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Investments
 6 Months Ended
Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]  
Investments Investments — The following tables present the composition of our investment portfolio by major security type. 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 (loss), 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, 2022
Available-for-sale securities:
Fixed maturities:
U.S. government obligations$19,832.3 $3.7 $(1,116.8)$0 $18,719.2 36.0 %
State and local government obligations2,281.9 0.6 (147.1)0 2,135.4 4.1 
Foreign government obligations17.7 0 (1.3)0 16.4 0.1 
Corporate debt securities10,869.6 1.6 (655.0)(48.4)10,167.8 19.6 
Residential mortgage-backed securities826.5 0.5 (10.7)(17.0)799.3 1.5 
Commercial mortgage-backed securities6,739.4 1.2 (646.0)0 6,094.6 11.7 
Other asset-backed securities5,239.4 0.1 (201.7)(1.8)5,036.0 9.7 
Redeemable preferred stocks222.0 0 (5.5)(12.7)203.8 0.4 
Total fixed maturities46,028.8 7.7 (2,784.1)(79.9)43,172.5 83.1 
Short-term investments4,611.8 0 0 0 4,611.8 8.9 
       Total available-for-sale securities50,640.6 7.7 (2,784.1)(79.9)47,784.3 92.0 
Equity securities:
Nonredeemable preferred stocks1,522.5 0 0 (162.0)1,360.5 2.6 
Common equities783.6 0 0 2,001.1 2,784.7 5.4 
       Total equity securities2,306.1 0 0 1,839.1 4,145.2 8.0 
  Total portfolio1
$52,946.7 $7.7 $(2,784.1)$1,759.2 $51,929.5 100.0 %
($ 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 
Foreign government obligations12.7 0 0 0 12.7 0.1 
Corporate debt securities10,314.8 372.1 (9.9)1.2 10,678.2 20.9 
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 stocks1,511.2 0 0 98.6 1,609.8 3.2 
Common equities1,238.4 0 0 3,353.0 4,591.4 9.0 
       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 %

Note: Included in the table above is a $52.5 million fair value ($25.0 million cost) reclassification from nonredeemable preferred stock to common equities to reflect the prior year conversion of a security and to conform to the current year classification. 
($ in millions)CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Net
Holding
Period
Gains
(Losses)		Fair
Value		% of
Total
Fair
Value
December 31, 2021
Available-for-sale securities:
Fixed maturities:
U.S. government obligations$18,586.1 $92.9 $(190.8)$0 $18,488.2 35.9 %
State and local government obligations2,162.6 36.7 (14.0)0 2,185.3 4.2 
Foreign government obligations17.9 0 0 0 17.9 0.1 
Corporate debt securities10,526.2 202.6 (33.4)(3.3)10,692.1 20.7 
Residential mortgage-backed securities787.7 2.3 (0.6)0.6 790.0 1.5 
Commercial mortgage-backed securities6,561.0 38.9 (64.3)0 6,535.6 12.7 
Other asset-backed securities4,981.8 13.3 (12.4)(0.4)4,982.3 9.7 
Redeemable preferred stocks170.9 0.7 (0.5)10.6 181.7 0.4 
Total fixed maturities43,794.2 387.4 (316.0)7.5 43,873.1 85.2 
Short-term investments942.6 0 0 0 942.6 1.8 
       Total available-for-sale securities44,736.8 387.4 (316.0)7.5 44,815.7 87.0 
Equity securities:
Nonredeemable preferred stocks1,571.8 0 0 68.1 1,639.9 3.2 
Common equities1,264.1 0 0 3,794.4 5,058.5 9.8 
       Total equity securities2,835.9 0 0 3,862.5 6,698.4 13.0 
  Total portfolio1
$47,572.7 $387.4 $(316.0)$3,870.0 $51,514.1 100.0 %
1 Includes $0, $412.1 million, and $143.4 million of net unsettled security purchase transactions at June 30, 2022 and 2021, and December 31, 2021, respectively, with the offsetting payable included in other liabilities.
The total fair value of the portfolio at June 30, 2022 and 2021, and December 31, 2021, included $4.9 billion, $3.3 billion, and $4.2 billion, respectively, of securities held in a consolidated, non-insurance subsidiary of the holding company, net of unsettled security transactions.

At June 30, 2022, bonds and certificates of deposit in the principal amount of $468.9 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, 2022 or 2021, or December 31, 2021. At June 30, 2022, we did not hold any debt securities that were non-income producing during the preceding 12 months.
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 2022 and 2021, but did not have any open positions at June 30, 2022 and 2021, or December 31, 2021. 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)20222021December 31, 2021
Fixed Maturities:
Corporate debt securities$513.8 $296.7 $479.1 
Residential mortgage-backed securities604.3 163.1 536.2 
Other asset-backed securities62.3 66.9 89.2 
Redeemable preferred stocks136.3 132.2 130.8 
Total hybrid securities$1,316.7 $658.9 $1,235.3 
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, 2022, was:
(millions)CostFair Value
Less than one year$5,294.8 $5,210.9 
One to five years27,925.6 26,532.2 
Five to ten years12,763.0 11,389.5 
Ten years or greater45.4 39.9 
Total$46,028.8 $43,172.5 
Asset-backed securities are classified in the maturity distribution table based upon their projected cash flows. All other securities that do not have a single maturity date are reported based upon expected average maturity. Contractual maturities may differ from expected maturities because the issuers of the securities may have the right to call or prepay obligations.
Gross Unrealized Losses The following tables show the composition of gross unrealized losses by major security type and by the length of time that individual securities have been in a continuous unrealized loss position:
 Total No. of Sec.Total
Fair
Value		Gross
Unrealized
Losses		Less than 12 Months12 Months or Greater
($ in millions)No. of Sec.Fair
Value		Unrealized
Losses		No. of Sec.Fair
 Value		Unrealized
Losses
June 30, 2022
U.S. government obligations140 $17,907.2 $(1,116.8)114 $15,254.3 $(874.0)26 $2,652.9 $(242.8)
State and local government obligations331 1,954.9 (147.1)318 1,816.1 (126.1)13 138.8 (21.0)
Foreign government obligations1 16.4 (1.3)1 16.4 (1.3)0 0 0 
Corporate debt securities466 9,174.2 (655.0)435 8,843.2 (612.0)31 331.0 (43.0)
Residential mortgage-backed securities39 183.7 (10.7)32 172.1 (8.8)7 11.6 (1.9)
Commercial mortgage-backed securities254 6,058.4 (646.0)234 5,624.1 (569.8)20 434.3 (76.2)
Other asset-backed securities289 4,915.7 (201.7)269 4,611.8 (188.9)20 303.9 (12.8)
Redeemable preferred stocks5 67.5 (5.5)4 56.7 (3.8)1 10.8 (1.7)
Total fixed maturities1,525 $40,278.0 $(2,784.1)1,407 $36,394.7 $(2,384.7)118 $3,883.3 $(399.4)

 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
December 31, 2021
U.S. government obligations92 $14,745.8 $(190.8)85 $13,790.8 $(158.5)7 $955.0 $(32.3)
State and local government obligations127 954.2 (14.0)122 927.3 (13.1)5 26.9 (0.9)
Corporate debt securities220 3,496.6 (33.4)219 3,491.7 (33.3)1 4.9 (0.1)
Residential mortgage-backed securities20 138.6 (0.6)14 135.4 (0.5)6 3.2 (0.1)
Commercial mortgage-backed securities168 4,315.4 (64.3)165 4,295.0 (63.9)3 20.4 (0.4)
Other asset-backed securities178 3,204.7 (12.4)176 3,200.6 (12.3)2 4.1 (0.1)
Redeemable preferred stocks1 12.0 (0.5)0 0 0 1 12.0 (0.5)
Total fixed maturities806 $26,867.3 $(316.0)781 $25,840.8 $(281.6)25 $1,026.5 $(34.4)
The increase in the number of securities in an unrealized loss position since both June 30, 2021 and December 31, 2021, was primarily the result of an increase in interest rates. As of June 30, 2022, we had two corporate debt securities and one residential mortgage-backed security that had their credit ratings downgraded during the quarter, with a combined fair value of $18.3 million and an unrealized loss of $2.1 million.
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 during the first six months of 2022 or 2021, and did not have a material credit loss allowance balance as of June 30, 2022 and 2021, or December 31, 2021. We considered several factors and inputs related to the individual securities as part of our analysis. The methodology and significant inputs used to measure the amount of credit losses in our portfolio included:

•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 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 currently 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, 2022 and 2021, and December 31, 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.
In addition, we reviewed our accrued investment income outstanding on those securities in an unrealized loss position at June 30, 2022 and 2021, and December 31, 2021, to determine if the accrued interest amounts were determined 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, 2022 and 2021, or December 31, 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)2022202120222021
Gross realized gains on security sales
Available-for-sale securities:
U.S. government obligations$1.3 $11.3 $4.6 $77.9 
State and local government obligations0 14.1 0 44.3 
Corporate and other debt securities2.0 40.1 6.5 60.8 
Residential mortgage-backed securities0.6 0.3 0.7 0.3 
Commercial mortgage-backed securities0 9.5 0 39.3 
Other asset-backed securities0 0 0.1 0.7 
Redeemable preferred stocks0 1.5 0 1.5 
Total available-for-sale securities3.9 76.8 11.9 224.8 
Equity securities:
Nonredeemable preferred stocks0.2 6.4 17.5 23.7 
Common equities830.6 345.0 831.1 346.1 
Total equity securities830.8 351.4 848.6 369.8 
   Subtotal gross realized gains on security sales834.7 428.2 860.5 594.6 
Gross realized losses on security sales
Available-for-sale securities:
U.S. government obligations(164.3)(6.9)(233.5)(26.5)
State and local government obligations0 (2.8)(1.0)(3.0)
Corporate and other debt securities(30.1)(3.3)(37.8)(5.4)
Commercial mortgage-backed securities(13.8)(0.5)(13.8)(1.1)
Other asset-backed securities(2.0)(0.3)(2.1)(0.4)
Short-term investments(0.3)0 (0.3)0 
Total available-for-sale securities(210.5)(13.8)(288.5)(36.4)
Equity securities:
Nonredeemable preferred stocks(0.2)(0.4)(1.9)(0.4)
Common equities(77.4)(3.9)(78.0)(3.9)
Total equity securities(77.6)(4.3)(79.9)(4.3)
   Subtotal gross realized losses on security sales(288.1)(18.1)(368.4)(40.7)
Net realized gains (losses) on security sales
Available-for-sale securities:
U.S. government obligations(163.0)4.4 (228.9)51.4 
State and local government obligations0 11.3 (1.0)41.3 
Corporate and other debt securities(28.1)36.8 (31.3)55.4 
Residential mortgage-backed securities0.6 0.3 0.7 0.3 
Commercial mortgage-backed securities(13.8)9.0 (13.8)38.2 
Other asset-backed securities(2.0)(0.3)(2.0)0.3 
Redeemable preferred stocks0 1.5 0 1.5 
Short-term investments(0.3)0 (0.3)0 
Total available-for-sale securities(206.6)63.0 (276.6)188.4 
Equity securities:
Nonredeemable preferred stocks0 6.0 15.6 23.3 
Common equities753.2 341.1 753.1 342.2 
Total equity securities753.2 347.1 768.7 365.5 
  Subtotal net realized gains (losses) on security sales546.6 410.1 492.1 553.9 
Net holding period gains (losses)
Hybrid securities(48.4)9.9 (87.4)(1.0)
Equity securities(1,673.8)44.3 (2,023.4)496.7 
  Subtotal net holding period gains (losses)(1,722.2)54.2 (2,110.8)495.7 
Other asset impairment(2.1)(2.5)(4.3)(2.5)
     Total net realized gains (losses) on securities$(1,177.7)$461.8 $(1,623.0)$1,047.1 
Realized gains (losses) on securities sold are computed using the first-in-first-out method. During the second quarter 2022, we sold securities in our common equity portfolio, which were in a realized gain position, as part of our plan to incrementally reduce risk in the portfolio in response to the likelihood of a more difficult economic environment over the near term. The majority of the sales in the fixed-maturity portfolio were from U.S. Treasuries, which were sold to shorten duration. The loss from the fixed-maturity sales reflects the continued rise in interest rates during the second quarter 2022, which resulted in valuation declines for most of our available-for-sale securities. The other asset impairment loss was recorded as a result of our investment in a federal new markets tax credit fund, which was entered into during the second quarter 2021, and reported in other assets in the consolidated balance sheets.
The following table reflects our holding period realized gains (losses) recognized on equity securities held at the respective quarter ends:
Three MonthsSix Months
(millions)2022202120222021
Total net gains (losses) recognized during the period on equity securities$(920.6)$391.4 $(1,254.7)$862.2 
Less: Net gains (losses) recognized on equity securities sold during the period753.2 347.1 768.7 365.5 
Net holding period gains (losses) recognized during the period on equity securities held at period end$(1,673.8)$44.3 $(2,023.4)$496.7 
Net Investment Income The components of net investment income for the three and six months ended June 30, were: 
Three MonthsSix Months
(millions)2022202120222021
Available-for-sale securities:
   Fixed maturities:
U.S. government obligations$67.9 $37.4 $119.3 $67.8 
State and local government obligations10.3 11.5 19.5 24.9 
Foreign government obligations0 0 0.1 0 
Corporate debt securities75.5 73.2 143.6 158.4 
Residential mortgage-backed securities9.6 2.8 14.4 6.2 
Commercial mortgage-backed securities46.5 34.4 89.8 70.2 
Other asset-backed securities39.3 15.1 64.4 31.0 
Redeemable preferred stocks3.0 2.3 5.5 4.8 
Total fixed maturities252.1 176.7 456.6 363.3 
   Short-term investments4.4 0.7 4.8 2.2 
    Total available-for-sale securities256.5 177.4 461.4 365.5 
Equity securities:
Nonredeemable preferred stocks18.1 17.3 36.3 35.2 
Common equities17.8 16.0 36.9 30.2 
    Total equity securities35.9 33.3 73.2 65.4 
           Investment income292.4 210.7 534.6 430.9 
           Investment expenses(5.9)(6.3)(11.6)(11.9)
         Net investment income$286.5 $204.4 $523.0 $419.0 
On a year-over-year basis, investment income (interest and dividends) increased 39% and 24% for the first three and six months of 2022, respectively, compared to the same periods last year, due to an increase in average assets resulting from premium growth, underwriting profitability, and investing the $1.5 billion of proceeds from debt issued in March 2022. The recurring investment book yield increased 19% for the second quarter 2022 and 7% for the first six months of 2022, compared to the same periods in 2021, reflecting investing new cash and cash from maturities in higher interest rate securities given the rising interest rate environment.