Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2019

Company's Available-for-Sale Investments within Fair Value Hierarchy

The following tables set forth the Company’s investments within the fair value hierarchy at June 30, 2019 and December 31, 2018:



($ millions)	Total		Level 1		Level 2
June 30, 2019
Available-for-sale fixed maturities:
U.S. treasury securities and obligations of U.S. government agencies	$	469.5	$	—	$	469.5
Obligations of states and political subdivisions	441.2		—		441.2
Corporate securities	519.9		—		519.9
U.S. government agencies mortgage-backed securities	727.3		—		727.3
Total available-for-sale fixed maturities	2,157.9		—		2,157.9
Equity securities:
Large-cap securities	88.3		88.3		—
Mutual and exchange traded funds	286.6		286.6		—
Total equity securities	374.9		374.9		—
Other invested assets	13.1		13.1		—
Total investments	$	2,545.9	$	388.0	$	2,157.9

($ millions)	Total		Level 1		Level 2
December 31, 2018
Fixed maturities:
U.S. treasury securities and obligations of U.S. government agencies	$	432.4	$	—	$	432.4
Obligations of states and political subdivisions	414.6		—		414.6
Corporate securities	540.6		—		540.6
U.S. government agencies mortgage-backed securities	771.9		—		771.9
Total fixed maturities	2,159.5		—		2,159.5
Equity securities:
Large-cap securities	77.2		77.2		—
Mutual and exchange traded funds	237.8		237.8		—
Total equity securities	315.0		315.0		—
Other invested assets	10.3		10.3		—
Total available-for-sale investments	$	2,484.8	$	325.3	$	2,159.5

Company Estimates Receivable from Affiliate using Market Quotations for U.S. Treasury Securities

Consequently this has been placed in Level 2 of the fair value hierarchy.



($ millions, except interest rates)	June 30, 2019						December 31, 2018
	Carrying value		Fair value		Interest rate		Carrying value		Fair value		Interest rate
Notes receivable from affiliate, May 2009	$	—	$	—	—	%	$	70.0	$	71.1	7.00	%
Notes receivable from affiliate, May 2019	$	70.0	$	74.2	4.05	%	$	—	$	—	—	%

Included in Notes Payable are Senior Notes and Subordinated Debentures

The carrying amount of the Subordinated Debentures approximates its fair value as the interest rate adjusts quarterly and has been disclosed in Level 3.



($ millions, except interest rates)	June 30, 2019						December 31, 2018
	Carrying value		Fair Value		Interest rate		Carrying value		Fair value		Interest rate
FHLB Loan due 2021: issued $21.5, September 2016 with fixed interest	$	21.5	$	21.3	1.73	%	$	21.5	$	20.9	1.73	%
FHLB Loan due 2033: issued $85.0, May 2018 with fixed interest	85.3		96.5		3.96	%	85.3		89.0		3.96	%
Affiliate Subordinated Debentures due 2033: issued $15.5, May 2003 with variable interest	15.2		15.2		6.72	%	15.2		15.2		6.94	%
Total notes payable	$	122.0	$	133.0			$	122.0	$	125.1