v2.4.0.6
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2012
Fair Value Disclosures [Abstract]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block]
The valuation of assets measured at fair value in the Company’s Condensed Consolidated Balance Sheet at December 31, 2011 is summarized below:
 
 
Fair Value Measurements
 
 
(Dollars in Millions)
 
Quoted Prices
in Active Markets
for Identical Assets
(Level 1)
 
Significant Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total Fair Value
Fixed Maturities:
 
 
 
 
 
 
 
 
U.S. Government and Government Agencies and Authorities
 
$
153.6

 
$
338.1

 
$
—

 
$
491.7

States and Political Subdivisions
 
—

 
1,852.6

 
—

 
1,852.6

Corporate Securities:
 
 
 
 
 
 
 
 
Bonds and Notes
 
—

 
2,107.2

 
235.1

 
2,342.3

Redeemable Preferred Stocks
 
—

 
75.6

 
6.1

 
81.7

Mortgage and Asset-backed
 
—

 
4.8

 
0.3

 
5.1

Total Investments in Fixed Maturities
 
153.6

 
4,378.3

 
241.5

 
4,773.4

Equity Securities:
 
 
 
 
 
 
 
 
Preferred Stocks:
 
 
 
 
 
 
 
 
Finance, Insurance and Real Estate
 
—

 
86.7

 
—

 
86.7

Other Industries
 
—

 
14.9

 
5.6

 
20.5

Common Stocks:
 
 
 
 
 
 
 
 
Manufacturing
 
74.7

 
5.0

 
3.7

 
83.4

Other Industries
 
42.8

 
—

 
4.2

 
47.0

Other Equity Interests:
 
 
 
 
 
 
 
 
Exchange Traded Funds
 
66.6

 
—

 
—

 
66.6

Limited Liability Companies and Limited Partnerships
 
—

 
—

 
93.1

 
93.1

Total Investments in Equity Securities
 
184.1

 
106.6

 
106.6

 
397.3

Other Investments:
 
 
 
 
 
 
 
 
Trading Securities
 
4.4

 
—

 
—

 
4.4

Total
 
$
342.1

 
$
4,484.9

 
$
348.1

 
$
5,175.1

The valuation of assets measured at fair value in the Company’s Condensed Consolidated Balance Sheet at September 30, 2012 is summarized below:
 
 
Fair Value Measurements
 
 
(Dollars in Millions)
 
Quoted Prices
in Active Markets
for Identical Assets
(Level 1)
 
Significant Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total Fair Value
Fixed Maturities:
 
 
 
 
 
 
 
 
U.S. Government and Government Agencies and Authorities
 
$
138.9

 
$
317.7

 
$
—

 
$
456.6

States and Political Subdivisions
 
—

 
1,436.0

 
—

 
1,436.0

Corporate Securities:
 
 
 
 
 
 
 
 
Bonds and Notes
 
—

 
2,475.5

 
311.1

 
2,786.6

Redeemable Preferred Stocks
 
—

 
36.9

 
4.8

 
41.7

Mortgage and Asset-backed
 
—

 
4.5

 
0.2

 
4.7

Total Investments in Fixed Maturities
 
138.9

 
4,270.6

 
316.1

 
4,725.6

Equity Securities:
 
 
 
 
 
 
 
 
Preferred Stocks:
 
 
 
 
 
 
 
 
Finance, Insurance and Real Estate
 
—

 
84.7

 
—

 
84.7

Other Industries
 
—

 
15.3

 
6.9

 
22.2

Common Stocks:
 
 
 
 
 
 
 
 
Manufacturing
 
82.4

 
5.6

 
2.2

 
90.2

Other Industries
 
71.0

 
1.2

 
4.9

 
77.1

Other Equity Interests:
 
 
 
 
 
 
 
 
Exchange Traded Funds
 
151.8

 
—

 
—

 
151.8

Limited Liability Companies and Limited Partnerships
 
—

 
—

 
119.7

 
119.7

Total Investments in Equity Securities
 
305.2

 
106.8

 
133.7

 
545.7

Other Investments:
 
 
 
 
 
 
 
 
Trading Securities
 
4.5

 
—

 
—

 
4.5

Total
 
$
448.6

 
$
4,377.4

 
$
449.8

 
$
5,275.8
Fair Value Inputs, Assets, Quantitative Information [Table Text Block]
The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for the vast majority of investments in fixed maturities classified as Level 3.
(Dollars in Millions)
 
Unobservable Input
 
Total Fair Value
 
Range of Unobservable Inputs
 
Weighted Average Market Yield
Senior Debt
 
Market Yield
 
$
142.5

 
1.2%
-
17.0%
 
6.6
%
Junior Debt
 
Market Yield
 
$
147.9

 
9%
-
25.1%
 
14.8
%
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the nine months ended September 30, 2011 is presented below:
 
 
Fixed Maturities
 
Equity Securities
 
 
(Dollars in Millions)
 
Corporate
Bonds
and Notes
 
Redeemable
Preferred
Stocks
 
Mortgage
and Asset-
backed
 
Preferred
and Common
Stocks
 
Other
Equity
Interests
 
Total
Balance at Beginning of Period
 
$
146.2

 
$
4.5

 
$
0.4

 
$
14.7

 
$
75.2

 
$
241.0

Total Gains (Losses):
 
 
 
 
 
 
 
 
 
 
 
 
Included in Condensed Consolidated Statement of Income
 
1.0

 
—

 
—

 
4.6

 
0.3

 
5.9

Included in Other Comprehensive Income
 
2.5

 
—

 
—

 
(5.5
)
 
(16.6
)
 
(19.6
)
Purchases
 
76.1

 
—

 
—

 
1.5

 
23.9

 
101.5

Settlements
 
(44.1
)
 
—

 
(0.1
)
 
(0.4
)
 
(10.6
)
 
(55.2
)
Sales
 
(0.5
)
 
—

 
—

 
(5.7
)
 
—

 
(6.2
)
Transfers into Level 3
 
5.4

 
—

 
—

 
—

 
—

 
5.4

Balance at End of Period
 
$
186.6

 
$
4.5

 
$
0.3

 
$
9.2

 
$
72.2

 
$
272.8


Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the three months ended September 30, 2011 is presented below:
 
 
Fixed Maturities
 
Equity Securities
 
 
(Dollars in Millions)
 
Corporate
Bonds
and Notes
 
Redeemable
Preferred
Stocks
 
Mortgage
and Asset-
backed
 
Preferred
and Common
Stocks
 
Other
Equity
Interests
 
Total
Balance at Beginning of Period
 
$
174.8

 
$
6.4

 
$
0.3

 
$
8.5

 
$
80.1

 
$
270.1

Total Gains (Losses):
 
 
 
 
 
 
 
 
 
 
 
 
Included in Condensed Consolidated Statement of Income
 
0.6

 
—

 
—

 
(0.1
)
 
0.3

 
0.8

Included in Other Comprehensive Income
 
1.1

 
(1.9
)
 
—

 
(0.2
)
 
(13.7
)
 
(14.7
)
Purchases
 
20.1

 
—

 
—

 
1.0

 
8.3

 
29.4

Settlements
 
(15.4
)
 
—

 
—

 
—

 
(2.8
)
 
(18.2
)
Transfers into Level 3
 
5.4

 
—

 
—

 
—

 
—

 
5.4

Balance at End of Period
 
$
186.6

 
$
4.5

 
$
0.3

 
$
9.2

 
$
72.2

 
$
272.8

Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the nine months ended September 30, 2012 is presented below:
 
 
Fixed Maturities
 
Equity Securities
 
 
(Dollars in Millions)
 
Corporate
Bonds
and Notes
 
Redeemable
Preferred
Stocks
 
Mortgage
and Asset-
backed
 
Preferred
and Common
Stocks
 
Other
Equity
Interests
 
Total
Balance at Beginning of Period
 
$
235.1

 
$
6.1

 
$
0.3

 
$
13.5

 
$
93.1

 
$
348.1

Total Gains (Losses):
 
 
 
 
 
 
 
 
 
 
 
 
Included in Condensed Consolidated Statement of Income
 
3.5

 
—

 
—

 
3.2

 
0.3

 
7.0

Included in Other Comprehensive Income
 
2.2

 
0.3

 
—

 
(0.3
)
 
3.1

 
5.3

Purchases
 
123.1

 
—

 
—

 
1.3

 
33.5

 
157.9

Settlements
 
(52.2
)
 
(1.6
)
 
(0.1
)
 
—

 
(10.3
)
 
(64.2
)
Sales
 
(0.5
)
 
—

 
—

 
(3.7
)
 
—

 
(4.2
)
Transfers into Level 3
 
6.0

 
—

 
—

 
—

 
—

 
6.0

Transfers out of Level 3
 
(6.1
)
 
—

 
—

 
—

 
—

 
(6.1
)
Balance at End of Period
 
$
311.1

 
$
4.8

 
$
0.2

 
$
14.0

 
$
119.7

 
$
449.8

Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the three months ended September 30, 2012 is presented below:
 
 
Fixed Maturities
 
Equity Securities
 
 
(Dollars in Millions)
 
Corporate
Bonds
and Notes
 
Redeemable
Preferred
Stocks
 
Mortgage
and Asset-
backed
 
Preferred
and Common
Stocks
 
Other
Equity
Interests
 
Total
Balance at Beginning of Period
 
$
276.3

 
$
4.6

 
$
0.2

 
$
13.4

 
$
109.9

 
$
404.4

Total Gains (Losses):
 
 
 
 
 
 
 
 
 
 
 
 
Included in Condensed Consolidated Statement of Income
 
1.4

 
—

 
—

 
—

 
—

 
1.4

Included in Other Comprehensive Income
 
1.5

 
0.2

 
—

 
0.5

 
6.1

 
8.3

Purchases
 
37.6

 
—

 
—

 
0.1

 
6.5

 
44.2

Settlements
 
(10.8
)
 
—

 
—

 
—

 
(2.8
)
 
(13.6
)
Sales
 
—

 
—

 
—

 
—

 
—

 
—

Transfers into Level 3
 
5.1

 
—

 
—

 
—

 
—

 
5.1

Balance at End of Period
 
$
311.1

 
$
4.8

 
$
0.2

 
$
14.0

 
$
119.7

 
$
449.8