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ý
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Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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¨
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Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Ohio
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31-1324304
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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518 East Broad Street, Columbus, Ohio
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43215-3976
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer ¨
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Accelerated filer ý
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Non-accelerated filer ¨
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Smaller reporting company ¨
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(Do not check if a smaller reporting company)
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Emerging growth company ¨
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 4.
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Item 5.
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Item 6.
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||
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($ and shares in millions, except per share amounts)
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June 30, 2017
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December 31, 2016
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||||
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(unaudited)
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||||
Assets
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||||
Fixed maturities, available-for-sale, at fair value (amortized cost $2,138.3 and $2,095.9, respectively)
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$
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2,167.1
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$
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2,109.3
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Equity securities, available-for-sale, at fair value (cost $321.5 and $323.1, respectively)
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391.4
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382.8
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|
||
Other invested assets, available-for-sale, at fair value (cost $25.6 and $25.5, respectively)
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50.6
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45.1
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||
Other invested assets
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5.6
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5.4
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|
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Notes receivable from affiliate
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70.0
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70.0
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Total investments
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2,684.7
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2,612.6
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||
Cash and cash equivalents
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48.8
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51.1
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|
||
Accrued investment income and other assets
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39.7
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40.0
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Deferred policy acquisition costs (affiliated net assumed $47.0 and $50.7, respectively)
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125.0
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129.8
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|
||
Reinsurance recoverable on losses and loss expenses payable
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2.7
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|
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3.6
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|
||
Prepaid reinsurance premiums
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6.0
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|
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6.1
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|
||
Due from affiliate
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22.9
|
|
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—
|
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Current federal income taxes
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6.6
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|
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6.7
|
|
||
Net deferred federal income taxes
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88.9
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102.1
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Property and equipment, at cost
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7.2
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7.4
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Total assets
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$
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3,032.5
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$
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2,959.4
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Liabilities and Stockholders’ Equity
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Losses and loss expenses payable (affiliated net assumed $660.5 and $630.9, respectively)
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$
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1,233.6
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$
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1,181.6
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Unearned premiums (affiliated net assumed $234.9 and $220.9, respectively)
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627.4
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617.8
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|
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Notes payable (affiliates $15.2 and $15.2, respectively)
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122.1
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122.1
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Pension and postretirement benefits (affiliated net ceded $36.4 and $40.1, respectively)
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67.6
|
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74.4
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Due to affiliate
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—
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2.4
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|
||
Other liabilities (affiliated net assumed $17.9 and $11.0, respectively)
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67.4
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69.8
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Total liabilities
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2,118.1
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2,068.1
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|
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Stockholders’ equity:
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||||
Class A Preferred stock (nonvoting), without par value. Authorized 2.5 shares; none issued
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—
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—
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Class B Preferred stock, without par value. Authorized 2.5 shares; none issued
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—
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—
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Common stock, without par value. Authorized 100.0 shares; 48.9 and 48.6 shares issued, respectively, at stated value of $2.50 per share
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122.2
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121.6
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Treasury stock, 6.8 and 6.8 shares, respectively, at cost
|
(116.7
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)
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(116.5
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)
|
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Additional paid-in capital
|
165.6
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159.9
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Accumulated other comprehensive income (affiliated net ceded $51.9 and $53.7, respectively)
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53.4
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32.5
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Retained earnings
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689.9
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693.8
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Total stockholders’ equity
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914.4
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891.3
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Total liabilities and stockholders’ equity
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$
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3,032.5
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$
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2,959.4
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($ in millions, except per share amounts)
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Three months ended June 30
|
||||||
(unaudited)
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2017
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2016
|
||||
Earned premiums (affiliated net assumed $118.1 and $117.6, respectively)
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$
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320.1
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$
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322.4
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Net investment income (affiliates $1.2 and $1.2, respectively)
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19.1
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19.1
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Net realized gains (losses) on investments:
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|
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||||
Total other-than-temporary impairment losses
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(0.8
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)
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(0.6
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)
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Other net realized investment gains
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16.6
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7.1
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Total net realized gains on investments
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15.8
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6.5
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Other income from affiliates
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0.7
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0.5
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Total revenues
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355.7
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348.5
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Losses and loss expenses (affiliated net assumed $83.4 and $86.8, respectively)
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230.4
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262.9
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Acquisition and operating expenses (affiliated net assumed $71.8 and $68.4, respectively)
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109.9
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107.2
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|
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Interest expense (affiliates $0.2 and $0.2, respectively)
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1.5
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1.4
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|
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Other expenses
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2.0
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2.1
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Total expenses
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343.8
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373.6
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|
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Income (loss) before federal income taxes
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11.9
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(25.1
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)
|
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Federal income tax expense (benefit):
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|
||||
Current
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0.2
|
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—
|
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Deferred
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3.0
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(0.5
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)
|
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Total federal income tax expense (benefit)
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3.2
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(0.5
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)
|
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Net income (loss)
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$
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8.7
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$
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(24.6
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)
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Earnings (loss) per common share:
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|
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Basic
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$
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0.21
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$
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(0.59
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)
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Diluted
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$
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0.21
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$
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(0.59
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)
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Dividends paid per common share
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$
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0.10
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$
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0.10
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($ in millions, except per share amounts)
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Six months ended June 30
|
||||||
(unaudited)
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2017
|
|
2016
|
||||
Earned premiums (affiliated net assumed $232.9 and $231.0, respectively)
|
$
|
637.4
|
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$
|
642.3
|
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Net investment income (affiliates $2.4 and $2.4, respectively)
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37.8
|
|
|
36.5
|
|
||
Net realized gains (losses) on investments:
|
|
|
|
||||
Total other-than-temporary impairment losses
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(2.9
|
)
|
|
(4.3
|
)
|
||
Other net realized investment gains
|
26.5
|
|
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12.1
|
|
||
Total net realized gains on investments
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23.6
|
|
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7.8
|
|
||
Other income from affiliates
|
1.2
|
|
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1.1
|
|
||
Total revenues
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700.0
|
|
|
687.7
|
|
||
|
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|
||||
Losses and loss expenses (affiliated net assumed $169.6 and $180.5, respectively)
|
464.4
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|
|
487.9
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|
||
Acquisition and operating expenses (affiliated net assumed $152.1 and $138.9, respectively)
|
222.1
|
|
|
214.7
|
|
||
Interest expense (affiliates $0.4 and $0.4, respectively)
|
2.9
|
|
|
2.7
|
|
||
Other expenses
|
3.9
|
|
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3.7
|
|
||
Total expenses
|
693.3
|
|
|
709.0
|
|
||
Income (loss) before federal income taxes
|
6.7
|
|
|
(21.3
|
)
|
||
Federal income tax expense:
|
|
|
|
||||
Current
|
0.1
|
|
|
—
|
|
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Deferred
|
2.0
|
|
|
0.3
|
|
||
Total federal income tax expense
|
2.1
|
|
|
0.3
|
|
||
Net income (loss)
|
$
|
4.6
|
|
|
$
|
(21.6
|
)
|
Earnings (loss) per common share:
|
|
|
|
||||
Basic
|
$
|
0.11
|
|
|
$
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(0.52
|
)
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Diluted
|
$
|
0.11
|
|
|
$
|
(0.52
|
)
|
Dividends paid per common share
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
|
|
|
|
($ in millions, except per share amounts)
|
Three months ended June 30
|
||||||
(unaudited)
|
2017
|
|
2016
|
||||
Net income (loss)
|
$
|
8.7
|
|
|
$
|
(24.6
|
)
|
Other comprehensive income, net of tax:
|
|
|
|
||||
Net unrealized holding gains on investments:
|
|
|
|
||||
Unrealized holding gains
|
23.8
|
|
|
38.2
|
|
||
Reclassification adjustments for gains realized in net income
|
(15.8
|
)
|
|
(6.5
|
)
|
||
Income tax expense
|
(2.8
|
)
|
|
(11.1
|
)
|
||
Total net unrealized holding gains on investments
|
5.2
|
|
|
20.6
|
|
||
Net unrecognized benefit plan obligations:
|
|
|
|
||||
Reclassification adjustments for amortization to statements of income:
|
|
|
|
||||
Negative prior service cost
|
(1.4
|
)
|
|
(1.4
|
)
|
||
Net actuarial loss
|
1.9
|
|
|
2.3
|
|
||
Income tax expense
|
(0.2
|
)
|
|
(0.2
|
)
|
||
Total net unrecognized benefit plan obligations
|
0.3
|
|
|
0.7
|
|
||
Other comprehensive income
|
5.5
|
|
|
21.3
|
|
||
Comprehensive income (loss)
|
$
|
14.2
|
|
|
$
|
(3.3
|
)
|
|
|
|
|
|
($ in millions, except per share amounts)
|
Six months ended June 30
|
||||||
(unaudited)
|
2017
|
|
2016
|
||||
Net income (loss)
|
$
|
4.6
|
|
|
$
|
(21.6
|
)
|
Other comprehensive income, net of tax:
|
|
|
|
||||
Net unrealized holding gains on investments:
|
|
|
|
||||
Unrealized holding gains
|
54.6
|
|
|
75.2
|
|
||
Reclassification adjustments for gains realized in net income
|
(23.6
|
)
|
|
(7.8
|
)
|
||
Income tax expense
|
(10.8
|
)
|
|
(23.6
|
)
|
||
Total net unrealized holding gains on investments
|
20.2
|
|
|
43.8
|
|
||
Net unrecognized benefit plan obligations:
|
|
|
|
||||
Reclassification adjustments for amortization to statements of income:
|
|
|
|
||||
Negative prior service cost
|
(2.8
|
)
|
|
(2.8
|
)
|
||
Net actuarial loss
|
4.0
|
|
|
4.7
|
|
||
Income tax expense
|
(0.5
|
)
|
|
(0.6
|
)
|
||
Total net unrecognized benefit plan obligations
|
0.7
|
|
|
1.3
|
|
||
Other comprehensive income
|
20.9
|
|
|
45.1
|
|
||
Comprehensive income
|
$
|
25.5
|
|
|
$
|
23.5
|
|
|
|
|
|
|
($ in millions)
|
Six months ended June 30
|
||||||
(unaudited)
|
2017
|
|
2016
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income (loss)
|
$
|
4.6
|
|
|
$
|
(21.6
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization, net
|
6.1
|
|
|
7.4
|
|
||
Share-based compensation
|
2.8
|
|
|
2.2
|
|
||
Net realized gains on investments
|
(23.6
|
)
|
|
(7.8
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Deferred policy acquisition benefits
|
4.8
|
|
|
(2.7
|
)
|
||
Accrued investment income and other assets
|
0.1
|
|
|
(0.4
|
)
|
||
Postretirement and pension benefits
|
(6.0
|
)
|
|
(3.8
|
)
|
||
Other liabilities and due to/from affiliates, net
|
(32.5
|
)
|
|
(27.8
|
)
|
||
Reinsurance recoverable on losses and loss expenses payable and prepaid reinsurance premiums
|
1.0
|
|
|
0.7
|
|
||
Losses and loss expenses payable
|
52.0
|
|
|
90.2
|
|
||
Unearned premiums
|
9.6
|
|
|
7.4
|
|
||
Deferred tax expense (benefit) on share-based awards
|
1.3
|
|
|
(0.3
|
)
|
||
Federal income taxes
|
1.2
|
|
|
1.0
|
|
||
Net cash provided by operating activities
|
21.4
|
|
|
44.5
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Purchases of fixed maturities available-for-sale
|
(244.5
|
)
|
|
(292.0
|
)
|
||
Purchases of equity securities available-for-sale
|
(69.0
|
)
|
|
(45.0
|
)
|
||
Purchases of other invested assets
|
(0.7
|
)
|
|
(0.7
|
)
|
||
Maturities, calls and pay downs of fixed maturities available-for-sale
|
94.5
|
|
|
101.2
|
|
||
Sales of fixed maturities available-for-sale
|
108.2
|
|
|
126.4
|
|
||
Sales of equity securities available-for-sale
|
91.9
|
|
|
65.0
|
|
||
Sales of other invested assets available-for-sale
|
0.5
|
|
|
0.4
|
|
||
Net cash used in investing activities
|
(19.1
|
)
|
|
(44.7
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from issuance of common stock
|
4.1
|
|
|
3.3
|
|
||
Payments to acquire treasury stock
|
(0.2
|
)
|
|
(0.2
|
)
|
||
Payment of dividends
|
(8.5
|
)
|
|
(8.3
|
)
|
||
Deferred tax expense (benefit) on share-based awards
|
—
|
|
|
0.3
|
|
||
Net cash used in financing activities
|
(4.6
|
)
|
|
(4.9
|
)
|
||
Net decrease in cash and cash equivalents
|
(2.3
|
)
|
|
(5.1
|
)
|
||
Cash and cash equivalents at beginning of period
|
51.1
|
|
|
58.1
|
|
||
Cash and cash equivalents at end of period
|
$
|
48.8
|
|
|
$
|
53.0
|
|
Supplemental disclosures:
|
|
|
|
||||
Interest paid (affiliates $0.4 and $0.4, respectively)
|
$
|
2.8
|
|
|
$
|
2.6
|
|
|
|
|
|
|
|
($ millions)
|
Cost or amortized cost
|
|
Gross unrealized holding gains
|
|
Gross unrealized holding losses
|
|
Fair value
|
||||||||
June 30, 2017
|
|||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
437.5
|
|
|
$
|
7.8
|
|
|
$
|
(4.8
|
)
|
|
$
|
440.5
|
|
Obligations of states and political subdivisions
|
613.1
|
|
|
19.4
|
|
|
(0.8
|
)
|
|
631.7
|
|
||||
Corporate securities
|
481.3
|
|
|
6.1
|
|
|
(1.2
|
)
|
|
486.2
|
|
||||
U.S. government agencies mortgage-backed securities
|
606.4
|
|
|
9.7
|
|
|
(7.4
|
)
|
|
608.7
|
|
||||
Total fixed maturities
|
2,138.3
|
|
|
43.0
|
|
|
(14.2
|
)
|
|
2,167.1
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Large-cap securities
|
80.6
|
|
|
34.1
|
|
|
(0.4
|
)
|
|
114.3
|
|
||||
Small-cap securities
|
53.0
|
|
|
19.1
|
|
|
—
|
|
|
72.1
|
|
||||
Mutual and exchange traded funds
|
187.9
|
|
|
19.7
|
|
|
(2.6
|
)
|
|
205.0
|
|
||||
Total equity securities
|
321.5
|
|
|
72.9
|
|
|
(3.0
|
)
|
|
391.4
|
|
||||
Other invested assets
|
25.6
|
|
|
25.0
|
|
|
—
|
|
|
50.6
|
|
||||
Total available-for-sale securities
|
$
|
2,485.4
|
|
|
$
|
140.9
|
|
|
$
|
(17.2
|
)
|
|
$
|
2,609.1
|
|
|
|
|
|
|
|
|
|
||||||||
($ millions)
|
Cost or amortized cost
|
|
Gross unrealized holding gains
|
|
Gross unrealized holding losses
|
|
Fair value
|
||||||||
December 31, 2016
|
|||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
401.9
|
|
|
$
|
8.9
|
|
|
$
|
(6.1
|
)
|
|
$
|
404.7
|
|
Obligations of states and political subdivisions
|
634.6
|
|
|
12.3
|
|
|
(3.2
|
)
|
|
643.7
|
|
||||
Corporate securities
|
445.7
|
|
|
6.1
|
|
|
(2.2
|
)
|
|
449.6
|
|
||||
U.S. government agencies mortgage-backed securities
|
613.7
|
|
|
8.5
|
|
|
(10.9
|
)
|
|
611.3
|
|
||||
Total fixed maturities
|
2,095.9
|
|
|
35.8
|
|
|
(22.4
|
)
|
|
2,109.3
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Large-cap securities
|
108.9
|
|
|
32.7
|
|
|
(2.6
|
)
|
|
139.0
|
|
||||
Small-cap securities
|
57.2
|
|
|
21.9
|
|
|
—
|
|
|
79.1
|
|
||||
Mutual and exchange traded funds
|
157.0
|
|
|
8.5
|
|
|
(0.8
|
)
|
|
164.7
|
|
||||
Total equity securities
|
323.1
|
|
|
63.1
|
|
|
(3.4
|
)
|
|
382.8
|
|
||||
Other invested assets
|
25.5
|
|
|
19.6
|
|
|
—
|
|
|
45.1
|
|
||||
Total available-for-sale securities
|
$
|
2,444.5
|
|
|
$
|
118.5
|
|
|
$
|
(25.8
|
)
|
|
$
|
2,537.2
|
|
|
|
|
|
|
|
|
|
|
($ 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
|
|||||||||||||||
June 30, 2017
|
||||||||||||||||||||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
262.4
|
|
|
$
|
(4.8
|
)
|
|
33
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
262.4
|
|
|
$
|
(4.8
|
)
|
|
33
|
|
Obligations of states and political subdivisions
|
68.3
|
|
|
(0.8
|
)
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
68.3
|
|
|
(0.8
|
)
|
|
9
|
|
||||||
Corporate securities
|
103.7
|
|
|
(1.0
|
)
|
|
17
|
|
|
15.9
|
|
|
(0.2
|
)
|
|
3
|
|
|
119.6
|
|
|
(1.2
|
)
|
|
20
|
|
||||||
U.S. government agencies mortgage-backed securities
|
295.5
|
|
|
(6.4
|
)
|
|
40
|
|
|
30.4
|
|
|
(1.0
|
)
|
|
13
|
|
|
325.9
|
|
|
(7.4
|
)
|
|
53
|
|
||||||
Total fixed maturities
|
729.9
|
|
|
(13.0
|
)
|
|
99
|
|
|
46.3
|
|
|
(1.2
|
)
|
|
16
|
|
|
776.2
|
|
|
(14.2
|
)
|
|
115
|
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Large-cap equity securities
|
3.9
|
|
|
(0.3
|
)
|
|
4
|
|
|
4.6
|
|
|
(0.1
|
)
|
|
2
|
|
|
8.5
|
|
|
(0.4
|
)
|
|
6
|
|
||||||
Mutual and exchange traded funds
|
52.8
|
|
|
(2.6
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52.8
|
|
|
(2.6
|
)
|
|
1
|
|
||||||
Total equity securities
|
56.7
|
|
|
(2.9
|
)
|
|
5
|
|
|
4.6
|
|
|
(0.1
|
)
|
|
2
|
|
|
61.3
|
|
|
(3.0
|
)
|
|
7
|
|
||||||
Total temporarily impaired securities
|
$
|
786.6
|
|
|
$
|
(15.9
|
)
|
|
104
|
|
|
$
|
50.9
|
|
|
$
|
(1.3
|
)
|
|
18
|
|
|
$
|
837.5
|
|
|
$
|
(17.2
|
)
|
|
122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
($ 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, 2016
|
||||||||||||||||||||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
229.1
|
|
|
$
|
(6.1
|
)
|
|
30
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
229.1
|
|
|
$
|
(6.1
|
)
|
|
30
|
|
Obligations of states and political subdivisions
|
178.9
|
|
|
(3.2
|
)
|
|
26
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
178.9
|
|
|
(3.2
|
)
|
|
26
|
|
||||||
Corporate securities
|
102.9
|
|
|
(1.4
|
)
|
|
16
|
|
|
29.4
|
|
|
(0.8
|
)
|
|
4
|
|
|
132.3
|
|
|
(2.2
|
)
|
|
20
|
|
||||||
U.S. government agencies mortgage-backed securities
|
341.7
|
|
|
(10.1
|
)
|
|
43
|
|
|
20.5
|
|
|
(0.8
|
)
|
|
11
|
|
|
362.2
|
|
|
(10.9
|
)
|
|
54
|
|
||||||
Total fixed maturities
|
852.6
|
|
|
(20.8
|
)
|
|
115
|
|
|
49.9
|
|
|
(1.6
|
)
|
|
15
|
|
|
902.5
|
|
|
(22.4
|
)
|
|
130
|
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Large-cap equity securities
|
9.1
|
|
|
(0.9
|
)
|
|
7
|
|
|
8.8
|
|
|
(1.7
|
)
|
|
5
|
|
|
17.9
|
|
|
(2.6
|
)
|
|
12
|
|
||||||
Mutual and exchange traded funds
|
29.9
|
|
|
(0.8
|
)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29.9
|
|
|
(0.8
|
)
|
|
2
|
|
||||||
Total equity securities
|
39.0
|
|
|
(1.7
|
)
|
|
9
|
|
|
8.8
|
|
|
(1.7
|
)
|
|
5
|
|
|
47.8
|
|
|
(3.4
|
)
|
|
14
|
|
||||||
Total temporarily impaired securities
|
$
|
891.6
|
|
|
$
|
(22.5
|
)
|
|
124
|
|
|
$
|
58.7
|
|
|
$
|
(3.3
|
)
|
|
20
|
|
|
$
|
950.3
|
|
|
$
|
(25.8
|
)
|
|
144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Large-cap securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1.5
|
)
|
|
$
|
(0.2
|
)
|
Small-cap securities
|
(0.8
|
)
|
|
(0.6
|
)
|
|
(1.4
|
)
|
|
(1.8
|
)
|
||||
Fixed maturities:
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.3
|
)
|
||||
Total other-than-temporary impairments
|
$
|
(0.8
|
)
|
|
$
|
(0.6
|
)
|
|
$
|
(2.9
|
)
|
|
$
|
(4.3
|
)
|
|
|
|
|
|
|
|
|
($ millions)
|
Amortized cost
|
|
Fair
value
|
||||
Due in 1 year or less
|
$
|
45.5
|
|
|
$
|
45.6
|
|
Due after 1 year through 5 years
|
558.6
|
|
|
563.8
|
|
||
Due after 5 years through 10 years
|
350.6
|
|
|
354.4
|
|
||
Due after 10 years
|
577.2
|
|
|
594.6
|
|
||
U.S. government agencies mortgage-backed securities
|
606.4
|
|
|
608.7
|
|
||
Total
|
$
|
2,138.3
|
|
|
$
|
2,167.1
|
|
|
|
|
|
|
($ millions)
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Fixed maturities
|
$
|
15.9
|
|
|
$
|
16.7
|
|
|
$
|
31.7
|
|
|
$
|
31.6
|
|
Equity securities
|
2.0
|
|
|
1.5
|
|
|
3.7
|
|
|
3.0
|
|
||||
Cash and cash equivalents, and other
|
1.5
|
|
|
1.3
|
|
|
3.0
|
|
|
2.7
|
|
||||
Investment income
|
19.4
|
|
|
19.5
|
|
|
38.4
|
|
|
37.3
|
|
||||
Investment expenses
|
0.3
|
|
|
0.4
|
|
|
0.6
|
|
|
0.8
|
|
||||
Net investment income
|
$
|
19.1
|
|
|
$
|
19.1
|
|
|
$
|
37.8
|
|
|
$
|
36.5
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Realized gains:
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
$
|
2.0
|
|
|
$
|
0.6
|
|
|
$
|
2.3
|
|
|
$
|
2.1
|
|
Equity securities
|
14.6
|
|
|
6.6
|
|
|
24.3
|
|
|
10.7
|
|
||||
Other invested assets
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
||||
Total realized gains
|
16.7
|
|
|
7.3
|
|
|
26.7
|
|
|
12.9
|
|
||||
Realized losses:
|
|
|
|
|
|
|
|
||||||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Sales
|
(0.1
|
)
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(0.8
|
)
|
||||
OTTI
|
(0.8
|
)
|
|
(0.6
|
)
|
|
(2.9
|
)
|
|
(2.0
|
)
|
||||
Fixed maturities:
|
|
|
|
|
|
|
|
||||||||
OTTI
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.3
|
)
|
||||
Total realized losses
|
(0.9
|
)
|
|
(0.8
|
)
|
|
(3.1
|
)
|
|
(5.1
|
)
|
||||
Net realized gains on investments
|
$
|
15.8
|
|
|
$
|
6.5
|
|
|
$
|
23.6
|
|
|
$
|
7.8
|
|
Change in unrealized holding gains (losses), net of tax:
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
$
|
10.0
|
|
|
$
|
29.5
|
|
|
$
|
15.4
|
|
|
$
|
65.7
|
|
Equity securities
|
(4.4
|
)
|
|
2.8
|
|
|
10.2
|
|
|
1.8
|
|
||||
Other invested assets
|
2.4
|
|
|
(0.6
|
)
|
|
5.4
|
|
|
(0.1
|
)
|
||||
Deferred federal income tax liability
|
(2.8
|
)
|
|
(11.1
|
)
|
|
(10.8
|
)
|
|
(23.6
|
)
|
||||
Change in net unrealized holding gains (losses), net of tax
|
$
|
5.2
|
|
|
$
|
20.6
|
|
|
$
|
20.2
|
|
|
$
|
43.8
|
|
|
|
|
|
|
|
|
|
|
•
|
Level 1 includes observable inputs which reflect quoted prices for identical assets or liabilities in active markets at the measurement date.
|
•
|
Level 2 includes observable inputs for assets or liabilities other than quoted prices included in Level 1, and it includes valuation techniques which use prices for similar assets and liabilities.
|
•
|
Level 3 includes unobservable inputs which reflect the reporting entity’s estimates of the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).
|
|
|
($ millions)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
June 30, 2017
|
|||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
440.5
|
|
|
$
|
—
|
|
|
$
|
440.5
|
|
|
$
|
—
|
|
Obligations of states and political subdivisions
|
631.7
|
|
|
—
|
|
|
631.7
|
|
|
—
|
|
||||
Corporate securities
|
486.2
|
|
|
—
|
|
|
486.2
|
|
|
—
|
|
||||
U.S. government agencies mortgage-backed securities
|
608.7
|
|
|
—
|
|
|
608.7
|
|
|
—
|
|
||||
Total fixed maturities
|
2,167.1
|
|
|
—
|
|
|
2,167.1
|
|
|
—
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Large-cap securities
|
114.3
|
|
|
114.3
|
|
|
—
|
|
|
—
|
|
||||
Small-cap securities
|
72.1
|
|
|
72.1
|
|
|
—
|
|
|
—
|
|
||||
Mutual and exchange traded funds
|
205.0
|
|
|
205.0
|
|
|
—
|
|
|
—
|
|
||||
Total equity securities
|
391.4
|
|
|
391.4
|
|
|
—
|
|
|
—
|
|
||||
Other invested assets
|
10.0
|
|
|
10.0
|
|
|
—
|
|
|
—
|
|
||||
Total available-for-sale investments
|
$
|
2,568.5
|
|
|
$
|
401.4
|
|
|
$
|
2,167.1
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
($ millions)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
December 31, 2016
|
|||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
404.7
|
|
|
$
|
—
|
|
|
$
|
404.7
|
|
|
$
|
—
|
|
Obligations of states and political subdivisions
|
643.7
|
|
|
—
|
|
|
643.7
|
|
|
—
|
|
||||
Corporate securities
|
449.6
|
|
|
—
|
|
|
446.1
|
|
|
3.5
|
|
||||
U.S. government agencies mortgage-backed securities
|
611.3
|
|
|
—
|
|
|
611.3
|
|
|
—
|
|
||||
Total fixed maturities
|
2,109.3
|
|
|
—
|
|
|
2,105.8
|
|
|
3.5
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Large-cap securities
|
139.0
|
|
|
139.0
|
|
|
—
|
|
|
—
|
|
||||
Small-cap securities
|
79.1
|
|
|
79.1
|
|
|
—
|
|
|
—
|
|
||||
Mutual and exchange traded funds
|
164.7
|
|
|
164.7
|
|
|
—
|
|
|
—
|
|
||||
Total equity securities
|
382.8
|
|
|
382.8
|
|
|
—
|
|
|
—
|
|
||||
Other invested assets
|
9.4
|
|
|
9.4
|
|
|
—
|
|
|
—
|
|
||||
Total available-for-sale investments
|
$
|
2,501.5
|
|
|
$
|
392.2
|
|
|
$
|
2,105.8
|
|
|
$
|
3.5
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Fixed maturities
|
||
Balance at January 1, 2017
|
$
|
3.5
|
|
Total realized gains – included in earnings
|
—
|
|
|
Total unrealized losses – included in other comprehensive income
|
—
|
|
|
Purchases
|
0.1
|
|
|
Sales
|
—
|
|
|
Transfers into Level 3
|
—
|
|
|
Transfers out of Level 3
|
—
|
|
|
Balance at March 31, 2017
|
$
|
3.6
|
|
Total realized gains – included in earnings
|
1.4
|
|
|
Total unrealized losses – included in other comprehensive income
|
—
|
|
|
Purchases
|
—
|
|
|
Sales
|
(5.0
|
)
|
|
Transfers into Level 3
|
—
|
|
|
Transfers out of Level 3
|
—
|
|
|
Balance at June 30, 2017
|
$
|
—
|
|
|
|
||
($ millions)
|
Fixed maturities
|
||
Balance at January 1, 2016
|
$
|
3.3
|
|
Total realized gains – included in earnings
|
—
|
|
|
Total unrealized gains – included in other comprehensive income
|
—
|
|
|
Purchases
|
0.2
|
|
|
Sales
|
—
|
|
|
Transfers into Level 3
|
—
|
|
|
Transfers out of Level 3
|
—
|
|
|
Balance at December 31, 2016
|
$
|
3.5
|
|
|
|
|
($ millions, except interest rates)
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||
|
Carrying value
|
|
Fair value
|
|
Interest rate
|
|
Carrying value
|
|
Fair
value
|
|
Interest rate
|
||||||||||
Notes receivable from affiliate
|
$
|
70.0
|
|
|
$
|
75.6
|
|
|
7.00
|
%
|
|
$
|
70.0
|
|
|
$
|
75.7
|
|
|
7.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions, except interest rates)
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||
|
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
|
|
|
$
|
21.1
|
|
|
1.73
|
%
|
|
$
|
21.5
|
|
|
$
|
21.0
|
|
|
1.73
|
%
|
FHLB Loan due 2033: issued $85.0, July 2013 with fixed interest
|
85.4
|
|
|
85.6
|
|
|
5.03
|
%
|
|
85.4
|
|
|
85.6
|
|
|
5.03
|
%
|
||||
Affiliate Subordinated Debentures due 2033: issued $15.5, May 2003 with variable interest
|
15.2
|
|
|
15.2
|
|
|
5.40
|
%
|
|
15.2
|
|
|
15.2
|
|
|
5.13
|
%
|
||||
Total notes payable
|
$
|
122.1
|
|
|
$
|
121.9
|
|
|
|
|
$
|
122.1
|
|
|
$
|
121.8
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
2017
|
|
2016
|
||||
Losses and loss expenses payable, at beginning of period
|
$
|
1,181.6
|
|
|
$
|
1,053.0
|
|
Less: reinsurance recoverable on losses and loss expenses payable
|
3.6
|
|
|
5.9
|
|
||
Net balance at beginning of period
|
1,178.0
|
|
|
1,047.1
|
|
||
Incurred related to:
|
|
|
|
||||
Current year
|
489.8
|
|
|
457.7
|
|
||
Prior years
|
(25.4
|
)
|
|
30.2
|
|
||
Total incurred
|
464.4
|
|
|
487.9
|
|
||
Paid related to:
|
|
|
|
||||
Current year
|
174.3
|
|
|
159.3
|
|
||
Prior years
|
237.2
|
|
|
238.6
|
|
||
Total paid
|
411.5
|
|
|
397.9
|
|
||
Net balance at end of period
|
1,230.9
|
|
|
1,137.1
|
|
||
Plus: reinsurance recoverable on losses and loss expenses payable
|
2.7
|
|
|
6.1
|
|
||
Losses and loss expenses payable, at end of period
|
$
|
1,233.6
|
|
|
$
|
1,143.2
|
|
|
|
|
|
|
($ millions)
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Premiums earned:
|
|
|
|
|
|
|
|
||||||||
Assumed from external insurers and reinsurers
|
$
|
1.3
|
|
|
$
|
1.0
|
|
|
$
|
2.4
|
|
|
$
|
2.4
|
|
Assumed under Pooling Arrangement
|
320.1
|
|
|
322.4
|
|
|
637.4
|
|
|
642.3
|
|
||||
Ceded to external insurers and reinsurers
|
(6.1
|
)
|
|
(6.5
|
)
|
|
(12.2
|
)
|
|
(13.3
|
)
|
||||
Ceded under Pooling Arrangement
|
(202.0
|
)
|
|
(204.8
|
)
|
|
(404.5
|
)
|
|
(411.3
|
)
|
||||
Net assumed premiums earned
|
$
|
113.3
|
|
|
$
|
112.1
|
|
|
$
|
223.1
|
|
|
$
|
220.1
|
|
Losses and loss expenses incurred:
|
|
|
|
|
|
|
|
||||||||
Assumed from external insurers and reinsurers
|
$
|
0.9
|
|
|
$
|
0.8
|
|
|
$
|
2.5
|
|
|
$
|
1.9
|
|
Assumed under Pooling Arrangement
|
230.8
|
|
|
263.3
|
|
|
465.2
|
|
|
488.7
|
|
||||
Ceded to external insurers and reinsurers
|
1.0
|
|
|
(0.5
|
)
|
|
(1.0
|
)
|
|
(2.4
|
)
|
||||
Ceded under Pooling Arrangement
|
(147.4
|
)
|
|
(176.5
|
)
|
|
(295.6
|
)
|
|
(308.2
|
)
|
||||
Net assumed losses and loss expenses incurred
|
$
|
85.3
|
|
|
$
|
87.1
|
|
|
$
|
171.1
|
|
|
$
|
180.0
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||
Amount at statutory rate
|
$
|
4.1
|
|
|
35.0
|
%
|
|
$
|
(8.7
|
)
|
|
35.0
|
%
|
|
$
|
2.3
|
|
|
35.0
|
%
|
|
$
|
(7.4
|
)
|
|
35.0
|
%
|
Tax-exempt interest and dividends received deduction
|
(1.5
|
)
|
|
(12.4
|
)
|
|
(1.9
|
)
|
|
7.4
|
|
|
(3.0
|
)
|
|
(45.1
|
)
|
|
(3.9
|
)
|
|
18.1
|
|
||||
Other, net
|
(0.7
|
)
|
|
(6.9
|
)
|
|
10.1
|
|
|
(40.7
|
)
|
|
1.5
|
|
|
21.0
|
|
|
11.6
|
|
|
(54.7
|
)
|
||||
Federal income tax expense (benefit) and effective rate
|
1.9
|
|
|
15.7
|
%
|
|
(0.5
|
)
|
|
1.7
|
%
|
|
0.8
|
|
|
10.9
|
%
|
|
0.3
|
|
|
(1.6
|
)%
|
||||
Deferred tax expense on share-based awards
|
1.3
|
|
|
|
|
—
|
|
|
|
|
1.3
|
|
|
|
|
—
|
|
|
|
||||||||
Federal income tax expense (benefit)
|
$
|
3.2
|
|
|
|
|
$
|
(0.5
|
)
|
|
|
|
$
|
2.1
|
|
|
|
|
$
|
0.3
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Pension
|
|
Postretirement
|
|
Pension
|
|
Postretirement
|
||||||||||||||||||||||||
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Service cost
|
$
|
1.3
|
|
|
$
|
1.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3.0
|
|
|
$
|
3.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
2.8
|
|
|
2.9
|
|
|
0.2
|
|
|
0.2
|
|
|
5.7
|
|
|
5.9
|
|
|
0.4
|
|
|
0.4
|
|
||||||||
Expected return on plan assets
|
(4.2
|
)
|
|
(3.7
|
)
|
|
—
|
|
|
—
|
|
|
(8.4
|
)
|
|
(7.4
|
)
|
|
—
|
|
|
—
|
|
||||||||
Amortization of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Negative prior service cost
|
—
|
|
|
—
|
|
|
(1.4
|
)
|
|
(1.4
|
)
|
|
—
|
|
|
—
|
|
|
(2.8
|
)
|
|
(2.8
|
)
|
||||||||
Net actuarial loss
|
1.9
|
|
|
2.3
|
|
|
—
|
|
|
—
|
|
|
3.9
|
|
|
4.6
|
|
|
0.1
|
|
|
0.1
|
|
||||||||
Net periodic cost (benefit)
|
$
|
1.8
|
|
|
$
|
3.0
|
|
|
$
|
(1.2
|
)
|
|
$
|
(1.2
|
)
|
|
$
|
4.2
|
|
|
$
|
6.2
|
|
|
$
|
(2.3
|
)
|
|
$
|
(2.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Unrealized Gains
and Losses on
Available-for-Sale
Securities
|
|
Benefit Plan Items
|
|
Total
|
|||||||
Beginning balance at April 1, 2017
|
$
|
77.8
|
|
|
$
|
(29.9
|
)
|
|
$
|
47.9
|
|
|
|
|
|
|
|
|
|||||||
Other comprehensive income before reclassifications
|
15.4
|
|
|
—
|
|
|
15.4
|
|
||||
Amounts reclassified from AOCI (a)
|
(10.2
|
)
|
|
0.3
|
|
|
(9.9
|
)
|
||||
Net current period other comprehensive (loss) income
|
5.2
|
|
|
0.3
|
|
|
5.5
|
|
||||
Ending balance at June 30, 2017
|
$
|
83.0
|
|
|
$
|
(29.6
|
)
|
|
$
|
53.4
|
|
|
|
|
|
|
|
|
|||||||
Beginning balance at April 1, 2016
|
$
|
91.7
|
|
|
$
|
(30.3
|
)
|
|
$
|
61.4
|
|
|
|
|
|
|
|
|
|||||||
Other comprehensive loss before reclassifications
|
24.9
|
|
|
—
|
|
|
24.9
|
|
||||
Amounts reclassified from AOCI (a)
|
(4.3
|
)
|
|
0.7
|
|
|
(3.6
|
)
|
||||
Net current period other comprehensive (loss) income
|
20.6
|
|
|
0.7
|
|
|
21.3
|
|
||||
Ending balance at June 30, 2016
|
$
|
112.3
|
|
|
$
|
(29.6
|
)
|
|
$
|
82.7
|
|
|
|
|
|
|
|
|
|
||||||
(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, 2017
|
$
|
62.8
|
|
|
$
|
(30.3
|
)
|
|
$
|
32.5
|
|
|
|
|
|
|
|
|
|||||||
Other comprehensive income before reclassifications
|
35.5
|
|
|
—
|
|
|
35.5
|
|
||||
Amounts reclassified from AOCI (a)
|
(15.3
|
)
|
|
0.7
|
|
|
(14.6
|
)
|
||||
Net current period other comprehensive income
|
20.2
|
|
|
0.7
|
|
|
20.9
|
|
||||
Ending balance at June 30, 2017
|
$
|
83.0
|
|
|
$
|
(29.6
|
)
|
|
$
|
53.4
|
|
|
|
|
|
|
|
|
|||||||
Beginning balance at January 1, 2016
|
$
|
68.5
|
|
|
$
|
(30.9
|
)
|
|
$
|
37.6
|
|
|
|
|
|
|
|
|
|||||||
Other comprehensive loss before reclassifications
|
48.9
|
|
|
—
|
|
|
48.9
|
|
||||
Amounts reclassified from AOCI (a)
|
(5.1
|
)
|
|
1.3
|
|
|
(3.8
|
)
|
||||
Net current period other comprehensive income
|
43.8
|
|
|
1.3
|
|
|
45.1
|
|
||||
Ending balance at June 30, 2016
|
$
|
112.3
|
|
|
$
|
(29.6
|
)
|
|
$
|
82.7
|
|
|
|
|
|
|
|
|
|
||||||
(a)
|
See separate table below for details about these reclassifications
|
|
|
($ and shares in millions, except per share amounts)
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) for basic earnings (loss) per common share
|
$
|
8.7
|
|
|
$
|
(24.6
|
)
|
|
$
|
4.6
|
|
|
$
|
(21.6
|
)
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares for basic net earnings (loss) per common share
|
42.1
|
|
|
41.5
|
|
|
42.0
|
|
|
41.4
|
|
||||
Effect of dilutive share-based awards
|
0.4
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
||||
Adjusted weighted average shares for diluted net earnings (loss) per common share
|
42.5
|
|
|
41.5
|
|
|
42.5
|
|
|
41.4
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic net earnings (loss) per common share
|
$
|
0.21
|
|
|
$
|
(0.59
|
)
|
|
$
|
0.11
|
|
|
$
|
(0.52
|
)
|
Diluted net earnings (loss) per common share
|
$
|
0.21
|
|
|
$
|
(0.59
|
)
|
|
$
|
0.11
|
|
|
$
|
(0.52
|
)
|
|
|
|
|
|
|
|
|
(shares in millions)
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Total number of antidilutive options and awards
|
0.7
|
|
|
1.6
|
|
|
0.5
|
|
|
1.7
|
|
|
|
|
|
|
|
|
|
|
•
|
Commercial Insurance Segment - commercial auto, small commercial package, middle market commercial, workers’ compensation and other commercial
|
|
($ millions)
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenue from external sources:
|
|
|
|
|
|
|
|
||||||||
Insurance segments
|
|
|
|
|
|
|
|
||||||||
Personal insurance
|
$
|
152.5
|
|
|
$
|
153.1
|
|
|
$
|
305.2
|
|
|
$
|
306.6
|
|
Commercial insurance
|
104.9
|
|
|
111.6
|
|
|
208.5
|
|
|
223.0
|
|
||||
Specialty insurance
|
62.7
|
|
|
57.7
|
|
|
123.7
|
|
|
112.7
|
|
||||
Total insurance segments
|
320.1
|
|
|
322.4
|
|
|
637.4
|
|
|
642.3
|
|
||||
Investment operations segment
|
|
|
|
|
|
|
|
||||||||
Net investment income
|
19.1
|
|
|
19.1
|
|
|
37.8
|
|
|
36.5
|
|
||||
Net realized capital gains
|
15.8
|
|
|
6.5
|
|
|
23.6
|
|
|
7.8
|
|
||||
Total investment operations segment
|
34.9
|
|
|
25.6
|
|
|
61.4
|
|
|
44.3
|
|
||||
All other
|
0.7
|
|
|
0.5
|
|
|
1.2
|
|
|
1.1
|
|
||||
Total revenue from external sources
|
355.7
|
|
|
348.5
|
|
|
700.0
|
|
|
687.7
|
|
||||
Intersegment revenue
|
1.6
|
|
|
1.5
|
|
|
3.0
|
|
|
2.9
|
|
||||
Total revenue
|
357.3
|
|
|
350.0
|
|
|
703.0
|
|
|
690.6
|
|
||||
Reconciling items:
|
|
|
|
|
|
|
|
||||||||
Eliminate intersegment revenue
|
(1.6
|
)
|
|
(1.5
|
)
|
|
(3.0
|
)
|
|
(2.9
|
)
|
||||
Total consolidated revenues
|
$
|
355.7
|
|
|
$
|
348.5
|
|
|
$
|
700.0
|
|
|
$
|
687.7
|
|
Segment income (loss) before federal income tax:
|
|
|
|
|
|
|
|
||||||||
Insurance segments SAP underwriting (loss) gain
|
|
|
|
|
|
|
|
||||||||
Personal insurance
|
$
|
(17.9
|
)
|
|
$
|
(24.9
|
)
|
|
$
|
(28.5
|
)
|
|
$
|
(20.5
|
)
|
Commercial insurance
|
0.8
|
|
|
(11.8
|
)
|
|
(4.1
|
)
|
|
(19.2
|
)
|
||||
Specialty insurance
|
(4.8
|
)
|
|
(16.3
|
)
|
|
(13.4
|
)
|
|
(25.0
|
)
|
||||
Total insurance segments (loss) gain
|
(21.9
|
)
|
|
(53.0
|
)
|
|
(46.0
|
)
|
|
(64.7
|
)
|
||||
Investment operations segment
|
|
|
|
|
|
|
|
||||||||
Net investment income
|
19.1
|
|
|
19.1
|
|
|
37.8
|
|
|
36.5
|
|
||||
Net realized capital gains
|
15.8
|
|
|
6.5
|
|
|
23.6
|
|
|
7.8
|
|
||||
Total investment operations segment
|
34.9
|
|
|
25.6
|
|
|
61.4
|
|
|
44.3
|
|
||||
All other
|
0.1
|
|
|
0.1
|
|
|
0.2
|
|
|
0.2
|
|
||||
Total segment income (loss) before tax expense
|
13.1
|
|
|
(27.3
|
)
|
|
15.6
|
|
|
(20.2
|
)
|
||||
Reconciling items:
|
|
|
|
|
|
|
|
||||||||
GAAP expense adjustments
|
1.4
|
|
|
4.6
|
|
|
(4.0
|
)
|
|
3.4
|
|
||||
Interest expense on corporate debt
|
(1.5
|
)
|
|
(1.4
|
)
|
|
(2.9
|
)
|
|
(2.7
|
)
|
||||
Corporate expenses
|
(1.1
|
)
|
|
(1.0
|
)
|
|
(2.0
|
)
|
|
(1.8
|
)
|
||||
Total reconciling items
|
(1.2
|
)
|
|
2.2
|
|
|
(8.9
|
)
|
|
(1.1
|
)
|
||||
Total consolidated income (loss) before federal income tax expense
|
$
|
11.9
|
|
|
$
|
(25.1
|
)
|
|
$
|
6.7
|
|
|
$
|
(21.3
|
)
|
|
|
|
|
|
|
|
|
|
|
•
|
Commercial Insurance Segment - commercial auto, small commercial package, middle market commercial, workers’ compensation and other commercial
|
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 June 30
|
|
Six months ended June 30
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
GAAP Basis:
|
|
|
|
|
|
|
|
||||||||
Total revenues
|
$
|
355.7
|
|
|
$
|
348.5
|
|
|
$
|
700.0
|
|
|
$
|
687.7
|
|
Income (loss) before federal income taxes
|
$
|
11.9
|
|
|
$
|
(25.1
|
)
|
|
$
|
6.7
|
|
|
$
|
(21.3
|
)
|
Net income (loss)
|
$
|
8.7
|
|
|
$
|
(24.6
|
)
|
|
$
|
4.6
|
|
|
$
|
(21.6
|
)
|
Basic earnings (loss) per share
|
$
|
0.21
|
|
|
$
|
(0.59
|
)
|
|
$
|
0.11
|
|
|
$
|
(0.52
|
)
|
Diluted earnings (loss) per share
|
$
|
0.21
|
|
|
$
|
(0.59
|
)
|
|
$
|
0.11
|
|
|
$
|
(0.52
|
)
|
Stockholders’ equity
|
$
|
914.4
|
|
|
$
|
901.4
|
|
|
|
|
|
||||
Return on average equity (LTM)
|
5.2
|
%
|
|
0.3
|
%
|
|
|
|
|
||||||
Book value per share
|
$
|
21.74
|
|
|
$
|
21.69
|
|
|
|
|
|
||||
Debt to capital ratio
|
11.8
|
%
|
|
10.0
|
%
|
|
|
|
|
||||||
Cat loss and ALAE ratio
|
7.9
|
%
|
|
13.1
|
%
|
|
9.3
|
%
|
|
8.9
|
%
|
||||
Non-cat loss and LAE ratio
|
64.0
|
%
|
|
68.4
|
%
|
|
63.6
|
%
|
|
67.1
|
%
|
||||
Loss and LAE ratio
|
71.9
|
%
|
|
81.5
|
%
|
|
72.9
|
%
|
|
76.0
|
%
|
||||
Expense ratio
|
34.3
|
%
|
|
33.2
|
%
|
|
34.8
|
%
|
|
33.4
|
%
|
||||
Combined ratio
|
106.2
|
%
|
|
114.7
|
%
|
|
107.7
|
%
|
|
109.4
|
%
|
||||
Premium written growth
|
(1.2
|
)%
|
|
1.9
|
%
|
|
(0.5
|
)%
|
|
0.6
|
%
|
||||
Investment yield
|
3.0
|
%
|
|
3.2
|
%
|
|
3.0
|
%
|
|
3.0
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
SAP Basis:
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE ratio
|
7.9
|
%
|
|
13.1
|
%
|
|
9.3
|
%
|
|
8.9
|
%
|
||||
Non-cat loss and ALAE ratio
|
58.5
|
%
|
|
62.2
|
%
|
|
57.9
|
%
|
|
60.8
|
%
|
||||
ULAE ratio
|
5.7
|
%
|
|
6.4
|
%
|
|
5.8
|
%
|
|
6.4
|
%
|
||||
Loss and LAE ratio
|
72.1
|
%
|
|
81.7
|
%
|
|
73.0
|
%
|
|
76.1
|
%
|
||||
Expense ratio
|
32.6
|
%
|
|
32.4
|
%
|
|
33.7
|
%
|
|
33.6
|
%
|
||||
Combined ratio
|
104.7
|
%
|
|
114.1
|
%
|
|
106.7
|
%
|
|
109.7
|
%
|
||||
|
|
|
|
|
|
|
|
|
Twelve months ended June 30
|
||||
|
2017
|
|
2016
|
||
Net premiums written to surplus
|
1.5
|
|
|
1.6
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
||||||||
Three months ended June 30, 2017
|
|
Personal
|
|
Commercial
|
|
Specialty
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net written premiums
|
|
$
|
161.9
|
|
|
$
|
105.7
|
|
|
$
|
73.7
|
|
|
$
|
341.3
|
|
Net earned premiums
|
|
152.5
|
|
|
104.9
|
|
|
62.7
|
|
|
320.1
|
|
||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE
|
|
14.8
|
|
|
9.7
|
|
|
0.7
|
|
|
25.2
|
|
||||
Non-cat loss and ALAE
|
|
98.5
|
|
|
48.3
|
|
|
40.5
|
|
|
187.3
|
|
||||
Total Loss and ALAE
|
|
113.3
|
|
|
58.0
|
|
|
41.2
|
|
|
212.5
|
|
||||
ULAE
|
|
9.9
|
|
|
5.4
|
|
|
3.0
|
|
|
18.3
|
|
||||
Total Loss and LAE
|
|
123.2
|
|
|
63.4
|
|
|
44.2
|
|
|
230.8
|
|
||||
Underwriting expenses
|
|
47.2
|
|
|
40.7
|
|
|
23.3
|
|
|
111.2
|
|
||||
Net underwriting (loss) gain
|
|
$
|
(17.9
|
)
|
|
$
|
0.8
|
|
|
$
|
(4.8
|
)
|
|
$
|
(21.9
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE ratio
|
|
9.7
|
%
|
|
9.3
|
%
|
|
1.0
|
%
|
|
7.9
|
%
|
||||
Non-cat loss and ALAE ratio
|
|
64.6
|
%
|
|
46.0
|
%
|
|
64.8
|
%
|
|
58.5
|
%
|
||||
Total Loss and ALAE ratio
|
|
74.3
|
%
|
|
55.3
|
%
|
|
65.8
|
%
|
|
66.4
|
%
|
||||
ULAE ratio
|
|
6.5
|
%
|
|
5.0
|
%
|
|
4.6
|
%
|
|
5.7
|
%
|
||||
Total Loss and LAE ratio
|
|
80.8
|
%
|
|
60.3
|
%
|
|
70.4
|
%
|
|
72.1
|
%
|
||||
Expense ratio
|
|
29.1
|
%
|
|
38.6
|
%
|
|
31.8
|
%
|
|
32.6
|
%
|
||||
Combined ratio
|
|
109.9
|
%
|
|
98.9
|
%
|
|
102.2
|
%
|
|
104.7
|
%
|
||||
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
||||||||
Three months ended June 30, 2016
|
|
Personal
|
|
Commercial
|
|
Specialty
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net written premiums
|
|
$
|
163.8
|
|
|
$
|
112.7
|
|
|
$
|
69.1
|
|
|
$
|
345.6
|
|
Net earned premiums
|
|
153.1
|
|
|
111.6
|
|
|
57.7
|
|
|
322.4
|
|
||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE
|
|
30.7
|
|
|
11.6
|
|
|
—
|
|
|
42.3
|
|
||||
Non-cat loss and ALAE
|
|
89.7
|
|
|
64.2
|
|
|
46.8
|
|
|
200.7
|
|
||||
Total Loss and ALAE
|
|
120.4
|
|
|
75.8
|
|
|
46.8
|
|
|
243.0
|
|
||||
ULAE
|
|
10.3
|
|
|
6.7
|
|
|
3.4
|
|
|
20.4
|
|
||||
Total Loss and LAE
|
|
130.7
|
|
|
82.5
|
|
|
50.2
|
|
|
263.4
|
|
||||
Underwriting expenses
|
|
47.3
|
|
|
40.9
|
|
|
23.8
|
|
|
112.0
|
|
||||
Net underwriting loss
|
|
$
|
(24.9
|
)
|
|
$
|
(11.8
|
)
|
|
$
|
(16.3
|
)
|
|
$
|
(53.0
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE ratio
|
|
20.1
|
%
|
|
10.3
|
%
|
|
(0.1
|
)%
|
|
13.1
|
%
|
||||
Non-cat loss and ALAE ratio
|
|
58.6
|
%
|
|
57.6
|
%
|
|
80.9
|
%
|
|
62.2
|
%
|
||||
Total Loss and ALAE ratio
|
|
78.7
|
%
|
|
67.9
|
%
|
|
80.8
|
%
|
|
75.3
|
%
|
||||
ULAE ratio
|
|
6.6
|
%
|
|
6.1
|
%
|
|
6.1
|
%
|
|
6.4
|
%
|
||||
Total Loss and LAE ratio
|
|
85.3
|
%
|
|
74.0
|
%
|
|
86.9
|
%
|
|
81.7
|
%
|
||||
Expense ratio
|
|
28.9
|
%
|
|
36.3
|
%
|
|
34.5
|
%
|
|
32.4
|
%
|
||||
Combined ratio
|
|
114.2
|
%
|
|
110.3
|
%
|
|
121.4
|
%
|
|
114.1
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
||||||||
Six months ended June 30, 2017
|
|
Personal
|
|
Commercial
|
|
Specialty
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net written premiums
|
|
$
|
303.5
|
|
|
$
|
205.9
|
|
|
$
|
138.0
|
|
|
$
|
647.4
|
|
Net earned premiums
|
|
305.2
|
|
|
208.5
|
|
|
123.7
|
|
|
637.4
|
|
||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE
|
|
39.4
|
|
|
17.2
|
|
|
2.9
|
|
|
59.5
|
|
||||
Non-cat loss and ALAE
|
|
182.3
|
|
|
103.5
|
|
|
83.0
|
|
|
368.8
|
|
||||
Total Loss and ALAE
|
|
221.7
|
|
|
120.7
|
|
|
85.9
|
|
|
428.3
|
|
||||
ULAE
|
|
20.5
|
|
|
11.4
|
|
|
5.0
|
|
|
36.9
|
|
||||
Total Loss and LAE
|
|
242.2
|
|
|
132.1
|
|
|
90.9
|
|
|
465.2
|
|
||||
Underwriting expenses
|
|
91.5
|
|
|
80.5
|
|
|
46.2
|
|
|
218.2
|
|
||||
Net underwriting loss
|
|
$
|
(28.5
|
)
|
|
$
|
(4.1
|
)
|
|
$
|
(13.4
|
)
|
|
$
|
(46.0
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE ratio
|
|
12.9
|
%
|
|
8.3
|
%
|
|
2.3
|
%
|
|
9.3
|
%
|
||||
Non-cat loss and ALAE ratio
|
|
59.7
|
%
|
|
49.6
|
%
|
|
67.2
|
%
|
|
57.9
|
%
|
||||
Total Loss and ALAE ratio
|
|
72.6
|
%
|
|
57.9
|
%
|
|
69.5
|
%
|
|
67.2
|
%
|
||||
ULAE ratio
|
|
6.8
|
%
|
|
5.4
|
%
|
|
4.0
|
%
|
|
5.8
|
%
|
||||
Total Loss and LAE ratio
|
|
79.4
|
%
|
|
63.3
|
%
|
|
73.5
|
%
|
|
73.0
|
%
|
||||
Expense ratio
|
|
30.1
|
%
|
|
39.1
|
%
|
|
33.5
|
%
|
|
33.7
|
%
|
||||
Combined ratio
|
|
109.5
|
%
|
|
102.4
|
%
|
|
107.0
|
%
|
|
106.7
|
%
|
||||
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
||||||||
Six months ended June 30, 2016
|
|
Personal
|
|
Commercial
|
|
Specialty
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net written premiums
|
|
$
|
306.1
|
|
|
$
|
214.8
|
|
|
$
|
129.5
|
|
|
$
|
650.4
|
|
Net earned premiums
|
|
306.6
|
|
|
223.0
|
|
|
112.7
|
|
|
642.3
|
|
||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE
|
|
43.2
|
|
|
13.6
|
|
|
0.5
|
|
|
57.3
|
|
||||
Non-cat loss and ALAE
|
|
170.9
|
|
|
134.7
|
|
|
84.6
|
|
|
390.2
|
|
||||
Total Loss and ALAE
|
|
214.1
|
|
|
148.3
|
|
|
85.1
|
|
|
447.5
|
|
||||
ULAE
|
|
21.8
|
|
|
13.7
|
|
|
5.8
|
|
|
41.3
|
|
||||
Total Loss and LAE
|
|
235.9
|
|
|
162.0
|
|
|
90.9
|
|
|
488.8
|
|
||||
Underwriting expenses
|
|
91.2
|
|
|
80.2
|
|
|
46.8
|
|
|
218.2
|
|
||||
Net underwriting loss
|
|
$
|
(20.5
|
)
|
|
$
|
(19.2
|
)
|
|
$
|
(25.0
|
)
|
|
$
|
(64.7
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE ratio
|
|
14.1
|
%
|
|
6.1
|
%
|
|
0.4
|
%
|
|
8.9
|
%
|
||||
Non-cat loss and ALAE ratio
|
|
55.8
|
%
|
|
60.4
|
%
|
|
75.1
|
%
|
|
60.8
|
%
|
||||
Total Loss and ALAE ratio
|
|
69.9
|
%
|
|
66.5
|
%
|
|
75.5
|
%
|
|
69.7
|
%
|
||||
ULAE ratio
|
|
7.0
|
%
|
|
6.1
|
%
|
|
5.3
|
%
|
|
6.4
|
%
|
||||
Total Loss and LAE ratio
|
|
76.9
|
%
|
|
72.6
|
%
|
|
80.8
|
%
|
|
76.1
|
%
|
||||
Expense ratio
|
|
29.8
|
%
|
|
37.3
|
%
|
|
36.2
|
%
|
|
33.6
|
%
|
||||
Combined ratio
|
|
106.7
|
%
|
|
109.9
|
%
|
|
117.0
|
%
|
|
109.7
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three months ended June 30, 2017
|
|
Personal Auto
|
|
Homeowners
|
|
Farm & Ranch
|
|
Other Personal
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net written premiums
|
|
$
|
86.2
|
|
|
$
|
59.6
|
|
|
$
|
11.5
|
|
|
$
|
4.6
|
|
|
$
|
161.9
|
|
Net earned premiums
|
|
83.7
|
|
|
54.5
|
|
|
9.6
|
|
|
4.7
|
|
|
152.5
|
|
|||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cat loss and ALAE
|
|
2.7
|
|
|
11.1
|
|
|
1.3
|
|
|
(0.3
|
)
|
|
14.8
|
|
|||||
Non-cat loss and ALAE
|
|
61.0
|
|
|
27.0
|
|
|
6.8
|
|
|
3.7
|
|
|
98.5
|
|
|||||
Total Loss and ALAE
|
|
63.7
|
|
|
38.1
|
|
|
8.1
|
|
|
3.4
|
|
|
113.3
|
|
|||||
ULAE
|
|
5.6
|
|
|
3.4
|
|
|
0.7
|
|
|
0.2
|
|
|
9.9
|
|
|||||
Total Loss and LAE
|
|
69.3
|
|
|
41.5
|
|
|
8.8
|
|
|
3.6
|
|
|
123.2
|
|
|||||
Underwriting expenses
|
|
23.0
|
|
|
18.3
|
|
|
4.2
|
|
|
1.7
|
|
|
47.2
|
|
|||||
Net underwriting loss
|
|
$
|
(8.6
|
)
|
|
$
|
(5.3
|
)
|
|
$
|
(3.4
|
)
|
|
$
|
(0.6
|
)
|
|
$
|
(17.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cat loss and ALAE ratio
|
|
3.2
|
%
|
|
20.4
|
%
|
|
14.0
|
%
|
|
(5.5
|
)%
|
|
9.7
|
%
|
|||||
Non-cat loss and ALAE ratio
|
|
72.8
|
%
|
|
49.5
|
%
|
|
70.8
|
%
|
|
78.2
|
%
|
|
64.6
|
%
|
|||||
Total Loss and ALAE ratio
|
|
76.0
|
%
|
|
69.9
|
%
|
|
84.8
|
%
|
|
72.7
|
%
|
|
74.3
|
%
|
|||||
ULAE ratio
|
|
6.8
|
%
|
|
6.2
|
%
|
|
6.5
|
%
|
|
7.1
|
%
|
|
6.5
|
%
|
|||||
Total Loss and LAE ratio
|
|
82.8
|
%
|
|
76.1
|
%
|
|
91.3
|
%
|
|
79.8
|
%
|
|
80.8
|
%
|
|||||
Expense ratio
|
|
26.7
|
%
|
|
30.7
|
%
|
|
36.0
|
%
|
|
35.2
|
%
|
|
29.1
|
%
|
|||||
Combined ratio
|
|
109.5
|
%
|
|
106.8
|
%
|
|
127.3
|
%
|
|
115.0
|
%
|
|
109.9
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three months ended June 30, 2016
|
|
Personal Auto
|
|
Homeowners
|
|
Farm & Ranch
|
|
Other Personal
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net written premiums
|
|
$
|
85.8
|
|
|
$
|
62.4
|
|
|
$
|
10.0
|
|
|
$
|
5.6
|
|
|
$
|
163.8
|
|
Net earned premiums
|
|
82.3
|
|
|
56.7
|
|
|
8.7
|
|
|
5.4
|
|
|
153.1
|
|
|||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cat loss and ALAE
|
|
4.3
|
|
|
23.8
|
|
|
2.2
|
|
|
0.4
|
|
|
30.7
|
|
|||||
Non-cat loss and ALAE
|
|
61.7
|
|
|
24.9
|
|
|
0.4
|
|
|
2.7
|
|
|
89.7
|
|
|||||
Total Loss and ALAE
|
|
66.0
|
|
|
48.7
|
|
|
2.6
|
|
|
3.1
|
|
|
120.4
|
|
|||||
ULAE
|
|
5.2
|
|
|
4.1
|
|
|
0.5
|
|
|
0.5
|
|
|
10.3
|
|
|||||
Total Loss and LAE
|
|
71.2
|
|
|
52.8
|
|
|
3.1
|
|
|
3.6
|
|
|
130.7
|
|
|||||
Underwriting expenses
|
|
22.8
|
|
|
18.9
|
|
|
3.7
|
|
|
1.9
|
|
|
47.3
|
|
|||||
Net underwriting (loss) gain
|
|
$
|
(11.7
|
)
|
|
$
|
(15.0
|
)
|
|
$
|
1.9
|
|
|
$
|
(0.1
|
)
|
|
$
|
(24.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cat loss and ALAE ratio
|
|
5.2
|
%
|
|
42.0
|
%
|
|
25.3
|
%
|
|
8.2
|
%
|
|
20.1
|
%
|
|||||
Non-cat loss and ALAE ratio
|
|
75.0
|
%
|
|
43.8
|
%
|
|
5.1
|
%
|
|
51.5
|
%
|
|
58.6
|
%
|
|||||
Total Loss and ALAE ratio
|
|
80.2
|
%
|
|
85.8
|
%
|
|
30.4
|
%
|
|
59.7
|
%
|
|
78.7
|
%
|
|||||
ULAE ratio
|
|
6.3
|
%
|
|
7.3
|
%
|
|
5.2
|
%
|
|
6.7
|
%
|
|
6.6
|
%
|
|||||
Total Loss and LAE ratio
|
|
86.5
|
%
|
|
93.1
|
%
|
|
35.6
|
%
|
|
66.4
|
%
|
|
85.3
|
%
|
|||||
Expense ratio
|
|
26.6
|
%
|
|
30.2
|
%
|
|
36.4
|
%
|
|
35.4
|
%
|
|
28.9
|
%
|
|||||
Combined ratio
|
|
113.1
|
%
|
|
123.3
|
%
|
|
72.0
|
%
|
|
101.8
|
%
|
|
114.2
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six months ended June 30, 2017
|
|
Personal Auto
|
|
Homeowners
|
|
Farm & Ranch
|
|
Other Personal
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net written premiums
|
|
$
|
168.5
|
|
|
$
|
104.8
|
|
|
$
|
21.4
|
|
|
$
|
8.8
|
|
|
$
|
303.5
|
|
Net earned premiums
|
|
166.6
|
|
|
110.0
|
|
|
19.0
|
|
|
9.6
|
|
|
305.2
|
|
|||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cat loss and ALAE
|
|
5.9
|
|
|
29.1
|
|
|
3.7
|
|
|
0.7
|
|
|
39.4
|
|
|||||
Non-cat loss and ALAE
|
|
116.8
|
|
|
49.9
|
|
|
10.3
|
|
|
5.3
|
|
|
182.3
|
|
|||||
Total Loss and ALAE
|
|
122.7
|
|
|
79.0
|
|
|
14.0
|
|
|
6.0
|
|
|
221.7
|
|
|||||
ULAE
|
|
10.3
|
|
|
8.1
|
|
|
1.4
|
|
|
0.7
|
|
|
20.5
|
|
|||||
Total Loss and LAE
|
|
133.0
|
|
|
87.1
|
|
|
15.4
|
|
|
6.7
|
|
|
242.2
|
|
|||||
Underwriting expenses
|
|
46.6
|
|
|
33.8
|
|
|
7.8
|
|
|
3.3
|
|
|
91.5
|
|
|||||
Net underwriting loss
|
|
$
|
(13.0
|
)
|
|
$
|
(10.9
|
)
|
|
$
|
(4.2
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
(28.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cat loss and ALAE ratio
|
|
3.5
|
%
|
|
26.5
|
%
|
|
19.7
|
%
|
|
7.0
|
%
|
|
12.9
|
%
|
|||||
Non-cat loss and ALAE ratio
|
|
70.1
|
%
|
|
45.3
|
%
|
|
54.3
|
%
|
|
55.5
|
%
|
|
59.7
|
%
|
|||||
Total Loss and ALAE ratio
|
|
73.6
|
%
|
|
71.8
|
%
|
|
74.0
|
%
|
|
62.5
|
%
|
|
72.6
|
%
|
|||||
ULAE ratio
|
|
6.3
|
%
|
|
7.4
|
%
|
|
6.8
|
%
|
|
8.1
|
%
|
|
6.8
|
%
|
|||||
Total Loss and LAE ratio
|
|
79.9
|
%
|
|
79.2
|
%
|
|
80.8
|
%
|
|
70.6
|
%
|
|
79.4
|
%
|
|||||
Expense ratio
|
|
27.7
|
%
|
|
32.2
|
%
|
|
36.3
|
%
|
|
36.8
|
%
|
|
30.1
|
%
|
|||||
Combined ratio
|
|
107.6
|
%
|
|
111.4
|
%
|
|
117.1
|
%
|
|
107.4
|
%
|
|
109.5
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Six months ended June 30, 2016
|
|
Personal Auto
|
|
Homeowners
|
|
Farm & Ranch
|
|
Other Personal
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net written premiums
|
|
$
|
166.3
|
|
|
$
|
110.5
|
|
|
$
|
19.0
|
|
|
$
|
10.3
|
|
|
$
|
306.1
|
|
Net earned premiums
|
|
164.6
|
|
|
114.0
|
|
|
17.3
|
|
|
10.7
|
|
|
306.6
|
|
|||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cat loss and ALAE
|
|
5.6
|
|
|
34.4
|
|
|
2.6
|
|
|
0.6
|
|
|
43.2
|
|
|||||
Non-cat loss and ALAE
|
|
117.7
|
|
|
43.7
|
|
|
3.7
|
|
|
5.8
|
|
|
170.9
|
|
|||||
Total Loss and ALAE
|
|
123.3
|
|
|
78.1
|
|
|
6.3
|
|
|
6.4
|
|
|
214.1
|
|
|||||
ULAE
|
|
11.5
|
|
|
8.4
|
|
|
1.0
|
|
|
0.9
|
|
|
21.8
|
|
|||||
Total Loss and LAE
|
|
134.8
|
|
|
86.5
|
|
|
7.3
|
|
|
7.3
|
|
|
235.9
|
|
|||||
Underwriting expenses
|
|
45.2
|
|
|
35.2
|
|
|
6.9
|
|
|
3.9
|
|
|
91.2
|
|
|||||
Net underwriting (loss) gain
|
|
$
|
(15.4
|
)
|
|
$
|
(7.7
|
)
|
|
$
|
3.1
|
|
|
$
|
(0.5
|
)
|
|
$
|
(20.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cat loss and ALAE ratio
|
|
3.4
|
%
|
|
30.2
|
%
|
|
15.0
|
%
|
|
5.8
|
%
|
|
14.1
|
%
|
|||||
Non-cat loss and ALAE ratio
|
|
71.5
|
%
|
|
38.3
|
%
|
|
21.7
|
%
|
|
54.9
|
%
|
|
55.8
|
%
|
|||||
Total Loss and ALAE ratio
|
|
74.9
|
%
|
|
68.5
|
%
|
|
36.7
|
%
|
|
60.7
|
%
|
|
69.9
|
%
|
|||||
ULAE ratio
|
|
6.9
|
%
|
|
7.4
|
%
|
|
5.6
|
%
|
|
7.1
|
%
|
|
7.0
|
%
|
|||||
Total Loss and LAE ratio
|
|
81.8
|
%
|
|
75.9
|
%
|
|
42.3
|
%
|
|
67.8
|
%
|
|
76.9
|
%
|
|||||
Expense ratio
|
|
27.2
|
%
|
|
31.8
|
%
|
|
36.4
|
%
|
|
37.6
|
%
|
|
29.8
|
%
|
|||||
Combined ratio
|
|
109.0
|
%
|
|
107.7
|
%
|
|
78.7
|
%
|
|
105.4
|
%
|
|
106.7
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Three months ended June 30, 2017
|
|
Commercial Auto
|
|
Small Commercial Package
|
|
Middle Market Commercial
|
|
Workers' Comp
|
|
Other Commercial
|
|
Total
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net written premiums
|
|
$
|
19.9
|
|
|
$
|
31.8
|
|
|
$
|
30.6
|
|
|
$
|
19.6
|
|
|
3.8
|
|
|
$
|
105.7
|
|
Net earned premiums
|
|
19.3
|
|
|
31.9
|
|
|
27.5
|
|
|
22.8
|
|
|
3.4
|
|
|
104.9
|
|
|||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cat loss and ALAE
|
|
0.3
|
|
|
5.4
|
|
|
4.0
|
|
|
—
|
|
|
—
|
|
|
9.7
|
|
|||||
Non-cat loss and ALAE
|
|
10.5
|
|
|
15.9
|
|
|
8.2
|
|
|
13.0
|
|
|
0.7
|
|
|
48.3
|
|
|||||
Total Loss and ALAE
|
|
10.8
|
|
|
21.3
|
|
|
12.2
|
|
|
13.0
|
|
|
0.7
|
|
|
58.0
|
|
|||||
ULAE
|
|
1.0
|
|
|
1.7
|
|
|
1.0
|
|
|
1.4
|
|
|
0.3
|
|
|
5.4
|
|
|||||
Total Loss and LAE
|
|
11.8
|
|
|
23.0
|
|
|
13.2
|
|
|
14.4
|
|
|
1.0
|
|
|
63.4
|
|
|||||
Underwriting expenses
|
|
8.0
|
|
|
13.5
|
|
|
10.7
|
|
|
6.7
|
|
|
1.8
|
|
|
40.7
|
|
|||||
Net underwriting (loss) gain
|
|
$
|
(0.5
|
)
|
|
$
|
(4.6
|
)
|
|
$
|
3.6
|
|
|
$
|
1.7
|
|
|
0.6
|
|
|
$
|
0.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cat loss and ALAE ratio
|
|
1.6
|
%
|
|
16.9
|
%
|
|
14.6
|
%
|
|
—
|
%
|
|
0.3
|
%
|
|
9.3
|
%
|
|||||
Non-cat loss and ALAE ratio
|
|
54.3
|
%
|
|
49.5
|
%
|
|
29.7
|
%
|
|
57.1
|
%
|
|
22.5
|
%
|
|
46.0
|
%
|
|||||
Total Loss and ALAE ratio
|
|
55.9
|
%
|
|
66.4
|
%
|
|
44.3
|
%
|
|
57.1
|
%
|
|
22.8
|
%
|
|
55.3
|
%
|
|||||
ULAE ratio
|
|
5.1
|
%
|
|
5.5
|
%
|
|
3.9
|
%
|
|
6.0
|
%
|
|
4.8
|
%
|
|
5.0
|
%
|
|||||
Total Loss and LAE ratio
|
|
61.0
|
%
|
|
71.9
|
%
|
|
48.2
|
%
|
|
63.1
|
%
|
|
27.6
|
%
|
|
60.3
|
%
|
|||||
Expense ratio
|
|
40.1
|
%
|
|
42.6
|
%
|
|
35.1
|
%
|
|
33.9
|
%
|
|
50.6
|
%
|
|
38.6
|
%
|
|||||
Combined ratio
|
|
101.1
|
%
|
|
114.5
|
%
|
|
83.3
|
%
|
|
97.0
|
%
|
|
78.2
|
%
|
|
98.9
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Three months ended June 30, 2016
|
|
Commercial Auto
|
|
Small Commercial Package
|
|
Middle Market Commercial
|
|
Workers' Comp
|
|
Other Commercial
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net written premiums
|
|
$
|
21.9
|
|
|
$
|
32.0
|
|
|
$
|
30.8
|
|
|
$
|
23.4
|
|
|
$
|
4.6
|
|
|
$
|
112.7
|
|
Net earned premiums
|
|
23.0
|
|
|
31.9
|
|
|
27.7
|
|
|
24.7
|
|
|
4.3
|
|
|
111.6
|
|
||||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cat loss and ALAE
|
|
0.7
|
|
|
5.0
|
|
|
5.9
|
|
|
—
|
|
|
—
|
|
|
11.6
|
|
||||||
Non-cat loss and ALAE
|
|
21.4
|
|
|
14.7
|
|
|
10.1
|
|
|
15.4
|
|
|
2.6
|
|
|
64.2
|
|
||||||
Total Loss and ALAE
|
|
22.1
|
|
|
19.7
|
|
|
16.0
|
|
|
15.4
|
|
|
2.6
|
|
|
75.8
|
|
||||||
ULAE
|
|
1.3
|
|
|
1.8
|
|
|
1.4
|
|
|
1.9
|
|
|
0.3
|
|
|
6.7
|
|
||||||
Total Loss and LAE
|
|
23.4
|
|
|
21.5
|
|
|
17.4
|
|
|
17.3
|
|
|
2.9
|
|
|
82.5
|
|
||||||
Underwriting expenses
|
|
8.0
|
|
|
13.2
|
|
|
11.3
|
|
|
6.5
|
|
|
1.9
|
|
|
40.9
|
|
||||||
Net underwriting (loss) gain
|
|
$
|
(8.4
|
)
|
|
$
|
(2.8
|
)
|
|
$
|
(1.0
|
)
|
|
$
|
0.9
|
|
|
$
|
(0.5
|
)
|
|
$
|
(11.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cat loss and ALAE ratio
|
|
3.1
|
%
|
|
15.6
|
%
|
|
21.2
|
%
|
|
—
|
%
|
|
—
|
%
|
|
10.3
|
%
|
||||||
Non-cat loss and ALAE ratio
|
|
93.1
|
%
|
|
46.0
|
%
|
|
36.5
|
%
|
|
62.2
|
%
|
|
61.7
|
%
|
|
57.6
|
%
|
||||||
Total Loss and ALAE ratio
|
|
96.2
|
%
|
|
61.6
|
%
|
|
57.7
|
%
|
|
62.2
|
%
|
|
61.7
|
%
|
|
67.9
|
%
|
||||||
ULAE ratio
|
|
5.9
|
%
|
|
5.7
|
%
|
|
5.0
|
%
|
|
7.7
|
%
|
|
7.1
|
%
|
|
6.1
|
%
|
||||||
Total Loss and LAE ratio
|
|
102.1
|
%
|
|
67.3
|
%
|
|
62.7
|
%
|
|
69.9
|
%
|
|
68.8
|
%
|
|
74.0
|
%
|
||||||
Expense ratio
|
|
36.5
|
%
|
|
41.3
|
%
|
|
36.6
|
%
|
|
28.0
|
%
|
|
41.1
|
%
|
|
36.3
|
%
|
||||||
Combined ratio
|
|
138.6
|
%
|
|
108.6
|
%
|
|
99.3
|
%
|
|
97.9
|
%
|
|
109.9
|
%
|
|
110.3
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Six months ended June 30, 2017
|
|
Commercial Auto
|
|
Small Commercial Package
|
|
Middle Market Commercial
|
|
Workers' Comp
|
|
Other Commercial
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net written premiums
|
|
$
|
38.3
|
|
|
$
|
62.3
|
|
|
$
|
56.4
|
|
|
$
|
41.3
|
|
|
$
|
7.6
|
|
|
$
|
205.9
|
|
Net earned premiums
|
|
38.8
|
|
|
63.2
|
|
|
54.5
|
|
|
44.3
|
|
|
7.7
|
|
|
208.5
|
|
||||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cat loss and ALAE
|
|
0.6
|
|
|
9.5
|
|
|
7.1
|
|
|
—
|
|
|
—
|
|
|
17.2
|
|
||||||
Non-cat loss and ALAE
|
|
23.4
|
|
|
29.6
|
|
|
25.2
|
|
|
25.7
|
|
|
(0.4
|
)
|
|
103.5
|
|
||||||
Total Loss and ALAE
|
|
24.0
|
|
|
39.1
|
|
|
32.3
|
|
|
25.7
|
|
|
(0.4
|
)
|
|
120.7
|
|
||||||
ULAE
|
|
2.1
|
|
|
2.6
|
|
|
2.6
|
|
|
3.6
|
|
|
0.5
|
|
|
11.4
|
|
||||||
Total Loss and LAE
|
|
26.1
|
|
|
41.7
|
|
|
34.9
|
|
|
29.3
|
|
|
0.1
|
|
|
132.1
|
|
||||||
Underwriting expenses
|
|
15.6
|
|
|
26.8
|
|
|
20.7
|
|
|
13.6
|
|
|
3.8
|
|
|
80.5
|
|
||||||
Net underwriting (loss) gain
|
|
$
|
(2.9
|
)
|
|
$
|
(5.3
|
)
|
|
$
|
(1.1
|
)
|
|
$
|
1.4
|
|
|
$
|
3.8
|
|
|
$
|
(4.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cat loss and ALAE ratio
|
|
1.6
|
%
|
|
15.0
|
%
|
|
13.1
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
8.3
|
%
|
||||||
Non-cat loss and ALAE ratio
|
|
60.2
|
%
|
|
46.8
|
%
|
|
46.3
|
%
|
|
58.0
|
%
|
|
(4.4
|
)%
|
|
49.6
|
%
|
||||||
Total Loss and ALAE ratio
|
|
61.8
|
%
|
|
61.8
|
%
|
|
59.4
|
%
|
|
58.0
|
%
|
|
(4.3
|
)%
|
|
57.9
|
%
|
||||||
ULAE ratio
|
|
5.6
|
%
|
|
4.1
|
%
|
|
4.8
|
%
|
|
8.1
|
%
|
|
4.8
|
%
|
|
5.4
|
%
|
||||||
Total Loss and LAE ratio
|
|
67.4
|
%
|
|
65.9
|
%
|
|
64.2
|
%
|
|
66.1
|
%
|
|
0.5
|
%
|
|
63.3
|
%
|
||||||
Expense ratio
|
|
40.6
|
%
|
|
43.0
|
%
|
|
36.7
|
%
|
|
32.9
|
%
|
|
51.2
|
%
|
|
39.1
|
%
|
||||||
Combined ratio
|
|
108.0
|
%
|
|
108.9
|
%
|
|
100.9
|
%
|
|
99.0
|
%
|
|
51.7
|
%
|
|
102.4
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Six months ended June 30, 2016
|
|
Commercial Auto
|
|
Small Commercial Package
|
|
Middle Market Commercial
|
|
Workers' Comp
|
|
Other Commercial
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net written premiums
|
|
$
|
41.7
|
|
|
$
|
63.3
|
|
|
$
|
55.1
|
|
|
$
|
46.2
|
|
|
$
|
8.5
|
|
|
$
|
214.8
|
|
Net earned premiums
|
|
46.7
|
|
|
64.1
|
|
|
55.9
|
|
|
47.7
|
|
|
8.6
|
|
|
223.0
|
|
||||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cat loss and ALAE
|
|
0.8
|
|
|
6.2
|
|
|
6.6
|
|
|
—
|
|
|
—
|
|
|
13.6
|
|
||||||
Non-cat loss and ALAE
|
|
37.7
|
|
|
34.0
|
|
|
28.5
|
|
|
29.9
|
|
|
4.6
|
|
|
134.7
|
|
||||||
Total Loss and ALAE
|
|
38.5
|
|
|
40.2
|
|
|
35.1
|
|
|
29.9
|
|
|
4.6
|
|
|
148.3
|
|
||||||
ULAE
|
|
2.3
|
|
|
3.7
|
|
|
2.9
|
|
|
4.1
|
|
|
0.7
|
|
|
13.7
|
|
||||||
Total Loss and LAE
|
|
40.8
|
|
|
43.9
|
|
|
38.0
|
|
|
34.0
|
|
|
5.3
|
|
|
162.0
|
|
||||||
Underwriting expenses
|
|
15.4
|
|
|
25.7
|
|
|
22.0
|
|
|
13.5
|
|
|
3.6
|
|
|
80.2
|
|
||||||
Net underwriting (loss) gain
|
|
$
|
(9.5
|
)
|
|
$
|
(5.5
|
)
|
|
$
|
(4.1
|
)
|
|
$
|
0.2
|
|
|
$
|
(0.3
|
)
|
|
$
|
(19.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cat loss and ALAE ratio
|
|
1.8
|
%
|
|
9.6
|
%
|
|
11.7
|
%
|
|
—
|
%
|
|
—
|
%
|
|
6.1
|
%
|
||||||
Non-cat loss and ALAE ratio
|
|
80.8
|
%
|
|
53.0
|
%
|
|
51.0
|
%
|
|
62.6
|
%
|
|
54.3
|
%
|
|
60.4
|
%
|
||||||
Total Loss and ALAE ratio
|
|
82.6
|
%
|
|
62.6
|
%
|
|
62.7
|
%
|
|
62.6
|
%
|
|
54.3
|
%
|
|
66.5
|
%
|
||||||
ULAE ratio
|
|
5.0
|
%
|
|
5.6
|
%
|
|
5.2
|
%
|
|
8.7
|
%
|
|
6.9
|
%
|
|
6.1
|
%
|
||||||
Total Loss and LAE ratio
|
|
87.6
|
%
|
|
68.2
|
%
|
|
67.9
|
%
|
|
71.3
|
%
|
|
61.2
|
%
|
|
72.6
|
%
|
||||||
Expense ratio
|
|
36.9
|
%
|
|
40.6
|
%
|
|
39.9
|
%
|
|
29.3
|
%
|
|
42.2
|
%
|
|
37.3
|
%
|
||||||
Combined ratio
|
|
124.5
|
%
|
|
108.8
|
%
|
|
107.8
|
%
|
|
100.6
|
%
|
|
103.4
|
%
|
|
109.9
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
||||||||
Three months ended June 30, 2017
|
|
E&S Property
|
|
E&S Casualty
|
|
Programs
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net written premiums
|
|
$
|
17.3
|
|
|
$
|
30.7
|
|
|
$
|
25.7
|
|
|
$
|
73.7
|
|
Net earned premiums
|
|
10.4
|
|
|
25.8
|
|
|
26.5
|
|
|
62.7
|
|
||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE
|
|
0.3
|
|
|
—
|
|
|
0.4
|
|
|
0.7
|
|
||||
Non-cat loss and ALAE
|
|
4.1
|
|
|
17.6
|
|
|
18.8
|
|
|
40.5
|
|
||||
Total Loss and ALAE
|
|
4.4
|
|
|
17.6
|
|
|
19.2
|
|
|
41.2
|
|
||||
ULAE
|
|
0.2
|
|
|
1.2
|
|
|
1.6
|
|
|
3.0
|
|
||||
Total Loss and LAE
|
|
4.6
|
|
|
18.8
|
|
|
20.8
|
|
|
44.2
|
|
||||
Underwriting expenses
|
|
6.2
|
|
|
10.5
|
|
|
6.6
|
|
|
23.3
|
|
||||
Net underwriting loss
|
|
$
|
(0.4
|
)
|
|
$
|
(3.5
|
)
|
|
$
|
(0.9
|
)
|
|
$
|
(4.8
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE ratio
|
|
2.4
|
%
|
|
—
|
%
|
|
1.4
|
%
|
|
1.0
|
%
|
||||
Non-cat loss and ALAE ratio
|
|
40.6
|
%
|
|
68.2
|
%
|
|
71.0
|
%
|
|
64.8
|
%
|
||||
Total Loss and ALAE ratio
|
|
43.0
|
%
|
|
68.2
|
%
|
|
72.4
|
%
|
|
65.8
|
%
|
||||
ULAE ratio
|
|
1.1
|
%
|
|
4.8
|
%
|
|
5.8
|
%
|
|
4.6
|
%
|
||||
Total Loss and LAE ratio
|
|
44.1
|
%
|
|
73.0
|
%
|
|
78.2
|
%
|
|
70.4
|
%
|
||||
Expense ratio
|
|
36.4
|
%
|
|
34.2
|
%
|
|
26.0
|
%
|
|
31.8
|
%
|
||||
Combined ratio
|
|
80.5
|
%
|
|
107.2
|
%
|
|
104.2
|
%
|
|
102.2
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
||||||||
Three months ended June 30, 2016
|
|
E&S Property
|
|
E&S Casualty
|
|
Programs
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net written premiums
|
|
$
|
17.5
|
|
|
$
|
22.2
|
|
|
$
|
29.4
|
|
|
$
|
69.1
|
|
Net earned premiums
|
|
9.9
|
|
|
20.9
|
|
|
26.9
|
|
|
57.7
|
|
||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Non-cat loss and ALAE
|
|
3.8
|
|
|
14.1
|
|
|
28.9
|
|
|
46.8
|
|
||||
Total Loss and ALAE
|
|
3.8
|
|
|
14.1
|
|
|
28.9
|
|
|
46.8
|
|
||||
ULAE
|
|
0.2
|
|
|
1.7
|
|
|
1.5
|
|
|
3.4
|
|
||||
Total Loss and LAE
|
|
4.0
|
|
|
15.8
|
|
|
30.4
|
|
|
50.2
|
|
||||
Underwriting expenses
|
|
6.7
|
|
|
7.4
|
|
|
9.7
|
|
|
23.8
|
|
||||
Net underwriting loss
|
|
$
|
(0.8
|
)
|
|
$
|
(2.3
|
)
|
|
$
|
(13.2
|
)
|
|
$
|
(16.3
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE ratio
|
|
(0.5
|
)%
|
|
—
|
%
|
|
—
|
%
|
|
(0.1
|
)%
|
||||
Non-cat loss and ALAE ratio
|
|
39.1
|
%
|
|
67.0
|
%
|
|
106.9
|
%
|
|
80.9
|
%
|
||||
Total Loss and ALAE ratio
|
|
38.6
|
%
|
|
67.0
|
%
|
|
106.9
|
%
|
|
80.8
|
%
|
||||
ULAE ratio
|
|
2.5
|
%
|
|
8.0
|
%
|
|
6.0
|
%
|
|
6.1
|
%
|
||||
Total Loss and LAE ratio
|
|
41.1
|
%
|
|
75.0
|
%
|
|
112.9
|
%
|
|
86.9
|
%
|
||||
Expense ratio
|
|
38.7
|
%
|
|
33.3
|
%
|
|
32.9
|
%
|
|
34.5
|
%
|
||||
Combined ratio
|
|
79.8
|
%
|
|
108.3
|
%
|
|
145.8
|
%
|
|
121.4
|
%
|
||||
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
||||||||
Six months ended June 30, 2017
|
|
E&S Property
|
|
E&S Casualty
|
|
Programs
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net written premiums
|
|
$
|
26.5
|
|
|
$
|
57.4
|
|
|
$
|
54.1
|
|
|
$
|
138.0
|
|
Net earned premiums
|
|
21.4
|
|
|
49.1
|
|
|
53.2
|
|
|
123.7
|
|
||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE
|
|
2.4
|
|
|
—
|
|
|
0.5
|
|
|
2.9
|
|
||||
Non-cat loss and ALAE
|
|
7.4
|
|
|
35.0
|
|
|
40.6
|
|
|
83.0
|
|
||||
Total Loss and ALAE
|
|
9.8
|
|
|
35.0
|
|
|
41.1
|
|
|
85.9
|
|
||||
ULAE
|
|
(0.2
|
)
|
|
2.2
|
|
|
3.0
|
|
|
5.0
|
|
||||
Total Loss and LAE
|
|
9.6
|
|
|
37.2
|
|
|
44.1
|
|
|
90.9
|
|
||||
Underwriting expenses
|
|
11.3
|
|
|
20.1
|
|
|
14.8
|
|
|
46.2
|
|
||||
Net underwriting gain (loss)
|
|
$
|
0.5
|
|
|
$
|
(8.2
|
)
|
|
$
|
(5.7
|
)
|
|
$
|
(13.4
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE ratio
|
|
11.1
|
%
|
|
—
|
%
|
|
0.9
|
%
|
|
2.3
|
%
|
||||
Non-cat loss and ALAE ratio
|
|
35.1
|
%
|
|
71.2
|
%
|
|
76.3
|
%
|
|
67.2
|
%
|
||||
Total Loss and ALAE ratio
|
|
46.2
|
%
|
|
71.2
|
%
|
|
77.2
|
%
|
|
69.5
|
%
|
||||
ULAE ratio
|
|
(1.2
|
)%
|
|
4.6
|
%
|
|
5.6
|
%
|
|
4.0
|
%
|
||||
Total Loss and LAE ratio
|
|
45.0
|
%
|
|
75.8
|
%
|
|
82.8
|
%
|
|
73.5
|
%
|
||||
Expense ratio
|
|
42.8
|
%
|
|
35.0
|
%
|
|
27.4
|
%
|
|
33.5
|
%
|
||||
Combined ratio
|
|
87.8
|
%
|
|
110.8
|
%
|
|
110.2
|
%
|
|
107.0
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
||||||||
Six months ended June 30, 2016
|
|
E&S Property
|
|
E&S Casualty
|
|
Programs
|
|
Total
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net written premiums
|
|
$
|
23.8
|
|
|
$
|
44.3
|
|
|
$
|
61.4
|
|
|
$
|
129.5
|
|
Net earned premiums
|
|
19.7
|
|
|
41.1
|
|
|
51.9
|
|
|
112.7
|
|
||||
Losses and LAE incurred:
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE
|
|
0.4
|
|
|
—
|
|
|
0.1
|
|
|
0.5
|
|
||||
Non-cat loss and ALAE
|
|
6.8
|
|
|
26.6
|
|
|
51.2
|
|
|
84.6
|
|
||||
Total Loss and ALAE
|
|
7.2
|
|
|
26.6
|
|
|
51.3
|
|
|
85.1
|
|
||||
ULAE
|
|
0.5
|
|
|
2.5
|
|
|
2.8
|
|
|
5.8
|
|
||||
Total Loss and LAE
|
|
7.7
|
|
|
29.1
|
|
|
54.1
|
|
|
90.9
|
|
||||
Underwriting expenses
|
|
11.2
|
|
|
15.2
|
|
|
20.4
|
|
|
46.8
|
|
||||
Net underwriting gain (loss)
|
|
$
|
0.8
|
|
|
$
|
(3.2
|
)
|
|
$
|
(22.6
|
)
|
|
$
|
(25.0
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Cat loss and ALAE ratio
|
|
1.9
|
%
|
|
—
|
%
|
|
0.1
|
%
|
|
0.4
|
%
|
||||
Non-cat loss and ALAE ratio
|
|
34.9
|
%
|
|
64.6
|
%
|
|
98.6
|
%
|
|
75.1
|
%
|
||||
Total Loss and ALAE ratio
|
|
36.8
|
%
|
|
64.6
|
%
|
|
98.7
|
%
|
|
75.5
|
%
|
||||
ULAE ratio
|
|
2.6
|
%
|
|
6.1
|
%
|
|
5.8
|
%
|
|
5.3
|
%
|
||||
Total Loss and LAE ratio
|
|
39.4
|
%
|
|
70.7
|
%
|
|
104.5
|
%
|
|
80.8
|
%
|
||||
Expense ratio
|
|
47.2
|
%
|
|
34.4
|
%
|
|
33.2
|
%
|
|
36.2
|
%
|
||||
Combined ratio
|
|
86.6
|
%
|
|
105.1
|
%
|
|
137.7
|
%
|
|
117.0
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
($ millions)
|
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||||||||||
|
|
2017
|
|
2016
|
|
$ Change
|
|
2017
|
|
2016
|
|
$ Change
|
||||||||||||
|
|
Redundancy /(Deficiency)
|
|
|
|
Redundancy /(Deficiency)
|
|
|
||||||||||||||||
Non-cat loss and ALAE:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Personal Insurance Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Personal Auto
|
|
$
|
1.2
|
|
|
$
|
(4.7
|
)
|
|
$
|
5.9
|
|
|
$
|
1.8
|
|
|
$
|
(7.9
|
)
|
|
$
|
9.7
|
|
Homeowners
|
|
0.9
|
|
|
0.2
|
|
|
0.7
|
|
|
(1.9
|
)
|
|
0.1
|
|
|
(2.0
|
)
|
||||||
Farm & Ranch
|
|
0.8
|
|
|
0.6
|
|
|
0.2
|
|
|
0.8
|
|
|
0.7
|
|
|
0.1
|
|
||||||
Other Personal
|
|
(2.0
|
)
|
|
(0.6
|
)
|
|
(1.4
|
)
|
|
(2.1
|
)
|
|
(0.8
|
)
|
|
(1.3
|
)
|
||||||
Total Personal Insurance Segment
|
|
0.9
|
|
|
(4.5
|
)
|
|
5.4
|
|
|
(1.4
|
)
|
|
(7.9
|
)
|
|
6.5
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial Insurance Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial Auto
|
|
1.6
|
|
|
(4.7
|
)
|
|
6.3
|
|
|
3.1
|
|
|
(4.7
|
)
|
|
7.8
|
|
||||||
Small Commercial Package
|
|
3.0
|
|
|
0.4
|
|
|
2.6
|
|
|
5.0
|
|
|
(0.6
|
)
|
|
5.6
|
|
||||||
Middle Market Commercial
|
|
6.3
|
|
|
1.6
|
|
|
4.7
|
|
|
5.3
|
|
|
1.1
|
|
|
4.2
|
|
||||||
Workers' Compensation
|
|
2.8
|
|
|
(0.3
|
)
|
|
3.1
|
|
|
4.7
|
|
|
0.6
|
|
|
4.1
|
|
||||||
Other Commercial
|
|
1.1
|
|
|
(0.7
|
)
|
|
1.8
|
|
|
4.3
|
|
|
(0.5
|
)
|
|
4.8
|
|
||||||
Total Commercial Insurance Segment
|
|
14.8
|
|
|
(3.7
|
)
|
|
18.5
|
|
|
22.4
|
|
|
(4.1
|
)
|
|
26.5
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Specialty Insurance Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
E&S Property
|
|
(1.2
|
)
|
|
(0.9
|
)
|
|
(0.3
|
)
|
|
(1.6
|
)
|
|
(1.2
|
)
|
|
(0.4
|
)
|
||||||
E&S Casualty
|
|
0.1
|
|
|
(1.6
|
)
|
|
1.7
|
|
|
0.3
|
|
|
(2.3
|
)
|
|
2.6
|
|
||||||
Programs
|
|
0.2
|
|
|
(8.7
|
)
|
|
8.9
|
|
|
(0.1
|
)
|
|
(12.6
|
)
|
|
12.5
|
|
||||||
Total Specialty Insurance Segment
|
|
(0.9
|
)
|
|
(11.2
|
)
|
|
10.3
|
|
|
(1.4
|
)
|
|
(16.1
|
)
|
|
14.7
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cat Loss and ALAE
|
|
(0.6
|
)
|
|
0.3
|
|
|
(0.9
|
)
|
|
1.6
|
|
|
1.0
|
|
|
0.6
|
|
||||||
ULAE
|
|
1.5
|
|
|
(1.5
|
)
|
|
3.0
|
|
|
4.2
|
|
|
(3.1
|
)
|
|
7.3
|
|
||||||
Total
|
|
$
|
15.7
|
|
|
$
|
(20.6
|
)
|
|
$
|
36.3
|
|
|
$
|
25.4
|
|
|
$
|
(30.2
|
)
|
|
$
|
55.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
June 30, 2017
|
|
December 31, 2016
|
|
$ Change
|
||||||
Personal Insurance Segment:
|
|
|
|
|
|
||||||
Personal Auto
|
$
|
194.5
|
|
|
$
|
192.7
|
|
|
$
|
1.8
|
|
Homeowners
|
65.1
|
|
|
50.0
|
|
|
15.1
|
|
|||
Farm & Ranch
|
17.5
|
|
|
14.3
|
|
|
3.2
|
|
|||
Other Personal
|
14.6
|
|
|
8.8
|
|
|
5.8
|
|
|||
Total Personal Insurance Segment
|
291.7
|
|
|
265.8
|
|
|
25.9
|
|
|||
Commercial Insurance Segment:
|
|
|
|
|
|
||||||
Commercial Auto
|
98.3
|
|
|
98.3
|
|
|
—
|
|
|||
Small Commercial Package
|
124.9
|
|
|
126.2
|
|
|
(1.3
|
)
|
|||
Middle Market Commercial
|
157.0
|
|
|
157.7
|
|
|
(0.7
|
)
|
|||
Workers’ Compensation
|
189.6
|
|
|
185.6
|
|
|
4.0
|
|
|||
Other Commercial
|
23.8
|
|
|
23.4
|
|
|
0.4
|
|
|||
Total Commercial Insurance Segment
|
593.6
|
|
|
591.2
|
|
|
2.4
|
|
|||
Specialty Insurance Segment:
|
|
|
|
|
|
||||||
E&S Property
|
29.4
|
|
|
29.8
|
|
|
(0.4
|
)
|
|||
E&S Casualty
|
159.5
|
|
|
137.4
|
|
|
22.1
|
|
|||
Programs
|
156.7
|
|
|
153.8
|
|
|
2.9
|
|
|||
Total Specialty Insurance Segment
|
345.6
|
|
|
321.0
|
|
|
24.6
|
|
|||
Total losses and loss expenses payable, net of reinsurance
recoverable on losses and loss expenses payable
|
$
|
1,230.9
|
|
|
$
|
1,178.0
|
|
|
$
|
52.9
|
|
|
|
|
|
|
|
|
|
($ millions)
|
Amortized cost
|
|
Fair
value
|
||||
Due in 1 year or less
|
$
|
45.5
|
|
|
$
|
45.6
|
|
Due after 1 year through 5 years
|
558.6
|
|
|
563.8
|
|
||
Due after 5 years through 10 years
|
350.6
|
|
|
354.4
|
|
||
Due after 10 years
|
577.2
|
|
|
594.6
|
|
||
U.S. government agencies mortgage-backed securities
|
606.4
|
|
|
608.7
|
|
||
Total
|
$
|
2,138.3
|
|
|
$
|
2,167.1
|
|
|
|
|
|
|
($ millions)
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Gross investment income:
|
|
|
|
|
|
|
|
||||||||
Fixed maturities
|
$
|
15.9
|
|
|
$
|
16.7
|
|
|
$
|
31.7
|
|
|
$
|
31.6
|
|
Equity securities
|
2.0
|
|
|
1.5
|
|
|
3.7
|
|
|
3.0
|
|
||||
Other
|
1.5
|
|
|
1.3
|
|
|
3.0
|
|
|
2.7
|
|
||||
Total gross investment income
|
19.4
|
|
|
19.5
|
|
|
38.4
|
|
|
37.3
|
|
||||
Less: Investment expenses
|
0.3
|
|
|
0.4
|
|
|
0.6
|
|
|
0.8
|
|
||||
Net investment income
|
$
|
19.1
|
|
|
$
|
19.1
|
|
|
$
|
37.8
|
|
|
$
|
36.5
|
|
|
|
|
|
|
|
|
|
||||||||
Average invested assets (at cost)
|
$
|
2,544.0
|
|
|
$
|
2,406.8
|
|
|
$
|
2,535.8
|
|
|
$
|
2,394.6
|
|
Annualized investment yield
|
3.0
|
%
|
|
3.2
|
%
|
|
3.0
|
%
|
|
3.0
|
%
|
||||
Annualized investment yield, after tax
|
2.2
|
%
|
|
2.4
|
%
|
|
2.2
|
%
|
|
2.3
|
%
|
||||
Net investment income, after tax
|
$
|
13.9
|
|
|
$
|
14.3
|
|
|
27.6
|
|
|
$
|
27.6
|
|
|
Effective tax rate
|
27.3
|
%
|
|
25.3
|
%
|
|
27.0
|
%
|
|
24.4
|
%
|
||||
|
|
|
|
|
|
|
|
($ in millions)
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||||||
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed maturities
|
$
|
2.0
|
|
|
$
|
57.5
|
|
|
$
|
0.6
|
|
|
$
|
50.6
|
|
|
$
|
2.3
|
|
|
$
|
108.2
|
|
|
$
|
2.1
|
|
|
$
|
126.4
|
|
Equity securities
|
14.6
|
|
|
42.1
|
|
|
6.6
|
|
|
40.1
|
|
|
24.3
|
|
|
87.2
|
|
|
10.7
|
|
|
60.5
|
|
||||||||
Other invested assets
|
0.1
|
|
|
0.2
|
|
|
0.1
|
|
|
0.2
|
|
|
0.1
|
|
|
0.5
|
|
|
0.1
|
|
|
0.4
|
|
||||||||
Total realized gains
|
16.7
|
|
|
99.8
|
|
|
7.3
|
|
|
90.9
|
|
|
26.7
|
|
|
195.9
|
|
|
12.9
|
|
|
187.3
|
|
||||||||
Realized losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sales
|
(0.1
|
)
|
|
2.2
|
|
|
(0.2
|
)
|
|
1.3
|
|
|
(0.2
|
)
|
|
4.7
|
|
|
(0.8
|
)
|
|
4.5
|
|
||||||||
OTTI
|
(0.8
|
)
|
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
|
(2.9
|
)
|
|
—
|
|
|
(2.0
|
)
|
|
—
|
|
||||||||
Fixed maturities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
OTTI
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.3
|
)
|
|
—
|
|
||||||||
Total realized losses
|
(0.9
|
)
|
|
2.2
|
|
|
(0.8
|
)
|
|
1.3
|
|
|
(3.1
|
)
|
|
4.7
|
|
|
(5.1
|
)
|
|
4.5
|
|
||||||||
Net realized gains on investments
|
$
|
15.8
|
|
|
$
|
102.0
|
|
|
$
|
6.5
|
|
|
$
|
92.2
|
|
|
$
|
23.6
|
|
|
$
|
200.6
|
|
|
$
|
7.8
|
|
|
$
|
191.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions, except # of positions)
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||
|
Number of positions
|
|
Total impairment
|
|
Number of positions
|
|
Total impairment
|
|
Number of positions
|
|
Total impairment
|
|
Number of positions
|
|
Total impairment
|
||||||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Large-cap securities
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
(1.5
|
)
|
|
1
|
|
|
$
|
(0.2
|
)
|
Small-cap securities
|
8
|
|
|
(0.8
|
)
|
|
4
|
|
|
(0.6
|
)
|
|
18
|
|
|
(1.4
|
)
|
|
14
|
|
|
(1.8
|
)
|
||||
Fixed maturities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(2.3
|
)
|
||||
Total other-than-temporary impairments
|
8
|
|
|
$
|
(0.8
|
)
|
|
4
|
|
|
$
|
(0.6
|
)
|
|
19
|
|
|
$
|
(2.9
|
)
|
|
16
|
|
|
$
|
(4.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ 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
|
||||||||||
Fixed maturities:
|
|
|
|
||||||||||||||||||
U.S. treasury securities and obligations of U.S. government agencies
|
$
|
437.5
|
|
|
$
|
7.8
|
|
|
21
|
|
|
$
|
(4.8
|
)
|
|
33
|
|
|
$
|
440.5
|
|
Obligations of states and political subdivisions
|
613.1
|
|
|
19.4
|
|
|
145
|
|
|
(0.8
|
)
|
|
9
|
|
|
631.7
|
|
||||
Corporate securities
|
481.3
|
|
|
6.1
|
|
|
65
|
|
|
(1.2
|
)
|
|
20
|
|
|
486.2
|
|
||||
U.S. government agencies mortgage-backed securities
|
606.4
|
|
|
9.7
|
|
|
49
|
|
|
(7.4
|
)
|
|
53
|
|
|
608.7
|
|
||||
Total fixed maturities
|
2,138.3
|
|
|
43.0
|
|
|
280
|
|
|
(14.2
|
)
|
|
115
|
|
|
2,167.1
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Large-cap securities
|
80.6
|
|
|
34.1
|
|
|
38
|
|
|
(0.4
|
)
|
|
6
|
|
|
114.3
|
|
||||
Small-cap securities
|
53.0
|
|
|
19.1
|
|
|
74
|
|
|
—
|
|
|
—
|
|
|
72.1
|
|
||||
Mutual and exchange traded funds
|
187.9
|
|
|
19.7
|
|
|
11
|
|
|
(2.6
|
)
|
|
1
|
|
|
205.0
|
|
||||
Total equity securities
|
321.5
|
|
|
72.9
|
|
|
123
|
|
|
(3.0
|
)
|
|
7
|
|
|
391.4
|
|
||||
Other invested assets
|
25.6
|
|
|
25.0
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
50.6
|
|
||||
Total available-for-sale investments
|
$
|
2,485.4
|
|
|
$
|
140.9
|
|
|
405
|
|
|
$
|
(17.2
|
)
|
|
122
|
|
|
$
|
2,609.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
June 30, 2017
|
|
December 31, 2016
|
|
$
Change
|
||||||
Available-for-sale investments:
|
|
|
|
|
|
||||||
Unrealized holding gains:
|
|
|
|
|
|
||||||
Fixed maturities
|
$
|
28.8
|
|
|
$
|
13.4
|
|
|
$
|
15.4
|
|
Equity securities
|
69.9
|
|
|
59.7
|
|
|
10.2
|
|
|||
Other invested assets
|
25.0
|
|
|
19.6
|
|
|
5.4
|
|
|||
Unrealized gains
|
123.7
|
|
|
92.7
|
|
|
31.0
|
|
|||
Net deferred federal income tax liability
|
(40.7
|
)
|
|
(29.9
|
)
|
|
(10.8
|
)
|
|||
Unrealized gains, net of tax
|
$
|
83.0
|
|
|
$
|
62.8
|
|
|
$
|
20.2
|
|
|
|
|
|
|
|
($ millions)
|
Three months ended June 30
|
|
Six months ended June 30
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Income (loss) before federal income taxes
|
$
|
11.9
|
|
|
$
|
(25.1
|
)
|
|
$
|
6.7
|
|
|
$
|
(21.3
|
)
|
Federal income tax expense (benefit):
|
|
|
|
|
|
|
|
||||||||
Current
|
0.2
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||
Deferred
|
3.0
|
|
|
(0.5
|
)
|
|
2.0
|
|
|
0.3
|
|
||||
Total federal income tax expense (benefit)
|
3.2
|
|
|
(0.5
|
)
|
|
2.1
|
|
|
0.3
|
|
||||
Net income (loss)
|
$
|
8.7
|
|
|
$
|
(24.6
|
)
|
|
$
|
4.6
|
|
|
$
|
(21.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
1.
|
Information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission;
|
2.
|
Information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure; and
|
3.
|
Our disclosure controls and procedures are effective in timely making known to them material information required to be included in our periodic filings with the Securities and Exchange Commission.
|
|
|
Exhibit
No.
|
|
Description of Exhibits
|
|
|
|
|
|
10.01
|
|
|
State Auto Financial Corporation 2017 Long-Term Incentive Plan
|
|
|
|
|
31.01
|
|
|
CEO certification required by Section 302 of Sarbanes Oxley Act of 2002
|
|
|
|
|
31.02
|
|
|
CFO certification required by Section 302 of Sarbanes Oxley Act of 2002
|
|
|
|
|
32.01
|
|
|
CEO certification required by Section 906 of Sarbanes Oxley Act of 2002
|
|
|
|
|
32.02
|
|
|
CFO certification required by Section 906 of Sarbanes Oxley Act of 2002
|
|
|
|
|
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
|
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
101.CAL
|
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
101.DEF
|
|
|
XBRL Taxonomy Definition Linkbase Document
|
|
|
|
|
101.LAB
|
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
101.PRE
|
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
State Auto Financial Corporation
|
|
|
Date: August 8, 2017
|
/s/ Steven E. English
|
|
Steven E. English
|
|
Chief Financial Officer
|
|
(Duly Authorized Officer and
|
|
Principal Financial Officer)
|
(i)
|
if the Stock is traded on that date, the closing sale price of the Stock on that date; or
|
(ii)
|
if the Stock is not traded on that date, the closing sale price of the Stock on the last trading date immediately preceding that date;
|
(iii)
|
changes in accounting principles;
|
(iv)
|
changes related to restructured or discontinued operations;
|
(v)
|
restatement of prior financial results; and
|
(vi)
|
any other unusual, infrequently occurring or non-recurring gain or loss including those described in the Financial Accounting Standards Board's authoritative guidance, footnotes to the Company’s financial statements, in management's discussion and analysis of financial condition and results of operations appearing in the Company's reports on Form 10-K, 10-Q or 8-K for the applicable year and/or appearing in a press release reporting the Company's earnings for any fiscal period.
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
Date: August 8, 2017
|
/s/ Michael E. LaRocco
|
|
Michael E. LaRocco, Chief Executive Officer
|
|
(Principal executive officer)
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
Date: August 8, 2017
|
/s/ Steven E. English
|
|
Steven E. English, Chief Financial Officer
|
|
(Principal financial officer)
|
|
/s/ Michael E. LaRocco
|
|
Michael E. LaRocco
|
|
Chief Executive Officer
|
|
August 8, 2017
|
|
/s/ Steven E. English
|
|
Steven E. English
|
|
Chief Financial Officer
|
|
August 8, 2017
|