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Investments (Tables)
 3 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Cost or Amortized Cost and Fair Value of Available-for-Sale Securities
The following tables set forth the cost or amortized cost and fair value of investments by investment category at March 31, 2020 and December 31, 2019:
($ millions)
Cost or amortized cost
 
Gross unrealized holding gains
 
Gross unrealized holding losses
 
Fair value
March 31, 2020
Available-for-sale fixed maturities:
 
 
 
 
 
 
 
U.S. treasury securities and obligations of U.S. government agencies
$
559.3

 
$
38.0

 
$
(0.2
)
 
$
597.1

Obligations of states and political subdivisions
392.9

 
20.8

 
—

 
413.7

Corporate securities
470.1

 
5.0

 
(7.2
)
 
467.9

U.S. government agencies mortgage-backed securities
629.5

 
24.7

 
(4.6
)
 
649.6

Total available-for-sale fixed maturities
$
2,051.8

 
$
88.5

 
$
(12.0
)
 
$
2,128.3

 
 
 
 
 
 
 
 
($ millions)
Cost or amortized cost
 
Gross unrealized holding gains
 
Gross unrealized holding losses
 
Fair value
December 31, 2019
Available-for-sale fixed maturities:
 
 
 
 
 
 
 
U.S. treasury securities and obligations of U.S. government agencies
$
569.2

 
$
12.3

 
$
(3.3
)
 
$
578.2

Obligations of states and political subdivisions
404.3

 
21.1

 
—

 
425.4

Corporate securities
460.5

 
11.7

 
(0.4
)
 
471.8

U.S. government agencies mortgage-backed securities
646.0

 
11.1

 
(4.6
)
 
652.5

Total available-for-sale fixed maturities
$
2,080.0

 
$
56.2

 
$
(8.3
)
 
$
2,127.9

 
 
 
 
 
 
 
 
Gross Unrealized Losses and Fair Value on its Investments
The following tables set forth the Company’s gross unrealized losses and fair value on its investments by lot, aggregated by investment category and length of time for individual securities that have been in a continuous unrealized loss position for which an allowance for credit losses has not been recorded at March 31, 2020:
($ millions, except # of positions)
Less than 12 months
 
12 months or more
 
Total
 
Fair value
 
Unrealized losses
 
Number of positions
 
Fair value
 
Unrealized losses
 
Number of positions
 
Fair value
 
Unrealized losses
 
Number of positions
March 31, 2020
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. treasury securities and obligations of U.S. government agencies
$
22.2

 
$
(0.2
)
 
7

 
$
—

 
$
—

 
—

 
$
22.2

 
$
(0.2
)
 
7

Corporate securities
205.9

 
(7.1
)
 
38

 
6.0

 
$
(0.1
)
 
2

 
211.9

 
$
(7.2
)
 
40

U.S. government agencies mortgage-backed securities
113.1

 
(3.9
)
 
27

 
22.1

 
(0.7
)
 
5

 
135.2

 
(4.6
)
 
32

Total temporarily impaired securities
$
341.2

 
$
(11.2
)
 
72

 
$
28.1

 
$
(0.8
)
 
7

 
$
369.3

 
$
(12.0
)
 
79

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

The following tables set forth the Company’s gross unrealized losses and fair value on its investments by lot, aggregated by investment category and length of time for individual securities that have been in a continuous unrealized loss position at December 31, 2019:
($ millions, except # of positions)
Less than 12 months
 
12 months or more
 
Total
 
Fair value
 
Unrealized losses
 
Number of positions
 
Fair value
 
Unrealized losses
 
Number of positions
 
Fair value
 
Unrealized losses
 
Number of positions
December 31, 2019
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. treasury securities and obligations of U.S. government agencies
$
136.0

 
$
(2.5
)
 
17

 
$
157.6

 
$
(0.8
)
 
11

 
$
293.6

 
$
(3.3
)
 
28
Corporate securities
—

 
—

 
—

 
40.8

 
(0.4
)
 
7

 
40.8

 
(0.4
)
 
7
U.S. government agencies mortgage-backed securities
126.6

 
(1.5
)
 
15

 
137.9

 
(3.1
)
 
32

 
264.5

 
(4.6
)
 
47
Total temporarily impaired securities
$
262.6

 
$
(4.0
)
 
32

 
$
336.3

 
$
(4.3
)
 
50

 
$
598.9

 
$
(8.3
)
 
82
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortized Cost and Fair Value of Available-for-Sale Fixed Maturities by Contractual Maturity
The following table sets forth the amortized cost and fair value of available-for-sale fixed maturities by contractual maturity at March 31, 2020:
($ millions)
Amortized cost
 
Fair
value
Due in 1 year or less
$
106.6

 
$
106.8

Due after 1 year through 5 years
586.1

 
594.4

Due after 5 years through 10 years
149.9

 
154.9

Due after 10 years
579.7

 
622.6

U.S. government agencies mortgage-backed securities
629.5

 
649.6

Total
$
2,051.8

 
$
2,128.3

 
 
 
 
Components of Net Investment Income
The following table sets forth the components of net investment income for the three months ended March 31, 2020 and 2019:
 ($ millions)
Three months ended March 31
 
2020
 
2019
Fixed maturities
$
15.1

 
$
15.1

Equity securities
3.1

 
2.8

Cash and cash equivalents, and other
1.0

 
1.7

Investment income
19.2

 
19.6

Investment expenses
0.3

 
0.2

Net investment income
$
18.9

 
$
19.4

 
 
 
 
Realized and Unrealized Holding Gains (Losses)
The following table sets forth the realized and unrealized holding gains (losses) on the Company’s investment portfolio for the three months ended March 31, 2020 and 2019:
($ millions)
Three months ended March 31
 
2020
 
2019
Investment gain (loss), net:
 
 
 
Fixed maturities:
 
 
 
Realized gains on sales of securities
3.6

 
0.1

Realized losses on sales of securities
(1.2
)
 
—

Net gain on fixed maturities
2.4

 
0.1

Equity securities:
 
 
 
Realized gains (losses) on sales of securities, net
0.9

 
(1.9
)
Unrealized (loss) gain on securities still held, net
(123.3
)
 
44.1

Net (loss) gain on equity securities
(122.4
)
 
42.2

Other invested assets:
 
 
 
Unrealized (loss) gain on securities still held, net
(15.4
)
 
3.9

Net (loss) gain on other invested assets
(15.4
)
 
3.9

Other net realized gain (loss)
0.2

 
(1.3
)
Net (loss) gain on investments
$
(135.2
)
 
$
44.9

 
 
 
 
Change in unrealized holding gains (losses), net of tax:
 
 
 
Fixed maturities
$
28.6

 
$
34.4

Deferred federal income tax liability
(6.0
)
 
(7.2
)
Change in net unrealized holding gains, net of tax
$
22.6

 
$
27.2