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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 10-Q

  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the Quarterly Period Ended June 30, 2021

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from ____  to ____

Commission file number: 001-33245

EMPLOYERS HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Nevada04-3850065
(State or other jurisdiction
of incorporation or organization)
(I.R.S. Employer
Identification Number)
10375 Professional Circle
Reno,Nevada89521
(Address of principal executive offices and zip code)
(888682-6671
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareEIGNew York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
As of July 15, 2021, there were 28,291,782 shares of the registrant's common stock outstanding.



  Page
No.
   
 
 
 
 
 
   
  
   



2



PART IFINANCIAL INFORMATION
Item 1.  Consolidated Financial Statements
Employers Holdings, Inc. and Subsidiaries
Consolidated Balance Sheets
(in millions, except share data)
As ofAs of
June 30,
2021
December 31,
2020
Assets(unaudited)
Investments:  
Fixed maturity securities at fair value (amortized cost $2,307.2 at June 30, 2021 and $2,333.6 at December 31, 2020, net of CECL allowance of $0.1 at June 30, 2021 and $0.7 at December 31, 2020)
$2,418.3 $2,479.2 
Equity securities at fair value (cost $153.9 at June 30, 2021 and $112.4 at December 31, 2020)
257.0 208.5 
Equity securities at cost
6.7 6.7 
Other invested assets (cost $45.8 at June 30, 2021 and $36.8 at December 31, 2020)
45.8 36.2 
Short-term investments at fair value (amortized cost $0.3 at June 30, 2021 and $26.5 at December 31, 2020)
0.3 26.6 
Total investments2,728.1 2,757.2 
Cash and cash equivalents107.6 160.4 
Restricted cash and cash equivalents0.2 0.2 
Accrued investment income15.5 15.3 
Premiums receivable (less CECL allowance of $11.6 at June 30, 2021 and $10.8 at December 31, 2020)
251.3 232.1 
Reinsurance recoverable for:
Paid losses 6.9 7.6 
Unpaid losses (less CECL allowance of $0.6 at June 30, 2021 and $0.4 at December 31, 2020)
482.9 496.6 
Deferred policy acquisition costs45.9 43.2 
Property and equipment, net16.6 19.1 
Operating lease right-of-use assets15.8 17.4 
Intangible assets, net13.6 13.6 
Goodwill36.2 36.2 
Contingent commission receivable—LPT Agreement13.4 13.4 
Cloud computing arrangements49.0 50.2 
Other assets53.7 60.1 
Total assets$3,836.7 $3,922.6 
Liabilities and stockholders’ equity  
Claims and policy liabilities:  
Unpaid losses and loss adjustment expenses$2,007.6 $2,069.4 
Unearned premiums315.7 299.1 
Commissions and premium taxes payable39.2 43.0 
Accounts payable and accrued expenses23.9 22.9 
Deferred reinsurance gain—LPT Agreement121.3 125.4 
FHLB advances 20.0 
Deferred income tax liability9.7 15.5 
Operating lease liability18.4 19.9 
Non-cancellable obligations23.8 24.1 
Other liabilities73.5 70.5 
Total liabilities$2,633.1 $2,709.8 
Commitments and contingencies
3


Employers Holdings, Inc. and Subsidiaries
Consolidated Balance Sheets
(in millions, except share data)
As ofAs of
June 30,
2021
December 31,
2020
Stockholders’ equity:(unaudited) 
Common stock, $0.01 par value; 150,000,000 shares authorized; 57,689,672 and 57,413,806 shares issued and 28,291,782 and 28,564,798 shares outstanding at June 30, 2021 and December 31, 2020, respectively
$0.6 $0.6 
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued  
Additional paid-in capital407.4 404.3 
Retained earnings1,283.0 1,247.9 
Accumulated other comprehensive income, net of tax87.8 115.1 
Treasury stock, at cost (29,397,890 shares at June 30, 2021 and 28,849,008 shares at December 31, 2020)
(575.2)(555.1)
Total stockholders’ equity1,203.6 1,212.8 
Total liabilities and stockholders’ equity$3,836.7 $3,922.6 
See accompanying unaudited notes to the consolidated financial statements.
4


Employers Holdings, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
(in millions, except per share data)
Three Months EndedSix Months Ended
 June 30,June 30,
 2021202020212020
Revenues(unaudited)(unaudited)
Net premiums earned$137.0 $151.5 $270.9 $319.4 
Net investment income18.2 19.9 36.6 39.8 
Net realized and unrealized gains (losses) on investments16.0 39.7 26.9 (21.4)
Other income0.2 0.3 0.6 0.6 
Total revenues171.4 211.4 335.0 338.4 
Expenses  
Losses and loss adjustment expenses83.7 73.1 153.3 177.4 
Commission expense18.0 19.2 34.8 40.5 
Underwriting and general and administrative expenses37.0 44.8 83.6 91.5 
Interest and financing expenses0.2  0.3  
Other expenses0.1  3.0  
Total expenses139.0 137.1 275.0 309.4 
Net income before income taxes32.4 74.3 60.0 29.0 
Income tax expense6.0 14.7 10.5 4.3 
Net income$26.4 $59.6 $49.5 $24.7 
Comprehensive income
Unrealized AFS investment gains (losses) arising during the period (net of tax (expense) benefit of $(2.7) and $(18.4) for the three months ended June 30, 2021 and 2020, respectively, and $6.7 and $(10.7) for the six months ended June 30, 2021 and 2020, respectively)
$10.4 $69.3 $(25.1)$40.2 
Reclassification adjustment for realized AFS investment gains in net income (net of tax expense of $0.4 and $1.6 for the three months ended June 30, 2021 and 2020, respectively and $0.6 and $0.1 for the six months ended June 30, 2021 and 2020, respectively)
(1.6)(5.9)(2.2)(0.5)
Other comprehensive income (loss), net of tax8.8 63.4 (27.3)39.7 
Total comprehensive income$35.2 $123.0 $22.2 $64.4 
Net realized and unrealized gains (losses) on investments
Net realized and unrealized gains (losses) on investments before impairments$16.0 $39.7 $26.9 $(21.4)
Net realized and unrealized gains (losses) on investments$16.0 $39.7 $26.9 $(21.4)
Earnings per common share (Note 13):
Basic$0.93 $1.98 $1.74 $0.80 
Diluted$0.92 $1.97 $1.71 $0.80 
Cash dividends declared per common share, RSUs and PSUs$0.25 $0.25 $0.50 $0.50 
See accompanying unaudited notes to the consolidated financial statements.
5


Employers Holdings, Inc. and Subsidiaries
Consolidated Statements of Stockholders’ Equity
For the Three Months Ended June 30, 2021 and 2020
(Unaudited)
Common StockAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive Income, NetTreasury Stock at CostTotal Stockholders’ Equity
Shares IssuedAmount
(in millions, except share data)
Balance, April 1, 202157,625,808 $0.6 $407.9 $1,263.8 $79.0 $(564.7)$1,186.6 
Stock-based obligations  0.5    0.5 
Stock options exercised6,200  0.2    0.2 
Vesting of RSUs and PSUs, net of shares withheld to satisfy tax withholdings57,664  (1.2)   (1.2)
Acquisition of common stock      (10.4)(10.4)
Dividends declared   (7.1)  (7.1)
Net income for the period—   26.4   26.4 
Change in net unrealized gains on investments, net of taxes of $(2.3)—    8.8  8.8 
Balance, June 30, 202157,689,672 $0.6 $407.4 $1,283.0 $87.8 $(575.2)$1,203.6 
Balance, April 1, 202057,375,585 $0.6 $397.0 $1,115.9 $41.6 $(497.8)$1,057.3 
Stock-based obligations  2.2    2.2 
Stock options exercised2,000       
Vesting of RSUs and PSUs, net of shares withheld to satisfy tax withholdings10,930       
Acquisition of common stock    (30.8)(30.8)
Dividends declared   (7.8)  (7.8)
Net loss for the period—   59.6   59.6 
Change in net unrealized gains on investments, net of taxes of $(16.8)—    63.4  63.4 
Balance, June 30, 202057,388,515 $0.6 $399.2 $1,167.8 $105.0 $(528.6)$1,144.0 
See accompanying unaudited notes to the consolidated financial statements.
6


Employers Holdings, Inc. and Subsidiaries
Consolidated Statements of Stockholders’ Equity
For the Six Months Ended June 30, 2021 and 2020
(Unaudited)
Common StockAdditional Paid-In CapitalRetained EarningsAccumulated Other Comprehensive Income, NetTreasury Stock at CostTotal Stockholders’ Equity
Shares IssuedAmount
(in millions, except share data)
Balance, January 1, 202157,413,806 $0.6 $404.3 $1,247.9 $115.1 $(555.1)$1,212.8 
Stock-based obligations  5.7    5.7 
Stock options exercised48,051  1.1    1.1 
Vesting of RSUs and PSUs, net of shares withheld to satisfy tax withholdings227,815  (3.7)   (3.7)
Acquisition of common stock     (20.1)(20.1)
Dividends declared   (14.3)  (14.3)
Net income for the period—   49.5   49.5 
Change in net unrealized gains on investments, net of taxes of $7.3—    (27.3) (27.3)
Balance, June 30, 202157,689,672 $0.6 $407.4 $1,283.0 $87.8 $(575.2)$1,203.6 
Balance, January 1, 202057,184,370 $0.6 $396.4 $1,158.8 $65.3 $(455.3)$1,165.8 
Stock-based obligations  4.6    4.6 
Stock options exercised38,500  0.9    0.9 
Vesting of RSUs and PSUs, net of shares withheld to satisfy tax withholdings165,645  (2.7)   (2.7)
Acquisition of common stock    (73.3)(73.3)
Dividends declared   (15.8)  (15.8)
Net income for the period—   24.7   24.7 
Change in net unrealized gains on investments, net of taxes of $(10.6)—    39.7  39.7 
Balance, June 30, 202057,388,515 $0.6 $399.2 $1,167.8 $105.0 $(528.6)$1,144.0 

See accompanying unaudited notes to the consolidated financial statements.
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Employers Holdings, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(in millions)
 Six Months Ended
 June 30,
 20212020
Operating activities(unaudited)
Net income$49.5 $24.7 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization3.8 4.4 
Stock-based compensation5.7 4.6 
Amortization of cloud computing arrangements6.2 3.4 
Amortization of premium on investments, net4.1 5.3 
Allowance for expected credit losses1.0 3.9 
Deferred income tax expense1.5 (10.6)
Net realized and unrealized (gains) losses on investments(26.9)21.4 
Change in operating assets and liabilities:  
Premiums receivable(20.0)(2.0)
Reinsurance recoverable on paid and unpaid losses14.2 8.5 
Cloud computing arrangements(5.0)(8.7)
Operating lease right-of-use-assets1.6 (4.5)
Current federal income taxes(7.8)14.5 
Unpaid losses and loss adjustment expenses(61.8)(22.1)
Unearned premiums16.6 4.4 
Accounts payable, accrued expenses and other liabilities2.0 (5.5)
Deferred reinsurance gain—LPT Agreement(4.1)(4.9)
Operating lease liabilities(1.5)4.4 
Non-cancellable obligations(0.3)(3.6)
Other(4.1)(9.5)
Net cash (used in) provided by operating activities(25.3)28.1 
Investing activities  
Purchases of fixed maturity securities(338.3)(324.9)
Purchases of equity securities(109.7)(150.1)
Purchases of short-term investments(2.0)(118.5)
Purchases of other invested assets(9.0)(4.9)
Proceeds from sale of fixed maturity securities158.2 249.8 
Proceeds from sale of equity securities84.9 169.3 
Proceeds from maturities and redemptions of fixed maturity securities205.3 154.6 
Proceeds from maturities of short-term investments28.3 75.8 
Net change in unsettled investment purchases and sales13.8 (42.9)
Capital expenditures and other(1.4)(3.8)
Net cash provided by investing activities30.1 4.4 
Financing activities  
Acquisition of common stock(20.5)(72.9)
Cash transactions related to stock-based compensation(2.7)(1.8)
Dividends paid to stockholders(14.3)(15.8)
Proceeds from FHLB advances 35.0 
Repayments on FHLB advances(20.0) 
Proceeds from line of credit27.0  
Repayments on line of credit(27.0) 
Payments on capital leases(0.1)(0.1)
Net cash used in financing activities(57.6)(55.6)
Net decrease in cash, cash equivalents and restricted cash(52.8)(23.1)
Cash, cash equivalents and restricted cash at the beginning of the period160.6 155.2 
Cash, cash equivalents and restricted cash at the end of the period$107.8 $132.1 
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The following table presents our cash, cash equivalents and restricted cash by category within the Consolidated Balance Sheets:
As ofAs of
June 30,
2021
December 31,
2020
(in millions)
Cash and cash equivalents$107.6 $160.4 
Restricted cash and cash equivalents supporting reinsurance obligations0.2 0.2 
Total cash, cash equivalents and restricted cash$107.8 $160.6 
 
See accompanying unaudited notes to the consolidated financial statements.
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Employers Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
 (Unaudited)
1. Basis of Presentation and Summary of Operations
Employers Holdings, Inc. (EHI) is a Nevada holding company. Through its wholly owned insurance subsidiaries, Employers Insurance Company of Nevada (EICN), Employers Compensation Insurance Company (ECIC), Employers Preferred Insurance Company (EPIC), Employers Assurance Company (EAC), and Cerity Insurance Company (CIC), EHI is engaged in the commercial property and casualty insurance industry, specializing in workers’ compensation products and services. Unless otherwise indicated, all references to the “Company” refer to EHI, together with its subsidiaries.
In 1999, the Nevada State Industrial Insurance System (the Fund) entered into a retroactive 100% quota share reinsurance agreement (the LPT Agreement) through a loss portfolio transfer transaction with third party reinsurers. The LPT Agreement commenced on June 30, 1999 and will remain in effect until: (i) all claims under the covered policies have closed; (ii) the LPT Agreement is commuted or terminated, upon the mutual agreement of the parties; or (iii) the reinsurers’ aggregate maximum limit of liability is exhausted, whichever occurs first. The LPT Agreement does not provide for any additional termination terms. On January 1, 2000, EICN assumed all of the assets, liabilities and operations of the Fund, including the Fund’s rights and obligations associated with the LPT Agreement (See Note 9).
The Company accounts for the LPT Agreement as retroactive reinsurance. Upon entry into the LPT Agreement, an initial deferred reinsurance gain (the Deferred Gain) was recorded as a liability on the Company’s Consolidated Balance Sheets. The Company is entitled to receive a contingent profit commission under the LPT Agreement. The contingent profit commission is estimated based on both actual paid results to date and projections of expected paid losses under the LPT Agreement and is recorded as an asset on the Company’s Consolidated Balance Sheets.
The accompanying consolidated financial statements have been prepared in accordance with United States (U.S.) generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934, as amended. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) necessary for a fair presentation of the Company’s consolidated financial position and results of operations for the periods presented have been included. The results of operations for an interim period are not necessarily indicative of the results for an entire year. These financial statements have been prepared consistent with the accounting policies described in the Company’s Form 10-K for the year ended December 31, 2020 (Annual Report).
The Company operates through two reportable segments: Employers and Cerity. Each of the segments represents a separate and distinct underwriting platform through which the Company conducts insurance business. This presentation allows the reader, as well as the Company's chief operating decision makers, to objectively analyze the business originated through each of the Company's underwriting platforms. Detailed financial information about the Company's operating segments is presented in Note 14.
Use of Estimates
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. As a result, actual results could differ from these estimates. The most significant areas that require management judgment are the estimate of unpaid losses and loss adjustment expenses (LAE), evaluation of reinsurance recoverables, recognition of premium revenue, recoverability of deferred income taxes, and valuation of investments.
2. New Accounting Standards
Recently Issued Accounting Standards
In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848). This update provides optional transition guidance to ease the potential accounting burden associated with transitioning away from the London Interbank Offered Rate (LIBOR), with optional expedients and exceptions related to the application of US GAAP to contracts, hedging relationships and other transactions affected by reference rate reform. Companies can apply this ASU immediately, but early adoption is only available through December 31, 2022 when this ASU becomes effective. The Company is evaluating the impact of LIBOR on its existing contracts and investments, but does not expect that this update will have a material impact on its consolidated financial condition or results of operations.
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Recently Adopted Accounting Standards
In October 2020, the FASB issued ASU 2020-10, Codification Improvements. This update ensures all disclosure guidance that requires or provides an option for an entity to provide notes to the financial statements is included in the Disclosure Section (Section 50) of the Codification. This update also provides codification where the original guidance was unclear. The Company adopted this standard and there was no impact to its consolidated financial condition or results of operations.
In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivable-Nonrefundable Fees and Other Costs. The amendments in this update shortened the amortization period for certain purchased callable debt securities held at a premium by requiring that entities amortize the premium associated with those callable debt securities within the scope of paragraph 310-20-25-33 to the earliest call date. The amendments affect the guidance in ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The Company adopted this standard and there was no impact to its consolidated financial condition or results of operations.
In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740). This update simplifies the accounting for income taxes within Accounting Standards Codification (ASC) topic 740 by removing certain exceptions and clarifies existing guidance. The Company adopted this standard and there was no impact to its consolidated financial condition or results of operations.
3. Valuation of Financial Instruments
Financial Instruments Carried at Fair Value
The carrying value and the estimated fair value of the Company’s financial instruments at fair value were as follows:
June 30, 2021December 31, 2020
 Carrying ValueEstimated Fair ValueCarrying ValueEstimated Fair Value
 (in millions)
Financial assets  
Total investments at fair value$2,675.6 $2,675.6 $2,714.3 $2,714.3 
Cash and cash equivalents107.6 107.6 160.4 160.4 
Restricted cash and cash equivalents0.2 0.2 0.2 0.2 
Assets and liabilities recorded at fair value on the Company’s Consolidated Balance Sheets are categorized based upon the levels of judgment associated with the inputs used to measure their fair value. Level inputs are defined as follows:
Level 1 - Inputs are unadjusted quoted market prices for identical assets or liabilities in active markets at the measurement date.
Level 2 - Inputs other than Level 1 prices that are observable for similar assets or liabilities through corroboration with market data at the measurement date.
Level 3 - Inputs that are unobservable that reflect management’s best estimate of what willing market participants would use in pricing the assets or liabilities at the measurement date.
The Company uses third party pricing services to assist with its investment accounting function. The ultimate pricing source varies depending on the investment security and pricing service used, but investment securities valued on the basis of observable inputs (Levels 1 and 2) are generally assigned values on the basis of actual transactions. Securities valued on the basis of pricing models with significant unobservable inputs or non-binding broker quotes are classified as Level 3. The Company performs quarterly analyses on the prices it receives from third parties to determine whether the prices are reasonable estimates of fair value, including confirming the fair values of these securities through observable market prices using an alternative pricing source, as it is ultimately management’s responsibility to ensure that the fair values reflected in the Company’s consolidated financial statements are appropriate. If differences are noted in these analyses, the Company may obtain additional information from other pricing services to validate the quoted price.
The Company bases all of its estimates of fair value for assets on the bid prices, when available, as they represent what a third-party market participant would be willing to pay in an arm’s length transaction.
For securities not actively traded, third party pricing services may use quoted market prices of similar instruments or discounted cash flow analyses, incorporating inputs that are currently observable in the markets for similar securities. Inputs that are often used in the valuation methodologies include, but are not limited to, broker quotes, benchmark yields, credit spreads, default rates, and prepayment speed assumptions. There were no material adjustments to the valuation methodology utilized by third party pricing services as of June 30, 2021 and December 31, 2020.
11


These methods of valuation only produce an estimate of fair value if there is objectively verifiable information to produce a valuation. If objectively verifiable information is not available, the Company would be required to produce an estimate of fair value using some of the same methodologies, making assumptions for market-based inputs that are unavailable.
The following table presents the Company’s investments at fair value and the corresponding fair value measurements.
June 30, 2021December 31, 2020
Level 1Level 2Level 3Level 1Level 2Level 3
(in millions)
Fixed maturity securities:
U.S. Treasuries$ $69.5 $ $ $78.3 $ 
U.S. Agencies 3.0   3.1  
States and municipalities 427.3   482.7  
Corporate securities 1,119.7   1,046.4  
Residential mortgage-backed securities
 384.9   461.0  
Commercial mortgage-backed securities
 92.2   102.4  
Asset-backed securities 48.0   42.6  
Collateralized loan obligations 85.4   83.6  
Foreign government securities 12.6   8.2  
Other securities
 175.7   170.9  
Total fixed maturity securities$ $2,418.3 $ $ $2,479.2 $ 
Equity securities at fair value:
Industrial and miscellaneous$226.3 $ $ $179.1 $ $ 
Other30.7   29.4   
Total equity securities at fair value$257.0 $ $ $208.5 $ $ 
Short-term investments$ $0.3 $ $4.0 $22.6 $ 
Total investments at fair value$257.0 $2,418.6 $ $212.5 $2,501.8 $ 
Financial Instruments Carried at Cost
EICN, ECIC, EPIC, and EAC are members of the Federal Home Loan Bank of San Francisco (FHLB). Members are required to purchase stock in the FHLB in addition to maintaining collateral deposits that back any funds advanced. The Company’s investment in FHLB stock is recorded at cost, which approximates fair value, as purchases and sales of these securities are at par value with the issuer. FHLB stock is considered a restricted security and is periodically evaluated by the Company for impairment based on the ultimate recovery of par value.
The Company also has investments in convertible preferred shares of real estate investment trusts which are carried at cost and approximate fair value.
Financial Instruments Carried at Net Asset Value (NAV)
The Company has investments in private equity limited partnership interests that are included in Other invested assets on the Company’s Consolidated Balance Sheets. These investments do not have readily determinable fair values and are carried at NAV and therefore are excluded from the fair value hierarchy. The Company initially estimates the value of these investments using the transaction price. In subsequent periods, the Company measures these investments using NAV per share provided quarterly by the general partner, based on financial statements that are audited annually. These investments are generally not redeemable by the investees and cannot be sold without approval of the general partner. These investments have a fund term of 10 to 12 years, subject to two or three one year extensions at the general partner’s discretion. The Company will receive distributions of proceeds from dividends and interest from fund investments, as well as from the disposition of a fund investment, or portion thereof. The Company expects these distributions from time-to-time during the full course of the fund term. As of June 30, 2021, the Company had unfunded commitments to these private equity limited partnerships totaling $54.4 million.
Additionally, certain cash equivalents, principally money market securities, are measured using NAV, which approximates fair value.
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The following table presents cash and investments carried at NAV on the Company’s Consolidated Balance Sheets.
June 30, 2021December 31, 2020
(in millions)
Cash equivalents carried at NAV$75.6 $58.7