Senior Notes and Long-Term Debt

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Senior Notes and Long-Term Debt

Senior Notes and Long-Term Debt

Senior Notes. A summary of Senior Notes outstanding at December 31, 2021 and 2020 is presented in the following table.

TABLE 89: SENIOR NOTES

	DECEMBER 31,
($ In Millions)	RATE		2021		2020
Corporation-Senior Notes(1)
Fixed Rate Due Aug. 2021(2)	3.375	%	$	—	$	499.8
Fixed Rate Due Aug. 2022(2)	2.375		499.8		499.6
Fixed Rate Due Aug. 2028(3)(4)	3.65		548.5		584.4
Fixed Rate Due May 2029(3)(4)	3.15		533.9		567.9
Fixed Rate Due May 2030(3)(4)	1.95		923.3		970.7
Total Senior Notes			$	2,505.5	$	3,122.4

(1) As of December 31, 2021, debt issuance costs of $2.9 million are included as a direct deduction from the carrying amount and amortized on a straight-line basis over the life of the Note.

(2) Not redeemable prior to maturity.

(3) Redeemable within three months of maturity.

(4) Interest rate swap contracts were entered into to modify the interest expense from fixed rates to floating rates. The swaps are recorded as fair value hedges and increases in the carrying values of senior notes outstanding of $12.5 million and $130.7 million were recorded as of December 31, 2021 and 2020, respectively. See further detail in Note 27, “Derivative Financial Instruments.”

Long-Term Debt. A summary of Long-Term Debt outstanding at December 31, 2021 and 2020 is presented in the following table.

TABLE 90: LONG-TERM DEBT

			DECEMBER 31,
($ In Millions)	RATE		2021		2020
Corporation-Subordinated Debt(1)
Fixed Rate Notes due Oct. 2025(2)(3)	3.95	%	$	796.2	$	839.8
Fixed-to-Floating Rate Notes due May 2032(4)	3.375		349.5		349.5
Total Long-Term Debt			$	1,145.7	$	1,189.3
Long-Term Debt Qualifying as Risk-Based Capital			$	799.8	$	949.7

(1) As of December 31, 2021, debt issuance costs of $0.9 million are included as a direct deduction from the carrying amount and amortized on a straight-line basis over the life of the Note.

(2) Not redeemable prior to maturity.

(3) Interest rate swap contracts were entered into to modify the interest expense from fixed rates to floating rates. The swaps are recorded as fair value hedges and increases in the carrying values of the subordinated notes outstanding of $46.9 million and $90.8 million were recorded as of December 31, 2021 and 2020, respectively. See further detail in Note 27, “Derivative Financial Instruments.”

(4) The subordinated notes will bear interest from the date they were issued to, but excluding, May 8, 2027, at an annual rate of 3.375%, payable semi-annually in arrears. From, and including, May 8, 2027, the subordinated notes will bear interest at an annual rate equal to three-month LIBOR plus 1.131%, payable quarterly in arrears. The subordinated notes are unsecured and may be redeemed, in whole but not in part, on, and only on, May 8, 2027, at a redemption price equal to 100% of the principal amount of the subordinated notes to be redeemed, plus accrued and unpaid interest, if any, up to but excluding the redemption date.