Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

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 September 30, 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	$	117.1	$	242.0		$	—	$	—	$	359.1
States and Political Subdivisions	—		1,721.6			1.4		—		1,723.0
Foreign Governments	—		3.3			—		—		3.3
Corporate Securities:
Bonds and Notes	—		2,645.7			387.4		—		3,033.1
Redeemable Preferred Stocks	—		—			0.1		—		0.1
Collateralized Loan Obligations	—		29.6			93.5		—		123.1
Other Mortgage- and Asset-backed	—		1.1			—		—		1.1
Total Investments in Fixed Maturities	117.1		4,643.3			482.4		—		5,242.8
Equity Securities:
Preferred Stocks:
Finance, Insurance and Real Estate	—		58.6			—		—		58.6
Other Industries	—		12.2			12.4		—		24.6
Common Stocks:
Finance, Insurance and Real Estate	7.2		—			—		—		7.2
Other Industries	0.6		0.5			12.7		—		13.8
Other Equity Interests:
Exchange Traded Funds	205.0		—			—		—		205.0
Limited Liability Companies and Limited Partnerships	—		—			34.1		168.8		202.9
Total Investments in Equity Securities	212.8		71.3			59.2		168.8		512.1
Fair Value Option Investments:
Limited Liability Companies and Limited Partnerships Hedge Funds	—		—			—		77.1		77.1
Other Investments:
Trading Securities	6.3		—			—		—		6.3
Other Liabilities:
Derivative Instrument Classified as Cash Flow Hedge	—		(0.7		)	—		—		(0.7		)
Total	$	336.2	$	4,713.9		$	541.6	$	245.9	$	5,837.6

At September 30, 2017, the Company had unfunded commitments to invest an additional $133.0 million in certain limited liability investment companies and limited partnerships that will be included in Other Equity Interests if funded.

Note 11 - Fair Value Measurements (continued)

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 September 30, 2017.

(Dollars in Millions)	Unobservable Input	Total Fair Value		Range of Unobservable Inputs					Weighted-average Yield
Investment-grade	Market Yield	$	93.0	2.4	%	-	6.4	%	3.6	%
Non-investment-grade:
Senior Debt	Market Yield	161.1		4.1		-	14.9		9.9
Junior Debt	Market Yield	119.2		6.6		-	27.2		13.1
Collateralized Loan Obligations	Market Yield	93.5		4.0		-	9.3		7.0
Other	Various	15.6
Total Level 3 Fixed Maturity Investments in Corporate Securities		$	482.4

Note 11 - 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, 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 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 nine months endedSeptember 30, 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	(4.7		)	(1.2		)	0.1			1.4			1.7			3.7			1.0
Included in Other Comprehensive Income (Loss)	4.6			—			(0.1		)	1.7			0.9			(6.3		)	0.8
Purchases	120.4			—			—			22.7			3.2			2.9			149.2
Settlements	(75.5		)	(2.6		)	(0.5		)	(18.0		)	—			—			(96.6		)
Sales	(32.0		)	—			—			(11.0		)	(6.9		)	(7.1		)	(57.0		)
Transfers into Level 3	—			1.4			—			5.0			—			—			6.4
Transfers out of Level 3	(28.6		)	—			—			(11.8		)	(3.5		)	—			(43.9		)
Balance at End of Period	$	387.4		$	1.4		$	0.1		$	93.5		$	25.1		$	34.1		$	541.6

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 endedSeptember 30, 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	$	396.1		$	—	$	0.1	$	95.4		$	22.8		$	32.2		$	546.6
Total Gains (Losses):
Included in Condensed Consolidated Statement of Operations	(0.8		)	—		—		0.5			0.4			0.3			0.4
Included in Other Comprehensive Income (Loss)	1.8			—		—		—			2.4			0.4			4.6
Purchases	40.4			—		—		6.3			—			1.5			48.2
Settlements	(31.2		)	—		—		(5.5		)	—			—			(36.7		)
Sales	(3.7		)	—		—		(4.3		)	(0.5		)	(0.3		)	(8.8		)
Transfers into Level 3	—			1.4		—		5.0			—			—			6.4
Transfers out of Level 3	(15.2		)	—		—		(3.9		)	—			—			(19.1		)
Balance at End of Period	$	387.4		$	1.4	$	0.1	$	93.5		$	25.1		$	34.1		$	541.6

The Company’s policy is to recognize transfers between levels as of the end of the reporting period. There were no transfers between levels 1 and 2 for the nine and three months endedSeptember 30, 2017. Transfers out of Level 3 were $43.9 million for the nine months endedSeptember 30, 2017, of which $3.5 million was transferred into Level 1 due to an issuer’s initial public offering of the security and $40.4 million was transferred into Level 2 due to changes in the availability of market observable inputs. Transfers out of Level 3 for the three months endedSeptember 30, 2017 were due to changes in the availability of market observable inputs.

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 nine months endedSeptember 30, 2016 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			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	(15.8		)	—		—			(0.2		)	0.4			0.5			(0.7		)	(15.8		)
Included in Other Comprehensive Income (Loss)	2.4			—		—			3.0			(0.4		)	3.5			(3.4		)	5.1
Purchases	148.3			—		—			33.2			—			0.2			2.1			183.8
Settlements	(34.9		)	—		(2.9		)	—			(3.0		)	—			—			(40.8		)
Sales	(79.3		)	—		—			(1.9		)	—			(3.2		)	(4.6		)	(89.0		)
Transfers into Level 3	—			4.1		—			—			—			—			—			4.1
Transfers out of Level 3	(15.0		)	—		—			(10.1		)	(0.8		)	—			—			(25.9		)
Balance at End of Period	$	442.0		$	4.1	$	0.9		$	111.3		$	—		$	31.0		$	39.0		$	628.3

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 endedSeptember 30, 2016 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			Other Mortgage- and Asset- backed			Preferred and  Common Stocks			Other Equity Interests			Total
Balance at Beginning of Period	$	459.4		$	—	$	2.9		$	102.2		$	3.7		$	31.4		$	47.2		$	646.8
Total Gains (Losses):
Included in Condensed Consolidated Statement of Operations	(7.0		)	—		—			0.1			0.4			1.4			—			(5.1		)
Included in Other Comprehensive Income (Loss)	(0.9		)	—		0.4			5.2			(0.4		)	1.0			(6.2		)	(0.9		)
Purchases	60.1			—		—			13.9			—			0.1			0.1			74.2
Settlements	(20.6		)	—		(2.4		)	—			(2.9		)	—			—			(25.9		)
Sales	(34.0		)	—		—			—			—			(2.9		)	(2.1		)	(39.0		)
Transfers into Level 3	—			4.1		—			—			—			—			—			4.1
Transfers out of Level 3	(15.0		)	—		—			(10.1		)	(0.8		)	—			—			(25.9		)
Balance at End of Period	$	442.0		$	4.1	$	0.9		$	111.3		$	—		$	31.0		$	39.0		$	628.3

The Company’s policy is to recognize transfers between levels as of the end of the reporting period. There were no transfers between levels 1 and 2 or Levels 1 and 3 for the nine and three months endedSeptember 30, 2016. Transfers into or out of Level 3 for the nine and three months endedSeptember 30, 2016 were due to changes in the availability of market observable inputs.

Note 11 - Fair Value Measurements (continued)

The fair value of Debt is estimated using quoted prices for similar liabilities in markets that are not active. The inputs used in the valuation are considered Level 2 measurements. The fair value of Short-term Investments is estimated using inputs that are considered either Level 1 or Level 2 measurements.