Business Segments

6 Months Ended

Jun. 30, 2022

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 personal automobile insurance and commercial automobile insurance. The Preferred Property & Casualty Insurance segment’s principal products are personal 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, 2022 and 2021 were:

	Six Months Ended				Three Months Ended
(Dollars in Millions)	Jun 30, 2022		Jun 30, 2021		Jun 30, 2022		Jun 30, 2021
Specialty Property & Casualty Insurance:
Personal Automobile	$	1,807.5	$	1,695.0	$	905.8	$	909.6
Commercial Automobile	257.8		192.9		137.9		100.7
Preferred Property & Casualty Insurance:
Personal Automobile	190.0		206.5		94.0		103.5
Homeowners	99.0		102.1		47.7		51.3
Other Personal Lines	16.5		16.8		8.2		8.4
Life & Health Insurance:
Life	204.2		198.7		102.9		100.6
Accident and Health	90.9		95.3		45.1		47.9
Property	26.4		31.2		12.1		15.7
Total Earned Premiums	$	2,692.3	$	2,538.5	$	1,353.7	$	1,337.7

Note 4 - Business Segments (Continued)

Segment Revenues, including a reconciliation to Total Revenues, for the six and three months ended June 30, 2022 and 2021 were:

	Six Months Ended				Three Months Ended
(Dollars in Millions)	Jun 30, 2022		Jun 30, 2021		Jun 30, 2022		Jun 30, 2021
Segment Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums	$	2,065.3	$	1,887.9	$	1,043.7	$	1,010.3
Net Investment Income	68.9		77.7		34.0		42.7
Change in Value of Alternative Energy Partnership Investments	(10.9)		(11.0)		(2.5)		(3.7)
Other Income	2.7		1.9		1.0		1.0
Total Specialty Property & Casualty Insurance	2,126.0		1,956.5		1,076.2		1,050.3
Preferred Property & Casualty Insurance:
Earned Premiums	305.5		325.4		149.9		163.2
Net Investment Income	24.4		35.4		11.9		19.5
Change in Value of Alternative Energy Partnership Investments	(5.0)		(6.1)		(1.1)		(2.0)
Total Preferred Property & Casualty Insurance	324.9		354.7		160.7		180.7
Life & Health Insurance:
Earned Premiums	321.5		325.2		160.1		164.2
Net Investment Income	111.3		103.5		61.9		52.4
Change in Value of Alternative Energy Partnership Investments	(5.7)		(6.0)		(1.3)		(2.0)
Other Income	(0.8)		0.2		(0.8)		0.1
Total Life & Health Insurance	426.3		422.9		219.9		214.7
Total Segment Revenues	2,877.2		2,734.1		1,456.8		1,445.7
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	(68.7)		93.0		(40.5)		40.8
Net Realized Investment Gains (Losses)	12.5		33.0		11.0		19.2
Net Impairment Losses Recognized in Earnings	(13.8)		(7.2)		(4.9)		(3.2)
Other	15.3		6.8		11.4		5.2
Total Revenues	$	2,822.5	$	2,859.7	$	1,433.8	$	1,507.7

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, 2022 and 2021 was:

	Six Months Ended				Three Months Ended
(Dollars in Millions)	Jun 30, 2022		Jun 30, 2021		Jun 30, 2022		Jun 30, 2021
Segment Operating Income (Loss):
Specialty Property & Casualty Insurance	$	(111.2)	$	(36.9)	$	(51.0)	$	(122.1)
Preferred Property & Casualty Insurance	(31.1)		(10.4)		(21.6)		(13.4)
Life & Health Insurance	22.0		12.4		20.8		13.2
Total Segment Operating Income (Loss)	(120.3)		(34.9)		(51.8)		(122.3)
Corporate and Other Operating Income (Loss) From:
Other	(15.6)		(25.3)		(1.6)		(13.8)
Corporate and Other Operating Income (Loss)	(15.6)		(25.3)		(1.6)		(13.8)
Adjusted Consolidated Operating Income (Loss)	(135.9)		(60.2)		(53.4)		(136.1)
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	(68.7)		93.0		(40.5)		40.8
Net Realized Investment Gains (Losses)	12.5		33.0		11.0		19.2
Impairment Losses	(13.8)		(7.2)		(4.9)		(3.2)
Acquisition Related Transaction, Integration and Other Costs	(14.6)		(26.7)		(9.9)		(10.4)
Loss from Early Extinguishment of Debt	(3.7)		—		—		—
Income (Loss) before Income Taxes	$	(224.2)	$	31.9	$	(97.7)	$	(89.7)

Segment Net Operating Income (Loss), including a reconciliation to Net Income (Loss), for the six and three months ended June 30, 2022 and 2021 was:

	Six Months Ended				Three Months Ended
(Dollars in Millions and Net of Income Taxes)	Jun 30, 2022		Jun 30, 2021		Jun 30, 2022		Jun 30, 2021
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance	$	(83.6)	$	(11.6)	$	(38.9)	$	(91.7)
Preferred Property & Casualty Insurance	(22.9)		1.3		(16.8)		(8.3)
Life & Health Insurance	20.8		20.3		17.7		13.0
Total Segment Net Operating Income (Loss)	(85.7)		10.0		(38.0)		(87.0)
Corporate and Other Net Operating Income (Loss) From:
Other	(14.1)		(22.2)		(1.7)		(12.4)
Total Corporate and Other Net Operating Income (Loss)	(14.1)		(22.2)		(1.7)		(12.4)
Adjusted Consolidated Net Operating Income (Loss)	(99.8)		(12.2)		(39.7)		(99.4)
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	(54.3)		73.5		(32.0)		32.3
Net Realized Investment Gains (Losses)	9.9		26.1		8.7		15.2
Impairment Losses	(10.9)		(5.7)		(3.9)		(2.5)
Acquisition Related Transaction, Integration and Other Costs	(11.5)		(21.1)		(7.8)		(8.2)
Loss from Early Extinguishment of Debt	(2.9)		—		—		—
Net Income (Loss)	$	(169.5)	$	60.6	$	(74.7)	$	(62.6)