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Fair Value (Tables)

9 Months Ended

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 input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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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).

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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.

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