Artwork: Cono Norte (San Martin de Porres) – by Lucia Koch

Operations Summary

We write personal and commercial auto insurance, residential property insurance, and other specialty property-casualty insurance and provide related services throughout the United States. Our Personal Lines segment writes insurance for personal autos and recreational vehicles. Our Commercial Lines segment writes primarily liability and physical damage insurance for automobiles and trucks owned and/or operated predominantly by small businesses. Our Property segment writes insurance for single family homes, condominium units, etc. for homeowners, other property owners, and renters. We distribute our products through both the Agency and Direct channels.

Personal Lines

Nine Months Ended
September 30,		  
2017 2016 Change
Net premiums written (billions) $ 17.23 $ 15.03 15%
Net premiums earned (billions) $ 16.13 $ 14.19 14%
Loss and loss adjustment expense ratio 74.3   76.2 (1.9) pts.
Underwriting expense ratio 19.6   19.6 (0) pts.
Combined ratio 93.9   95.8 (1.9) pts.
Policies in force (thousands) 15,801.0   14,595.2 8%

Commercial Lines

Nine Months Ended
September 30,		  
2017 2016 Change
Net premiums written (billions) $ 2.34 $ 2.05 14%
Net premiums earned (billions) $ 2.03 $ 1.77 15%
Loss and loss adjustment expense ratio 69.8   72.4 (2.6) pts.
Underwriting expense ratio 22.0   22.1 (0.1) pts.
Combined ratio 91.8   94.5 (2.7) pts.
Policies in force (thousands) 638.6   612.7 4%

Property

Nine Months Ended
September 30,		  
2017 2016 Change
Net premiums written (billions) $ 0.81 $ 0.72 13%
Net premiums earned (billions) $ 0.72 $ 0.64 13%
Loss and loss adjustment expense ratio 73.4   70.7 2.7 pts.
Underwriting expense ratio1 34.6   33.6 1.0 pts.
Combined ratio1 108.0   104.3 3.7 pts.
Policies in force (thousands) 1,375.6   1,184.7 16%

1Underwriting expense and combined ratios for 2017 include 6.7 points of amortization expense predominately associated with the acquisition of a controlling interest in ARX; 2016 ratios include 7.3 points of amortization expenses, as well as 0.7 points related to a loss on an exchange transaction.