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Disclosures About Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Summary of Company's Financial Instruments Whose Carrying Amount Did Not Equal Fair Value

The Company holds certain investments at cost, less an allowance for expected credit losses, on the Condensed Consolidated Balance Sheets. The fair value of the Company’s investments is estimated using a discounted cash flow analysis. Due to the level of unobservable inputs factored into the estimation of fair value, the valuation would be categorized as Level 3. The cost and estimated fair value of these investments were:


	As of
	March 31, 2024				December 31, 2023
(in millions)	Cost		Fair Value		Cost		Fair Value
Mortgage loans	$	171.6	$	176.0	$	144.8	$	148.8
Private loans	49.4		49.3		—		—
Total	$	221.0	$	225.3	$	144.8	$	148.8

A summary of our financial instruments whose carrying value did not equal fair value is shown below:


	March 31, 2024				December 31, 2023
(in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Junior subordinated debentures:
Trust preferred debentures	$	161.0	$	168.1	$	160.8	$	165.9
Subordinated debentures	80.6		84.7		80.4		83.3
Total junior subordinated debentures	241.6		252.8		241.2		249.2
Senior unsecured fixed rate notes	128.1		130.5		128.0		132.7

	$	369.7	$	383.3	$	369.2	$	381.9

Fair Value, Assets Measured on Recurring and Nonrecurring Basis

Based on an analysis of the inputs, our financial instruments measured at fair value for disclosure purposes have been categorized as follows:


	Fair Value Measurements at Reporting Date Using
(in millions)	March 31, 2024		Level 1 (1)		Level 2 (2)		Level 3 (3)
Junior subordinated debentures:
Trust preferred debentures	$	168.1	$	—	$	168.1	$	—
Subordinated debentures	84.7		—		84.7		—
Total junior subordinated debentures	252.8		—		252.8		—
Senior unsecured fixed rate notes	130.5		130.5		—		—

	$	383.3	$	130.5	$	252.8	$	—

(1) Quoted prices in active markets for identical assets

(2) Significant other observable inputs

(3) Significant unobservable inputs


	Fair Value Measurements at Reporting Date Using
(in millions)	December 31, 2023		Level 1 (1)		Level 2 (2)		Level 3 (3)
Junior subordinated debentures:
Trust preferred debentures	$	165.9	$	—	$	165.9	$	—
Subordinated debentures	83.3		—		83.3		—
Total junior subordinated debentures	249.2		—		249.2		—
Senior unsecured fixed rate notes	132.7		132.7		—		—

	$	381.9	$	132.7	$	249.2	$	—

(1) Quoted prices in active markets for identical assets

(2) Significant other observable inputs

(3) Significant unobservable inputs