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Investments (Tables)

9 Months Ended

Sep. 30, 2022

The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at September 30, 2022 by contractual maturity were:


(Dollars in Millions)	Amortized Cost		Fair Value
Due in One Year or Less	$	192.3	$	188.5
Due after One Year to Five Years	937.6		893.3
Due after Five Years to Ten Years	1,339.7		1,156.2
Due after Ten Years	3,407.5		2,797.4
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date	1,819.3		1,643.7
Investments in Fixed Maturities (1)	$	7,696.4	$	6,679.1
(1) Includes securities classified as Held-for-Sale Assets on the Condensed Consolidated Balance Sheets. See Note 4, “Dispositions,” for more information.

An aging of unrealized losses on the Company’s Investments in Fixed Maturities at September 30, 2022 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	$	427.0	$	(79.0)	$	33.3	$	(8.2)	$	460.3	$	(87.2)
States and Political Subdivisions	1,095.5		(221.7)		123.5		(44.7)		1,219.0		(266.4)
Foreign Governments	1.9		(0.1)		1.8		(1.0)		3.7		(1.1)
Corporate Securities:
Bonds and Notes	2,903.1		(507.2)		250.5		(68.6)		3,153.6		(575.8)
Redeemable Preferred Stocks	7.7		(1.0)		—		—		7.7		(1.0)
Collateralized Loan Obligations	689.2		(38.4)		261.4		(15.9)		950.6		(54.3)
Other Mortgage- and Asset-backed	228.3		(32.4)		61.2		(13.1)		289.5		(45.5)
Total Fixed Maturities (1)	$	5,352.7	$	(879.8)	$	731.7	$	(151.5)	$	6,084.4	$	(1,031.3)
(1) Includes securities classified as Held-for-Sale Assets on the Condensed Consolidated Balance Sheets. See Note 4, “Dispositions,” for more information.

An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 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	$	168.7	$	(1.8)	$	1.2	$	(0.1)	$	169.9	$	(1.9)
States and Political Subdivisions	385.0		(6.9)		1.5		(0.1)		386.5		(7.0)
Foreign Governments	2.2		(0.6)		2.6		(0.6)		4.8		(1.2)
Corporate Securities:
Bonds and Notes	596.8		(13.1)		49.3		(2.9)		646.1		(16.0)
Redeemable Preferred Stocks	0.1		—		—		—		0.1		—
Collateralized Loan Obligations	250.9		(2.6)		192.6		(2.2)		443.5		(4.8)
Other Mortgage- and Asset-backed	100.1		(1.8)		—		—		100.1		(1.8)
Total Fixed Maturities	$	1,503.8	$	(26.8)	$	247.2	$	(5.9)	$	1,751.0	$	(32.7)

The carrying values of the Company’s Other Investments at September 30, 2022 and December 31, 2021 were:


(Dollars in Millions)	Sep 30, 2022		Dec 31, 2021
Equity Securities at Modified Cost	$	37.0	$	32.3
Convertible Securities at Fair Value	42.6		46.4
Real Estate at Depreciated Cost	94.3		94.0

Mortgage Loans	98.7		96.8
Other	1.6		0.5
Total	$	274.2	$	270.0

Net Investment Income for the nine and three months ended September 30, 2022 and 2021 was:


	Nine Months Ended				Three Months Ended
(Dollars in Millions)	Sep 30, 2022		Sep 30, 2021		Sep 30, 2022		Sep 30, 2021
Investment Income:
Interest on Fixed Income Securities	$	218.4	$	207.1	$	76.9	$	68.4
Dividends on Equity Securities Excluding Alternative Investments	4.3		9.8		1.1		2.9
Alternative Investments:
Equity Method Limited Liability Investments	28.0		50.9		(0.6)		12.0

Limited Liability Investments Included in Equity Securities	34.9		29.3		8.8		9.5
Total Alternative Investments	62.9		80.2		8.2		21.5
Short-term Investments	1.4		0.6		1.1		0.2
Loans to Policyholders	16.3		16.3		5.5		5.4
Real Estate	7.6		7.1		3.1		2.3
Company-Owned Life Insurance	28.0		18.3		9.9		7.2
Other	5.1		4.8		1.7		1.9
Total Investment Income	344.0		344.2		107.5		109.8
Investment Expenses:
Real Estate	5.8		6.8		2.3		2.6
Other Investment Expenses	21.9		18.5		7.4		5.3
Total Investment Expenses	27.7		25.3		9.7		7.9
Net Investment Income	$	316.3	$	318.9	$	97.8	$	101.9

Gross gains and losses on sales of investments in fixed maturities for the nine and three months ended September 30, 2022 and 2021 were:


	Nine Months Ended				Three Months Ended
(Dollars in Millions)	Sep 30, 2022		Sep 30, 2021		Sep 30, 2022		Sep 30, 2021
Fixed Maturities:
Gains on Sales	$	28.0	$	42.7	$	14.2	$	10.3
Losses on Sales	(27.5)		(1.7)		(23.9)		(0.4)
Gains (Losses) on Hedging Activity	—		—		(0.3)		—

The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at September 30, 2022 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	$	612.7	$	1.3	$	(87.2)	$	—	$	526.8
States and Political Subdivisions	1,810.0		8.9		(266.4)		(0.4)		1,552.1
Foreign Governments	4.8		—		(1.1)		—		3.7
Corporate Securities:
Bonds and Notes	3,913.9		10.5		(575.8)		(7.1)		3,341.5
Redeemable Preferred Stocks	9.0		—		(1.0)		—		8.0
Collateralized Loan Obligations	1,006.9		—		(54.3)		—		952.6
Other Mortgage- and Asset-backed	339.1		0.8		(45.5)		—		294.4
Investments in Fixed Maturities (1)	$	7,696.4	$	21.5	$	(1,031.3)	$	(7.5)	$	6,679.1
(1) Includes securities classified as Held-for-Sale Assets on the Condensed Consolidated Balance Sheets. See Note 4, “Dispositions,” for more information.

The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 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	$	610.1	$	29.2	$	(1.9)	$	—	$	637.4
States and Political Subdivisions	1,752.5		144.6		(7.0)		—		1,890.1
Foreign Governments	6.7		—		(1.2)		—		5.5
Corporate Securities:
Bonds and Notes	3,929.0		481.4		(16.0)		(7.5)		4,386.9
Redeemable Preferred Stocks	7.0		0.4		—		—		7.4
Collateralized Loan Obligations	756.0		0.9		(4.8)		—		752.1
Other Mortgage- and Asset-backed	296.9		12.4		(1.8)		—		307.5
Investments in Fixed Maturities	$	7,358.2	$	668.9	$	(32.7)	$	(7.5)	$	7,986.9