v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company is primarily engaged in writing personal automobile insurance and provides related property and casualty insurance products to its customers through 12 subsidiaries in 11 states, principally in California. The Company has one reportable business segment - the Property and Casualty business segment.
The Company’s Chief Operating Decision Maker ("CODM") consists of chairman of the board of directors and chief executive officer. The CODM reviews operating results based on pre-tax underwriting results which is calculated as net premiums earned less (a) losses and loss adjustment expenses and (b) underwriting expenses (policy acquisition costs and other operating expenses). The CODM evaluates operating results by line of insurance business that is further segregated by state to obtain a more disaggregated view of the Company’s operations. These operating results provide the CODM with significant information in making key operating decisions that include making price adjustments, hiring additional resources, and redeploying resources to a different line of insurance business or a different state. The lines of insurance business largely consist of private passenger automobile insurance, homeowners insurance, commercial automobile insurance, commercial property insurance, and automobile mechanical protection warranties.
The Company manages its business operations under one reportable business segment and one non-reportable business segment based on lines of insurance business. In identifying its reportable and non-reportable business segments, the Company considered the financial information provided to its CODM. After considering various factors, including the development and utilization of financial data provided to the CODM, the Company concluded that identifying its operating segments by line of insurance business was consistent with the objectives of ASC 280-10. Certain operating segments have been aggregated based on similar characteristics, including the nature of products and services provided, the method used to deliver those products and services, types of customers, and the nature of the regulatory environment, to arrive at the Company’s reportable business segment (Property and Casualty Lines) and its non-reportable business segment (Other Lines).
Expenses are allocated based on certain assumptions that are primarily related to premiums and losses. The Company’s net investment income, net realized investment gains or losses, other income, and interest expense are excluded in evaluating pre-tax underwriting profit. The Company does not allocate its assets, including investments, or income taxes in evaluating pre-tax underwriting profit.
Property and Casualty Lines
The Property and Casualty Lines business segment offers several insurance products to the Company’s individual customers and small business customers. The major insurance products (lines of insurance business) are: private passenger automobile, which is the Company’s primary business, and related insurance products such as homeowners, commercial automobile and commercial property. These related insurance products are primarily sold to the Company’s individual customers and small business customers, which increases retention of the Company’s private passenger automobile client base. The insurance products comprising the Property and Casualty Lines business segment are sold through the same distribution channels, mainly through independent and 100% owned insurance agents, and go through a similar underwriting process.

Other Lines

The Other Lines business segment represents an operating segment that does not meet the quantitative thresholds required to be considered a reportable segment. This operating segment offers automobile mechanical protection warranties which are primarily sold through automobile dealerships and credit unions.
The following tables present the Company's operating results by reportable segment:
Three Months Ended June 30,
20252024
 Property & CasualtyOtherTotalProperty & CasualtyOtherTotal
(Amounts in millions)
Net premiums earned$1,359.3 $7.4 $1,366.7 $1,228.7 $7.3 $1,236.0 
Less:
Losses793.3 3.9 797.2 796.9 3.9 800.8 
Loss adjustment expenses142.3 0.5 142.8 135.5 0.4 135.9 
         Losses and loss adjustment expenses935.6 4.4 940.0 932.4 4.3 936.7 
Policy acquisition costs225.0 2.9 227.9 200.8 2.9 203.7 
Other operating expenses95.2 0.8 96.0 81.2 0.5 81.7 
   Underwriting gain (loss)103.5 (0.7)102.8 14.3 (0.4)13.9 
Investment income78.8 69.0 
Net realized investment gains 23.5 2.9 
Other income (loss)8.8 (2.9)
Interest expense(7.2)(7.8)
Pre-tax income$206.7 $75.1 
Net income$166.5 $62.6 

Six Months Ended June 30,
20252024
 Property & CasualtyOtherTotalProperty & CasualtyOtherTotal
(Amounts in millions)
Net premiums earned$2,635.1 $14.7 $2,649.8 $2,388.1 $14.6 $2,402.7 
Less:
Losses1,859.0 7.6 1,866.6 1,579.1 7.5 1,586.6 
Loss adjustment expenses293.3 1.0 294.3 253.3 0.8 254.1 
         Losses and loss adjustment expenses2,152.3 8.6 2,160.9 1,832.4 8.3 1,840.7 
Policy acquisition costs450.8 5.8 456.6 393.9 5.8 399.7 
Other operating expenses174.1 1.4 175.5 157.4 1.4 158.8 
   Underwriting (loss) gain(142.1)(1.1)(143.2)4.4 (0.9)3.5 
Investment income160.2 134.0 
Net realized investment gains 46.8 41.1 
Other income15.0 1.3 
Interest expense(14.3)(15.6)
Pre-tax income$64.5 $164.3 
Net income$58.1 $136.0 
The following tables present the Company’s net premiums earned and direct premiums written by reportable segment and line of insurance business:
Three Months Ended June 30,
 20252024
 Property & CasualtyOtherTotalProperty & CasualtyOtherTotal
(Amounts in millions)
Private passenger automobile$887.4 $— $887.4 $799.6 $— $799.6 
Homeowners316.9 — 316.9 283.6 — 283.6 
Commercial automobile95.9 — 95.9 94.2 — 94.2 
Other59.1 7.4 66.5 51.3 7.3 58.6 
Net premiums earned$1,359.3 $7.4 $1,366.7 $1,228.7 $7.3 $1,236.0 
Private passenger automobile$881.5 $— $881.5 $847.6 $— $847.6 
Homeowners434.5 — 434.5 361.9 — 361.9 
Commercial automobile93.9 — 93.9 98.8 — 98.8 
Other67.3 7.8 75.1 72.2 6.8 79.0 
Direct premiums written$1,477.2 $7.8 $1,485.0 $1,380.5 $6.8 $1,387.3 

Six Months Ended June 30,
 20252024
 Property & CasualtyOtherTotalProperty & CasualtyOtherTotal
(Amounts in millions)
Private passenger automobile$1,746.0 $— $1,746.0 $1,553.9 $— $1,553.9 
Homeowners572.9 — 572.9 550.5 — 550.5 
Commercial automobile191.2 — 191.2 183.4 — 183.4 
Other125.0 14.7 139.7 100.3 14.6 114.9 
Net premiums earned$2,635.1 $14.7 $2,649.8 $2,388.1 $14.6 $2,402.7 
Private passenger automobile$1,788.0 $— $1,788.0 $1,673.1 $— $1,673.1 
Homeowners778.7 — 778.7 664.0 — 664.0 
Commercial automobile200.4 — 200.4 202.8 — 202.8 
Other148.5 14.8 163.3 135.1 13.4 148.5 
Direct premiums written$2,915.6 $14.8 $2,930.4 $2,675.0 $13.4 $2,688.4