Discontinued Chaucer Business (Tables)

9 Months Ended

Sep. 30, 2018

Summary of Carrying Amounts of Major Assets and Liabilities Reflected in Consolidated Balance Sheets

The following table details the carrying amounts of major assets and liabilities reflected in the Consolidated Balance Sheets under the caption “Assets held-for-sale” and “Liabilities held-for-sale”, respectively.

(in millions)	September 30, 2018		December 31, 2017
Assets:
Investments	$	1,923.4	$	2,153.5
Cash and cash equivalents		133.4		78.5
Accrued investment income		12.7		14.5
Premiums and accounts receivable, net		558.3		471.9
Deferred acquisition costs		121.4		120.2
Reinsurance recoverable on paid and unpaid losses and unearned premiums		1,278.8		1,431.5
Goodwill		13.0		13.8
Other assets		206.2		182.7
Total assets held-for-sale	$	4,247.2	$	4,466.6
Liabilities:
Loss and loss adjustment expense reserves		2,472.5		2,686.5
Unearned premiums		706.7		631.9
Reinsurance premium payable		375.7		293.3
Other liabilities		105.5		95.5
Total liabilities held-for-sale	$	3,660.4	$	3,707.2

Chaucer [Member]

Summary of Discontinued Chaucer Business

The following table summarizes the results of Chaucer’s operations:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in millions)	2018			2017			2018			2017
Revenues
Net premiums earned	$	212.4		$	222.5		$	648.2		$	632.4
Net investment income		12.8			13.4			41.7			37.1
Other income		1.9			2.7			5.4			5.0
		227.1			238.6			695.3			674.5
Losses and operating expenses
Losses and LAE		137.0			221.7			364.3			431.7
Amortization of deferred acquisition costs		60.1			63.7			196.7			180.5
Other expenses		26.2			27.0			85.7			81.5
		223.3			312.4			646.7			693.7
Income (loss) from discontinued Chaucer business before income    taxes and other items (previously presented as Chaucer's    operating income (loss))		3.8			(73.8	)		48.6			(19.2	)
Other items:
Interest expense		(1.5	)		(0.8	)		(2.8	)		(2.4	)
Net realized and unrealized investment gains (losses)		0.1			0.1			(0.4	)		0.7
Expenses related to the anticipated sale of Chaucer		(6.9	)		-			(8.7	)		-
Other income (expense)		(0.2	)		0.7			0.4			2.2
Income (loss) from discontinued Chaucer business before    income taxes	$	(4.7	)	$	(73.8	)	$	37.1		$	(18.7	)
Income tax benefit (expense)		1.1			26.6			(6.6	)		10.4
Income (loss) from discontinued Chaucer business, net of    income taxes	$	(3.6	)	$	(47.2	)	$	30.5		$	(8.3	)

Summary of Cash Flows Associated with the Discontinued Chaucer Business

The following table details the cash flows associated with the discontinued Chaucer business:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in millions)	2018			2017			2018		2017
Net cash provided by operating activities	$	60.2		$	39.9		$	46.2	$	68.9
Net cash (used in) provided by investing activities	$	(31.7	)	$	(97.2	)	$	64.3	$	(104.4	)