Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block]

The valuation of assets measured at fair value in the Company’s Condensed Consolidated Balance Sheet at December 31, 2014 is summarized below.



	Fair Value Measurements
(Dollars in Millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Fixed Maturities:
U.S. Government and Government Agencies and Authorities	$	129.2	$	216.3	$	—	$	345.5
States and Political Subdivisions	—		1,477.1		—		1,477.1
Corporate Securities:
Bonds and Notes	—		2,517.9		360.6		2,878.5
Redeemable Preferred Stocks	—		—		6.7		6.7
Collateralized Loan Obligations	—		—		64.4		64.4
Other Mortgage- and Asset-backed	—		1.5		3.9		5.4
Total Investments in Fixed Maturities	129.2		4,212.8		435.6		4,777.6
Equity Securities:
Preferred Stocks:
Finance, Insurance and Real Estate	—		84.7		5.0		89.7
Other Industries	—		3.4		16.4		19.8
Common Stocks:
Manufacturing	50.9		5.7		0.6		57.2
Other Industries	59.0		0.8		16.8		76.6
Other Equity Interests:
Exchange Traded Funds	202.7		—		—		202.7
Limited Liability Companies and Limited Partnerships	—		—		186.2		186.2
Total Investments in Equity Securities	312.6		94.6		225.0		632.2
Fair Value Option Investments:
Limited Liability Companies and Limited Partnerships	—		—		53.3		53.3
Other Investments:
Trading Securities	4.9		—		—		4.9
Total	$	446.7	$	4,307.4	$	713.9	$	5,468.0

The valuation of assets measured at fair value in the Company’s Condensed Consolidated Balance Sheet at March 31, 2015 is summarized below.



	Fair Value Measurements
(Dollars in Millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Fixed Maturities:
U.S. Government and Government Agencies and Authorities	$	130.7	$	209.6	$	—	$	340.3
States and Political Subdivisions	—		1,490.2		—		1,490.2
Corporate Securities:
Bonds and Notes	—		2,516.1		374.8		2,890.9
Redeemable Preferred Stocks	—		—		6.4		6.4
Collateralized Loan Obligations	—		—		69.9		69.9
Other Mortgage- and Asset-backed	—		1.5		3.9		5.4
Total Investments in Fixed Maturities	130.7		4,217.4		455.0		4,803.1
Equity Securities:
Preferred Stocks:
Finance, Insurance and Real Estate	—		85.8		4.7		90.5
Other Industries	—		7.1		12.1		19.2
Common Stocks:
Manufacturing	49.5		5.9		0.8		56.2
Other Industries	51.5		0.8		15.6		67.9
Other Equity Interests:
Exchange Traded Funds	205.1		—		—		205.1
Limited Liability Companies and Limited Partnerships	—		—		189.7		189.7
Total Investments in Equity Securities	306.1		99.6		222.9		628.6
Fair Value Option Investments:
Limited Liability Companies and Limited Partnerships	—		—		54.2		54.2
Other Investments:
Trading Securities	4.9		—		—		4.9
Total	$	441.7	$	4,317.0	$	732.1	$	5,490.8

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments in corporate securities classified as Level 3 at March 31, 2015.



(Dollars in Millions)	Unobservable Input	Total Fair Value		Range of Unobservable Inputs					Weighted-average Yield
Investment-grade	Market Yield	$	109.0	2.6	%	-	6.9	%	3.6	%
Non-investment-grade:
Senior Debt	Market Yield	93.3		3.6		-	14.5		9.9
Junior Debt	Market Yield	159.4		8.2		-	21.5		13.4
Collateralized Loan Obligations	Market Yield	69.9		2.5		-	7.7		4.9
Other	Various	23.4
Total Fixed Maturity Investments in Corporate Securities		$	455.0

Note 11 - Fair Value Measurements (continued)



(Dollars in Millions)	Unobservable Input	Total Fair Value		Range of Unobservable Inputs					Weighted-average Yield
Investment-grade	Market Yield	$	107.0	2.8	%	-	6.9	%	3.9	%
Non-investment-grade:
Senior Debt	Market Yield	92.7		3.8		-	14.5		10.6
Junior Debt	Market Yield	149.9		8.2		-	21.0		13.4
Collateralized Loan Obligations	Market Yield	64.4		2.7		-	8.1		5.2
Other Debt	Various	21.6
Total Fixed Maturity Investments in Corporate Securities		$	435.6

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the three months ended March 31, 2015 is presented below.



	Fixed Maturities										Equity Securities
(Dollars in Millions)	Corporate Bonds and Notes			Redeemable Preferred Stocks			Collateralized Loan Obligations		Other Mortgage- and Asset- backed		Preferred and Common Stocks			Other Equity Interests			Fair Value Option		Total
Balance at Beginning of Period	$	360.6		$	6.7		$	64.4	$	3.9	$	38.8		$	186.2		$	53.3	$	713.9
Total Gains (Losses):
Included in Condensed Consolidated Statement of Income	(2.3		)	—			0.1		—		(0.8		)	(1.0		)	0.9		(3.1		)
Included in Other Comprehensive Income	2.4			(0.3		)	1.3		—		(0.7		)	(1.2		)	—		1.5
Purchases	36.2			—			4.1		—		0.4			11.2			—		51.9
Settlements	(4.2		)	—			—		—		—			(9.6		)	—		(13.8		)
Sales	(17.9		)	—			—		—		(0.7		)	—			—		(18.6		)
Transfers into Level 3	—			—			—		—		—			4.1			—		4.1
Transfers out of Level 3	—			—			—		—		(3.8		)	—			—		(3.8		)
Balance at End of Period	$	374.8		$	6.4		$	69.9	$	3.9	$	33.2		$	189.7		$	54.2	$	732.1

Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the three months ended March 31, 2014 is presented below.



	Fixed Maturities											Equity Securities
(Dollars in Millions)	Corporate Bonds and Notes			Redeemable Preferred Stocks			Collateralized Loan Obligations		Other Mortgage- and Asset- backed			Preferred and Common Stocks		Other Equity Interests			Total
Balance at Beginning of Period	$	364.1		$	7.4		$	44.7	$	4.5		$	32.1	$	173.9		$	626.7
Total Gains (Losses):
Included in Condensed Consolidated Statement of Income	0.1			—			—		0.1			—		0.2			0.4
Included in Other Comprehensive Income	2.5			0.2			0.3		—			3.4		6.9			13.3
Purchases	48.3			—			—		—			2.6		12.3			63.2
Settlements	(24.8		)	(0.1		)	—		(0.8		)	—		(5.3		)	(31.0		)
Sales	(10.2		)	—			—		—			—		(0.7		)	(10.9		)
Transfers out of Level 3	(0.6		)	—			—		—			—		—			(0.6		)
Balance at End of Period	$	379.4		$	7.5		$	45.0	$	3.8		$	38.1	$	187.3		$	661.1

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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