Business Segments

12 Months Ended

Dec. 31, 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 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.

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.

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 (Loss) Income to its insurance operations. The amount of such allocated corporate expenses was $127.8 million, $121.9 million and $109.5 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company does not allocate (Loss) Income from Change in Fair Value of Equity and Convertible Securities, Net Realized Gains on Sales of Investments, Impairment Losses, Acquisition and Disposition Related Transaction, Integration, Restructuring 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.

NOTE 6. BUSINESS SEGMENTS (Continued)

Segment Assets at December 31, 2022 and 2021 were:

DOLLARS IN MILLIONS	2022		2021
Specialty Property & Casualty Insurance	$	5,492.3	$	5,936.5
Preferred Property & Casualty Insurance	1,175.3		1,230.1
Life & Health Insurance	4,850.8		6,062.6
Corporate and Other, Net	1,845.6		1,687.3
Total Assets	$	13,364.0	$	14,916.5

Earned Premiums by product line for the years ended December 31, 2022, 2021 and 2020 were:

DOLLARS IN MILLIONS	2022		2021		2020
Specialty Property & Casualty Insurance:
Personal Automobile	$	3,496.7	$	3,533.7	$	3,031.3
Commercial Automobile	549.7		414.8		304.0
Preferred Property & Casualty Insurance:
Preferred Automobile	363.7		410.5		431.7
Homeowners	200.0		207.3		220.7
Other Personal Lines	31.8		33.9		35.8
Life & Health Insurance:
Life	405.7		401.7		385.7
Accident & Health	168.2		189.9		199.3
Property	50.5		61.9		63.7
Total Earned Premiums	$	5,266.3	$	5,253.7	$	4,672.2

NOTE 6. BUSINESS SEGMENTS (Continued)

Segment Revenues, including a reconciliation to Total Revenues, for the years ended December 31, 2022, 2021 and 2020 were:

DOLLARS IN MILLIONS	2022		2021		2020
Segment Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums	$	4,046.4	$	3,948.5	$	3,335.3
Net Investment Income	140.7		152.5		114.1
Change in Value of Alternative Energy Partnership Investments	(9.9)		(29.0)		—
Other Income	6.0		4.1		1.8
Total Specialty Property & Casualty Insurance	4,183.2		4,076.1		3,451.2
Preferred Property & Casualty Insurance:
Earned Premiums	595.5		651.7		688.2
Net Investment Income	49.7		68.6		37.7
Change in Value of Alternative Energy Partnership Investments	(4.7)		(16.3)		—
Other Income	—		—		0.1
Total Preferred Property & Casualty Insurance	640.5		704.0		726.0
Life & Health Insurance:
Earned Premiums	624.4		653.5		648.7
Net Investment Income	216.5		202.7		198.8
Change in Value of Alternative Energy Partnership Investments	(5.3)		(15.8)		—
Other (Loss) Income	(0.6)		(1.3)		0.6
Total Life & Health Insurance	835.0		839.1		848.1
Total Segment Revenues	5,658.7		5,619.2		5,025.3
(Loss) Income from Change in Fair Value of Equity and Convertible Securities	(79.9)		114.6		72.1
Net Realized Investment Gains	4.3		64.8		38.1
Net Impairment Losses Recognized in Earnings	(25.8)		(11.0)		(19.5)
Other	19.5		5.4		89.7
Total Revenues	$	5,576.8	$	5,793.0	$	5,205.7

NOTE 6. BUSINESS SEGMENTS (Continued)

Segment Operating (Loss) Income, including a reconciliation to (Loss) Income before Income Taxes, for the years ended December 31, 2022, 2021 and 2020 was:

DOLLARS IN MILLIONS	2022		2021		2020
Segment Operating (Loss) Income:
Specialty Property & Casualty Insurance	$	(196.9)	$	(292.1)	$	420.9
Preferred Property & Casualty Insurance	(36.4)		(39.8)		1.8
Life & Health Insurance	59.5		10.5		71.2
Total Segment Operating (Loss) Income	(173.8)		(321.4)		493.9
Corporate and Other Operating (Loss) Income From:
Partial Satisfaction of Judgment	—		—		89.4
Other	(47.7)		(48.4)		(36.5)
Corporate and Other Operating (Loss) Income	(47.7)		(48.4)		52.9
Adjusted Consolidated Operating (Loss) Income	(221.5)		(369.8)		546.8
(Loss) Income from Change in Fair Value of Equity and Convertible Securities	(79.9)		114.6		72.1
Net Realized Investment Gains	4.3		64.8		38.1
Impairment Losses	(25.8)		(11.0)		(19.5)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(62.9)		(43.9)		(63.3)
Pension Obligation Settlement Costs	—		—		(64.1)
Loss from Early Extinguishment of Debt	(3.7)		—		—
(Loss) Income before Income Taxes	$	(389.5)	$	(245.3)	$	510.1

Segment Net Operating (Loss) Income, including a reconciliation to Net (Loss) Income, for the years ended December 31, 2022, 2021 and 2020 was:

DOLLARS IN MILLIONS	2022		2021		2020
Segment Net Operating (Loss) Income:
Specialty Property & Casualty Insurance	$	(147.4)	$	(196.1)	$	337.9
Preferred Property & Casualty Insurance	(25.9)		(12.5)		3.5
Life & Health Insurance	54.2		28.2		60.0
Total Segment Net Operating (Loss) Income	(119.1)		(180.4)		401.4
Corporate and Other Net Operating (Loss) Income From:
Partial Satisfaction of Judgment	—		—		70.6
Other	(37.8)		(38.4)		(33.2)
Total Corporate and Other Net Operating (Loss) Income	(37.8)		(38.4)		37.4
Adjusted Consolidated Net Operating (Loss) Income	(156.9)		(218.8)		438.8
Net (Loss) Income From:
Change in Fair Value of Equity and Convertible Securities	(63.1)		90.5		57.0
Net Realized Investment Gains	3.4		51.2		30.1
Impairment Losses	(20.4)		(8.7)		(15.4)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(61.3)		(34.7)		(50.0)
Pension Obligation Settlement Costs	—		—		(50.6)
Loss from Early Extinguishment of Debt	(2.9)		—		—
Net (Loss) Income	$	(301.2)	$	(120.5)	$	409.9