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Segment Information
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company changed its reportable segments from four to three effective January 1, 2019. The exit from the specialty insurance business resulted in the elimination of specialty insurance as a reportable segment as it no longer is material to the Company's results and is disclosed as "specialty run-off." The three remaining reportable segments are: personal insurance, commercial insurance, and investment operations. The reportable insurance segments are business units managed separately because of the differences in the type of customers they serve, the products they provide or services they offer. The insurance segments market a broad line of property and casualty insurance products throughout the United States through independent insurance agencies, which include retail agents and wholesale brokers. The investment operations segment, managed by Stateco, provides investment services.
The Company evaluates the performance of its insurance segments using industry financial measurements based on Statutory Accounting Practices (“SAP”), which include loss and loss adjustment expense ratios, underwriting expense ratios, combined ratios, statutory underwriting gain (loss), net premiums earned and net written premiums. One of the most significant differences between SAP and GAAP is that SAP requires all underwriting expenses to be expensed immediately and not deferred and amortized over the same period the premium is earned.
The investment operations segment is evaluated based on investment returns of assets managed by Stateco. Asset information by segment is not reported for the insurance segments because the Company does not produce such information internally.
The following table sets forth financial information regarding the Company’s reportable segments and specialty run-off for the three months ended March 31, 2020 and 2019:
($ millions)
Three months ended March 31
 
2020
 
2019
Revenue from external sources:
 
 
 
Insurance operations
 
 
 
Personal insurance
$
198.1

 
$
181.5

Commercial insurance
132.4

 
116.4

Specialty run-off
—

 
4.8

Total insurance operations
330.5

 
302.7

Investment operations
 
 
 
Net investment income
18.9

 
19.4

Net investment (loss) gain
(135.2
)
 
44.9

Total investment operations
(116.3
)
 
64.3

All other
0.6

 
0.6

Total revenue from external sources
214.8

 
367.6

Intersegment revenue
1.6

 
1.6

Total revenue
216.4

 
369.2

Reconciling items:
 
 
 
Eliminate intersegment revenue
(1.6
)
 
(1.6
)
Total consolidated revenues
$
214.8

 
$
367.6

Segment (loss) income before federal income tax:
 
 
 
Insurance operations SAP underwriting (loss) gain
 
 
 
Personal insurance
$
0.3

 
$
4.2

Commercial insurance
(30.0
)
 
(5.9
)
Specialty run-off
(0.4
)
 
(1.4
)
Total insurance operations
(30.1
)
 
(3.1
)
Investment operations
 
 
 
Net investment income
18.9

 
19.4

Net investment (loss) gain
(135.2
)
 
44.9

Total investment operations
(116.3
)
 
64.3

All other
0.1

 
0.1

Total segment (loss) income before reconciling items
(146.3
)
 
61.3

Reconciling items:
 
 
 
GAAP expense adjustments
5.9

 
4.1

Interest expense on corporate debt
(1.2
)
 
(1.2
)
Corporate expenses
(2.4
)
 
(2.6
)
Total reconciling items
2.3

 
0.3

Total consolidated (loss) income before federal income tax
$
(144.0
)
 
$
61.6

 
 
 
 

Investable assets attributable to the Company’s investment operations segment totaled $2,667.7 million and $2,747.3 million at March 31, 2020, and December 31, 2019, respectively.