Income From Investments (Tables)

12 Months Ended

Dec. 31, 2018

Net Investment Income for the years ended December 31, 2018, 2017 and 2016 was:



DOLLARS IN MILLIONS	2018		2017		2016
Investment Income:
Interest on Fixed Income Securities	$	268.9	$	246.6	$	242.7
Dividends on Equity Securities Excluding Alternative Investments	13.6		9.3		11.8
Alternative Investments:
Equity Method Limited Liability Investments	11.0		24.8		7.5
Fair Value Option Investments	—		1.3		(1.9		)
Limited Liability Investments Included in Equity Securities	26.4		28.6		22.0
Total Alternative Investments	37.4		54.7		27.6
Short-term Investments	7.0		1.6		0.5
Loans to Policyholders	22.5		21.6		21.6
Real Estate	9.6		10.7		11.8
Other	0.9		0.5		0.3
Total Investment Income	359.9		345.0		316.3
Investment Expenses:
Real Estate	9.7		10.5		11.0
Other Investment Expenses	9.3		7.3		7.0
Total Investment Expenses	19.0		17.8		18.0
Net Investment Income	$	340.9	$	327.2	$	298.3

Realized Gain (Loss) on Investments

The components of Net Realized Gains on Sales of Investments for the years ended December 31, 2018, 2017 and 2016 were:



DOLLARS IN MILLIONS	2018			2017			2016
Fixed Maturities:
Gains on Sales	$	25.3		$	8.4		$	17.0
Losses on Sales	(11.1		)	(0.9		)	(4.6		)
Equity Securities:
Gains on Sales	12.3			42.0			19.9
Losses on Sales	—			—			(0.3		)
Real Estate:
Gains on Sales	—			6.4			1.1
Other Investments:
Gains on Other Sales	—			0.1			—
Losses on Sales	(0.1		)	(0.1		)	(0.2		)
Net Gains on Trading Securities	—			0.6			0.2
Net Realized Gains on Sales of Investments	$	26.4		$	56.5		$	33.1

Gross Gains on Sales	$	37.6		$	56.9		$	38.0
Gross Losses on Sales	(11.2		)	(1.0		)	(5.1		)
Net Gains on Trading Securities	—			0.6			0.2
Net Realized Gains on Sales of Investments	$	26.4		$	56.5		$	33.1

Other than Temporary Impairment, Credit Losses Recognized in Earnings

The following table sets forth the pre-tax amount of Other Than Temporary Impairments (“OTTI”) credit losses, recognized in Retained Earnings for Investments in Fixed Maturities held by the Company as of December 31, 2018, 2017 and 2016, for which a portion of the OTTI loss related to factors other than credit has been recognized in AOCI, and the corresponding changes in such amounts.



DOLLARS IN MILLIONS	2018			2017			2016
Cumulative Balance of Pre-tax Credit Losses Recognized in Retained Earnings at Beginning of Year	$	1.6		$	1.4		$	5.1
Pre-tax Credit Losses on Fixed Maturities without Pre-tax Credit Losses Included in Cumulative Balance at Beginning of Year	—			1.2			2.7
Reductions for Change in Impairment Status:
From Status of Credit Loss to Status of Intent-to-sell or Required-to-sell	(0.5		)	(0.7		)	(6.3		)
Reductions for Investments Sold During Year	—			(0.3		)	(0.1		)
Balance at End of Year	$	1.1		$	1.6		$	1.4

The components of Net Impairment Losses Recognized in Earnings reported in the Consolidated Statements of Income for the years ended December 31, 2018, 2017 and 2016 were:



DOLLARS IN MILLIONS	2018			2017			2016
Fixed Maturities	$	(2.0	)	$	(12.1	)	$	(26.6	)
Equity Securities	(2.5		)	(2.2		)	(5.6		)
Real Estate	—			—			(0.5		)
Net Impairment Losses Recognized in Earnings	$	(4.5	)	$	(14.3	)	$	(32.7	)