v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
We evaluate the results of our four reportable segments as follows:

•Our Standard Commercial Lines, Standard Personal Lines, and E&S Lines are evaluated on (i) before and after-tax underwriting results (net premiums earned, incurred loss and loss expense, policyholder dividends, policy acquisition costs, and other underwriting expenses), (ii) their return on equity ("ROE") contribution, and (iii) their combined ratios.

•Our Investments segment is primarily evaluated on after-tax net investment income and its ROE contribution. After-tax net realized and unrealized gains and losses are also included in our Investments segment results.

In computing each segment's results, we do not make adjustments for interest expense or corporate expenses. No segment has a separate investment portfolio or allocated assets.

(a) The following table presents revenues by segments and a reconciliation to consolidated revenue.

Revenue by SegmentQuarter ended
June 30,		Six Months ended
June 30,
($ in thousands)2026202520262025
Standard Commercial Lines:  
Net premiums earned ("NPE"):
  
General liability$318,688 305,843 $633,790 600,530 
Commercial automobile291,411 288,759 587,791 572,344 
Commercial property198,475 191,027 400,109 377,557 
Workers compensation81,906 82,024 161,727 161,060 
Businessowners' policies52,443 48,416 104,202 95,309 
Bonds9,921 13,255 22,008 26,513 
Other9,200 8,311 18,176 16,532 
Total Standard Commercial Lines NPE
962,044 937,635 1,927,803 1,849,845 
Standard Personal Lines:
Net premiums earned:
Personal automobile44,656 51,287 91,320 104,255 
Homeowners49,937 48,312 100,016 96,255 
Other3,046 2,778 6,331 5,522 
Total Standard Personal Lines NPE
97,639 102,377 197,667 206,032 
E&S Lines:
Net premiums earned:
Casualty lines92,663 87,400 182,174 172,519 
Property lines63,162 60,645 125,060 118,418 
Total E&S Lines NPE
155,825 148,045 307,234 290,937 
Investments:    
Net investment income earned150,167 127,968 292,550 248,659 
Net realized and unrealized investment gains (losses)11,971 4,172 3,670 4,401 
Total Investments revenue162,138 132,140 296,220 253,060 
Total segments revenue1,377,646 1,320,197 2,728,924 2,599,874 
Other income9,389 6,548 17,036 12,057 
Total revenues $1,387,035 1,326,745 $2,745,960 2,611,931 
(b) The following tables present information about our segments' pre- and after-tax income, significant expenses, and reconciliations to consolidated results for the periods indicated.

Quarter Ended June 30, 2026Standard Commercial LinesStandard Personal LinesE&S LinesTotal Insurance OperationsInvestmentsTotal Reportable Segments
($ in thousands)
Total segment revenues
$962,044 97,639 155,825 1,215,508 162,138 1,377,646 
Loss and loss expense incurred:
Net catastrophe losses48,666 11,937 7,936 68,539 — 68,539 
Non-catastrophe property loss and loss expense122,894 31,195 16,409 170,498 — 170,498 
(Favorable)/unfavorable prior year casualty reserve development— — — — — — 
Current year casualty loss costs
480,689 25,872 70,668 577,229 — 577,229 
Total loss and loss expense incurred652,249 69,004 95,013 816,266 — 816,266 
Net underwriting expenses incurred:
Commissions to distribution partners171,877 5,465 35,612 212,954 — 212,954 
Salaries and employee benefits81,857 10,296 9,220 101,373 — 101,373 
Other segment expenses
48,366 8,446 3,224 60,036 — 60,036 
Total net underwriting expenses incurred302,100 24,207 48,056 374,363 — 374,363 
Dividends to policyholders490 — — 490 — 490 
Segment income (loss), before income tax
7,205 4,428 12,756 24,389 162,138 186,527 
Income tax (expense) benefit
(5,122)(33,475)(38,597)
Segment income (loss), after income tax
19,267 128,663 147,930 
Reconciliation of segment income (loss) to consolidated income before and after income tax
Total segment income (loss)186,527 
Interest expense(13,215)
Corporate expenses(10,467)
Income before income tax
162,845 
Income tax (expense) benefit on segment income (loss)
(38,597)
Income tax (expense) benefit on interest and corporate expenses
5,136 
Total income tax (expense) benefit
(33,460)
Net income129,385 
Preferred stock dividends(2,300)
Net income available to common stockholders127,085 
Quarter Ended June 30, 2025Standard Commercial LinesStandard Personal LinesE&S LinesTotal Insurance OperationsInvestmentsTotal Reportable Segments
($ in thousands)
Total segment revenues
$937,635 102,377 148,045 1,188,057 132,140 1,320,197 
Loss and loss expense incurred:
Net catastrophe losses50,881 14,591 14,460 79,932 — 79,932 
Non-catastrophe property loss and loss expense131,883 28,271 13,085 173,239 — 173,239 
(Favorable)/unfavorable prior year casualty reserve development45,000 — — 45,000 — 45,000 
Current year casualty loss costs
439,002 27,115 59,610 525,727 — 525,727 
Total loss and loss expense incurred666,766 69,977 87,155 823,898 — 823,898 
Net underwriting expenses incurred:
Commissions to distribution partners173,406 6,522 33,769 213,697 — 213,697 
Salaries and employee benefits78,667 8,805 7,498 94,970 — 94,970 
Other segment expenses
43,789 8,523 4,452 56,764 — 56,764 
Total net underwriting expenses incurred295,862 23,850 45,719 365,431 — 365,431 
Dividends to policyholders1,151 — — 1,151 — 1,151 
Segment income (loss), before income tax
(26,144)8,550 15,171 (2,423)132,140 129,717 
Income tax (expense) benefit
509 (27,423)(26,914)
Segment income (loss), after income tax
(1,914)104,717 102,803 
Reconciliation of segment income (loss) to consolidated income before and after income tax
Total segment income (loss)129,717 
Interest expense(13,256)
Corporate expenses(7,556)
Income before income tax
108,905 
Income tax (expense) benefit on segment income (loss)
(26,914)
Income tax (expense) benefit on interest and corporate expenses
3,952 
Total Income tax (expense) benefit
(22,962)
Net income85,943 
Preferred stock dividends(2,300)
Net income available to common stockholders83,643 
Six Months ended June 30, 2026
($ in thousands)Standard Commercial LinesStandard Personal LinesE&S LinesTotal Insurance OperationsInvestmentsTotal Reportable Segments
Total segment revenues
$1,927,803 197,667 307,234 2,432,704 296,220 2,728,924 
Loss and loss expense incurred:
Net catastrophe losses105,849 25,137 12,903 143,889 — 143,889 
Non-catastrophe property loss and loss expense250,668 60,450 37,439 348,557 — 348,557 
(Favorable)/unfavorable prior year casualty reserve development— — — — — — 
Current year casualty loss costs
952,566 52,716 134,042 1,139,324 — 1,139,324 
Total loss and loss expense incurred1,309,083 138,303 184,384 1,631,770 — 1,631,770 
Net underwriting expenses incurred:
Commissions to distribution partners347,404 11,321 70,684 429,409 — 429,409 
Salaries and employee benefits166,779 19,392 16,636 202,807 — 202,807 
Other segment expenses
97,944 17,065 6,885 121,894 — 121,894 
Total net underwriting expenses incurred612,127 47,778 94,205 754,110 — 754,110 
Dividends to policyholders1,190 — — 1,190 — 1,190 
Segment income (loss), before federal income tax5,403 11,586 28,645 45,634 296,220 341,854 
Federal income tax (expense) benefit(9,583)(61,050)(70,633)
Segment income (loss), after federal income tax36,051 235,170 271,221 
Reconciliation of segment income (loss) to consolidated income before and after federal income tax
Total segment income (loss)341,854 
Interest expense(26,436)
Corporate expenses(28,371)
Income before federal income tax287,047 
Federal income tax (expense) benefit on segment income (loss)(70,633)
Federal income tax (expense) benefit on interest and corporate expenses10,647 
Total federal income tax (expense) benefit(59,986)
Net income227,061 
Preferred stock dividends(4,600)
Net income available to common stockholders222,461 
Six Months ended June 30, 2025
($ in thousands)Standard Commercial LinesStandard Personal LinesE&S LinesTotal Insurance OperationsInvestmentsTotal Reportable Segments
Total segment revenues
$1,849,845 206,032 290,937 2,346,814 253,060 2,599,874 
Loss and loss expense incurred:
Net catastrophe losses70,692 21,704 30,893 123,289 — 123,289 
Non-catastrophe property loss and loss expense260,675 64,759 26,501 351,935 — 351,935 
(Favorable)/unfavorable prior year casualty reserve development45,000 5,000 — 50,000 — 50,000 
Current year casualty loss costs
872,065 55,183 117,751 1,044,999 — 1,044,999 
Total loss and loss expense incurred1,248,432 146,646 175,145 1,570,223 — 1,570,223 
Net underwriting expenses incurred:
Commissions to distribution partners343,577 13,874 66,475 423,926 — 423,926 
Salaries and employee benefits158,455 17,443 15,107 191,005 — 191,005 
Other segment expenses
90,473 17,482 8,357 116,312 — 116,312 
Total net underwriting expenses incurred592,505 48,799 89,939 731,243 — 731,243 
Dividends to policyholders2,134 — — 2,134 — 2,134 
Segment income (loss), before federal income tax6,774 10,587 25,853 43,214 253,060 296,274 
Federal income tax (expense) benefit(9,075)(52,541)(61,616)
Segment income (loss), after federal income tax34,139 200,519 234,658 
Reconciliation of segment income (loss) to consolidated income before and after federal income tax
Total segment income (loss)296,274 
Interest expense(22,829)
Corporate expenses(25,654)
Income before federal income tax247,791 
Federal income tax (expense) benefit on segment income (loss)(61,616)
Federal income tax (expense) benefit on interest and corporate expenses9,664 
Total federal income tax (expense) benefit(51,952)
Net income195,839 
Preferred stock dividends(4,600)
Net income available to common stockholders191,239 

The "Other segment expenses" primarily consist of (i) fees paid for licenses, (ii) depreciation expense, and (iii) general overhead items to operate our business operations, including travel, postage, telephone, and utility expenses. "Loss and loss expense incurred" includes a portion of salaries and employee benefits related to claims personnel.

(c) The following tables present reconciliations of our segments' ROE contributions and combined ratios to consolidated results.

ROE
Quarter ended June 30, Six Months ended June 30,
2026202520262025
Standard Commercial Lines segment0.7 %(2.6)0.3 %0.4 
Standard Personal Lines segment 0.4 0.9 0.5 0.5 
E&S Lines segment1.2 1.5 1.3 1.3 
Total insurance operations2.3 (0.2)2.1 2.2 
Net investment income earned
13.9 13.0 13.6 12.9 
Net realized and unrealized investment gains (losses)1.1 0.4 0.2 0.2 
Total investments segment 15.0 13.4 13.8 13.1 
Other(2.5)(2.5)(2.9)(2.8)
ROE14.8 10.7 13.0 12.5 
Combined Ratio
Quarter ended June 30,Six Months ended June 30,
2026202520262025
AmountRatioAmountRatioAmountRatioAmount Ratio
Standard Commercial Lines:
Net premiums earned
$962,044 937,635 $1,927,803 1,849,845 
Loss and loss expense incurred
652,249 67.8 
%
666,766 71.1 1,309,083 67.8 
%
1,248,432 67.5 
Net underwriting expenses incurred1
302,100 31.4 295,862 31.6 612,127 31.8 592,505 32.0 
Dividends to policyholders
490 0.1 1,151 0.1 1,190 0.1 2,134 0.1 
Underwriting income (loss)
7,205 99.3 (26,144)102.8 5,403 99.7 6,774 99.6 
Standard Personal Lines:
Net premiums earned
97,639 102,377 197,667 206,032 
Loss and loss expense incurred69,004 70.7 69,977 68.3 138,303 69.9 146,646 71.2 
Net underwriting expenses incurred1
24,207 24.8 23,850 23.3 47,778 24.2 48,799 23.7 
Underwriting income (loss)
4,428 95.5 8,550 91.6 11,586 94.1 10,587 94.9 
E&S Lines:
Net premiums earned
155,825 148,045 307,234 290,937 
Loss and loss expense incurred
95,013 61.0 87,155 58.9 184,384 60.0 175,145 60.2 
Net underwriting expenses incurred1
48,056 30.8 45,719 30.9 94,205 30.7 89,939 30.9 
Underwriting income (loss)
12,756 91.8 15,171 89.8 28,645 90.7 25,853 91.1 
Total Insurance Operations:
Net premiums earned
1,215,508 1,188,057 2,432,704 2,346,814 
Loss and loss expense incurred
816,266 67.2 823,898 69.3 1,631,770 67.1 1,570,223 66.9 
Net underwriting expenses incurred1
374,363 30.8 365,431 30.8 754,110 31.0 731,243 31.2 
Dividends to policyholders
490 — 1,151 0.1 1,190 — 2,134 0.1 
Underwriting income (loss)
24,389 98.0 (2,423)100.2 45,634 98.1 43,214 98.2 
1"Net underwriting expenses incurred" includes "Other income" allocated to each reportable segment.