Business Segments

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company is engaged, through its subsidiaries, in the property and casualty insurance and life 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.

Earned Premiums by product line for the three months ended March 31, 2023 and 2022 were:

	Three Months Ended
(Dollars in Millions)	Mar 31, 2023		Mar 31, 2022
Specialty Property & Casualty Insurance:
Personal Automobile	$	787.9	$	901.7
Commercial Automobile	156.3		119.9
Preferred Property & Casualty Insurance:
Preferred Automobile	78.2		96.0
Homeowners	52.2		51.3
Other Personal Lines	7.0		8.3
Life & Health Insurance:
Life	82.2		82.7
Accident and Health	5.9		45.8
Property	11.2		14.3
Total Earned Premiums	$	1,180.9	$	1,320.0

Note 4 - Business Segments (Continued)

Segment Revenues, including a reconciliation to Total Revenues, for the three months ended March 31, 2023 and 2022 were:

	Three Months Ended
(Dollars in Millions)	Mar 31, 2023		Mar 31, 2022
Segment Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums	$	944.2	$	1,021.6
Net Investment Income	38.5		34.9
Change in Value of Alternative Energy Partnership Investments	0.4		(8.4)
Other Income	0.9		1.7
Total Specialty Property & Casualty Insurance	984.0		1,049.8
Preferred Property & Casualty Insurance:
Earned Premiums	137.4		155.6
Net Investment Income	10.5		12.5
Change in Value of Alternative Energy Partnership Investments	0.1		(3.9)
Total Preferred Property & Casualty Insurance	148.0		164.2
Life & Health Insurance:
Earned Premiums	99.3		142.8
Net Investment Income	49.8		49.4
Change in Value of Alternative Energy Partnership Investments	0.2		(4.4)
Other Loss	(0.4)		—
Total Life & Health Insurance	148.9		187.8
Total Segment Revenues	1,280.9		1,401.8
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	1.7		(28.2)
Net Realized Investment Gains	6.4		1.5
Net Impairment Gains (Losses) Recognized in Earnings	2.1		(8.9)
Other	3.7		3.9
Total Revenues	$	1,294.8	$	1,370.1

Note 4 - Business Segments (Continued)

Segment Operating Income (Loss), including a reconciliation to Loss before Income Taxes, for the three months ended March 31, 2023 and 2022 was:

	Three Months Ended
(Dollars in Millions)	Mar 31, 2023		Mar 31, 2022
Segment Operating Income (Loss):
Specialty Property & Casualty Insurance	$	(74.7)	$	(60.2)
Preferred Property & Casualty Insurance	(12.2)		(9.5)
Life & Health Insurance	14.8		12.0
Total Segment Operating Loss	(72.1)		(57.7)
Corporate and Other Operating Loss From:
Other	(12.9)		(14.0)
Corporate and Other Operating Loss	(12.9)		(14.0)
Adjusted Consolidated Operating Loss	(85.0)		(71.7)
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	1.7		(28.2)
Net Realized Investment Gains	6.4		1.5
Impairment Gains (Losses)	2.1		(8.9)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(29.1)		(4.7)
Loss from Early Extinguishment of Debt	—		(3.7)
Loss before Income Taxes	$	(103.9)	$	(115.7)

Segment Net Operating Income (Loss), including a reconciliation to Net Loss, for the three months ended March 31, 2023 and 2022 was:

	Three Months Ended
(Dollars in Millions and Net of Income Taxes)	Mar 31, 2023		Mar 31, 2022
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance	$	(58.4)	$	(44.7)
Preferred Property & Casualty Insurance	(9.5)		(6.1)
Life & Health Insurance	13.2		11.6
Total Segment Net Operating Loss	(54.7)		(39.2)
Corporate and Other Net Operating Loss From:
Other	(10.5)		(12.4)
Total Corporate and Other Net Operating Income Loss	(10.5)		(12.4)
Adjusted Consolidated Net Operating Loss	(65.2)		(51.6)
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	1.3		(22.3)
Net Realized Investment Gains	5.1		1.2
Impairment Gains (Losses)	1.7		(7.0)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(23.0)		(3.7)
Loss from Early Extinguishment of Debt	—		(2.9)
Net Loss	$	(80.1)	$	(86.3)