XML 163 R40.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Investments (Tables)
 12 Months Ended
Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]  
Schedule of Unrealized Loss on Investments
An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2019 is presented below.
DOLLARS IN MILLIONS
 
Less Than 12 Months
 
12 Months or Longer
 
Total
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed Maturities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government and Government Agencies and Authorities
 
$
118.5

 
$
(1.3
)
 
$
5.1

 
$
—

 
$
123.6

 
$
(1.3
)
States and Political Subdivisions
 
63.0

 
(0.7
)
 
5.4

 
(0.4
)
 
68.4

 
(1.1
)
Foreign Governments
 
1.0

 
(0.3
)
 
3.1

 
(1.3
)
 
4.1

 
(1.6
)
Corporate Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Bonds and Notes
 
160.0

 
(2.1
)
 
70.7

 
(5.0
)
 
230.7

 
(7.1
)
Redeemable Preferred Stocks
 
5.5

 
(0.1
)
 
—

 
—

 
5.5

 
(0.1
)
Collateralized Loan Obligations
 
95.5

 
(1.9
)
 
355.6

 
(6.6
)
 
451.1

 
(8.5
)
Other Mortgage- and Asset-backed
 
72.8

 
(1.1
)
 
—

 
—

 
72.8

 
(1.1
)
Total Fixed Maturities
 
516.3

 
(7.5
)
 
439.9

 
(13.3
)
 
956.2

 
(20.8
)

An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2018 is presented below.
DOLLARS IN MILLIONS
 
Less Than 12 Months
 
12 Months or Longer
 
Total
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed Maturities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government and Government Agencies and Authorities
 
$
401.1

 
$
(7.6
)
 
$
79.0

 
$
(7.4
)
 
$
480.1

 
$
(15.0
)
States and Political Subdivisions
 
299.4

 
(5.0
)
 
102.6

 
(3.6
)
 
402.0

 
(8.6
)
Foreign Governments
 
4.9

 
(0.6
)
 
—

 
—

 
4.9

 
(0.6
)
Corporate Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Bonds and Notes
 
1,326.0

 
(38.2
)
 
116.8

 
(10.9
)
 
1,442.8

 
(49.1
)
Collateralized Loan Obligations
 
439.2

 
(13.2
)
 
—

 
—

 
439.2

 
(13.2
)
Other Mortgage- and Asset-backed
 
0.2

 
—

 
4.5

 
(0.1
)
 
4.7

 
(0.1
)
Total Fixed Maturities
 
$
2,470.8

 
$
(64.6
)
 
$
302.9

 
$
(22.0
)
 
$
2,773.7

 
$
(86.6
)
Other than Temporary Impairment, Credit Losses Recognized in Earnings
The following table sets forth the pre-tax amount of other-than-temporary impairments (“OTTI”) credit losses, recognized in Retained Earnings for Investments in Fixed Maturities held by the Company as of the beginning and end of the periods presented for which a portion of the OTTI loss related to factors other than credit has been recognized in AOCI, and the corresponding changes in such amounts.
DOLLARS IN MILLIONS
 
2019
 
2018
 
2017
Cumulative Balance of Pre-tax Credit Losses Recognized in Retained Earnings at Beginning of Year
 
$
1.1

 
$
1.6

 
$
1.4

Pre-tax Credit Losses on Fixed Maturities without Pre-tax Credit Losses Included in Cumulative Balance at Beginning of Year
 
0.2

 
—

 
1.2

Reductions for Change in Impairment Status:
 
 
 
 
 
 
From Status of Credit Loss to Status of Intent-to-sell or Required-to-sell
 
—

 
(0.5
)
 
(0.7
)
Reductions for Investments Sold During Year
 
(0.1
)
 
—

 
(0.3
)
Cumulative Balance of Pre-tax Credit Losses Recognized in Retained Earnings at End of Year
 
$
1.2

 
$
1.1

 
$
1.6


The components of Net Impairment Losses Recognized in Earnings reported in the Consolidated Statements of Income for the years ended December 31, 2019, 2018 and 2017 were:
DOLLARS IN MILLIONS
 
2019
 
2018
 
2017
Fixed Maturities
 
$
(13.3
)
 
$
(2.0
)
 
$
(12.1
)
Equity Securities
 
(0.5
)
 
(2.5
)
 
(2.2
)
Net Impairment Losses Recognized in Earnings
 
$
(13.8
)
 
$
(4.5
)
 
$
(14.3
)
Schedule of Other Investments
The carrying values of the Company’s Other Investments at December 31, 2019 and 2018 were:
DOLLARS IN MILLIONS
 
2019
 
2018
Loans to Policyholders at Unpaid Principal
 
$
305.6

 
$
300.6

Real Estate at Depreciated Cost
 
111.4

 
114.2

Mortgage Loans at Amortized Cost
 
27.5

 
—

Total
 
$
444.5

 
$
414.8
Investments in Fixed Maturities  
Debt Securities, Available-for-sale [Line Items]  
Schedule of Available-for-sale Securities Reconciliation
The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2018 were:
 
 
Amortized
Cost
 
Gross Unrealized
 
Fair Value
DOLLARS IN MILLIONS
 
Gains
 
Losses
 
U.S. Government and Government Agencies and Authorities
 
$
865.9

 
$
14.8

 
$
(15.0
)
 
$
865.7

States and Political Subdivisions
 
1,553.7

 
74.0

 
(8.6
)
 
1,619.1

Foreign Governments
 
6.5

 
—

 
(0.6
)
 
5.9

Corporate Securities:
 
 
 
 
 
 
 
 
Bonds and Notes
 
3,307.8

 
135.1

 
(49.1
)
 
3,393.8

Collateralized Loan Obligations
 
535.7

 
1.5

 
(13.2
)
 
524.0

Other Mortgage- and Asset-backed
 
14.9

 
0.9

 
(0.1
)
 
15.7

Investments in Fixed Maturities
 
$
6,284.5

 
$
226.3

 
$
(86.6
)
 
$
6,424.2


The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2019 were:
DOLLARS IN MILLIONS
 
Amortized
Cost
 
Gross Unrealized
 
Fair Value
Gains
 
Losses
 
U.S. Government and Government Agencies and Authorities
 
$
784.7

 
$
32.5

 
$
(1.3
)
 
$
815.9

States and Political Subdivisions
 
1,386.4

 
130.5

 
(1.1
)
 
1,515.8

Foreign Governments
 
17.2

 
1.2

 
(1.6
)
 
16.8

Corporate Securities:
 
 
 
 
 
 
 

Bonds and Notes
 
3,465.0

 
401.8

 
(7.1
)
 
3,859.7

Redeemable Preferred Stocks
 
6.8

 
—

 
(0.1
)
 
6.7

Collateralized Loan Obligations
 
624.6

 
2.1

 
(8.5
)
 
618.2

Other Mortgage- and Asset-backed
 
88.0

 
2.1

 
(1.1
)
 
89.0

Investments in Fixed Maturities
 
$
6,372.7

 
$
570.2

 
$
(20.8
)
 
$
6,922.1
Investments Classified by Contractual Maturity Date
The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2019 by contractual maturity were:
DOLLARS IN MILLIONS
 
Amortized Cost
 
Fair Value
Due in One Year or Less
 
$
82.5

 
$
85.1

Due after One Year to Five Years
 
882.3

 
909.2

Due after Five Years to Ten Years
 
1,581.7

 
1,708.9

Due after Ten Years
 
2,535.3

 
2,916.6

Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date
 
1,290.9

 
1,302.3

Investments in Fixed Maturities
 
$
6,372.7

 
$
6,922.1