The Company classifies its investments in Fixed Maturities as available-for-sale and reports these investments at fair value. The Company reports equity investments with readily determinable fair values as Equity Securities at Fair Value. Certain investments that are measured at fair value using the net asset value practical expedient are not required to be classified using the fair value hierarchy, but are presented in the following two tables to permit reconciliation of the fair value hierarchy to the amounts presented in the Condensed Consolidated Balance Sheets.


	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	$	137.9	$	384.4	$	—	$	—	$	522.3
States and Political Subdivisions	—		1,805.8		—		—		1,805.8
Foreign Governments	—		5.1		—		—		5.1
Corporate Securities:
Bonds and Notes	—		4,066.2		409.2		—		4,475.4
Redeemable Preferred Stock	—		1.3		6.2		—		7.5
Collateralized Loan Obligations	—		742.4		27.8		—		770.2
Other Mortgage and Asset-backed	—		230.5		18.2		—		248.7
Total Investments in Fixed Maturities	137.9		7,235.7		461.4		—		7,835.0
Equity Securities at Fair Value:
Preferred Stocks:
Finance, Insurance and Real Estate	—		34.8		—		—		34.8
Other Industries	—		15.9		1.7		—		17.6
Common Stocks:
Finance, Insurance and Real Estate	20.0		—		1.7		—		21.7
Other Industries	2.8		0.1				—		2.9
Other Equity Interests:
Exchange Traded Funds	564.3		—		—		—		564.3
Limited Liability Companies and Limited Partnerships	—		—		—		316.4		316.4
Total Investments in Equity Securities at Fair Value	587.1		50.8		3.4		316.4		957.7






Convertible Securities at Fair Value	—		43.6		—		—		43.6


Total	$	725.0	$	7,330.1	$	464.8	$	316.4	$	8,836.3


	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	$	134.0	$	451.3	$	—	$	—	$	585.3
States and Political Subdivisions	—		1,589.5		—		—		1,589.5
Foreign Governments	—		5.2		—		—		5.2
Corporate Securities:
Bonds and Notes	—		3,992.4		433.0		—		4,425.4
Redeemable Preferred Stocks	—		1.3		6.2		—		7.5
Collateralized Loan Obligations	—		767.7		—		—		767.7
Other Mortgage and Asset-backed	—		215.3		10.0		—		225.3
Total Investments in Fixed Maturities	134.0		7,022.7		449.2		—		7,605.9
Equity Securities at Fair Value:
Preferred Stocks:
Finance, Insurance and Real Estate	—		43.7		—		—		43.7
Other Industries	—		15.4		—		—		15.4
Common Stocks:

Finance, Insurance and Real Estate	8.7		1.7		—		—		10.4
Other Industries	0.4		—		—		—		0.4
Other Equity Interests:
Exchange Traded Funds	496.4		—		—		—		496.4
Limited Liability Companies and Limited Partnerships	—		—		—		292.2		292.2
Total Investments in Equity Securities at Fair Value	505.5		60.8		—		292.2		858.5


Other Investments:

Convertible Securities at Fair Value	—		39.9		—		—		39.9


Total	$	639.5	$	7,123.4	$	449.2	$	292.2	$	8,504.3

The Company’s investments in Fixed Maturities that are classified as Level 1 primarily consist of U.S. Treasury Bonds and Notes. The Company’s investments in Equity Securities at Fair Value that are classified as Level 1 consist of either investments in publicly-traded common stocks or exchange traded funds. The Company’s investments in Fixed Maturities that are classified as Level 2 primarily consist of investments in corporate bonds, obligations of states and political subdivisions, collateralized loan obligations, and mortgage-backed securities of U.S. government agencies. The Company’s investments in Equity Securities at Fair Value that are classified as Level 2 primarily consist of investments in preferred stocks. The Company uses a leading, nationally recognized provider of market data and analytics to price the vast majority of the Company’s Level 2 measurements. The provider utilizes evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information. Because many fixed maturity securities do not trade on a daily basis, the provider’s evaluated pricing

applications apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing to prepare evaluations. In addition, the provider uses model processes to develop prepayment and interest rate scenarios.

The pricing provider’s models and processes also take into account market convention. For each asset class, teams of its evaluators gather information from market sources and integrate relevant credit information, perceived market movements and sector news into the evaluated pricing applications and models. The Company generally validates the measurements obtained from its primary pricing provider by comparing them with measurements obtained from one additional pricing provider that provides either prices from recent market transactions, quotes in inactive markets or evaluations based on its own proprietary models.

The Company investigates significant differences related to the values provided. On completion of its investigation, management exercises judgment to determine the price selected and whether adjustments, if any, to the price obtained from the Company’s primary pricing provider would warrant classification of the price as Level 3. In instances where a measurement cannot be obtained from either pricing provider, the Company generally will evaluate bid prices from one or more binding quotes obtained from market makers to value investments in inactive markets and classified by the Company as Level 2. The Company generally classifies securities when it receives non-binding quotes or indications as Level 3 securities unless the Company can validate the quote or indication against recent transactions in the market.


(Dollars in Millions)	Unobservable Input	Total Fair Value		Range of Unobservable Inputs				Weighted-average Yield
Investment-grade	Market Yield	$	263.7	0.9	%	9.4	%	3.2	%
Non-investment-grade:
Senior Debt	Market Yield	60.3		1.6		19.0		6.7
Junior Debt	Market Yield	68.6		6.0		26.5		14.7

Other	Various	68.8
Total Level 3 Fixed Maturity Investments		$	461.4


(Dollars in Millions)	Unobservable Input	Total Fair Value		Range of Unobservable Inputs				Weighted-average Yield
Investment-grade	Market Yield	$	246.7	1.4	%	13.0	%	3.8	%
Non-investment-grade:
Senior Debt	Market Yield	111.1		2.4		23.4		9.5
Junior Debt	Market Yield	64.6		3.1		27.9		13.7
Other	Various	26.8
Total Level 3 Fixed Maturity Investments		$	449.2

For an investment in a fixed maturity security, an increase in the yield used to determine the fair value of the security will decrease the fair value of the security. A decrease in the yield used to determine fair value will increase the fair value of the security, but for callable securities the fair value increase is generally limited to par, unless security is currently callable at a premium.


	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		Total
Balance at Beginning of Year	$	433.0	$	6.2	$	—	$	10.0	$	—	$	449.2
Total Gains (Losses):
Included in Condensed Consolidated Statement of Income	—		—		—		—		—		—
Included in Other Comprehensive Income (Loss)	0.8		—		0.1		(0.5)		—		0.4
Purchases	39.5		—		17.7		9.0		1.7		67.9
Settlements	—		—		—		(0.1)		—		(0.1)
Sales	(66.0)		—		—		(0.2)		—		(66.2)
Transfers into Level 3	2.5		—		10.0		—		1.7		14.2
Transfers out of Level 3	(0.6)		—		—		—		—		(0.6)
Balance at End of Period	$	409.2	$	6.2	$	27.8	$	18.2	$	3.4	$	464.8


	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		Total
Balance at Beginning of Period	$	414.5	$	5.7	$	—	$	9.0	$	—	$	429.2
Total Gains (Losses):
Included in Condensed Consolidated Statement of Income	1.1		—		—		—		—		1.1
Included in Other Comprehensive Income (Loss)	4.5		0.5		0.1		0.3		—		5.4
Purchases	21.7		—		17.7		9.0		1.7		50.1
Settlements	—		—		—		(0.1)		—		(0.1)
Sales	(35.1)		—		—		—		—		(35.1)
Transfers into Level 3	2.5		—		10.0		—		1.7		14.2
Transfers out of Level 3	—		—		—		—		—		—
Balance at End of Period	$	409.2	$	6.2	$	27.8	$	18.2	$	3.4	$	464.8


	Fixed Maturities
(Dollars in Millions)	Corporate Bonds and Notes		States and Political Sub- divisions		Redeemable Preferred Stocks		Collateralized Loan Obligations		Other Mortgage- and Asset- backed		Total
Balance at Beginning of Year	$	409.1	$	—	$	6.7	$	618.2	$	10.2	$	1,044.2
Total Gains (Losses):
Included in Condensed Consolidated Statement of Income	(5.0)		—		—		(0.3)		—		(5.3)
Included in Other Comprehensive Income (Loss)	(6.1)		0.1		(0.1)		(9.4)		0.4		(15.1)
Purchases	80.6		0.6		—		53.5		—		134.7
Settlements	—		—		—		—		(0.1)		(0.1)
Sales	(33.7)		—		—		(26.4)		(0.2)		(60.3)
Transfers into Level 3	7.4		—		—		—		—		7.4
Transfers out of Level 3	—		(0.7)		(1.2)		(635.6)		—		(637.5)
Balance at End of Period	$	452.3	$	—	$	5.4	$	—	$	10.3	$	468.0


	Fixed Maturities
(Dollars in Millions)	Corporate Bonds and Notes		States and Political Sub- divisions		Redeemable Preferred Stocks		Collateralized Loan Obligations		Other Mortgage- and Asset- backed		Total
Balance at Beginning of Period	$	390.6	$	0.7	$	6.7	$	77.9	$	9.4	$	485.3
Total Gains (Losses):
Included in Condensed Consolidated Statement of Income	(2.3)		—		—		—		—		(2.3)
Included in Other Comprehensive Income (Loss)	18.7		—		(0.1)		0.1		1.0		19.7
Purchases	53.4		—		—		(0.1)		—		53.3
Settlements	—		—		—		—		(0.1)		(0.1)
Sales	(15.5)		—		—		—		—		(15.5)
Transfers into Level 3	7.4		—		—		—		—		7.4
Transfers out of Level 3	—		(0.7)		(1.2)		(77.9)		—		(79.8)
Balance at End of Period	$	452.3	$	—	$	5.4	$	—	$	10.3	$	468.0


	June 30, 2021				December 31, 2020
(Dollars in Millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets:
Loans to Policyholders	$	291.7	$	291.7	$	297.9	$	297.9
Short-term Investments	370.6		370.6		875.4		875.4
Mortgage Loans	85.7		85.7		54.6		54.6
Company-Owned Life Insurance	433.5		433.5		$	327.4	$	327.4
Equity Securities at Modified Cost	32.5		35.4		40.1		40.1
Financial Liabilities:
Long-term Debt	$	1,122.3	$	1,175.6	$	1,172.8	$	1,247.8
Policyholder Obligations	382.8		382.8		407.8		407.8

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 Mortgage Loans fair value measurement is considered equal to amortized cost given the short term nature of the investments. The fair value measurement of Equity Securities at Modified Cost is estimated using inputs that are considered Level 3 measurements. The fair value of Company-Owned Life Insurance is cash surrender value. The fair value of Long-term 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. Policyholder Obligations presented in the preceding table consist of advances from the FHLB of Chicago, and the inputs used in the valuation are considered Level 2 measurements.