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Investments
 6 Months Ended
Jun. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
Investments 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)CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Net
Holding
Period
Gains
(Losses)		Fair
Value		% of
Total
Fair
Value
June 30, 2021
Available-for-sale securities:
Fixed maturities:
U.S. government obligations$19,339.3 $171.3 $(72.9)$0 $19,437.7 38.1 %
State and local government obligations2,379.1 64.7 (3.3)0 2,440.5 4.8 
Corporate debt securities10,327.5 372.1 (9.9)1.2 10,690.9 21.0 
Residential mortgage-backed securities666.9 4.6 (1.1)0.9 671.3 1.3 
Commercial mortgage-backed securities5,628.2 91.4 (11.5)0 5,708.1 11.2 
Other asset-backed securities3,865.9 34.6 (1.5)0 3,899.0 7.7 
Redeemable preferred stocks171.1 1.7 (1.4)12.1 183.5 0.4 
Total fixed maturities42,378.0 740.4 (101.6)14.2 43,031.0 84.5 
Short-term investments1,710.6 0 0 0 1,710.6 3.3 
       Total available-for-sale securities44,088.6 740.4 (101.6)14.2 44,741.6 87.8 
Equity securities:
Nonredeemable preferred stocks1,536.2 0 0 126.1 1,662.3 3.3 
Common equities1,213.4 0 0 3,325.5 4,538.9 8.9 
       Total equity securities2,749.6 0 0 3,451.6 6,201.2 12.2 
  Total portfolio1
$46,838.2 $740.4 $(101.6)$3,465.8 $50,942.8 100.0 %
($ in millions)CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Net
Holding
Period
Gains
(Losses)		Fair
Value		% of
Total
Fair
Value
June 30, 2020
Available-for-sale securities:
Fixed maturities:
U.S. government obligations$8,814.5 $463.4 $(0.1)$0 $9,277.8 21.2 %
State and local government obligations3,426.0 148.9 (0.6)0 3,574.3 8.2 
Corporate debt securities10,493.2 571.4 (3.4)1.3 11,062.5 25.3 
Residential mortgage-backed securities541.0 5.4 (3.4)0 543.0 1.2 
Commercial mortgage-backed securities5,728.5 89.1 (55.8)0 5,761.8 13.2 
Other asset-backed securities4,313.3 45.3 (3.7)0 4,354.9 9.9 
Redeemable preferred stocks151.4 2.0 (1.4)0.1 152.1 0.3 
Total fixed maturities33,467.9 1,325.5 (68.4)1.4 34,726.4 79.3 
Short-term investments4,700.5 0 0 0 4,700.5 10.8 
       Total available-for-sale securities38,168.4 1,325.5 (68.4)1.4 39,426.9 90.1 
Equity securities:
Nonredeemable preferred stocks1,205.4 0 0 (24.8)1,180.6 2.7 
Common equities1,128.8 0 0 2,041.6 3,170.4 7.2 
       Total equity securities2,334.2 0 0 2,016.8 4,351.0 9.9 
  Total portfolio1
$40,502.6 $1,325.5 $(68.4)$2,018.2 $43,777.9 100.0 %
 
($ in millions)CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Net
Holding
Period
Gains
(Losses)		Fair
Value		% of
Total
Fair
Value
December 31, 2020
Available-for-sale securities:
Fixed maturities:
U.S. government obligations$12,437.9 $305.8 $(3.7)$0 $12,740.0 26.8 %
State and local government obligations3,099.4 123.1 (0.7)0 3,221.8 6.8 
Corporate debt securities9,579.7 601.7 (0.1)3.9 10,185.2 21.4 
Residential mortgage-backed securities503.3 7.1 (0.9)0 509.5 1.1 
Commercial mortgage-backed securities6,042.6 142.5 (10.0)0 6,175.1 13.0 
Other asset-backed securities3,745.0 40.1 (0.5)0 3,784.6 7.9 
Redeemable preferred stocks181.2 3.6 (1.4)11.3 194.7 0.4 
Total fixed maturities35,589.1 1,223.9 (17.3)15.2 36,810.9 77.4 
Short-term investments5,218.5 0 0 0 5,218.5 11.0 
       Total available-for-sale securities40,807.6 1,223.9 (17.3)15.2 42,029.4 88.4 
Equity securities:
Nonredeemable preferred stocks1,358.7 0 0 89.2 1,447.9 3.1 
Common equities1,187.3 0 0 2,865.7 4,053.0 8.5 
       Total equity securities2,546.0 0 0 2,954.9 5,500.9 11.6 
  Total portfolio1
$43,353.6 $1,223.9 $(17.3)$2,970.1 $47,530.3 100.0 %
1Our portfolio reflects the effect of net unsettled security transactions; at June 30, 2021, we had $412.1 million in other liabilities, compared to $277.9 million and $95.5 million at June 30, 2020 and December 31, 2020, respectively.
The total fair value of the portfolio at June 30, 2021 and 2020, and December 31, 2020, included $3.3 billion, $2.3 billion, and $6.2 billion, respectively, of securities held in a consolidated, non-insurance subsidiary of the holding company, net of unsettled security transactions. During the first six months of 2021, we used a portion of these investments to pay our common share dividends and repurchase common shares.
At June 30, 2021, bonds and certificates of deposit in the principal amount of $409.4 million were on deposit to meet state insurance regulatory requirements. We did not hold any securities of any one issuer, excluding U.S. government obligations, with an aggregate cost or fair value exceeding 10% of total shareholders’ equity at June 30, 2021 or 2020, or December 31, 2020. At June 30, 2021, we did not hold any debt securities that were non-income producing during the preceding 12 months and held $12.7 million of foreign government obligations at June 30, 2021, which we classified in our corporate debt portfolio.

Short-Term Investments Our short-term investments may include commercial paper and other investments that are expected to mature or are redeemable within one year.

We invested in repurchase and reverse repurchase transactions during 2021 and 2020, but did not have any open positions at June 30, 2021 and 2020, or December 31, 2020. To the extent we enter into repurchase or reverse repurchase transactions, consistent with past practice, we would elect not to offset these transactions and would report them on a gross basis on our consolidated balance sheets, despite the option to elect to offset these transactions as long as they were with the same counterparty and subject to an enforceable master netting arrangement.

Hybrid Securities Certain securities in our fixed-maturity portfolio are accounted for as hybrid securities because they contain embedded derivatives that are not deemed to be clearly and closely related to the host investments. These securities are reported at fair value:
 June 30,
(millions)20212020December 31, 2020
Fixed Maturities:
State and local government obligations$0 $3.4 $0 
Corporate debt securities296.7 84.3 188.4 
Residential mortgage-backed securities163.1 0 0 
Other asset-backed securities66.9 2.2 34.8 
Redeemable preferred stocks132.2 90.2 131.4 
Total hybrid securities$658.9 $180.1 $354.6 

Since the embedded derivatives (e.g., change-in-control put option, debt-to-equity conversion, or any other feature unrelated to the credit quality or risk of default of the issuer that could impact the amount or timing of our expected future cash flows) do not have observable intrinsic values, we have elected to record the changes in fair value of these securities through income as a component of net realized gains or losses.
Fixed Maturities The composition of fixed maturities by maturity at June 30, 2021, was:
(millions)CostFair Value
Less than one year$4,964.2 $4,985.6 
One to five years27,027.8 27,458.0 
Five to ten years10,125.0 10,323.1 
Ten years or greater261.0 264.3 
Total$42,378.0 $43,031.0 
 
Asset-backed securities are classified in the maturity distribution table based upon their projected cash flows. All other securities, which do not have a single maturity date, are reported based upon expected average maturity. Contractual maturities may differ from expected maturities because the issuers of the securities may have the right to call or prepay obligations.
Gross Unrealized Losses The following tables show the composition of gross unrealized losses, for which no credit related impairment has been recognized, 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 Months12 Months or Greater
($ in millions)No. of Sec.Fair
Value		Unrealized
Losses		No. of Sec.Fair
 Value		Unrealized
Losses
June 30, 2021
U.S. government obligations59 $10,629.4 $(72.9)55 $10,162.4 $(66.8)4 $467.0 $(6.1)
State and local government obligations81 436.2 (3.3)72 400.0 (2.6)9 36.2 (0.7)
Corporate debt securities292 1,142.5 (9.9)288 1,065.2 (9.5)4 77.3 (0.4)
Residential mortgage-backed securities77 192.2 (1.1)64 172.4 (0.7)13 19.8 (0.4)
Commercial mortgage-backed securities68 1,272.0 (11.5)61 1,006.9 (10.5)7 265.1 (1.0)
Other asset-backed securities119 1,073.6 (1.5)113 1,043.7 (1.3)6 29.9 (0.2)
Redeemable preferred stocks1 11.1 (1.4)0 0 0 1 11.1 (1.4)
Total fixed maturities697 $14,757.0 $(101.6)653 $13,850.6 $(91.4)44 $906.4 $(10.2)

 Total No. of Sec.Total
Fair
Value		Gross
Unrealized
Losses		Less than 12 Months12 Months or Greater
($ in millions)No. of Sec.Fair
Value		Unrealized
Losses		No. of Sec.Fair
 Value		Unrealized
Losses
June 30, 2020
U.S. government obligations4 $120.6 $(0.1)4 $120.6 $(0.1)0 $0 $0 
State and local government obligations17 135.0 (0.6)16 131.2 (0.6)1 3.8 0 
Corporate debt securities21 292.8 (3.4)21 292.8 (3.4)0 0 0 
Residential mortgage-backed securities40 188.2 (3.4)21 93.7 (1.7)19 94.5 (1.7)
Commercial mortgage-backed securities113 2,536.6 (55.8)91 2,106.6 (48.3)22 430.0 (7.5)
Other asset-backed securities29 331.7 (3.7)21 299.0 (3.4)8 32.7 (0.3)
Redeemable preferred stocks1 11.0 (1.4)0 0 0 1 11.0 (1.4)
Total fixed maturities225 $3,615.9 $(68.4)174 $3,043.9 $(57.5)51 $572.0 $(10.9)

 Total No. of Sec.Total
Fair
Value		Gross
Unrealized
Losses		Less than 12 Months12 Months or Greater
($ in millions)No. of Sec.Fair
Value		Unrealized
Losses		No. of Sec.Fair
 Value		Unrealized
Losses
December 31, 2020
U.S. government obligations9 $1,511.0 $(3.7)9 $1,511.0 $(3.7)0 $0 $0 
State and local government obligations30 208.7 (0.7)30 208.7 (0.7)0 0 0 
Corporate debt securities7 129.4 (0.1)7 129.4 (0.1)0 0 0 
Residential mortgage-backed securities21 44.4 (0.9)0 0 0 21 44.4 (0.9)
Commercial mortgage-backed securities43 893.3 (10.0)9 93.6 (0.3)34 799.7 (9.7)
Other asset-backed securities22 183.7 (0.5)9 74.4 (0.1)13 109.3 (0.4)
Redeemable preferred stocks1 11.0 (1.4)0 0 0 1 11.0 (1.4)
Total fixed maturities133 $2,981.5 $(17.3)64 $2,017.1 $(4.9)69 $964.4 $(12.4)

The increase in the number of securities in an unrealized loss position since both June 30, 2020 and December 31, 2020, was primarily the result of an increase in interest rates. None of the securities in the table above had their credit ratings downgraded during the second quarter 2021.

A review of the securities in an unrealized loss position indicated that the issuers were current with respect to their interest obligations and that there was no evidence of deterioration of the current cash flow projections that would indicate we would not receive the remaining principal at maturity.
Allowance For Credit and Uncollectible Losses We are required to measure the amount of potential credit losses for all fixed-maturity securities in an unrealized loss position. We did not record any allowances for credit losses or any write-offs for amounts deemed to be uncollectible for the first six months of 2021 and did not have a credit loss allowance balance as of June 30, 2021 and 2020, or December 31, 2020. We considered several factors and inputs related to the individual securities as part of this analysis, including:
•current performance indicators on the business model or underlying assets (e.g., delinquency rates, foreclosure rates, and default rates);
•credit support (via current levels of subordination);
•historical credit ratings; and
•updated cash flow expectations based upon these performance indicators.

In order to determine the amount of credit loss, if any, we initially reviewed securities in a loss position to determine whether it was likely that we would be required, or whether we intended, to sell any of the securities prior to the recovery of their respective cost bases (which could be maturity). If we were likely to, or intended to, sell prior to a potential recovery, we would write off the unrealized loss. For those securities that we determined we were not likely to, or did not intend to, sell prior to a potential recovery, we calculated the net present value (NPV) of the cash flows expected (i.e., expected recovery value) using the current book yield for each security. The NPV was then compared to the security’s current amortized value to determine if a credit loss existed. In the event that the NPV was below the amortized value, and the amount was determined to be material individually, or in aggregate, a credit loss would be deemed to exist, and either an allowance for credit losses would be created, or if an allowance already existed, either a recovery of the previous allowance, or an incremental loss, would be recorded to net realized gains (losses) on securities.
As of June 30, 2021, we believe none of the unrealized losses relate to material credit losses on any specific securities, or in the aggregate, based on our review. We continue to expect all the securities in our portfolio to pay their principal and interest obligations.

We reviewed our accrued investment income outstanding on those securities in an unrealized loss position at June 30, 2021, to determine if the accrued interest amounts were deemed to be uncollectible. Based on our analysis, we believe the issuers have sufficient liquidity and capital reserves to meet their current interest and future principal, obligations and, therefore, did not write off any accrued income as uncollectible at June 30, 2021.
Realized Gains (Losses) The components of net realized gains (losses) for the three and six months ended June 30, were:
 Three MonthsSix Months
(millions)2021202020212020
Gross realized gains on security sales
Available-for-sale securities:
U.S. government obligations$11.3 $224.5 $77.9 $475.6 
State and local government obligations14.1 13.0 44.3 15.0 
Corporate and other debt securities40.1 34.3 60.8 66.7 
Residential mortgage-backed securities0.3 0 0.3 0 
Commercial mortgage-backed securities9.5 4.3 39.3 10.4 
Other asset-backed securities0 0 0.7 0 
Redeemable preferred stocks1.5 0 1.5 0 
Total available-for-sale securities76.8 276.1 224.8 567.7 
Equity securities:
Nonredeemable preferred stocks6.4 0.1 23.7 19.7 
Common equities345.0 9.1 346.1 75.1 
Total equity securities351.4 9.2 369.8 94.8 
   Subtotal gross realized gains on security sales428.2 285.3 594.6 662.5 
Gross realized losses on security sales
Available-for-sale securities:
U.S. government obligations(6.9)(0.6)(26.5)(3.3)
State and local government obligations(2.8)0 (3.0)0 
Corporate and other debt securities(3.3)(5.5)(5.4)(6.5)
Commercial mortgage-backed securities(0.5)(9.8)(1.1)(9.8)
Other asset-backed securities(0.3)0 (0.4)0 
Total available-for-sale securities(13.8)(15.9)(36.4)(19.6)
Equity securities:
Nonredeemable preferred stocks(0.4)(3.0)(0.4)(7.4)
Common equities(3.9)(6.4)(3.9)(60.3)
Total equity securities(4.3)(9.4)(4.3)(67.7)
   Subtotal gross realized losses on security sales(18.1)(25.3)(40.7)(87.3)
Net realized gains (losses) on security sales
Available-for-sale securities:
U.S. government obligations4.4 223.9 51.4 472.3 
State and local government obligations11.3 13.0 41.3 15.0 
Corporate and other debt securities36.8 28.8 55.4 60.2 
Residential mortgage-backed securities0.3 0 0.3 0 
Commercial mortgage-backed securities9.0 (5.5)38.2 0.6 
Other asset-backed securities(0.3)0 0.3 0 
Redeemable preferred stocks1.5 0 1.5 0 
Total available-for-sale securities63.0 260.2 188.4 548.1 
Equity securities:
Nonredeemable preferred stocks6.0 (2.9)23.3 12.3 
Common equities341.1 2.7 342.2 14.8 
Total equity securities347.1 (0.2)365.5 27.1 
  Subtotal net realized gains (losses) on security sales410.1 260.0 553.9 575.2 
Net holding period gains (losses)
Hybrid securities9.9 24.8 (1.0)(6.4)
Equity securities44.3 606.0 496.7 (231.6)
  Subtotal net holding period gains (losses)54.2 630.8 495.7 (238.0)
Other asset impairment(2.5)0 (2.5)0 
     Total net realized gains (losses) on securities$461.8 $890.8 $1,047.1 $337.2 
Realized gains (losses) on securities sold are computed using the first-in-first-out method. The other asset impairment loss was recorded as a result of our investment in a federal new markets tax credit fund, which was entered into during the second quarter 2021, and reported in other assets in the consolidated balance sheet.
The following table reflects our holding period realized gains (losses) on equity securities recognized for the three and six months ended June 30, 2021 and 2020, for equity securities held at the respective quarter end:
Three MonthsSix Months
(millions)2021202020212020
Total net gains (losses) recognized during the period on equity securities$391.4 $605.8 $862.2 $(204.5)
Less: Net gains (losses) recognized on equity securities sold during the period347.1 (0.2)365.5 27.1 
Net holding period gains (losses) recognized during the period on equity securities held at period end$44.3 $606.0 $496.7 $(231.6)

Net Investment Income The components of net investment income for the three and six months ended June 30, were: 
Three MonthsSix Months
(millions)2021202020212020
Available-for-sale securities:
   Fixed maturities:
U.S. government obligations$37.4 $35.7 $67.8 $98.3 
State and local government obligations11.5 16.1 24.9 25.7 
Corporate debt securities73.2 76.6 158.4 134.6 
Residential mortgage-backed securities2.8 3.8 6.2 8.0 
Commercial mortgage-backed securities34.4 42.6 70.2 76.9 
Other asset-backed securities15.1 24.8 31.0 54.0 
Redeemable preferred stocks2.3 2.1 4.8 10.0 
Total fixed maturities176.7 201.7 363.3 407.5 
   Short-term investments0.7 13.7 2.2 20.7 
    Total available-for-sale securities177.4 215.4 365.5 428.2 
Equity securities:
Nonredeemable preferred stocks17.3 14.7 35.2 28.5 
Common equities16.0 13.7 30.2 28.3 
    Total equity securities33.3 28.4 65.4 56.8 
           Investment income210.7 243.8 430.9 485.0 
           Investment expenses(6.3)(4.5)(11.9)(9.8)
         Net investment income$204.4 $239.3 $419.0 $475.2 
The amount of investment income (interest and dividends) we earn varies based on the average assets held during the year and the book yields of the securities in our portfolio. On a year-over-year basis, investment income decreased 11% for the first six months of 2021, compared to the same period last year, due to a decrease in the portfolio yield, which was partially offset by an increase in average assets. The recurring investment book yield decreased about 23% for the first six months of 2021, compared to the same period in 2020, as a result of investing cash from operations and reinvesting cash from sales, maturities, paydowns, and other redemptions at market yields that were significantly lower than the portfolio’s overall yield. The income reduction from the negative yield change was partially offset by an increase in income earned as a result of investing the $1.0 billion of proceeds from the debt issued during March 2020, as well as strong premium growth and underwriting profitability, net of payments of our common and preferred stock dividends.