2021		Sep 30, 2020
Specialty Property & Casualty Insurance:
Specialty Automobile	$	2,615.6	$	2,235.2	$	920.6	$	792.2
Commercial Automobile	300.6		217.7		107.7		79.2
Preferred Property & Casualty Insurance:
Personal Automobile	309.1		324.6		102.6		110.6
Homeowners	154.6		167.4		52.5		55.0
Other Personal Lines	25.4		27.0		8.6		8.9
Life & Health Insurance:
Life	300.2		289.2		101.5		96.3
Accident and Health	142.3		149.1		47.0		48.9
Property	46.8		48.0		15.6		15.4
Total Earned Premiums	$	3,894.6	$	3,458.2	$	1,356.1	$	1,206.5

Note 4 - Business Segments (continued)

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

	Nine Months Ended				Three Months Ended
(Dollars in Millions)	Sep 30, 2021		Sep 30, 2020		Sep 30, 2021		Sep 30, 2020
Segment Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums	$	2,916.2	$	2,452.9	$	1,028.3	$	871.4
Net Investment Income	114.7		76.2		37.0		30.5
Change in Value of Alternative Energy Partnership Investments	(22.3)		—		(11.3)		—
Other Income	3.1		1.4		1.2		0.4
Total Specialty Property & Casualty Insurance	3,011.7		2,530.5		1,055.2		902.3
Preferred Property & Casualty Insurance:
Earned Premiums	489.1		519.0		163.7		174.5
Net Investment Income	51.5		24.3		16.1		10.3
Change in Value of Alternative Energy Partnership Investments	(12.5)		—		(6.4)		—
Other Income	—		0.1		—		—
Total Preferred Property & Casualty Insurance	528.1		543.4		173.4		184.8
Life & Health Insurance:
Earned Premiums	489.3		486.3		164.1		160.6
Net Investment Income	151.9		146.0		48.4		50.7
Change in Value of Alternative Energy Partnership Investments	(12.1)		—		(6.1)		—
Other Income	0.3		0.6		0.1		—
Total Life & Health Insurance	629.4		632.9		206.5		211.3
Total Segment Revenues	4,169.2		3,706.8		1,435.1		1,298.4
Income (Loss) from Change in Fair Value of Equity and Convertible    Securities	92.4		(1.0)		(0.6)		45.2
Net Realized Gains on Sales of Investments	43.1		38.2		10.1		10.0
Impairment Losses	(7.8)		(20.0)		(0.6)		(1.0)
Other	18.2		89.6		11.4		1.1
Total Revenues	$	4,315.1	$	3,813.6	$	1,455.4	$	1,353.7

Note 4 - Business Segments (continued)

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

	Nine Months Ended				Three Months Ended
(Dollars in Millions)	Sep 30, 2021		Sep 30, 2020		Sep 30, 2021		Sep 30, 2020
Segment Operating Income (Loss):
Specialty Property & Casualty Insurance	$	(128.7)	$	309.4	$	(91.8)	$	149.9
Preferred Property & Casualty Insurance	(27.8)		(18.0)		(17.4)		(41.8)
Life & Health Insurance	6.5		61.6		(5.9)		15.2
Total Segment Operating Income (Loss)	(150.0)		353.0		(115.1)		123.3
Corporate and Other Operating Income (Loss) From:
Partial Satisfaction of Judgment	—		89.4		—		—
Other	(40.8)		(26.8)		(15.5)		(11.0)
Corporate and Other Operating Income (Loss)	(40.8)		62.6		(15.5)		(11.0)
Adjusted Consolidated Operating Income (Loss)	(190.8)		415.6		(130.6)		112.3
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	92.4		(1.0)		(0.6)		45.2
Net Realized Gains on Sales of Investments	43.1		38.2		10.1		10.0
Impairment Losses	(7.8)		(20.0)		(0.6)		(1.0)
Acquisition Related Transaction, Integration and Other Costs	(34.8)		(43.3)		(8.1)		(14.4)
Income (Loss) before Income Taxes	$	(97.9)	$	389.5	$	(129.8)	$	152.1

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

	Nine Months Ended				Three Months Ended
(Dollars in Millions and Net of Income Taxes)	Sep 30, 2021		Sep 30, 2020		Sep 30, 2021		Sep 30, 2020
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance	$	(70.9)	$	246.8	$	(59.3)	$	119.2
Preferred Property & Casualty Insurance	(5.1)		(13.4)		(6.4)		(32.7)
Life & Health Insurance	23.1		50.6		2.8		12.2
Total Segment Net Operating Income (Loss)	(52.9)		284.0		(62.9)		98.7
Corporate and Other Net Operating Income (Loss) From:
Partial Satisfaction of Judgment	—		70.6		—		—
Other	(35.1)		(21.6)		(12.9)		(7.8)
Total Corporate and Other Net Operating Income (Loss)	(35.1)		49.0		(12.9)		(7.8)
Adjusted Consolidated Net Operating Income (Loss)	(88.0)		333.0		(75.8)		90.9
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	73.0		(0.8)		(0.5)		35.7
Net Realized Gains on Sales of Investments	34.0		30.2		7.9		7.9
Impairment Losses	(6.2)		(15.8)		(0.5)		(0.8)
Acquisition Related Transaction, Integration and Other Costs	(27.5)		(34.2)		(6.4)		(11.4)
Net Income (Loss)	$	(14.7)	$	312.4	$	(75.3)	$	122.3