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Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
The valuation of assets measured at fair value in the Company’s Condensed Consolidated Balance Sheet at March 31, 2023 is summarized below. The Company has no material liabilities that are measured and reported at fair value.
 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 ValueTotal Fair Value
Assets:
Fixed Maturities:
U.S. Government and Government Agencies and Authorities$120.8 $443.2 $— $— $564.0 
States and Political Subdivisions— 1,622.9 — — 1,622.9 
Foreign Governments— 4.0 — — 4.0 
Corporate Securities:
Bonds and Notes— 3,507.2 196.1 — 3,703.3 
Redeemable Preferred Stock— 1.2 6.8 — 8.0 
Collateralized Loan Obligations— 981.9 — — 981.9 
Other Mortgage- and Asset-backed— 300.0 5.3 — 305.3 
Total Investments in Fixed Maturities120.8 6,860.4 208.2 — 7,189.4 
Equity Securities at Fair Value:
Preferred Stocks:
Finance, Insurance and Real Estate— 28.8 — — 28.8 
Other Industries— 9.6 1.6 — 11.2 
Common Stocks:
Finance, Insurance and Real Estate0.6 — — — 0.6 
Other Industries0.2 — 0.4 — 0.6 
Other Equity Interests:
Exchange Traded Funds6.8 — — — 6.8 
Limited Liability Companies and Limited Partnerships— — — 195.6 195.6 
Total Investments in Equity Securities at Fair Value7.6 38.4 2.0 195.6 243.6 
Other Investments:
Convertible Securities at Fair Value — 45.3 — — 45.3 
Derivative Investments Designated as Cash Flow Hedges— 3.5 — — 3.5 
Derivative Instruments Not Designated as Hedges— 4.5 — — 4.5 
Total Assets$128.4 $6,952.1 $210.2 $195.6 $7,486.3 
The valuation of assets measured at fair value in the Company’s Consolidated Balance Sheet at December 31, 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$103.6 $424.4 $— $— $528.0 
States and Political Subdivisions— 1,568.9 — — 1,568.9 
Foreign Governments— 4.1 — — 4.1 
Corporate Securities:
Bonds and Notes— 3,323.4 216.0 — 3,539.4 
Redeemable Preferred Stocks— 1.2 6.8 — 8.0 
Collateralized Loan Obligations— 953.9 — — 953.9 
Other Mortgage- and Asset-backed— 287.4 5.1 — 292.5 
Total Investments in Fixed Maturities103.6 6,563.3 227.9 — 6,894.8 
Equity Securities at Fair Value:
Preferred Stocks:
Finance, Insurance and Real Estate— 29.0 — — 29.0 
Other Industries— 9.2 1.6 — 10.8 
Common Stocks:
Finance, Insurance and Real Estate0.9 — — — 0.9 
Other Industries0.3 0.4 0.5 — 1.2 
Other Equity Interests:
Exchange Traded Funds12.2 — — — 12.2 
Limited Liability Companies and Limited Partnerships— — — 189.1 189.1 
Total Investments in Equity Securities at Fair Value13.4 38.6 2.1 189.1 243.2 
Convertible Securities at Fair Value— 43.3 — — 43.3 
Other Investments:
Derivative Instruments Not Designated as Hedges— 1.7 — — 1.7 
Total Assets$117.0 $6,646.9 $230.0 $189.1 $7,183.0 
Liabilities:
Accrued Expenses and Other Liabilities:
Derivative Instruments Designated as Cash Flow Hedges$— $(0.4)$— $— $(0.4)
Total Liabilities$— $(0.4)$— $— $(0.4)
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 in corporate securities classified as Level 3 at March 31, 2023.
(Dollars in Millions)Unobservable InputTotal Fair ValueRange of Unobservable InputsWeighted-average Yield
Investment-gradeMarket Yield$64.1 4.2%-14.0%8.9 %
Non-investment-grade:
Senior DebtMarket Yield48.6 4.6-36.712.8 
Junior DebtMarket Yield36.8 11.5-23.315.2 
OtherVarious58.7 
Total Level 3 Fixed Maturity Investments$208.2 
The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments in corporate securities classified as Level 3 at December 31, 2022.
(Dollars in Millions)Unobservable InputTotal Fair ValueRange of Unobservable InputsWeighted-average Yield
Investment-gradeMarket Yield$56.5 4.6%-14.5%9.2 %
Non-investment-grade:
Senior DebtMarket Yield72.9 4.6-36.710.9 
Junior DebtMarket Yield42.1 8.8-22.515.1 
OtherVarious56.4 
Total Level 3 Fixed Maturity Investments$227.9 
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 three months ended March 31, 2023 is presented below.
 Fixed MaturitiesEquity 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$216.0 $6.8 $5.1 $2.1 $230.0 
Total Gains (Losses):
Included in Condensed Consolidated Statements of Loss 0.4 — — (0.5)(0.1)
Included in Other Comprehensive (Loss) Income1.5 — 0.2 — 1.7 
Purchases19.4 — — — 19.4 
Settlements— — — — — 
Sales(41.2)— — — (41.2)
Transfers into Level 3— — — 0.4 0.4 
Transfers out of Level 3— — — — — 
Balance at End of Period$196.1 $6.8 $5.3 $2.0 $210.2 
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 March 31, 2022 is presented below.
 Fixed MaturitiesEquity 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 Losses:
Included in Condensed Consolidated Statements of Loss(5.7)— — — (5.7)
Included in Other Comprehensive Income Loss(1.7)(0.5)(0.8)— (3.0)
Purchases13.7 — — — 13.7 
Settlements— — — — — 
Sales(42.8)— — — (42.8)
Transfers into Level 35.3 — — — 5.3 
Transfers out of Level 3— — — — — 
Balance at End of Period$205.6 $5.6 $6.2 $1.5 $218.9 
The transfers into and out of Level 3 were due to changes in the availability of market observable inputs.
Note 10 - Fair Value Measurements (Continued)
The table below shows investments reported at fair value using NAV and their unfunded commitments by asset class as of March 31, 2023 and December 31, 2022.
(Dollars in Millions)
March 31, 2023
December 31, 2022
Asset ClassFair Value Using NAVUnfunded
Commitments
Fair Value Using NAVUnfunded
Commitments
Reported as Equity Method Limited Liability Investments:
Mezzanine Debt$117.3 $53.3 $114.3 $51.6 
Senior Debt21.8 40.7 21.6 42.0 
Distressed Debt8.3 — 9.4 — 
Secondary Transactions9.1 1.7 9.3 1.7 
Hedge Fund0.1 — 0.5 — 
Leveraged Buyout9.2 0.7 8.9 0.6 
Growth Equity1.2 — 1.2 — 
Real Estate43.3 — 43.3 — 
Other8.4 — 8.5 — 
Total Equity Method Limited Liability Investments218.7 96.4 217.0 95.9 
Alternative Energy Partnership Investments17.0 — 16.3 — 
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt111.4 62.4 106.0 56.0 
Senior Debt21.9 6.0 21.9 6.0 
Distressed Debt12.7 13.0 12.5 13.0 
Secondary Transactions3.1 4.3 3.5 4.2 
Hedge Funds17.7 — 18.1 — 
Leveraged Buyout22.3 7.9 21.6 9.0 
Growth Equity6.3 6.7 5.4 7.9 
Real Estate0.2 0.2 — — 
Other— — 0.1 0.2 
Total Reported as Other Equity Interests at Fair Value195.6 100.5 189.1 96.3 
Reported as Equity Securities at Modified Cost:
Other8.3 — 8.3 — 
Total Reported as Equity Securities at Modified Cost
8.3 — 8.3 — 
     Total Investments in Limited Liability Companies and Limited Partnerships$439.6 $196.9 $430.7 $192.2 
At March 31, 2023, the Company had unfunded commitments to invest an additional $196.9 million in certain limited liability investment companies and limited partnerships that will be included in Other Equity Interests and Equity Method Limited Liability Investments if funded.
The fund investments included above (excluding Hedge Funds) are not redeemable, because distributions from the funds will be received when underlying investments of the funds are liquidated. The funds are generally expected to have approximately 10 year lives at their inception, but these lives may be extended at the fund manager’s discretion, typically in one or two-year increments.
Note 10 - Fair Value Measurements (Continued)
The hedge fund investments included above, which are carried at fair value, are generally redeemable subject to the redemption notices period. The majority of the hedge fund investments are redeemable monthly or quarterly.

The following table includes information related to the Company’s investments in certain private equity funds or hedge funds that calculate a net asset value per share:

Asset ClassInvestment Category Includes
Mezzanine DebtFunds with investments in junior or subordinated debt and potentially minority equity securities issued by private companies.
Senior DebtFunds with investments in senior or first lien debt and potentially minority equity securities typically issued by private companies.
Distressed DebtFunds with debt or minority equity investments that are made opportunistically in companies that are in or near default or under financial strain with potential to have an active role in restructuring company.
Secondary TransactionsFunds that focus on purchasing third party fund interests from investors seeking liquidity within their own portfolio.
Hedge FundFunds that focus primarily on investing in public securities with strategy of generating uncorrelated returns to the public markets.
Leveraged BuyoutFunds with control equity investments in more mature, positive cash flowing, private companies that are typically purchased with the use of financial leverage.
Growth EquityFunds that invest in early or venture stage companies with high growth potential with view towards generating realizations through sale or initial public offering (“IPO”) of company.
Real EstateFunds with investments in multi-family housing properties.
OtherConsists of direct investments of preferred equity or minority common equity investments into private companies structured as limited partnerships or limited liability companies.
Fair Value, by Balance Sheet Grouping
Presented below are the carrying values and fair value estimates of financial instruments not carried at fair value.
 March 31, 2023December 31, 2022
(Dollars in Millions)Carrying ValueFair ValueCarrying ValueFair Value
Financial Assets:
Loans to Policyholders$283.1 $283.1 $283.4 $283.4 
Short-term Investments278.4 278.4 278.4 278.4 
Mortgage Loans85.7 85.7 91.1 91.1 
Company-Owned Life Insurance595.3 595.3 $586.5 $586.5 
Equity Securities at Modified Cost37.1 37.1 38.4 38.4 
Financial Liabilities:
Long-term Debt$1,387.5 $1,222.0 $1,386.9 $1,195.1 
Policyholder Obligations601.0 601.0 601.0 601.0