Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Measured At Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below (in millions):

March 31, 2020			Fair Value Measurement Using:
	Total		Level 1		Level 2		Level 3
Assets
Fixed maturity securities
U.S. Government and government agencies	$	8.8	$	5.5	$	3.3	$	—
States, municipalities and political subdivisions	427.4		—		418.4		9.0
Residential mortgage-backed securities	61.0		—		48.0		13.0
Commercial mortgage-backed securities	99.7		—		65.5		34.2
Asset-backed securities	541.2		—		255.7		285.5
Corporate and other	2,614.9		31.9		2,414.3		168.7
Total fixed maturity securities	3,753.0		37.4		3,205.2		510.4
Equity securities
Common stocks	9.7		6.3		—		3.4
Perpetual preferred stocks	62.7		4.4		20.1		38.2
Total equity securities	72.4		10.7		20.1		41.6
Total assets accounted for at fair value	$	3,825.4	$	48.1	$	3,225.3	$	552.0

Liabilities
Embedded derivative	$	0.7	$	—	$	—	$	0.7
Other	3.7		—		—		3.7
Total liabilities accounted for at fair value	$	4.4	$	—	$	—	$	4.4

December 31, 2019			Fair Value Measurement Using:
	Total		Level 1		Level 2		Level 3
Assets
Fixed maturity securities
U.S. Government and government agencies	$	7.7	$	4.8	$	2.9	$	—
States, municipalities and political subdivisions	440.1		—		440.1		—
Residential mortgage-backed securities	66.9		—		57.7		9.2
Commercial mortgage-backed securities	109.4		—		74.8		34.6
Asset-backed securities	577.8		—		27.2		550.6
Corporate and other	2,827.0		46.5		2,669.5		111.0
Total fixed maturity securities	4,028.9		51.3		3,272.2		705.4
Equity securities
Common stocks	10.5		7.1		—		3.4
Perpetual preferred stocks	82.0		5.0		22.8		54.2
Total equity securities	92.5		12.1		22.8		57.6
Total assets accounted for at fair value	$	4,121.4	$	63.4	$	3,295.0	$	763.0

Liabilities
Embedded Derivatives	$	3.0	$	—	$	—	$	3.0
Other	4.8		—		—		4.8
Total liabilities accounted for at fair value	$	7.8	$	—	$	—	$	7.8

Schedule of Changes in Balances of Level 3 Financial Assets at Fair Value

The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three months ended March 31, 2020 and 2019 (in millions):

			Total realized/unrealized gains (losses) included in
	Balance at December 31, 2019			Net earnings (loss)		Other comp. income (loss)			Purchases and issuances		Sales and settlements			Transfer to Level 3		Transfer out of Level 3		Balance at March 31, 2020
Assets
Fixed maturity securities
States, municipalities and political subdivisions	$	—		$	0.1		$	(1.0)	$	—		$	—	$	9.9	$	—	$	9.0
Residential mortgage-backed securities	9.2			—			(1.9)		—			(0.7)		6.8		(0.4)		13.0
Commercial mortgage-backed securities	34.6			—			(5.3)		—			(0.2)		5.1		—		34.2
Asset-backed securities	550.6			—			(93.3)		60.0			(51.5)		—		(180.3)		285.5
Corporate and other	111.0			(0.1)			(13.0)		32.7			(1.3)		40.7		(1.3)		168.7
Total fixed maturity securities	705.4			—			(114.5)		92.7			(53.7)		62.5		(182.0)		510.4
Equity securities
Common stocks	3.4			—			—		—			—		—		—		3.4
Perpetual preferred stocks	54.2			—			(16.0)		—			—		—		—		38.2
Total equity securities	57.6			—			(16.0)		—			—		—		—		41.6
Total financial assets	$	763.0		$	—		$	(130.5)	$	92.7		$	(53.7)	$	62.5	$	(182.0)	$	552.0

			Total realized/unrealized (gains) losses included in
	Balance at December 31, 2019			Net earnings (loss)		Other comp. income (loss)			Purchases and issuances		Sales and settlements			Transfer to Level 3		Transfer out of Level 3		Balance at March 31, 2020
Liabilities
Embedded derivative	$	3.0		$	(2.3)		$	—	$	—		$	—	$	—	$	—	$	0.7
Other	4.8			(1.1)			—		—			—		—		—		3.7
Total financial liabilities	$	7.8		$	(3.4)		$	—	$	—		$	—	$	—	$	—	$	4.4

			Total realized/unrealized gains (losses) included in
	Balance at December 31, 2018			Net earnings (loss)		Other comp. income (loss)			Purchases and issuances		Sales and settlements			Transfer to Level 3		Transfer out of Level 3		Balance at March 31, 2019
Assets
Fixed maturity securities
Residential mortgage-backed securities	19.0			—			0.1		—			(0.3)		—		(5.7)		13.1
Commercial mortgage-backed securities	58.2			—			1.6		2.4			(0.4)		—		—		61.8
Asset-backed securities	478.2			—			13.3		48.6			(73.6)		5.6		—		472.1
Corporate and other	85.0			—			8.5		4.6			(4.6)		105.0		—		198.5
Total fixed maturity securities	640.4			—			23.5		55.6			(78.9)		110.6		(5.7)		745.5
Equity securities
Common stocks	5.9			0.2			—		—			—		—		—		6.1
Perpetual preferred stocks	55.3			(0.2)			—		—			—		—		—		55.1
Total equity securities	61.2			—			—		—			—		—		—		61.2
Total financial assets	$	701.6		$	—		$	23.5	$	55.6		$	(78.9)	$	110.6	$	(5.7)	$	806.7

			Total realized/unrealized (gains) losses included in
	Balance at December 31, 2018			Net earnings (loss)		Other comp. income (loss)			Purchases and issuances		Sales and settlements			Transfer to Level 3		Transfer out of Level 3		Balance at March 31, 2019
Liabilities
Embedded derivatives	$	8.4		$	(2.3)		$	—	$	—		$	—	$	—	$	—	$	6.1
Other	3.5			(0.8)			—		—			—		—		—		2.7
Total financial liabilities	$	11.9		$	(3.1)		$	—	$	—		$	—	$	—	$	—	$	8.8

Schedule of Financial Instruments Measured at Fair Value on Nonrecurring Basis

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments, which were not measured at fair value on a recurring basis. The table excludes carrying amounts for cash and cash equivalents, accounts receivable, accounts payable and other current liabilities, and other assets and liabilities approximate fair value due to relatively short periods to maturity (in millions):

March 31, 2020					Fair Value Measurement Using:
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Assets
Mortgage loans	$	142.2	$	142.3	$	—	$	—	$	142.3
Policy loans	18.9		18.9		—		18.9		—
Total assets not accounted for at fair value	$	161.1	$	161.2	$	—	$	18.9	$	142.3
Liabilities
Annuity benefits accumulated (1)	$	232.5	$	229.8	$	—	$	—	$	229.8
Long-term obligations (2)	684.6		675.9		—		675.9		—
Total liabilities not accounted for at fair value	$	917.1	$	905.7	$	—	$	675.9	$	229.8

December 31, 2019					Fair Value Measurement Using:
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Assets
Mortgage loans	$	183.5	$	183.5	$	—	$	—	$	183.5
Policy loans	19.1		19.1		—		19.1		—
Total assets not accounted for at fair value	$	202.6	$	202.6	$	—	$	19.1	$	183.5
Liabilities
Annuity benefits accumulated (1)	$	233.9	$	231.0	$	—	$	—	$	231.0
Long-term obligations (2)	772.0		768.9		—		768.9		—
Total liabilities not accounted for at fair value	$	1,005.9	$	999.9	$	—	$	768.9	$	231.0