The Company classifies its Investments in Fixed Maturities as available-for-sale and reports these investments at fair value. The Company reports equity investments with readily determinable fair values as Equity Securities at Fair Value. Certain investments that are measured at fair value using the net asset value practical expedient are not required to be classified using the fair value hierarchy, but are presented in the following two tables to permit reconciliation of the fair value hierarchy to the amounts presented in the Condensed Consolidated Balance Sheets.


	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	$	85.4	$	403.0	$	—	$	—	$	488.4
States and Political Subdivisions	—		1,354.5		1.4		—		1,355.9
Foreign Governments	—		4.6		—		—		4.6
Corporate Securities:
Bonds and Notes	—		3,455.1		180.5		—		3,635.6
Redeemable Preferred Stock	—		5.8		2.2		—		8.0
Collateralized Loan Obligations	—		938.2		—		—		938.2
Other Mortgage and Asset-backed	—		335.8		5.1		—		340.9
Total Investments in Fixed Maturities	85.4		6,497.0		189.2		—		6,771.6
Equity Securities at Fair Value:
Preferred Stocks:
Finance, Insurance and Real Estate	—		15.9		—		—		15.9
Other Industries	—		7.8		2.2		—		10.0
Common Stocks:
Finance, Insurance and Real Estate	0.6		—		—		—		0.6
Other Industries	0.3		—		0.5		—		0.8
Other Equity Interests:
Exchange Traded Funds	8.7		—		—		—		8.7
Limited Liability Companies and Limited Partnerships	—		—		—		194.1		194.1
Total Investments in Equity Securities at Fair Value	9.6		23.7		2.7		194.1		230.1


Other Investments:


Derivative Instrument Classified as Cash Flow Hedge	—		1.2		—		—		1.2

Total Assets	$	95.0	$	6,521.9	$	191.9	$	194.1	$	7,002.9


	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	$	98.8	$	412.7	$	—	$	—	$	511.5
States and Political Subdivisions	—		1,401.8		0.1		—		1,401.9
Foreign Governments	—		3.8		—		—		3.8
Corporate Securities:
Bonds and Notes	—		3,513.7		177.1		—		3,690.8
Redeemable Preferred Stocks	—		1.2		7.1		—		8.3
Collateralized Loan Obligations	—		949.8		—		—		949.8
Other Mortgage and Asset-backed	—		310.6		5.2		—		315.8
Total Investments in Fixed Maturities	98.8		6,593.6		189.5		—		6,881.9
Equity Securities at Fair Value:
Preferred Stocks:
Finance, Insurance and Real Estate	—		15.6		—		—		15.6
Other Industries	—		7.5		2.4		—		9.9
Common Stocks:
Finance, Insurance and Real Estate	0.6		—		—		—		0.6
Other Industries	0.2		—		0.4		—		0.6
Other Equity Interests:
Exchange Traded Funds	7.7		—		—		—		7.7
Limited Liability Companies and Limited Partnerships	—		—		—		191.4		191.4
Total Investments in Equity Securities at Fair Value	8.5		23.1		2.8		191.4		225.8
Other Investments:





Derivative Instruments Not Designated as Hedges	—		14.7		—		—		14.7


Total Assets	$	107.3	$	6,631.4	$	192.3	$	191.4	$	7,122.4

The Company’s investments in Fixed Maturities that are classified as Level 1 primarily consist of U.S. Treasury Bonds and Notes. The Company’s investments in Equity Securities at Fair Value that are classified as Level 1 consist of either investments in publicly-traded common stocks or exchange traded funds. The Company’s investments in Fixed Maturities that are classified as Level 2 primarily consist of investments in corporate bonds, obligations of states and political subdivisions, collateralized loan obligations, and mortgage-backed securities of U.S. government agencies. The Company’s investments in Equity Securities at Fair Value that are classified as Level 2 primarily consist of investments in preferred stocks. The Company’s Derivative Instruments Designated as Cash Flow Hedges that are classified as Level 2 primarily consist of hedges to manage exposure to upcoming changes in the benchmark (Treasury) interest rate of forecasted transactions. The Company uses a leading, nationally recognized provider of market data and analytics to price the vast majority of the Company’s Level 2 measurements. The provider utilizes evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information. Because many fixed maturity securities do not trade on a daily basis, the provider’s evaluated pricing

applications apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing to prepare evaluations. In addition, the provider uses model processes to develop prepayment and interest rate scenarios. The pricing provider’s models and processes also take into account market convention. For each asset class, teams of its evaluators gather information from market sources and integrate relevant credit information, perceived market movements and sector news into the evaluated pricing applications and models. The Company generally validates the measurements obtained from its primary pricing provider by comparing them with measurements obtained from one additional pricing provider that provides either prices from recent market transactions, quotes in inactive markets or evaluations based on its own proprietary models.

The Company investigates significant differences related to the values provided. On completion of its investigation, management exercises judgment to determine the price selected and whether adjustments, if any, to the price obtained from the Company’s primary pricing provider would warrant classification of the price as Level 3. In instances where a measurement cannot be obtained from either pricing provider, the Company generally will evaluate bid prices from one or more binding quotes obtained from market makers to value investments in inactive markets and classified by the Company as Level 2. The Company generally classifies securities when it receives non-binding quotes or indications as Level 3 securities unless the Company can validate the quote or indication against recent transactions in the market.

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 March 31, 2024. Valuations for assets presented in the tables below are primarily based on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. The quantitative detail of these unobservable inputs is neither provided nor reasonably available to the Company. The weighted average yield is calculated based on fair value.


(Dollars in Millions)	Unobservable Input	Total Fair Value		Range of Unobservable Inputs					Weighted-average Yield
Investment-grade	Market Yield	$	55.3	1.8	%	-	13.5	%	7.9	%
Non-investment-grade:
Senior Debt	Market Yield	31.7		7.0		-	48.0		13.0
Junior Debt	Market Yield	35.8		11.0		-	25.5		13.2

Other	Various	66.4
Total Level 3 Fixed Maturity Investments		$	189.2

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, 2023. Valuations for assets presented in the tables below are primarily based on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. The quantitative detail of these unobservable inputs is neither provided nor reasonably available to the Company. The weighted average yield is calculated based on fair value.


(Dollars in Millions)	Unobservable Input	Total Fair Value		Range of Unobservable Inputs					Weighted-average Yield
Investment-grade	Market Yield	$	60.0	4.2	%	-	15.8	%	8.7	%
Non-investment-grade:
Senior Debt	Market Yield	32.6		9.2		-	36.7		13.5
Junior Debt	Market Yield	32.5		11.8		-	22.5		13.8
Other	Various	64.4
Total Level 3 Fixed Maturity Investments		$	189.5

For an investment in a fixed maturity security, an increase in the yield used to determine the fair value of the security will decrease the fair value of the security. A decrease in the yield used to determine fair value will increase the fair value of the security, but for callable securities the fair value increase is generally limited to par, unless security is currently callable at a premium.


	Fixed Maturities						Equity Securities
(Dollars in Millions)	Corporate Bonds and Notes		States and Political Sub-divisions		Redeemable Preferred Stocks		Other Mortgage- and Asset- backed		Preferred and Common Stocks		Total
Balance, Beginning of Year	$	177.1	$	0.1	$	7.1	$	5.2	$	2.8	$	192.3
Total (Losses) Gains:
Included in Condensed Consolidated Statements of Income (Loss)	(0.2)		—		—		—		(0.1)		(0.3)
Included in Other Comprehensive Income	2.3		(0.4)		—		(0.1)		—		1.8
Purchases	13.2		—		—		—		—		13.2

Sales	(3.7)		—		—		—		—		(3.7)
Transfers into Level 3	—		1.7		—		—		—		1.7
Transfers out of Level 3	(8.2)		—		(4.9)		—		—		(13.1)
Balance, End of Period	$	180.5	$	1.4	$	2.2	$	5.1	$	2.7	$	191.9


	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, Beginning of Year	$	216.0	$	6.8		$	5.1	$	2.1	$	230.0
Total Gains (Losses):
Included in Condensed Consolidated Statements of Income (Loss)	0.4		—			—		(0.5)		(0.1)
Included in Other Comprehensive Income	1.5		—			0.2		—		1.7
Purchases	19.4		—			—		—		19.4

Sales	(41.2)		—			—		—		(41.2)
Transfers into Level 3	—		—			—		0.4		0.4

Balance, End of Period	$	196.1	$	6.8		$	5.3	$	2.0	$	210.2


(Dollars in Millions)	March 31, 2024				December 31, 2023
Asset Class	Fair Value Using NAV		Unfunded Commitments		Fair Value Using NAV		Unfunded Commitments
Reported as Equity Method Limited Liability Investments:
Mezzanine Debt	$	123.2	$	42.6	$	125.4	$	43.1
Real Estate	42.0		—		41.9		—
Senior Debt	19.2		39.5		19.0		39.9
Leveraged Buyout	8.5		0.6		8.6		0.6
Secondary Transactions	6.8		1.6		7.9		1.7
Distressed Debt	6.1		—		7.9		—
Growth Equity	0.8		—		1.2		—
Hedge Fund	0.1		—		0.1		—
Other	8.5		0.2		9.7		—
Total Equity Method Limited Liability Investments	215.2		84.5		221.7		85.3

Reported as Other Equity Interests at Fair Value:
Mezzanine Debt	127.7		66.3		124.0		67.0
Senior Debt	24.7		10.8		24.8		10.6
Leveraged Buyout	19.7		9.5		19.0		10.0
Distressed Debt	12.9		13.0		12.4		13.0
Growth Equity	6.3		6.5		6.4		6.5
Secondary Transactions	2.7		3.1		2.8		3.1
Hedge Funds	—		—		1.9		—
Real Estate	0.1		0.2		0.1		0.2

Total Reported as Other Equity Interests at Fair Value	194.1		109.4		191.4		110.4

Reported as Equity Securities at Modified Cost:
Other	4.6		—		4.8		—
Total Reported as Equity Securities at Modified Cost	4.6		—		4.8		—
Total Investments in Limited Liability Companies and Limited Partnerships	$	413.9	$	193.9	$	417.9	$	195.7

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.


Asset Class						Investment Category Includes
Mezzanine Debt						Funds with investments in junior or subordinated debt and potentially minority equity securities issued by private companies.
Senior Debt						Funds with investments in senior or first lien debt and potentially minority equity securities typically issued by private companies.
Distressed Debt						Funds 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 Transactions						Funds that focus on purchasing third party fund interests from investors seeking liquidity within their own portfolio.
Hedge Fund						Funds that focus primarily on investing in public securities with strategy of generating uncorrelated returns to the public markets.
Leveraged Buyout						Funds with control equity investments in more mature, positive cash flowing, private companies that are typically purchased with the use of financial leverage.
Growth Equity						Funds 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 Estate						Funds with investments in multi-family housing properties.
Other						Consists of direct investments of preferred equity or minority common equity investments into private companies structured as limited partnerships or limited liability companies.


	March 31, 2024				December 31, 2023
(Dollars in Millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets:
Loans to Policyholders	$	280.5	$	280.5	$	281.2	$	281.2
Short-term Investments	520.7		520.7		520.9		520.9
Mortgage Loans	93.1		93.1		99.8		99.8
Company-Owned Life Insurance	515.7		515.7		513.5		513.5
Equity Securities at Modified Cost	24.7		24.7		32.6		32.6
Financial Liabilities:
Long-term Debt	$	1,389.8	$	1,246.8	$	1,389.2	$	1,213.4
Policyholder Obligations	563.2		563.2		557.4		557.4

Loans to policyholders are carried at unpaid principal balance which approximates fair value and are categorized as Level 3 within the fair value hierarchy. The nature of policy loans is to have a negligible default risk as the loans are fully collateralized by the value of the policy. Policy loans do not have a stated maturity and the balances and accrued interest are repaid either by the policyholder or with proceeds from the policy. Due to the collateralized nature of policy loans and unpredictable timing of payments, the Company believes the carrying value of policy loans approximates fair value. The fair value measurement of Short-term Investments is estimated using inputs that are considered either Level 1 or Level 2 measurements. The Mortgage Loans fair value measurement is considered equal to amortized cost given the short-term nature of the investments. The fair value measurement of Equity Securities at Modified Cost is estimated using inputs that are considered Level 3 measurements. The cash surrender value of Company-Owned Life Insurance approximates fair value and is considered to be a Level 2 investment. The fair value of Long-term Debt is estimated using quoted prices for similar liabilities in markets that are not active. The inputs used in the valuation are considered Level 2 measurements. Policyholder Obligations presented in the preceding table consist of advances from the FHLB of Chicago, and the inputs used in the valuation are considered Level 2 measurements.