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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2025

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 June 30, 2025 is summarized below. The Company had no material liabilities that are measured and reported at fair values.


	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	$	102.9	$	490.1	$	—	$	—	$	593.0
States and Political Subdivisions	—		1,219.7		0.2		—		1,219.9
Foreign Governments	—		6.7		—		—		6.7
Corporate Securities:
Bonds and Notes	—		3,338.0		261.6		—		3,599.6
Redeemable Preferred Stock	—		5.8		4.3		—		10.1
Collateralized Loan Obligations	—		815.5		52.8		—		868.3
Other Mortgage and Asset-backed	—		349.0		22.5		—		371.5
Total Investments in Fixed Maturities	102.9		6,224.8		341.4		—		6,669.1
Equity Securities at Fair Value:
Preferred Stocks:
Finance, Insurance and Real Estate	—		13.1		2.6		—		15.7
Other Industries	—		7.0		0.5		—		7.5
Common Stocks:
Finance, Insurance and Real Estate	—		—		—		—		—
Other Industries	50.6		—		1.7		—		52.3
Other Equity Interests:
Exchange Traded Funds	10.2		—		—		—		10.2
Limited Liability Companies and Limited Partnerships	—		—		—		198.4		198.4
Total Investments in Equity Securities at Fair Value	60.8		20.1		4.8		198.4		284.1
Other Investments:
Derivative Instrument Classified as Cash Flow Hedge	—		3.0		—		—		3.0
Total Assets	$	163.7	$	6,247.9	$	346.2	$	198.4	$	6,956.2

The valuation of assets and liabilities measured at fair value in the Company’s Consolidated Balance Sheets at December 31, 2024 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	$	86.8	$	400.0	$	—	$	—	$	486.8
States and Political Subdivisions	—		1,231.4		1.8		—		1,233.2
Foreign Governments	—		6.6		—		—		6.6
Corporate Securities:
Bonds and Notes	—		3,325.4		194.2		—		3,519.6
Redeemable Preferred Stocks	—		4.7		4.2		—		8.9
Collateralized Loan Obligations	—		741.5		—		—		741.5
Other Mortgage and Asset-backed	—		408.0		5.0		—		413.0
Total Investments in Fixed Maturities	86.8		6,117.6		205.2		—		6,409.6
Equity Securities at Fair Value:
Preferred Stocks:
Finance, Insurance and Real Estate	—		13.1		—		—		13.1
Other Industries	—		6.7		2.8		—		9.5
Common Stocks:
Finance, Insurance and Real Estate	0.3		—		—		—		0.3
Other Industries	0.1		—		1.0		—		1.1
Other Equity Interests:
Exchange Traded Funds	10.9		—		—		—		10.9
Limited Liability Companies and Limited Partnerships	—		—		—		183.6		183.6
Total Investments in Equity Securities at Fair Value	11.3		19.8		3.8		183.6		218.5
Total Assets	$	98.1	$	6,137.4	$	209.0	$	183.6	$	6,628.1
Liabilities:
Accrued Expenses and Other Liabilities:
Derivative Instruments Designated as Cash Flow Hedges	$	—	$	(3.7)	$	—	$	—	$	(3.7)
Total Liabilities	$	—	$	(3.7)	$	—	$	—	$	(3.7)

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 June 30, 2025. 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	$	82.7	1.6	%	-	11.1	%	7.6	%
Non-investment-grade:
Senior Debt	Market Yield	93.1		7.0		-	26.6		10.5
Junior Debt	Market Yield	30.8		8.8		-	27.0		11.9
Other	Various	134.8
Total Level 3 Fixed Maturity Investments		$	341.4

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, 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	$	59.9	3.4	%	-	11.6	%	7.9	%
Non-investment-grade:
Senior Debt	Market Yield	42.7		7.0		-	24.1		10.0
Junior Debt	Market Yield	35.7		9.5		-	31.0		13.2
Other	Various	66.9
Total Level 3 Fixed Maturity Investments		$	205.2

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 June 30, 2025 is presented below.


	Fixed Maturities										Equity Securities
(Dollars in Millions)	Corporate Bonds and Notes		States and Political Sub- divisions		Redeemable Preferred Stocks		Collateralized Loan Obligations		Other Mortgage- and Asset- backed		Preferred and Common Stocks		Total
Balance, Beginning of Period	$	275.8	$	1.7	$	4.3	$	67.0	$	22.5	$	4.8	$	376.1
Total Gains (Losses):
Included in Condensed Consolidated Statements of Income	0.3		—		—		—		—		1.9		2.2
Included in Other Comprehensive Income	0.9		—		—		—		(0.1)		(0.7)		0.1
Purchases	33.9		—		—		52.8		0.2		0.5		87.4
Sales	(49.2)		—		—		(10.0)		(0.1)		(1.7)		(61.0)
Transfers into Level 3	—		—		—		—		—		—		—
Transfers out of Level 3	(0.1)		(1.5)		—		(57.0)		—		—		(58.6)
Balance, End of Period	$	261.6	$	0.2	$	4.3	$	52.8	$	22.5	$	4.8	$	346.2

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 June 30, 2024 is presented below.


	Fixed Maturities										Equity Securities
(Dollars in Millions)	Corporate Bonds and Notes		States and Political Sub- divisions		Redeemable Preferred Stocks		Collateralized Loan Obligations		Other Mortgage- and Asset- backed		Preferred and Common Stocks		Total
Balance, Beginning of Period	$	180.5	$	1.4	$	2.2	$	—	$	5.1	$	2.7	$	191.9
Total Gains (Losses):
Included in Condensed Consolidated Statements of Income	0.1		—		—		—		—		1.9		2.0
Included in Other Comprehensive Income	(1.7)		—		—		—		(0.1)		—		(1.8)
Purchases	59.4		—		1.9		6.8		—		0.5		68.6
Sales	(12.6)		—		—		—		—		(1.7)		(14.3)
Transfers into Level 3	3.1		—		—		—		—		—		3.1
Transfers out of Level 3	(1.5)		(1.3)		—		—		—		—		(2.8)
Balance, End of Period	$	227.3	$	0.1	$	4.1	$	6.8	$	5.0	$	3.4	$	246.7

Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the six months ended June 30, 2025 is presented below.


	Fixed Maturities										Equity Securities
(Dollars in Millions)	Corporate Bonds and Notes		States and Political Sub- divisions		Redeemable Preferred Stocks		Collateralized Loan Obligations		Other Mortgage- and Asset- backed		Preferred and Common Stocks		Total
Balance, Beginning of Year	$	194.2	$	1.8	$	4.2	$	—	$	5.0	$	3.8	$	209.0
Total Gains (Losses):
Included in Condensed Consolidated Statements of Income	1.5		—		—		—		—		1.9		3.4
Included in Other Comprehensive Income	2.7		(0.1)		0.1		—		(0.1)		—		2.6
Purchases	128.9		—		—		119.8		7.7		0.8		257.2
Sales	(70.5)		—		—		(10.0)		(0.1)		(1.7)		(82.3)
Transfers into Level 3	5.0		—		—		—		10.0		—		15.0
Transfers out of Level 3	(0.2)		(1.5)		—		(57.0)		—		—		(58.7)
Balance, End of Period	$	261.6	$	0.2	$	4.3	$	52.8	$	22.5	$	4.8	$	346.2

Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the six months ended June 30, 2024 is presented below.


	Fixed Maturities										Equity Securities
(Dollars in Millions)	Corporate Bonds and Notes		States and Political Sub- divisions		Redeemable Preferred Stocks		Collateralized Loan Obligations		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	(0.1)		—		—		—		—		1.8		1.7
Included in Other Comprehensive Income	0.6		(0.4)		—		—		(0.2)		—		—
Purchases	72.6		—		1.9		6.8		—		0.5		81.8
Sales	(16.3)		—		—		—		—		(1.7)		(18.0)
Transfers into Level 3	3.1		1.7		—		—		—		—		4.8
Transfers out of Level 3	(9.7)		(1.3)		(4.9)		—		—		—		(15.9)
Balance, End of Period	$	227.3	$	0.1	$	4.1	$	6.8	$	5.0	$	3.4	$	246.7

Fair Value Disclosure of Asset and Liability Not Measured at Fair Value

The table below shows investments reported at fair value using NAV and their unfunded commitments by asset class as of June 30, 2025 and December 31, 2024.


(Dollars in Millions)	June 30, 2025				December 31, 2024
Asset Class	Fair Value Using NAV		Unfunded Commitments		Fair Value Using NAV		Unfunded Commitments
Reported as Equity Method Limited Liability Investments:
Mezzanine Debt	$	115.3	$	39.5	$	116.7	$	40.8
Real Estate	24.3		0.1		27.3		—
Senior Debt	19.1		47.0		19.1		48.2
Leveraged Buyout	7.1		0.6		7.5		0.6
Secondary Transactions	3.9		1.7		5.5		1.6
Distressed Debt	1.4		—		4.4		—

Other	5.1		0.1		5.8		0.1
Total Equity Method Limited Liability Investments	176.2		89.0		186.3		91.3

Reported as Other Equity Interests at Fair Value:
Mezzanine Debt	115.7		69.3		116.9		67.0
Leveraged Buyout	32.6		39.0		19.2		30.4
Senior Debt	27.5		6.9		26.3		8.4
Distressed Debt	11.0		15.7		11.7		15.0
Growth Equity	9.2		6.8		7.0		8.0
Secondary Transactions	2.0		1.6		2.4		1.6
Other	0.4		0.2		0.1		0.2
Total Reported as Other Equity Interests at Fair Value	198.4		139.5		183.6		130.6

Reported as Equity Securities at Modified Cost:
Other	1.8		1.7		1.8		—
Total Reported as Equity Securities at Modified Cost	1.8		1.7		1.8		—
Total Investments Reported at Fair Value Using NAV	$	376.4	$	230.2	$	371.7	$	221.9

Investment Holdings, Other than Securities

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 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 the 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 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.

Fair Value, by Balance Sheet Grouping

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


		June 30, 2025				December 31, 2024
(Dollars in Millions)	Level	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets:
Loans to Policyholders	Level 3	$	278.6	$	278.6	$	280.7	$	280.7
Short-term Investments	Level 1 or 2	407.6		407.6		1,037.1		1,037.1
Mortgage Loans	Level 3	130.2		130.4		75.3		75.3
Company-Owned Life Insurance	Level 2	557.1		557.1		539.2		539.2
Equity Securities at Modified Cost	Level 3	22.2		22.2		22.5		22.5
Financial Liabilities:
Long-term Debt	Level 2	$	942.6	$	860.4	$	1,391.6	$	1,278.4
Policyholder Obligations	Level 2	546.2		546.2		541.3		541.3

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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