Investments

12 Months Ended

Dec. 31, 2025

Investments, Debt and Equity Securities [Abstract]

2. INVESTMENTS

A. FIXED MATURITIES

The amortized cost and fair value of available-for-sale fixed maturities were as follows:


DECEMBER 31, 2025
(in millions)

	Amortized Cost		Allowance for Credit Losses			Amortized Cost, Net of Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury and government agencies	$	491.3	$	—		$	491.3	$	2.4	$	38.2	$	455.5
Foreign governments		2.5		—			2.5		0.2		—		2.7
Municipals		910.8		—			910.8		4.1		67.2		847.7
Corporates		4,239.3		(0.2	)		4,239.1		71.4		57.0		4,253.5
Residential mortgage-backed		2,472.2		—			2,472.2		32.4		82.8		2,421.8
Commercial mortgage-backed		610.2		—			610.2		1.0		21.3		589.9
Other asset-backed		959.6		—			959.6		6.5		0.7		965.4
Total fixed maturities	$	9,685.9	$	(0.2	)	$	9,685.7	$	118.0	$	267.2	$	9,536.5


DECEMBER 31, 2024
(in millions)

	Amortized Cost		Allowance for Credit Losses			Amortized Cost, Net of Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury and government agencies	$	552.6	$	—		$	552.6	$	0.4	$	58.8	$	494.2
Foreign governments		1.8		—			1.8		0.1		—		1.9
Municipals		1,001.5		—			1,001.5		1.5		109.2		893.8
Corporates		3,953.5		(0.6	)		3,952.9		14.4		161.4		3,805.9
Residential mortgage-backed		2,277.6		—			2,277.6		2.8		156.3		2,124.1
Commercial mortgage-backed		564.2		—			564.2		0.1		42.1		522.2
Other asset-backed		700.9		—			700.9		2.5		3.3		700.1
Total fixed maturities	$	9,052.1	$	(0.6	)	$	9,051.5	$	21.8	$	531.1	$	8,542.2

The Company enters into various agreements that may require its fixed maturities to be held as collateral by others. At December 31, 2025 and 2024, fixed maturities with fair values of $339.2 million and $130.9 million, respectively, were held as collateral for the FHLB collateralized borrowing program. See Note 5 — “Debt and Credit Arrangements” for additional information related to the Company’s FHLB program. Additionally, at December 31, 2025 and 2024, fixed maturities with fair values of $356.4 million and $316.3 million, respectively, were on deposit with various state governmental authorities or trustees.

The amortized cost and fair value by maturity periods for fixed maturities are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties, or the Company may have the right to put or sell the obligations back to the issuers.


DECEMBER 31	2025
(in millions)	Amortized Cost, net of Allowance for Credit Losses		Fair Value
Due in one year or less	$	127.5	$	127.5
Due after one year through five years		2,361.7		2,351.2
Due after five years through ten years		2,839.6		2,788.0
Due after ten years		314.9		292.7
		5,643.7		5,559.4
Mortgage-backed and other asset-backed securities		4,042.0		3,977.1
Total fixed maturities	$	9,685.7	$	9,536.5

B. UNREALIZED GAINS AND LOSSES

Unrealized gains and losses on available-for-sale fixed maturities are summarized in the following table.


YEARS ENDED DECEMBER 31
(in millions)
	2025			2024			2023
Net depreciation, beginning of year	$	(403.5	)	$	(462.8	)	$	(641.4	)
Net appreciation on available-for-sale fixed maturities		364.6			76.6			227.6
Provision for deferred income taxes		(77.4	)		(17.3	)		(49.0	)
		287.2			59.3			178.6
Net depreciation, end of year	$	(116.3	)	$	(403.5	)	$	(462.8	)

C. FIXED MATURITY SECURITIES IN AN UNREALIZED LOSS POSITION

The following tables provide information about the Company’s available-for-sale fixed maturity securities that were in an unrealized loss position at December 31, 2025 and 2024, including the length of time the securities have been in an unrealized loss position:


DECEMBER 31, 2025	12 months or less				Greater than 12 months				Total
(in millions)	Gross				Gross				Gross
	Unrealized		Fair		Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value		Losses		Value
Investment grade:
U.S. Treasury and government agencies	$	—	$	11.9	$	38.2	$	319.7	$	38.2	$	331.6
Municipals		0.6		56.3		66.6		550.3		67.2		606.6
Corporates		1.0		271.3		51.2		704.2		52.2		975.5
Residential mortgage-backed		0.5		128.7		82.3		521.7		82.8		650.4
Commercial mortgage-backed		0.5		122.5		20.0		284.3		20.5		406.8
Other asset-backed		0.5		82.9		0.2		24.3		0.7		107.2
Total investment grade		3.1		673.6		258.5		2,404.5		261.6		3,078.1
Below investment grade:
Corporates		2.2		37.5		2.6		34.8		4.8		72.3
Commercial mortgage-backed		—		—		0.8		4.9		0.8		4.9
Other asset-backed		—		1.3		—		—		—		1.3
Total below investment grade		2.2		38.8		3.4		39.7		5.6		78.5
Total fixed maturities	$	5.3	$	712.4	$	261.9	$	2,444.2	$	267.2	$	3,156.6


DECEMBER 31, 2024	12 months or less				Greater than 12 months				Total
(in millions)	Gross				Gross				Gross
	Unrealized		Fair		Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value		Losses		Value
Investment grade:
U.S. Treasury and government agencies	$	7.8	$	194.4	$	51.0	$	240.8	$	58.8	$	435.2
Municipals		3.0		132.5		106.2		680.9		109.2		813.4
Corporates		22.8		1,360.3		132.0		1,523.3		154.8		2,883.6
Residential mortgage-backed		16.5		896.8		139.8		747.2		156.3		1,644.0
Commercial mortgage-backed		0.7		23.7		41.4		485.4		42.1		509.1
Other asset-backed		2.5		181.4		0.8		78.5		3.3		259.9
Total investment grade		53.3		2,789.1		471.2		3,756.1		524.5		6,545.2
Below investment grade:
Foreign governments		—		0.1		—		—		—		0.1
Corporates		1.3		70.8		5.3		49.8		6.6		120.6
Commercial mortgage-backed		—		—		—		0.8		—		0.8
Total below investment grade		1.3		70.9		5.3		50.6		6.6		121.5
Total fixed maturities	$	54.6	$	2,860.0	$	476.5	$	3,806.7	$	531.1	$	6,666.7

The Company views gross unrealized losses on fixed maturities as non-credit related and through its assessment of unrealized losses has determined that these securities will recover, allowing the Company to realize the anticipated long-term economic value. The Company currently does not intend to sell, nor does it expect to be required to sell these securities before recovery of their amortized cost. The Company employs a systematic methodology to evaluate declines in fair value below amortized cost for fixed maturity securities. In determining impairments, the Company evaluates several factors and circumstances, including the issuer’s overall financial condition; the issuer’s credit and financial strength ratings; the issuer’s financial performance, including earnings trends and asset quality; any specific events which may influence the operations of the issuer; the general outlook for market conditions in the industry or geographic region in which the issuer operates; and the degree to which the fair value of an issuer’s securities is below the Company’s amortized cost. The Company also considers any factors that might raise doubt about the issuer’s ability to make contractual payments as they come due and whether the Company expects to recover the entire amortized cost basis of the security.

D. OTHER INVESTMENTS

The Company’s mortgage loan participations were $247.0 million and $304.9 million at December 31, 2025 and 2024, respectively. Participating interests in commercial mortgage loans are originated and serviced by a third-party. For these investments, the Company shares, on a pro-rata basis, in all related cash flows of the underlying mortgages. Mortgage participations and other mortgage loans were comprised of the following property types and geographic locations.


DECEMBER 31	2025			2024
(in millions)
Property Type:
Office	$	116.1		$	121.6
Apartments		73.1			73.4
Hotel		30.7			47.0
Industrial		26.3			35.8
Retail		8.9			32.8
Allowance for credit losses		(8.1	)		(5.7	)
Total	$	247.0		$	304.9


DECEMBER 31	2025			2024
(in millions)
Geographic Region:
South Atlantic	$	75.1		$	82.2
Pacific		63.5			82.7
New England		39.7			40.6
Mid Atlantic		28.7			42.6
West South Central		22.3			22.8
West North Central		8.9			9.1
Other		16.9			30.6
Allowance for credit losses		(8.1	)		(5.7	)
Total	$	247.0		$	304.9

At December 31, 2025, scheduled maturities of mortgage loan participations were as follows: due in 2026 — $59.6 million; in 2027 — $29.4 million; 2028 — $20.8 million; 2029 — $46.4 million and thereafter — $90.8 million. Actual maturities could differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties, and loans may be refinanced.

In determining estimated credit losses on mortgage loan participations, the Company evaluates several factors, including credit risk. The amortized cost of mortgage loan participations by credit ratings and year of origination was as follows:


DECEMBER 31, 2025
(in millions)	Prior to 2021		2021		2022		2023		2024		2025		Total
Credit Quality
Aaa/Aa/A	$	87.0	$	42.5	$	10.0	$	—	$	—	$	—	$	139.5
Baa		43.7		11.7		—		—		9.9		9.4		74.7
Ba and lower		32.0		—		—		—		8.9		—		40.9
Amortized cost	$	162.7	$	54.2	$	10.0	$	—	$	18.8	$	9.4	$	255.1
Allowance for credit losses														(8.1	)
Amortized cost, net of allowance for credit losses													$	247.0

Other investments also include interests in limited partnerships of $391.5 million and $395.0 million at December 31, 2025 and 2024, respectively.

E. OTHER

At December 31, 2025 and 2024, the Company’s exposure to concentration of investments in a single investee that exceeded 10% of shareholders’ equity included securities of the U.S. government and U.S. government-sponsored agencies. At December 31, 2024, the Company’s exposure to concentration of investments in a single investee also included $304.9 million of mortgage loan participations with a highly-rated single third-party.

At December 31, 2025, there were contractual investment commitments of up to $283.7 million.