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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2013
Fair Value Disclosures [Abstract]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
The valuation of assets measured at fair value in the Company’s Consolidated Balance Sheet at December 31, 2013 is summarized below:
DOLLARS IN MILLIONS
 
Fair Value Measurements
 
Fair Value
Quoted Prices
in Active Markets
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Fixed Maturities:
 
 
 
 
 
 
 
 
U.S. Government and Government Agencies and Authorities
 
$
121.2

 
$
241.0

 
$
—

 
$
362.2

States and Political Subdivisions
 
—

 
1,361.0

 
—

 
1,361.0

Corporate Securities:
 
 
 
 
 
 
 
 
Bonds and Notes
 
—

 
2,429.6

 
364.1

 
2,793.7

Redeemable Preferred Stocks
 
—

 
—

 
7.4

 
7.4

Mortgage and Asset-backed
 
—

 
1.5

 
49.2

 
50.7

Total Investments in Fixed Maturities
 
121.2

 
4,033.1

 
420.7

 
4,575.0

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

 
80.8

 
5.0

 
85.8

Other Industries
 
—

 
10.5

 
13.9

 
24.4

Common Stocks:
 
 
 
 
 
 
 
 
Manufacturing
 
95.1

 
7.3

 
2.2

 
104.6

Other Industries
 
71.7

 
2.2

 
11.0

 
84.9

Other Equity Interests:
 
 
 
 
 
 
 
 
Exchange Traded Funds
 
124.9

 
—

 
—

 
124.9

Limited Liability Companies and Limited Partnerships
 
—

 
—

 
173.9

 
173.9

Total Investments in Equity Securities
 
291.7

 
100.8

 
206.0

 
598.5

Other Investments:
 
 
 
 
 
 
 
 
Trading Securities
 
5.0

 
—

 
—

 
5.0

Total
 
$
417.9

 
$
4,133.9

 
$
626.7

 
$
5,178.5

At December 31, 2013, the Company had unfunded commitments to invest an additional $121.1 million in certain limited liability companies and limited partnerships that are reportable as Other Equity Interests.
NOTE 22. FAIR VALUE MEASUREMENTS (Continued)
The valuation of assets measured at fair value in the Company’s Consolidated Balance Sheet at December 31, 2012 is summarized below:
DOLLARS IN MILLIONS
 
Fair Value Measurements
 
Fair Value
Quoted Prices
in Active Markets
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Fixed Maturities:
 
 
 
 
 
 
 
 
U.S. Government and Government Agencies and Authorities
 
$
135.8

 
$
293.1

 
$
—

 
$
428.9

States and Political Subdivisions
 
—

 
1,401.4

 
—

 
1,401.4

Corporate Securities:
 
 
 
 
 
 
 
 
Bonds and Notes
 
—

 
2,632.4

 
361.0

 
2,993.4

Redeemable Preferred Stocks
 
—

 
27.9

 
4.7

 
32.6

Mortgage and Asset-backed
 
—

 
3.8

 
0.1

 
3.9

Total Investments in Fixed Maturities
 
135.8

 
4,358.6

 
365.8

 
4,860.2

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

 
79.2

 
—

 
79.2

Other Industries
 
—

 
15.3

 
6.0

 
21.3

Common Stocks:
 
 
 
 
 
 
 
 
Manufacturing
 
79.6

 
6.0

 
1.9

 
87.5

Other Industries
 
60.1

 
1.2

 
5.4

 
66.7

Other Equity Interests:
 
 
 
 
 
 
 
 
Exchange Traded Funds
 
125.9

 
—

 
—

 
125.9

Limited Liability Companies and Limited Partnerships
 
—

 
—

 
141.3

 
141.3

Total Investments in Equity Securities
 
265.6

 
101.7

 
154.6

 
521.9

Other Investments:
 
 
 
 
 
 
 
 
Trading Securities
 
4.5

 
—

 
—

 
4.5

Total
 
$
405.9

 
$
4,460.3

 
$
520.4

 
$
5,386.6
Fair Value Inputs, Assets, Quantitative Information
The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for investments in corporate bonds and notes classified as Level 3 at December 31, 2013.
DOLLARS IN MILLIONS
 
Unobservable Input
 
Total Fair Value
 
Range of Unobservable Inputs
 
Weighted Average Yield
Investment Grade
 
Market Yield

$
108.5


1.0
%
-
6.0
%
 
4.3
%
Non-investment Grade:
 
 
 
 
 
 
 
 
 
 
Senior Debt
 
Market Yield
 
93.9

 
4.2

-
15.6

 
8.6

Junior Debt
 
Market Yield
 
153.5

 
8.8

-
26.6

 
14.2

Other Debt
 
Various
 
8.2

 
 
 
 
 
 
Bonds and Notes Classified as Level 3
 
 
 
$
364.1

 
 
 
 
 
 

The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for investments in corporate bonds and notes classified as Level 3 at December 31, 2012.
DOLLARS IN MILLIONS
 
Unobservable Input
 
Total Fair Value
 
Range of Unobservable Inputs
 
Weighted Average Yield
Investment Grade
 
Market Yield
 
$
94.6

 
1.3
%
-
6.3
%
 
4.0
%
Non-investment Grade:
 
 
 
 
 
 
 
 
 
 
Senior Debt
 
Market Yield
 
77.7

 
5.7

-
18.0

 
9.1

Junior Debt
 
Market Yield
 
173.2

 
8.8

-
21.4

 
14.8

Other Debt
 
Various
 
15.5

 
 
 
 
 
 
Bonds and Notes Classified as Level 3
 
 
 
$
361.0

 
 
 
 
 
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the year ended December 31, 2013 is presented below:
DOLLARS IN MILLIONS
 
Fixed Maturities
 
Equity Securities
 
 
 
Corporate
Bonds
and
Notes
 
Redeemable
Preferred
Stocks
 
Mortgage
and Asset-
backed
 
Preferred
and
Common
Stocks
 
Other
Equity
Interests
 
Total
Balance at Beginning of Year
 
$
361.0

 
$
4.7

 
$
0.1

 
$
13.3

 
$
141.3

 
$
520.4

Total Gains (Losses):
 
 
 
 
 
 
 
 
 
 
 
 
Included in Consolidated Statement of Income
 
(7.9
)
 
0.2

 
0.3

 
(1.0
)
 
(1.6
)
 
(10.0
)
Included in Other Comprehensive Income
 
(7.8
)
 
(1.3
)
 
(0.1
)
 
4.6

 
5.6

 
1.0

Purchases
 
145.1

 
5.1

 
48.6

 
15.9

 
55.4

 
270.1

Settlements
 
(123.2
)
 
(1.3
)
 
(0.1
)
 
—

 
(26.8
)
 
(151.4
)
Sales
 
(0.1
)
 
—

 
(2.0
)
 
(0.7
)
 
—

 
(2.8
)
Transfers into Level 3
 
5.8

 
—

 
2.4

 
—

 
—

 
8.2

Transfers out of Level 3
 
(8.8
)
 
—

 
—

 
—

 
—

 
(8.8
)
Balance at End of Year
 
$
364.1

 
$
7.4

 
$
49.2

 
$
32.1

 
$
173.9

 
$
626.7

Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the year ended December 31, 2012 is presented below:
DOLLARS IN MILLIONS
 
Fixed Maturities
 
Equity Securities
 
Total
Corporate
Bonds
and
Notes
 
Redeemable
Preferred
Stocks
 
Mortgage
and Asset-
backed
 
Preferred
and
Common
Stocks
 
Other
Equity
Interests
 
Balance at Beginning of Year
 
$
235.1

 
$
6.1

 
$
0.3

 
$
13.5

 
$
93.1

 
$
348.1

Total Gains (Losses):
 
 
 
 
 
 
 
 
 
 
 
 
Included in Consolidated Statement of Income
 
4.0

 
(0.4
)
 
—

 
3.2

 
—

 
6.8

Included in Other Comprehensive Income
 
1.4

 
0.5

 
—

 
(1.3
)
 
8.3

 
8.9

Purchases
 
199.7

 
0.1

 
—

 
1.6

 
52.0

 
253.4

Settlements
 
(73.1
)
 
(1.6
)
 
(0.2
)
 
—

 
(12.1
)
 
(87.0
)
Sales
 
(0.9
)
 
—

 
—

 
(3.7
)
 
—

 
(4.6
)
Transfers into Level 3
 
0.9

 
—

 
—

 
—

 
—

 
0.9

Transfers out of Level 3
 
(6.1
)
 
—

 
—

 
—

 
—

 
(6.1
)
Balance at End of Year
 
$
361.0

 
$
4.7

 
$
0.1

 
$
13.3

 
$
141.3

 
$
520.4