Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis

The valuation of assets measured at fair value in the Company’s Consolidated Balance Sheet at December 31, 2016 is summarized below.

DOLLARS IN MILLIONS	Fair Value Measurements								Fair Value
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Measured at Net Asset Value
Fixed Maturities:
U.S. Government and Government Agencies and Authorities	$	119.5	$	216.8	$	—	—		$	336.3
States and Political Subdivisions	—		1,711.1		3.8		—		1,714.9
Foreign Governments	—		3.4		—		—		3.4
Corporate Securities:
Bonds and Notes	—		2,541.6		403.2		—		2,944.8
Redeemable Preferred Stocks	—		—		0.6		—		0.6
Collateralized Loan Obligations	—		19.3		103.5		—		122.8
Other Mortgage- and Asset-backed	—		2.1		—		—		2.1
Total Investments in Fixed Maturities	119.5		4,494.3		511.1		—		5,124.9
Equity Securities:
Preferred Stocks:
Finance, Insurance and Real Estate	—		59.6		—		—		59.6
Other Industries	—		11.4		11.5		—		22.9
Common Stocks:
Finance, Insurance and Real Estate	26.4		—		7.1		—		33.5
Other Industries	0.4		0.2		11.1		—		11.7
Other Equity Interests:
Exchange Traded Funds	144.4		—		—		—		144.4
Limited Liability Companies and Limited Partnerships	—		—		40.9		168.7		209.6
Total Investments in Equity Securities	171.2		71.2		70.6		168.7		481.7
Fair Value Option Investments:
Limited Liability Companies and Limited Partnerships Hedge Funds	—		—		—		111.4		111.4
Other Investments:
Trading Securities	5.3		—		—		—		5.3
Other Assets:
Derivative Instrument Classified as Cash Flow Hedge	—		1.6		—		—		1.6
Total	$	296.0	$	4,567.1	$	581.7	$	280.1	$	5,724.9

At December 31, 2016, the Company had unfunded commitments to invest an additional $135.2 million in certain limited liability investment companies and limited partnerships that will be included in Other Equity Interests when funded.

NOTE 22. FAIR VALUE MEASUREMENTS (Continued)

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

DOLLARS IN MILLIONS	Fair Value Measurements								Fair Value
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Measured at Net Asset Value
Fixed Maturities:
U.S. Government and Government Agencies and Authorities	$	124.9	$	195.7	$	—	$	—	$	320.6
States and Political Subdivisions	—		1,622.6		—		—		1,622.6
Corporate Securities:
Bonds and Notes	—		2,376.5		436.3		—		2,812.8
Redeemable Preferred Stocks	—		—		3.8		—		3.8
Collateralized Loan Obligations	—		—		87.3		—		87.3
Other Mortgage- and Asset-backed	—		1.4		3.8		—		5.2
Total Investments in Fixed Maturities	124.9		4,196.2		531.2		—		4,852.3
Equity Securities:
Preferred Stocks:
Finance, Insurance and Real Estate	—		79.8		5.1		—		84.9
Other Industries	—		6.2		12.8		—		19.0
Common Stocks:
Finance, Insurance and Real Estate	16.6		6.6		—		—		23.2
Other Industries	0.6		0.8		12.1		—		13.5
Other Equity Interests:
Exchange Traded Funds	177.1		—		—		—		177.1
Limited Liability Companies and Limited Partnerships	—		—		45.6		159.9		205.5
Total Investments in Equity Securities	194.3		93.4		75.6		159.9		523.2
Fair Value Option Investments:
Limited Liability Companies and Limited Partnerships Hedge Funds	—		—		—		164.5		164.5
Other Investments:
Trading Securities	4.7		—		—		—		4.7
Total	$	323.9	$	4,289.6	$	606.8	324.4		$	5,544.7

Fair Value Inputs, Assets, Quantitative Information

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 December 31, 2016.

DOLLARS IN MILLIONS	Unobservable Input	Total Fair Value		Range of Unobservable Inputs					Weighted Average Yield
Investment-grade	Market Yield	$	106.1	2.7	%	-	5.1	%	3.8	%
Non-investment-grade:
Senior Debt	Market Yield	142.2		4.8		-	14.0		9.6
Junior Debt	Market Yield	143.3		9.5		-	20.0		13.0
Collateralized Loan Obligations	Market Yield	103.5		3.7		-	9.9		6.3
Other	Various	16.0
Total Fixed Maturity Investments in Corporate Securities		$	511.1

NOTE 22. FAIR VALUE MEASUREMENTS (Continued)

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 December 31, 2015.

DOLLARS IN MILLIONS	Unobservable Input	Total Fair Value		Range of Unobservable Inputs					Weighted Average Yield
Investment-grade	Market Yield	$	98.7	2.6	%	-	6.9	%	4.4	%
Non-investment-grade:
Senior Debt	Market Yield	114.2		5.9		-	15.3		10.4
Junior Debt	Market Yield	216.3		8.2		-	26.2		13.6
Collateralized Loan Obligations	Market Yield	87.3		3.1		-	10.8		6.1
Other	Various	14.7
Total Fixed Maturity Investments in Corporate Securities		$	531.2

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the year ended December 31, 2016 is presented below.

DOLLARS IN MILLIONS	Fixed Maturities															Equity Securities
	Corporate Bonds and Notes			States and Political Sub-divisions			Redeemable Preferred Stocks			Collateralized Loan Obligations			Other Mortgage- and Asset- backed			Preferred and Common Stocks			Other Equity Interests			Total
Balance at Beginning of Year	$	436.3		$	—		$	3.8		$	87.3		$	3.8		$	30.0		$	45.6		$	606.8
Total Gains (Losses):
Included in Consolidated Statements of Income	(23.0		)	(0.3		)	—			—			0.4			(1.7		)	(1.6		)	(26.2		)
Included in Other Comprehensive Income	0.9			—			—			4.3			(0.3		)	3.4			(2.4		)	5.9
Purchases	203.7			—			—			29.1			—			7.9			3.9			244.6
Settlements	(85.4		)	—			(3.2		)	(5.0		)	(3.0		)	(5.2		)	—			(101.8		)
Sales	(114.5		)	—			—			(1.9		)	—			(4.7		)	(4.6		)	(125.7		)
Transfers into Level 3	—			4.1			—			—			—			—			—			4.1
Transfers out of Level 3	(14.8		)	—			—			(10.3		)	(0.9		)	—			—			(26.0		)
Balance at End of Year	$	403.2		$	3.8		$	0.6		$	103.5		$	—		$	29.7		$	40.9		$	581.7

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

DOLLARS IN MILLIONS	Fixed Maturities												Equity Securities						Total
	Corporate Bonds and Notes			Redeemable Preferred Stocks			Collateralized Loan Obligations			Other Mortgage- and Asset- backed			Preferred and Common Stocks			Other Equity Interests
Balance at Beginning of Year	$	360.6		$	6.7		$	64.4		$	3.9		$	38.8		$	44.0		$	518.4
Total Gains (Losses):
Included in Consolidated Statement of Income	(9.4		)	(1.6		)	0.6			—			(2.6		)	(5.2		)	(18.2		)
Included in Other Comprehensive Income	(7.4		)	(0.7		)	(2.2		)	(0.1		)	1.4			1.7			(7.3		)
Purchases	241.6			—			39.5			1.3			8.1			6.3			296.8
Settlements	(65.5		)	(0.6		)	(7.5		)	(0.1		)	(0.7		)	(1.2		)	(75.6		)
Sales	(73.6		)	—			(7.5		)	(1.2		)	(5.0		)	—			(87.3		)
Transfers into Level 3	—			—			—			—			—			—			—
Transfers out of Level 3	(10.0		)	—			—			—			(10.0		)	—			(20.0		)
Balance at End of Year	$	436.3		$	3.8		$	87.3		$	3.8		$	30.0		$	45.6		$	606.8