Investments (Tables)

9 Months Ended

Sep. 30, 2021

Debt Securities, Available-for-sale [Line Items]

Investments Classified by Contractual Maturity Date

The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at September 30, 2021 by contractual maturity were:

(Dollars in Millions)	Amortized Cost		Fair Value
Due in One Year or Less	$	67.5	$	69.4
Due after One Year to Five Years	1,004.2		1,065.5
Due after Five Years to Ten Years	1,581.3		1,700.6
Due after Ten Years	3,228.2		3,682.2
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date	1,341.3		1,367.4
Investments in Fixed Maturities	$	7,222.5	$	7,885.1

Schedule of Unrealized Loss on Investments

An aging of unrealized losses on the Company’s Investments in Fixed Maturities at September 30, 2021 is presented below.

	Less Than 12 Months				12 Months or Longer				Total
(Dollars in Millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed Maturities:
U.S. Government and Government Agencies and Authorities	$	45.0	$	(0.7)	$	1.2	$	(0.1)	$	46.2	$	(0.8)
States and Political Subdivisions	468.1		(11.8)		0.2		—		468.3		(11.8)
Foreign Governments	0.5		(0.5)		2.7		(0.6)		3.2		(1.1)
Corporate Securities:
Bonds and Notes	495.1		(14.0)		26.5		(1.8)		521.6		(15.8)
Collateralized Loan Obligations	206.1		(2.4)		234.9		(2.3)		441.0		(4.7)
Other Mortgage- and Asset-backed	63.2		(0.7)		—		—		63.2		(0.7)
Total Fixed Maturities	$	1,278.0	$	(30.1)	$	265.5	$	(4.8)	$	1,543.5	$	(34.9)

An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2020 is presented below.

	Less Than 12 Months				12 Months or Longer				Total
(Dollars in Millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed Maturities:
U.S. Government and Government Agencies and Authorities	$	10.5	$	(0.1)	$	—	$	—	$	10.5	$	(0.1)
States and Political Subdivisions	23.3		(0.2)		—		—		23.3		(0.2)
Foreign Governments	0.5		(0.1)		2.6		(1.0)		3.1		(1.1)
Corporate Securities:
Bonds and Notes	132.9		(7.5)		46.1		(3.1)		179.0		(10.6)
Collateralized Loan Obligations	145.2		(3.8)		371.4		(15.9)		516.6		(19.7)
Other Mortgage- and Asset-backed	6.3		—		—		—		6.3		—
Total Fixed Maturities	$	318.7	$	(11.7)	$	420.1	$	(20.0)	$	738.8	$	(31.7)

Allowance for Credit Losses

The following table sets forth the change in allowance for expected credit losses on fixed maturities available-for-sale by major security type for nine months ended September 30, 2021.

	Foreign Governments		Corporate Bonds and Notes		Total
(Dollars in Millions)
Beginning of the Year	$	0.3	$	3.0	$	3.3
Additions for Securities for which No Previous Expected Credit Losses were    Recognized	—		2.2		2.2
Net Increase (Decrease) in Allowance on Securities for which Expected Credit Losses were Previously Recognized	(0.3)		(0.6)		(0.9)
Write-offs Charged Against Allowance	—		(0.2)		(0.2)
End of the Period	$	—	$	4.4	$	4.4

The following table sets forth the change in allowance for expected credit losses on fixed maturities available-for-sale by major security type for the nine months ended September 30, 2020.

	Foreign Governments		Corporate Bonds and Notes		Total
(Dollars in Millions)
Beginning of the Year	$	—	$	—	$	—
Impact of Adopting ASU 2016-13	—		—		—
Additions for Securities for which No Previous Expected Credit Losses were    Recognized	0.6		5.0		5.6
Reduction Due to Sales	(0.1)		(0.4)		(0.5)
Net Increase (Decrease) in Allowance on Securities for which Expected Credit Losses were Previously Recognized	0.1		(0.1)		—
Write-offs Charged Against Allowance	—		(0.3)		(0.3)
End of the Period	$	0.6	$	4.2	$	4.8

Schedule of Other Investments

The carrying values of the Company’s Other Investments at September 30, 2021 and December 31, 2020 were:

(Dollars in Millions)	Sep 30, 2021		Dec 31, 2020
Company-Owned Life Insurance	$	440.7	$	327.4
Loans to Policyholders at Unpaid Principal	289.6		297.9
Real Estate at Depreciated Cost	95.8		98.7
Mortgage Loans and Other	95.4		55.0
Total	$	921.5	$	779.0

Investment Income

Net Investment Income for the nine and three months ended September 30, 2021 and 2020 was:

	Nine Months Ended				Three Months Ended
(Dollars in Millions)	Sep 30, 2021		Sep 30, 2020		Sep 30, 2021		Sep 30, 2020
Investment Income:
Interest on Fixed Income Securities	$	207.1	$	218.0	$	68.4	$	72.7
Dividends on Equity Securities Excluding Alternative Investments	9.8		10.7		2.9		2.8
Alternative Investments:
Equity Method Limited Liability Investments	50.9		(2.7)		12.0		8.2
Limited Liability Investments Included in Equity Securities	29.3		7.3		9.5		2.4
Total Alternative Investments	80.2		4.6		21.5		10.6
Short-term Investments	0.6		4.2		0.2		2.3
Loans to Policyholders	16.3		16.6		5.4		5.5
Real Estate	7.1		7.1		2.3		2.3
Other	23.1		9.3		9.1		2.7
Total Investment Income	344.2		270.5		109.8		98.9
Investment Expenses:
Real Estate	6.8		6.5		2.6		1.2
Other Investment Expenses	18.5		18.5		5.3		5.6
Total Investment Expenses	25.3		25.0		7.9		6.8
Net Investment Income	$	318.9	$	245.5	$	101.9	$	92.1

Schedule of Realized Gain (Loss)

Gross gains and losses on sales of investments in fixed maturities for the nine and three months ended September 30, 2021 and 2020 were:

	Nine Months Ended				Three Months Ended
(Dollars in Millions)	Sep 30, 2021		Sep 30, 2020		Sep 30, 2021		Sep 30, 2020
Fixed Maturities:
Gains on Sales	$	42.7	$	38.7	$	10.3	$	11.9
Losses on Sales	(1.7)		(3.5)		(0.4)		(1.9)

Investments in Fixed Maturities

Debt Securities, Available-for-sale [Line Items]

Schedule of Available-for-sale Securities Reconciliation

The amortized cost, gross unrealized gains and losses, allowance for expected credit loss, and estimated fair values of the Company’s Investments in Fixed Maturities at September 30, 2021 were:

	Amortized Cost		Gross Unrealized				Allowance for Expected Credit Losses		Fair Value
(Dollars in Millions)			Gains		Losses
U.S. Government and Government Agencies and Authorities	$	472.0	$	31.4	$	(0.8)	$	—	$	502.6
States and Political Subdivisions	1,780.3		148.8		(11.8)		—		1,917.3
Foreign Governments	6.7		0.1		(1.1)		—		5.7
Corporate Securities:
Bonds and Notes	3,948.8		504.7		(15.8)		(4.4)		4,433.3
Redeemable Preferred Stocks	7.0		0.4		—		—		7.4
Collateralized Loan Obligations	738.6		2.0		(4.7)		—		735.9
Other Mortgage- and Asset-backed	269.1		14.5		(0.7)		—		282.9
Investments in Fixed Maturities	$	7,222.5	$	701.9	$	(34.9)	$	(4.4)	$	7,885.1

Note 6 - Investments (continued)

The amortized cost, gross unrealized gains and losses, allowance for expected credit loss, and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2020 were:

	Amortized Cost		Gross Unrealized				Allowance for Expected Credit Losses		Fair Value
(Dollars in Millions)			Gains		Losses
U.S. Government and Government Agencies and Authorities	$	536.5	$	48.9	$	(0.1)	$	—	$	585.3
States and Political Subdivisions	1,404.3		185.4		(0.2)		—		1,589.5
Foreign Governments	6.6		—		(1.1)		(0.3)		5.2
Corporate Securities:
Bonds and Notes	3,749.5		689.5		(10.6)		(3.0)		4,425.4
Redeemable Preferred Stocks	7.0		0.5		—		—		7.5
Collateralized Loan Obligations	785.1		2.3		(19.7)		—		767.7
Other Mortgage- and Asset-backed	203.7		21.6		—		—		225.3
Investments in Fixed Maturities	$	6,692.7	$	948.2	$	(31.7)	$	(3.3)	$	7,605.9