Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

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

The valuation of assets measured at fair value in Company’s Condensed Consolidated Balance Sheet at March 31, 2019 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	$	154.5	$	703.9	$	—	$	—	$	858.4
States and Political Subdivisions	—		1,681.9		—		—		1,681.9
Foreign Governments	—		5.2		—		—		5.2
Corporate Securities:
Bonds and Notes	—		3,068.2		411.9		—		3,480.1
Collateralized Loan Obligations	—		3.0		528.5		—		531.5
Other Mortgage- and Asset-backed	—		5.7		10.3		—		16.0
Total Investments in Fixed Maturities	154.5		5,467.9		950.7		—		6,573.1
Equity Securities at Fair Value:
Preferred Stocks:
Finance, Insurance and Real Estate	—		42.7		—		—		42.7
Other Industries	0.8		13.3		—		—		14.1
Common Stocks:
Finance, Insurance and Real Estate	11.4		—		—		—		11.4
Other Industries	0.3		0.4		—		—		0.7
Other Equity Interests:
Exchange Traded Funds	656.0		—		—		—		656.0
Limited Liability Companies and Limited Partnerships	—		—		—		192.0		192.0
Total Investments in Equity Securities at Fair Value	668.5		56.4		—		192.0		916.9
Convertible Securities at Fair Value	—		33.8		—		—		33.8
Total	$	823.0	$	5,558.1	$	950.7	$	192.0	$	7,523.8

At March 31, 2019, the Company had unfunded commitments to invest an additional $138.8 million in certain limited liability investment companies and limited partnerships that will be included in Other Equity Interests if funded.

Note 12 - Fair Value Measurements (continued)

The valuation of assets measured at fair value in the Company’s Consolidated Balance Sheet at December 31, 2018 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	$	156.5	$	709.2	$	—	$	—	$	865.7
States and Political Subdivisions	—		1,619.1		—		—		1,619.1
Foreign Governments	—		5.9		—		—		5.9
Corporate Securities:
Bonds and Notes	—		3,011.2		382.6		—		3,393.8
Collateralized Loan Obligations	—		19.1		504.9		—		524.0
Other Mortgage- and Asset-backed	—		5.8		9.9		—		15.7
Total Investments in Fixed Maturities	156.5		5,370.3		897.4		—		6,424.2
Equity Securities at Fair Value:
Preferred Stocks:
Finance, Insurance and Real Estate	—		41.2		—		—		41.2
Other Industries	—		13.0		—		—		13.0
Common Stocks:
Finance, Insurance and Real Estate	10.2		—		—		—		10.2
Other Industries	0.2		0.5		—		—		0.7
Other Equity Interests:
Exchange Traded Funds	427.3		—		—		—		427.3
Limited Liability Companies and Limited Partnerships	—		—		—		192.0		192.0
Total Investments in Equity Securities at Fair Value	437.7		54.7		—		192.0		684.4
Convertible Securities at Fair Value	—		31.5		—		—		31.5
Total	$	594.2	$	5,456.5	$	897.4	$	192.0	$	7,140.1

Fair Value Measurement Inputs and Valuation Techniques [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, 2019.

(Dollars in Millions)	Unobservable Input	Total Fair Value		Range of Unobservable Inputs					Weighted-average Yield
Investment-grade	Market Yield	$	169.6	2.8	%	-	10.7	%	4.6	%
Non-investment-grade:
Senior Debt	Market Yield	124.9		4.6		-	16.4		10.4
Junior Debt	Market Yield	110.5		10.4		-	16.9		13.5
Collateralized Loan Obligations (investment grade and non-investment grade)	Market Yield	528.5		4.3		-	12.5		5.8
Other	Various	17.2
Total Level 3 Fixed Maturity Investments in Corporate Securities		$	950.7

Note 12 - 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, 2018.

(Dollars in Millions)	Unobservable Input	Total Fair Value		Range of Unobservable Inputs					Weighted-average Yield
Investment-grade	Market Yield	$	146.7	3.7	%	-	10.9	%	5.2	%
Non-investment-grade:
Senior Debt	Market Yield	142.3		4.8		-	30.0		11.5
Junior Debt	Market Yield	87.6		11.0		-	28.5		14.2
Collateralized Loan Obligations (investment grade and non-investment grade)	Market Yield	504.9		4.1		-	13.4		6.1
Other	Various	15.9
Total Level 3 Fixed Maturity Investments in Corporate Securities		$	897.4

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, 2019 is presented below.

	Fixed Maturities
(Dollars in Millions)	Corporate Bonds and Notes			Collateralized Loan Obligations			Other Mortgage- and Asset- backed			Total
Balance at Beginning of Period	$	382.6		$	504.9		$	9.9		$	897.4
Total Gains (Losses):
Included in Condensed Consolidated Statement of Income	(2.5		)	(0.3		)	—			(2.8		)
Included in Other Comprehensive Income (Loss)	5.4			6.0			0.5			11.9
Purchases	101.3			3.9			—			105.2
Settlements	(11.5		)	—			(0.1		)	(11.6		)
Sales	(65.9		)	—			—			(65.9		)
Transfers into Level 3	2.5			14.0			—			16.5
Transfers out of Level 3	—			—			—			—
Balance at End of Period	$	411.9		$	528.5		$	10.3		$	950.7

Note 12 - Fair Value Measurements (continued)

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 three months ended March 31, 2019. There were no transfers out of Level 3 for the three months ended March 31, 2019. The transfers into Level 3 were due to changes in the availability of market observable inputs.

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, 2018 is presented below.

	Fixed Maturities									Equity Securities
(Dollars in Millions)	Corporate Bonds and Notes			Redeemable Preferred Stocks			Collateralized Loan Obligations			Preferred and  Common Stocks			Other Equity Interests			Total
Balance at Beginning of Period	$	401.5		$	0.1		$	93.2		$	27.4		$	34.4		$	556.6
Total Gains (Losses):
Included in Condensed Consolidated Statement of Income	1.8			(0.1		)	0.5			—			—			2.2
Included in Other Comprehensive Income (Loss)	(1.6		)	—			(0.5		)	—			—			(2.1		)
Purchases	25.8			—			48.9			—			—			74.7
Settlements	(18.1		)	—			(14.0		)	—			—			(32.1		)
Sales	(13.4		)	—			—			—			—			(13.4		)
Transfers into Level 3	0.3			—			—			—			—			0.3
Transfers out of Level 3	(5.0		)	—			—			(27.4		)	(34.4		)	(66.8		)
Balance at End of Period	$	391.3		$	—		$	128.1		$	—		$	—		$	519.4

Note 12 - Fair Value Measurements (continued)

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 three months ended March 31, 2018. Transfers out of Level 3 were $66.8 million for the three

months ended March 31, 2018, of which $61.8 million was transferred into Equity Securities at Modified Cost due to the

adoption of ASU 2016-01 and $5.0 million was transferred into Level 2 due to changes in the availability of market observable

inputs.

Fair Value, by Balance Sheet Grouping [Table Text Block]

Presented below are the carrying values and fair value estimates of financial instruments not carried at fair value.

	March 31, 2019				December 31, 2018
(Dollars in Millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets:
Loans to Policyholders	$	301.4	$	574.5	$	300.6	$	542.6
Short-term Investments	350.4		350.4		286.1		286.1
Mortgage Loans	10.6		10.6		—		—
Financial Liabilities:
Debt	$	908.5	$	933.8	$	909.0	$	911.2
Collateralized Investment Borrowings	187.7		187.7		10.0		10.0

The fair value measurement for loans to policyholders are categorized as Level 3 within the fair value hierarchy. The fair value measurement of Short-term Investments is estimated using inputs that are considered either Level 1 or Level 2 measurements. The fair value measurement of Mortgage Loans is estimated using inputs that are considered Level 2 measurements.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. Collateralized Investment Borrowings consist of advances from the FHLB of Chicago, and the inputs used in the valuation are considered Level 2 measurements.