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Investments (Tables)
 12 Months Ended
Dec. 31, 2019
Investments Schedule [Abstract]  
Investment Portfolio by Major Security Type
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

December 31, 2019
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
U.S. government obligations
$
13,100.7

$
194.1

$
(43.7
)
$
0

$
13,251.1

33.7
%
State and local government obligations
1,686.0

30.0

(2.7
)
0

1,713.3

4.4

Corporate debt securities
6,860.3

206.6

(0.5
)
1.3

7,067.7

18.0

Residential mortgage-backed securities
625.0

4.5

(2.0
)
0

627.5

1.6

Commercial mortgage-backed securities
5,020.7

61.5

(6.0
)
0

5,076.2

12.9

Other asset-backed securities
5,164.7

16.2

(1.4
)
0

5,179.5

13.2

Redeemable preferred stocks
185.7

4.1

(1.3
)
6.5

195.0

0.5

Total fixed maturities
32,643.1

517.0

(57.6
)
7.8

33,110.3

84.3

Short-term investments
1,798.8

0

0

0

1,798.8

4.6

    Total available-for-sale securities
34,441.9

517.0

(57.6
)
7.8

34,909.1

88.9

Equity securities:
 
 
 
 
 
 
Nonredeemable preferred stocks
971.3

0

0

67.6

1,038.9

2.7

Common equities
1,125.5

0

0

2,180.8

3,306.3

8.4

    Total equity securities
2,096.8

0

0

2,248.4

4,345.2

11.1

Total portfolio1,2
$
36,538.7

$
517.0

$
(57.6
)
$
2,256.2

$
39,254.3

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
 
 
 
 
 
 
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 fixed maturities and short-term
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 available-for-sale portfolio1,2
$
32,203.3

$
115.4

$
(249.6
)
$
1,498.3

$
33,567.4

100.0
%

1 Our portfolio reflects the effect of net unsettled security transactions; at December 31, 2019, $11.9 million was included in “other liabilities,” compared to $5.9 million at December 31, 2018.
2 The total fair value of the portfolio at December 31, 2019 and 2018 included $3.2 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 Securities Included in our fixed maturities are hybrid securities, which are reported at fair value at December 31:
 
(millions)
2019

 
2018

Fixed Maturities:
 
 
 
State and local government obligations
$
3.5

 
$
3.6

Corporate debt securities
91.2

 
158.9

Other asset-backed securities
2.6

 
4.5

Redeemable preferred stocks
92.1

 
77.7

Total hybrid securities
$
189.4

 
$
244.7
Composition of Fixed Maturities by Maturity  The composition of fixed maturities by maturity at December 31, 2019, was:
 
(millions)
Cost

 
Fair Value

Less than one year
$
6,700.1

 
$
6,712.6

One to five years
16,898.3

 
17,158.4

Five to ten years
9,010.8

 
9,203.9

Ten years or greater
33.9

 
35.4

Total
$
32,643.1

 
$
33,110.3
Gross Unrealized Losses by Major Security 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

December 31, 2019
 
 
 
 
 
 
 
 
 
 
U.S. government obligations
23

$
5,152.4

$
(43.7
)
19

$
5,057.2

$
(43.6
)
 
4

$
95.2

$
(0.1
)
State and local government obligations
67

314.3

(2.7
)
52

287.5

(2.6
)
 
15

26.8

(0.1
)
Corporate debt securities
16

247.6

(0.5
)
12

191.4

(0.5
)
 
4

56.2

0

Residential mortgage-backed securities
41

292.8

(2.0
)
12

163.7

(0.9
)
 
29

129.1

(1.1
)
Commercial mortgage-backed securities
98

1,742.4

(6.0
)
79

1,400.0

(5.3
)
 
19

342.4

(0.7
)
Other asset-backed securities
61

1,000.6

(1.4
)
43

938.5

(0.9
)
 
18

62.1

(0.5
)
Redeemable preferred stocks
1

11.2

(1.3
)
0

0

0

 
1

11.2

(1.3
)
Total fixed maturities
307

$
8,761.3

$
(57.6
)
217

$
8,038.3

$
(53.8
)
 
90

$
723.0

$
(3.8
)
 
 
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
 
 
 
 
 
 
 
 
 
 
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
)
OTTI Credit Losses Recognized in Earnings The following table shows the rollforward activity for 2017:

(millions)
Total

Total at December 31, 2016
$
11.5

Credit losses for which an OTTI was not previously recognized
0.4

Reductions for securities sold/matured
(11.2
)
Change in recoveries of future cash flows expected to be collected1
(0.2
)
Total at December 31, 2017
$
0.5

1 Reflects expected recovery of prior period impairments that will be accreted into income over the remaining life of the security.
Components of Net Realized Gains (Losses) The components of net realized gains (losses) for the years ended December 31, were:
 
(millions)
2019

2018

2017

Gross realized gains on security sales
 
 
 
Available-for-sale securities:
 
 
 
U.S. government obligations
$
164.4

$
6.7

$
6.2

State and local government obligations
6.1

9.5

10.5

Corporate and other debt securities
100.1

2.4

20.3

Residential mortgage-backed securities
0.2

0

23.8

Commercial mortgage-backed securities
8.1

2.0

4.9

Other asset-backed securities
0.8

0.1

0.3

Redeemable preferred stocks
2.2

4.5

8.5

Total available-for-sale securities
281.9

25.2

74.5

Equity securities:
 
 
 
Nonredeemable preferred stocks
36.2

4.1

58.4

Common equities
61.7

286.6

43.0

Total equity securities
97.9

290.7

101.4

Subtotal gross realized gains on security sales
379.8

315.9

175.9

Gross realized losses on security sales
 
 
 
Available-for-sale securities:
 
 
 
U.S. government obligations
(20.4
)
(98.7
)
(28.7
)
State and local government obligations
(0.7
)
(2.9
)
(0.1
)
Corporate and other debt securities
(7.9
)
(10.4
)
(5.1
)
Residential mortgage-backed securities
(2.3
)
(0.1
)
(0.4
)
Commercial mortgage-backed securities
(2.2
)
(6.3
)
(5.3
)
Other asset-backed securities
(0.1
)
(1.1
)
(0.4
)
Redeemable preferred stocks
(0.4
)
(0.1
)
(6.4
)
                  Short-term investments
0

0

(0.2
)
Total available-for-sale securities
(34.0
)
(119.6
)
(46.6
)
Equity securities:
 
 
 
Nonredeemable preferred stocks
(3.2
)
(3.9
)
(5.9
)
Common equities
(8.0
)
(21.7
)
(12.2
)
Total equity securities
(11.2
)
(25.6
)
(18.1
)
Subtotal gross realized losses on security sales
(45.2
)
(145.2
)
(64.7
)
Net realized gains (losses) on security sales
 
 
 
Available-for-sale securities:
 
 
 
U.S. government obligations
144.0

(92.0
)
(22.5
)
State and local government obligations
5.4

6.6

10.4

Corporate and other debt securities
92.2

(8.0
)
15.2

Residential mortgage-backed securities
(2.1
)
(0.1
)
23.4

Commercial mortgage-backed securities
5.9

(4.3
)
(0.4
)
Other asset-backed securities
0.7

(1.0
)
(0.1
)
Redeemable preferred stocks
1.8

4.4

2.1

                  Short-term investments
0

0

(0.2
)
Total available-for-sale securities
247.9

(94.4
)
27.9

Equity securities:
 
 
 
Nonredeemable preferred stocks
33.0

0.2

52.5

Common equities
53.7

264.9

30.8

Total equity securities
86.7

265.1

83.3

Litigation settlements and other gains (losses)
0

0

1.2

Subtotal net realized gains (losses) on security sales
334.6

170.7

112.4

Net holding period gains (losses)
 
 
 
Hybrid securities
18.0

(10.4
)
(1.6
)
Equity securities
739.9

(497.5
)
0

Subtotal net holding period gains (losses)
757.9

(507.9
)
(1.6
)
Other-than-temporary impairment losses
 
 
 
Fixed maturities:
 
 
 
Commercial mortgage-backed securities
0

0

(0.4
)
Total fixed maturities
0

0

(0.4
)
Equity securities:
 
 
 
Common equities
0

0

(11.2
)
Subtotal investment other-than-temporary impairment losses
0

0

(11.6
)
Other asset impairment
(63.3
)
(68.3
)
(49.6
)
Subtotal other-than-temporary impairment losses
(63.3
)
(68.3
)
(61.2
)
Total net realized gains (losses) on securities
$
1,029.2

$
(405.5
)
$
49.6
Components of Equity Realized Gains (Losses) <div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The following table reflects our holding period realized gains (losses) on equity securities recognized for the respective years ended December&#160;31, for equity securities held at the respective year end:</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="7" rowspan="1"></td></tr><tr><td style="width:84%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:6%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:6%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">(millions)</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">2019</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">2018</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Total net gains (losses) recognized during the period on equity securities</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">826.6</font></div></td><td style="vertical-align:bottom;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(232.4</font></div></td><td style="vertical-align:bottom;padding-right:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#e5e5e5;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Less: Net gains (losses) recognized on equity securities sold during the period</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#e5e5e5;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">86.7</font></div></td><td style="vertical-align:bottom;background-color:#e5e5e5;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;background-color:#e5e5e5;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">265.1</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;background-color:#e5e5e5;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Net holding period gains (losses) recognized during the period on equity securities held at period end</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">739.9</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(497.5</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-right:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr></table></div></div><div style="line-height:120%;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">Note: Comparative disclosure for 2017 is not meaningful.</font></div></div>
Components of Net Investment Income The components of net investment income for the years ended December 31, were:
 
(millions)
2019

2018

2017

Available-for-sale securities:
 
 
 
Fixed maturities:
 
 
 
U.S. government obligations
$
268.6

$
196.8

$
72.7

State and local government obligations
36.5

37.7

51.5

Foreign government obligations
0

0

0.3

Corporate debt securities
268.9

217.9

125.2

Residential mortgage-backed securities
21.6

27.6

34.7

Commercial mortgage-backed securities
150.1

93.9

79.6

Other asset-backed securities
117.3

75.7

47.1

Redeemable preferred stocks
19.0

12.3

11.8

Total fixed maturities
882.0

661.9

422.9

Short-term investments
41.7

52.9

37.8

    Total available-for-sale securities
923.7

714.8

460.7

Equity securities:
 
 
 
Nonredeemable preferred stocks
61.8

45.9

44.1

Common equities
56.5

59.8

58.3

    Total equity securities
118.3

105.7

102.4

Investment income
1,042.0

820.5

563.1

Investment expenses
(24.6
)
(24.3
)
(23.9
)
Net investment income
$
1,017.4

$
796.2

$
539.2