
DOLLARS IN MILLIONS	Amortized Cost		Gross Unrealized				Allowance for Expected Credit Losses		Fair Value
			Gains		Losses
U.S. Government and Government Agencies and Authorities	$	612.5	$	1.3	$	(85.8)	$	—	$	528.0
States and Political Subdivisions	1,797.6		10.3		(238.3)		(0.7)		1,568.9
Foreign Governments	5.0		—		(0.9)		—		4.1
Corporate Securities:
Bonds and Notes	4,030.3		17.7		(499.7)		(8.9)		3,539.4
Redeemable Preferred Stocks	9.0		—		(1.0)		—		8.0
Collateralized Loan Obligations	1,014.7		—		(60.8)		—		953.9
Other Mortgage- and Asset-backed	342.7		0.1		(50.3)		—		292.5
Investments in Fixed Maturities	$	7,811.8	$	29.4	$	(936.8)	$	(9.6)	$	6,894.8


	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

Other Receivables included $5.8 million and $0.6 million of unsettled sales of Investments in Fixed Maturities at December 31, 2022 and December 31, 2021, respectively. Accrued Expenses and Other Liabilities included unsettled purchases of Investments in Fixed Maturities of $25.9 million and $12.7 million at December 31, 2022 and 2021, respectively.


DOLLARS IN MILLIONS	Amortized Cost		Fair Value
Due in One Year or Less	$	151.1	$	146.9
Due after One Year to Five Years	991.8		952.3
Due after Five Years to Ten Years	1,231.1		1,071.9
Due after Ten Years	3,598.8		3,070.3
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date	1,839.0		1,653.4
Investments in Fixed Maturities	$	7,811.8	$	6,894.8

Investments in Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date at December 31, 2022 consisted of securities issued by the Government National Mortgage Association with a fair value of $245.6 million, securities issued by the Federal National Mortgage Association with a fair value of $95.5 million, securities issued by the Federal Home Loan Mortgage Corporation with a fair value of $65.9 million and securities of other non-governmental issuers with a fair value of $1,246.5 million.


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	$	337.3	$	(49.3)	$	126.5	$	(36.5)	$	463.8	$	(85.8)
States and Political Subdivisions	854.7		(140.6)		276.8		(97.7)		1,131.5		(238.3)
Foreign Governments	0.1		—		2.6		(0.9)		2.7		(0.9)
Corporate Securities:
Bonds and Notes	2,730.6		(373.9)		424.4		(125.8)		3,155.0		(499.7)
Redeemable Preferred Stocks	7.7		(1.0)		—		—		7.7		(1.0)
Collateralized Loan Obligations	568.2		(34.2)		373.9		(26.6)		942.1		(60.8)
Other Mortgage- and Asset-backed	205.4		(28.9)		79.5		(21.4)		284.9		(50.3)
Total Fixed Maturities	$	4,704.0	$	(627.9)	$	1,283.7	$	(308.9)	$	5,987.7	$	(936.8)

The Company regularly reviews its fixed maturity investment portfolio for factors that may indicate that a decline in fair value of an investment has resulted from an expected credit loss. The portions of the declines in the fair values of fixed maturity investments that are determined to be due to expected credit losses are reported as losses in the Consolidated Statements of (Loss) Income in the periods when such determinations are made.

Investment-grade fixed maturity investments comprised $904.0 million and below-investment-grade fixed maturity investments comprised $32.8 million of the unrealized losses on investments in fixed maturities at December 31, 2022. For below-investment-grade fixed maturity investments in an unrealized loss position, the unrealized loss amount, on average, was 11% of the amortized cost basis.

At December 31, 2022 and December 31, 2021, the Company did not have the intent to sell these investments, and it was not more likely than not that the Company would be required to sell these investments before an anticipated recovery of value. The Company evaluated these investments for credit losses at December 31, 2022 and December 31, 2021. The Company considers many factors in evaluating whether the unrealized losses were credit related including, but not limited to, the extent to which the fair value has been less than amortized cost, conditions related to the security, industry, or geographic area, payment structure of the investment and the likelihood of the issuer’s ability to make contractual cashflows, defaults or other collectability concerns related to the issuer, changes in the ratings assigned by a rating agency, and other credit enhancements that affect the investment’s expected performance. The Company determined that the unrealized losses on these securities were due to non-credit related factors at the evaluation date.


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	$	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)

Investment-grade fixed maturity investments comprised $23.7 million and below-investment-grade fixed maturity investments comprised $9.0 million of the unrealized losses on investments in fixed maturities at December 31, 2021. For below-investment-grade fixed maturity investments in an unrealized loss position, the unrealized loss amount, on average, was approximately 4% of the amortized cost basis of the investment.


	States and Political Subdivisions		Corporate Bonds and Notes		Total
(Dollars in Millions)
Beginning of the Year	$	—	$	7.5	$	7.5
Additions for Securities for which No Previous Expected Credit Losses were Recognized	0.7		6.3		7.0
Net Increase in Allowance on Securities for which Expected Credit Losses were Previously Recognized	—		5.8		5.8
Write-offs Charged Against Allowance	—		(10.7)		(10.7)
End of Year	$	0.7	$	8.9	$	9.6


	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	—		5.6		5.6
Net Decrease in Allowance on Securities for which Expected Credit Losses were Previously Recognized	(0.3)		(0.8)		(1.1)
Write-offs Charged Against Allowance	—		(0.3)		(0.3)
End of Year	$	—	$	7.5	$	7.5

Equity securities with readily-determinable fair values, including equity securities which the Company previously classified as Fair Value Option Investments, are classified as Equity Securities at Fair Value in the Consolidated Balance Sheets with changes in fair value recorded as Income from Change in Fair Value of Equity and Convertible Securities in the Consolidated Statements of (Loss) Income. Net unrealized gains arising during the year ended December 31, 2022 and recognized in earnings, related to such investments still held as of December 31, 2022 were $6.2 million.

Equity Method Limited Liability Investments include investments in limited liability investment companies and limited partnerships in which the Company’s interests are not deemed minor and are accounted for under the equity method of accounting. The Company’s investments in Equity Method Limited Liability Investments are generally of a passive nature in that the Company does not take an active role in the management of the investment entity.

In 2022 and 2021, aggregate investment income from Equity Method Limited Liability Investments exceeded 10% of the Company’s pretax consolidated net income. Accordingly, the Company is disclosing aggregated summarized financial data for its Equity Method Limited Liability Investments for all periods presented in the Consolidated Financial Statements. Such aggregated summarized financial data does not represent the Company’s proportionate share of the Equity Method Limited Liability Investment assets or earnings. Aggregate total assets of the Equity Method Limited Liability Investments in which the Company invested totaled $5,585.9 million, $5,042.5 million and $3,554.5 million, as of December 31, 2022, 2021, and 2020, respectively. Aggregate total liabilities of the Equity Method Limited Liability Investments in which the Company invested

totaled $2,367.0 million, $2,074.8 million and $1,602.5 million, as of December 31, 2022, 2021, and 2020, respectively. Aggregate net income of the Equity Method Limited Liability Investments in which the Company invested totaled $381.8 million, $585.1 million and $74.9 million for the years ended December 31, 2022, 2021, and 2020, respectively. The aggregate summarized financial data is based on the most recent and sufficiently-timely financial information available to the Company as of the respective reporting dates and periods. The Company’s maximum exposure to loss at December 31, 2022 is limited to the total carrying value of $217.0 million. In addition, the Company had outstanding commitments totaling approximately $95.9 million to fund Equity Method Limited Liability Investments at December 31, 2022. At December 31, 2022, 2.1% of Equity Method Limited Liability Investments were reported without a reporting lag, 6.2% of the total carrying value were reported with a one month lag, and the remainder were reported with more than a one month lag.

Alternative Energy Partnership Investments include partnerships formed to invest in newly installed residential solar leases and power purchase agreements. As a result of this investment, the Company has the right to certain investment tax credits and tax depreciation benefits, and to a lesser extent, cash flows generated from the installed solar systems leased to individual consumers for a fixed period of time. The HLBV equity method of accounting is used for the Company’s investments in Alternative Energy Partnership Investments.

The Company’s maximum exposure to loss at December 31, 2022 is limited to the total carrying value of $16.3 million. The Company has no outstanding commitments to fund Alternative Energy Partnership Investments as of December 31, 2022. Alternative Energy Partnership Investments are reported on a three month lag.

Loans to Policyholders represents funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. Interest income on policy loans is recognized in Net Investment Income at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies.

Investments in Equity Securities at Modified Cost were $38.4 million and $32.3 million at December 31, 2022 and December 31, 2021, respectively. The Company performs a qualitative impairment analysis on a quarterly basis consisting of various factors such as earnings performance, current market conditions, changes in credit ratings, changes in the regulatory environment and other factors. If the qualitative analysis identifies the presence of impairment indicators, the Company estimates the fair value of the investment. If the estimated fair value is below the carrying value, the Company records an impairment in the Consolidated Statements of (Loss) Income to reduce the carrying value to the estimated fair value. When the Company identifies observable transactions of the same or similar securities to those held by the Company, the Company increases or decreases the carrying value to the observable transaction price. The Company did not recognize any changes in carrying value due to observable transactions for the year ended December 31, 2022. The Company did not recognize any impairment on Equity Securities at Modified Cost for the year ended December 31, 2022 as a result of the Company’s impairment analysis. The Company recognized no cumulative increases or decreases in the carrying value due to observable transactions and $9.6 million of cumulative impairments on Equity Securities at Modified Cost held as of December 31, 2022.


DOLLARS IN MILLIONS	2022		2021		2020
Investment Income:
Interest on Fixed Income Securities	$	300.1	$	277.7	$	289.8
Dividends on Equity Securities Excluding Alternative Investments	6.3		15.9		15.4
Alternative Investments:
Equity Method Limited Liability Investments	31.3		56.7		4.9

Limited Liability Investments Included in Equity Securities	42.1		46.9		22.1
Total Alternative Investments	73.4		103.6		27.0
Short-term Investments	3.7		1.0		5.5
Loans to Policyholders	21.5		21.7		22.1
Real Estate	10.1		9.3		9.6
Company-Owned Life Insurance	37.9		25.7		12.9
Other	7.7		6.7		0.3
Total Investment Income	460.7		461.6		382.6
Investment Expenses:
Real Estate	7.9		9.7		8.8
Other Investment Expenses	30.2		24.6		25.6
Total Investment Expenses	38.1		34.3		34.4
Net Investment Income	$	422.6	$	427.3	$	348.2


DOLLARS IN MILLIONS	2022		2021		2020
Fixed Maturities:
Gains on Sales	$	31.6	$	63.4	$	40.6
Losses on Sales	(31.9)		(2.1)		(7.9)
Gains on Hedging Activity	1.7		—		—
Equity Securities:
Gains on Sales	9.7		4.1		5.9
Losses on Sales	(6.8)		(0.7)		(1.9)
Equity Method Limited Liability Investments:
Gains on Sales	—		0.4		—
Losses on Sales	—		—		(0.4)
Real Estate:
Gains on Sales	—		0.1		1.8
Losses on Sales	—		(0.4)		—





Net Realized Investment Gains	$	4.3	$	64.8	$	38.1

Gross Gains on Sales	$	41.3	$	68.0	$	48.3
Gross Losses on Sales	(38.7)		(3.2)		(10.2)
Gains on Hedging Activity	1.7		—		—
Net Realized Investment Gains	$	4.3	$	64.8	$	38.1