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Fair Values of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share
The following tables present additional information about our private equity partnerships, including commitments for additional investments which may or may not be funded:
June 30, 2024
Investment CategoryFair ValueRedemption Term / Redemption NoticeUnfunded Commitments
(in millions of dollars)(in millions of dollars)
Private Credit(a)$259.5 Not redeemable$127.6 
52.9 Quarterly / 90 days notice2.4 
Total Private Credit312.4 130.0 
Private Equity(b)557.3 Not redeemable377.1 
31.9Initial 5.5 year lock on each new investment / Quarterly after 5.5 year lock with 90 days notice13.9
Total Private Equity589.2391.0
Real Assets(c)471.5 Not redeemable234.7 
33.8 Quarterly / 90 days notice— 
Total Real Assets505.3 234.7 
Total Partnerships$1,406.9 $755.7 

December 31, 2023
Investment CategoryFair ValueRedemption Term / Redemption NoticeUnfunded Commitments
(in millions of dollars)(in millions of dollars)
Private Credit(a)$239.1 Not redeemable$128.2 
44.5 Quarterly / 90 days notice8.6 
Total Private Credit283.6 136.8 
Private Equity(b)543.9 Not redeemable410.6 
28.0 Initial 5.5 year lock on each new investment / Quarterly after 5.5 year lock with 90 days notice16.6
Total Private Equity571.9 427.2 
Real Assets(c)437.5 Not redeemable239.1 
33.2 Quarterly / 90 days notice— 
Total Real Assets470.7 239.1 
Total Partnerships$1,326.2 $803.1 

(a)Private Credit - The limited partnerships described in this category employ various investment strategies, generally providing direct lending or other forms of debt financing including first-lien, second-lien, mezzanine, and subordinated loans. The limited partnerships have credit exposure to corporates, physical assets, and/or financial assets within a variety of industries (including manufacturing, healthcare, energy, business services, technology, materials, and retail) in North
America and, to a lesser extent, outside of North America.  As of June 30, 2024, the estimated remaining life of the investments that do not allow for redemptions is approximately 72 percent in the next 3 years, 21 percent during the period from 3 to 5 years, and 7 percent during the period from 5 to 10 years.

(b)Private Equity - The limited partnerships described in this category employ various strategies generally investing in controlling or minority control equity positions directly in companies and/or assets across various industries (including manufacturing, healthcare, energy, business services, technology, materials, and retail), primarily in private markets within North America and, to a lesser extent, outside of North America.  As of June 30, 2024, the estimated remaining life of the investments that do not allow for redemptions is approximately 34 percent in the next 3 years, 30 percent during the period from 3 to 5 years, and 36 percent during the period from 5 to 10 years.

(c)Real Assets - The limited partnerships described in this category employ various strategies, which include investing in the equity and/or debt financing of physical assets, including infrastructure (energy, power, water/wastewater, communications), transportation (including airports, ports, toll roads, aircraft, railcars) and real estate in North America, Europe, South America, and Asia.  As of June 30, 2024, the estimated remaining life of the investments that do not allow for redemptions is approximately 39 percent in the next 3 years, 26 percent during period from 3 to 5 years, 34 percent during the period from 5 to 10 years, and 1 percent during the period from 10 to 15 years.
Fair Values by Fair Value Hierarchy Input level
The following tables present information about financial instruments measured at fair value on a recurring basis by fair value level, based on the observability of the inputs used:
 June 30, 2024
 Level 1Level 2Level 3NAVTotal
(in millions of dollars)
Assets
Fixed Maturity Securities
United States Government and Government Agencies and Authorities$78.6 $480.4 $— $— $559.0 
States, Municipalities, and Political Subdivisions— 3,449.3 — — 3,449.3 
Foreign Governments— 829.9 — — 829.9 
Public Utilities590.9 4,708.5 — — 5,299.4 
Mortgage/Asset-Backed Securities— 706.0 46.5 — 752.5 
All Other Corporate Bonds7,113.7 17,892.1 53.3 — 25,059.1 
Redeemable Preferred Stocks— 3.6 — — 3.6 
Total Fixed Maturity Securities7,783.2 28,069.8 99.8 — 35,952.8 
Other Long-term Investments
Derivatives
Forwards— 24.3 — — 24.3 
Foreign Currency Interest Rate Swaps
— 69.5 — — 69.5 
Embedded Derivative in Modified Coinsurance Arrangement
— — 5.4 — 5.4 
Total Derivatives— 93.8 5.4 — 99.2 
Perpetual Preferred and Equity Securities— 0.1 21.7 — 21.8 
Private Equity Partnerships— — — 1,406.9 1,406.9 
Total Other Long-term Investments— 93.9 27.1 1,406.9 1,527.9 
Total Financial Instrument Assets Carried at Fair Value$7,783.2 $28,163.7 $126.9 $1,406.9 $37,480.7 
Liabilities
Other Liabilities
Derivatives
Forwards $— $143.7 $— $— $143.7 
Foreign Currency Interest Rate Swaps
— 29.9 — — 29.9 
Total Derivatives— 173.6 — — 173.6 
Total Financial Instrument Liabilities Carried at Fair Value$— $173.6 $— $— $173.6 
 December 31, 2023
 Level 1Level 2Level 3NAVTotal
(in millions of dollars)
Assets
Fixed Maturity Securities
United States Government and Government Agencies and Authorities$— $624.8 $— $— $624.8 
States, Municipalities, and Political Subdivisions— 3,678.4 — — 3,678.4 
Foreign Governments— 890.7 — — 890.7 
Public Utilities301.3 5,020.3 — — 5,321.6 
Mortgage/Asset-Backed Securities— 611.2 32.9 — 644.1 
All Other Corporate Bonds3,985.2 21,562.1 123.4 — 25,670.7 
Redeemable Preferred Stocks— 3.6 — — 3.6 
Total Fixed Maturity Securities4,286.5 32,391.1 156.3 — 36,833.9 
Other Long-term Investments
Derivatives
Forwards— 47.5 — — 47.5 
Foreign Currency Interest Rate Swaps
— 52.4 — — 52.4 
Total Derivatives— 99.9 — — 99.9 
Perpetual Preferred and Equity Securities— 10.3 21.6 — 31.9 
Private Equity Partnerships— — — 1,326.2 1,326.2 
Total Other Long-term Investments— 110.2 21.6 1,326.2 1,458.0 
Total Financial Instrument Assets Carried at Fair Value$4,286.5 $32,501.3 $177.9 $1,326.2 $38,291.9 
Liabilities
Other Liabilities
Derivatives
Forwards$— $78.0 $— $— $78.0 
Foreign Currency Interest Rate Swaps
— 38.2 — — 38.2 
Embedded Derivative in Modified Coinsurance Arrangement— — 1.5 — 1.5 
Total Derivatives— 116.2 1.5 — 117.7 
Total Financial Instrument Liabilities Carried at Fair Value$— $116.2 $1.5 $— $117.7 
Changes in Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs
Changes in assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are as follows:
 Three Months Ended June 30, 2024
 Fair Value Beginning of PeriodTotal Realized
and Unrealized
Investment Gains (Losses) in		  Level 3 TransfersFair Value End of PeriodChange in Unrealized Gain (Loss) on Securities Held at the End of Period included in
 EarningsOCIPurchasesSales/MaturitiesIntoOut ofOCIEarnings
(in millions of dollars)
Fixed Maturity Securities
Mortgage/Asset-Backed Securities$38.7 $— $0.4 $4.9 $(0.7)$3.3 $(0.1)$46.5 $0.4 $— 
All Other Corporate Bonds90.2 — 2.5 — (26.7)23.1 (35.8)53.3 2.5 — 
Total Fixed Maturity Securities128.9 — 2.9 4.9 (27.4)26.4 (35.9)99.8 2.9 — 
Perpetual Preferred and Equity Securities
21.6 0.1 — — — — — 21.7 — 0.1 
Embedded Derivative in Modified Coinsurance Arrangement4.6 0.8 — — — — — 5.4 — 0.8 
 Three Months Ended June 30, 2023
 Fair Value Beginning of PeriodTotal Realized and Unrealized Investment Gains (Losses) in  Level 3 TransfersFair Value End of PeriodChange in Unrealized Gain (Loss) on Securities Held at the End of Period included in
 EarningsOCIPurchasesSales/MaturitiesIntoOut ofOCIEarnings
(in millions of dollars)
Fixed Maturity Securities
States, Municipalities, and Political Subdivisions$0.1 $— $— $— $— $— $(0.1)$— $— $— 
Public Utilities— 0.2 (0.3)— (3.2)3.3 — — (0.3)— 
Mortgage/Asset-Backed Securities28.8 — (0.1)3.9 (0.1)— (8.4)24.1 (0.1)— 
All Other Corporate Bonds139.1 (0.4)(29.0)30.0 (92.4)195.3 (113.8)128.8 (29.0)— 
Total Fixed Maturity Securities168.0 (0.2)(29.4)33.9 (95.7)198.6 (122.3)152.9 (29.4)— 
Perpetual Preferred and Equity Securities
16.2 0.5 — 0.8 — — — 17.5 — 0.5 
Embedded Derivative in Modified Coinsurance Arrangement(13.6)5.2 — — — — — (8.4)— 5.2 
 Six Months Ended June 30, 2024
 Fair Value Beginning of YearTotal Realized
and Unrealized
Investment Gains (Losses) in		  Level 3 TransfersFair Value End of PeriodChange in Unrealized Gain (Loss) on Securities Held at the End of Period included in
 EarningsOCIPurchasesSales/MaturitiesIntoOut ofOCIEarnings
(in millions of dollars)
Fixed Maturity Securities
Mortgage/Asset-Backed Securities$32.9 $— $0.5 $10.6 $(1.2)$3.8 $(0.1)$46.5 $0.5 $— 
All Other Corporate Bonds123.4 (2.6)5.1 2.3 (154.2)149.5 (70.2)53.3 5.1 (2.6)
Total Fixed Maturity Securities156.3 (2.6)5.6 12.9 (155.4)153.3 (70.3)99.8 5.6 (2.6)
Perpetual Preferred and Equity Securities
21.6 0.1 — — — — — 21.7 — 0.1 
Embedded Derivative in Modified Coinsurance Arrangement(1.5)6.9 — — — — — 5.4 — 6.9 
 Six Months Ended June 30, 2023
 Fair Value Beginning of YearTotal Realized and Unrealized Investment Gains (Losses) in  Level 3 TransfersFair Value End of PeriodChange in Unrealized Gain (Loss) on Securities Held at the End of Period included in
 EarningsOCIPurchasesSales/MaturitiesIntoOut ofOCIEarnings
(in millions of dollars)
Fixed Maturity Securities
States, Municipalities, and Political Subdivisions$0.2 $— $— $— $— $— $(0.2)$— $— $— 
Public Utilities— 0.3 (0.3)— (3.3)3.3 — — (0.3)— 
Mortgage/Asset-Backed Securities22.0 — (0.1)10.9 (0.3)0.4 (8.8)24.1 (0.1)— 
All Other Corporate Bonds158.7 (0.5)(24.1)31.5 (152.1)205.8 (90.5)128.8 (24.1)— 
Total Fixed Maturity Securities180.9 (0.2)(24.5)42.4 (155.7)209.5 (99.5)152.9 (24.5)— 
Perpetual Preferred and Equity Securities
16.2 0.5 — 0.8 — — — 17.5 — 0.5 
Embedded Derivative in Modified Coinsurance Arrangement(13.9)5.5 — — — — — (8.4)— 5.5 
Realized and unrealized investment gains and losses presented in the preceding tables represent gains and losses only for the time during which the applicable financial instruments were classified as Level 3. The transfers between levels resulted primarily from a change in observability of three inputs used to determine fair values of the securities transferred: (1) transactional data for new issuance and secondary trades, (2) broker/dealer quotes and pricing, primarily related to changes in the level of activity in the market and whether the market was considered orderly, and (3) comparable bond metrics from which to perform an analysis. For fair value measurements of financial instruments that were transferred either into or out of Level 3, we reflect the transfers using the fair value at the beginning of the period. We believe this allows for greater transparency, as all changes in fair value that arise during the reporting period of the transfer are disclosed as a component of our Level 3 reconciliation.
Quantitative Information Regarding Significant Unobservable Inputs
The table below provides quantitative information regarding the significant unobservable inputs used in Level 3 fair value measurements derived from internal models. Unobservable inputs for fixed maturity securities are weighted by the fair value of the securities. Certain securities classified as Level 3 are excluded from the table below due to limitations in our ability to obtain the underlying inputs used by external pricing sources.
June 30, 2024
Fair ValueValuation MethodUnobservable InputRange/Weighted Average
(in millions of dollars)
Fixed Maturity Securities
All Other Corporate Bonds - Private$17.5 Market Approach
Volatility of Credit
Market Convention
(a)
(b)
5.00% - 5.00% / 5.00%
Priced at Par Value
Perpetual Preferred and Equity Securities 21.7 Market Approach
Market Convention
(b)Priced at Cost, Owner's Equity, or Most Recent Round
Embedded Derivative in Modified Coinsurance Arrangement5.4 Discounted Cash Flows
Projected Liability Cash Flows
Weighted Spread of Swap Curve
(c)
Actuarial Assumptions
(0.004)%
December 31, 2023
Fair ValueValuation MethodUnobservable InputRange/Weighted Average
(in millions of dollars)
Fixed Maturity Securities
All Other Corporate Bonds - Private$15.9 Market Approach
Volatility of Credit
Market Convention
(a)
(b)
5.00% - 5.00% / 5.00%
Priced at Par Value
Perpetual Preferred and Equity Securities 21.6 Market ApproachMarket Convention(b)Priced at Cost, Owner's Equity, or Most Recent Round
Embedded Derivative in Modified Coinsurance Arrangement(1.5)Discounted Cash Flows
Projected Liability Cash Flows
Weighted Spread of Swap Curve
(c)
Actuarial Assumptions
0.2%

(a)Represents basis point adjustments for credit-specific factors
(b)Represents a decision to price based on par value, cost, owner's equity, or the price of the most recent capital funding round when limited data is available
(c)Represents various actuarial assumptions required to derive the liability cash flows. Fair value of embedded derivative is most often driven by the change in the weighted average credit spread to the swap curve for the assets backing the hypothetical loan
Carrying Amount and Fair Value of Financial Instruments
The following table presents the carrying amounts and estimated fair values of our financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:
June 30, 2024
Estimated Fair Value
Level 1Level 2Level 3TotalCarrying Value
(in millions of dollars)
Assets
Mortgage Loans$— $1,985.1 $— $1,985.1 $2,261.1 
Policy Loans— — 3,598.0 3,598.0 3,535.2 
Other Long-term Investments
Miscellaneous Long-term Investments— 20.6 0.3 20.9 20.9 
Total Financial Instrument Assets Not Carried at Fair Value$— $2,005.7 $3,598.3 $5,604.0 $5,817.2 
Liabilities
Long-term Debt$2,972.2 $265.6 $— $3,237.8 $3,470.3 
Other Liabilities
Unfunded Commitments— 0.2 — 0.2 0.2 
Payable for Collateral on FHLB Funding Agreements— 186.4 — 186.4 186.4 
Total Financial Instrument Liabilities Not Carried at Fair Value$2,972.2 $452.2 $— $3,424.4 $3,656.9 
December 31, 2023
Estimated Fair Value
Level 1Level 2Level 3TotalCarrying Value
(in millions of dollars)
Assets
Mortgage Loans$— $2,070.7 $— $2,070.7 $2,318.2 
Policy Loans— — 3,696.3 3,696.3 3,620.2 
Other Long-term Investments
Miscellaneous Long-term Investments— 15.7 0.3 16.0 16.0 
Total Financial Instrument Assets Not Carried at Fair Value$— $2,086.4 $3,696.6 $5,783.0 $5,954.4 
Liabilities
Long-term Debt$2,629.1 $598.8 $— $3,227.9 $3,430.4 
Other Liabilities
Unfunded Commitments— 0.2 — 0.2 0.2 
Payable for Collateral on FHLB Funding Agreements— 64.5 — 64.5 64.5 
Total Financial Instrument Liabilities Not Carried at Fair Value$2,629.1 $663.5 $— $3,292.6 $3,495.1