| Segment Information |
18 - Segment Information
We have three reportable segments, which consist of our investment function, our commercial lines of insurance and our personal lines of insurance. Using independent agents, our insurance subsidiaries market commercial lines of insurance to small and medium-sized businesses and personal lines of insurance to individuals.
Our chief operating decision maker, which is our Chief Executive Officer, evaluates the performance of the commercial lines and personal lines primarily based upon our insurance subsidiaries’ underwriting results
as determined under SAP. This segmentation is consistent with the segmentation we utilize to manage our business. We make resource allocation decisions based upon historical underwriting results as well as perceived opportunities for future
profitable growth within each segment.
We operate only in the United States, and no single customer or agent provides 10 percent or more of our revenues.
Financial data by segment is as follows:
| |
|
2025
|
|
| |
|
Investments
|
|
|
Commercial Lines
|
|
|
Personal
Lines
|
|
|
Total
|
|
| |
|
(in thousands)
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums earned
|
|
$
|
— |
|
|
$
|
555,873 |
|
|
$
|
365,311 |
|
|
$
|
921,184 |
|
|
Net investment income
|
|
|
52,627 |
|
|
|
— |
|
|
|
— |
|
|
|
52,627 |
|
|
Investment gains
|
|
|
619 |
|
|
|
— |
|
|
|
— |
|
|
|
619 |
|
|
Total segment revenues
|
|
|
53,246 |
|
|
|
555,873 |
|
|
|
365,311 |
|
|
|
974,430 |
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,584 |
|
|
Total revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
978,014 |
|
|
Segment expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net losses and loss expenses
|
|
|
— |
|
|
|
345,493 |
|
|
|
218,878 |
|
|
|
564,371 |
|
|
Other underwriting expenses
|
|
|
— |
|
|
|
202,697 |
|
|
|
102,583 |
|
|
|
305,280 |
|
|
Policyholder dividends
|
|
|
— |
|
|
|
3,011 |
|
|
|
— |
|
|
|
3,011 |
|
|
Total segment expenses
|
|
|
— |
|
|
|
551,201 |
|
|
|
321,461 |
|
|
|
872,662 |
|
|
SAP underwriting income
|
|
|
— |
|
|
|
4,672 |
|
|
|
43,850 |
|
|
|
48,522 |
|
|
GAAP adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,849 |
)
|
|
GAAP underwriting income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
42,673 |
|
|
Net investment income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52,627 |
|
|
Investment gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
619 |
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,674 |
|
|
Income before income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
97,593 |
|
| |
|
2024
|
|
| |
|
Investments
|
|
|
Commercial Lines
|
|
|
Personal
Lines
|
|
|
Total
|
|
| |
|
(in thousands)
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums earned
|
|
$
|
— |
|
|
$
|
539,683 |
|
|
$
|
396,968 |
|
|
$
|
936,651 |
|
|
Net investment income
|
|
|
44,918 |
|
|
|
— |
|
|
|
— |
|
|
|
44,918 |
|
|
Investment gains
|
|
|
4,981 |
|
|
|
— |
|
|
|
— |
|
|
|
4,981 |
|
|
Total segment revenues
|
|
|
49,899 |
|
|
|
539,683 |
|
|
|
396,968 |
|
|
|
986,550 |
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,055 |
|
|
Total revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
989,605 |
|
|
Segment expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net losses and loss expenses
|
|
|
— |
|
|
|
336,353 |
|
|
|
271,918 |
|
|
|
608,271 |
|
|
Other underwriting expenses
|
|
|
— |
|
|
|
193,431 |
|
|
|
119,311 |
|
|
|
312,742 |
|
|
Policyholder dividends
|
|
|
— |
|
|
|
4,073 |
|
|
|
— |
|
|
|
4,073 |
|
|
Total segment expenses
|
|
|
— |
|
|
|
533,857 |
|
|
|
391,229 |
|
|
|
925,086 |
|
|
SAP underwriting income
|
|
|
— |
|
|
|
5,826 |
|
|
|
5,739 |
|
|
|
11,565 |
|
|
GAAP adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,331 |
|
|
GAAP underwriting income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,896 |
|
|
Net investment income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44,918 |
|
|
Investment gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,981 |
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(456 |
)
|
|
Income before income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
62,339 |
|
| |
|
2023
|
|
| |
|
Investments
|
|
|
Commercial Lines
|
|
|
Personal
Lines
|
|
|
Total
|
|
| |
|
(in thousands)
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums earned
|
|
$
|
— |
|
|
$
|
533,029 |
|
|
$
|
349,042 |
|
|
$
|
882,071 |
|
|
Net investment income
|
|
|
40,853 |
|
|
|
— |
|
|
|
— |
|
|
|
40,853 |
|
|
Investment losses
|
|
|
3,173 |
|
|
|
— |
|
|
|
— |
|
|
|
3,173 |
|
|
Total segment revenues
|
|
|
44,026 |
|
|
|
533,029 |
|
|
|
349,042 |
|
|
|
926,097 |
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,241 |
|
|
Total revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
927,338 |
|
|
Segment expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net losses and loss expenses
|
|
|
— |
|
|
|
346,177 |
|
|
|
265,894 |
|
|
|
612,071 |
|
|
Other underwriting expenses
|
|
|
— |
|
|
|
188,537 |
|
|
|
118,266 |
|
|
|
306,803 |
|
|
Policyholder dividends
|
|
|
— |
|
|
|
5,313 |
|
|
|
— |
|
|
|
5,313 |
|
|
Total segment expenses
|
|
|
— |
|
|
|
540,027 |
|
|
|
384,160 |
|
|
|
924,187 |
|
|
SAP underwriting loss
|
|
|
— |
|
|
|
(6,998 |
)
|
|
|
(35,118 |
)
|
|
|
(42,116 |
)
|
|
GAAP adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,735 |
|
|
GAAP underwriting loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(38,381 |
)
|
|
Net investment income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40,853 |
|
|
Investment gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,173 |
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(582 |
)
|
|
Income before income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,063 |
|
|