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
| Six Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2018 | 2017 | Change | ||||
| Net premiums written (billions) | $ | 13.40 | $ | 11.21 | 20% | |
| Net premiums earned (billions) | $ | 12.52 | $ | 10.56 | 19% | |
| Loss and loss adjustment expense ratio | 69.4 | 72.8 | (3.4) pts. | |||
| Underwriting expense ratio | 19.8 | 19.7 | 0.1 pts. | |||
| Combined ratio | 89.2 | 92.5 | (3.3) pts. | |||
| Policies in force (thousands) | 17,145.7 | 15,399.2 | 11% | |||
Commercial Lines
| Six Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2018 | 2017 | Change | ||||
| Net premiums written (billions) | $ | 1.97 | $ | 1.52 | 30% | |
| Net premiums earned (billions) | $ | 1.69 | $ | 1.32 | 29% | |
| Loss and loss adjustment expense ratio | 68.0 | 68.5 | (0.5) pts. | |||
| Underwriting expense ratio | 20.5 | 22.1 | (1.6) pts. | |||
| Combined ratio | 88.5 | 90.6 | (2.1) pts. | |||
| Policies in force (thousands) | 678.9 | 625.7 | 9% | |||
Property
| Six Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2018 | 2017 | Change | ||||
| Net premiums written (billions) | $ | 0.69 | $ | 0.51 | 37% | |
| Net premiums earned (billions) | $ | 0.60 | $ | 0.47 | 29% | |
| Loss and loss adjustment expense ratio | 68.0 | 61.5 | 6.5 pts. | |||
| Underwriting expense ratio1 | 35.9 | 36.0 | (0.1) pts. | |||
| Combined ratio1 | 103.9 | 97.5 | 6.4 pts. | |||
| Policies in force (thousands) | 1,766.6 | 1,311.1 | 35% | |||
1Underwriting expense and combined ratios for 2018 and 2017 include 6.0 points and 6.7 points, respectively, of amortization expense predominately associated with the acquisition of a controlling interest in ARX.
