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Fair Value (Tables)
 12 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]  
Composition of Investment Portfolio by Major Security Type
The composition of the investment portfolio by major security type and our outstanding debt was:
 
 
Fair Value
 
(millions)
Level 1

Level 2

Level 3

Total

Cost

December 31, 2018
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
U.S. government obligations
$
9,916.5

$
0

$
0

$
9,916.5

$
9,897.4

State and local government obligations
0

1,649.1

0

1,649.1

1,654.6

Corporate debt securities
0

8,694.3

0

8,694.3

8,808.5

Subtotal
9,916.5

10,343.4

0

20,259.9

20,360.5

Asset-backed securities:
 
 
 
 
 
Residential mortgage-backed
0

734.4

0

734.4

733.5

Commercial mortgage-backed
0

3,301.6

0

3,301.6

3,332.8

Other asset-backed
0

3,577.3

0

3,577.3

3,585.4

Subtotal asset-backed securities
0

7,613.3

0

7,613.3

7,651.7

Redeemable preferred stocks:
 
 
 
 
 
Financials
0

78.2

0

78.2

79.3

Utilities
0

0

0

0

0

Industrials
9.5

150.6

0

160.1

164.4

Subtotal redeemable preferred stocks
9.5

228.8

0

238.3

243.7

Total fixed maturities
9,926.0

18,185.5

0

28,111.5

28,255.9

Short-term investments
1,722.1

73.8

0

1,795.9

1,795.9

    Total available-for-sale securities
11,648.1

18,259.3

0

29,907.4

30,051.8

Equity securities:
 
 
 
 
 
Nonredeemable preferred stocks:
 
 
 
 
 
Financials
71.9

887.1

25.1

984.1

951.6

Utilities
0

44.8

0

44.8

46.0

Industrials
0

0

5.0

5.0

5.0

Subtotal nonredeemable preferred stocks
71.9

931.9

30.1

1,033.9

1,002.6

Common equities:
 
 
 
 
 
Common stocks
2,625.8

0

0

2,625.8

1,148.6

Other risk investments
0

0

0.3

0.3

0.3

Subtotal common equities
2,625.8

0

0.3

2,626.1

1,148.9

    Total equity securities
2,697.7

931.9

30.4

3,660.0

2,151.5

Total portfolio
$
14,345.8

$
19,191.2

$
30.4

$
33,567.4

$
32,203.3

Debt
$
0

$
4,532.3

$
0

$
4,532.3

$
4,404.9


 
Fair Value
 
(millions)
Level 1

Level 2

Level 3

Total

Cost

December 31, 2017
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
U.S. government obligations
$
6,645.9

$
0

$
0

$
6,645.9

$
6,688.8

State and local government obligations
0

2,297.1

0

2,297.1

2,285.6

Corporate debt securities
0

4,997.7

0

4,997.7

4,997.2

Subtotal
6,645.9

7,294.8

0

13,940.7

13,971.6

Asset-backed securities:
 
 
 
 
 
Residential mortgage-backed
0

836.7

0

836.7

828.8

Commercial mortgage-backed
0

2,758.6

0

2,758.6

2,760.1

Other asset-backed
0

2,454.7

0

2,454.7

2,454.5

Subtotal asset-backed securities
0

6,050.0

0

6,050.0

6,043.4

Redeemable preferred stocks:
 
 
 
 
 
Financials
0

64.1

0

64.1

61.3

Utilities
0

11.4

0

11.4

10.1

Industrials
0

135.5

0

135.5

123.5

Subtotal redeemable preferred stocks
0

211.0

0

211.0

194.9

Total fixed maturities
6,645.9

13,555.8

0

20,201.7

20,209.9

Short-term investments
1,824.4

1,045.0

0

2,869.4

2,869.4

                                     Total fixed maturities and short-term
8,470.3

14,600.8

0

23,071.1

23,079.3

Equity securities:
 
 
 
 
 
Nonredeemable preferred stocks:
 
 
 
 
 
Financials
80.6

718.2

0

798.8

693.6

Utilities
0

0

0

0

0

Industrials
0

0

5.0

5.0

5.0

Subtotal nonredeemable preferred stocks
80.6

718.2

5.0

803.8

698.6

Common equities:
 
 
 
 
 
Common stocks
3,399.5

0

0

3,399.5

1,498.7

Other risk investments
0

0

0.3

0.3

0.3

Subtotal common equities
3,399.5

0

0.3

3,399.8

1,499.0

       Total equity securities
3,480.1

718.2

5.3

4,203.6

2,197.6

             Total available-for-sale portfolio
$
11,950.4

$
15,319.0

$
5.3

$
27,274.7

$
25,276.9

Debt
$
0

$
3,606.5

$
37.1

$
3,643.6

$
3,306.3
Summary of Changes in Fair Value Associated With Level 3 Assets
The following tables provide a summary of changes in fair value associated with Level 3 assets for the years ended December 31, 2018 and 2017:
 
 
Level 3 Fair Value
(millions)
Fair Value at Dec. 31, 2017

Calls/
Maturities/
Paydowns

Purchases

Sales

Net Realized
(Gain)/Loss
on Sales

Change in
Valuation

Net
Transfers
In (Out) 

Fair Value at Dec. 31, 2018

Fixed maturities:
 
 
 
 
 
 
 
 
Asset-backed securities:
 
 
 
 
 
 
 
 
Commercial mortgage-backed
$
0

$
0

$
0

$
0

$
0

$
0

$
0

$
0

Equity securities:
 
 
 
 
 
 
 
 
Nonredeemable preferred stocks:
 
 
 
 
 
 
 
 
Financials
0

0

25.1

0

0

0

0

25.1

Industrials
5.0

0

0

0

0

0

0

5.0

Common equities:
 
 
 
 
 
 
 
 
Other risk investments
0.3

0

0

0

0

0

0

0.3

Total Level 3 securities
$
5.3

$
0

$
25.1

$
0

$
0

$
0

$
0

$
30.4




 
  
Level 3 Fair Value
(millions)
Fair Value at Dec. 31, 2016

Calls/
Maturities/
Paydowns

Purchases

Sales

Net Realized
(Gain)/Loss
on Sales

Change in
Valuation

Net
Transfers
In (Out)

Fair Value at Dec. 31, 2017

Fixed maturities:
 
 
 
 
 
 
 
 
Asset-backed securities:
 
 
 
 
 
 
 
 
Commercial mortgage-backed
$
0.3

$
(0.3
)
$
0

$
0

$
0

$
0

$
0

$
0

Equity securities:
 
 
 
 
 
 
 
 
Nonredeemable preferred stocks:
 
 
 
 
 
 
 
 
Financials
0

0

0

0

0

0

0

0

Industrials
0

0

5.0

0

0

0

0

5.0

Common equities:
 
 
 
 
 
 
 
 
Other risk investments
0.4

(0.1
)
0

0

0

0

0

0.3

Total Level 3 securities
$
0.7

$
(0.4
)
$
5.0

$
0

$
0

$
0

$
0

$
5.3
Summary of Quantitative Information about Level 3 Fair Value Measurements
The following tables provide a summary of the quantitative information about Level 3 fair value measurements for our applicable securities at December 31:
 
 
Quantitative Information about Level 3 Fair Value Measurements
($ in millions)
Fair Value at Dec. 31, 2018

Valuation Technique
Unobservable Input
Unobservable Input Assumption

Equity securities:
 
 
 
 
Nonredeemable preferred stocks:
 
 
 
 
Financials1
$
25.1

Internal price
Unadjusted purchase price
9.0

Industrials2
5.0

Internal price
Price-to-sales ratio
5.5

Subtotal Level 3 securities
30.1

 
 
 
Pricing exemption securities3
0.3

 
 
 
Total Level 3 securities
$
30.4

 
 
 

1The security was internally-priced since it is privately held. The security was purchased during December 2018 and the value at December 31, 2018 reflects the unadjusted purchase price per share.
2 The security was internally-priced since it is privately held. The price at December 31, 2018, was calculated using a price-to-sales ratio.
3 The unobservable input is not reasonably available to us.

 
Quantitative Information about Level 3 Fair Value Measurements
($ in millions)
Fair Value at Dec. 31, 2017

Valuation Technique
Unobservable Input
Unobservable Input Assumption

Equity securities:
 
 
 
 
Nonredeemable preferred stocks:
 
 
 
 
Financials
$
0

NA
NA
NA

Industrials1
5.0

Internal price
Unadjusted purchase price
3.9

Subtotal Level 3 securities
5.0

 
 
 
Pricing exemption securities2
0.3

 
 
 
Total Level 3 securities
$
5.3

 
 
 

NA= Not Available
1 The security was internally-priced since it is privately held. The security was purchased during third quarter 2017 and the value at December 31, 2017, reflects the unadjusted purchase price per share.
2 The unobservable input is not reasonably available to us.