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Investments (Tables)
 9 Months Ended
Sep. 30, 2019
Investments Schedule [Abstract]  
Schedule of Debt and Equity Securities Reconciliation The following tables present the composition of our investment portfolio by major security type, consistent with our classification of how we manage, monitor, and measure the portfolio. Our securities are reported in our Consolidated Balance Sheets at fair value. The changes in fair value for our fixed-maturity securities (other than hybrid securities) are reported as a component of accumulated other comprehensive income, net of deferred income taxes, in our Consolidated Balance Sheets. The net holding period gains (losses) reported below represent the inception-to-date changes in fair value of the securities. The changes in the net holding period gains (losses) between periods for the hybrid securities and equity securities are recorded as a component of net realized gains (losses) on securities in our Consolidated Statements of Comprehensive Income.
($ in millions)
Cost

 
Gross
Unrealized Gains

 
Gross
Unrealized
Losses

 
Net
Holding Period Gains
(Losses)

 
Fair
Value

 
% of
Total
Fair
Value

September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government obligations
$
13,387.6

 
$
300.3

 
$
(9.2
)
 
$
0

 
$
13,678.7

 
35.4
%
State and local government obligations
1,652.2

 
32.6

 
(1.1
)
 
0

 
1,683.7

 
4.4

Corporate debt securities
7,048.9

 
231.6

 
(0.4
)
 
1.0

 
7,281.1

 
18.9

Residential mortgage-backed securities
677.5

 
5.5

 
(1.5
)
 
0

 
681.5

 
1.8

Commercial mortgage-backed securities
4,547.9

 
93.0

 
(1.9
)
 
0

 
4,639.0

 
12.0

Other asset-backed securities
4,601.0

 
21.5

 
(0.6
)
 
0

 
4,621.9

 
12.0

Redeemable preferred stocks
219.8

 
4.4

 
(2.5
)
 
5.1

 
226.8

 
0.6

Total fixed maturities
32,134.9

 
688.9

 
(17.2
)
 
6.1

 
32,812.7

 
85.1

Short-term investments
1,467.4

 
0

 
0

 
0

 
1,467.4

 
3.8

       Total available-for-sale securities
33,602.3

 
688.9

 
(17.2
)
 
6.1

 
34,280.1

 
88.9

Equity securities:
 
 
 
 
 
 
 
 
 
 
 
Nonredeemable preferred stocks
1,054.2

 
0

 
0

 
74.3

 
1,128.5

 
2.9

Common equities
1,210.3

 
0

 
0

 
1,954.8

 
3,165.1

 
8.2

       Total equity securities
2,264.5

 
0

 
0

 
2,029.1

 
4,293.6

 
11.1

  Total portfolio1,2
$
35,866.8

 
$
688.9

 
$
(17.2
)
 
$
2,035.2

 
$
38,573.7

 
100.0
%

($ in millions)
Cost

 
Gross
Unrealized Gains

 
Gross
Unrealized
Losses

 
Net
Holding Period Gains
(Losses)

 
Fair
Value

 
% of
Total
Fair
Value

September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government obligations
$
9,942.0

 
$
0

 
$
(189.5
)
 
$
0

 
$
9,752.5

 
30.2
%
State and local government obligations
1,610.1

 
1.9

 
(23.2
)
 
0

 
1,588.8

 
4.9

Corporate debt securities
7,229.1

 
4.9

 
(85.2
)
 
(2.0
)
 
7,146.8

 
22.1

Residential mortgage-backed securities
767.8

 
7.6

 
(5.6
)
 
0

 
769.8

 
2.4

Commercial mortgage-backed securities
2,986.5

 
3.3

 
(30.5
)
 
0

 
2,959.3

 
9.1

Other asset-backed securities
3,205.0

 
1.4

 
(13.6
)
 
0.1

 
3,192.9

 
9.9

Redeemable preferred stocks
222.9

 
13.2

 
(1.4
)
 
(2.1
)
 
232.6

 
0.7

Total fixed maturities
25,963.4

 
32.3

 
(349.0
)
 
(4.0
)
 
25,642.7

 
79.3

Short-term investments
2,809.7

 
0

 
0

 
0

 
2,809.7

 
8.7

       Total available-for-sale securities
28,773.1

 
32.3

 
(349.0
)
 
(4.0
)
 
28,452.4

 
88.0

Equity securities:
 
 
 
 
 
 
 
 
 
 
 
Nonredeemable preferred stocks
758.9

 
0

 
0

 
82.0

 
840.9

 
2.6

Common equities
1,135.0

 
0

 
0

 
1,922.3

 
3,057.3

 
9.4

       Total equity securities
1,893.9

 
0

 
0

 
2,004.3

 
3,898.2

 
12.0

  Total portfolio1,2
$
30,667.0

 
$
32.3

 
$
(349.0
)
 
$
2,000.3

 
$
32,350.6

 
100.0
%
 
($ in millions)
Cost

 
Gross
Unrealized Gains

 
Gross
Unrealized
Losses

 
Net
Holding Period Gains
(Losses)

 
Fair
Value

 
% of
Total
Fair
Value

December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government obligations
$
9,897.4

 
$
71.2

 
$
(52.1
)
 
$
0

 
$
9,916.5

 
29.5
%
State and local government obligations
1,654.6

 
7.3

 
(12.8
)
 
0

 
1,649.1

 
4.9

Corporate debt securities
8,808.5

 
13.6

 
(125.3
)
 
(2.5
)
 
8,694.3

 
25.9

Residential mortgage-backed securities
733.5

 
6.0

 
(5.1
)
 
0

 
734.4

 
2.2

Commercial mortgage-backed securities
3,332.8

 
7.8

 
(39.0
)
 
0

 
3,301.6

 
9.8

Other asset-backed securities
3,585.4

 
3.6

 
(11.8
)
 
0.1

 
3,577.3

 
10.7

Redeemable preferred stocks
243.7

 
5.9

 
(3.5
)
 
(7.8
)
 
238.3

 
0.7

Total fixed maturities
28,255.9

 
115.4

 
(249.6
)
 
(10.2
)
 
28,111.5

 
83.7

Short-term investments
1,795.9

 
0

 
0

 
0

 
1,795.9

 
5.4

       Total available-for-sale securities
30,051.8

 
115.4

 
(249.6
)
 
(10.2
)
 
29,907.4

 
89.1

Equity securities:
 
 
 
 
 
 
 
 
 
 
 
Nonredeemable preferred stocks
1,002.6

 
0

 
0

 
31.3

 
1,033.9

 
3.1

Common equities
1,148.9

 
0

 
0

 
1,477.2

 
2,626.1

 
7.8

       Total equity securities
2,151.5

 
0

 
0

 
1,508.5

 
3,660.0

 
10.9

  Total portfolio1,2
$
32,203.3

 
$
115.4

 
$
(249.6
)
 
$
1,498.3

 
$
33,567.4

 
100.0
%

1Our portfolio reflects the effect of unsettled security transactions; at September 30, 2019, we had $286.5 million included in “other liabilities,” compared to $5.2 million and $5.9 million at September 30, 2018 and December 31, 2018, respectively.
2The total fair value of the portfolio at September 30, 2019 and 2018, and December 31, 2018, included $1.5 billion, $1.8 billion, and $2.9 billion, respectively, of securities held in a consolidated, non-insurance subsidiary of the holding company, net of any unsettled security transactions.
Hybrid Instruments Table Included in our fixed-maturity securities are hybrid securities, which are reported at fair value:

 
September 30,
 
 
(millions)
2019

 
2018

 
December 31, 2018

Fixed maturities:
 
 
 
 
 
State and local government obligations
$
3.5

 
$
3.6

 
$
3.6

Corporate debt securities
91.3

 
159.7

 
158.9

Other asset-backed securities
3.0

 
5.0

 
4.5

Redeemable preferred stocks
90.7

 
72.0

 
77.7

Total hybrid securities
$
188.5

 
$
240.3

 
$
244.7
Investments Classified by Contractual Maturity Date The composition of fixed maturities by maturity at September 30, 2019, was:
 
(millions)
Cost

 
Fair Value

Less than one year
$
5,620.9

 
$
5,633.4

One to five years
18,862.6

 
19,203.2

Five to ten years
7,582.3

 
7,904.9

Ten years or greater
69.1

 
71.2

Total
$
32,134.9

 
$
32,812.7
Schedule of Unrealized Loss on Investments The following tables show the composition of gross unrealized losses by major security type and by the length of time that individual securities have been in a continuous unrealized loss position:
 
Total No. of Sec.

Total
Fair
Value

Gross Unrealized Losses

Less than 12 Months
 
12 Months or Greater
($ in millions)
No. of Sec.

Fair
Value

Unrealized Losses

 
No. of Sec.

Fair
Value

Unrealized Losses

September 30, 2019
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
U.S. government obligations
14

$
2,708.0

$
(9.2
)
7

$
2,534.4

$
(8.9
)
 
7

$
173.6

$
(0.3
)
State and local government obligations
60

228.3

(1.1
)
25

100.4

(0.7
)
 
35

127.9

(0.4
)
Corporate debt securities
24

245.5

(0.4
)
5

77.2

(0.1
)
 
19

168.3

(0.3
)
Residential mortgage-backed securities
39

301.0

(1.5
)
5

138.7

(0.1
)
 
34

162.3

(1.4
)
Commercial mortgage-backed securities
48

743.3

(1.9
)
26

361.9

(0.8
)
 
22

381.4

(1.1
)
Other asset-backed securities
55

529.4

(0.6
)
20

359.1

(0.2
)
 
35

170.3

(0.4
)
Redeemable preferred stocks
3

57.2

(2.5
)
2

45.9

(1.3
)
 
1

11.3

(1.2
)
Total fixed maturities
243

$
4,812.7

$
(17.2
)
90

$
3,617.6

$
(12.1
)
 
153

$
1,195.1

$
(5.1
)
 
Total No. of Sec.

Total
Fair
Value

Gross Unrealized Losses

Less than 12 Months
 
12 Months or Greater
($ in millions)
No. of Sec.

Fair
Value

Unrealized Losses

 
No. of Sec.

Fair
Value

Unrealized Losses

September 30, 2018
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
U.S. government obligations
91

$
9,752.5

$
(189.5
)
39

$
5,025.0

$
(67.2
)
 
52

$
4,727.5

$
(122.3
)
State and local government obligations
459

1,394.3

(23.2
)
227

680.5

(6.4
)
 
232

713.8

(16.8
)
Corporate debt securities
369

5,959.2

(85.2
)
221

3,963.9

(45.3
)
 
148

1,995.3

(39.9
)
Residential mortgage-backed securities
234

521.7

(5.6
)
44

325.0

(0.6
)
 
190

196.7

(5.0
)
Commercial mortgage-backed securities
151

2,392.7

(30.5
)
80

1,164.2

(8.3
)
 
71

1,228.5

(22.2
)
Other asset-backed securities
219

2,828.6

(13.6
)
111

1,821.8

(4.0
)
 
108

1,006.8

(9.6
)
Redeemable preferred stocks
3

30.8

(1.4
)
1

4.7

(0.1
)
 
2

26.1

(1.3
)
Total fixed maturities
1,526

$
22,879.8

$
(349.0
)
723

$
12,985.1

$
(131.9
)
 
803

$
9,894.7

$
(217.1
)
 
Total No. of Sec.

Total
Fair
Value

Gross Unrealized Losses

Less than 12 Months
 
12 Months or Greater
($ in millions)
No. of Sec.

Fair
Value

Unrealized Losses

 
No. of Sec.

Fair
Value

Unrealized Losses

December 31, 2018
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
U.S. government obligations
51

$
4,438.0

$
(52.1
)
2

$
126.6

$
(0.1
)
 
49

$
4,311.4

$
(52.0
)
State and local government obligations
299

972.4

(12.8
)
49

192.7

(0.3
)
 
250

779.7

(12.5
)
Corporate debt securities
368

6,723.3

(125.3
)
133

2,613.3

(33.4
)
 
235

4,110.0

(91.9
)
Residential mortgage-backed securities
228

450.2

(5.1
)
32

248.8

(0.8
)
 
196

201.4

(4.3
)
Commercial mortgage-backed securities
140

2,328.5

(39.0
)
48

741.2

(8.9
)
 
92

1,587.3

(30.1
)
Other asset-backed securities
203

2,691.3

(11.8
)
84

1,551.7

(3.2
)
 
119

1,139.6

(8.6
)
Redeemable preferred stocks
3

48.5

(3.5
)
1

18.9

(0.6
)
 
2

29.6

(2.9
)
Total fixed maturities
1,292

$
17,652.2

$
(249.6
)
349

$
5,493.2

$
(47.3
)
 
943

$
12,159.0

$
(202.3
)
Non Credit Portion Of Other Than Temporary Impairment Recorded In Accumulated Other Comprehensive Income Table The following table shows the total non-credit portion of the OTTI recorded in accumulated other comprehensive income, reflecting the original non-credit loss at the time the credit impairment was determined (i.e., unadjusted for valuation changes subsequent to the original write-down):
 
 
September 30,
 
December 31,
2018

(millions)
2019

 
2018

 
Fixed maturities:
 
 
 
 
 
Residential mortgage-backed securities
$
(19.7
)
 
$
(19.7
)
 
$
(19.7
)
Commercial mortgage-backed securities
(0.1
)
 
(0.1
)
 
(0.1
)
Total fixed maturities
$
(19.8
)
 
$
(19.8
)
 
$
(19.8
)
Other than Temporary Impairment, Credit Losses Recognized in Earnings
The following tables provide rollforwards of the amounts related to credit losses recognized in earnings for the periods ended September 30, 2019 and 2018, for which a portion of the OTTI losses were also recognized in accumulated other comprehensive income at the time the credit impairments were determined and recognized: 
 
Three Months Ended September 30, 2019
 
Mortgage-Backed
 
 
(millions)
Residential 

 
Commercial 

 
Total

Balance at June 30, 2019
$
0

 
$
0.5

 
$
0.5

Change in recoveries of future cash flows expected to be collected1
0

 
0

 
0

Balance at September 30, 2019
$
0

 
$
0.5

 
$
0.5

 
 
 
 
 
 
 
Three Months Ended September 30, 2018
 
Mortgage-Backed
 
 
(millions)
Residential 

 
Commercial 

 
Total

Balance at June 30, 2018
$
0.3

 
$
0.5

 
$
0.8

Change in recoveries of future cash flows expected to be collected1
0

 
0

 
0

Balance at September 30, 2018
$
0.3

 
$
0.5

 
$
0.8

 
Nine Months Ended September 30, 2019
 
Mortgage-Backed
 
 
(millions)
Residential 

 
Commercial 

 
Total

Balance at December 31, 2018
$
0

 
$
0.5

 
$
0.5

Change in recoveries of future cash flows expected to be collected1
0

 
0

 
0

Balance at September 30, 2019
$
0

 
$
0.5

 
$
0.5

 
 
 
 
 
 
 
Nine Months Ended September 30, 2018
 
Mortgage-Backed
 
 
(millions)
Residential 

 
Commercial 

 
Total

Balance at December 31, 2017
$
0

 
$
0.5

 
$
0.5

Change in recoveries of future cash flows expected to be collected1
0.3

 
0

 
0.3

Balance at September 30, 2018
$
0.3

 
$
0.5

 
$
0.8

1Reflects the current period change in the expected recovery of prior impairments that will be accreted into income over the remaining life of the security.
Realized Gain (Loss) on Investments The components of net realized gains (losses) for the three and nine months ended September 30, were:
 
Three Months
 
Nine Months
(millions)
2019

 
2018

 
2019

 
2018

Gross realized gains on security sales
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
U.S. government obligations
$
41.5

 
$
0.1

 
$
113.0

 
$
1.8

State and local government obligations
1.8

 
0.2

 
4.0

 
9.4

Corporate and other debt securities
21.3

 
1.7

 
68.5

 
2.1

Residential mortgage-backed securities
0

 
0

 
0.2

 
0

Commercial mortgage-backed securities
2.6

 
0

 
6.2

 
2.0

Other asset-backed securities
0.1

 
0

 
0.8

 
0.1

Redeemable preferred stocks
0

 
0.2

 
0

 
4.5

Total available-for-sale securities
67.3

 
2.2

 
192.7

 
19.9

Equity securities:
 
 
 
 
 
 
 
Nonredeemable preferred stocks
3.6

 
0.1

 
20.2

 
3.7

Common equities
4.7

 
126.8

 
9.4

 
265.2

Total equity securities
8.3

 
126.9

 
29.6

 
268.9

   Subtotal gross realized gains on security sales
75.6

 
129.1

 
222.3


288.8

Gross realized losses on security sales
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
U.S. government obligations
(1.5
)
 
(7.6
)
 
(13.9
)
 
(46.4
)
State and local government obligations
0

 
(0.6
)
 
(0.7
)
 
(2.5
)
Corporate and other debt securities
(0.2
)
 
(3.2
)
 
(7.7
)
 
(7.3
)
Residential mortgage-backed securities
0

 
0

 
(2.3
)
 
0

Commercial mortgage-backed securities
0

 
0

 
(2.1
)
 
(6.3
)
Other asset-backed securities
0

 
(0.1
)
 
(0.1
)
 
(1.1
)
Redeemable preferred stocks
(0.2
)
 
0

 
(0.3
)
 
0

Total available-for-sale securities
(1.9
)
 
(11.5
)
 
(27.1
)
 
(63.6
)
Equity securities:
 
 
 
 
 
 
 
Nonredeemable preferred stocks
(2.0
)
 
0

 
(2.0
)
 
(2.3
)
Common equities
0

 
(9.2
)
 
(7.9
)
 
(17.1
)
Total equity securities
(2.0
)
 
(9.2
)
 
(9.9
)
 
(19.4
)
   Subtotal gross realized losses on security sales
(3.9
)
 
(20.7
)
 
(37.0
)
 
(83.0
)
Net realized gains (losses) on security sales
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
U.S. government obligations
40.0

 
(7.5
)
 
99.1

 
(44.6
)
State and local government obligations
1.8

 
(0.4
)
 
3.3

 
6.9

Corporate and other debt securities
21.1

 
(1.5
)
 
60.8

 
(5.2
)
Residential mortgage-backed securities
0

 
0

 
(2.1
)
 
0

Commercial mortgage-backed securities
2.6

 
0

 
4.1

 
(4.3
)
Other asset-backed securities
0.1

 
(0.1
)
 
0.7

 
(1.0
)
Redeemable preferred stocks
(0.2
)
 
0.2

 
(0.3
)
 
4.5

Total available-for-sale securities
65.4

 
(9.3
)
 
165.6

 
(43.7
)
Equity securities:
 
 
 
 
 
 
 
Nonredeemable preferred stocks
1.6

 
0.1

 
18.2

 
1.4

Common equities
4.7

 
117.6

 
1.5

 
248.1

Total equity securities
6.3

 
117.7

 
19.7

 
249.5

  Subtotal net realized gains (losses) on security sales
71.7

 
108.4

 
185.3

 
205.8

Net holding period gains (losses)
 
 
 
 
 
 
 
Hybrid securities
4.2

 
1.3

 
16.3

 
(4.2
)
Equity securities
27.6

 
94.5

 
520.6

 
(1.7
)
  Subtotal net holding period gains (losses)
31.8

 
95.8

 
536.9

 
(5.9
)
Other-than-temporary impairment losses
 
 
 
 
 
 
 
Other asset impairment
(38.1
)
 
(22.1
)
 
(62.4
)
 
(33.2
)
  Subtotal other-than-temporary impairment losses
(38.1
)
 
(22.1
)
 
(62.4
)
 
(33.2
)
     Total net realized gains (losses) on securities
$
65.4

 
$
182.1

 
$
659.8

 
$
166.7
Components of Equity Realized Gains (Losses)
The following table reflects our holding period realized gains (losses) on equity securities recognized for the three and nine months ended September 30, 2019 and 2018, for equity securities held at quarter end:
 
Three Months
 
Nine Months
(millions)
2019

2018

 
2019

2018

Total net gains (losses) recognized during the period on equity securities
$
33.9

$
212.2

 
$
540.3

$
247.8

Less: Net gains (losses) recognized on equity securities sold during the period
6.3

117.7

 
19.7

249.5

Net holding period gains (losses) recognized during the period on equity securities held at period end
$
27.6

$
94.5

 
$
520.6

$
(1.7
)
Components of Net Investment Income The components of net investment income for the three and nine months ended September 30, were: 
 
Three Months
 
Nine Months
(millions)
2019

2018

 
2019

2018

Available-for-sale securities:
 
 
 
 
 
   Fixed maturities:
 
 
 
 
 
U.S. government obligations
$
75.8

$
47.7

 
$
198.7

$
133.4

State and local government obligations
8.7

9.0

 
26.9

28.1

Corporate debt securities
65.1

62.1

 
209.8

150.1

Residential mortgage-backed securities
5.4

6.9

 
16.6

20.4

Commercial mortgage-backed securities
35.6

24.1

 
100.7

65.5

Other asset-backed securities
31.4

21.2

 
85.5

50.9

Redeemable preferred stocks
3.9

3.3

 
16.1

8.8

Total fixed maturities
225.9

174.3

 
654.3

457.2

   Short-term investments
7.1

15.7

 
34.3

40.7

    Total available-for-sale securities
233.0

190.0

 
688.6

497.9

Equity securities:
 
 
 
 
 
Nonredeemable preferred stocks
15.9

11.2

 
47.3

32.5

Common equities
14.1

16.9

 
41.3

46.1

    Total equity securities
30.0

28.1

 
88.6

78.6

    Investment income
263.0

218.1

 
777.2

576.5

    Investment expenses
(5.9
)
(5.8
)
 
(18.3
)
(18.0
)
Net investment income
$
257.1

$
212.3

 
$
758.9

$
558.5