XML 39 R32.htm IDEA: XBRL DOCUMENT
v3.2.0.727

Fair Value Measurements (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2015
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 June 30, 2015 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 |  | $ | 125.0 |  |  | $ | 216.2 |  |  | $ | — |  |  | $ | 341.2 |
States and Political Subdivisions |  | — |  |  | 1,531.3 |  |  | — |  |  | 1,531.3 |
Corporate Securities: |  |  |  |  |  |  |  |
Bonds and Notes |  | — |  |  | 2,403.6 |  |  | 406.6 |  |  | 2,810.2 |
Redeemable Preferred Stocks |  | — |  |  | — |  |  | 5.4 |  |  | 5.4 |
Collateralized Loan Obligations |  | — |  |  | — |  |  | 70.4 |  |  | 70.4 |
Other Mortgage- and Asset-backed |  | — |  |  | 1.5 |  |  | 4.0 |  |  | 5.5 |
Total Investments in Fixed Maturities |  | 125.0 |  |  | 4,152.6 |  |  | 486.4 |  |  | 4,764.0 |
Equity Securities: |  |  |  |  |  |  |  |
Preferred Stocks: |  |  |  |  |  |  |  |
Finance, Insurance and Real Estate |  | — |  |  | 82.4 |  |  | 5.0 |  |  | 87.4 |
Other Industries |  | — |  |  | 6.9 |  |  | 17.8 |  |  | 24.7 |
Common Stocks: |  |  |  |  |  |  |  |
Finance, Insurance and Real Estate |  | 18.8 |  |  | 4.8 |  |  | — |  |  | 23.6 |
Other Industries |  | 0.3 |  |  | — |  |  | 14.9 |  |  | 15.2 |
Other Equity Interests: |  |  |  |  |  |  |  |
Exchange Traded Funds |  | 212.1 |  |  | — |  |  | — |  |  | 212.1 |
Limited Liability Companies and Limited Partnerships |  | — |  |  | — |  |  | 199.9 |  |  | 199.9 |
Total Investments in Equity Securities |  | 231.2 |  |  | 94.1 |  |  | 237.6 |  |  | 562.9 |
Fair Value Option Investments: |  |  |  |  |  |  |  |
Limited Liability Companies and Limited Partnerships Hedge Funds |  | — |  |  | — |  |  | 160.0 |  |  | 160.0 |
Other Investments: |  |  |  |  |  |  |  |
Trading Securities |  | 5.0 |  |  | — |  |  | — |  |  | 5.0 |
Total |  | $ | 361.2 |  |  | $ | 4,246.7 |  |  | $ | 884.0 |  |  | $ | 5,491.9 |
The valuation of assets measured at fair value in the Company’s Condensed Consolidated Balance Sheet at December 31, 2014 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 |  | $ | 129.2 |  |  | $ | 216.3 |  |  | $ | — |  |  | $ | 345.5 |
States and Political Subdivisions |  | — |  |  | 1,477.1 |  |  | — |  |  | 1,477.1 |
Corporate Securities: |  |  |  |  |  |  |  |
Bonds and Notes |  | — |  |  | 2,517.9 |  |  | 360.6 |  |  | 2,878.5 |
Redeemable Preferred Stocks |  | — |  |  | — |  |  | 6.7 |  |  | 6.7 |
Collateralized Loan Obligations |  | — |  |  | — |  |  | 64.4 |  |  | 64.4 |
Other Mortgage- and Asset-backed |  | — |  |  | 1.5 |  |  | 3.9 |  |  | 5.4 |
Total Investments in Fixed Maturities |  | 129.2 |  |  | 4,212.8 |  |  | 435.6 |  |  | 4,777.6 |
Equity Securities: |  |  |  |  |  |  |  |
Preferred Stocks: |  |  |  |  |  |  |  |
Finance, Insurance and Real Estate |  | — |  |  | 84.7 |  |  | 5.0 |  |  | 89.7 |
Other Industries |  | — |  |  | 3.4 |  |  | 16.4 |  |  | 19.8 |
Common Stocks: |  |  |  |  |  |  |  |
Manufacturing |  | 50.9 |  |  | 5.7 |  |  | 0.6 |  |  | 57.2 |
Finance, Insurance and Real Estate |  | 34.8 |  |  | 0.1 |  |  | 5.6 |  |  | 40.5 |
Other Industries |  | 24.2 |  |  | 0.7 |  |  | 11.2 |  |  | 36.1 |
Other Equity Interests: |  |  |  |  |  |  |  |
Exchange Traded Funds |  | 202.7 |  |  | — |  |  | — |  |  | 202.7 |
Limited Liability Companies and Limited Partnerships |  | — |  |  | — |  |  | 186.2 |  |  | 186.2 |
Total Investments in Equity Securities |  | 312.6 |  |  | 94.6 |  |  | 225.0 |  |  | 632.2 |
Fair Value Option Investments: |  |  |  |  |  |  |  |
Limited Liability Companies and Limited Partnership Hedge Funds |  | — |  |  | — |  |  | 53.3 |  |  | 53.3 |
Other Investments: |  |  |  |  |  |  |  |
Trading Securities |  | 4.9 |  |  | — |  |  | — |  |  | 4.9 |
Total |  | $ | 446.7 |  |  | $ | 4,307.4 |  |  | $ | 713.9 |  |  | $ | 5,468.0 |
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 fixed maturity investments in corporate securities classified as Level 3 at June 30, 2015.
(Dollars in Millions) |  | Unobservable Input |  | Total Fair Value |  | Range of Unobservable Inputs |  | Weighted-average Yield
Investment-grade |  | Market Yield |  | $ | 102.8 |  |  | 2.6 | % | - | 8.5 | % |  | 4.2 | %
Non-investment-grade: |  |  |  |  |  |  |  |  |  |
Senior Debt |  | Market Yield |  | 111.7 |  |  | 5.9 |  | - | 14.2 |  |  | 10.1 |
Junior Debt |  | Market Yield |  | 181.8 |  |  | 3.5 |  | - | 27.9 |  |  | 13.2 |
Collateralized Loan Obligations |  | Market Yield |  | 70.4 |  |  | 3.0 |  | - | 7.6 |  |  | 5.1 |
Other |  | Various |  | 19.7 |  |  |  |  |  |  |
Total Fixed Maturity Investments in Corporate Securities |  |  |  | $ | 486.4 |  |  |  |  |  |  |
Note 13 - Fair Value Measurements (continued) The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments in corporate securities classified as Level 3 at December 31, 2014.
(Dollars in Millions) |  | Unobservable Input |  | Total Fair Value |  | Range of Unobservable Inputs |  | Weighted-average Yield
Investment-grade |  | Market Yield |  | $ | 107.0 |  |  | 2.8 | % | - | 6.9 | % |  | 3.9 | %
Non-investment-grade: |  |  |  |  |  |  |  |  |  |
Senior Debt |  | Market Yield |  | 92.7 |  |  | 3.8 |  | - | 14.5 |  |  | 10.6 |
Junior Debt |  | Market Yield |  | 149.9 |  |  | 8.2 |  | - | 21.0 |  |  | 13.4 |
Collateralized Loan Obligations |  | Market Yield |  | 64.4 |  |  | 2.7 |  | - | 8.1 |  |  | 5.2 |
Other Debt |  | Various |  | 21.6 |  |  |  |  |  |  |
Total Fixed Maturity Investments in Corporate Securities |  |  |  | $ | 435.6 |  |  |  |  |  |  |
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 six months ended June 30, 2015 is presented below.
|  | Fixed Maturities |  | Equity Securities |  |  |  |
(Dollars in Millions) |  | Corporate Bonds and Notes |  | Redeemable Preferred Stocks |  | Collateralized Loan Obligations |  | Other Mortgage- and Asset- backed |  | Preferred and Common Stocks |  | Other Equity Interests |  | Fair Value Option |  | Total
Balance at Beginning of Period |  | $ | 360.6 |  |  | $ | 6.7 |  |  | $ | 64.4 |  |  | $ | 3.9 |  |  | $ | 38.8 |  |  | $ | 186.2 |  |  | $ | 53.3 |  |  | $ | 713.9 |
Total Gains (Losses): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Included in Condensed Consolidated Statement of Income |  | (3.1 | ) |  | (0.5 | ) |  | 0.4 |  |  | — |  |  | (1.2 | ) |  | (1.1 | ) |  | 2.7 |  |  | (2.8 | )
Included in Other Comprehensive Income |  | (1.4 | ) |  | (0.6 | ) |  | 1.2 |  |  | 0.1 |  |  | 2.2 |  |  | (0.3 | ) |  | — |  |  | 1.2 |
Purchases |  | 125.3 |  |  | — |  |  | 19.4 |  |  | 1.3 |  |  | 7.0 |  |  | 30.3 |  |  | 104.0 |  |  | 287.3 |
Settlements |  | (6.9 | ) |  | (0.2 | ) |  | (7.5 | ) |  | (0.1 | ) |  | (0.3 | ) |  | (19.3 | ) |  | — |  |  | (34.3 | )
Sales |  | (55.6 | ) |  | — |  |  | (7.5 | ) |  | (1.2 | ) |  | (1.2 | ) |  | — |  |  | — |  |  | (65.5 | )
Transfers into Level 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | 0.8 |  |  | 4.1 |  |  | — |  |  | 4.9 |
Transfers out of Level 3 |  | (12.3 | ) |  | — |  |  | — |  |  | — |  |  | (8.4 | ) |  | — |  |  | — |  |  | (20.7 | )
Balance at End of Period |  | $ | 406.6 |  |  | $ | 5.4 |  |  | $ | 70.4 |  |  | $ | 4.0 |  |  | $ | 37.7 |  |  | $ | 199.9 |  |  | $ | 160.0 |  |  | $ | 884.0 |
Note 13 - Fair Value Measurements (continued) 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 June 30, 2015 is presented below.
|  | Fixed Maturities |  | Equity Securities |  |  |  |
(Dollars in Millions) |  | Corporate Bonds and Notes |  | Redeemable Preferred Stocks |  | Collateralized Loan Obligations |  | Other Mortgage- and Asset- backed |  | Preferred and Common Stocks |  | Other Equity Interests |  | Fair Value Option |  | Total
Balance at Beginning of Period |  | $ | 374.8 |  |  | $ | 6.4 |  |  | $ | 69.9 |  |  | $ | 3.9 |  |  | $ | 33.2 |  |  | $ | 189.7 |  |  | $ | 54.2 |  |  | $ | 732.1 |
Total Gains (Losses): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Included in Condensed Consolidated Statement of Income |  | (0.8 | ) |  | (0.5 | ) |  | 0.3 |  |  | — |  |  | (0.4 | ) |  | (0.1 | ) |  | 1.8 |  |  | 0.3 |
Included in Other Comprehensive Income |  | (3.8 | ) |  | (0.3 | ) |  | (0.1 | ) |  | 0.1 |  |  | 2.9 |  |  | 0.9 |  |  | — |  |  | (0.3 | )
Purchases |  | 89.1 |  |  | — |  |  | 15.3 |  |  | 1.3 |  |  | 6.6 |  |  | 19.1 |  |  | 104.0 |  |  | 235.4 |
Settlements |  | (2.7 | ) |  | (0.2 | ) |  | (7.5 | ) |  | (0.1 | ) |  | (0.3 | ) |  | (9.7 | ) |  | — |  |  | (20.5 | )
Sales |  | (37.7 | ) |  | — |  |  | (7.5 | ) |  | (1.2 | ) |  | (0.5 | ) |  | — |  |  | — |  |  | (46.9 | )
Transfers into Level 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | 0.8 |  |  | — |  |  | — |  |  | 0.8 |
Transfers out of Level 3 |  | (12.3 | ) |  | — |  |  | — |  |  | — |  |  | (4.6 | ) |  | — |  |  | — |  |  | (16.9 | )
Balance at End of Period |  | $ | 406.6 |  |  | $ | 5.4 |  |  | $ | 70.4 |  |  | $ | 4.0 |  |  | $ | 37.7 |  |  | $ | 199.9 |  |  | $ | 160.0 |  |  | $ | 884.0 |
Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the six months ended June 30, 2014 is presented below.
|  | Fixed Maturities |  | Equity Securities |  |  |  |
(Dollars in Millions) |  | Corporate Bonds and Notes |  | Redeemable Preferred Stocks |  | Collateralized Loan Obligations |  | Other Mortgage- and Asset- backed |  | Preferred and Common Stocks |  | Other Equity Interests |  | Fair Value Option |  | Total
Balance at Beginning of Period |  | $ | 364.1 |  |  | $ | 7.4 |  |  | $ | 44.7 |  |  | $ | 4.5 |  |  | $ | 32.1 |  |  | $ | 173.9 |  |  | $ | — |  |  | $ | 626.7 |
Total Gains (Losses): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Included in Condensed Consolidated Statement of Income |  | (2.3 | ) |  | — |  |  | 0.1 |  |  | 0.1 |  |  | 2.3 |  |  | (0.3 | ) |  | 0.3 |  |  | 0.2 |
Included in Other Comprehensive Income |  | 5.4 |  |  | (0.1 | ) |  | (0.1 | ) |  | 0.1 |  |  | 2.0 |  |  | 10.5 |  |  | — |  |  | 17.8 |
Purchases |  | 85.9 |  |  | — |  |  | 4.8 |  |  | — |  |  | 2.7 |  |  | 26.3 |  |  | 40.0 |  |  | 159.7 |
Settlements |  | (50.8 | ) |  | (0.2 | ) |  | — |  |  | (0.8 | ) |  | (2.8 | ) |  | (13.6 | ) |  | — |  |  | (68.2 | )
Sales |  | (16.9 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (2.4 | ) |  | — |  |  | (19.3 | )
Transfers out of Level 3 |  | (0.6 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (0.6 | )
Balance at End of Period |  | $ | 384.8 |  |  | $ | 7.1 |  |  | $ | 49.5 |  |  | $ | 3.9 |  |  | $ | 36.3 |  |  | $ | 194.4 |  |  | $ | 40.3 |  |  | $ | 716.3 |
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 June 30, 2014 is presented below.
|  | Fixed Maturities |  | Equity Securities |  |  |  |
(Dollars in Millions) |  | Corporate Bonds and Notes |  | Redeemable Preferred Stocks |  | Collateralized Loan Obligations |  | Other Mortgage- and Asset- backed |  | Preferred and Common Stocks |  | Other Equity Interests |  | Fair Value Option |  | Total
Balance at Beginning of Period |  | $ | 379.4 |  |  | $ | 7.5 |  |  | $ | 45.0 |  |  | $ | 3.8 |  |  | $ | 38.1 |  |  | $ | 187.3 |  |  | $ | — |  |  | $ | 661.1 |
Total Gains (Losses): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Included in Condensed Consolidated Statement of Income |  | (2.4 | ) |  | — |  |  | 0.1 |  |  | — |  |  | 2.3 |  |  | (0.5 | ) |  | 0.3 |  |  | (0.2 | )
Included in Other Comprehensive Income |  | 2.9 |  |  | (0.3 | ) |  | (0.4 | ) |  | 0.1 |  |  | (1.4 | ) |  | 3.6 |  |  | — |  |  | 4.5 |
Purchases |  | 37.6 |  |  | — |  |  | 4.8 |  |  | — |  |  | 0.1 |  |  | 14.0 |  |  | 40.0 |  |  | 96.5 |
Settlements |  | (26.0 | ) |  | (0.1 | ) |  | — |  |  | — |  |  | (2.8 | ) |  | (8.3 | ) |  | — |  |  | (37.2 | )
Sales |  | (6.7 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (1.7 | ) |  | — |  |  | (8.4 | )
Balance at End of Period |  | $ | 384.8 |  |  | $ | 7.1 |  |  | $ | 49.5 |  |  | $ | 3.9 |  |  | $ | 36.3 |  |  | $ | 194.4 |  |  | $ | 40.3 |  |  | $ | 716.3 |

X
- Definition Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a,b,bb) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2C -URI http://asc.fasb.org/extlink&oid=36462937&loc=SL7498348-110258 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of quantitative information about the inputs used in the fair value measurement of assets. This disclosure may include, but is not limited to, the fair value of the asset, valuation technique used to measure fair value, the inputs used to measure fair value, the ranges of the inputs, and the weighted averages of the inputs. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueInputsAssetsQuantitativeInformationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration