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Segment Information
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company's 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 and nine months ended September 30, 2020 and 2019:
($ millions)Three months ended September 30Nine months ended September 30
2020201920202019
Revenue from external sources:
Insurance operations
Personal insurance$208.8 $192.7 $609.7 $562.5 
Commercial insurance144.4 127.0 414.7 361.4 
Specialty run-off— (0.1)— 6.1 
Total insurance operations353.2 319.6 1,024.4 930.0 
Investment operations
Net investment income17.9 19.3 54.5 60.4 
Net investment gain (loss)20.0 (5.0)(39.3)50.2 
Total investment operations 37.9 14.3 15.2 110.6 
All other0.5 0.6 1.6 1.6 
Total revenue from external sources391.6 334.5 1,041.2 1,042.2 
Intersegment revenue1.5 1.7 4.6 4.9 
Total revenue393.1 336.2 1,045.8 1,047.1 
Reconciling items:
Eliminate intersegment revenue(1.5)(1.7)(4.6)(4.9)
Total consolidated revenues$391.6 $334.5 $1,041.2 $1,042.2 
Segment income (loss) before federal income tax:
Insurance operations SAP underwriting (loss) gain
Personal insurance $(30.7)$(6.3)$(70.8)$(32.0)
Commercial insurance14.4 1.2 (28.0)(17.1)
Specialty run-off(10.4)(0.6)(17.1)(1.3)
Total insurance operations(26.7)(5.7)(115.9)(50.4)
Investment operations
Net investment income17.9 19.3 54.5 60.4 
Net investment gain (loss)20.0 (5.0)(39.3)50.2 
Total investment operations 37.9 14.3 15.2 110.6 
All other— — 0.1 0.2 
Total segment income (loss) before reconciling items11.2 8.6 (100.6)60.4 
Reconciling items:
GAAP expense adjustments5.6 7.2 20.2 17.3 
Interest expense on corporate debt(1.1)(1.2)(3.6)(3.7)
Corporate expenses(0.9)(1.9)(3.6)(7.3)
Total reconciling items3.6 4.1 13.0 6.3 
Total consolidated income (loss) before federal income tax$14.8 $12.7 $(87.6)$66.7 
Investable assets attributable to the Company’s investment operations segment totaled $2,782.2 million and $2,747.3 million at September 30, 2020, and December 31, 2019, respectively.