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Investments (Tables) | 6 Months Ended
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Jun. 30, 2024
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 June 30, 2024 by contractual maturity were:
(Dollars in Millions) |  | Amortized Cost |  | Fair Value
Due in One Year or Less |  | $ | 278.2 |  |  | $ | 272.4 |
Due after One Year to Five Years |  | 828.4 |  |  | 799.4 |
Due after Five Years to Ten Years |  | 1,076.1 |  |  | 931.9 |
Due after Ten Years |  | 3,593.5 |  |  | 3,038.8 |
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date |  | 1,770.7 |  |  | 1,632.2 |
Investments in Fixed Maturities |  | $ | 7,546.9 |  |  | $ | 6,674.7 |
Schedule of Unrealized Loss on Investments | An aging of unrealized losses on the Company’s Investments in Fixed Maturities at June 30, 2024 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 |  | $ | 23.7 |  |  | $ | (0.2) |  |  | $ | 404.6 |  |  | $ | (99.9) |  |  | $ | 428.3 |  |  | $ | (100.1) |
States and Political Subdivisions |  | 224.0 |  |  | (5.9) |  |  | 963.9 |  |  | (209.5) |  |  | 1,187.9 |  |  | (215.4) |
Foreign Governments |  | 0.7 |  |  | — |  |  | 1.6 |  |  | (0.5) |  |  | 2.3 |  |  | (0.5) |
Corporate Securities: |  |  |  |  |  |  |  |  |  |  |  |
Bonds and Notes |  | 595.1 |  |  | (22.9) |  |  | 2,780.8 |  |  | (487.0) |  |  | 3,375.9 |  |  | (509.9) |
Redeemable Preferred Stocks |  | 3.2 |  |  | (0.1) |  |  | 6.4 |  |  | (1.1) |  |  | 9.6 |  |  | (1.2) |
Collateralized Loan Obligations |  | 124.5 |  |  | (0.2) |  |  | 158.5 |  |  | (12.3) |  |  | 283.0 |  |  | (12.5) |
Other Mortgage- and Asset-backed |  | 53.9 |  |  | (0.1) |  |  | 291.7 |  |  | (40.7) |  |  | 345.6 |  |  | (40.8) |
Total Fixed Maturities |  | $ | 1,025.1 |  |  | $ | (29.4) |  |  | $ | 4,607.5 |  |  | $ | (851.0) |  |  | $ | 5,632.6 |  |  | $ | (880.4) |
An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2023 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 |  | $ | 52.0 |  |  | $ | (0.8) |  |  | $ | 401.6 |  |  | $ | (83.7) |  |  | $ | 453.6 |  |  | $ | (84.5) |
States and Political Subdivisions |  | 112.9 |  |  | (2.3) |  |  | 928.3 |  |  | (187.5) |  |  | 1,041.2 |  |  | (189.8) |
Foreign Governments |  | — |  |  | — |  |  | 1.9 |  |  | (0.6) |  |  | 1.9 |  |  | (0.6) |
Corporate Securities: |  |  |  |  |  |  |  |  |  |  |  |
Bonds and Notes |  | 198.4 |  |  | (5.5) |  |  | 2,813.0 |  |  | (378.3) |  |  | 3,011.4 |  |  | (383.8) |
Redeemable Preferred Stocks |  | — |  |  | — |  |  | 7.9 |  |  | (0.8) |  |  | 7.9 |  |  | (0.8) |
Collateralized Loan Obligations |  | 38.8 |  |  | (0.4) |  |  | 747.7 |  |  | (24.1) |  |  | 786.5 |  |  | (24.5) |
Other Mortgage- and Asset-backed |  | 15.7 |  |  | (0.1) |  |  | 287.3 |  |  | (46.2) |  |  | 303.0 |  |  | (46.3) |
Total Fixed Maturities |  | $ | 417.8 |  |  | $ | (9.1) |  |  | $ | 5,187.7 |  |  | $ | (721.2) |  |  | $ | 5,605.5 |  |  | $ | (730.3) |
Schedule of Other Investments | The carrying values of the Company’s Other Investments at June 30, 2024 and December 31, 2023 were:
(Dollars in Millions) |  | Jun 30, 2024 |  | Dec 31, 2023
Equity Securities at Modified Cost |  | $ | 24.8 |  |  | $ | 32.6 |
Real Estate at Depreciated Cost |  | 93.6 |  |  | 94.7 |
Mortgage Loans |  | 83.1 |  |  | 99.8 |
Other |  | 0.9 |  |  | 14.8 |
Total Other Investments |  | $ | 202.4 |  |  | $ | 241.9 |
Debt Securities, Available-for-Sale, Allowance for Credit Loss | The Company monitors accrued interest and writes off amounts when they are not expected to be received.
|  | States and Political Subdivisions |  |  |  | Corporate Bonds and Notes |  |  |  | Total
(Dollars in Millions)
Balance, Beginning of Year |  | $ | 0.5 |  |  |  |  | $ | 7.7 |  |  |  |  | $ | 8.2 |
Additions for Securities for which No Previous Expected Credit Losses were Recognized |  | — |  |  |  |  | 0.4 |  |  |  |  | 0.4 |
Reductions Due to Sales |  | — |  |  |  |  | (0.7) |  |  |  |  | (0.7) |
Net Decrease in Allowance on Securities for which Expected Credit Losses were Previously Recognized |  | (0.2) |  |  |  |  | (0.2) |  |  |  |  | (0.4) |
Balance, End of Period |  | $ | 0.3 |  |  |  |  | $ | 7.2 |  |  |  |  | $ | 7.5 |
The following table sets forth the change in allowance for credit losses on fixed maturities available-for-sale by major security type for the six months ended June 30, 2023.
|  | States and Political Subdivisions |  | Corporate Bonds and Notes |  |  |  | Total
(Dollars in Millions)
Balance, Beginning of Year |  | $ | 0.7 |  |  | $ | 8.9 |  |  |  |  | $ | 9.6 |
Additions for Securities for which No Previous Expected Credit Losses were Recognized |  | — |  |  | 0.7 |  |  |  |  | 0.7 |
Reductions Due to Sales |  | — |  |  | (1.9) |  |  |  |  | (1.9) |
Net Decrease in Allowance on Securities for which Expected Credit Losses were Previously Recognized |  | — |  |  | (1.0) |  |  |  |  | (1.0) |
Write-offs Charged Against Allowance |  | (0.3) |  |  | — |  |  |  |  | (0.3) |
Balance, End of Period |  | $ | 0.4 |  |  | $ | 6.7 |  |  |  |  | $ | 7.1 |
Investment Income | Net Investment Income for the three and six months ended June 30, 2024 and 2023 was:
|  | Three Months Ended |  | Six Months Ended
(Dollars in Millions) |  | Jun 30, 2024 |  | Jun 30, 2023 |  | Jun 30, 2024 |  | Jun 30, 2023
Investment Income: |  |  |  |  |  |  |  |
Interest on Fixed Income Securities 1,2 |  | $ | 80.2 |  |  | $ | 79.6 |  |  | $ | 160.0 |  |  | $ | 161.1 |
Dividends on Equity Securities Excluding Alternative Investments |  | 0.9 |  |  | 1.2 |  |  | 3.7 |  |  | 2.2 |
Alternative Investments: |  |  |  |  |  |  |  |
Equity Method Limited Liability Investments |  | (14.7) |  |  | 2.8 |  |  | (16.8) |  |  | 3.9 |
Limited Liability Investments Included in Equity Securities |  | 6.2 |  |  | 6.3 |  |  | 9.6 |  |  | 8.9 |
Total Alternative Investments |  | (8.5) |  |  | 9.1 |  |  | (7.2) |  |  | 12.8 |
Short-term Investments |  | 7.3 |  |  | 3.6 |  |  | 14.6 |  |  | 5.9 |
Loans to Policyholders |  | 5.1 |  |  | 5.1 |  |  | 10.3 |  |  | 10.5 |
Real Estate |  | 2.2 |  |  | 1.9 |  |  | 4.5 |  |  | 4.3 |
Company-Owned Life Insurance |  | 8.9 |  |  | 7.4 |  |  | 16.0 |  |  | 16.2 |
Other |  | 2.6 |  |  | 5.3 |  |  | 5.1 |  |  | 8.3 |
Total Investment Income |  | 98.7 |  |  | 113.2 |  |  | 207.0 |  |  | 221.3 |
Investment Expenses: |  |  |  |  |  |  |  |
Real Estate |  | 2.1 |  |  | 2.2 |  |  | 4.3 |  |  | 4.3 |
Other Investment Expenses 1,2 |  | 3.6 |  |  | 4.7 |  |  | 9.3 |  |  | 8.9 |
Total Investment Expenses |  | 5.7 |  |  | 6.9 |  |  | 13.6 |  |  | 13.2 |
Net Investment Income |  | $ | 93.0 |  |  | $ | 106.3 |  |  | $ | 193.4 |  |  | $ | 208.1 |
1 In the first quarter of 2024, the Company changed its presentation of the details of investment performance to report interest expense incurred on Federal Home Loan Bank ("FHLB") borrowings as an offset to interest on fixed income securities since FHLB borrowings are used for spread lending purposes. The interest expense incurred on FHLB borrowings was previously reported within Other Investment Expenses. The prior period amounts presented above have been updated to reflect this change in presentation.
2 Reduced by interest expense incurred on FHLB borrowings used for spread lending purposes of $5.4 million and $7.5 million for the three months ended June 30, 2024 and 2023, respectively, and $10.6 million and $12.2 million for the six months ended June 30, 2024 and 2023, respectively.
Schedule of Realized Gain (Loss) | Gross gains and losses on sales of investments in fixed maturities and gains and losses associated with Ultra-Long Treasury Futures for the three and six months ended June 30, 2024 and 2023 were:
|  | Three Months Ended |  | Six Months Ended
(Dollars in Millions) |  | Jun 30, 2024 |  | Jun 30, 2023 |  | Jun 30, 2024 |  | Jun 30, 2023
Fixed Maturities: |  |  |  |  |  |  |  |
Gains on Sales |  | $ | 2.2 |  |  | $ | 0.4 |  |  | $ | 15.0 |  |  | $ | 1.5 |
Losses on Sales |  | (0.3) |  |  | (6.0) |  |  | (2.6) |  |  | (9.3) |
(Losses) Gains on Hedging Activity |  | — |  |  | (8.7) |  |  | (7.9) |  |  | (0.3) |
Investments in Fixed Maturities |
Debt Securities, Available-for-sale [Line Items] |
Schedule of Available-for-sale Securities Reconciliation | The amortized cost and fair values of the Company’s Investments in Fixed Maturities at June 30, 2024 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 |  | $ | 574.9 |  |  | $ | 0.7 |  |  | $ | (100.1) |  |  | $ | — |  |  | $ | 475.5 |
States and Political Subdivisions |  | 1,550.9 |  |  | 4.5 |  |  | (215.4) |  |  | (0.3) |  |  | 1,339.7 |
Foreign Governments |  | 5.1 |  |  | — |  |  | (0.5) |  |  | — |  |  | 4.6 |
Corporate Securities: |  |  |  |  |  |  |  |  |  |
Bonds and Notes |  | 4,095.4 |  |  | 8.3 |  |  | (509.9) |  |  | (7.2) |  |  | 3,586.6 |
Redeemable Preferred Stocks |  | 11.0 |  |  | 0.1 |  |  | (1.2) |  |  | — |  |  | 9.9 |
Collateralized Loan Obligations |  | 896.4 |  |  | 2.0 |  |  | (12.5) |  |  | — |  |  | 885.9 |
Other Mortgage- and Asset-backed |  | 413.2 |  |  | 0.1 |  |  | (40.8) |  |  | — |  |  | 372.5 |
Investments in Fixed Maturities |  | $ | 7,546.9 |  |  | $ | 15.7 |  |  | $ | (880.4) |  |  | $ | (7.5) |  |  | $ | 6,674.7 |
The amortized cost and fair values of the Company’s Investments in Fixed Maturities at December 31, 2023 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 |  | $ | 594.1 |  |  | $ | 1.9 |  |  | $ | (84.5) |  |  | $ | — |  |  | $ | 511.5 |
States and Political Subdivisions |  | 1,575.9 |  |  | 16.3 |  |  | (189.8) |  |  | (0.5) |  |  | 1,401.9 |
Foreign Governments |  | 4.4 |  |  | — |  |  | (0.6) |  |  | — |  |  | 3.8 |
Corporate Securities: |  |  |  |  |  |  |  |  |  |
Bonds and Notes |  | 4,046.8 |  |  | 35.5 |  |  | (383.8) |  |  | (7.7) |  |  | 3,690.8 |
Redeemable Preferred Stocks |  | 9.0 |  |  | 0.1 |  |  | (0.8) |  |  | — |  |  | 8.3 |
Collateralized Loan Obligations |  | 973.6 |  |  | 0.7 |  |  | (24.5) |  |  | — |  |  | 949.8 |
Other Mortgage- and Asset-backed |  | 362.0 |  |  | 0.1 |  |  | (46.3) |  |  | — |  |  | 315.8 |
Investments in Fixed Maturities |  | $ | 7,565.8 |  |  | $ | 54.6 |  |  | $ | (730.3) |  |  | $ | (8.2) |  |  | $ | 6,881.9 |

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