☒ | Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
☐ | Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Ohio | 31-1324304 | ||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
518 East Broad Street | Columbus | Ohio | 43215-3976 | ||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading symbol | Name of each exchange on which registered | ||||||
Common shares, without par value | STFC | The NASDAQ Global Select Market |
Large accelerated filer | ☐ | Accelerated filer | x | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
(Do not check if a smaller reporting company) | Emerging growth company | ☐ |
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
($ and shares in millions, except per share amounts) | September 30, 2020 | December 31, 2019 | |||||||||
(unaudited) | |||||||||||
Assets | |||||||||||
Fixed maturities, available-for-sale, at fair value (amortized cost $2,047.1 and $2,080.0, respectively) | $ | 2,166.3 | $ | 2,127.9 | |||||||
Equity securities | 339.5 | 395.2 | |||||||||
Other invested assets | 62.5 | 69.7 | |||||||||
Other invested assets, at cost | 12.5 | 6.5 | |||||||||
Notes receivable from affiliate | 70.0 | 70.0 | |||||||||
Total investments | 2,650.8 | 2,669.3 | |||||||||
Cash and cash equivalents | 131.4 | 78.0 | |||||||||
Accrued investment income and other assets | 31.1 | 31.7 | |||||||||
Premiums receivable | 14.1 | 13.6 | |||||||||
Deferred policy acquisition costs (affiliated net assumed $27.6 and $20.2, respectively) | 123.7 | 111.1 | |||||||||
Reinsurance recoverable on losses and loss expenses payable | 35.2 | 13.6 | |||||||||
Prepaid reinsurance premiums | 8.4 | 7.5 | |||||||||
Due from affiliate | 18.3 | 7.9 | |||||||||
Current federal income taxes | 6.7 | 6.3 | |||||||||
Net deferred federal income taxes | 44.6 | 42.2 | |||||||||
Property and equipment, held for sale | 4.2 | 4.2 | |||||||||
Total assets | $ | 3,068.5 | $ | 2,985.4 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Losses and loss expenses payable (affiliated net assumed $450.9 and $500.8, respectively) | $ | 1,091.3 | $ | 1,066.5 | |||||||
Unearned premiums (affiliated net assumed $450.8 and $415.8, respectively) | 731.0 | 649.2 | |||||||||
Notes payable (affiliates $15.2 and $15.2, respectively) | 122.0 | 122.0 | |||||||||
Pension and postretirement benefits | 54.0 | 72.9 | |||||||||
Other liabilities (affiliated net assumed $18.5 and $19.5, respectively) | 126.1 | 114.9 | |||||||||
Total liabilities | 2,124.4 | 2,025.5 | |||||||||
Stockholders’ equity: | |||||||||||
Class A Preferred stock (nonvoting), without par value. Authorized 2.5 shares; none issued | 0 | 0 | |||||||||
Class B Preferred stock, without par value. Authorized 2.5 shares; none issued | 0 | 0 | |||||||||
Common stock, without par value. Authorized 100.0 shares; 50.7 and 50.4 shares issued, respectively, at stated value of $2.50 per share | 126.7 | 125.9 | |||||||||
Treasury stock, 6.9 and 6.9 shares, respectively, at cost | (118.4) | (117.5) | |||||||||
Additional paid-in capital | 212.1 | 206.7 | |||||||||
Accumulated other comprehensive income (loss) | 23.3 | (37.9) | |||||||||
Retained earnings | 700.4 | 782.7 | |||||||||
Total stockholders’ equity | 944.1 | 959.9 | |||||||||
Total liabilities and stockholders’ equity | $ | 3,068.5 | $ | 2,985.4 | |||||||
($ and shares in millions, except per share amounts) | September 30, 2019 | December 31, 2018 | |||||
(unaudited) | |||||||
Assets | |||||||
Fixed maturities, available-for-sale, at fair value (amortized cost $2,129.0 and $2,188.2, respectively) | $ | 2,189.3 | $ | 2,159.5 | |||
Equity securities | 373.3 | 315.0 | |||||
Other invested assets | 64.6 | 48.8 | |||||
Other invested assets, at cost | 6.5 | 5.6 | |||||
Notes receivable from affiliate | 70.0 | 70.0 | |||||
Total investments | 2,703.7 | 2,598.9 | |||||
Cash and cash equivalents | 38.3 | 59.8 | |||||
Accrued investment income and other assets | 34.7 | 32.4 | |||||
Deferred policy acquisition costs (affiliated net assumed $53.0 and $48.3, respectively) | 114.3 | 101.9 | |||||
Reinsurance recoverable on losses and loss expenses payable | 7.2 | 5.5 | |||||
Prepaid reinsurance premiums | 7.5 | 6.6 | |||||
Due from affiliate | 17.4 | — | |||||
Current federal income taxes | 6.3 | 5.9 | |||||
Net deferred federal income taxes | 46.2 | 77.8 | |||||
Property and equipment, at cost | 4.2 | 7.1 | |||||
Total assets | $ | 2,979.8 | $ | 2,895.9 | |||
Liabilities and Stockholders’ Equity | |||||||
Losses and loss expenses payable (affiliated net assumed $521.5 and $593.6, respectively) | $ | 1,092.7 | $ | 1,146.8 | |||
Unearned premiums (affiliated net assumed $111.7 and $112.4, respectively) | 649.2 | 584.2 | |||||
Notes payable (affiliates $15.2 and $15.2, respectively) | 122.0 | 122.0 | |||||
Pension and postretirement benefits | 70.3 | 83.0 | |||||
Due to affiliate | — | 22.4 | |||||
Other liabilities (affiliated net assumed $13.1 and $19.9, respectively) | 101.9 | 119.0 | |||||
Total liabilities | 2,036.1 | 2,077.4 | |||||
Stockholders’ equity: | |||||||
Class A Preferred stock (nonvoting), without par value. Authorized 2.5 shares; none issued | — | — | |||||
Class B Preferred stock, without par value. Authorized 2.5 shares; none issued | — | — | |||||
Common stock, without par value. Authorized 100.0 shares; 50.3 and 50.0 shares issued, respectively, at stated value of $2.50 per share | 125.8 | 125.0 | |||||
Treasury stock, 6.8 and 6.8 shares, respectively, at cost | (117.5 | ) | (117.0 | ) | |||
Additional paid-in capital | 205.2 | 194.2 | |||||
Accumulated other comprehensive loss | (24.2 | ) | (96.4 | ) | |||
Retained earnings | 754.4 | 712.7 | |||||
Total stockholders’ equity | 943.7 | 818.5 | |||||
Total liabilities and stockholders’ equity | $ | 2,979.8 | $ | 2,895.9 | |||
($ in millions, except per share amounts) | Three months ended September 30 | ||||||||||
(unaudited) | 2020 | 2019 | |||||||||
Earned premiums (affiliated net assumed $69.3 and $55.7, respectively) | $ | 353.2 | $ | 319.6 | |||||||
Net investment income (affiliates $0.7 and $0.7, respectively) | 17.9 | 19.3 | |||||||||
Net investment gain (loss) | 20.0 | (5.0) | |||||||||
Other income from affiliates | 0.5 | 0.6 | |||||||||
Total revenues | 391.6 | 334.5 | |||||||||
Losses and loss expenses (affiliated net assumed $48.7 and $24.2, respectively) | 251.6 | 208.4 | |||||||||
Acquisition and operating expenses (affiliated net assumed $24.2 and $17.6, respectively) | 123.0 | 109.7 | |||||||||
Interest expense (affiliates $0.1 and $0.2, respectively) | 1.1 | 1.2 | |||||||||
Other expenses | 1.1 | 2.5 | |||||||||
Total expenses | 376.8 | 321.8 | |||||||||
Income before federal income taxes | 14.8 | 12.7 | |||||||||
Federal income tax expense: | |||||||||||
Deferred | 3.2 | 1.2 | |||||||||
Total federal income tax expense | 3.2 | 1.2 | |||||||||
Net income | $ | 11.6 | $ | 11.5 | |||||||
Earnings per common share: | |||||||||||
Basic | $ | 0.26 | $ | 0.26 | |||||||
Diluted | $ | 0.26 | $ | 0.25 | |||||||
($ in millions, except per share amounts) | Three months ended September 30 | ||||||
(unaudited) | 2019 | 2018 | |||||
Earned premiums (affiliated net assumed $55.7 and $71.9, respectively) | $ | 319.6 | $ | 306.8 | |||
Net investment income (affiliates $0.7 and $1.3, respectively) | 19.3 | 20.8 | |||||
Net investment (loss) gain | (5.0 | ) | 17.8 | ||||
Other income from affiliates | 0.6 | 0.6 | |||||
Total revenues | 334.5 | 346.0 | |||||
Losses and loss expenses (affiliated net assumed $24.2 and $43.0, respectively) | 208.4 | 191.0 | |||||
Acquisition and operating expenses (affiliated net assumed $17.6 and affiliated net ceded $26.8, respectively) | 109.7 | 110.9 | |||||
Interest expense (affiliates $0.2 and $0.2, respectively) | 1.2 | 1.2 | |||||
Other expenses | 2.5 | 1.9 | |||||
Total expenses | 321.8 | 305.0 | |||||
Income before federal income taxes | 12.7 | 41.0 | |||||
Federal income tax expense (benefit): | |||||||
Current | — | (0.1 | ) | ||||
Deferred | 1.2 | 7.7 | |||||
Total federal income tax expense | 1.2 | 7.6 | |||||
Net income | $ | 11.5 | $ | 33.4 | |||
Earnings per common share: | |||||||
Basic | $ | 0.26 | $ | 0.78 | |||
Diluted | $ | 0.25 | $ | 0.76 | |||
Dividends paid per common share | $ | 0.10 | $ | 0.10 | |||
($ in millions, except per share amounts) | Nine months ended September 30 | ||||||||||
(unaudited) | 2020 | 2019 | |||||||||
Earned premiums (affiliated net assumed $189.2 and $168.5, respectively) | $ | 1,024.4 | $ | 930.0 | |||||||
Net investment income (affiliates $2.1 and $2.3, respectively) | 54.5 | 60.4 | |||||||||
Net investment (loss) gain | (39.3) | 50.2 | |||||||||
Other income from affiliates | 1.6 | 1.6 | |||||||||
Total revenues | 1,041.2 | 1,042.2 | |||||||||
Losses and loss expenses (affiliated net assumed $132.8 and $125.1, respectively) | 762.2 | 637.6 | |||||||||
Acquisition and operating expenses (affiliated net assumed $65.9 and $54.5, respectively) | 357.4 | 325.2 | |||||||||
Interest expense (affiliates $0.6 and $0.7, respectively) | 3.6 | 3.7 | |||||||||
Other expenses | 5.6 | 9.0 | |||||||||
Total expenses | 1,128.8 | 975.5 | |||||||||
(Loss) income before federal income taxes | (87.6) | 66.7 | |||||||||
Federal income tax (benefit) expense: | |||||||||||
Current | (0.4) | (0.4) | |||||||||
Deferred | (18.5) | 12.4 | |||||||||
Total federal income tax (benefit) expense | (18.9) | 12.0 | |||||||||
Net (loss) income | $ | (68.7) | $ | 54.7 | |||||||
(Loss) earnings per common share: | |||||||||||
Basic | $ | (1.57) | $ | 1.26 | |||||||
Diluted | $ | (1.57) | $ | 1.25 | |||||||
($ in millions, except per share amounts) | Nine months ended September 30 | ||||||
(unaudited) | 2019 | 2018 | |||||
Earned premiums (affiliated net assumed $168.5 and $251.1, respectively) | $ | 930.0 | $ | 929.2 | |||
Net investment income (affiliates $2.3 and $3.7, respectively) | 60.4 | 62.2 | |||||
Net investment gain | 50.2 | 18.2 | |||||
Other income from affiliates | 1.6 | 1.8 | |||||
Total revenues | 1,042.2 | 1,011.4 | |||||
Losses and loss expenses (affiliated net assumed $125.1 and $136.3, respectively) | 637.6 | 621.1 | |||||
Acquisition and operating expenses (affiliated net assumed $54.5 and $52.3, respectively) | 325.2 | 333.0 | |||||
Interest expense (affiliates $0.7 and $0.7, respectively) | 3.7 | 4.5 | |||||
Other expenses | 9.0 | 7.4 | |||||
Total expenses | 975.5 | 966.0 | |||||
Income before federal income taxes | 66.7 | 45.4 | |||||
Federal income tax (benefit) expense: | |||||||
Current | (0.4 | ) | (1.1 | ) | |||
Deferred | 12.4 | 9.2 | |||||
Total federal income tax expense | 12.0 | 8.1 | |||||
Net income | $ | 54.7 | $ | 37.3 | |||
Earnings per common share: | |||||||
Basic | $ | 1.26 | $ | 0.87 | |||
Diluted | $ | 1.25 | $ | 0.86 | |||
Dividends paid per common share | $ | 0.30 | $ | 0.30 | |||
($ in millions, except per share amounts) | Three months ended September 30 | ||||||||||
(unaudited) | 2020 | 2019 | |||||||||
Net income | $ | 11.6 | $ | 11.5 | |||||||
Other comprehensive income, net of tax: | |||||||||||
Net unrealized holding gains on available-for-sale investments: | |||||||||||
Unrealized holding gains | 4.6 | 22.6 | |||||||||
Reclassification adjustments for losses (gains) realized in net income | 0.2 | (1.2) | |||||||||
Income tax expense | (1.1) | (4.5) | |||||||||
Total net unrealized holding gains on available-for-sale investments | 3.7 | 16.9 | |||||||||
Net unrecognized benefit plan obligations: | |||||||||||
Reclassification adjustments for amortization to statements of income: | |||||||||||
Negative prior service cost | (1.6) | (1.6) | |||||||||
Net actuarial loss | 3.7 | 2.4 | |||||||||
Income tax expense | (0.4) | (0.2) | |||||||||
Total net unrecognized benefit plan obligations | 1.7 | 0.6 | |||||||||
Other comprehensive income | 5.4 | 17.5 | |||||||||
Comprehensive income | $ | 17.0 | $ | 29.0 | |||||||
($ in millions, except per share amounts) | Three months ended September 30 | ||||||
(unaudited) | 2019 | 2018 | |||||
Net income | $ | 11.5 | $ | 33.4 | |||
Other comprehensive income (loss), net of tax: | |||||||
Net unrealized holding gain (loss) on fixed available-for-sale investments: | |||||||
Unrealized holding gain (loss) | 22.6 | (14.7 | ) | ||||
Reclassification adjustments for gains realized in net income | (1.2 | ) | — | ||||
Income tax (expense) benefit | (4.5 | ) | 3.1 | ||||
Total net unrealized holding gain (loss) on available-for-sale investments | 16.9 | (11.6 | ) | ||||
Net unrecognized benefit plan obligations: | |||||||
Reclassification adjustments for amortization to statements of income: | |||||||
Negative prior service cost | (1.6 | ) | (1.6 | ) | |||
Net actuarial loss | 2.4 | 3.3 | |||||
Income tax expense | (0.2 | ) | (0.4 | ) | |||
Total net unrecognized benefit plan obligations | 0.6 | 1.3 | |||||
Other comprehensive income (loss) | 17.5 | (10.3 | ) | ||||
Comprehensive income | $ | 29.0 | $ | 23.1 | |||
($ in millions, except per share amounts) | Nine months ended September 30 | ||||||||||
(unaudited) | 2020 | 2019 | |||||||||
Net (loss) income | $ | (68.7) | $ | 54.7 | |||||||
Other comprehensive income, net of tax: | |||||||||||
Net unrealized holding gains on fixed available-for-sale investments: | |||||||||||
Unrealized holding gains | 74.5 | 91.8 | |||||||||
Reclassification adjustments for gains realized in net income | (3.2) | (2.8) | |||||||||
Income tax expense | (15.0) | (18.7) | |||||||||
Total net unrealized holding gains on available-for-sale investments | 56.3 | 70.3 | |||||||||
Net unrecognized benefit plan obligations: | |||||||||||
Reclassification adjustments for amortization to statements of income: | |||||||||||
Negative prior service cost | (4.8) | (4.8) | |||||||||
Net actuarial loss | 11.0 | 7.2 | |||||||||
Income tax expense | (1.3) | (0.5) | |||||||||
Total net unrecognized benefit plan obligations | 4.9 | 1.9 | |||||||||
Other comprehensive income | 61.2 | 72.2 | |||||||||
Comprehensive (loss) income | $ | (7.5) | $ | 126.9 | |||||||
($ in millions, except per share amounts) | Nine months ended September 30 | ||||||
(unaudited) | 2019 | 2018 | |||||
Net income | $ | 54.7 | $ | 37.3 | |||
Other comprehensive income (loss), net of tax: | |||||||
Net unrealized holding gain (loss) on fixed available-for-sale investments: | |||||||
Unrealized holding gain (loss) | 91.8 | (61.6 | ) | ||||
Reclassification adjustments for gains realized in net income | (2.8 | ) | (1.7 | ) | |||
Income tax (expense) benefit | (18.7 | ) | 13.3 | ||||
Total net unrealized holding gain (loss) on available-for-sale investments | 70.3 | (50.0 | ) | ||||
Net unrecognized benefit plan obligations: | |||||||
Reclassification adjustments for amortization to statements of income: | |||||||
Negative prior service cost | (4.8 | ) | (4.8 | ) | |||
Net actuarial loss | 7.2 | 9.9 | |||||
Income tax expense | (0.5 | ) | (1.1 | ) | |||
Total net unrecognized benefit plan obligations | 1.9 | 4.0 | |||||
Other comprehensive income (loss) | 72.2 | (46.0 | ) | ||||
Comprehensive income (loss) | $ | 126.9 | $ | (8.7 | ) | ||
(in millions) | Three months ended September 30 | ||||||||||
2020 | 2019 | ||||||||||
Common shares: | |||||||||||
Balance at beginning of period | 50.7 | 50.3 | |||||||||
Balance at September 30 | 50.7 | 50.3 | |||||||||
Treasury shares: | |||||||||||
Balance at beginning of period | (6.9) | (6.8) | |||||||||
Balance at September 30 | (6.9) | (6.8) | |||||||||
Common stock: | |||||||||||
Balance at beginning of period | $ | 126.7 | $ | 125.7 | |||||||
Issuance of shares | 0 | 0.1 | |||||||||
Balance at September 30 | $ | 126.7 | $ | 125.8 | |||||||
Treasury stock: | |||||||||||
Balance at beginning of period | $ | (118.4) | $ | (117.5) | |||||||
Balance at September 30 | $ | (118.4) | $ | (117.5) | |||||||
Additional paid-in capital: | |||||||||||
Balance at beginning of period | $ | 211.1 | $ | 202.5 | |||||||
Issuance of common stock | (0.2) | 0.7 | |||||||||
Stock awards granted | 1.2 | 2.0 | |||||||||
Balance at September 30 | $ | 212.1 | $ | 205.2 | |||||||
Accumulated other comprehensive income (loss): | |||||||||||
Balance at beginning of period | $ | 17.9 | $ | (41.7) | |||||||
Change in net unrealized holding gains on available-for-sale investments | 3.7 | 16.9 | |||||||||
Total net unrecognized benefit plan obligations | 1.7 | 0.6 | |||||||||
Balance at September 30 | $ | 23.3 | $ | (24.2) | |||||||
Retained earnings: | |||||||||||
Balance at beginning of period | $ | 693.2 | $ | 747.2 | |||||||
Net income | 11.6 | 11.5 | |||||||||
Dividends declared, $0.10 and $0.10 per share (affiliates $2.6 and $2.6, respectively) | $ | (4.4) | $ | (4.3) | |||||||
Balance at September 30 | 700.4 | 754.4 | |||||||||
Total stockholders’ equity at September 30 | $ | 944.1 | $ | 943.7 | |||||||
(in millions) | Three months ended September 30 | ||||||
2019 | 2018 | ||||||
Common shares: | |||||||
Balance at beginning of period | 50.3 | 49.7 | |||||
Issuance of shares | — | 0.1 | |||||
Balance at September 30 | 50.3 | 49.8 | |||||
Treasury shares: | |||||||
Balance at beginning of period | (6.8 | ) | (6.8 | ) | |||
Balance at September 30 | (6.8 | ) | (6.8 | ) | |||
Common stock: | |||||||
Balance at beginning of period | $ | 125.7 | $ | 124.1 | |||
Issuance of shares | 0.1 | 0.4 | |||||
Balance at September 30 | $ | 125.8 | $ | 124.5 | |||
Treasury stock: | |||||||
Balance at beginning of period | $ | (117.5 | ) | $ | (116.9 | ) | |
Shares acquired on stock award exercises and vested restricted shares | — | (0.1 | ) | ||||
Balance at September 30 | $ | (117.5 | ) | $ | (117.0 | ) | |
Additional paid-in capital: | |||||||
Balance at beginning of period | $ | 202.5 | $ | 184.8 | |||
Issuance of common stock | 0.7 | 2.0 | |||||
Stock awards granted | 2.0 | 1.8 | |||||
Balance at September 30 | $ | 205.2 | $ | 188.6 | |||
Accumulated other comprehensive loss: | |||||||
Balance at beginning of period | $ | (41.7 | ) | $ | (95.8 | ) | |
Change in unrealized holding gain (loss) on investments, net of tax | 16.9 | (11.6 | ) | ||||
Change in unrecognized benefit plan obligations, net of tax | 0.6 | 1.3 | |||||
Balance at September 30 | $ | (24.2 | ) | $ | (106.1 | ) | |
Retained earnings: | |||||||
Balance at beginning of period | $ | 747.2 | $ | 712.3 | |||
Net income | 11.5 | 33.4 | |||||
Dividends declared (affiliates $2.6 and $2.6, respectively) | $ | (4.3 | ) | $ | (4.1 | ) | |
Balance at September 30 | 754.4 | 741.6 | |||||
Total stockholders’ equity at September 30 | $ | 943.7 | $ | 831.6 | |||
(in millions) | Nine months ended September 30 | ||||||
2019 | 2018 | ||||||
Common shares: | |||||||
Balance at beginning of year | 50.0 | 49.2 | |||||
Issuance of shares | 0.3 | 0.6 | |||||
Balance at September 30 | 50.3 | 49.8 | |||||
Treasury shares: | |||||||
Balance at beginning of year | (6.8 | ) | (6.8 | ) | |||
Balance at September 30 | (6.8 | ) | (6.8 | ) | |||
Common stock: | |||||||
Balance at beginning of year | $ | 125.0 | $ | 123.0 | |||
Issuance of shares | 0.8 | 1.5 | |||||
Balance at September 30 | $ | 125.8 | $ | 124.5 | |||
Treasury stock: | |||||||
Balance at beginning of year | $ | (117.0 | ) | $ | (116.8 | ) | |
Shares acquired on stock award exercises and vested restricted shares | (0.5 | ) | (0.2 | ) | |||
Balance at September 30 | $ | (117.5 | ) | $ | (117.0 | ) | |
Additional paid-in capital: | |||||||
Balance at beginning of year | $ | 194.2 | $ | 171.8 | |||
Issuance of common stock | 4.0 | 10.1 | |||||
Stock awards granted | 7.0 | 6.7 | |||||
Balance at September 30 | $ | 205.2 | $ | 188.6 | |||
Accumulated other comprehensive (loss) income: | |||||||
Balance at beginning of year | $ | (96.4 | ) | $ | 3.8 | ||
Cumulative effect of change in accounting for equity securities and other invested assets and reclassification of stranded tax effects as of January 1, 2018 | — | (63.9 | ) | ||||
Change in unrealized holding gain (loss) on investments, net of tax | 70.3 | (50.0 | ) | ||||
Change in unrecognized benefit plan obligations, net of tax | 1.9 | 4.0 | |||||
Balance at September 30 | $ | (24.2 | ) | $ | (106.1 | ) | |
Retained earnings: | |||||||
Balance at beginning of year | $ | 712.7 | $ | 653.2 | |||
Cumulative effect of change in accounting for equity securities and other invested assets and reclassification of stranded tax effects as of January 1, 2018 | — | 63.9 | |||||
Net income | 54.7 | 37.3 | |||||
Dividends declared (affiliates $7.8 and $7.8, respectively) | $ | (13.0 | ) | $ | (12.8 | ) | |
Balance at September 30 | 754.4 | 741.6 | |||||
Total stockholders’ equity at September 30 | $ | 943.7 | $ | 831.6 | |||
(in millions) | Nine months ended September 30 | ||||||||||
2020 | 2019 | ||||||||||
Common shares: | |||||||||||
Balance at beginning of year | 50.4 | 50.0 | |||||||||
Issuance of shares | 0.3 | 0.3 | |||||||||
Balance at September 30 | 50.7 | 50.3 | |||||||||
Treasury shares: | |||||||||||
Balance at beginning of year | (6.9) | (6.8) | |||||||||
Balance at September 30 | (6.9) | (6.8) | |||||||||
Common stock: | |||||||||||
Balance at beginning of year | $ | 125.9 | $ | 125.0 | |||||||
Issuance of shares | 0.8 | 0.8 | |||||||||
Balance at September 30 | $ | 126.7 | $ | 125.8 | |||||||
Treasury stock: | |||||||||||
Balance at beginning of year | $ | (117.5) | $ | (117.0) | |||||||
Shares acquired on stock award exercises and vested restricted shares | (0.9) | (0.5) | |||||||||
Balance at September 30 | $ | (118.4) | $ | (117.5) | |||||||
Additional paid-in capital: | |||||||||||
Balance at beginning of year | $ | 206.7 | $ | 194.2 | |||||||
Issuance of common stock | 2.0 | 4.0 | |||||||||
Stock awards granted | 3.4 | 7.0 | |||||||||
Balance at September 30 | $ | 212.1 | $ | 205.2 | |||||||
Accumulated other comprehensive income (loss): | |||||||||||
Balance at beginning of year | $ | (37.9) | $ | (96.4) | |||||||
Change in net unrealized holding gains on available-for-sale investments | 56.3 | 70.3 | |||||||||
Change in unrecognized benefit plan obligations, net of tax | 4.9 | 1.9 | |||||||||
Balance at September 30 | $ | 23.3 | $ | (24.2) | |||||||
Retained earnings: | |||||||||||
Balance at beginning of year | $ | 782.7 | $ | 712.7 | |||||||
Cumulative effect of change in accounting to establish an allowance for expected credit losses at January 1, 2020 | (0.5) | 0 | |||||||||
Net (loss) income | (68.7) | 54.7 | |||||||||
Dividends declared, $0.30 and $0.30 per share (affiliates $7.8 and $7.8, respectively) | $ | (13.1) | $ | (13.0) | |||||||
Balance at September 30 | 700.4 | 754.4 | |||||||||
Total stockholders’ equity at September 30 | $ | 944.1 | $ | 943.7 | |||||||
($ in millions) | Nine months ended September 30 | ||||||||||
(unaudited) | 2020 | 2019 | |||||||||
Cash flows from operating activities: | |||||||||||
Net (loss) income | $ | (68.7) | $ | 54.7 | |||||||
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities | |||||||||||
Depreciation and amortization, net | 7.6 | 6.2 | |||||||||
Share-based compensation | 0 | 7.0 | |||||||||
Net investment loss (gain) | 39.3 | (50.2) | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Deferred policy acquisition costs | (12.6) | (12.4) | |||||||||
Accrued investment income and other assets | 0.6 | (2.3) | |||||||||
Premiums receivables | (0.5) | (3.2) | |||||||||
Postretirement and pension benefits | (17.0) | (12.2) | |||||||||
Other liabilities and due to/from affiliates, net | 8.5 | (51.8) | |||||||||
Reinsurance recoverable on losses and loss expenses payable and prepaid reinsurance premiums | (22.5) | (2.6) | |||||||||
Losses and loss expenses payable | 24.2 | (54.1) | |||||||||
Unearned premiums | 81.8 | 65.0 | |||||||||
Deferred tax on share-based awards | (0.1) | (0.7) | |||||||||
Federal income taxes | (18.8) | 12.7 | |||||||||
Net cash provided by (used in) operating activities | 21.8 | (43.9) | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of fixed maturities available-for-sale | (462.6) | (459.9) | |||||||||
Purchases of equity securities | (65.6) | (48.9) | |||||||||
Purchases of other invested assets | (7.3) | (12.9) | |||||||||
Maturities, calls and pay downs of fixed maturities available-for-sale | 274.9 | 267.1 | |||||||||
Sales of fixed maturities available-for-sale | 216.1 | 248.7 | |||||||||
Sales of equity securities | 86.2 | 34.4 | |||||||||
Sales of other invested assets | 0.9 | 1.0 | |||||||||
Disposals of property and equipment | 0.2 | 1.6 | |||||||||
Net cash provided by investing activities | 42.8 | 31.1 | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of common stock | 2.8 | 4.8 | |||||||||
Payments to acquire treasury stock | (0.9) | (0.5) | |||||||||
Payment of dividends | (13.1) | (13.0) | |||||||||
Proceeds from short-term debt | 60.0 | 0 | |||||||||
Repayment of short-term debt | (60.0) | 0 | |||||||||
Proceeds from long-term debt | 21.5 | 0 | |||||||||
Repayment of long-term debt | (21.5) | 0 | |||||||||
Net cash used in financing activities | (11.2) | (8.7) | |||||||||
Net increase (decrease) in cash and cash equivalents | 53.4 | (21.5) | |||||||||
Cash and cash equivalents at beginning of period | 78.0 | 59.8 | |||||||||
Cash and cash equivalents at end of period | $ | 131.4 | $ | 38.3 | |||||||
Supplemental disclosures: | |||||||||||
Interest paid (affiliates $0.6 and $0.7, respectively) | $ | 3.5 | $ | 3.5 | |||||||
($ in millions) | Nine months ended September 30 | ||||||
(unaudited) | 2019 | 2018 | |||||
Cash flows from operating activities: | |||||||
Net income | $ | 54.7 | $ | 37.3 | |||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||
Depreciation and amortization, net | 6.2 | 6.7 | |||||
Share-based compensation | 7.0 | 5.7 | |||||
Net investment gain | (50.2 | ) | (18.2 | ) | |||
Changes in operating assets and liabilities: | |||||||
Deferred policy acquisition costs | (12.4 | ) | 5.8 | ||||
Accrued investment income and other assets | (2.3 | ) | (3.0 | ) | |||
Postretirement and pension benefits | (12.2 | ) | (16.3 | ) | |||
Other liabilities and due to/from affiliates, net | (55.0 | ) | 19.0 | ||||
Reinsurance recoverable on losses and loss expenses payable and prepaid reinsurance premiums | (2.6 | ) | (2.3 | ) | |||
Losses and loss expenses payable | (54.1 | ) | (56.9 | ) | |||
Unearned premiums | 65.0 | (16.2 | ) | ||||
Deferred tax (benefit) expense on share-based awards | (0.7 | ) | — | ||||
Federal income taxes | 12.7 | 8.1 | |||||
Net cash used in operating activities | (43.9 | ) | (30.3 | ) | |||
Cash flows from investing activities: | |||||||
Purchases of fixed maturities available-for-sale | (459.9 | ) | (267.0 | ) | |||
Purchases of equity securities | (48.9 | ) | (82.2 | ) | |||
Purchases of other invested assets | (12.9 | ) | (1.1 | ) | |||
Maturities, calls and pay downs of fixed maturities available-for-sale | 267.1 | 180.4 | |||||
Sales of fixed maturities available-for-sale | 248.7 | 69.7 | |||||
Sales of equity securities | 34.4 | 89.3 | |||||
Sales of other invested assets | 1.0 | 0.9 | |||||
Net disposals of property and equipment | 1.6 | — | |||||
Net cash provided by (used in) investing activities | 31.1 | (10.0 | ) | ||||
Cash flows from financing activities: | |||||||
Proceeds from issuance of common stock | 4.8 | 11.7 | |||||
Payments to acquire treasury stock | (0.5 | ) | (0.2 | ) | |||
Payment of dividends | (13.0 | ) | (12.8 | ) | |||
Payment of prepayment fee | — | (0.4 | ) | ||||
Net cash used in financing activities | (8.7 | ) | (1.7 | ) | |||
Net decrease in cash and cash equivalents | (21.5 | ) | (42.0 | ) | |||
Cash and cash equivalents at beginning of period | 59.8 | 91.5 | |||||
Cash and cash equivalents at end of period | $ | 38.3 | $ | 49.5 | |||
Supplemental disclosures: | |||||||
Interest expense (affiliates $0.7 and $0.7, respectively) | $ | 3.5 | $ | 4.5 | |||
Revised Consolidated Balance Sheets | |||||||||||
($ in millions) | Year Ended December 31, 2019 | ||||||||||
As Reported | Adjustment | As Revised | |||||||||
Assets | |||||||||||
Premiums receivable | $ | 0 | $ | 13.6 | $ | 13.6 | |||||
Due from affiliate | 21.5 | (13.6) | 7.9 | ||||||||
Total Assets | $ | 2,985.4 | $ | 0 | $ | 2,985.4 | |||||
Revised Consolidated Statement of Cash Flows | |||||||||||
($ in millions) | Nine months ended September 30, 2019 | ||||||||||
As Reported | Adjustment | As Revised | |||||||||
Cash flows from operating activities: | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Premiums receivable | $ | 0 | $ | (3.2) | $ | (3.2) | |||||
Other liabilities and due to/from affiliates, net | (55.0) | 3.2 | (51.8) | ||||||||
Net cash used in operating activities | $ | (43.9) | $ | 0 | $ | (43.9) | |||||
($ millions) | Cost or amortized cost | Gross unrealized holding gains | Gross unrealized holding losses | Fair value | |||||||||||
September 30, 2019 | |||||||||||||||
Available-for-sale fixed maturities: | |||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 516.4 | $ | 14.8 | $ | (1.2 | ) | $ | 530.0 | ||||||
Obligations of states and political subdivisions | 415.3 | 21.8 | — | 437.1 | |||||||||||
Corporate securities | 492.3 | 10.9 | (1.1 | ) | 502.1 | ||||||||||
U.S. government agencies mortgage-backed securities | 705.0 | 18.2 | (3.1 | ) | 720.1 | ||||||||||
Total available-for-sale fixed maturities | $ | 2,129.0 | $ | 65.7 | $ | (5.4 | ) | $ | 2,189.3 | ||||||
($ millions) | Cost or amortized cost | Gross unrealized holding gains | Gross unrealized holding losses | Fair value | |||||||||||
December 31, 2018 | |||||||||||||||
Available-for-sale fixed maturities: | |||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 438.4 | $ | 3.2 | $ | (9.2 | ) | $ | 432.4 | ||||||
Obligations of states and political subdivisions | 408.2 | 7.3 | (0.9 | ) | 414.6 | ||||||||||
Corporate securities | 551.7 | 0.6 | (11.7 | ) | 540.6 | ||||||||||
U.S. government agencies mortgage-backed securities | 789.9 | 3.3 | (21.3 | ) | 771.9 | ||||||||||
Total available-for-sale fixed maturities | $ | 2,188.2 | $ | 14.4 | $ | (43.1 | ) | $ | 2,159.5 | ||||||
($ millions) | Amortized cost | Gross unrealized holding gains | Gross unrealized holding losses | Fair value | |||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||
Available-for-sale fixed maturities: | |||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 510.9 | $ | 48.1 | $ | 0 | $ | 559.0 | |||||||||||||||
Obligations of states and political subdivisions | 527.5 | 26.7 | (1.5) | 552.7 | |||||||||||||||||||
Corporate securities | 451.7 | 21.9 | 0 | 473.6 | |||||||||||||||||||
U.S. government agencies mortgage-backed securities | 557.0 | 25.3 | (1.3) | 581.0 | |||||||||||||||||||
Total available-for-sale fixed maturities | $ | 2,047.1 | $ | 122.0 | $ | (2.8) | $ | 2,166.3 | |||||||||||||||
($ millions) | Amortized cost | Gross unrealized holding gains | Gross unrealized holding losses | Fair value | |||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Available-for-sale fixed maturities: | |||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 569.2 | $ | 12.3 | $ | (3.3) | $ | 578.2 | |||||||||||||||
Obligations of states and political subdivisions | 404.3 | 21.1 | 0 | 425.4 | |||||||||||||||||||
Corporate securities | 460.5 | 11.7 | (0.4) | 471.8 | |||||||||||||||||||
U.S. government agencies mortgage-backed securities | 646.0 | 11.1 | (4.6) | 652.5 | |||||||||||||||||||
Total available-for-sale fixed maturities | $ | 2,080.0 | $ | 56.2 | $ | (8.3) | $ | 2,127.9 | |||||||||||||||
($ millions, except # of positions) | Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value | Unrealized losses | Number of positions | Fair value | Unrealized losses | Number of positions | Fair value | Unrealized losses | Number of positions | |||||||||||||||||||||||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 0.7 | $ | 0 | 1 | $ | 0 | $ | 0 | 0 | $ | 0.7 | $ | 0 | 1 | ||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 94.3 | (1.5) | 18 | 0 | 0 | 0 | 94.3 | (1.5) | 18 | ||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | 15.1 | 0 | 4 | 0 | 0 | 0 | 15.1 | 0 | 4 | ||||||||||||||||||||||||||||||||||||||||||||
U.S. government agencies mortgage-backed securities | 76.1 | (1.1) | 22 | 9.4 | (0.2) | 4 | 85.5 | (1.3) | 26 | ||||||||||||||||||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 186.2 | $ | (2.6) | 45 | $ | 9.4 | $ | (0.2) | 4 | $ | 195.6 | $ | (2.8) | 49 | ||||||||||||||||||||||||||||||||||||||
($ millions, except # of positions) | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||
Fair value | Unrealized losses | Number of positions | Fair value | Unrealized losses | Number of positions | Fair value | Unrealized losses | Number of positions | ||||||||||||||||||||||||
September 30, 2019 | ||||||||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 41.1 | $ | (0.1 | ) | 9 | $ | 184.5 | $ | (1.1 | ) | 16 | $ | 225.6 | $ | (1.2 | ) | 25 | ||||||||||||||
Obligations of states and political subdivisions | — | — | — | 4.1 | — | 1 | 4.1 | — | 1 | |||||||||||||||||||||||
Corporate securities | 20.3 | (0.3 | ) | 2 | 56.9 | $ | (0.8 | ) | 9 | 77.2 | $ | (1.1 | ) | 11 | ||||||||||||||||||
U.S. government agencies mortgage-backed securities | 50.9 | (0.3 | ) | 7 | 161.1 | (2.8 | ) | 35 | 212.0 | (3.1 | ) | 42 | ||||||||||||||||||||
Total temporarily impaired securities | $ | 112.3 | $ | (0.7 | ) | 18 | $ | 406.6 | $ | (4.7 | ) | 61 | $ | 518.9 | $ | (5.4 | ) | 79 | ||||||||||||||
($ millions, except # of positions) | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||
Fair value | Unrealized losses | Number of positions | Fair value | Unrealized losses | Number of positions | Fair value | Unrealized losses | Number of positions | ||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 83.1 | $ | (1.8 | ) | 7 | $ | 259.6 | $ | (7.4 | ) | 35 | $ | 342.7 | $ | (9.2 | ) | 42 | ||||||||||||||
Obligations of states and political subdivisions | 63.6 | (0.5 | ) | 7 | 39.6 | (0.4 | ) | 8 | 103.2 | (0.9 | ) | 15 | ||||||||||||||||||||
Corporate securities | 244.0 | (3.0 | ) | 31 | 189.5 | (8.7 | ) | 30 | 433.5 | (11.7 | ) | 61 | ||||||||||||||||||||
U.S. government agencies mortgage-backed securities | 169.5 | (2.8 | ) | 18 | 385.5 | (18.5 | ) | 70 | 555.0 | (21.3 | ) | 88 | ||||||||||||||||||||
Total temporarily impaired securities | $ | 560.2 | $ | (8.1 | ) | 63 | $ | 874.2 | $ | (35.0 | ) | 143 | $ | 1,434.4 | $ | (43.1 | ) | 206 | ||||||||||||||
($ millions, except # of positions) | Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value | Unrealized losses | Number of positions | Fair value | Unrealized losses | Number of positions | Fair value | Unrealized losses | Number of positions | |||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 136.0 | $ | (2.5) | 17 | $ | 157.6 | $ | (0.8) | 11 | $ | 293.6 | $ | (3.3) | 28 | ||||||||||||||||||||||||||||||||||||||
Corporate securities | 0 | 0 | 0 | 40.8 | (0.4) | 7 | 40.8 | (0.4) | 7 | ||||||||||||||||||||||||||||||||||||||||||||
U.S. government agencies mortgage-backed securities | 126.6 | (1.5) | 15 | 137.9 | (3.1) | 32 | 264.5 | (4.6) | 47 | ||||||||||||||||||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 262.6 | $ | (4.0) | 32 | $ | 336.3 | $ | (4.3) | 50 | $ | 598.9 | $ | (8.3) | 82 | ||||||||||||||||||||||||||||||||||||||
($ millions) | Amortized cost | Fair value | |||||
Due in 1 year or less | $ | 55.7 | $ | 56.6 | |||
Due after 1 year through 5 years | 562.7 | 569.4 | |||||
Due after 5 years through 10 years | 239.9 | 249.7 | |||||
Due after 10 years | 565.7 | 593.5 | |||||
U.S. government agencies mortgage-backed securities | 705.0 | 720.1 | |||||
Total | $ | 2,129.0 | $ | 2,189.3 | |||
($ millions) | Amortized cost | Fair value | |||||||||
Due in 1 year or less | $ | 119.8 | $ | 120.9 | |||||||
Due after 1 year through 5 years | 519.9 | 548.0 | |||||||||
Due after 5 years through 10 years | 168.0 | 178.9 | |||||||||
Due after 10 years | 682.4 | 737.5 | |||||||||
U.S. government agencies mortgage-backed securities | 557.0 | 581.0 | |||||||||
Total | $ | 2,047.1 | $ | 2,166.3 | |||||||
($ millions) | Three months ended September 30 | Nine months ended September 30 | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Fixed maturities | $ | 15.3 | $ | 16.4 | $ | 47.7 | $ | 49.4 | |||||||
Equity securities | 3.0 | 3.0 | 8.9 | 8.6 | |||||||||||
Cash and cash equivalents, and other | 1.1 | 1.7 | 4.2 | 5.2 | |||||||||||
Investment income | 19.4 | 21.1 | 60.8 | 63.2 | |||||||||||
Investment expenses | 0.1 | 0.3 | 0.4 | 1.0 | |||||||||||
Net investment income | $ | 19.3 | $ | 20.8 | $ | 60.4 | $ | 62.2 | |||||||
($ millions) | Three months ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Fixed maturities | $ | 15.0 | $ | 15.3 | $ | 44.6 | $ | 47.7 | |||||||||||||||
Equity securities | 2.1 | 3.0 | 7.8 | 8.9 | |||||||||||||||||||
Cash and cash equivalents, and other | 0.9 | 1.1 | 2.7 | 4.2 | |||||||||||||||||||
Investment income | 18.0 | 19.4 | 55.1 | 60.8 | |||||||||||||||||||
Investment expenses | 0.1 | 0.1 | 0.6 | 0.4 | |||||||||||||||||||
Net investment income | $ | 17.9 | $ | 19.3 | $ | 54.5 | $ | 60.4 | |||||||||||||||
($ millions) | Three months ended September 30 | Nine months ended September 30 | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Investment gains (losses), net: | |||||||||||||||
Fixed maturities: | |||||||||||||||
Realized gains on sales of securities | 1.2 | — | 2.8 | 1.7 | |||||||||||
Net gains on fixed maturities | 1.2 | — | 2.8 | 1.7 | |||||||||||
Equity securities: | |||||||||||||||
Realized (losses) gains on sales of securities, net | (1.8 | ) | 1.0 | (2.5 | ) | 5.4 | |||||||||
Unrealized (losses) gains on securities still held, net | (4.1 | ) | 16.4 | 46.4 | 12.8 | ||||||||||
Net (losses) gains on equity securities | (5.9 | ) | 17.4 | 43.9 | 18.2 | ||||||||||
Other invested assets: | |||||||||||||||
Unrealized (losses) gains on securities still held, net | (0.3 | ) | 0.4 | 4.8 | (1.7 | ) | |||||||||
Net (losses) gains on other invested assets | (0.3 | ) | 0.4 | 4.8 | (1.7 | ) | |||||||||
Other net realized loss | — | — | (1.3 | ) | — | ||||||||||
Net (losses) gains on investments | $ | (5.0 | ) | $ | 17.8 | $ | 50.2 | $ | 18.2 | ||||||
Change in unrealized holding gains (losses), net of tax: | |||||||||||||||
Fixed maturities | $ | 21.4 | $ | (14.7 | ) | $ | 89.0 | $ | (63.3 | ) | |||||
Deferred federal income tax (liability) benefit | (4.5 | ) | 3.1 | (18.7 | ) | 13.3 | |||||||||
Change in net unrealized holding gains (losses), net of tax | $ | 16.9 | $ | (11.6 | ) | $ | 70.3 | $ | (50.0 | ) | |||||
($ millions) | Three months ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Investment gain (loss), net: | |||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||
Realized gains on sales of securities | $ | 1.3 | $ | 1.2 | $ | 6.8 | $ | 2.8 | |||||||||||||||
Realized losses on sales of securities | (1.5) | 0 | (3.6) | 0 | |||||||||||||||||||
Net (loss) gain on fixed securities | (0.2) | 1.2 | 3.2 | 2.8 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||
Realized losses on sales of securities, net | (42.3) | (1.8) | (50.9) | (2.5) | |||||||||||||||||||
Unrealized gain (loss) on securities still held, net | 60.5 | (4.1) | 15.8 | 46.4 | |||||||||||||||||||
Net gain (loss) on equity securities | 18.2 | (5.9) | (35.1) | 43.9 | |||||||||||||||||||
Other invested assets: | |||||||||||||||||||||||
Unrealized gain (loss) on securities still held, net | 2.0 | (0.3) | (7.6) | 4.8 | |||||||||||||||||||
Net gain (loss) on other invested assets | 2.0 | (0.3) | (7.6) | 4.8 | |||||||||||||||||||
Other net realized gain (loss) | 0 | 0 | 0.2 | (1.3) | |||||||||||||||||||
Net gain (loss) on investments | $ | 20.0 | $ | (5.0) | $ | (39.3) | $ | 50.2 | |||||||||||||||
Change in net unrealized holding gains, net of tax | |||||||||||||||||||||||
Fixed maturities | $ | 4.8 | $ | 21.4 | $ | 71.3 | $ | 89.0 | |||||||||||||||
Deferred federal income tax liability | (1.1) | (4.5) | (15.0) | (18.7) | |||||||||||||||||||
Change in net unrealized holding gains, net of tax | $ | 3.7 | $ | 16.9 | $ | 56.3 | $ | 70.3 | |||||||||||||||
($ millions) | Total | Level 1 | Level 2 | ||||||||
September 30, 2019 | |||||||||||
Available-for-sale fixed maturities: | |||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 530.0 | $ | — | $ | 530.0 | |||||
Obligations of states and political subdivisions | 437.1 | — | 437.1 | ||||||||
Corporate securities | 502.1 | — | 502.1 | ||||||||
U.S. government agencies mortgage-backed securities | 720.1 | — | 720.1 | ||||||||
Total available-for-sale fixed maturities | 2,189.3 | — | 2,189.3 | ||||||||
Equity securities: | |||||||||||
Large-cap securities | 99.1 | 99.1 | — | ||||||||
Mutual and exchange traded funds | 274.2 | 274.2 | — | ||||||||
Total equity securities | 373.3 | 373.3 | — | ||||||||
Other invested assets | 12.9 | 12.9 | — | ||||||||
Total investments | $ | 2,575.5 | $ | 386.2 | $ | 2,189.3 | |||||
($ millions) | Total | Level 1 | Level 2 | ||||||||
December 31, 2018 | |||||||||||
Available-for-sale fixed maturities: | |||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 432.4 | $ | — | $ | 432.4 | |||||
Obligations of states and political subdivisions | 414.6 | — | 414.6 | ||||||||
Corporate securities | 540.6 | — | 540.6 | ||||||||
U.S. government agencies mortgage-backed securities | 771.9 | — | 771.9 | ||||||||
Total available-for-sale fixed maturities | 2,159.5 | — | 2,159.5 | ||||||||
Equity securities: | |||||||||||
Large-cap securities | 77.2 | 77.2 | — | ||||||||
Mutual and exchange traded funds | 237.8 | 237.8 | — | ||||||||
Total equity securities | 315.0 | 315.0 | — | ||||||||
Other invested assets | 10.3 | 10.3 | — | ||||||||
Total investments | $ | 2,484.8 | $ | 325.3 | $ | 2,159.5 | |||||
($ millions) | Total | Level 1 | Level 2 | ||||||||||||||
September 30, 2020 | |||||||||||||||||
Available-for-sale fixed maturities: | |||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 559.0 | $ | 0 | $ | 559.0 | |||||||||||
Obligations of states and political subdivisions | 552.7 | 0 | 552.7 | ||||||||||||||
Corporate securities | 473.6 | 0 | 473.6 | ||||||||||||||
U.S. government agencies mortgage-backed securities | 581.0 | 0 | 581.0 | ||||||||||||||
Total available-for-sale fixed maturities | 2,166.3 | 0 | 2,166.3 | ||||||||||||||
Equity securities: | |||||||||||||||||
Large-cap securities | 120.0 | 120.0 | 0 | ||||||||||||||
Mutual and exchange traded funds | 219.5 | 219.5 | 0 | ||||||||||||||
Total equity securities | 339.5 | 339.5 | 0 | ||||||||||||||
Other invested assets | 14.0 | 14.0 | 0 | ||||||||||||||
Total investments | $ | 2,519.8 | $ | 353.5 | $ | 2,166.3 | |||||||||||
($ millions) | Total | Level 1 | Level 2 | ||||||||||||||
December 31, 2019 | |||||||||||||||||
Available-for-sale fixed maturities: | |||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 578.2 | $ | 0 | $ | 578.2 | |||||||||||
Obligations of states and political subdivisions | 425.4 | 0 | 425.4 | ||||||||||||||
Corporate securities | 471.8 | 0 | 471.8 | ||||||||||||||
U.S. government agencies mortgage-backed securities | 652.5 | 0 | 652.5 | ||||||||||||||
Total available-for-sale fixed maturities | 2,127.9 | 0 | 2,127.9 | ||||||||||||||
Equity securities: | |||||||||||||||||
Large-cap securities | 104.4 | 104.4 | 0 | ||||||||||||||
Mutual and exchange traded funds | 290.8 | 290.8 | 0 | ||||||||||||||
Total equity securities | 395.2 | 395.2 | 0 | ||||||||||||||
Other invested assets | 13.3 | 13.3 | 0 | ||||||||||||||
Total investments | $ | 2,536.4 | $ | 408.5 | $ | 2,127.9 | |||||||||||
($ millions, except interest rates) | September 30, 2019 | December 31, 2018 | |||||||||||||||||||
Carrying value | Fair value | Interest rate | Carrying value | Fair value | Interest rate | ||||||||||||||||
Notes receivable from affiliate, May 2009 | $ | — | $ | — | — | % | $ | 70.0 | $ | 71.1 | 7.00 | % | |||||||||
Notes receivable from affiliate, May 2019 | $ | 70.0 | $ | 76.8 | 4.05 | % | $ | — | $ | — | — | % | |||||||||
($ millions, except interest rates) | September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||
Carrying value | Fair value | Interest rate | Carrying value | Fair value | Interest rate | ||||||||||||||||||||||||||||||
Notes receivable from affiliate, issued May 2019 | $ | 70.0 | $ | 82.4 | 4.05 | % | $ | 70.0 | $ | 74.6 | 4.05 | % | |||||||||||||||||||||||
($ millions, except interest rates) | September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||
Carrying value | Fair Value | Interest rate | Carrying value | Fair value | Interest rate | ||||||||||||||||||||||||||||||
FHLB Loan due 2021: issued $21.5, September 2016 with fixed interest | $ | 0 | $ | 0 | 0 | % | $ | 21.5 | $ | 21.5 | 1.73 | % | |||||||||||||||||||||||
FHLB Loan due 2030: issued $21.5, September 2020 with fixed interest | 21.5 | 21.8 | 1.37 | % | 0 | 0 | 0 | % | |||||||||||||||||||||||||||
FHLB Loan due 2033: issued $85.0, May 2018 with fixed interest | 85.3 | 108.6 | 3.96 | % | 85.3 | 97.8 | 3.96 | % | |||||||||||||||||||||||||||
Affiliate Subordinated Debentures due 2033: issued $15.5, May 2003 with variable interest | 15.2 | 15.2 | 4.44 | % | 15.2 | 15.2 | 6.11 | % | |||||||||||||||||||||||||||
Total notes payable | $ | 122.0 | $ | 145.6 | $ | 122.0 | $ | 134.5 | |||||||||||||||||||||||||||
($ millions, except interest rates) | September 30, 2019 | December 31, 2018 | |||||||||||||||||||
Carrying value | Fair Value | Interest rate | Carrying value | Fair value | Interest rate | ||||||||||||||||
FHLB Loan due 2021: issued $21.5, September 2016 with fixed interest | $ | 21.5 | $ | 21.5 | 1.73 | % | $ | 21.5 | $ | 20.9 | 1.73 | % | |||||||||
FHLB Loan due 2033: issued $85.0, May 2018 with fixed interest | 85.3 | 100.1 | 3.96 | % | 85.3 | 89.0 | 3.96 | % | |||||||||||||
Affiliate Subordinated Debentures due 2033: issued $15.5, May 2003 with variable interest | 15.2 | 15.2 | 6.33 | % | 15.2 | 15.2 | 6.94 | % | |||||||||||||
Total notes payable | $ | 122.0 | $ | 136.8 | $ | 122.0 | $ | 125.1 | |||||||||||||
($ millions) | 2020 | 2019 | ||||||||||||
Beginning balance at July 1 | $ | 120.0 | $ | 109.1 | ||||||||||
Acquisition costs deferred | 98.4 | 94.6 | ||||||||||||
Acquisition costs amortized to expense | (94.7) | (89.4) | ||||||||||||
Ending balance at September 30 | $ | 123.7 | $ | 114.3 | ||||||||||
Beginning balance at January 1 | $ | 111.1 | $ | 101.9 | ||||||||||
Acquisition costs deferred | 289.8 | 270.6 | ||||||||||||
Acquisition costs amortized to expense | (277.2) | (258.2) | ||||||||||||
Ending balance at September 30 | $ | 123.7 | $ | 114.3 | ||||||||||
($ millions) | 2019 | 2018 | |||||
Losses and loss expenses payable, at beginning of period | $ | 1,146.8 | $ | 1,255.6 | |||
Less: reinsurance recoverable on losses and loss expenses payable | 5.5 | 3.1 | |||||
Net balance at beginning of period | 1,141.3 | 1,252.5 | |||||
Incurred related to: | |||||||
Current year | 692.7 | 678.7 | |||||
Prior years | (55.1 | ) | (57.6 | ) | |||
Total incurred | 637.6 | 621.1 | |||||
Paid related to: | |||||||
Current year | 366.4 | 314.1 | |||||
Prior years | 327.0 | 365.8 | |||||
Total paid | 693.4 | 679.9 | |||||
Net balance at end of period | 1,085.5 | 1,193.7 | |||||
Plus: reinsurance recoverable on losses and loss expenses payable | 7.2 | 5.0 | |||||
Losses and loss expenses payable, at end of period | $ | 1,092.7 | $ | 1,198.7 | |||
($ millions) | 2020 | 2019 | |||||||||
Losses and loss expenses payable, at beginning of period | $ | 1,066.5 | $ | 1,146.8 | |||||||
Less: reinsurance recoverable on losses and loss expenses payable | 13.6 | 5.5 | |||||||||
Net balance at beginning of period | 1,052.9 | 1,141.3 | |||||||||
Incurred related to: | |||||||||||
Current year | 779.8 | 692.7 | |||||||||
Prior years | (17.6) | (55.1) | |||||||||
Total incurred | 762.2 | 637.6 | |||||||||
Paid related to: | |||||||||||
Current year | 420.8 | 366.4 | |||||||||
Prior years | 338.2 | 327.0 | |||||||||
Total paid | 759.0 | 693.4 | |||||||||
Net balance at end of period | 1,056.1 | 1,085.5 | |||||||||
Plus: reinsurance recoverable on losses and loss expenses payable | 35.2 | 7.2 | |||||||||
Losses and loss expenses payable, at end of period | $ | 1,091.3 | $ | 1,092.7 | |||||||
($ millions) | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Premiums earned: | |||||||||||||||||||||||
Assumed from external insurers and reinsurers | $ | 21.7 | $ | 21.0 | $ | 63.0 | $ | 59.3 | |||||||||||||||
Assumed under Pooling Arrangement | 353.2 | 319.6 | 1,024.4 | 930.0 | |||||||||||||||||||
Ceded to external insurers and reinsurers | (7.7) | (6.6) | (25.4) | (18.8) | |||||||||||||||||||
Ceded under Pooling Arrangement | (283.9) | (263.9) | (835.2) | (761.5) | |||||||||||||||||||
Net assumed premiums earned | $ | 83.3 | $ | 70.1 | $ | 226.8 | $ | 209.0 | |||||||||||||||
Losses and loss expenses incurred: | |||||||||||||||||||||||
Assumed from external insurers and reinsurers | $ | 14.1 | $ | 14.6 | $ | 41.3 | $ | 45.6 | |||||||||||||||
Assumed under Pooling Arrangement | 251.6 | 209.3 | 762.2 | 639.4 | |||||||||||||||||||
Ceded to external insurers and reinsurers | (9.9) | (0.6) | (55.9) | (6.2) | |||||||||||||||||||
Ceded under Pooling Arrangement | (202.9) | (185.1) | (629.4) | (514.3) | |||||||||||||||||||
Net assumed losses and loss expenses incurred | $ | 52.9 | $ | 38.2 | $ | 118.2 | $ | 164.5 | |||||||||||||||
($ millions) | Three months ended September 30 | Nine months ended September 30 | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Premiums earned: | |||||||||||||||
Assumed from external insurers and reinsurers | $ | 21.0 | $ | 17.3 | $ | 59.3 | $ | 41.9 | |||||||
Assumed under Pooling Arrangement | 319.6 | 306.8 | 930.0 | 929.2 | |||||||||||
Ceded to external insurers and reinsurers | (6.6 | ) | (5.9 | ) | (18.8 | ) | (16.7 | ) | |||||||
Ceded under Pooling Arrangement | (263.9 | ) | (234.9 | ) | (761.5 | ) | (678.1 | ) | |||||||
Net assumed premiums earned | $ | 70.1 | $ | 83.3 | $ | 209.0 | $ | 276.3 | |||||||
Losses and loss expenses incurred: | |||||||||||||||
Assumed from external insurers and reinsurers | $ | 14.6 | $ | 10.9 | $ | 45.6 | $ | 34.2 | |||||||
Assumed under Pooling Arrangement | 209.3 | 191.4 | 639.4 | 622.3 | |||||||||||
Ceded to external insurers and reinsurers | (0.6 | ) | (1.9 | ) | (6.2 | ) | (3.4 | ) | |||||||
Ceded under Pooling Arrangement | (185.1 | ) | (148.4 | ) | (514.3 | ) | (486.0 | ) | |||||||
Net assumed losses and loss expenses incurred | $ | 38.2 | $ | 52.0 | $ | 164.5 | $ | 167.1 | |||||||
($ millions) | Amortized Cost | ||||||||||
Financial strength rating: | |||||||||||
A++ | $ | 1.2 | |||||||||
A+ | 15.3 | ||||||||||
A | 18.7 | ||||||||||
Reinsurance recoverable on losses and loss expenses payable, net of allowance for credit losses | $ | 35.2 | |||||||||
($ millions) | Allowance for credit losses | |||||||
Beginning balance at July 1, 2020 | $ | 7.0 | ||||||
Current period provision | 1.1 | |||||||
Writeoffs | (1.1) | |||||||
Ending balance at September 30, 2020 | $ | 7.0 | ||||||
Beginning balance at January 1, 2020 | $ | 4.3 | ||||||
Current period provision | 6.7 | |||||||
Writeoffs | (4.0) | |||||||
Ending balance at September 30, 2020 | $ | 7.0 | ||||||
($ millions) | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||
Amount at statutory rate | $ | 2.7 | 21.0 | % | $ | 8.6 | 21.0 | % | $ | 14.0 | 21.0 | % | $ | 9.5 | 21.0 | % | |||||||||||
Tax-exempt interest and dividends received deduction | (0.7 | ) | (5.3 | ) | (0.5 | ) | (1.3 | ) | (2.1 | ) | (3.1 | ) | (1.7 | ) | (3.8 | ) | |||||||||||
Other, net | (0.8 | ) | (6.3 | ) | (0.5 | ) | (1.1 | ) | 0.1 | — | 0.3 | 0.6 | |||||||||||||||
Federal income tax expense | 1.2 | 9.4 | % | 7.6 | 18.6 | % | 12.0 | 17.9 | % | $ | 8.1 | 17.8 | % | ||||||||||||||
($ millions) | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Amount at statutory rate | $ | 3.1 | 21.0 | % | $ | 2.7 | 21.0 | % | $ | (18.4) | 21.0 | % | $ | 14.0 | 21.0 | % | |||||||||||||||||||||||||||||||
Tax-exempt interest and dividends received deduction | (0.6) | (4.1) | (0.7) | (5.3) | (1.7) | 1.9 | (2.1) | (3.1) | |||||||||||||||||||||||||||||||||||||||
Other, net | 0.7 | 4.5 | (0.8) | (6.3) | 1.2 | (1.4) | 0.1 | 0 | |||||||||||||||||||||||||||||||||||||||
Federal income tax expense (benefit) | 3.2 | 21.4 | % | 1.2 | 9.4 | % | (18.9) | 21.5 | % | $ | 12.0 | 17.9 | % | ||||||||||||||||||||||||||||||||||
($ millions) | Pension | Postretirement | Pension | Postretirement | |||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||
Service cost | $ | 0.8 | $ | 1.2 | $ | — | $ | — | $ | 2.8 | $ | 3.8 | $ | — | $ | — | |||||||||||||||
Interest cost | 2.9 | 2.7 | 0.2 | 0.2 | 8.6 | 8.0 | 0.5 | 0.5 | |||||||||||||||||||||||
Expected return on plan assets | (4.2 | ) | (4.5 | ) | — | — | (12.5 | ) | (13.5 | ) | — | — | |||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||
Negative prior service cost | — | — | (1.4 | ) | (1.4 | ) | — | — | (4.1 | ) | (4.1 | ) | |||||||||||||||||||
Net actuarial loss | 1.5 | 2.1 | 0.1 | 0.1 | 4.5 | 6.2 | 0.2 | 0.2 | |||||||||||||||||||||||
Net periodic cost (benefit) | $ | 1.0 | $ | 1.5 | $ | (1.1 | ) | $ | (1.1 | ) | $ | 3.4 | $ | 4.5 | $ | (3.4 | ) | $ | (3.4 | ) | |||||||||||
($ millions) | Pension | Postretirement | Pension | Postretirement | |||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 1.2 | $ | 0.8 | $ | 0 | $ | 0 | $ | 3.6 | $ | 2.8 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||
Interest cost | 2.4 | 2.9 | 0.2 | 0.2 | 7.2 | 8.6 | 0.4 | 0.5 | |||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (4.4) | (4.2) | 0 | 0 | (13.1) | (12.5) | 0 | 0 | |||||||||||||||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||||||||||||||||
Negative prior service cost | 0 | 0 | (1.4) | (1.4) | 0 | 0 | (4.1) | (4.1) | |||||||||||||||||||||||||||||||||||||||
Net actuarial loss | 2.3 | 1.5 | 0.1 | 0.1 | 6.9 | 4.5 | 0.2 | 0.2 | |||||||||||||||||||||||||||||||||||||||
Net periodic cost (benefit) | $ | 1.5 | $ | 1.0 | $ | (1.1) | $ | (1.1) | $ | 4.6 | $ | 3.4 | $ | (3.5) | $ | (3.4) | |||||||||||||||||||||||||||||||
($ millions) | Unrealized Gains and Losses on Available-for-Sale Securities | Benefit Plan Items | Total | |||||||||||||||||
Beginning balance at July 1, 2020 | $ | 93.0 | $ | (75.1) | $ | 17.9 | ||||||||||||||
Other comprehensive income before reclassifications | 3.5 | 0 | 3.5 | |||||||||||||||||
Amounts reclassified from AOCI (a) | 0.2 | 1.7 | 1.9 | |||||||||||||||||
Net current period other comprehensive income | 3.7 | 1.7 | 5.4 | |||||||||||||||||
Ending balance at September 30, 2020 | $ | 96.7 | $ | (73.4) | $ | 23.3 | ||||||||||||||
Beginning balance at July 1, 2019 | $ | 33.2 | $ | (74.9) | $ | (41.7) | ||||||||||||||
Other comprehensive income before reclassifications | 17.8 | 0 | 17.8 | |||||||||||||||||
Amounts reclassified from AOCI (a) | (0.9) | 0.6 | (0.3) | |||||||||||||||||
Net current period other comprehensive income | 16.9 | 0.6 | 17.5 | |||||||||||||||||
Ending balance at September 30, 2019 | $ | 50.1 | $ | (74.3) | $ | (24.2) | ||||||||||||||
(a) | See separate table below for details about these reclassifications |
($ millions) | Unrealized Gains and Losses on Available-for-Sale Securities | Benefit Plan Items | Total | |||||||||
Beginning balance at July 1, 2019 | $ | 33.2 | $ | (74.9 | ) | $ | (41.7 | ) | ||||
Other comprehensive income before reclassifications | 17.8 | — | 17.8 | |||||||||
Amounts reclassified from AOCI (a) | (0.9 | ) | 0.6 | (0.3 | ) | |||||||
Net current period other comprehensive income | 16.9 | 0.6 | 17.5 | |||||||||
Ending balance at September 30, 2019 | $ | 50.1 | $ | (74.3 | ) | $ | (24.2 | ) | ||||
Beginning balance at July 1, 2018 | $ | (20.3 | ) | $ | (75.5 | ) | $ | (95.8 | ) | |||
Other comprehensive loss before reclassifications | (11.6 | ) | — | (11.6 | ) | |||||||
Amounts reclassified from AOCI (a) | — | 1.3 | 1.3 | |||||||||
Net current period other comprehensive (loss) income | (11.6 | ) | 1.3 | (10.3 | ) | |||||||
Ending balance at September 30, 2018 | $ | (31.9 | ) | $ | (74.2 | ) | $ | (106.1 | ) | |||
(a) | See separate table below for details about these reclassifications |
($ millions) | Unrealized Gains and Losses on Available-for-Sale Securities | Benefit Plan Items | Total | |||||||||||||||||
Beginning balance at January 1, 2020 | $ | 40.4 | $ | (78.3) | $ | (37.9) | ||||||||||||||
Other comprehensive income before reclassifications | 58.8 | 0 | 58.8 | |||||||||||||||||
Amounts reclassified from AOCI (a) | (2.5) | 4.9 | 2.4 | |||||||||||||||||
Net current period other comprehensive income | 56.3 | 4.9 | 61.2 | |||||||||||||||||
Ending balance at September 30, 2020 | $ | 96.7 | $ | (73.4) | $ | 23.3 | ||||||||||||||
Beginning balance at January 1, 2019 | $ | (20.2) | $ | (76.2) | $ | (96.4) | ||||||||||||||
Other comprehensive loss before reclassifications | 72.5 | 0 | 72.5 | |||||||||||||||||
Amounts reclassified from AOCI (a) | (2.2) | 1.9 | (0.3) | |||||||||||||||||
Net current period other comprehensive income | 70.3 | 1.9 | 72.2 | |||||||||||||||||
Ending balance at September 30, 2019 | $ | 50.1 | $ | (74.3) | $ | (24.2) | ||||||||||||||
(a) | See separate table below for details about these reclassifications |
($ millions) | Unrealized Gains and Losses on Available-for-Sale Securities | Benefit Plan Items | Total | |||||||||
Beginning balance at January 1, 2019 | $ | (20.2 | ) | $ | (76.2 | ) | $ | (96.4 | ) | |||
Other comprehensive income before reclassifications | 72.5 | — | 72.5 | |||||||||
Amounts reclassified from AOCI (a) | (2.2 | ) | 1.9 | (0.3 | ) | |||||||
Net current period other comprehensive income | 70.3 | 1.9 | 72.2 | |||||||||
Ending balance at September 30, 2019 | $ | 50.1 | $ | (74.3 | ) | $ | (24.2 | ) | ||||
Beginning balance at January 1, 2018 | $ | 66.0 | $ | (62.2 | ) | $ | 3.8 | |||||
Cumulative effect of change in accounting for equity securities and other invested assets and reclassification of stranded tax effects as of January 1, 2018 | (47.9 | ) | (16.0 | ) | (63.9 | ) | ||||||
Other comprehensive loss before reclassifications | (48.7 | ) | — | (48.7 | ) | |||||||
Amounts reclassified from AOCI (a) | (1.3 | ) | 4.0 | 2.7 | ||||||||
Net current period other comprehensive (loss) income | (50.0 | ) | 4.0 | (46.0 | ) | |||||||
Ending balance at September 30, 2018 | $ | (31.9 | ) | $ | (74.2 | ) | $ | (106.1 | ) | |||
(a) | See separate table below for details about these reclassifications |
($ millions) | |||||||||||||||||||||||
Details about Accumulated Other | Three months ended September 30 | Affected line item in the Condensed | |||||||||||||||||||||
Comprehensive Income Components | Consolidated Statements of Income | ||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Unrealized gains on available-for-sale fixed maturity investments | $ | (0.2) | $ | 1.2 | Realized gain on sale of securities | ||||||||||||||||||
(0.2) | 1.2 | Total before tax | |||||||||||||||||||||
0 | (0.3) | Tax expense | |||||||||||||||||||||
(0.2) | 0.9 | Net of tax | |||||||||||||||||||||
Amortization of benefit plan items | |||||||||||||||||||||||
Negative prior service cost | 1.6 | 1.6 | (b) | ||||||||||||||||||||
Net actuarial loss | (3.7) | (2.4) | (b) | ||||||||||||||||||||
(2.1) | (0.8) | Total before tax | |||||||||||||||||||||
0.4 | 0.2 | Tax benefit | |||||||||||||||||||||
(1.7) | (0.6) | Net of tax | |||||||||||||||||||||
Total reclassifications for the period | $ | (1.9) | $ | 0.3 | |||||||||||||||||||
(b) | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see pension and postretirement benefit plans footnote for additional details). | ||||||||||||||||||||||
($ millions) | |||||||||||||||||||||||
Details about Accumulated Other | Nine months ended September 30 | Affected line item in the Condensed | |||||||||||||||||||||
Comprehensive Income Components | Consolidated Statements of Income | ||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Unrealized gains on available-for-sale fixed maturity investments | $ | 3.2 | $ | 2.8 | Realized gains on sale of securities | ||||||||||||||||||
3.2 | 2.8 | Total before tax | |||||||||||||||||||||
(0.7) | (0.6) | Tax expense | |||||||||||||||||||||
2.5 | 2.2 | Net of tax | |||||||||||||||||||||
Amortization of benefit plan items | |||||||||||||||||||||||
Negative prior service cost | 4.8 | 4.8 | (b) | ||||||||||||||||||||
Net actuarial loss | (11.0) | (7.2) | (b) | ||||||||||||||||||||
(6.2) | (2.4) | Total before tax | |||||||||||||||||||||
1.3 | 0.5 | Tax benefit | |||||||||||||||||||||
(4.9) | (1.9) | Net of tax | |||||||||||||||||||||
Total reclassifications for the period | $ | (2.4) | $ | 0.3 | |||||||||||||||||||
(b) | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see pension and postretirement benefit plans footnote for additional details). |
($ millions) | |||||||||||
Details about Accumulated Other | Three months ended September 30 | Affected line item in the Condensed | |||||||||
Comprehensive Income Components | Consolidated Statements of Income | ||||||||||
2019 | 2018 | ||||||||||
Unrealized gains on available-for-sale fixed maturity investments | $ | 1.2 | $ | — | Realized gains on sale of securities | ||||||
1.2 | — | Total before tax | |||||||||
(0.3 | ) | — | Tax expense | ||||||||
0.9 | — | Net of tax | |||||||||
Amortization of benefit plan items | |||||||||||
Negative prior service cost | 1.6 | 1.6 | (b) | ||||||||
Net actuarial loss | (2.4 | ) | (3.3 | ) | (b) | ||||||
(0.8 | ) | (1.7 | ) | Total before tax | |||||||
0.2 | 0.4 | Tax benefit | |||||||||
(0.6 | ) | (1.3 | ) | Net of tax | |||||||
Total reclassifications for the period | $ | 0.3 | $ | (1.3 | ) | ||||||
(b) | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see pension and postretirement benefit plans footnote for additional details). |
($ millions) | |||||||||||
Details about Accumulated Other | Nine months ended September 30 | Affected line item in the Condensed | |||||||||
Comprehensive Income Components | Consolidated Statements of Income | ||||||||||
2019 | 2018 | ||||||||||
Unrealized gains on available-for-sale fixed maturity investments | $ | 2.8 | $ | 1.7 | Realized gain on sale of securities | ||||||
2.8 | 1.7 | Total before tax | |||||||||
(0.6 | ) | (0.4 | ) | Tax expense | |||||||
2.2 | 1.3 | Net of tax | |||||||||
Amortization of benefit plan items | |||||||||||
Negative prior service cost | 4.8 | 4.8 | (b) | ||||||||
Net actuarial loss | (7.2 | ) | (9.9 | ) | (b) | ||||||
(2.4 | ) | (5.1 | ) | Total before tax | |||||||
0.5 | 1.1 | Tax benefit | |||||||||
(1.9 | ) | (4.0 | ) | Net of tax | |||||||
Total reclassifications for the period | $ | 0.3 | $ | (2.7 | ) | ||||||
(b) | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see pension and postretirement benefit plans footnote for additional details). |
($ and shares in millions, except per share amounts) | Three months ended September 30 | Nine months ended September 30 | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Numerator: | |||||||||||||||
Net income for basic earnings per common share | $ | 11.5 | $ | 33.4 | $ | 54.7 | $ | 37.3 | |||||||
Denominator: | |||||||||||||||
Weighted average shares for basic (loss) earnings per common share | 43.5 | 43.0 | 43.4 | 42.8 | |||||||||||
Effect of dilutive share-based awards | 0.5 | 0.6 | 0.6 | 0.5 | |||||||||||
Adjusted weighted average shares for diluted net (loss) earnings per common share | 44.0 | 43.6 | 44.0 | 43.3 | |||||||||||
Basic net earnings per common share | $ | 0.26 | $ | 0.78 | $ | 1.26 | $ | 0.87 | |||||||
Diluted net earnings per common share | $ | 0.25 | $ | 0.76 | $ | 1.25 | $ | 0.86 | |||||||
($ and shares in millions, except per share amounts) | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income (loss) for basic earnings (loss) per common share | $ | 11.6 | $ | 11.5 | $ | (68.7) | $ | 54.7 | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average shares for basic earnings (loss) per common share | 43.8 | 43.5 | 43.7 | 43.4 | |||||||||||||||||||
Effect of dilutive share-based awards | 0.5 | 0.5 | 0 | 0.6 | |||||||||||||||||||
Adjusted weighted average shares for diluted earnings (loss) per common share | 44.3 | 44.0 | 43.7 | 44.0 | |||||||||||||||||||
Basic net earnings (loss) per common share | $ | 0.26 | $ | 0.26 | $ | (1.57) | $ | 1.26 | |||||||||||||||
Diluted net earnings (loss) per common share | $ | 0.26 | $ | 0.25 | $ | (1.57) | $ | 1.25 | |||||||||||||||
(shares in millions) | Three months ended September 30 | Nine months ended September 30 | |||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Total number of antidilutive options and awards | — | — | — | 0.1 | |||||||
(shares in millions) | Nine months ended September 30 | ||||||||||||||||||||||
2020 | |||||||||||||||||||||||
Total number of antidilutive awards | 0.6 | ||||||||||||||||||||||
($ millions) | Three months ended September 30 | Nine months ended September 30 | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenue from external sources: | |||||||||||||||
Insurance operations | |||||||||||||||
Personal insurance | $ | 192.7 | $ | 173.0 | $ | 562.5 | $ | 494.2 | |||||||
Commercial insurance | 127.0 | 115.2 | 361.4 | 345.7 | |||||||||||
Specialty run-off | (0.1 | ) | 18.6 | 6.1 | 89.3 | ||||||||||
Total insurance operations | 319.6 | 306.8 | 930.0 | 929.2 | |||||||||||
Investment operations | |||||||||||||||
Net investment income | 19.3 | 20.8 | 60.4 | 62.2 | |||||||||||
Net investment (loss) gain | (5.0 | ) | 17.8 | 50.2 | 18.2 | ||||||||||
Total investment operations | 14.3 | 38.6 | 110.6 | 80.4 | |||||||||||
All other | 0.6 | 0.6 | 1.6 | 1.8 | |||||||||||
Total revenue from external sources | 334.5 | 346.0 | 1,042.2 | 1,011.4 | |||||||||||
Intersegment revenue | 1.7 | 1.6 | 4.9 | 4.8 | |||||||||||
Total revenue | 336.2 | 347.6 | 1,047.1 | 1,016.2 | |||||||||||
Reconciling items: | |||||||||||||||
Eliminate intersegment revenue | (1.7 | ) | (1.6 | ) | (4.9 | ) | (4.8 | ) | |||||||
Total consolidated revenues | $ | 334.5 | $ | 346.0 | $ | 1,042.2 | $ | 1,011.4 | |||||||
Segment (loss) income before federal income tax: | |||||||||||||||
Insurance operations SAP underwriting (loss) gain | |||||||||||||||
Personal insurance | $ | (6.3 | ) | $ | 6.9 | $ | (32.0 | ) | $ | (4.6 | ) | ||||
Commercial insurance | 1.2 | (5.2 | ) | (17.1 | ) | (22.3 | ) | ||||||||
Specialty run-off | (0.6 | ) | 1.9 | (1.3 | ) | 4.5 | |||||||||
Total insurance operations | (5.7 | ) | 3.6 | (50.4 | ) | (22.4 | ) | ||||||||
Investment operations | |||||||||||||||
Net investment income | 19.3 | 20.8 | 60.4 | 62.2 | |||||||||||
Net investment (loss) gain | (5.0 | ) | 17.8 | 50.2 | 18.2 | ||||||||||
Total investment operations | 14.3 | 38.6 | 110.6 | 80.4 | |||||||||||
All other | — | 0.1 | 0.2 | 0.3 | |||||||||||
Total segment income before reconciling items | 8.6 | 42.3 | 60.4 | 58.3 | |||||||||||
Reconciling items: | |||||||||||||||
GAAP expense adjustments | 7.2 | 0.8 | 17.3 | (2.6 | ) | ||||||||||
Interest expense on corporate debt | (1.2 | ) | (1.2 | ) | (3.7 | ) | (4.5 | ) | |||||||
Corporate expenses | (1.9 | ) | (0.9 | ) | (7.3 | ) | (5.8 | ) | |||||||
Total reconciling items | 4.1 | (1.3 | ) | 6.3 | (12.9 | ) | |||||||||
Total consolidated income before federal income tax | $ | 12.7 | $ | 41.0 | $ | 66.7 | $ | 45.4 | |||||||
($ millions) | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Revenue from external sources: | |||||||||||||||||||||||
Insurance operations | |||||||||||||||||||||||
Personal insurance | $ | 208.8 | $ | 192.7 | $ | 609.7 | $ | 562.5 | |||||||||||||||
Commercial insurance | 144.4 | 127.0 | 414.7 | 361.4 | |||||||||||||||||||
Specialty run-off | 0 | (0.1) | 0 | 6.1 | |||||||||||||||||||
Total insurance operations | 353.2 | 319.6 | 1,024.4 | 930.0 | |||||||||||||||||||
Investment operations | |||||||||||||||||||||||
Net investment income | 17.9 | 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 | 0.5 | 0.6 | 1.6 | 1.6 | |||||||||||||||||||
Total revenue from external sources | 391.6 | 334.5 | 1,041.2 | 1,042.2 | |||||||||||||||||||
Intersegment revenue | 1.5 | 1.7 | 4.6 | 4.9 | |||||||||||||||||||
Total revenue | 393.1 | 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 insurance | 14.4 | 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 income | 17.9 | 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 | 0 | 0.1 | 0.2 | |||||||||||||||||||
Total segment income (loss) before reconciling items | 11.2 | 8.6 | (100.6) | 60.4 | |||||||||||||||||||
Reconciling items: | |||||||||||||||||||||||
GAAP expense adjustments | 5.6 | 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 items | 3.6 | 4.1 | 13.0 | 6.3 | |||||||||||||||||||
Total consolidated income (loss) before federal income tax | $ | 14.8 | $ | 12.7 | $ | (87.6) | $ | 66.7 | |||||||||||||||
STFC Pooled Companies: | ||||||||
State Auto P&C | 51.0 | % | ||||||
Milbank | 14.0 | |||||||
SA Ohio | — | |||||||
Total STFC Pooled Companies | 65.0 | % | ||||||
State Auto Mutual Pooled Companies: | ||||||||
State Auto Mutual | 34.5 | % | ||||||
SA Wisconsin | — | |||||||
Meridian Security | — | |||||||
Patrons Mutual | 0.5 | |||||||
RIC | — | |||||||
Plaza | — | |||||||
American Compensation | — | |||||||
Bloomington Compensation | — | |||||||
Total State Auto Mutual Pooled Companies | 35.0 | % | ||||||
($ millions, except per share amounts) | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
GAAP Basis: | |||||||||||||||||||||||
Total revenues | $ | 391.6 | $ | 334.5 | $ | 1,041.2 | $ | 1,042.2 | |||||||||||||||
Income (loss) before federal income taxes | $ | 14.8 | $ | 12.7 | $ | (87.6) | $ | 66.7 | |||||||||||||||
Net income (loss) | $ | 11.6 | $ | 11.5 | $ | (68.7) | $ | 54.7 | |||||||||||||||
Basic earnings (loss) per share | $ | 0.26 | $ | 0.26 | $ | (1.57) | $ | 1.26 | |||||||||||||||
Diluted earnings (loss) per share | $ | 0.26 | $ | 0.25 | $ | (1.57) | $ | 1.25 | |||||||||||||||
Stockholders’ equity | $ | 944.1 | $ | 943.7 | |||||||||||||||||||
Return on average equity (LTM) | (3.8) | % | 3.4 | % | |||||||||||||||||||
Book value per share | $ | 21.57 | $ | 21.68 | |||||||||||||||||||
Debt to capital ratio | 11.4 | % | 11.4 | % | |||||||||||||||||||
Cat loss and ALAE ratio | 16.6 | % | 3.3 | % | 18.6 | % | 8.1 | % | |||||||||||||||
Non-cat loss and LAE ratio | 54.6 | % | 61.9 | % | 55.8 | % | 60.5 | % | |||||||||||||||
Loss and LAE ratio | 71.2 | % | 65.2 | % | 74.4 | % | 68.6 | % | |||||||||||||||
Expense ratio | 34.8 | % | 34.3 | % | 34.9 | % | 35.0 | % | |||||||||||||||
Combined ratio | 106.0 | % | 99.5 | % | 109.3 | % | 103.6 | % | |||||||||||||||
Premium written growth | 9.3 | % | 11.0 | % | 11.3 | % | 9.0 | % | |||||||||||||||
Investment yield | 2.8 | % | 2.9 | % | 2.9 | % | 3.0 | % | |||||||||||||||
SAP Basis: | |||||||||||||||||||||||
Cat loss and ALAE ratio | 16.6 | % | 3.3 | % | 18.6 | % | 8.1 | % | |||||||||||||||
Non-cat loss and ALAE ratio | 49.5 | % | 56.1 | % | 49.9 | % | 54.3 | % | |||||||||||||||
ULAE ratio | 5.2 | % | 6.0 | % | 6.0 | % | 6.3 | % | |||||||||||||||
Loss and LAE ratio | 71.3 | % | 65.4 | % | 74.5 | % | 68.7 | % | |||||||||||||||
Expense ratio | 33.8 | % | 33.6 | % | 34.1 | % | 34.3 | % | |||||||||||||||
Combined ratio | 105.1 | % | 99.0 | % | 108.6 | % | 103.0 | % | |||||||||||||||
($ millions, except per share amounts) | Three months ended September 30 | Nine months ended September 30 | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
GAAP Basis: | |||||||||||||||
Total revenues | $ | 334.5 | $ | 346.0 | $ | 1,042.2 | $ | 1,011.4 | |||||||
Income before federal income taxes | $ | 12.7 | $ | 41.0 | $ | 66.7 | $ | 45.4 | |||||||
Net income | $ | 11.5 | $ | 33.4 | $ | 54.7 | $ | 37.3 | |||||||
Basic earnings per share | $ | 0.26 | $ | 0.78 | $ | 1.26 | $ | 0.87 | |||||||
Diluted earnings per share | $ | 0.25 | $ | 0.76 | $ | 1.25 | $ | 0.86 | |||||||
Stockholders’ equity | $ | 943.7 | $ | 831.6 | |||||||||||
Return on average equity (LTM) | 3.4 | % | 3.7 | % | |||||||||||
Book value per share | $ | 21.68 | $ | 19.36 | |||||||||||
Debt to capital ratio | 11.4 | % | 12.8 | % | |||||||||||
Cat loss and ALAE ratio | 3.3 | % | 5.3 | % | 8.1 | % | 6.8 | % | |||||||
Non-cat loss and LAE ratio | 61.9 | % | 57.0 | % | 60.5 | % | 60.0 | % | |||||||
Loss and LAE ratio | 65.2 | % | 62.3 | % | 68.6 | % | 66.8 | % | |||||||
Expense ratio | 34.3 | % | 36.1 | % | 35.0 | % | 35.8 | % | |||||||
Combined ratio | 99.5 | % | 98.4 | % | 103.6 | % | 102.6 | % | |||||||
Premium written growth | 11.0 | % | (2.8 | )% | 9.0 | % | (5.9 | )% | |||||||
Investment yield | 2.9 | % | 3.1 | % | 3.0 | % | 3.1 | % | |||||||
SAP Basis: | |||||||||||||||
Cat loss and ALAE ratio | 3.3 | % | 5.3 | % | 8.1 | % | 6.8 | % | |||||||
Non-cat loss and ALAE ratio | 56.1 | % | 51.2 | % | 54.3 | % | 54.2 | % | |||||||
ULAE ratio | 6.0 | % | 5.9 | % | 6.3 | % | 6.0 | % | |||||||
Loss and LAE ratio | 65.4 | % | 62.4 | % | 68.7 | % | 67.0 | % | |||||||
Expense ratio | 33.6 | % | 35.8 | % | 34.3 | % | 36.1 | % | |||||||
Combined ratio | 99.0 | % | 98.2 | % | 103.0 | % | 103.1 | % | |||||||
Twelve months ended September 30 | |||||||||||
2020 | 2019 | ||||||||||
Net premiums written to surplus | 1.7 | 1.5 |
Twelve months ended September 30 | |||||
2019 | 2018 | ||||
Net premiums written to surplus | 1.5 | 1.4 |
($ in millions) | ||||||||||||||||||||
Three months ended September 30, 2020 | Personal & Commercial | Specialty run-off | Total | |||||||||||||||||
Net written premiums | $ | 379.0 | $ | 0.1 | $ | 379.1 | ||||||||||||||
Net earned premiums | 353.2 | — | 353.2 | |||||||||||||||||
Losses and LAE incurred: | ||||||||||||||||||||
Cat loss and ALAE | 46.4 | 12.3 | 58.7 | |||||||||||||||||
Non-cat loss and ALAE | ||||||||||||||||||||
Prior accident years non-cat loss and ALAE | (18.4) | (0.9) | (19.3) | |||||||||||||||||
Current accident year non-cat loss and ALAE | 194.1 | 0.2 | 194.3 | |||||||||||||||||
Total non-cat loss and ALAE | 175.7 | (0.7) | 175.0 | |||||||||||||||||
Total Loss and ALAE | 222.1 | 11.6 | 233.7 | |||||||||||||||||
ULAE | 19.6 | (1.3) | 18.3 | |||||||||||||||||
Total Loss and LAE | 241.7 | 10.3 | 252.0 | |||||||||||||||||
Underwriting expenses | 127.8 | 0.1 | 127.9 | |||||||||||||||||
Net underwriting loss | $ | (16.3) | $ | (10.4) | $ | (26.7) | ||||||||||||||
Cat loss and ALAE ratio | 13.1 | % | N/M(1) | 16.6 | % | |||||||||||||||
Non-cat loss and ALAE ratio | ||||||||||||||||||||
Prior accident years non-cat loss and ALAE ratio | (5.2) | % | N/M | (5.5) | % | |||||||||||||||
Current accident year non-cat loss and ALAE ratio | 55.1 | % | N/M | 55.0 | % | |||||||||||||||
Total non-cat loss and ALAE ratio | 49.9 | % | N/M | 49.5 | % | |||||||||||||||
Total Loss and ALAE ratio | 63.0 | % | N/M | 66.1 | % | |||||||||||||||
ULAE ratio | 5.5 | % | N/M | 5.2 | % | |||||||||||||||
Total Loss and LAE ratio | 68.5 | % | N/M | 71.3 | % | |||||||||||||||
Expense ratio | 33.7 | % | N/M | 33.8 | % | |||||||||||||||
Combined ratio | 102.2 | % | N/M | 105.1 | % | |||||||||||||||
(1) N/M = Not Meaningful |
($ in millions) | ||||||||||||
Three months ended September 30, 2019 | Personal & Commercial | Specialty run-off | Total | |||||||||
Net written premiums | $ | 347.2 | $ | (0.4 | ) | $ | 346.8 | |||||
Net earned premiums | 319.7 | (0.1 | ) | 319.6 | ||||||||
Losses and LAE incurred: | ||||||||||||
Cat loss and ALAE | 10.3 | 0.3 | 10.6 | |||||||||
Non-cat loss and ALAE | ||||||||||||
Prior accident years non-cat loss and ALAE | (15.2 | ) | (0.9 | ) | (16.1 | ) | ||||||
Current accident year non-cat loss and ALAE | 195.0 | 0.1 | 195.1 | |||||||||
Total non-cat loss and ALAE | 179.8 | (0.8 | ) | 179.0 | ||||||||
Total Loss and ALAE | 190.1 | (0.5 | ) | 189.6 | ||||||||
ULAE | 19.2 | (0.1 | ) | 19.1 | ||||||||
Total Loss and LAE | 209.3 | (0.6 | ) | 208.7 | ||||||||
Underwriting expenses | 115.5 | 1.1 | 116.6 | |||||||||
Net underwriting loss | $ | (5.1 | ) | $ | (0.6 | ) | $ | (5.7 | ) | |||
Cat loss and ALAE ratio | 3.2 | % | N/M(1) | 3.3 | % | |||||||
Non-cat loss and ALAE ratio | ||||||||||||
Prior accident years non-cat loss and ALAE ratio | (4.8 | )% | N/M | (5.1 | )% | |||||||
Current accident year non-cat loss and ALAE ratio | 61.0 | % | N/M | 61.2 | % | |||||||
Total non-cat loss and ALAE ratio | 56.2 | % | N/M | 56.1 | % | |||||||
Total Loss and ALAE ratio | 59.4 | % | N/M | 59.4 | % | |||||||
ULAE ratio | 6.0 | % | N/M | 6.0 | % | |||||||
Total Loss and LAE ratio | 65.4 | % | N/M | 65.4 | % | |||||||
Expense ratio | 33.3 | % | N/M | 33.6 | % | |||||||
Combined ratio | 98.7 | % | N/M | 99.0 | % | |||||||
(1) N/M = Not Meaningful |
($ in millions) | ||||||||||||||||||||
Three months ended September 30, 2019 | Personal & Commercial | Specialty run-off | Total | |||||||||||||||||
Net written premiums | $ | 347.2 | $ | (0.4) | $ | 346.8 | ||||||||||||||
Net earned premiums | 319.7 | (0.1) | 319.6 | |||||||||||||||||
Losses and LAE incurred: | ||||||||||||||||||||
Cat loss and ALAE | 10.3 | 0.3 | 10.6 | |||||||||||||||||
Non-cat loss and ALAE | ||||||||||||||||||||
Prior accident years non-cat loss and ALAE | (15.2) | (0.9) | (16.1) | |||||||||||||||||
Current accident year non-cat loss and ALAE | 195.0 | 0.1 | 195.1 | |||||||||||||||||
Total non-cat loss and ALAE | 179.8 | (0.8) | 179.0 | |||||||||||||||||
Total Loss and ALAE | 190.1 | (0.5) | 189.6 | |||||||||||||||||
ULAE | 19.2 | (0.1) | 19.1 | |||||||||||||||||
Total Loss and LAE | 209.3 | (0.6) | 208.7 | |||||||||||||||||
Underwriting expenses | 115.5 | 1.1 | 116.6 | |||||||||||||||||
Net underwriting loss | $ | (5.1) | $ | (0.6) | $ | (5.7) | ||||||||||||||
Cat loss and ALAE ratio | 3.2 | % | N/M(1) | 3.3 | % | |||||||||||||||
Non-cat loss and ALAE ratio | ||||||||||||||||||||
Prior accident years non-cat loss and ALAE ratio | (4.8) | % | N/M | (5.1) | % | |||||||||||||||
Current accident year non-cat loss and ALAE ratio | 61.0 | % | N/M | 61.2 | % | |||||||||||||||
Total non-cat loss and ALAE ratio | 56.2 | % | N/M | 56.1 | % | |||||||||||||||
Total Loss and ALAE ratio | 59.4 | % | N/M | 59.4 | % | |||||||||||||||
ULAE ratio | 6.0 | % | N/M | 6.0 | % | |||||||||||||||
Total Loss and LAE ratio | 65.4 | % | N/M | 65.4 | % | |||||||||||||||
Expense ratio | 33.3 | % | N/M | 33.6 | % | |||||||||||||||
Combined ratio | 98.7 | % | N/M | 99.0 | % | |||||||||||||||
(1) N/M = Not Meaningful |
($ in millions) | ||||||||||||
Three months ended September 30, 2018 | Personal & Commercial | Specialty run-off | Total | |||||||||
Net written premiums | $ | 312.9 | $ | (0.5 | ) | $ | 312.4 | |||||
Net earned premiums | 288.2 | 18.6 | 306.8 | |||||||||
Losses and LAE incurred: | ||||||||||||
Cat loss and ALAE | 15.9 | 0.4 | 16.3 | |||||||||
Non-cat loss and ALAE | ||||||||||||
Prior accident years non-cat loss and ALAE | (19.9 | ) | 1.8 | (18.1 | ) | |||||||
Current accident year non-cat loss and ALAE | 163.7 | 11.4 | 175.1 | |||||||||
Total non-cat loss and ALAE | 143.8 | 13.2 | 157.0 | |||||||||
Total Loss and ALAE | 159.7 | 13.6 | 173.3 | |||||||||
ULAE | 17.3 | 0.8 | 18.1 | |||||||||
Total Loss and LAE | 177.0 | 14.4 | 191.4 | |||||||||
Underwriting expenses | 109.5 | 2.3 | 111.8 | |||||||||
Net underwriting gain | $ | 1.7 | $ | 1.9 | $ | 3.6 | ||||||
Cat loss and ALAE ratio | 5.5 | % | 2.2 | % | 5.3 | % | ||||||
Non-cat loss and ALAE ratio | ||||||||||||
Prior accident years non-cat loss and ALAE ratio | (6.9 | )% | 9.4 | % | (5.9 | )% | ||||||
Current accident year non-cat loss and ALAE ratio | 56.8 | % | 62.1 | % | 57.1 | % | ||||||
Total non-cat loss and ALAE ratio | 49.9 | % | 71.5 | % | 51.2 | % | ||||||
Total Loss and ALAE ratio | 55.4 | % | 73.7 | % | 56.5 | % | ||||||
ULAE ratio | 6.0 | % | 3.9 | % | 5.9 | % | ||||||
Total Loss and LAE ratio | 61.4 | % | 77.6 | % | 62.4 | % | ||||||
Expense ratio | 35.0 | % | (439.2 | )% | 35.8 | % | ||||||
Combined ratio | 96.4 | % | (361.6 | )% | 98.2 | % | ||||||
($ in millions) | ||||||||||||||||||||
Nine months ended September 30, 2020 | Personal & Commercial | Specialty run-off | Total | |||||||||||||||||
Net written premiums | $ | 1,107.3 | $ | (0.1) | $ | 1,107.2 | ||||||||||||||
Net earned premiums | 1,024.4 | — | 1,024.4 | |||||||||||||||||
Losses and LAE incurred: | ||||||||||||||||||||
Cat loss and ALAE | 178.6 | 12.4 | 191.0 | |||||||||||||||||
Non-cat loss and ALAE | ||||||||||||||||||||
Prior accident years non-cat loss and ALAE | (37.0) | 5.2 | (31.8) | |||||||||||||||||
Current accident year non-cat loss and ALAE | 542.1 | 0.3 | 542.4 | |||||||||||||||||
Total non-cat loss and ALAE | 505.1 | 5.5 | 510.6 | |||||||||||||||||
Total Loss and ALAE | 683.7 | 17.9 | 701.6 | |||||||||||||||||
ULAE | 62.9 | (1.3) | 61.6 | |||||||||||||||||
Total Loss and LAE | 746.6 | 16.6 | 763.2 | |||||||||||||||||
Underwriting expenses | 376.6 | 0.5 | 377.1 | |||||||||||||||||
Net underwriting loss | $ | (98.8) | $ | (17.1) | $ | (115.9) | ||||||||||||||
Cat loss and ALAE ratio | 17.4 | % | N/M(1) | 18.6 | % | |||||||||||||||
Non-cat loss and ALAE ratio | ||||||||||||||||||||
Prior accident years non-cat loss and ALAE ratio | (3.6) | % | N/M | (3.1) | % | |||||||||||||||
Current accident year non-cat loss and ALAE ratio | 53.0 | % | N/M | 53.0 | % | |||||||||||||||
Total non-cat loss and ALAE ratio | 49.4 | % | N/M | 49.9 | % | |||||||||||||||
Total Loss and ALAE ratio | 66.8 | % | N/M | 68.5 | % | |||||||||||||||
ULAE ratio | 6.1 | % | N/M | 6.0 | % | |||||||||||||||
Total Loss and LAE ratio | 72.9 | % | N/M | 74.5 | % | |||||||||||||||
Expense ratio | 34.0 | % | N/M | 34.1 | % | |||||||||||||||
Combined ratio | 106.9 | % | N/M | 108.6 | % | |||||||||||||||
(1) N/M = Not Meaningful |
($ in millions) | ||||||||||||
Nine months ended September 30, 2019 | Personal & Commercial | Specialty run-off | Total | |||||||||
Net written premiums | $ | 994.0 | $ | 0.5 | $ | 994.5 | ||||||
Net earned premiums | 923.9 | 6.1 | 930.0 | |||||||||
Losses and LAE incurred: | ||||||||||||
Cat loss and ALAE | 71.7 | 4.0 | 75.7 | |||||||||
Non-cat loss and ALAE | ||||||||||||
Prior accident years non-cat loss and ALAE | (51.7 | ) | (2.4 | ) | (54.1 | ) | ||||||
Current accident year non-cat loss and ALAE | 553.6 | 4.9 | 558.5 | |||||||||
Total non-cat loss and ALAE | 501.9 | 2.5 | 504.4 | |||||||||
Total Loss and ALAE | 573.6 | 6.5 | 580.1 | |||||||||
ULAE | 59.6 | (0.8 | ) | 58.8 | ||||||||
Total Loss and LAE | 633.2 | 5.7 | 638.9 | |||||||||
Underwriting expenses | 339.8 | 1.7 | 341.5 | |||||||||
Net underwriting loss | $ | (49.1 | ) | $ | (1.3 | ) | $ | (50.4 | ) | |||
Cat loss and ALAE ratio | 7.8 | % | N/M(1) | 8.1 | % | |||||||
Non-cat loss and ALAE ratio | ||||||||||||
Prior accident years non-cat loss and ALAE ratio | (5.6 | )% | N/M | (5.8 | )% | |||||||
Current accident year non-cat loss and ALAE ratio | 59.9 | % | N/M | 60.1 | % | |||||||
Total non-cat loss and ALAE ratio | 54.3 | % | N/M | 54.3 | % | |||||||
Total Loss and ALAE ratio | 62.1 | % | N/M | 62.4 | % | |||||||
ULAE ratio | 6.4 | % | N/M | 6.3 | % | |||||||
Total Loss and LAE ratio | 68.5 | % | N/M | 68.7 | % | |||||||
Expense ratio | 34.2 | % | N/M | 34.3 | % | |||||||
Combined ratio | 102.7 | % | N/M | 103.0 | % | |||||||
(1) N/M = Not Meaningful |
($ in millions) | ||||||||||||||||||||
Nine months ended September 30, 2019 | Personal & Commercial | Specialty run-off | Total | |||||||||||||||||
Net written premiums | $ | 994.0 | $ | 0.5 | $ | 994.5 | ||||||||||||||
Net earned premiums | 923.9 | 6.1 | 930.0 | |||||||||||||||||
Losses and LAE incurred: | ||||||||||||||||||||
Cat loss and ALAE | 71.7 | 4.0 | 75.7 | |||||||||||||||||
Non-cat loss and ALAE | ||||||||||||||||||||
Prior accident years non-cat loss and ALAE | (51.7) | (2.4) | (54.1) | |||||||||||||||||
Current accident year non-cat loss and ALAE | 553.6 | 4.9 | 558.5 | |||||||||||||||||
Total non-cat loss and ALAE | 501.9 | 2.5 | 504.4 | |||||||||||||||||
Total Loss and ALAE | 573.6 | 6.5 | 580.1 | |||||||||||||||||
ULAE | 59.6 | (0.8) | 58.8 | |||||||||||||||||
Total Loss and LAE | 633.2 | 5.7 | 638.9 | |||||||||||||||||
Underwriting expenses | 339.8 | 1.7 | 341.5 | |||||||||||||||||
Net underwriting loss | $ | (49.1) | $ | (1.3) | $ | (50.4) | ||||||||||||||
Cat loss and ALAE ratio | 7.8 | % | N/M(1) | 8.1 | % | |||||||||||||||
Non-cat loss and ALAE ratio | ||||||||||||||||||||
Prior accident years non-cat loss and ALAE ratio | (5.6) | % | N/M | (5.8) | % | |||||||||||||||
Current accident year non-cat loss and ALAE ratio | 59.9 | % | N/M | 60.1 | % | |||||||||||||||
Total non-cat loss and ALAE ratio | 54.3 | % | N/M | 54.3 | % | |||||||||||||||
Total Loss and ALAE ratio | 62.1 | % | N/M | 62.4 | % | |||||||||||||||
ULAE ratio | 6.4 | % | N/M | 6.3 | % | |||||||||||||||
Total Loss and LAE ratio | 68.5 | % | N/M | 68.7 | % | |||||||||||||||
Expense ratio | 34.2 | % | N/M | 34.3 | % | |||||||||||||||
Combined ratio | 102.7 | % | N/M | 103.0 | % | |||||||||||||||
(1) N/M = Not Meaningful |
($ in millions) | ||||||||||||
Nine months ended September 30, 2018 | Personal & Commercial | Specialty run-off | Total | |||||||||
Net written premiums | $ | 898.4 | $ | 14.3 | $ | 912.7 | ||||||
Net earned premiums | 839.9 | 89.3 | 929.2 | |||||||||
Losses and LAE incurred: | ||||||||||||
Cat loss and ALAE | 63.4 | 0.2 | 63.6 | |||||||||
Non-cat loss and ALAE | ||||||||||||
Prior accident years non-cat loss and ALAE | (56.4 | ) | 4.2 | (52.2 | ) | |||||||
Current accident year non-cat loss and ALAE | 496.0 | 59.4 | 555.4 | |||||||||
Total non-cat loss and ALAE | 439.6 | 63.6 | 503.2 | |||||||||
Total Loss and ALAE | 503.0 | 63.8 | 566.8 | |||||||||
ULAE | 51.0 | 4.5 | 55.5 | |||||||||
Total Loss and LAE | 554.0 | 68.3 | 622.3 | |||||||||
Underwriting expenses | 312.8 | 16.5 | 329.3 | |||||||||
Net underwriting (loss) gain | $ | (26.9 | ) | $ | 4.5 | $ | (22.4 | ) | ||||
Cat loss and ALAE ratio | 7.6 | % | 0.2 | % | 6.8 | % | ||||||
Non-cat loss and ALAE ratio | ||||||||||||
Prior accident years non-cat loss and ALAE ratio | (6.7 | )% | 4.6 | % | (5.6 | )% | ||||||
Current accident year non-cat loss and ALAE ratio | 59.0 | % | 66.6 | % | 59.8 | % | ||||||
Total non-cat loss and ALAE ratio | 52.3 | % | 71.2 | % | 54.2 | % | ||||||
Total Loss and ALAE ratio | 59.9 | % | 71.4 | % | 61.0 | % | ||||||
ULAE ratio | 6.1 | % | 5.0 | % | 6.0 | % | ||||||
Total Loss and LAE ratio | 66.0 | % | 76.4 | % | 67.0 | % | ||||||
Expense ratio | 34.8 | % | 115.9 | % | 36.1 | % | ||||||
Combined ratio | 100.8 | % | 192.3 | % | 103.1 | % | ||||||
($ in millions) | ||||||||||||||||
Three months ended September 30, 2019 | Personal Auto | Homeowners | Other Personal | Total | ||||||||||||
Net written premiums | $ | 107.1 | $ | 91.5 | $ | 11.2 | $ | 209.8 | ||||||||
Net earned premiums | 108.3 | 75.6 | 8.8 | 192.7 | ||||||||||||
Losses and LAE incurred: | ||||||||||||||||
Cat loss and ALAE | 0.9 | 7.0 | 0.3 | 8.2 | ||||||||||||
Non-cat loss and ALAE | ||||||||||||||||
Prior accident years non-cat loss and ALAE | (1.2 | ) | — | (0.9 | ) | (2.1 | ) | |||||||||
Current accident year non-cat loss and ALAE | 73.0 | 41.2 | 4.7 | 118.9 | ||||||||||||
Total non-cat loss and ALAE | 71.8 | 41.2 | 3.8 | 116.8 | ||||||||||||
Total Loss and ALAE | 72.7 | 48.2 | 4.1 | 125.0 | ||||||||||||
ULAE | 7.4 | 4.4 | 0.2 | 12.0 | ||||||||||||
Total Loss and LAE | 80.1 | 52.6 | 4.3 | 137.0 | ||||||||||||
Underwriting expenses | 30.9 | 27.8 | 3.3 | 62.0 | ||||||||||||
Net underwriting (loss) gain | $ | (2.7 | ) | $ | (4.8 | ) | $ | 1.2 | $ | (6.3 | ) | |||||
Cat loss and ALAE ratio | 0.8 | % | 9.2 | % | 3.5 | % | 4.2 | % | ||||||||
Non-cat loss and ALAE ratio | ||||||||||||||||
Prior accident years non-cat loss and ALAE ratio | (1.2 | )% | 0.1 | % | (9.8 | )% | (1.1 | )% | ||||||||
Current accident year non-cat loss and ALAE ratio | 67.4 | % | 54.5 | % | 52.5 | % | 61.7 | % | ||||||||
Total non-cat loss and ALAE ratio | 66.2 | % | 54.6 | % | 42.7 | % | 60.6 | % | ||||||||
Total Loss and ALAE ratio | 67.0 | % | 63.8 | % | 46.2 | % | 64.8 | % | ||||||||
ULAE ratio | 6.9 | % | 5.8 | % | 2.0 | % | 6.2 | % | ||||||||
Total Loss and LAE ratio | 73.9 | % | 69.6 | % | 48.2 | % | 71.0 | % | ||||||||
Expense ratio | 28.9 | % | 30.3 | % | 29.6 | % | 29.6 | % | ||||||||
Combined ratio | 102.8 | % | 99.9 | % | 77.8 | % | 100.6 | % |
($ in millions) | ||||||||||||||||||||||||||
Three months ended September 30, 2020 | Personal Auto | Homeowners | Other Personal | Total | ||||||||||||||||||||||
Net written premiums | $ | 101.4 | $ | 111.4 | $ | 17.4 | $ | 230.2 | ||||||||||||||||||
Net earned premiums | 103.0 | 92.5 | 13.3 | 208.8 | ||||||||||||||||||||||
Losses and LAE incurred: | ||||||||||||||||||||||||||
Cat loss and ALAE | 1.9 | 28.1 | 2.9 | 32.9 | ||||||||||||||||||||||
Non-cat loss and ALAE | ||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE | 8.0 | 0.7 | (0.6) | 8.1 | ||||||||||||||||||||||
Current accident year non-cat loss and ALAE | 58.2 | 50.7 | 4.8 | 113.7 | ||||||||||||||||||||||
Total non-cat loss and ALAE | 66.2 | 51.4 | 4.2 | 121.8 | ||||||||||||||||||||||
Total Loss and ALAE | 68.1 | 79.5 | 7.1 | 154.7 | ||||||||||||||||||||||
ULAE | 7.4 | 6.8 | 0.2 | 14.4 | ||||||||||||||||||||||
Total Loss and LAE | 75.5 | 86.3 | 7.3 | 169.1 | ||||||||||||||||||||||
Underwriting expenses | 32.0 | 33.2 | 5.2 | 70.4 | ||||||||||||||||||||||
Net underwriting (loss) gain | $ | (4.5) | $ | (27.0) | $ | 0.8 | $ | (30.7) | ||||||||||||||||||
Cat loss and ALAE ratio | 1.9 | % | 30.4 | % | 21.5 | % | 15.8 | % | ||||||||||||||||||
Non-cat loss and ALAE ratio | ||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE ratio | 7.8 | % | 0.7 | % | (4.1) | % | 3.9 | % | ||||||||||||||||||
Current accident year non-cat loss and ALAE ratio | 56.4 | % | 54.9 | % | 36.2 | % | 54.4 | % | ||||||||||||||||||
Total non-cat loss and ALAE ratio | 64.2 | % | 55.6 | % | 32.1 | % | 58.3 | % | ||||||||||||||||||
Total Loss and ALAE ratio | 66.1 | % | 86.0 | % | 53.6 | % | 74.1 | % | ||||||||||||||||||
ULAE ratio | 7.2 | % | 7.3 | % | 1.6 | % | 6.9 | % | ||||||||||||||||||
Total Loss and LAE ratio | 73.3 | % | 93.3 | % | 55.2 | % | 81.0 | % | ||||||||||||||||||
Expense ratio | 31.4 | % | 29.8 | % | 29.4 | % | 30.5 | % | ||||||||||||||||||
Combined ratio | 104.7 | % | 123.1 | % | 84.6 | % | 111.5 | % | ||||||||||||||||||
($ in millions) | ||||||||||||||||
Three months ended September 30, 2018 | Personal Auto | Homeowners | Other Personal | Total | ||||||||||||
Net written premiums | $ | 110.7 | $ | 76.6 | $ | 8.0 | $ | 195.3 | ||||||||
Net earned premiums | 103.5 | 63.7 | 5.8 | 173.0 | ||||||||||||
Losses and LAE incurred: | ||||||||||||||||
Cat loss and ALAE | 0.9 | 11.1 | 0.8 | 12.8 | ||||||||||||
Non-cat loss and ALAE | ||||||||||||||||
Prior accident years non-cat loss and ALAE | (7.3 | ) | (1.5 | ) | (0.8 | ) | (9.6 | ) | ||||||||
Current accident year non-cat loss and ALAE | 61.9 | 27.6 | 2.4 | 91.9 | ||||||||||||
Total non-cat loss and ALAE | 54.6 | 26.1 | 1.6 | 82.3 | ||||||||||||
Total Loss and ALAE | 55.5 | 37.2 | 2.4 | 95.1 | ||||||||||||
ULAE | 6.8 | 3.8 | 0.1 | 10.7 | ||||||||||||
Total Loss and LAE | 62.3 | 41.0 | 2.5 | 105.8 | ||||||||||||
Underwriting expenses | 32.6 | 24.9 | 2.8 | 60.3 | ||||||||||||
Net underwriting gain (loss) | $ | 8.6 | $ | (2.2 | ) | $ | 0.5 | $ | 6.9 | |||||||
Cat loss and ALAE ratio | 0.8 | % | 17.4 | % | 13.7 | % | 7.4 | % | ||||||||
Non-cat loss and ALAE ratio | ||||||||||||||||
Prior accident years non-cat loss and ALAE ratio | (7.1 | )% | (2.3 | )% | (14.5 | )% | (5.6 | )% | ||||||||
Current accident year non-cat loss and ALAE ratio | 59.8 | % | 43.2 | % | 43.0 | % | 53.1 | % | ||||||||
Total non-cat loss and ALAE ratio | 52.7 | % | 40.9 | % | 28.5 | % | 47.5 | % | ||||||||
Total Loss and ALAE ratio | 53.5 | % | 58.3 | % | 42.2 | % | 54.9 | % | ||||||||
ULAE ratio | 6.6 | % | 5.9 | % | 1.1 | % | 6.2 | % | ||||||||
Total Loss and LAE ratio | 60.1 | % | 64.2 | % | 43.3 | % | 61.1 | % | ||||||||
Expense ratio | 29.5 | % | 32.6 | % | 34.4 | % | 30.9 | % | ||||||||
Combined ratio | 89.6 | % | 96.8 | % | 77.7 | % | 92.0 | % |
($ in millions) | ||||||||||||||||||||||||||
Three months ended September 30, 2019 | Personal Auto | Homeowners | Other Personal | Total | ||||||||||||||||||||||
Net written premiums | $ | 107.1 | $ | 91.5 | $ | 11.2 | $ | 209.8 | ||||||||||||||||||
Net earned premiums | 108.3 | 75.6 | 8.8 | 192.7 | ||||||||||||||||||||||
Losses and LAE incurred: | ||||||||||||||||||||||||||
Cat loss and ALAE | 0.9 | 7.0 | 0.3 | 8.2 | ||||||||||||||||||||||
Non-cat loss and ALAE | ||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE | (1.2) | — | (0.9) | (2.1) | ||||||||||||||||||||||
Current accident year non-cat loss and ALAE | 73.0 | 41.2 | 4.7 | 118.9 | ||||||||||||||||||||||
Total non-cat loss and ALAE | 71.8 | 41.2 | 3.8 | 116.8 | ||||||||||||||||||||||
Total Loss and ALAE | 72.7 | 48.2 | 4.1 | 125.0 | ||||||||||||||||||||||
ULAE | 7.4 | 4.4 | 0.2 | 12.0 | ||||||||||||||||||||||
Total Loss and LAE | 80.1 | 52.6 | 4.3 | 137.0 | ||||||||||||||||||||||
Underwriting expenses | 30.9 | 27.8 | 3.3 | 62.0 | ||||||||||||||||||||||
Net underwriting (loss) gain | $ | (2.7) | $ | (4.8) | $ | 1.2 | $ | (6.3) | ||||||||||||||||||
Cat loss and ALAE ratio | 0.8 | % | 9.2 | % | 3.5 | % | 4.2 | % | ||||||||||||||||||
Non-cat loss and ALAE ratio | ||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE ratio | (1.2) | % | 0.1 | % | (9.8) | % | (1.1) | % | ||||||||||||||||||
Current accident year non-cat loss and ALAE ratio | 67.4 | % | 54.5 | % | 52.5 | % | 61.7 | % | ||||||||||||||||||
Total non-cat loss and ALAE ratio | 66.2 | % | 54.6 | % | 42.7 | % | 60.6 | % | ||||||||||||||||||
Total Loss and ALAE ratio | 67.0 | % | 63.8 | % | 46.2 | % | 64.8 | % | ||||||||||||||||||
ULAE ratio | 6.9 | % | 5.8 | % | 2.0 | % | 6.2 | % | ||||||||||||||||||
Total Loss and LAE ratio | 73.9 | % | 69.6 | % | 48.2 | % | 71.0 | % | ||||||||||||||||||
Expense ratio | 28.9 | % | 30.3 | % | 29.6 | % | 29.6 | % | ||||||||||||||||||
Combined ratio | 102.8 | % | 99.9 | % | 77.8 | % | 100.6 | % | ||||||||||||||||||
($ in millions) | ||||||||||||||||
Nine months ended September 30, 2019 | Personal Auto | Homeowners | Other Personal | Total | ||||||||||||
Net written premiums | $ | 324.8 | $ | 241.4 | $ | 29.0 | $ | 595.2 | ||||||||
Net earned premiums | 322.1 | 216.1 | 24.3 | 562.5 | ||||||||||||
Losses and LAE incurred: | ||||||||||||||||
Cat loss and ALAE | 5.4 | 47.8 | 4.0 | 57.2 | ||||||||||||
Non-cat loss and ALAE | ||||||||||||||||
Prior accident years non-cat loss and ALAE | (11.0 | ) | 0.5 | (1.9 | ) | (12.4 | ) | |||||||||
Current accident year non-cat loss and ALAE | 207.8 | 110.4 | 12.7 | 330.9 | ||||||||||||
Total non-cat loss and ALAE | 196.8 | 110.9 | 10.8 | 318.5 | ||||||||||||
Total Loss and ALAE | 202.2 | 158.7 | 14.8 | 375.7 | ||||||||||||
ULAE | 22.2 | 15.1 | 0.9 | 38.2 | ||||||||||||
Total Loss and LAE | 224.4 | 173.8 | 15.7 | 413.9 | ||||||||||||
Underwriting expenses | 96.7 | 74.8 | 9.1 | 180.6 | ||||||||||||
Net underwriting gain (loss) | $ | 1.0 | $ | (32.5 | ) | $ | (0.5 | ) | $ | (32.0 | ) | |||||
Cat loss and ALAE ratio | 1.6 | % | 22.1 | % | 16.5 | % | 10.2 | % | ||||||||
Non-cat loss and ALAE ratio | ||||||||||||||||
Prior accident years non-cat loss and ALAE ratio | (3.4 | )% | 0.3 | % | (7.8 | )% | (2.2 | )% | ||||||||
Current accident year non-cat loss and ALAE ratio | 64.5 | % | 51.0 | % | 52.0 | % | 58.7 | % | ||||||||
Total non-cat loss and ALAE ratio | 61.1 | % | 51.3 | % | 44.2 | % | 56.5 | % | ||||||||
Total Loss and ALAE ratio | 62.7 | % | 73.4 | % | 60.7 | % | 66.7 | % | ||||||||
ULAE ratio | 6.9 | % | 7.0 | % | 3.7 | % | 6.8 | % | ||||||||
Total Loss and LAE ratio | 69.6 | % | 80.4 | % | 64.4 | % | 73.5 | % | ||||||||
Expense ratio | 29.8 | % | 31.0 | % | 31.5 | % | 30.4 | % | ||||||||
Combined ratio | 99.4 | % | 111.4 | % | 95.9 | % | 103.9 | % | ||||||||
($ in millions) | ||||||||||||||||||||||||||
Nine months ended September 30, 2020 | Personal Auto | Homeowners | Other Personal | Total | ||||||||||||||||||||||
Net written premiums | $ | 310.3 | $ | 299.1 | $ | 45.7 | $ | 655.1 | ||||||||||||||||||
Net earned premiums | 311.0 | 262.9 | 35.8 | 609.7 | ||||||||||||||||||||||
Losses and LAE incurred: | ||||||||||||||||||||||||||
Cat loss and ALAE | 6.5 | 93.4 | 12.0 | 111.9 | ||||||||||||||||||||||
Non-cat loss and ALAE | ||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE | 19.1 | 2.8 | (1.7) | 20.2 | ||||||||||||||||||||||
Current accident year non-cat loss and ALAE | 165.7 | 125.0 | 13.0 | 303.7 | ||||||||||||||||||||||
Total non-cat loss and ALAE | 184.8 | 127.8 | 11.3 | 323.9 | ||||||||||||||||||||||
Total Loss and ALAE | 191.3 | 221.2 | 23.3 | 435.8 | ||||||||||||||||||||||
ULAE | 23.0 | 18.6 | 1.2 | 42.8 | ||||||||||||||||||||||
Total Loss and LAE | 214.3 | 239.8 | 24.5 | 478.6 | ||||||||||||||||||||||
Underwriting expenses | 98.5 | 89.7 | 13.7 | 201.9 | ||||||||||||||||||||||
Net underwriting loss | $ | (1.8) | $ | (66.6) | $ | (2.4) | $ | (70.8) | ||||||||||||||||||
Cat loss and ALAE ratio | 2.1 | % | 35.5 | % | 33.4 | % | 18.4 | % | ||||||||||||||||||
Non-cat loss and ALAE ratio | ||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE ratio | 6.2 | % | 1.0 | % | (4.5) | % | 3.3 | % | ||||||||||||||||||
Current accident year non-cat loss and ALAE ratio | 53.2 | % | 47.6 | % | 36.2 | % | 49.8 | % | ||||||||||||||||||
Total non-cat loss and ALAE ratio | 59.4 | % | 48.6 | % | 31.7 | % | 53.1 | % | ||||||||||||||||||
Total Loss and ALAE ratio | 61.5 | % | 84.1 | % | 65.1 | % | 71.5 | % | ||||||||||||||||||
ULAE ratio | 7.4 | % | 7.1 | % | 3.4 | % | 7.0 | % | ||||||||||||||||||
Total Loss and LAE ratio | 68.9 | % | 91.2 | % | 68.5 | % | 78.5 | % | ||||||||||||||||||
Expense ratio | 31.7 | % | 30.0 | % | 30.0 | % | 30.8 | % | ||||||||||||||||||
Combined ratio | 100.6 | % | 121.2 | % | 98.5 | % | 109.3 | % | ||||||||||||||||||
($ in millions) | ($ in millions) | |||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2018 | Personal Auto | Homeowners | Other Personal | Total | ||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2019 | Nine months ended September 30, 2019 | Personal Auto | Homeowners | Other Personal | Total | |||||||||||||||||||||||||||||||||||||
Net written premiums | $ | 318.8 | $ | 203.0 | $ | 20.1 | $ | 541.9 | Net written premiums | $ | 324.8 | $ | 241.4 | $ | 29.0 | $ | 595.2 | |||||||||||||||||||||||||
Net earned premiums | 296.1 | 182.0 | 16.1 | 494.2 | Net earned premiums | 322.1 | 216.1 | 24.3 | 562.5 | |||||||||||||||||||||||||||||||||
Losses and LAE incurred: | Losses and LAE incurred: | |||||||||||||||||||||||||||||||||||||||||
Cat loss and ALAE | 4.8 | 38.1 | 2.2 | 45.1 | Cat loss and ALAE | 5.4 | 47.8 | 4.0 | 57.2 | |||||||||||||||||||||||||||||||||
Non-cat loss and ALAE | Non-cat loss and ALAE | |||||||||||||||||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE | (18.5 | ) | (7.2 | ) | (1.1 | ) | (26.8 | ) | Prior accident years non-cat loss and ALAE | (11.0) | 0.5 | (1.9) | (12.4) | |||||||||||||||||||||||||||||
Current accident year non-cat loss and ALAE | 193.6 | 81.9 | 8.0 | 283.5 | Current accident year non-cat loss and ALAE | 207.8 | 110.4 | 12.7 | 330.9 | |||||||||||||||||||||||||||||||||
Total non-cat loss and ALAE | 175.1 | 74.7 | 6.9 | 256.7 | Total non-cat loss and ALAE | 196.8 | 110.9 | 10.8 | 318.5 | |||||||||||||||||||||||||||||||||
Total Loss and ALAE | 179.9 | 112.8 | 9.1 | 301.8 | Total Loss and ALAE | 202.2 | 158.7 | 14.8 | 375.7 | |||||||||||||||||||||||||||||||||
ULAE | 17.7 | 12.4 | 0.6 | 30.7 | ULAE | 22.2 | 15.1 | 0.9 | 38.2 | |||||||||||||||||||||||||||||||||
Total Loss and LAE | 197.6 | 125.2 | 9.7 | 332.5 | Total Loss and LAE | 224.4 | 173.8 | 15.7 | 413.9 | |||||||||||||||||||||||||||||||||
Underwriting expenses | 92.9 | 65.9 | 7.5 | 166.3 | Underwriting expenses | 96.7 | 74.8 | 9.1 | 180.6 | |||||||||||||||||||||||||||||||||
Net underwriting gain (loss) | $ | 5.6 | $ | (9.1 | ) | $ | (1.1 | ) | $ | (4.6 | ) | Net underwriting gain (loss) | $ | 1.0 | $ | (32.5) | $ | (0.5) | $ | (32.0) | ||||||||||||||||||||||
Cat loss and ALAE ratio | 1.6 | % | 20.9 | % | 13.5 | % | 9.1 | % | Cat loss and ALAE ratio | 1.6 | % | 22.1 | % | 16.5 | % | 10.2 | % | |||||||||||||||||||||||||
Non-cat loss and ALAE ratio | Non-cat loss and ALAE ratio | |||||||||||||||||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE ratio | (6.3 | )% | (3.9 | )% | (7.1 | )% | (5.4 | )% | Prior accident years non-cat loss and ALAE ratio | (3.4) | % | 0.3 | % | (7.8) | % | (2.2) | % | |||||||||||||||||||||||||
Current accident year non-cat loss and ALAE ratio | 65.4 | % | 45.0 | % | 50.0 | % | 57.4 | % | Current accident year non-cat loss and ALAE ratio | 64.5 | % | 51.0 | % | 52.0 | % | 58.7 | % | |||||||||||||||||||||||||
Total non-cat loss and ALAE ratio | 59.1 | % | 41.1 | % | 42.9 | % | 52.0 | % | Total non-cat loss and ALAE ratio | 61.1 | % | 51.3 | % | 44.2 | % | 56.5 | % | |||||||||||||||||||||||||
Total Loss and ALAE ratio | 60.7 | % | 62.0 | % | 56.4 | % | 61.1 | % | Total Loss and ALAE ratio | 62.7 | % | 73.4 | % | 60.7 | % | 66.7 | % | |||||||||||||||||||||||||
ULAE ratio | 6.0 | % | 6.8 | % | 3.7 | % | 6.2 | % | ULAE ratio | 6.9 | % | 7.0 | % | 3.7 | % | 6.8 | % | |||||||||||||||||||||||||
Total Loss and LAE ratio | 66.7 | % | 68.8 | % | 60.1 | % | 67.3 | % | Total Loss and LAE ratio | 69.6 | % | 80.4 | % | 64.4 | % | 73.5 | % | |||||||||||||||||||||||||
Expense ratio | 29.1 | % | 32.5 | % | 37.2 | % | 30.7 | % | Expense ratio | 29.8 | % | 31.0 | % | 31.5 | % | 30.4 | % | |||||||||||||||||||||||||
Combined ratio | 95.8 | % | 101.3 | % | 97.3 | % | 98.0 | % | Combined ratio | 99.4 | % | 111.4 | % | 95.9 | % | 103.9 | % | |||||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||||||
Three months ended September 30, 2019 | Commercial Auto | Small Commercial Package | Middle Market Commercial | Workers' Comp | Farm & Ranch | Other Commercial | Total | |||||||||||||||||||||
Net written premiums | $ | 27.7 | $ | 30.0 | $ | 39.8 | $ | 23.9 | $ | 11.4 | $ | 4.6 | $ | 137.4 | ||||||||||||||
Net earned premiums | 23.8 | 29.9 | 34.9 | 21.7 | 12.4 | 4.3 | 127.0 | |||||||||||||||||||||
Losses and LAE incurred: | ||||||||||||||||||||||||||||
Cat loss and ALAE | 0.1 | 1.1 | 0.5 | — | 0.4 | — | 2.1 | |||||||||||||||||||||
Non-cat loss and ALAE | ||||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE | (1.1 | ) | (4.1 | ) | (1.2 | ) | (4.4 | ) | (0.7 | ) | (1.6 | ) | (13.1 | ) | ||||||||||||||
Current accident year non-cat loss and ALAE | 15.2 | 17.9 | 19.7 | 13.9 | 6.2 | 3.2 | 76.1 | |||||||||||||||||||||
Total non-cat loss and ALAE | 14.1 | 13.8 | 18.5 | 9.5 | 5.5 | 1.6 | 63.0 | |||||||||||||||||||||
Total Loss and ALAE | 14.2 | 14.9 | 19.0 | 9.5 | 5.9 | 1.6 | 65.1 | |||||||||||||||||||||
ULAE | 1.6 | 1.3 | 2.0 | 1.8 | 0.4 | 0.1 | 7.2 | |||||||||||||||||||||
Total Loss and LAE | 15.8 | 16.2 | 21.0 | 11.3 | 6.3 | 1.7 | 72.3 | |||||||||||||||||||||
Underwriting expenses | 11.9 | 11.7 | 15.9 | 7.2 | 4.7 | 2.1 | 53.5 | |||||||||||||||||||||
Net underwriting (loss) gain | $ | (3.9 | ) | $ | 2.0 | $ | (2.0 | ) | $ | 3.2 | $ | 1.4 | $ | 0.5 | $ | 1.2 | ||||||||||||
Cat loss and ALAE ratio | 0.5 | % | 3.7 | % | 1.6 | % | — | % | 3.2 | % | — | % | 1.7 | % | ||||||||||||||
Non-cat loss and ALAE ratio | ||||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE ratio | (4.6 | )% | (13.7 | )% | (3.6 | )% | (20.1 | )% | (5.7 | )% | (37.9 | )% | (10.4 | )% | ||||||||||||||
Current accident year non-cat loss and ALAE ratio | 63.8 | % | 60.1 | % | 56.3 | % | 64.2 | % | 50.0 | % | 75.9 | % | 60.0 | % | ||||||||||||||
Total non-cat loss and ALAE ratio | 59.2 | % | 46.4 | % | 52.7 | % | 44.1 | % | 44.3 | % | 38.0 | % | 49.6 | % | ||||||||||||||
Total Loss and ALAE ratio | 59.7 | % | 50.1 | % | 54.3 | % | 44.1 | % | 47.5 | % | 38.0 | % | 51.3 | % | ||||||||||||||
ULAE ratio | 6.7 | % | 4.2 | % | 5.7 | % | 8.3 | % | 3.2 | % | 4.1 | % | 5.7 | % | ||||||||||||||
Total Loss and LAE ratio | 66.4 | % | 54.3 | % | 60.0 | % | 52.4 | % | 50.7 | % | 42.1 | % | 57.0 | % | ||||||||||||||
Expense ratio | 43.0 | % | 39.1 | % | 40.0 | % | 30.0 | % | 41.7 | % | 42.2 | % | 38.9 | % | ||||||||||||||
Combined ratio | 109.4 | % | 93.4 | % | 100.0 | % | 82.4 | % | 92.4 | % | 84.3 | % | 95.9 | % | ||||||||||||||
($ in millions) | ||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2020 | Commercial Auto | Small Commercial Package | Middle Market Commercial | Workers' Comp | Farm & Ranch | Other Commercial | Total | |||||||||||||||||||||||||||||||||||||
Net written premiums | $ | 40.0 | $ | 31.4 | $ | 40.0 | $ | 17.4 | $ | 15.0 | $ | 5.0 | $ | 148.8 | ||||||||||||||||||||||||||||||
Net earned premiums | 35.6 | 31.4 | 40.3 | 17.5 | 14.5 | 5.1 | 144.4 | |||||||||||||||||||||||||||||||||||||
Losses and LAE incurred: | ||||||||||||||||||||||||||||||||||||||||||||
Cat loss and ALAE | 0.1 | 5.5 | 4.7 | — | 3.2 | — | 13.5 | |||||||||||||||||||||||||||||||||||||
Non-cat loss and ALAE | ||||||||||||||||||||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE | (1.2) | (7.5) | (6.3) | (7.3) | (0.6) | (3.6) | (26.5) | |||||||||||||||||||||||||||||||||||||
Current accident year non-cat loss and ALAE | 20.8 | 17.0 | 20.1 | 14.4 | 5.1 | 3.0 | 80.4 | |||||||||||||||||||||||||||||||||||||
Total non-cat loss and ALAE | 19.6 | 9.5 | 13.8 | 7.1 | 4.5 | (0.6) | 53.9 | |||||||||||||||||||||||||||||||||||||
Total Loss and ALAE | 19.7 | 15.0 | 18.5 | 7.1 | 7.7 | (0.6) | 67.4 | |||||||||||||||||||||||||||||||||||||
ULAE | 1.7 | 0.5 | 1.3 | 1.1 | 0.5 | 0.1 | 5.2 | |||||||||||||||||||||||||||||||||||||
Total Loss and LAE | 21.4 | 15.5 | 19.8 | 8.2 | 8.2 | (0.5) | 72.6 | |||||||||||||||||||||||||||||||||||||
Underwriting expenses | 13.7 | 10.9 | 16.4 | 7.8 | 6.7 | 1.9 | 57.4 | |||||||||||||||||||||||||||||||||||||
Net underwriting gain (loss) | $ | 0.5 | $ | 5.0 | $ | 4.1 | $ | 1.5 | $ | (0.4) | $ | 3.7 | $ | 14.4 | ||||||||||||||||||||||||||||||
Cat loss and ALAE ratio | 0.4 | % | 17.3 | % | 11.6 | % | — | % | 22.1 | % | — | % | 9.3 | % | ||||||||||||||||||||||||||||||
Non-cat loss and ALAE ratio | ||||||||||||||||||||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE ratio | (3.4) | % | (23.8) | % | (15.5) | % | (41.6) | % | (4.2) | % | (72.6) | % | (18.3) | % | ||||||||||||||||||||||||||||||
Current accident year non-cat loss and ALAE ratio | 58.3 | % | 54.3 | % | 49.7 | % | 82.2 | % | 35.0 | % | 60.4 | % | 55.7 | % | ||||||||||||||||||||||||||||||
Total non-cat loss and ALAE ratio | 54.9 | % | 30.5 | % | 34.2 | % | 40.6 | % | 30.8 | % | (12.2) | % | 37.4 | % | ||||||||||||||||||||||||||||||
Total Loss and ALAE ratio | 55.3 | % | 47.8 | % | 45.8 | % | 40.6 | % | 52.9 | % | (12.2) | % | 46.7 | % | ||||||||||||||||||||||||||||||
ULAE ratio | 4.8 | % | 1.5 | % | 3.3 | % | 6.4 | % | 3.4 | % | 1.9 | % | 3.6 | % | ||||||||||||||||||||||||||||||
Total Loss and LAE ratio | 60.1 | % | 49.3 | % | 49.1 | % | 47.0 | % | 56.3 | % | (10.3) | % | 50.3 | % | ||||||||||||||||||||||||||||||
Expense ratio | 34.2 | % | 34.7 | % | 41.0 | % | 45.1 | % | 45.1 | % | 38.6 | % | 38.6 | % | ||||||||||||||||||||||||||||||
Combined ratio | 94.3 | % | 84.0 | % | 90.1 | % | 92.1 | % | 101.4 | % | 28.3 | % | 88.9 | % | ||||||||||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||||||
Three months ended September 30, 2018 | Commercial Auto | Small Commercial Package | Middle Market Commercial | Workers' Comp | Farm & Ranch | Other Commercial | Total | |||||||||||||||||||||
Net written premiums | $ | 19.1 | $ | 29.1 | $ | 30.7 | $ | 24.1 | $ | 10.7 | $ | 3.9 | $ | 117.6 | ||||||||||||||
Net earned premiums | 18.8 | 30.5 | 29.4 | 21.3 | 11.3 | 3.9 | 115.2 | |||||||||||||||||||||
Losses and LAE incurred: | ||||||||||||||||||||||||||||
Cat loss and ALAE | (0.4 | ) | 2.1 | 0.5 | — | 0.8 | 0.1 | 3.1 | ||||||||||||||||||||
Non-cat loss and ALAE | ||||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE | (1.1 | ) | (1.8 | ) | (2.1 | ) | (2.5 | ) | (1.0 | ) | (1.8 | ) | (10.3 | ) | ||||||||||||||
Current accident year non-cat loss and ALAE | 11.5 | 18.5 | 18.7 | 14.3 | 6.5 | 2.3 | 71.8 | |||||||||||||||||||||
Total non-cat loss and ALAE | 10.4 | 16.7 | 16.6 | 11.8 | 5.5 | 0.5 | 61.5 | |||||||||||||||||||||
Total Loss and ALAE | 10.0 | 18.8 | 17.1 | 11.8 | 6.3 | 0.6 | 64.6 | |||||||||||||||||||||
ULAE | 0.9 | 1.8 | 1.6 | 1.8 | 0.3 | 0.2 | 6.6 | |||||||||||||||||||||
Total Loss and LAE | 10.9 | 20.6 | 18.7 | 13.6 | 6.6 | 0.8 | 71.2 | |||||||||||||||||||||
Underwriting expenses | 8.8 | 12.7 | 12.5 | 7.4 | 5.5 | 2.3 | 49.2 | |||||||||||||||||||||
Net underwriting (loss) gain | $ | (0.9 | ) | $ | (2.8 | ) | $ | (1.8 | ) | $ | 0.3 | $ | (0.8 | ) | $ | 0.8 | $ | (5.2 | ) | |||||||||
Cat loss and ALAE ratio | (1.8 | )% | 6.8 | % | 1.7 | % | — | % | 7.3 | % | 2.1 | % | 2.7 | % | ||||||||||||||
Non-cat loss and ALAE ratio | ||||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE ratio | (5.9 | )% | (5.8 | )% | (7.3 | )% | (12.0 | )% | (8.2 | )% | (44.6 | )% | (8.9 | )% | ||||||||||||||
Current accident year non-cat loss and ALAE ratio | 60.9 | % | 60.6 | % | 63.6 | % | 67.5 | % | 57.5 | % | 60.8 | % | 62.4 | % | ||||||||||||||
Total non-cat loss and ALAE ratio | 55.0 | % | 54.8 | % | 56.3 | % | 55.5 | % | 49.3 | % | 16.2 | % | 53.5 | % | ||||||||||||||
Total Loss and ALAE ratio | 53.2 | % | 61.6 | % | 58.0 | % | 55.5 | % | 56.6 | % | 18.3 | % | 56.2 | % | ||||||||||||||
ULAE ratio | 5.1 | % | 5.7 | % | 5.3 | % | 8.1 | % | 2.4 | % | 6.5 | % | 5.7 | % | ||||||||||||||
Total Loss and LAE ratio | 58.3 | % | 67.3 | % | 63.3 | % | 63.6 | % | 59.0 | % | 24.8 | % | 61.9 | % | ||||||||||||||
Expense ratio | 46.3 | % | 43.6 | % | 40.5 | % | 30.5 | % | 51.5 | % | 57.7 | % | 41.8 | % | ||||||||||||||
Combined ratio | 104.6 | % | 110.9 | % | 103.8 | % | 94.1 | % | 110.5 | % | 82.5 | % | 103.7 | % | ||||||||||||||
($ in millions) | ||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2019 | Commercial Auto | Small Commercial Package | Middle Market Commercial | Workers' Comp | Farm & Ranch | Other Commercial | Total | |||||||||||||||||||||||||||||||||||||
Net written premiums | $ | 27.7 | $ | 30.0 | $ | 39.8 | $ | 23.9 | $ | 11.4 | $ | 4.6 | $ | 137.4 | ||||||||||||||||||||||||||||||
Net earned premiums | 23.8 | 29.9 | 34.9 | 21.7 | 12.4 | 4.3 | 127.0 | |||||||||||||||||||||||||||||||||||||
Losses and LAE incurred: | ||||||||||||||||||||||||||||||||||||||||||||
Cat loss and ALAE | 0.1 | 1.1 | 0.5 | — | 0.4 | — | 2.1 | |||||||||||||||||||||||||||||||||||||
Non-cat loss and ALAE | ||||||||||||||||||||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE | (1.1) | (4.1) | (1.2) | (4.4) | (0.7) | (1.6) | (13.1) | |||||||||||||||||||||||||||||||||||||
Current accident year non-cat loss and ALAE | 15.2 | 17.9 | 19.7 | 13.9 | 6.2 | 3.2 | 76.1 | |||||||||||||||||||||||||||||||||||||
Total non-cat loss and ALAE | 14.1 | 13.8 | 18.5 | 9.5 | 5.5 | 1.6 | 63.0 | |||||||||||||||||||||||||||||||||||||
Total Loss and ALAE | 14.2 | 14.9 | 19.0 | 9.5 | 5.9 | 1.6 | 65.1 | |||||||||||||||||||||||||||||||||||||
ULAE | 1.6 | 1.3 | 2.0 | 1.8 | 0.4 | 0.1 | 7.2 | |||||||||||||||||||||||||||||||||||||
Total Loss and LAE | 15.8 | 16.2 | 21.0 | 11.3 | 6.3 | 1.7 | 72.3 | |||||||||||||||||||||||||||||||||||||
Underwriting expenses | 11.9 | 11.7 | 15.9 | 7.2 | 4.7 | 2.1 | 53.5 | |||||||||||||||||||||||||||||||||||||
Net underwriting (loss) gain | $ | (3.9) | $ | 2.0 | $ | (2.0) | $ | 3.2 | $ | 1.4 | $ | 0.5 | $ | 1.2 | ||||||||||||||||||||||||||||||
Cat loss and ALAE ratio | 0.5 | % | 3.7 | % | 1.6 | % | — | % | 3.2 | % | — | % | 1.7 | % | ||||||||||||||||||||||||||||||
Non-cat loss and ALAE ratio | ||||||||||||||||||||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE ratio | (4.6) | % | (13.7) | % | (3.6) | % | (20.1) | % | (5.7) | % | (37.9) | % | (10.4) | % | ||||||||||||||||||||||||||||||
Current accident year non-cat loss and ALAE ratio | 63.8 | % | 60.1 | % | 56.3 | % | 64.2 | % | 50.0 | % | 75.9 | % | 60.0 | % | ||||||||||||||||||||||||||||||
Total non-cat loss and ALAE ratio | 59.2 | % | 46.4 | % | 52.7 | % | 44.1 | % | 44.3 | % | 38.0 | % | 49.6 | % | ||||||||||||||||||||||||||||||
Total Loss and ALAE ratio | 59.7 | % | 50.1 | % | 54.3 | % | 44.1 | % | 47.5 | % | 38.0 | % | 51.3 | % | ||||||||||||||||||||||||||||||
ULAE ratio | 6.7 | % | 4.2 | % | 5.7 | % | 8.3 | % | 3.2 | % | 4.1 | % | 5.7 | % | ||||||||||||||||||||||||||||||
Total Loss and LAE ratio | 66.4 | % | 54.3 | % | 60.0 | % | 52.4 | % | 50.7 | % | 42.1 | % | 57.0 | % | ||||||||||||||||||||||||||||||
Expense ratio | 43.0 | % | 39.1 | % | 40.0 | % | 30.0 | % | 41.7 | % | 42.2 | % | 38.9 | % | ||||||||||||||||||||||||||||||
Combined ratio | 109.4 | % | 93.4 | % | 100.0 | % | 82.4 | % | 92.4 | % | 84.3 | % | 95.9 | % | ||||||||||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||||||
Nine months ended September 30, 2019 | Commercial Auto | Small Commercial Package | Middle Market Commercial | Workers' Comp | Farm & Ranch | Other Commercial | Total | |||||||||||||||||||||
Net written premiums | $ | 81.4 | $ | 92.0 | $ | 115.1 | $ | 58.8 | $ | 37.4 | $ | 14.1 | $ | 398.8 | ||||||||||||||
Net earned premiums | 65.3 | 88.9 | 98.1 | 60.3 | 36.2 | 12.6 | 361.4 | |||||||||||||||||||||
Losses and LAE incurred: | ||||||||||||||||||||||||||||
Cat loss and ALAE | 0.2 | 6.1 | 5.7 | — | 2.5 | — | 14.5 | |||||||||||||||||||||
Non-cat loss and ALAE | ||||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE | (3.6 | ) | (11.8 | ) | (7.2 | ) | (13.4 | ) | (1.9 | ) | (1.4 | ) | (39.3 | ) | ||||||||||||||
Current accident year non-cat loss and ALAE | 41.2 | 51.3 | 62.2 | 42.3 | 18.0 | 7.7 | 222.7 | |||||||||||||||||||||
Total non-cat loss and ALAE | 37.6 | 39.5 | 55.0 | 28.9 | 16.1 | 6.3 | 183.4 | |||||||||||||||||||||
Total Loss and ALAE | 37.8 | 45.6 | 60.7 | 28.9 | 18.6 | 6.3 | 197.9 | |||||||||||||||||||||
ULAE | 4.2 | 4.8 | 5.0 | 5.4 | 1.5 | 0.5 | 21.4 | |||||||||||||||||||||
Total Loss and LAE | 42.0 | 50.4 | 65.7 | 34.3 | 20.1 | 6.8 | 219.3 | |||||||||||||||||||||
Underwriting expenses | 33.6 | 36.0 | 46.0 | 20.2 | 17.4 | 6.0 | 159.2 | |||||||||||||||||||||
Net underwriting (loss) gain | $ | (10.3 | ) | $ | 2.5 | $ | (13.6 | ) | $ | 5.8 | $ | (1.3 | ) | $ | (0.2 | ) | $ | (17.1 | ) | |||||||||
Cat loss and ALAE ratio | 0.4 | % | 6.9 | % | 5.8 | % | — | % | 6.8 | % | — | % | 4.0 | % | ||||||||||||||
Non-cat loss and ALAE ratio | ||||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE ratio | (5.5 | )% | (13.3 | )% | (7.4 | )% | (22.1 | )% | (5.2 | )% | (11.2 | )% | (10.9 | )% | ||||||||||||||
Current accident year non-cat loss and ALAE ratio | 62.9 | % | 57.7 | % | 63.4 | % | 70.2 | % | 49.7 | % | 61.7 | % | 61.7 | % | ||||||||||||||
Total non-cat loss and ALAE ratio | 57.4 | % | 44.4 | % | 56.0 | % | 48.1 | % | 44.5 | % | 50.5 | % | 50.8 | % | ||||||||||||||
Total Loss and ALAE ratio | 57.8 | % | 51.3 | % | 61.8 | % | 48.1 | % | 51.3 | % | 50.5 | % | 54.8 | % | ||||||||||||||
ULAE ratio | 6.5 | % | 5.4 | % | 5.1 | % | 8.9 | % | 4.2 | % | 4.3 | % | 5.9 | % | ||||||||||||||
Total Loss and LAE ratio | 64.3 | % | 56.7 | % | 66.9 | % | 57.0 | % | 55.5 | % | 54.8 | % | 60.7 | % | ||||||||||||||
Expense ratio | 41.3 | % | 39.1 | % | 40.0 | % | 34.4 | % | 46.6 | % | 41.7 | % | 39.9 | % | ||||||||||||||
Combined ratio | 105.6 | % | 95.8 | % | 106.9 | % | 91.4 | % | 102.1 | % | 96.5 | % | 100.6 | % | ||||||||||||||
($ in millions) | ||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2020 | Commercial Auto | Small Commercial Package | Middle Market Commercial | Workers' Comp | Farm & Ranch | Other Commercial | Total | |||||||||||||||||||||||||||||||||||||
Net written premiums | $ | 117.8 | $ | 95.8 | $ | 126.8 | $ | 49.2 | $ | 47.3 | $ | 15.3 | $ | 452.2 | ||||||||||||||||||||||||||||||
Net earned premiums | 96.2 | 92.8 | 116.0 | 54.4 | 40.8 | 14.5 | 414.7 | |||||||||||||||||||||||||||||||||||||
Losses and LAE incurred: | ||||||||||||||||||||||||||||||||||||||||||||
Cat loss and ALAE | 1.1 | 21.0 | 35.7 | — | 8.7 | 0.2 | 66.7 | |||||||||||||||||||||||||||||||||||||
Non-cat loss and ALAE | ||||||||||||||||||||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE | (1.5) | (16.5) | (14.3) | (16.1) | (1.7) | (7.1) | (57.2) | |||||||||||||||||||||||||||||||||||||
Current accident year non-cat loss and ALAE | 52.4 | 53.3 | 69.6 | 40.6 | 15.2 | 7.3 | 238.4 | |||||||||||||||||||||||||||||||||||||
Total non-cat loss and ALAE | 50.9 | 36.8 | 55.3 | 24.5 | 13.5 | 0.2 | 181.2 | |||||||||||||||||||||||||||||||||||||
Total Loss and ALAE | 52.0 | 57.8 | 91.0 | 24.5 | 22.2 | 0.4 | 247.9 | |||||||||||||||||||||||||||||||||||||
ULAE | 4.9 | 4.2 | 4.5 | 4.5 | 1.6 | 0.4 | 20.1 | |||||||||||||||||||||||||||||||||||||
Total Loss and LAE | 56.9 | 62.0 | 95.5 | 29.0 | 23.8 | 0.8 | 268.0 | |||||||||||||||||||||||||||||||||||||
Underwriting expenses | 40.1 | 34.0 | 50.8 | 22.7 | 21.1 | 6.0 | 174.7 | |||||||||||||||||||||||||||||||||||||
Net underwriting (loss) gain | $ | (0.8) | $ | (3.2) | $ | (30.3) | $ | 2.7 | $ | (4.1) | $ | 7.7 | $ | (28.0) | ||||||||||||||||||||||||||||||
Cat loss and ALAE ratio | 1.2 | % | 22.6 | % | 30.7 | % | — | % | 21.3 | % | 1.2 | % | 16.1 | % | ||||||||||||||||||||||||||||||
Non-cat loss and ALAE ratio | ||||||||||||||||||||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE ratio | (1.5) | % | (17.8) | % | (12.3) | % | (29.6) | % | (4.1) | % | (49.3) | % | (13.8) | % | ||||||||||||||||||||||||||||||
Current accident year non-cat loss and ALAE ratio | 54.3 | % | 57.5 | % | 60.1 | % | 74.6 | % | 37.3 | % | 50.7 | % | 57.4 | % | ||||||||||||||||||||||||||||||
Total non-cat loss and ALAE ratio | 52.8 | % | 39.7 | % | 47.8 | % | 45.0 | % | 33.2 | % | 1.4 | % | 43.6 | % | ||||||||||||||||||||||||||||||
Total Loss and ALAE ratio | 54.0 | % | 62.3 | % | 78.5 | % | 45.0 | % | 54.5 | % | 2.6 | % | 59.7 | % | ||||||||||||||||||||||||||||||
ULAE ratio | 5.1 | % | 4.5 | % | 3.9 | % | 8.4 | % | 3.9 | % | 2.6 | % | 4.9 | % | ||||||||||||||||||||||||||||||
Total Loss and LAE ratio | 59.1 | % | 66.8 | % | 82.4 | % | 53.4 | % | 58.4 | % | 5.2 | % | 64.6 | % | ||||||||||||||||||||||||||||||
Expense ratio | 34.1 | % | 35.5 | % | 40.0 | % | 46.2 | % | 44.6 | % | 39.3 | % | 38.6 | % | ||||||||||||||||||||||||||||||
Combined ratio | 93.2 | % | 102.3 | % | 122.4 | % | 99.6 | % | 103.0 | % | 44.5 | % | 103.2 | % | ||||||||||||||||||||||||||||||
($ in millions) | ($ in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2018 | Commercial Auto | Small Commercial Package | Middle Market Commercial | Workers' Comp | Farm & Ranch | Other Commercial | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2019 | Nine months ended September 30, 2019 | Commercial Auto | Small Commercial Package | Middle Market Commercial | Workers' Comp | Farm & Ranch | Other Commercial | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net written premiums | $ | 59.1 | $ | 91.1 | $ | 92.6 | $ | 66.1 | $ | 34.9 | $ | 12.7 | $ | 356.5 | Net written premiums | $ | 81.4 | $ | 92.0 | $ | 115.1 | $ | 58.8 | $ | 37.4 | $ | 14.1 | $ | 398.8 | |||||||||||||||||||||||||||||||||||||||||||
Net earned premiums | 55.9 | 91.2 | 86.7 | 66.7 | 33.4 | 11.8 | 345.7 | Net earned premiums | 65.3 | 88.9 | 98.1 | 60.3 | 36.2 | 12.6 | 361.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Losses and LAE incurred: | Losses and LAE incurred: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cat loss and ALAE | 0.2 | 9.8 | 5.8 | — | 2.4 | 0.1 | 18.3 | Cat loss and ALAE | 0.2 | 6.1 | 5.7 | — | 2.5 | — | 14.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cat loss and ALAE | Non-cat loss and ALAE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE | (5.7 | ) | (6.5 | ) | (2.9 | ) | (8.4 | ) | (2.2 | ) | (3.9 | ) | (29.6 | ) | Prior accident years non-cat loss and ALAE | (3.6) | (11.8) | (7.2) | (13.4) | (1.9) | (1.4) | (39.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Current accident year non-cat loss and ALAE | 34.9 | 55.3 | 55.9 | 43.3 | 17.1 | 6.0 | 212.5 | Current accident year non-cat loss and ALAE | 41.2 | 51.3 | 62.2 | 42.3 | 18.0 | 7.7 | 222.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total non-cat loss and ALAE | 29.2 | 48.8 | 53.0 | 34.9 | 14.9 | 2.1 | 182.9 | Total non-cat loss and ALAE | 37.6 | 39.5 | 55.0 | 28.9 | 16.1 | 6.3 | 183.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Loss and ALAE | 29.4 | 58.6 | 58.8 | 34.9 | 17.3 | 2.2 | 201.2 | Total Loss and ALAE | 37.8 | 45.6 | 60.7 | 28.9 | 18.6 | 6.3 | 197.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ULAE | 3.2 | 4.8 | 4.6 | 5.6 | 1.3 | 0.8 | 20.3 | ULAE | 4.2 | 4.8 | 5.0 | 5.4 | 1.5 | 0.5 | 21.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Loss and LAE | 32.6 | 63.4 | 63.4 | 40.5 | 18.6 | 3.0 | 221.5 | Total Loss and LAE | 42.0 | 50.4 | 65.7 | 34.3 | 20.1 | 6.8 | 219.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting expenses | 26.4 | 40.4 | 36.1 | 21.8 | 15.7 | 6.1 | 146.5 | Underwriting expenses | 33.6 | 36.0 | 46.0 | 20.2 | 17.4 | 6.0 | 159.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net underwriting (loss) gain | $ | (3.1 | ) | $ | (12.6 | ) | $ | (12.8 | ) | $ | 4.4 | $ | (0.9 | ) | $ | 2.7 | $ | (22.3 | ) | Net underwriting (loss) gain | $ | (10.3) | $ | 2.5 | $ | (13.6) | $ | 5.8 | $ | (1.3) | $ | (0.2) | $ | (17.1) | ||||||||||||||||||||||||||||||||||||||
Cat loss and ALAE ratio | 0.4 | % | 10.8 | % | 6.7 | % | — | % | 7.3 | % | 0.6 | % | 5.3 | % | Cat loss and ALAE ratio | 0.4 | % | 6.9 | % | 5.8 | % | — | % | 6.8 | % | — | % | 4.0 | % | |||||||||||||||||||||||||||||||||||||||||||
Non-cat loss and ALAE ratio | Non-cat loss and ALAE ratio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prior accident years non-cat loss and ALAE ratio | (10.1 | )% | (7.1 | )% | (3.3 | )% | (12.6 | )% | (6.5 | )% | (32.9 | )% | (8.5 | )% | Prior accident years non-cat loss and ALAE ratio | (5.5) | % | (13.3) | % | (7.4) | % | (22.1) | % | (5.2) | % | (11.2) | % | (10.9) | % | |||||||||||||||||||||||||||||||||||||||||||
Current accident year non-cat loss and ALAE ratio | 62.4 | % | 60.6 | % | 64.5 | % | 64.9 | % | 51.1 | % | 51.2 | % | 61.5 | % | Current accident year non-cat loss and ALAE ratio | 62.9 | % | 57.7 | % | 63.4 | % | 70.2 | % | 49.7 | % | 61.7 | % | 61.7 | % | |||||||||||||||||||||||||||||||||||||||||||
Total non-cat loss and ALAE ratio | 52.3 | % | 53.5 | % | 61.2 | % | 52.3 | % | 44.6 | % | 18.3 | % | 53.0 | % | Total non-cat loss and ALAE ratio | 57.4 | % | 44.4 | % | 56.0 | % | 48.1 | % | 44.5 | % | 50.5 | % | 50.8 | % | |||||||||||||||||||||||||||||||||||||||||||
Total Loss and ALAE ratio | 52.7 | % | 64.3 | % | 67.9 | % | 52.3 | % | 51.9 | % | 18.9 | % | 58.3 | % | Total Loss and ALAE ratio | 57.8 | % | 51.3 | % | 61.8 | % | 48.1 | % | 51.3 | % | 50.5 | % | 54.8 | % | |||||||||||||||||||||||||||||||||||||||||||
ULAE ratio | 5.8 | % | 5.2 | % | 5.3 | % | 8.4 | % | 3.9 | % | 6.8 | % | 5.9 | % | ULAE ratio | 6.5 | % | 5.4 | % | 5.1 | % | 8.9 | % | 4.2 | % | 4.3 | % | 5.9 | % | |||||||||||||||||||||||||||||||||||||||||||
Total Loss and LAE ratio | 58.5 | % | 69.5 | % | 73.2 | % | 60.7 | % | 55.8 | % | 25.7 | % | 64.2 | % | Total Loss and LAE ratio | 64.3 | % | 56.7 | % | 66.9 | % | 57.0 | % | 55.5 | % | 54.8 | % | 60.7 | % | |||||||||||||||||||||||||||||||||||||||||||
Expense ratio | 44.7 | % | 44.3 | % | 39.0 | % | 32.9 | % | 45.0 | % | 47.9 | % | 41.1 | % | Expense ratio | 41.3 | % | 39.1 | % | 40.0 | % | 34.4 | % | 46.6 | % | 41.7 | % | 39.9 | % | |||||||||||||||||||||||||||||||||||||||||||
Combined ratio | 103.2 | % | 113.8 | % | 112.2 | % | 93.6 | % | 100.8 | % | 73.6 | % | 105.3 | % | Combined ratio | 105.6 | % | 95.8 | % | 106.9 | % | 91.4 | % | 102.1 | % | 96.5 | % | 100.6 | % | |||||||||||||||||||||||||||||||||||||||||||
($ millions) | Three months ended September 30 | Nine months ended September 30 | ($ millions) | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | $ Change | 2019 | 2018 | $ Change | 2020 | 2019 | $ Change | 2020 | 2019 | $ Change | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Redundancy)/Deficiency | (Redundancy)/Deficiency | (Favorable)/Adverse | (Favorable)/Adverse | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cat loss and ALAE: | Non-cat loss and ALAE: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Personal Insurance Segment: | Personal Insurance Segment: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Personal Auto | $ | (1.2 | ) | $ | (7.3 | ) | $ | 6.1 | $ | (11.0 | ) | $ | (18.5 | ) | $ | 7.5 | Personal Auto | $ | 8.0 | $ | (1.2) | $ | 9.2 | $ | 19.1 | $ | (11.0) | $ | 30.1 | |||||||||||||||||||||||||||||||||
Homeowners | — | (1.5 | ) | 1.5 | 0.5 | (7.2 | ) | 7.7 | Homeowners | 0.7 | — | 0.7 | 2.8 | 0.5 | 2.3 | |||||||||||||||||||||||||||||||||||||||||||||||
Other Personal | (0.9 | ) | (0.8 | ) | (0.1 | ) | (1.9 | ) | (1.1 | ) | (0.8 | ) | Other Personal | (0.6) | (0.9) | 0.3 | (1.7) | (1.9) | 0.2 | |||||||||||||||||||||||||||||||||||||||||||
Total Personal Insurance Segment | (2.1 | ) | (9.6 | ) | 7.5 | (12.4 | ) | (26.8 | ) | 14.4 | Total Personal Insurance Segment | 8.1 | (2.1) | 10.2 | 20.2 | (12.4) | 32.6 | |||||||||||||||||||||||||||||||||||||||||||||
Commercial Insurance Segment: | Commercial Insurance Segment: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Auto | (1.1 | ) | (1.1 | ) | — | (3.6 | ) | (5.7 | ) | 2.1 | Commercial Auto | (1.2) | (1.1) | (0.1) | (1.5) | (3.6) | 2.1 | |||||||||||||||||||||||||||||||||||||||||||||
Small Commercial Package | (4.1 | ) | (1.8 | ) | (2.3 | ) | (11.8 | ) | (6.5 | ) | (5.3 | ) | Small Commercial Package | (7.5) | (4.1) | (3.4) | (16.5) | (11.8) | (4.7) | |||||||||||||||||||||||||||||||||||||||||||
Middle Market Commercial | (1.2 | ) | (2.1 | ) | 0.9 | (7.2 | ) | (2.9 | ) | (4.3 | ) | Middle Market Commercial | (6.3) | (1.2) | (5.1) | (14.3) | (7.2) | (7.1) | ||||||||||||||||||||||||||||||||||||||||||||
Workers' Compensation | (4.4 | ) | (2.5 | ) | (1.9 | ) | (13.4 | ) | (8.4 | ) | (5.0 | ) | Workers' Compensation | (7.3) | (4.4) | (2.9) | (16.1) | (13.4) | (2.7) | |||||||||||||||||||||||||||||||||||||||||||
Farm & Ranch | (0.7 | ) | (1.0 | ) | 0.3 | (1.9 | ) | (2.2 | ) | 0.3 | Farm & Ranch | (0.6) | (0.7) | 0.1 | (1.7) | (1.9) | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||
Other Commercial | (1.6 | ) | (1.8 | ) | 0.2 | (1.4 | ) | (3.9 | ) | 2.5 | Other Commercial | (3.6) | (1.6) | (2.0) | (7.1) | (1.4) | (5.7) | |||||||||||||||||||||||||||||||||||||||||||||
Total Commercial Insurance Segment | (13.1 | ) | (10.3 | ) | (2.8 | ) | (39.3 | ) | (29.6 | ) | (9.7 | ) | Total Commercial Insurance Segment | (26.5) | (13.1) | (13.4) | (57.2) | (39.3) | (17.9) | |||||||||||||||||||||||||||||||||||||||||||
Specialty run-off | (0.9 | ) | 1.8 | (2.7 | ) | (2.4 | ) | 4.2 | (6.6 | ) | Specialty run-off | (0.9) | (0.9) | — | 5.2 | (2.4) | 7.6 | |||||||||||||||||||||||||||||||||||||||||||||
Cat Loss and ALAE | (1.0 | ) | 0.8 | (1.8 | ) | (0.2 | ) | 1.3 | (1.5 | ) | Cat Loss and ALAE | 11.6 | (1.0) | 12.6 | 12.8 | (0.2) | 13.0 | |||||||||||||||||||||||||||||||||||||||||||||
ULAE | (0.4 | ) | (2.0 | ) | 1.6 | (0.8 | ) | (6.7 | ) | 5.9 | ULAE | (2.3) | (0.4) | (1.9) | 1.4 | (0.8) | 2.2 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | (17.5 | ) | $ | (19.3 | ) | $ | 1.8 | $ | (55.1 | ) | $ | (57.6 | ) | $ | 2.5 | Total | $ | (10.0) | $ | (17.5) | $ | 7.5 | $ | (17.6) | $ | (55.1) | $ | 37.5 | |||||||||||||||||||||||||||||||||
($ millions) | September 30, 2019 | December 31, 2018 | $ Change | ($ millions) | September 30, 2020 | December 31, 2019 | $ Change | |||||||||||||||||||||
Personal Insurance Segment: | Personal Insurance Segment: | |||||||||||||||||||||||||||
Personal Auto | $ | 163.5 | $ | 173.2 | $ | (9.7 | ) | Personal Auto | $ | 162.4 | $ | 162.9 | $ | (0.5) | ||||||||||||||
Homeowners | 70.6 | 53.2 | 17.4 | Homeowners | 103.7 | 69.2 | 34.5 | |||||||||||||||||||||
Other Personal | 15.1 | 14.1 | 1.0 | Other Personal | 16.5 | 15.1 | 1.4 | |||||||||||||||||||||
Total Personal Insurance Segment | 249.2 | 240.5 | 8.7 | Total Personal Insurance Segment | 282.6 | 247.2 | 35.4 | |||||||||||||||||||||
Commercial Insurance Segment: | Commercial Insurance Segment: | |||||||||||||||||||||||||||
Commercial Auto | 77.4 | 78.9 | (1.5 | ) | Commercial Auto | 87.4 | 76.7 | 10.7 | ||||||||||||||||||||
Small Commercial Package | 116.9 | 120.0 | (3.1 | ) | Small Commercial Package | 108.6 | 110.5 | (1.9) | ||||||||||||||||||||
Middle Market Commercial | 153.0 | 147.2 | 5.8 | Middle Market Commercial | 160.2 | 152.8 | 7.4 | |||||||||||||||||||||
Workers’ Compensation | 194.3 | 195.4 | (1.1 | ) | Workers’ Compensation | 183.9 | 187.8 | (3.9) | ||||||||||||||||||||
Farm & Ranch | 15.6 | 12.9 | 2.7 | Farm & Ranch | 16.3 | 13.3 | 3.0 | |||||||||||||||||||||
Other Commercial | 31.8 | 27.5 | 4.3 | Other Commercial | 30.2 | 30.9 | (0.7) | |||||||||||||||||||||
Total Commercial Insurance Segment | 589.0 | 581.9 | 7.1 | Total Commercial Insurance Segment | 586.6 | 572.0 | 14.6 | |||||||||||||||||||||
Specialty run-off: | Specialty run-off: | |||||||||||||||||||||||||||
E&S Property | 24.0 | 33.1 | (9.1 | ) | E&S Property | 29.7 | 27.8 | 1.9 | ||||||||||||||||||||
E&S Casualty | 155.2 | 186.8 | (31.6 | ) | E&S Casualty | 117.9 | 145.9 | (28.0) | ||||||||||||||||||||
Programs | 68.1 | 99.0 | (30.9 | ) | Programs | 39.3 | 60.0 | (20.7) | ||||||||||||||||||||
Total Specialty run-off | 247.3 | 318.9 | (71.6 | ) | Total Specialty run-off | 186.9 | 233.7 | (46.8) | ||||||||||||||||||||
Total losses and loss expenses payable, net of reinsurance recoverable on losses and loss expenses payable | $ | 1,085.5 | $ | 1,141.3 | $ | (55.8 | ) | |||||||||||||||||||||
Total losses and loss expenses payable, net of reinsurance recoverable on losses and loss expenses payable and allowance for credit losses | Total losses and loss expenses payable, net of reinsurance recoverable on losses and loss expenses payable and allowance for credit losses | $ | 1,056.1 | $ | 1,052.9 | $ | 3.2 | |||||||||||||||||||||
($ millions) | September 30, 2020 | % of Total | December 31, 2019 | % of Total | ||||||||||||||||||||||
Cash and cash equivalents | $ | 131.4 | 4.7 | % | $ | 78.0 | 2.8 | % | ||||||||||||||||||
Fixed maturities, at fair value: | ||||||||||||||||||||||||||
Fixed maturities | 2,049.3 | 73.7 | % | 1,992.3 | 72.5 | % | ||||||||||||||||||||
Treasury inflation-protected securities | 117.0 | 4.2 | % | 135.6 | 5.0 | % | ||||||||||||||||||||
Total fixed maturities | 2,166.3 | 77.9 | % | 2,127.9 | 77.5 | % | ||||||||||||||||||||
Notes receivable from affiliate | 70.0 | 2.5 | % | 70.0 | 2.5 | % | ||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||
Large-cap securities | 120.0 | 4.3 | % | 104.4 | 3.8 | % | ||||||||||||||||||||
Mutual and exchange traded funds | 219.5 | 7.9 | % | 290.8 | 10.6 | % | ||||||||||||||||||||
Total equity securities | 339.5 | 12.2 | % | 395.2 | 14.4 | % | ||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||
International funds | 48.5 | 1.7 | % | 56.4 | 2.1 | % | ||||||||||||||||||||
Other invested assets | 14.0 | 0.5 | % | 13.3 | 0.5 | % | ||||||||||||||||||||
Total other invested assets | 62.5 | 2.2 | % | 69.7 | 2.6 | % | ||||||||||||||||||||
Other invested assets, at cost | 12.5 | 0.5 | % | 6.5 | 0.2 | % | ||||||||||||||||||||
Total portfolio | $ | 2,782.2 | 100.0 | % | $ | 2,747.3 | 100.0 | % | ||||||||||||||||||
($ millions) | September 30, 2019 | % of Total | December 31, 2018 | % of Total | ||||||||||
Cash and cash equivalents | $ | 38.3 | 1.4 | % | $ | 59.8 | 2.2 | % | ||||||
Fixed maturities, at fair value: | ||||||||||||||
Fixed maturities | 2,054.0 | 74.9 | % | 2,017.1 | 75.9 | % | ||||||||
Treasury inflation-protected securities | 135.3 | 4.9 | % | 142.4 | 5.4 | % | ||||||||
Total fixed maturities | 2,189.3 | 79.8 | % | 2,159.5 | 81.3 | % | ||||||||
Notes receivable from affiliate | 70.0 | 2.6 | % | 70.0 | 2.6 | % | ||||||||
Equity securities: | ||||||||||||||
Large-cap securities | 99.1 | 3.6 | % | 77.2 | 2.9 | % | ||||||||
Mutual and exchange traded funds | 274.2 | 10.0 | % | 237.8 | 8.9 | % | ||||||||
Total equity securities | 373.3 | 13.6 | % | 315.0 | 11.8 | % | ||||||||
Other invested assets: | ||||||||||||||
International funds | 51.7 | 1.9 | % | 38.5 | 1.5 | % | ||||||||
Other invested assets | 12.9 | 0.5 | % | 10.3 | 0.4 | % | ||||||||
Total other invested assets | 64.6 | 2.4 | % | 48.8 | 1.9 | % | ||||||||
Other invested assets, at cost | 6.5 | 0.2 | % | 5.6 | 0.2 | % | ||||||||
Total portfolio | $ | 2,742.0 | 100.0 | % | $ | 2,658.7 | 100.0 | % | ||||||
($ millions) | Amortized cost | Fair value | ($ millions) | Amortized cost | Fair value | |||||||||||||
Due in 1 year or less | $ | 55.7 | $ | 56.6 | Due in 1 year or less | $ | 119.8 | $ | 120.9 | |||||||||
Due after 1 year through 5 years | 562.7 | 569.4 | Due after 1 year through 5 years | 519.9 | 548.0 | |||||||||||||
Due after 5 years through 10 years | 239.9 | 249.7 | Due after 5 years through 10 years | 168.0 | 178.9 | |||||||||||||
Due after 10 years | 565.7 | 593.5 | Due after 10 years | 682.4 | 737.5 | |||||||||||||
U.S. government agencies mortgage-backed securities | 705.0 | 720.1 | U.S. government agencies mortgage-backed securities | 557.0 | 581.0 | |||||||||||||
Total | $ | 2,129.0 | $ | 2,189.3 | Total | $ | 2,047.1 | $ | 2,166.3 | |||||||||
($ millions) | Three months ended September 30 | Nine months ended September 30 | ($ millions) | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||
Gross investment income: | Gross investment income: | |||||||||||||||||||||||||||||||||||||
Fixed maturities | $ | 15.3 | $ | 16.4 | $ | 47.7 | $ | 49.4 | Fixed maturities | $ | 15.0 | $ | 15.3 | $ | 44.6 | $ | 47.7 | |||||||||||||||||||||
Equity securities | 3.0 | 3.0 | 8.9 | 8.6 | Equity securities | 2.1 | 3.0 | 7.8 | 8.9 | |||||||||||||||||||||||||||||
Other | 1.1 | 1.7 | 4.2 | 5.2 | Other | 0.9 | 1.1 | 2.7 | 4.2 | |||||||||||||||||||||||||||||
Total gross investment income | 19.4 | 21.1 | 60.8 | 63.2 | Total gross investment income | 18.0 | 19.4 | 55.1 | 60.8 | |||||||||||||||||||||||||||||
Less: Investment expenses | 0.1 | 0.3 | 0.4 | 1.0 | Less: Investment expenses | 0.1 | 0.1 | 0.6 | 0.4 | |||||||||||||||||||||||||||||
Net investment income | $ | 19.3 | $ | 20.8 | $ | 60.4 | $ | 62.2 | Net investment income | $ | 17.9 | $ | 19.3 | $ | 54.5 | $ | 60.4 | |||||||||||||||||||||
Average invested assets (at cost) | $ | 2,638.0 | $ | 2,692.3 | $ | 2,648.4 | $ | 2,672.1 | Average invested assets (at cost) | $ | 2,512.9 | $ | 2,638.0 | $ | 2,537.6 | $ | 2,648.4 | |||||||||||||||||||||
Annualized investment yield | 2.9 | % | 3.1 | % | 3.0 | % | 3.1 | % | Annualized investment yield | 2.8 | % | 2.9 | % | 2.9 | % | 3.0 | % | |||||||||||||||||||||
Annualized investment yield, after tax | 2.4 | % | 2.5 | % | 2.5 | % | 2.5 | % | Annualized investment yield, after tax | 2.3 | % | 2.4 | % | 2.4 | % | 2.5 | % | |||||||||||||||||||||
Net investment income, after tax | $ | 16.0 | $ | 17.0 | $ | 49.8 | $ | 50.9 | Net investment income, after tax | $ | 14.7 | $ | 16.0 | $ | 44.8 | $ | 49.8 | |||||||||||||||||||||
Effective tax rate | 9.4 | % | 18.5 | % | 17.9 | % | 18.2 | % | Effective tax rate | 17.7 | % | 9.4 | % | 17.9 | % | 17.9 | % | |||||||||||||||||||||
($ in millions) | Three months ended September 30 | Nine months ended September 30 | ($ in millions) | Three months ended September 30 | Nine months ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized gains (losses) | Proceeds received on sale | Realized gains (losses) | Proceeds received on sale | Realized gains (losses) | Proceeds received on sale | Realized gains (losses) | Proceeds received on sale | Realized gains (losses) | Proceeds received on sale | Realized gains (losses) | Proceeds received on sale | Realized gains (losses) | Proceeds received on sale | Realized gains (losses) | Proceeds received on sale | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized gains: | Realized gains: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | $ | 1.2 | $ | 50.0 | $ | — | $ | 8.8 | $ | 2.8 | $ | 248.7 | $ | 1.7 | $ | 69.7 | Fixed maturities | $ | 1.3 | $ | 27.8 | $ | 1.2 | $ | 50.0 | $ | 6.8 | $ | 192.2 | $ | 2.8 | $ | 248.7 | |||||||||||||||||||||||||||||||||||||||||||||
Equity securities | 0.2 | 4.1 | 1.0 | 7.3 | 1.7 | 14.3 | 6.0 | 83.0 | Equity securities | 4.0 | 18.9 | 0.2 | 4.1 | 6.3 | 31.1 | 1.7 | 14.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total realized gains | 1.4 | 54.1 | 1.0 | 16.1 | 4.5 | 263.0 | 7.7 | 152.7 | Total realized gains | 5.3 | 46.7 | 1.4 | 54.1 | 13.1 | 223.3 | 4.5 | 263.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized losses: | Realized losses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | Fixed maturities | (1.5) | — | — | — | (3.6) | 23.9 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | (2.0 | ) | 10.0 | — | 0.1 | (4.2 | ) | 20.1 | (0.6 | ) | 6.3 | Equity securities | (46.3) | 37.3 | (2.0) | 10.0 | (57.2) | 55.1 | (4.2) | 20.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other invested assets | — | 0.4 | — | 0.2 | — | 1.0 | — | 0.9 | Other invested assets | — | 0.3 | — | 0.4 | — | 0.9 | — | 1.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total realized losses | (2.0 | ) | 10.4 | — | 0.3 | (4.2 | ) | 21.1 | (0.6 | ) | 7.2 | Total realized losses | (47.8) | 37.6 | (2.0) | 10.4 | (60.8) | 79.9 | (4.2) | 21.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized (losses) gains on investments | $ | (0.6 | ) | $ | 64.5 | $ | 1.0 | $ | 16.4 | $ | 0.3 | $ | 284.1 | $ | 7.1 | $ | 159.9 | Net realized (losses) gains on investments | $ | (42.5) | $ | 84.3 | $ | (0.6) | $ | 64.5 | $ | (47.7) | $ | 303.2 | $ | 0.3 | $ | 284.1 | ||||||||||||||||||||||||||||||||||||||||||||
($ millions, except # of positions) | Cost or amortized cost | Gross unrealized holding gains | Number of gain positions | Gross unrealized holding losses | Number of loss positions | Fair value | ($ millions, except # of positions) | Cost or amortized cost | Gross unrealized holding gains | Gross unrealized holding losses | Fair value | |||||||||||||||||||||||||||||||||
Available-for-sale fixed maturities: | Available-for-sale fixed maturities: | |||||||||||||||||||||||||||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies | $ | 516.4 | $ | 14.8 | 40 | $ | (1.2 | ) | 25 | $ | 530.0 | U.S. treasury securities and obligations of U.S. government agencies | $ | 510.9 | $ | 48.1 | $ | — | $ | 559.0 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | 415.3 | 21.8 | 89 | — | 1 | 437.1 | Obligations of states and political subdivisions | 527.5 | 26.7 | (1.5) | 552.7 | |||||||||||||||||||||||||||||||||
Corporate securities | 492.3 | 10.9 | 58 | (1.1 | ) | 11 | 502.1 | Corporate securities | 451.7 | 21.9 | — | 473.6 | ||||||||||||||||||||||||||||||||
U.S. government agencies mortgage-backed securities | 705.0 | 18.2 | 63 | (3.1 | ) | 42 | 720.1 | U.S. government agencies mortgage-backed securities | 557.0 | 25.3 | (1.3) | 581.0 | ||||||||||||||||||||||||||||||||
Total available-for-sale fixed maturities | $ | 2,129.0 | $ | 65.7 | 250 | $ | (5.4 | ) | 79 | $ | 2,189.3 | Total available-for-sale fixed maturities | $ | 2,047.1 | $ | 122.0 | $ | (2.8) | $ | 2,166.3 | ||||||||||||||||||||||||
($ millions) | September 30, 2020 | December 31, 2019 | $ Change | ||||||||||||||
Available-for-sale investments: | |||||||||||||||||
Unrealized holding gains: | |||||||||||||||||
Fixed maturities | $ | 119.2 | $ | 47.9 | $ | 71.3 | |||||||||||
Net deferred federal income tax | (25.0) | (10.0) | (15.0) | ||||||||||||||
Unrealized gains, net of tax | $ | 94.2 | $ | 37.9 | $ | 56.3 | |||||||||||
($ millions) | September 30, 2019 | December 31, 2018 | $ Change | ||||||||
Available-for-sale investments: | |||||||||||
Unrealized holding gains (losses): | |||||||||||
Fixed maturities | $ | 60.3 | $ | (28.7 | ) | $ | 89.0 | ||||
Net deferred federal income tax | (12.6 | ) | 6.1 | (18.7 | ) | ||||||
Unrealized gains (losses), net of tax | $ | 47.7 | $ | (22.6 | ) | $ | 70.3 | ||||
($ millions) | Three months ended September 30 | Nine months ended September 30 | ($ millions) | Three months ended September 30 | Nine months ended September 30 | ||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||
Income before federal income taxes | $ | 12.7 | $ | 41.0 | $ | 66.7 | $ | 45.4 | |||||||||||||||||||||||||||||||||
Income (loss) before federal income taxes | Income (loss) before federal income taxes | $ | 14.8 | $ | 12.7 | $ | (87.6) | $ | 66.7 | ||||||||||||||||||||||||||||||||
Federal income tax expense (benefit) | Federal income tax expense (benefit) | ||||||||||||||||||||||||||||||||||||||||
Current | — | (0.1 | ) | (0.4 | ) | (1.1 | ) | Current | — | — | (0.4) | (0.4) | |||||||||||||||||||||||||||||
Deferred | 1.2 | 7.7 | 12.4 | 9.2 | Deferred | 3.2 | 1.2 | (18.5) | 12.4 | ||||||||||||||||||||||||||||||||
Total federal income tax expense | 1.2 | 7.6 | 12.0 | 8.1 | |||||||||||||||||||||||||||||||||||||
Net income | $ | 11.5 | $ | 33.4 | $ | 54.7 | $ | 37.3 | |||||||||||||||||||||||||||||||||
Total federal income tax expense (benefit) | Total federal income tax expense (benefit) | 3.2 | 1.2 | (18.9) | 12.0 | ||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | $ | 11.6 | $ | 11.5 | $ | (68.7) | $ | 54.7 | ||||||||||||||||||||||||||||||||
Exhibit No. | Description of Exhibits | |||||||||||
31.02 | ||||||||||||
32.01 | ||||||||||||
32.02 | ||||||||||||
101.INS | The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document | |||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||||||
101.DEF | Inline XBRL Taxonomy Definition Linkbase Document | |||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
State Auto Financial Corporation | |||||
Date: November | /s/ Steven E. English | ||||
Steven E. English | |||||
Chief Financial Officer | |||||
(Duly Authorized Officer and | |||||
Principal Financial Officer) |