XML 32 R25.htm IDEA: XBRL DOCUMENT v3.24.3
Fair Value (Tables)
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Values of Financial Instruments

The estimated fair values of the financial instruments were as follows:

 

 

September 30, 2024

 

 

December 31, 2023

 

 

 

Carrying

 

 

Market

 

 

Carrying

 

 

Market

 

(in millions)

 

Value

 

 

Value

 

 

Value

 

 

Value

 

Financial Assets carried at:

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value through AOCI:

 

 

 

 

 

 

 

 

 

 

 

 

Fixed maturities

 

$

8,620.0

 

 

$

8,620.0

 

 

$

7,985.3

 

 

$

7,985.3

 

Fair Value through Net Income:

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

 

150.1

 

 

 

150.1

 

 

 

130.9

 

 

 

130.9

 

Other investments

 

 

101.2

 

 

 

101.2

 

 

 

118.4

 

 

 

118.4

 

Amortized Cost/Cost:

 

 

 

 

 

 

 

 

 

 

 

 

Other investments

 

 

374.3

 

 

 

360.0

 

 

 

413.1

 

 

 

393.5

 

Cash and cash equivalents

 

 

427.1

 

 

 

427.1

 

 

 

316.1

 

 

 

316.1

 

Total financial instruments

 

$

9,672.7

 

 

$

9,658.4

 

 

$

8,963.8

 

 

$

8,944.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities carried at:

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost:

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

783.9

 

 

$

752.5

 

 

$

783.2

 

 

$

727.5

 
Fair Value, Investment Assets Measured on Recurring Basis

The following tables provide, for each hierarchy level, the Company’s investment assets that were measured at fair value on a recurring basis.

 

 

 

September 30, 2024

 

(in millions)

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agencies

 

$

576.8

 

 

$

436.2

 

 

$

140.6

 

 

$

—

 

Foreign governments

 

 

1.8

 

 

 

—

 

 

 

1.8

 

 

 

—

 

Municipals

 

 

1,049.3

 

 

 

—

 

 

 

1,041.3

 

 

 

8.0

 

Corporates

 

 

3,973.9

 

 

 

—

 

 

 

3,973.9

 

 

 

—

 

Residential mortgage-backed, U.S. agency backed

 

 

1,478.4

 

 

 

—

 

 

 

1,478.4

 

 

 

—

 

Residential mortgage-backed, non-agency

 

 

250.4

 

 

 

—

 

 

 

250.4

 

 

 

—

 

Commercial mortgage-backed

 

 

586.2

 

 

 

—

 

 

 

580.0

 

 

 

6.2

 

Other asset-backed

 

 

703.2

 

 

 

—

 

 

 

703.2

 

 

 

—

 

Total fixed maturities

 

 

8,620.0

 

 

 

436.2

 

 

 

8,169.6

 

 

 

14.2

 

Equity securities

 

 

150.1

 

 

 

142.3

 

 

 

—

 

 

 

7.8

 

Other investments

 

 

3.8

 

 

 

—

 

 

 

—

 

 

 

3.8

 

Total investment assets at fair value

 

$

8,773.9

 

 

$

578.5

 

 

$

8,169.6

 

 

$

25.8

 

 

 

 

December 31, 2023

 

(in millions)

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agencies

 

$

462.6

 

 

$

324.3

 

 

$

138.3

 

 

$

—

 

Foreign governments

 

 

2.2

 

 

 

—

 

 

 

2.2

 

 

 

—

 

Municipals

 

 

1,185.2

 

 

 

—

 

 

 

1,176.6

 

 

 

8.6

 

Corporates

 

 

3,849.7

 

 

 

—

 

 

 

3,849.6

 

 

 

0.1

 

Residential mortgage-backed, U.S. agency backed

 

 

1,168.7

 

 

 

—

 

 

 

1,168.7

 

 

 

—

 

Residential mortgage-backed, non-agency

 

 

142.2

 

 

 

—

 

 

 

142.2

 

 

 

—

 

Commercial mortgage-backed

 

 

818.2

 

 

 

—

 

 

 

811.2

 

 

 

7.0

 

Other asset-backed

 

 

356.5

 

 

 

—

 

 

 

356.5

 

 

 

—

 

Total fixed maturities

 

 

7,985.3

 

 

 

324.3

 

 

 

7,645.3

 

 

 

15.7

 

Equity securities

 

 

130.9

 

 

 

123.3

 

 

 

—

 

 

 

7.6

 

Other investments

 

 

3.8

 

 

 

—

 

 

 

—

 

 

 

3.8

 

Total investment assets at fair value

 

$

8,120.0

 

 

$

447.6

 

 

$

7,645.3

 

 

$

27.1

 
Estimated Fair Values of Financial Instruments Not Carried at Fair Value

The following tables provide, for each hierarchy level, the Company’s estimated fair values of financial instruments that were not carried at fair value:

 

 

 

September 30, 2024

 

(in millions)

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

427.1

 

 

$

427.1

 

 

$

—

 

 

$

—

 

Other investments

 

 

360.0

 

 

 

—

 

 

 

6.1

 

 

 

353.9

 

Total financial instruments

 

$

787.1

 

 

$

427.1

 

 

$

6.1

 

 

$

353.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

752.5

 

 

$

—

 

 

$

752.5

 

 

$

—

 

 

 

 

December 31, 2023

 

(in millions)

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

316.1

 

 

$

316.1

 

 

$

—

 

 

$

—

 

Other investments

 

 

393.5

 

 

 

—

 

 

 

6.1

 

 

 

387.4

 

Total financial instruments

 

$

709.6

 

 

$

316.1

 

 

$

6.1

 

 

$

387.4

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

727.5

 

 

$

—

 

 

$

727.5

 

 

$

—

 
Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following tables provide a reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3).

 

 

Fixed Maturities

 

 

 

 

 

(in millions)

 

Municipals

 

Corporates

 

Commercial
mortgage-
backed

 

Total

 

Equities and
Other

 

Total
Assets

 

Three Months Ended September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance July 1, 2024

 

$

7.9

 

$

—

 

$

6.7

 

$

14.6

 

$

11.5

 

$

26.1

 

Total gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in net realized and unrealized
investment gains (losses)

 

 

—

 

 

—

 

 

—

 

 

—

 

 

0.1

 

 

0.1

 

Included in other comprehensive income (loss) - changes in
net unrealized gains (losses) on investment securities

 

 

0.3

 

 

—

 

 

(0.4

)

 

(0.1

)

 

—

 

 

(0.1

)

Settlements

 

 

(0.2

)

 

—

 

 

(0.1

)

 

(0.3

)

 

—

 

 

(0.3

)

Balance September 30, 2024

 

$

8.0

 

$

—

 

$

6.2

 

$

14.2

 

$

11.6

 

$

25.8

 

Changes in net unrealized gains (losses) for the period
included in other comprehensive income (loss) for
assets held at the end of the period

 

$

0.3

 

$

—

 

$

(0.4

)

$

(0.1

)

$

—

 

$

(0.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance July 1, 2023

 

$

8.8

 

$

0.1

 

$

7.2

 

$

16.1

 

$

11.2

 

$

27.3

 

Total losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in other comprehensive income (loss) - changes in
net unrealized gains (losses) on investment securities

 

 

(0.2

)

 

—

 

 

(0.1

)

 

(0.3

)

 

—

 

 

(0.3

)

Settlements

 

 

(0.1

)

 

—

 

 

(0.2

)

 

(0.3

)

 

—

 

 

(0.3

)

Balance September 30, 2023

 

$

8.5

 

$

0.1

 

$

6.9

 

$

15.5

 

$

11.2

 

$

26.7

 

Changes in net unrealized gains (losses) for the period
included in other comprehensive income (loss) for
assets held at the end of the period

 

$

(0.2

)

$

—

 

$

(0.1

)

$

(0.3

)

$

—

 

$

(0.3

)

 

 

Fixed Maturities

 

 

 

 

 

(in millions)

Municipals

 

Corporates

 

Commercial
mortgage-
backed

 

Total

 

Equities and
Other

 

Total
Assets

 

Nine Months Ended September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 Balance January 1, 2024

$

8.6

 

$

0.1

 

$

7.0

 

$

15.7

 

$

11.4

 

$

27.1

 

Transfers out of Level 3

 

—

 

 

(0.1

)

 

—

 

 

(0.1

)

 

—

 

 

(0.1

)

Total gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

Included in net realized and unrealized
investment gains (losses)

 

—

 

 

—

 

 

—

 

 

—

 

 

0.2

 

 

0.2

 

Included in other comprehensive income (loss) - changes
in net unrealized gains (losses) on investment securities

 

0.2

 

 

—

 

 

(0.4

)

 

(0.2

)

 

—

 

 

(0.2

)

Settlements

 

(0.8

)

 

—

 

 

(0.4

)

 

(1.2

)

 

—

 

 

(1.2

)

Balance September 30, 2024

$

8.0

 

$

—

 

$

6.2

 

$

14.2

 

$

11.6

 

$

25.8

 

Changes in net unrealized gains (losses) for the period
included in other comprehensive income (loss) for
assets held at the end of the period

$

0.2

 

$

—

 

$

(0.4

)

$

(0.2

)

$

—

 

$

(0.2

)

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Balance January 1, 2023

$

9.3

 

$

0.1

 

$

7.5

 

$

16.9

 

$

11.1

 

$

28.0

 

Total gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

Included in net realized and unrealized
investment gains (losses)

 

—

 

 

—

 

 

—

 

 

—

 

 

0.1

 

 

0.1

 

Included in other comprehensive income (loss) - changes
in net unrealized gains (losses) on investment securities

 

(0.1

)

 

—

 

 

(0.1

)

 

(0.2

)

 

—

 

 

(0.2

)

Settlements

 

(0.7

)

 

—

 

 

(0.5

)

 

(1.2

)

 

—

 

 

(1.2

)

Balance September 30, 2023

$

8.5

 

$

0.1

 

$

6.9

 

$

15.5

 

$

11.2

 

$

26.7

 

Changes in net unrealized gains (losses) for the period
included in other comprehensive income (loss) for
assets held at the end of the period

$

(0.1

)

$

—

 

$

(0.1

)

$

(0.2

)

$

—

 

$

(0.2

)
Schedule of Additional Information About Significant Unobservable Inputs Used in Fair Valuations of Level 3

The following table provides quantitative information about the significant unobservable inputs used by the Company in the fair value measurements of Level 3 assets.

 

 

 

 

 

 

 

September 30, 2024

 

 

December 31, 2023

 

 

Valuation

 

Significant

 

 

Fair

 

 

Range

 

 

Fair

 

 

Range

(in millions)

 

Technique

 

Unobservable Inputs

 

 

Value

 

 

(Wtd Average)

 

 

Value

 

 

(Wtd Average)

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipals

 

Discounted
cash flow

 

Discount for:
   Small issue size

 

 

$

8.0

 

 

6.1 - 6.8% (6.7%)

 

 

$

8.6

 

 

6.1 - 6.8% (6.7%)

Corporates

 

Discounted
cash flow

 

Discount for:
   Small issue size
   Above-market coupon

 

 

 

—

 

 

 

—

 

 

 

0.1

 

 

2.5% (2.5%)
    0.3% (0.3%)

Commercial
mortgage-backed

 

Discounted
cash flow

 

Discount for:
   Small issue size
   Above-market coupon
   Lease structure

 

 

6.2

 

 

3.0 - 5.0% (4.7%)
0.5% (0.5%)
0.3% (0.3%)

 

 

 

7.0

 

 

3.0 - 3.1% (3.0%)
0.5% (0.5%)
0.3% (0.3%)

Equity securities

 

Market
comparables

 

Net tangible asset

 

 

1.4

 

 

N/A

 

 

 

1.2

 

 

N/A

 

 

Internal price based on financing round

 

Discount for:
   Market liquidity

 

 

6.4

 

27.0% (27.0%)

 

 

 

6.4

 

 

27.0% (27.0%)

Other

 

Discounted
cash flow

 

Discount rate

 

 

3.8

 

 

16.8% (16.8%)

 

 

3.8

 

 

16.8% (16.8%)