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v3.23.3

Fair Value (Tables) | 9 Months Ended
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Sep. 30, 2023
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
September 30, 2023 |  |  |  |  |  |  |  |  |
Fixed maturities: |  |  |  |  |  |  |  |  |
U.S. government obligations | $ | 34,293.8 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 34,293.8 |  |  | $ | 36,392.2 |
State and local government obligations | 0 |  |  | 2,054.3 |  |  | 0 |  |  | 2,054.3 |  |  | 2,257.6 |
Foreign government obligations | 0 |  |  | 15.4 |  |  | 0 |  |  | 15.4 |  |  | 16.9 |
Corporate debt securities | 0 |  |  | 10,254.2 |  |  | 0 |  |  | 10,254.2 |  |  | 10,880.8 |
Subtotal | 34,293.8 |  |  | 12,323.9 |  |  | 0 |  |  | 46,617.7 |  |  | 49,547.5 |
Asset-backed securities: |  |  |  |  |  |  |  |  |
Residential mortgage-backed | 0 |  |  | 515.8 |  |  | 0 |  |  | 515.8 |  |  | 530.4 |
Commercial mortgage-backed | 0 |  |  | 3,977.7 |  |  | 0 |  |  | 3,977.7 |  |  | 4,699.5 |
Other asset-backed | 0 |  |  | 5,313.6 |  |  | 0 |  |  | 5,313.6 |  |  | 5,524.2 |
Subtotal asset-backed securities | 0 |  |  | 9,807.1 |  |  | 0 |  |  | 9,807.1 |  |  | 10,754.1 |
Redeemable preferred stocks: |  |  |  |  |  |  |  |  |
Financials | 0 |  |  | 21.3 |  |  | 0 |  |  | 21.3 |  |  | 24.5 |
Utilities | 0 |  |  | 9.3 |  |  | 0 |  |  | 9.3 |  |  | 10.4 |
Industrials | 0 |  |  | 136.5 |  |  | 0 |  |  | 136.5 |  |  | 154.1 |
Subtotal redeemable preferred stocks | 0 |  |  | 167.1 |  |  | 0 |  |  | 167.1 |  |  | 189.0 |
Total fixed maturities | 34,293.8 |  |  | 22,298.1 |  |  | 0 |  |  | 56,591.9 |  |  | 60,490.6 |
Short-term investments | 1,763.2 |  |  | 32.0 |  |  | 0 |  |  | 1,795.2 |  |  | 1,795.2 |
Total available-for-sale securities | 36,057.0 |  |  | 22,330.1 |  |  | 0 |  |  | 58,387.1 |  |  | 62,285.8 |
Equity securities: |  |  |  |  |  |  |  |  |
Nonredeemable preferred stocks: |  |  |  |  |  |  |  |  |
Financials | 0 |  |  | 770.7 |  |  | 47.9 |  |  | 818.6 |  |  | 921.9 |
Utilities | 0 |  |  | 34.5 |  |  | 0 |  |  | 34.5 |  |  | 40.0 |
Industrials | 0 |  |  | 0 |  |  | 15.8 |  |  | 15.8 |  |  | 15.0 |
Subtotal nonredeemable preferred stocks | 0 |  |  | 805.2 |  |  | 63.7 |  |  | 868.9 |  |  | 976.9 |
Common equities: |  |  |  |  |  |  |  |  |
Common stocks | 2,573.6 |  |  | 0 |  |  | 18.3 |  |  | 2,591.9 |  |  | 640.0 |
Other risk investments | 0 |  |  | 0 |  |  | 22.6 |  |  | 22.6 |  |  | 22.6 |
Subtotal common equities | 2,573.6 |  |  | 0 |  |  | 40.9 |  |  | 2,614.5 |  |  | 662.6 |
Total equity securities | 2,573.6 |  |  | 805.2 |  |  | 104.6 |  |  | 3,483.4 |  |  | 1,639.5 |
Total portfolio | $ | 38,630.6 |  |  | $ | 23,135.3 |  |  | $ | 104.6 |  |  | $ | 61,870.5 |  |  | $ | 63,925.3 |
Debt | $ | 0 |  |  | $ | 5,932.1 |  |  | $ | 0 |  |  | $ | 5,932.1 |  |  | $ | 6,887.6 |
| Fair Value |  |
(millions) | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Cost
September 30, 2022 |  |  |  |  |  |  |  |  |
Fixed maturities: |  |  |  |  |  |  |  |  |
U.S. government obligations | $ | 22,405.5 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 22,405.5 |  |  | $ | 24,260.9 |
State and local government obligations | 0 |  |  | 1,925.5 |  |  | 0 |  |  | 1,925.5 |  |  | 2,140.9 |
Foreign government obligations | 0 |  |  | 15.3 |  |  | 0 |  |  | 15.3 |  |  | 16.7 |
Corporate debt securities | 0 |  |  | 9,228.4 |  |  | 0 |  |  | 9,228.4 |  |  | 10,119.8 |
Subtotal | 22,405.5 |  |  | 11,169.2 |  |  | 0 |  |  | 33,574.7 |  |  | 36,538.3 |
Asset-backed securities: |  |  |  |  |  |  |  |  |
Residential mortgage-backed | 0 |  |  | 723.0 |  |  | 0 |  |  | 723.0 |  |  | 754.2 |
Commercial mortgage-backed | 0 |  |  | 5,087.9 |  |  | 0 |  |  | 5,087.9 |  |  | 5,833.9 |
Other asset-backed | 0 |  |  | 4,605.9 |  |  | 0 |  |  | 4,605.9 |  |  | 4,876.7 |
Subtotal asset-backed securities | 0 |  |  | 10,416.8 |  |  | 0 |  |  | 10,416.8 |  |  | 11,464.8 |
Redeemable preferred stocks: |  |  |  |  |  |  |  |  |
Financials | 0 |  |  | 39.8 |  |  | 0 |  |  | 39.8 |  |  | 43.6 |
Utilities | 0 |  |  | 8.8 |  |  | 0 |  |  | 8.8 |  |  | 10.5 |
Industrials | 8.9 |  |  | 124.1 |  |  | 0 |  |  | 133.0 |  |  | 148.5 |
Subtotal redeemable preferred stocks | 8.9 |  |  | 172.7 |  |  | 0 |  |  | 181.6 |  |  | 202.6 |
Total fixed maturities | 22,414.4 |  |  | 21,758.7 |  |  | 0 |  |  | 44,173.1 |  |  | 48,205.7 |
Short-term investments | 4,219.6 |  |  | 18.0 |  |  | 0 |  |  | 4,237.6 |  |  | 4,237.6 |
Total available-for-sale securities | 26,634.0 |  |  | 21,776.7 |  |  | 0 |  |  | 48,410.7 |  |  | 52,443.3 |
Equity securities: |  |  |  |  |  |  |  |  |
Nonredeemable preferred stocks: |  |  |  |  |  |  |  |  |
Financials | 60.9 |  |  | 1,015.6 |  |  | 64.9 |  |  | 1,141.4 |  |  | 1,297.6 |
Utilities | 0 |  |  | 71.3 |  |  | 0 |  |  | 71.3 |  |  | 79.9 |
Industrials | 0 |  |  | 24.7 |  |  | 17.0 |  |  | 41.7 |  |  | 40.1 |
Subtotal nonredeemable preferred stocks | 60.9 |  |  | 1,111.6 |  |  | 81.9 |  |  | 1,254.4 |  |  | 1,417.6 |
Common equities: |  |  |  |  |  |  |  |  |
Common stocks | 2,597.3 |  |  | 49.3 |  |  | 0 |  |  | 2,646.6 |  |  | 785.0 |
Other risk investments | 0 |  |  | 0 |  |  | 18.7 |  |  | 18.7 |  |  | 18.7 |
Subtotal common equities | 2,597.3 |  |  | 49.3 |  |  | 18.7 |  |  | 2,665.3 |  |  | 803.7 |
Total equity securities | 2,658.2 |  |  | 1,160.9 |  |  | 100.6 |  |  | 3,919.7 |  |  | 2,221.3 |
Total portfolio | $ | 29,292.2 |  |  | $ | 22,937.6 |  |  | $ | 100.6 |  |  | $ | 52,330.4 |  |  | $ | 54,664.6 |
Debt | $ | 0 |  |  | $ | 5,634.7 |  |  | $ | 0 |  |  | $ | 5,634.7 |  |  | $ | 6,387.4 |
| Fair Value |  |
(millions) | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Cost
December 31, 2022 |  |  |  |  |  |  |  |  |
Fixed maturities: |  |  |  |  |  |  |  |  |
U.S. government obligations | $ | 25,167.4 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 25,167.4 |  |  | $ | 26,770.7 |
State and local government obligations | 0 |  |  | 1,977.1 |  |  | 0 |  |  | 1,977.1 |  |  | 2,180.0 |
Foreign government obligations | 0 |  |  | 15.5 |  |  | 0 |  |  | 15.5 |  |  | 16.8 |
Corporate debt securities | 0 |  |  | 9,412.7 |  |  | 0 |  |  | 9,412.7 |  |  | 10,125.8 |
Subtotal | 25,167.4 |  |  | 11,405.3 |  |  | 0 |  |  | 36,572.7 |  |  | 39,093.3 |
Asset-backed securities: |  |  |  |  |  |  |  |  |
Residential mortgage-backed | 0 |  |  | 666.8 |  |  | 0 |  |  | 666.8 |  |  | 696.1 |
Commercial mortgage-backed | 0 |  |  | 4,663.5 |  |  | 0 |  |  | 4,663.5 |  |  | 5,446.0 |
Other asset-backed | 0 |  |  | 4,564.6 |  |  | 0 |  |  | 4,564.6 |  |  | 4,826.0 |
Subtotal asset-backed securities | 0 |  |  | 9,894.9 |  |  | 0 |  |  | 9,894.9 |  |  | 10,968.1 |
Redeemable preferred stocks: |  |  |  |  |  |  |  |  |
Financials | 0 |  |  | 40.5 |  |  | 0 |  |  | 40.5 |  |  | 43.6 |
Utilities | 0 |  |  | 9.1 |  |  | 0 |  |  | 9.1 |  |  | 10.5 |
Industrials | 9.2 |  |  | 125.5 |  |  | 0 |  |  | 134.7 |  |  | 148.5 |
Subtotal redeemable preferred stocks | 9.2 |  |  | 175.1 |  |  | 0 |  |  | 184.3 |  |  | 202.6 |
Total fixed maturities | 25,176.6 |  |  | 21,475.3 |  |  | 0 |  |  | 46,651.9 |  |  | 50,264.0 |
Short-term investments | 2,800.7 |  |  | 61.0 |  |  | 0 |  |  | 2,861.7 |  |  | 2,861.7 |
Total available-for-sale securities | 27,977.3 |  |  | 21,536.3 |  |  | 0 |  |  | 49,513.6 |  |  | 53,125.7 |
Equity securities: |  |  |  |  |  |  |  |  |
Nonredeemable preferred stocks: |  |  |  |  |  |  |  |  |
Financials | 39.0 |  |  | 994.4 |  |  | 67.4 |  |  | 1,100.8 |  |  | 1,244.2 |
Utilities | 0 |  |  | 71.2 |  |  | 0 |  |  | 71.2 |  |  | 79.9 |
Industrials | 0 |  |  | 24.8 |  |  | 16.4 |  |  | 41.2 |  |  | 40.1 |
Subtotal nonredeemable preferred stocks | 39.0 |  |  | 1,090.4 |  |  | 83.8 |  |  | 1,213.2 |  |  | 1,364.2 |
Common equities: |  |  |  |  |  |  |  |  |
Common stocks | 2,783.4 |  |  | 0 |  |  | 18.3 |  |  | 2,801.7 |  |  | 806.3 |
Other risk investments | 0 |  |  | 0 |  |  | 19.8 |  |  | 19.8 |  |  | 19.8 |
Subtotal common equities | 2,783.4 |  |  | 0 |  |  | 38.1 |  |  | 2,821.5 |  |  | 826.1 |
Total equity securities | 2,822.4 |  |  | 1,090.4 |  |  | 121.9 |  |  | 4,034.7 |  |  | 2,190.3 |
Total portfolio | $ | 30,799.7 |  |  | $ | 22,626.7 |  |  | $ | 121.9 |  |  | $ | 53,548.3 |  |  | $ | 55,316.0 |
Debt | $ | 0 |  |  | $ | 5,717.9 |  |  | $ | 0 |  |  | $ | 5,717.9 |  |  | $ | 6,388.3 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables provide a summary of changes in fair value associated with Level 3 assets for the three and nine months ended September 30, 2023 and 2022:
| Level 3 Fair Value
(millions) | Fair Value at June 30, 2023 | Calls/ Maturities/ Paydowns/Other | Purchases | Sales | Net Realized (Gain)/Loss on Sales | Change in Valuation | Net Transfers In (Out) | Fair Value at September 30, 2023
Equity securities: |  |  |  |  |  |  |  |
Nonredeemable preferred stocks: |  |  |  |  |  |  |  |
Financials | $ | 56.0 |  | $ | (8.1) |  | $ | 0 |  | $ | 0 |  | $ | 0 |  | $ | 0 |  | $ | 0 |  | $ | 47.9 |
Industrials | 15.8 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 15.8 |
Common equities: |  |  |  |  |  |  |  |
Common stocks | 18.3 |  | 8.1 |  | 0 |  | (10.0) |  | 8.9 |  | (7.0) |  | 0 |  | 18.3 |
Other risk investments | 21.9 |  | 0.7 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 22.6 |
Total Level 3 securities | $ | 112.0 |  | $ | 0.7 |  | $ | 0 |  | $ | (10.0) |  | $ | 8.9 |  | $ | (7.0) |  | $ | 0 |  | $ | 104.6 |
| Level 3 Fair Value
(millions) | Fair Value at June 30, 2022 | Calls/ Maturities/ Paydowns/Other | Purchases | Sales | Net Realized (Gain)/Loss on Sales | Change in Valuation | Net Transfers In (Out) | Fair Value at September 30, 2022
Equity securities: |  |  |  |  |  |  |  |
Nonredeemable preferred stocks: |  |  |  |  |  |  |  |
Financials | $ | 64.9 |  | $ | 0 |  | $ | 0 |  | $ | 0 |  | $ | 0 |  | $ | 0 |  | $ | 0 |  | $ | 64.9 |
Industrials | 17.0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 17.0 |
Common equities: |  |  |  |  |  |  |  |
Common stocks | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |
Other risk investments | 18.5 |  | 0.2 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 18.7 |
Total Level 3 securities | $ | 100.4 |  | $ | 0.2 |  | $ | 0 |  | $ | 0 |  | $ | 0 |  | $ | 0 |  | $ | 0 |  | $ | 100.6 |
| Level 3 Fair Value
(millions) | Fair Value at December 31, 2022 | Calls/ Maturities/ Paydowns/Other | Purchases | Sales | Net Realized (Gain)/Loss on Sales | Change in Valuation | Net Transfers In (Out) | Fair Value at September 30, 2023
Equity securities: |  |  |  |  |  |  |  |
Nonredeemable preferred stocks: |  |  |  |  |  |  |  |
Financials | $ | 67.4 |  | $ | (8.1) |  | $ | 0 |  | $ | 0 |  | $ | 0 |  | $ | (11.4) |  | $ | 0 |  | $ | 47.9 |
Industrials | 16.4 |  | 0 |  | 0 |  | 0 |  | 0 |  | (0.6) |  | 0 |  | 15.8 |
Common equities: |  |  |  |  |  |  |  |
Common stocks | 18.3 |  | 8.1 |  | 0 |  | (10.0) |  | 8.9 |  | (7.0) |  | 0 |  | 18.3 |
Other risk investments | 19.8 |  | 2.8 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 22.6 |
Total Level 3 securities | $ | 121.9 |  | $ | 2.8 |  | $ | 0 |  | $ | (10.0) |  | $ | 8.9 |  | $ | (19.0) |  | $ | 0 |  | $ | 104.6 |
| Level 3 Fair Value
(millions) | Fair Value at December 31, 2021 | Calls/ Maturities/ Paydowns/Other | Purchases | Sales | Net Realized (Gain)/Loss on Sales | Change in Valuation | Net Transfers In (Out) | Fair Value at September 30, 2022
Equity securities: |  |  |  |  |  |  |  |
Nonredeemable preferred stocks: |  |  |  |  |  |  |  |
Financials | $ | 76.4 |  | $ | 0 |  | $ | 0 |  | $ | (15.0) |  | $ | (17.2) |  | $ | 20.7 |  | $ | 0 |  | $ | 64.9 |
Industrials | 34.4 |  | (0.5) |  | 0 |  | 0 |  | 0 |  | (16.9) |  | 0 |  | 17.0 |
Common equities: |  |  |  |  |  |  |  |
Other risk investments | 16.9 |  | 1.8 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0 |  | 18.7 |
Total Level 3 securities | $ | 127.7 |  | $ | 1.3 |  | $ | 0 |  | $ | (15.0) |  | $ | (17.2) |  | $ | 3.8 |  | $ | 0 |  | $ | 100.6 |
Fair Value Measurement Inputs and Valuation Techniques | The following tables provide a summary of the quantitative information about Level 3 fair value measurements for our applicable securities at September 30, 2023 and 2022, and December 31, 2022:
| Quantitative Information about Level 3 Fair Value Measurements
($ in millions) | Fair Value at September 30, 2023 | Valuation Technique | Unobservable Input | Range of Input Values Increase (Decrease) | Weighted Average Increase (Decrease)
Equity securities: |  |  |  |  |
Nonredeemable preferred stocks | $ | 63.7 |  | Market comparables | Weighted average market capitalization price change % | (10.8)% to 4.5% | 1.7 | %
Common stocks | 18.3 |  | Market comparables | Weighted average market capitalization price change % | (37.4)% to 130.2% | (7.9) | %
Subtotal Level 3 securities | 82.0 |  |  |  |  |
Pricing exemption securities | 22.6 |  |  |  |  |
Total Level 3 securities | $ | 104.6 |  |  |  |  |
| Quantitative Information about Level 3 Fair Value Measurements
($ in millions) | Fair Value at September 30, 2022 | Valuation Technique | Unobservable Input | Range of Input Values Increase (Decrease) | Weighted Average Increase (Decrease)
Equity securities: |  |  |  |  |
Nonredeemable preferred stocks | $ | 81.9 |  | Market comparables | Weighted average market capitalization price change % | (20.7)% to (1.1)% | (6.6) | %
Subtotal Level 3 securities | 81.9 |  |  |  |  |
Pricing exemption securities | 18.7 |  |  |  |  |
Total Level 3 securities | $ | 100.6 |  |  |  |  |
| Quantitative Information about Level 3 Fair Value Measurements |
($ in millions) | Fair Value at December 31, 2022 | Valuation Technique | Unobservable Input | Range of Input Values Increase (Decrease) | Weighted Average Increase (Decrease)
Equity securities: |  |  |  |  |
Nonredeemable preferred stocks | $ | 83.8 |  | Market comparables | Weighted average market capitalization price change % | (0.6)% to 19.9% | 10.5%
Common stocks | 18.3 |  | Market comparables | Weighted average market capitalization price change % | (42.5)% to 59.1% | 0.3%
Subtotal Level 3 securities | 102.1 |  |  |  |  |
Pricing exemption securities | 19.8 |  |  |  |  |
Total Level 3 securities | $ | 121.9 |  |  |  |  |

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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 Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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