Investments

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Unrealized gains and losses

The following tables present cost or amortized cost and fair values of investments at December 31, 2021 and 2020, respectively ($ in millions):


	Cost or Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
December 31, 2021
Corporate debt securities	$	593.4	$	—	$	(4.7)	$	588.7
U.S. Government obligations	102.2		0.1		(0.8)		101.5
Municipal securities	1.2		—		—		1.2
Total	$	696.8	$	0.1	$	(5.5)	$	691.4

December 31, 2020
Corporate debt securities	$	—	$	—	$	—	$	—
U.S. Government obligations	6.4		0.2		—		6.6
Municipal securities	—		—		—		—
Total	$	6.4	$	0.2	$	—	$	6.6

Gross unrealized losses for fixed maturities was $5.5 million and less than $0.1 million as of December 31, 2021 and 2020. Gross unrealized gains and losses are recorded as a component of accumulated other comprehensive income.

Contractual maturities of bonds

The following table presents the cost or amortized cost and estimated fair value of bonds as of December 31, 2021 by contractual maturity ($ in millions). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	December 31, 2021
	Cost or Amortized Cost		Fair Value
Due in one year or less	$	69.2	$	69.2
Due after one year through five years	627.6		622.2
Due after five years through ten years	—		—
Due after ten years	—		—
Total	$	696.8	$	691.4

Aging of gross unrealized losses

The following tables present the gross unrealized losses and related fair values for the Company's available-for-sale bond securities, grouped by duration of time in a continuous unrealized loss position, as of December 31, 2021 and 2020 ($ in millions):


	Less than 12 Months				12 Months or More				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
December 31, 2021
Corporate debt securities	$	581.9	$	(4.7)	$	—	$	—	$	581.9	$	(4.7)
U.S. Government obligations	95.0		(0.8)		0.5		—		95.5		(0.8)
Municipal securities	1.2		—		—		—		1.2		—
Total	$	678.1	$	(5.5)	$	0.5	$	—	$	678.6	$	(5.5)

December 31, 2020
Corporate debt securities	$	—	$	—	$	—	$	—	$	—	$	—
U.S. Government obligations	—		—		—		—		—		—
Municipal securities	—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—

Gross unrealized losses for fixed maturities was less than $0.1 million for twelve months or more as of December 31, 2021 and 2020, respectively.

As of December 31, 2021, 259 of the fixed securities held were in an unrealized loss position. The Company determined that unrealized losses on fixed maturities were primarily due to the interest rate environment, and not credit risk related to the issuers of these securities. The Company does not intend to sell the investments and it is not more likely than not that that the Company will be required to sell the investments before the recovery of the amortized cost basis. No allowance for credit losses related to any of these securities was recorded for the year ended December 31, 2021.

Special deposits

Bonds with a total carrying value of $6.8 million and $6.5 million at December 31, 2021 and 2020, respectively, which are included in fixed maturities available-for-sale on the balance sheets were deposited with various state insurance departments, as required, to comply with state insurance laws. The carrying value of bonds deposited with each respective state is as follows ($ in millions):


	December 31,
U.S. State	2021		2020
New York	$	2.8	$	2.8
Washington	1.2		1.2
Colorado	1.1		1.1
Nevada	0.4		0.2
North Carolina	0.3		0.3
New Mexico	0.3		0.3
Virginia	0.3		0.3
Florida	0.2		0.2
Arkansas	0.1		—
Massachusetts	0.1		0.1
Total	$	6.8	$	6.5

Net investment income

An analysis of net investment income follows ($ in millions):


	December 31,
	2021		2020		2019
Interest on cash and cash equivalents	$	0.4	$	1.0	$	2.8
Fixed maturities	1.5		0.1		0.1
Short-term investments	0.1		0.4		0.5
Total	2.0		1.5		3.4
Investment expense	0.1		0.0		0.0
Net investment income	$	1.9	$	1.5	$	3.4

Investment gains and losses

There were no pre-tax realized capital gains for the years ended December 31, 2021, 2020 and 2019.