Fair Value Measurements (Tables)

3 Months Ended

9 Months Ended

Mar. 31, 2022

Sep. 30, 2022

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis

The valuation of assets and liabilities measured at fair value in Company’s Condensed Consolidated Balance Sheets at September 30, 2022 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
Assets:
Fixed Maturities:
U.S. Government and Government Agencies and Authorities	$	112.0	$	414.8	$	—	$	—	$	526.8
States and Political Subdivisions	—		1,552.1		—		—		1,552.1
Foreign Governments	—		3.7		—		—		3.7
Corporate Securities:
Bonds and Notes	—		3,122.8		218.7		—		3,341.5
Redeemable Preferred Stock	—		1.2		6.8		—		8.0
Collateralized Loan Obligations	—		952.6		—		—		952.6
Other Mortgage and Asset-backed	—		289.2		5.2		—		294.4
Total Investments in Fixed Maturities (1)	112.0		6,336.4		230.7		—		6,679.1
Equity Securities at Fair Value:
Preferred Stocks:
Finance, Insurance and Real Estate	—		29.8		—		—		29.8
Other Industries	—		9.7		2.0		—		11.7
Common Stocks:
Finance, Insurance and Real Estate	0.9		—		—		—		0.9
Other Industries	0.2		0.4		0.5		—		1.1
Other Equity Interests:
Exchange Traded Funds	70.7		—		—		—		70.7
Limited Liability Companies and Limited Partnerships	—		—		—		208.5		208.5
Total Investments in Equity Securities at Fair Value	71.8		39.9		2.5		208.5		322.7
Convertible Securities at Fair Value	—		42.6		—		—		42.6
Total Assets	$	183.8	$	6,418.9	$	233.2	$	208.5	$	7,044.4
Liabilities:
Accrued Expenses and Other Liabilities:
Derivative Instruments Designated as Cash Flow Hedges	$	—	$	0.3	$	—	$	—	$	0.3
Total Liabilities	$	—	$	0.3	$	—	$	—	$	0.3
(1) Includes securities classified as Held-for-Sale Assets on the Condensed Consolidated Balance Sheets. See Note 4, “Dispositions,” for more information.

The valuation of assets measured at fair value in the Company’s Consolidated Balance Sheets at December 31, 2021 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
Assets:
Fixed Maturities:
U.S. Government and Government Agencies and Authorities	$	132.8	$	504.6	$	—	$	—	$	637.4
States and Political Subdivisions	—		1,890.1		—		—		1,890.1
Foreign Governments	—		5.5		—		—		5.5
Corporate Securities:
Bonds and Notes	—		4,150.1		236.8		—		4,386.9
Redeemable Preferred Stocks	—		1.3		6.1		—		7.4
Collateralized Loan Obligations	—		752.1		—		—		752.1
Other Mortgage and Asset-backed	—		300.5		7.0		—		307.5
Total Investments in Fixed Maturities	132.8		7,604.2		249.9		—		7,986.9
Equity Securities at Fair Value:
Preferred Stocks:
Finance, Insurance and Real Estate	—		34.2		—		—		34.2
Other Industries	—		16.1		1.5		—		17.6
Common Stocks:
Finance, Insurance and Real Estate	18.9		—		—		—		18.9
Other Industries	2.9		—		—		—		2.9
Other Equity Interests:
Exchange Traded Funds	432.0		—		—		—		432.0
Limited Liability Companies and Limited Partnerships	—		—		—		325.0		325.0
Total Investments in Equity Securities at Fair Value	453.8		50.3		1.5		325.0		830.6
Other Investments:
Convertible Securities at Fair Value	—		46.4		—		—		46.4
Total Assets	$	586.6	$	7,700.9	$	251.4	$	325.0	$	8,863.9

Fair Value Measurement Inputs and Valuation Techniques

The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments classified as Level 3 at December 31, 2021.

(Dollars in Millions)	Unobservable Input	Total Fair Value		Range of Unobservable Inputs					Weighted-average Yield
Investment-grade	Market Yield	$	87.9	2.3	%	-	10.3	%	5.4	%
Non-investment-grade:
Senior Debt	Market Yield	76.1		5.1		-	20.2		8.5
Junior Debt	Market Yield	53.9		6.0		-	27.5		15.0
Other	Various	32.0
Total Level 3 Fixed Maturity Investments		$	249.9

The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments classified as Level 3 at September 30, 2022.

(Dollars in Millions)	Unobservable Input	Total Fair Value		Range of Unobservable Inputs					Weighted-average Yield
Investment-grade	Market Yield	$	63.4	4.6	%	-	12.9	%	8.6	%
Non-investment-grade:
Senior Debt	Market Yield	67.6		6.2		-	34.5		10.3
Junior Debt	Market Yield	48.0		9.1		-	27.9		17.7
Other	Various	51.7
Total Level 3 Fixed Maturity Investments		$	230.7

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the nine months ended September 30, 2022 is presented below.

	Fixed Maturities						Equity Securities
(Dollars in Millions)	Corporate Bonds and Notes		Redeemable Preferred Stocks		Other Mortgage- and Asset- backed		Preferred and  Common Stocks		Total
Balance at Beginning of Year	$	236.8	$	6.1	$	7.0	$	1.5	$	251.4
Total Gains (Losses):
Included in Condensed Consolidated Statement of Income	(12.2)		—		—		—		(12.2)
Included in Other Comprehensive Income (Loss)	(12.2)		(1.3)		(1.8)		0.2		(15.1)
Purchases	115.1		2.0		—		2.7		119.8
Settlements	—		—		—		—		—
Sales	(126.0)		—		—		(1.9)		(127.9)
Transfers into Level 3	22.9		—		—		—		22.9
Transfers out of Level 3	(5.7)		—		—		—		(5.7)
Balance at End of Period	$	218.7	$	6.8	$	5.2	$	2.5	$	233.2

The transfers into and out of Level 3 were due primarily 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 September 30, 2022 is presented below.

	Fixed Maturities						Equity Securities
(Dollars in Millions)	Corporate Bonds and Notes		Redeemable Preferred Stocks		Other Mortgage- and Asset- backed		Preferred and  Common Stocks		Total
Balance at Beginning of Period	$	177.1	$	6.9	$	5.6	$	1.7	$	191.3
Total Gains (Losses):
Included in Condensed Consolidated Statement of Income (Loss)	(6.3)		—		—		—		(6.3)
Included in Other Comprehensive Income (Loss)	(2.8)		(0.1)		(0.4)		—		(3.3)
Purchases	93.5		—		—		2.7		96.2
Settlements	—		—		—		—		—
Sales	(60.4)		—		—		(1.9)		(62.3)
Transfers into Level 3	17.6		—		—		—		17.6
Transfers out of Level 3	—		—		—		—		—
Balance at End of Period	$	218.7	$	6.8	$	5.2	$	2.5	$	233.2

The transfers into and out of Level 3 were due primarily to changes in the availability of market observable inputs.

Note 9 - Fair Value Measurements (Continued)

Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the nine months ended September 30, 2021 is presented below.

	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 (Loss)	0.9		—		—		—		0.3		1.2
Included in Other Comprehensive Income (Loss)	5.5		(0.1)		0.1		(0.5)		—		5.0
Purchases	46.9		—		17.7		16.2		1.7		82.5
Settlements	—		—		—		(0.1)		—		(0.1)
Sales	(94.4)		—		(10.0)		(0.2)		—		(104.6)
Transfers into Level 3	2.5		—		10.0		—		1.7		14.2
Transfers out of Level 3	(180.8)		—		(17.8)		(11.1)		(2.6)		(212.3)
Balance at End of Period	$	213.6	$	6.1	$	—	$	14.3	$	1.1	$	235.1

The transfers into and out of 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 September 30, 2021 is presented below.

	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	$	409.2	$	6.2	$	27.8	$	18.2	$	3.4	$	464.8
Total Gains (Losses):
Included in Condensed Consolidated Statement of Income	0.9		—		—		—		0.3		1.2
Included in Other Comprehensive Income (Loss)	4.7		(0.1)		—		—		—		4.6
Purchases	7.4		—		—		7.2		—		14.6
Settlements	—		—		—		—		—		—
Sales	(28.4)		—		(10.0)		—		—		(38.4)
Transfers into Level 3	—		—		—		—		—		—
Transfers out of Level 3	(180.2)		—		(17.8)		(11.1)		(2.6)		(211.7)
Balance at End of Period	$	213.6	$	6.1	$	—	$	14.3	$	1.1	$	235.1

Fair Value, by Balance Sheet Grouping

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

	September 30, 2022				December 31, 2021
(Dollars in Millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets:
Loans to Policyholders (1)	$	283.9	$	283.9	$	286.2	$	286.2
Short-term Investments (1)	357.6		357.6		284.1		284.1
Mortgage Loans	98.7		98.7		96.8		96.8
Company-Owned Life Insurance	578.6		578.6		$	448.1	$	448.1
Equity Securities at Modified Cost	37.0		37.0		32.3		32.3
Financial Liabilities:
Long-term Debt	$	1,386.4	$	1,204.1	$	1,121.9	$	1,152.1
Policyholder Obligations	602.6		602.6		401.9		401.9
(1) September 30, 2022 includes investments classified as Held-for-Sale Assets on the Condensed Consolidated Balance Sheets. See Note 4, “Dispositions,” for more information.