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Investments (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2020
Debt Securities, Available-for-sale [Line Items] |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at September 30, 2020 by contractual maturity were:
(Dollars in Millions) |  | Amortized Cost |  | Fair Value
Due in One Year or Less |  | $ | 122.6 |  |  | $ | 124.2 |
Due after One Year to Five Years |  | 1,060.5 |  |  | 1,117.0 |
Due after Five Years to Ten Years |  | 1,616.8 |  |  | 1,812.8 |
Due after Ten Years |  | 2,475.7 |  |  | 3,012.0 |
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date |  | 1,419.2 |  |  | 1,438.8 |
Investments in Fixed Maturities |  | $ | 6,694.8 |  |  | $ | 7,504.8 |
Schedule of Unrealized Loss on Investments | An aging of unrealized losses on the Company’s Investments in Fixed Maturities at September 30, 2020 is presented below.
|  | Less Than 12 Months |  | 12 Months or Longer |  | Total
(Dollars in Millions) |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Fixed Maturities: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government and Government Agencies and Authorities |  | $ | 2.3 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2.3 |  |  | $ | — |
States and Political Subdivisions |  | 28.5 |  |  | (1.6) |  |  | — |  |  | — |  |  | 28.5 |  |  | (1.6) |
Foreign Governments |  | 2.5 |  |  | (0.2) |  |  | 2.4 |  |  | (1.0) |  |  | 4.9 |  |  | (1.2) |
Corporate Securities: |  |  |  |  |  |  |  |  |  |  |  |
Bonds and Notes |  | 336.2 |  |  | (15.5) |  |  | 24.7 |  |  | (3.0) |  |  | 360.9 |  |  | (18.5) |
Collateralized Loan Obligations |  | 276.4 |  |  | (11.6) |  |  | 321.0 |  |  | (22.3) |  |  | 597.4 |  |  | (33.9) |
Other Mortgage- and Asset-backed |  | 1.4 |  |  | — |  |  | — |  |  | — |  |  | 1.4 |  |  | — |
Total Fixed Maturities |  | $ | 647.3 |  |  | $ | (28.9) |  |  | $ | 348.1 |  |  | $ | (26.3) |  |  | $ | 995.4 |  |  | $ | (55.2) |
An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2019 is presented below.
|  | Less Than 12 Months |  | 12 Months or Longer |  | Total
(Dollars in Millions) |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Fixed Maturities: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government and Government Agencies and Authorities |  | $ | 118.5 |  |  | $ | (1.3) |  |  | $ | 5.1 |  |  | $ | — |  |  | $ | 123.6 |  |  | $ | (1.3) |
States and Political Subdivisions |  | 63.0 |  |  | (0.7) |  |  | 5.4 |  |  | (0.4) |  |  | 68.4 |  |  | (1.1) |
Foreign Governments |  | 1.0 |  |  | (0.3) |  |  | 3.1 |  |  | (1.3) |  |  | 4.1 |  |  | (1.6) |
Corporate Securities: |  |  |  |  |  |  |  |  |  |  |  |
Bonds and Notes |  | 160.0 |  |  | (2.1) |  |  | 70.7 |  |  | (5.0) |  |  | 230.7 |  |  | (7.1) |
Redeemable Preferred Stocks |  | 5.5 |  |  | (0.1) |  |  | — |  |  | — |  |  | 5.5 |  |  | (0.1) |
Collateralized Loan Obligations |  | 95.5 |  |  | (1.9) |  |  | 355.6 |  |  | (6.6) |  |  | 451.1 |  |  | (8.5) |
Other Mortgage- and Asset-backed |  | 72.8 |  |  | (1.1) |  |  | — |  |  | — |  |  | 72.8 |  |  | (1.1) |
Total Fixed Maturities |  | $ | 516.3 |  |  | $ | (7.5) |  |  | $ | 439.9 |  |  | $ | (13.3) |  |  | $ | 956.2 |  |  | $ | (20.8) |
Allowance for Credit Losses | The following table sets forth the change in allowance for credit losses on fixed maturities available-for-sale by major security type for nine months ended September 30, 2020.
|  |  |  | Foreign Governments |  | Corporate Bonds and Notes |  |  |  | Total
(Dollars in Millions)
Allowance for Credit Losses at Beginning of the Year |  |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |
Impact of Adopting ASU 2016-13 |  |  |  | — |  |  | — |  |  |  |  | — |
Additions for Securities for which No Previous Expected Credit Losses were Recognized |  |  |  | 0.6 |  |  | 5.0 |  |  |  |  | 5.6 |
Reduction Due to Sales |  |  |  | (0.1) |  |  | (0.4) |  |  |  |  | (0.5) |
Net Increase (Decrease) in Allowance on Previously Impaired Securities |  |  |  | 0.1 |  |  | (0.1) |  |  |  |  | — |
Write-offs Charged Against Allowance |  |  |  | — |  |  | (0.3) |  |  |  |  | (0.3) |
Allowance for Credit Losses at End of Period |  |  |  | $ | 0.6 |  |  | $ | 4.2 |  |  |  |  | $ | 4.8 |
Note 2 - Investments (continued) The following table sets forth the change in allowance for credit losses on fixed maturities available-for-sale by major security type for the three months ended September 30, 2020.
|  |  |  | Foreign Governments |  | Corporate Bonds and Notes |  |  |  | Total
(Dollars in Millions)
Allowance for Credit Losses at Beginning of the Period |  |  |  | $ | 0.6 |  |  | $ | 4.8 |  |  |  |  | $ | 5.4 |
Additions for Securities for which No Previous Expected Credit Losses were Recognized |  |  |  | — |  |  | 0.2 |  |  |  |  | 0.2 |
Reduction Due to Sales |  |  |  | (0.1) |  |  | (0.4) |  |  |  |  | (0.5) |
Net Increase (Decrease) in Allowance on Previously Impaired Securities |  |  |  | 0.1 |  |  | (0.1) |  |  |  |  | — |
Write-offs Charged Against Allowance |  |  |  | — |  |  | (0.3) |  |  |  |  | (0.3) |
Allowance for Credit Losses at End of Period |  |  |  | $ | 0.6 |  |  | $ | 4.2 |  |  |  |  | $ | 4.8 |
Schedule of Other Investments | The carrying values of the Company’s Other Investments at September 30, 2020 and December 31, 2019 were:
(Dollars in Millions) |  | Sep 30, 2020 |  | Dec 31, 2019
Company-owned Life Insurance |  | $ | 326.1 |  |  | $ | 217.0 |
Loans to Policyholders at Unpaid Principal |  | 299.5 |  |  | 305.6 |
Real Estate at Depreciated Cost |  | 99.6 |  |  | 111.4 |
Mortgage Loans and Other |  | 37.6 |  |  | 27.5 |
Total |  | $ | 762.8 |  |  | $ | 661.5 |
Investment Income | Net Investment Income for the nine and three months ended September 30, 2020 and 2019 was:
|  | Nine Months Ended |  | Three Months Ended
(Dollars in Millions) |  | Sep 30, 2020 |  | Sep 30, 2019 |  | Sep 30, 2020 |  | Sep 30, 2019
Investment Income (Loss): |  |  |  |  |  |  |  |
Interest on Fixed Income Securities |  | $ | 218.0 |  |  | $ | 225.5 |  |  | $ | 72.7 |  |  | $ | 73.5 |
Dividends on Equity Securities Excluding Alternative Investments |  | 10.7 |  |  | 14.6 |  |  | 2.8 |  |  | 5.2 |
Alternative Investments: |  |  |  |  |  |  |  |
Equity Method Limited Liability Investments |  | (2.7) |  |  | 0.6 |  |  | 8.2 |  |  | 1.6 |
Limited Liability Investments Included in Equity Securities |  | 7.3 |  |  | 12.9 |  |  | 2.4 |  |  | 5.2 |
Total Alternative Investments |  | 4.6 |  |  | 13.5 |  |  | 10.6 |  |  | 6.8 |
Short-term Investments |  | 4.2 |  |  | 6.9 |  |  | 2.3 |  |  | 2.5 |
Loans to Policyholders |  | 16.6 |  |  | 16.9 |  |  | 5.5 |  |  | 5.9 |
Real Estate |  | 7.1 |  |  | 7.1 |  |  | 2.3 |  |  | 2.4 |
Other |  | 9.3 |  |  | 0.9 |  |  | 2.7 |  |  | 0.6 |
Total Investment Income |  | 270.5 |  |  | 285.4 |  |  | 98.9 |  |  | 96.9 |
Investment Expenses: |  |  |  |  |  |  |  |
Real Estate |  | 6.5 |  |  | 7.2 |  |  | 1.2 |  |  | 2.5 |
Other Investment Expenses |  | 18.5 |  |  | 7.8 |  |  | 5.6 |  |  | 2.7 |
Total Investment Expenses |  | 25.0 |  |  | 15.0 |  |  | 6.8 |  |  | 5.2 |
Net Investment Income |  | $ | 245.5 |  |  | $ | 270.4 |  |  | $ | 92.1 |  |  | $ | 91.7 |
Schedule of Realized Gain (Loss) | Gross gains and losses on sales of investments in fixed maturities for the nine and three months ended September 30, 2020 and 2019 were:
|  | Nine Months Ended |  | Three Months Ended
(Dollars in Millions) |  | Sep 30, 2020 |  | Sep 30, 2019 |  | Sep 30, 2020 |  | Sep 30, 2019
Fixed Maturities: |  |  |  |  |  |  |  |
Gains on Sales |  | $ | 38.7 |  |  | $ | 39.7 |  |  | $ | 11.9 |  |  | $ | 1.9 |
Losses on Sales |  | (3.5) |  |  | (4.8) |  |  | (1.9) |  |  | (0.3) |
Investments in Fixed Maturities |
Debt Securities, Available-for-sale [Line Items] |
Schedule of Available-for-sale Securities Reconciliation | The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at September 30, 2020 were:
|  | Amortized Cost |  | Gross Unrealized |  | Allowance for Expected Credit Losses |  | Fair Value
(Dollars in Millions) |  | Gains |  | Losses
U.S. Government and Government Agencies and Authorities |  | $ | 596.6 |  |  | $ | 56.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 652.8 |
States and Political Subdivisions |  | 1,334.3 |  |  | 178.9 |  |  | (1.6) |  |  | — |  |  | 1,511.6 |
Foreign Governments |  | 6.7 |  |  | — |  |  | (1.2) |  |  | (0.6) |  |  | 4.9 |
Corporate Securities: |  |  |  |  |  |  |  |  |  |
Bonds and Notes |  | 3,786.8 |  |  | 611.6 |  |  | (18.5) |  |  | (4.2) |  |  | 4,375.7 |
Redeemable Preferred Stocks |  | 6.7 |  |  | 0.6 |  |  | — |  |  | — |  |  | 7.3 |
Collateralized Loan Obligations |  | 759.5 |  |  | 1.8 |  |  | (33.9) |  |  | — |  |  | 727.4 |
Other Mortgage- and Asset-backed |  | 204.2 |  |  | 20.9 |  |  | — |  |  | — |  |  | 225.1 |
Investments in Fixed Maturities |  | $ | 6,694.8 |  |  | $ | 870.0 |  |  | $ | (55.2) |  |  | $ | (4.8) |  |  | $ | 7,504.8 |
The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2019 were:
|  | Amortized Cost |  | Gross Unrealized |  | Fair Value
(Dollars in Millions) |  | Gains |  | Losses |
U.S. Government and Government Agencies and Authorities |  | $ | 784.7 |  |  | $ | 32.5 |  |  | $ | (1.3) |  |  | $ | 815.9 |
States and Political Subdivisions |  | 1,386.4 |  |  | 130.5 |  |  | (1.1) |  |  | 1,515.8 |
Foreign Governments |  | 17.2 |  |  | 1.2 |  |  | (1.6) |  |  | 16.8 |
Corporate Securities: |  |  |  |  |  |  |  |
Bonds and Notes |  | 3,465.0 |  |  | 401.8 |  |  | (7.1) |  |  | 3,859.7 |
Redeemable Preferred Stocks |  | 6.8 |  |  | — |  |  | (0.1) |  |  | 6.7 |
Collateralized Loan Obligations |  | 624.6 |  |  | 2.1 |  |  | (8.5) |  |  | 618.2 |
Other Mortgage- and Asset-backed |  | 88.0 |  |  | 2.1 |  |  | (1.1) |  |  | 89.0 |
Investments in Fixed Maturities |  | $ | 6,372.7 |  |  | $ | 570.2 |  |  | $ | (20.8) |  |  | $ | 6,922.1 |

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