Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2017

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

The valuation of assets and liabilities measured at fair value in the Company’s Condensed Consolidated Balance Sheet at March 31, 2017 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)		Measured at Net Asset Value		Total Fair Value
Fixed Maturities:
U.S. Government and Government Agencies and Authorities	$	119.6	$	242.9		$	—	$	—	$	362.5
States and Political Subdivisions	—		1,740.7			2.6		—		1,743.3
Foreign Governments	—		4.5			—		—		4.5
Corporate Securities:
Bonds and Notes	3.6		2,609.6			391.2		—		3,004.4
Redeemable Preferred Stocks	—		—			0.2		—		0.2
Collateralized Loan Obligations	—		27.6			95.8		—		123.4
Other Mortgage- and Asset-backed	—		2.0			—		—		2.0
Total Investments in Fixed Maturities	123.2		4,627.3			489.8		—		5,240.3
Equity Securities:
Preferred Stocks:
Finance, Insurance and Real Estate	—		57.3			—		—		57.3
Other Industries	—		12.0			11.6		—		23.6
Common Stocks:
Finance, Insurance and Real Estate	3.6		—			7.1		—		10.7
Other Industries	0.4		0.3			10.4		—		11.1
Other Equity Interests:
Exchange Traded Funds	192.3		—			—		—		192.3
Limited Liability Companies and Limited Partnerships	—		—			32.4		170.0		202.4
Total Investments in Equity Securities	196.3		69.6			61.5		170.0		497.4
Fair Value Option Investments:
Limited Liability Companies and Limited Partnerships Hedge Funds	—		—			—		90.5		90.5
Other Investments:
Trading Securities	5.7		—			—		—		5.7
Other Liabilities:
Derivative Instrument Classified as Cash Flow Hedge	—		(0.4		)	—		—		(0.4		)
Total	$	325.2	$	4,696.5		$	551.3	$	260.5	$	5,833.5

The valuation of assets measured at fair value in the Company’s Condensed Consolidated Balance Sheet at December 31, 2016 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)		Measured at Net Asset Value		Total Fair 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 Partnership 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

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, 2017.



(Dollars in Millions)	Unobservable Input	Total Fair Value		Range of Unobservable Inputs					Weighted-average Yield
Investment-grade	Market Yield	$	111.5	2.8	%	-	7.5	%	3.7	%
Non-investment-grade:
Senior Debt	Market Yield	136.5		5.6		-	15.0		9.9
Junior Debt	Market Yield	133.9		9.6		-	19.9		13.2
Collateralized Loan Obligations	Market Yield	95.8		2.7		-	8.1		5.3
Other	Various	12.1
Total Level 3 Fixed Maturity Investments in Corporate Securities		$	489.8

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	$	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 Debt	Various	16.0
Total Level 3 Fixed Maturity Investments in Corporate Securities		$	511.1

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, 2017 is presented below.



	Fixed Maturities												Equity Securities
(Dollars in Millions)	Corporate Bonds and Notes			States and Political Sub-divisions			Redeemable Preferred Stocks			Collateralized Loan Obligations			Preferred and Common Stocks			Other Equity Interests			Total
Balance at Beginning of Period	$	403.2		$	3.8		$	0.6		$	103.5		$	29.7		$	40.9		$	581.7
Total Gains (Losses):
Included in Condensed Consolidated Statement of Operations	(3.3		)	(1.2		)	—			0.2			(0.2		)	—			(4.5		)
Included in Other Comprehensive Income (Loss)	1.4			—			0.1			1.9			0.7			(6.6		)	(2.5		)
Purchases	29.8			—			—			9.2			0.3			0.8			40.1
Settlements	(15.0		)	—			(0.5		)	(7.3		)	—			—			(22.8		)
Sales	(22.0		)	—			—			(3.8		)	(1.4		)	(2.7		)	(29.9		)
Transfers out of Level 3	(2.9		)	—			—			(7.9		)	—			—			(10.8		)
Balance at End of Period	$	391.2		$	2.6		$	0.2		$	95.8		$	29.1		$	32.4		$	551.3

Note 11 - Fair Value Measurements (continued)

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, 2016 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	$	436.3		$	3.8		$	87.3		$	3.8		$	30.0		$	45.6		$	606.8
Total Gains (Losses):
Included in Condensed Consolidated Statement of Operations	(2.5		)	—			(0.6		)	—			(1.0		)	(0.4		)	(4.5		)
Included in Other Comprehensive Income (Loss)	(0.8		)	(0.1		)	(5.2		)	(0.2		)	1.3			(0.5		)	(5.5		)
Purchases	40.1			—			1.7			—			—			—			41.8
Settlements	(5.8		)	(0.4		)	—			—			—			—			(6.2		)
Sales	(35.5		)	—			—			—			—			(2.5		)	(38.0		)
Balance at End of Period	$	431.8		$	3.3		$	83.2		$	3.6		$	30.3		$	42.2		$	594.4

- 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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