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Fair Value (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Composition of Investment Portfolio by Major Security Type

The composition of the investment portfolio by major security type and our outstanding debt was:

	Fair Value
(millions)	Level 1			Level 2			Level 3			Total			Cost
December 31, 2017
Fixed maturities:
U.S. government obligations	$	6,645.9		$	0		$	0		$	6,645.9		$	6,688.8
State and local government obligations	0			2,297.1			0			2,297.1			2,285.6
Foreign government obligations	0			0			0			0			0
Corporate debt securities	0			4,997.7			0			4,997.7			4,997.2
Subtotal	6,645.9			7,294.8			0			13,940.7			13,971.6
Asset-backed securities:
Residential mortgage-backed	0			836.7			0			836.7			828.8
Commercial mortgage-backed	0			2,758.6			0			2,758.6			2,760.1
Other asset-backed	0			2,454.7			0			2,454.7			2,454.5
Subtotal asset-backed securities	0			6,050.0			0			6,050.0			6,043.4
Redeemable preferred stocks:
Financials	0			64.1			0			64.1			61.3
Utilities	0			11.4			0			11.4			10.1
Industrials	0			135.5			0			135.5			123.5
Subtotal redeemable preferred stocks	0			211.0			0			211.0			194.9
Total fixed maturities	6,645.9			13,555.8			0			20,201.7			20,209.9
Equity securities:
Nonredeemable preferred stocks:
Financials	80.6			718.2			0			798.8			693.6
Industrials	0			0			5.0			5.0			5.0
Subtotal nonredeemable preferred stocks	80.6			718.2			5.0			803.8			698.6
Common equities:
Common stocks	3,399.5			0			0			3,399.5			1,498.7
Other risk investments	0			0			0.3			0.3			0.3
Subtotal common equities	3,399.5			0			0.3			3,399.8			1,499.0
Total fixed maturities and equity securities	10,126.0			14,274.0			5.3			24,405.3			22,407.5
Short-term investments	1,824.4			1,045.0			0			2,869.4			2,869.4
Total portfolio	$	11,950.4		$	15,319.0		$	5.3		$	27,274.7		$	25,276.9
Debt	$	0		$	3,606.5		$	37.1		$	3,643.6		$	3,306.3

	Fair Value
(millions)	Level 1			Level 2			Level 3			Total			Cost
December 31, 2016
Fixed maturities:
U.S. government obligations	$	2,870.1		$	0		$	0		$	2,870.1		$	2,899.2
State and local government obligations	0			2,502.6			0			2,502.6			2,509.5
Foreign government obligations	24.5			0			0			24.5			24.5
Corporate debt securities	0			4,550.9			0			4,550.9			4,557.8
Subtotal	2,894.6			7,053.5			0			9,948.1			9,991.0
Asset-backed securities:
Residential mortgage-backed	0			1,499.3			0			1,499.3			1,489.7
Commercial mortgage-backed	0			2,253.1			0.3			2,253.4			2,266.9
Other asset-backed	0			2,351.1			0			2,351.1			2,350.7
Subtotal asset-backed securities	0			6,103.5			0.3			6,103.8			6,107.3
Redeemable preferred stocks:
Financials	0			59.5			0			59.5			59.8
Utilities	0			30.9			0			30.9			30.5
Industrials	0			101.5			0			101.5			98.5
Subtotal redeemable preferred stocks	0			191.9			0			191.9			188.8
Total fixed maturities	2,894.6			13,348.9			0.3			16,243.8			16,287.1
Equity securities:
Nonredeemable preferred stocks:
Financials	138.1			715.4			0			853.5			734.2
Industrials	0			0			0			0			0
Subtotal nonredeemable preferred stocks	138.1			715.4			0			853.5			734.2
Common equities:
Common stocks	2,812.0			0			0			2,812.0			1,437.1
Other risk investments	0			0			0.4			0.4			0.4
Subtotal common equities	2,812.0			0			0.4			2,812.4			1,437.5
Total fixed maturities and equity securities	5,844.7			14,064.3			0.7			19,909.7			18,458.8
Short-term investments	3,009.3			563.6			0			3,572.9			3,572.9
Total portfolio	$	8,854.0		$	14,627.9		$	0.7		$	23,482.6		$	22,031.7
Debt	$	0		$	3,188.5		$	127.3		$	3,315.8		$	3,148.2

Summary of Changes in Fair Value Associated With Level 3 Assets

The following tables provide a summary of changes in fair value associated with Level 3 assets for the years ended December 31, 2017 and 2016:

	Level 3 Fair Value
(millions)	Fair Value at Dec. 31, 2016			Calls/ Maturities/ Paydowns			Purchases			Sales			Net Realized (Gain)/Loss on Sales			Change in Valuation			Net Transfers In (Out)			Fair Value at Dec. 31, 2017
Fixed maturities:
Asset-backed securities:
Commercial mortgage-backed	$	0.3		$	(0.3	)	$	0		$	0		$	0		$	0		$	0		$	0
Total fixed maturities	0.3			(0.3		)	0			0			0			0			0			0
Equity securities:
Nonredeemable preferred stocks:
Industrials	0			0			5.0			0			0			0			0			5.0
Common equities:
Other risk investments	0.4			(0.1		)	0			0			0			0			0			0.3
Total Level 3 securities	$	0.7		$	(0.4	)	$	5.0		$	0		$	0		$	0		$	0		$	5.3

	Level 3 Fair Value
(millions)	Fair Value at Dec. 31, 2015			Calls/ Maturities/ Paydowns			Purchases			Sales			Net Realized (Gain)/Loss on Sales			Change in Valuation			Net Transfers In (Out)			Fair Value at Dec. 31, 2016
Fixed maturities:
Asset-backed securities:
Commercial mortgage-backed	$	9.9		$	(9.6	)	$	0		$	0		$	0		$	0		$	0		$	0.3
Total fixed maturities	9.9			(9.6		)	0			0			0			0			0			0.3
Equity securities:
Nonredeemable preferred stocks:
Industrials	0			0			0			0			0			0			0			0
Common equities:
Other risk investments	0.3			0			0			0			0			0.1			0			0.4
Total Level 3 securities	$	10.2		$	(9.6	)	$	0		$	0		$	0		$	0.1		$	0		$	0.7

Summary of Quantitative Information about Level 3 Fair Value Measurements

The following tables provide a summary of the quantitative information about Level 3 fair value measurements for our applicable securities at December 31:

	Quantitative Information about Level 3 Fair Value Measurements
($ in millions)	Fair Value at Dec. 31, 2017			Valuation Technique	Unobservable Input	Unobservable Input Assumption
Fixed maturities:
Asset-backed securities:
Commercial mortgage-backed	$	0		NA	NA	NA
Total fixed maturities	0
Equity securities:
Nonredeemable preferred stocks:
Industrials1	5.0			Internal price	Unadjusted purchase price	3.9
Subtotal Level 3 securities	5.0
Third-party pricing exemption securities2	0.3
Total Level 3 securities	$	5.3

¹ The security was internally-priced since it is privately held and it was valued at December 31, 2017 using the purchase price.

² The fair values for these securities were obtained from non-binding external sources where unobservable inputs are not reasonably available to us.

	Quantitative Information about Level 3 Fair Value Measurements
($ in millions)	Fair Value at Dec. 31, 2016			Valuation Technique	Unobservable Input	Unobservable Input Assumption
Fixed maturities:
Asset-backed securities:
Commercial mortgage-backed	$	0.3		External vendor	Prepayment rate1	0
Total fixed maturities	0.3
Equity securities:
Nonredeemable preferred stocks:
Industrials	0			NA	NA	NA
Subtotal Level 3 securities	0.3
Third-party pricing exemption securities2	0.4
Total Level 3 securities	$	0.7

¹ Assumes that one security has 0% of the principal amount of the underlying loans that will be paid off prematurely in each year.

² The fair values for these securities were obtained from non-binding external sources where unobservable inputs are not reasonably available to us.

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- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
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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.

+ References

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-Publisher FASB
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Tabular disclosure of quantitative information about the inputs used in the fair value measurement of assets. This disclosure may include, but is not limited to, the fair value of the asset, valuation technique used to measure fair value, the inputs used to measure fair value, the ranges of the inputs, and the weighted averages of the inputs.

+ References

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