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Investments | 9 Months Ended
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Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract] |
Investments | Investments Fixed Maturities The amortized cost and fair values of the Company’s Investments in Fixed Maturities at September 30, 2025 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 |  | $ | 673.4 |  |  | $ | 3.2 |  |  | $ | (84.7) |  |  | $ | — |  |  | $ | 591.9 |
States and Political Subdivisions |  | 1,435.6 |  |  | 2.2 |  |  | (194.5) |  |  | (0.1) |  |  | 1,243.2 |
Foreign Governments |  | 12.1 |  |  | 0.2 |  |  | (0.3) |  |  | — |  |  | 12.0 |
Corporate Securities: |  |  |  |  |  |  |  |  |  |
Bonds and Notes |  | 3,982.7 |  |  | 22.1 |  |  | (417.2) |  |  | (13.4) |  |  | 3,574.2 |
Redeemable Preferred Stocks |  | 9.8 |  |  | 0.5 |  |  | — |  |  | — |  |  | 10.3 |
Collateralized Loan Obligations |  | 823.8 |  |  | 2.8 |  |  | (6.5) |  |  | (2.2) |  |  | 817.9 |
Other Mortgage- and Asset-backed |  | 394.3 |  |  | 1.3 |  |  | (24.8) |  |  | — |  |  | 370.8 |
Investments in Fixed Maturities |  | $ | 7,331.7 |  |  | $ | 32.3 |  |  | $ | (728.0) |  |  | $ | (15.7) |  |  | $ | 6,620.3 |
The amortized cost and fair values of the Company’s Investments in Fixed Maturities at December 31, 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 |  | $ | 588.6 |  |  | $ | 0.6 |  |  | $ | (102.4) |  |  | $ | — |  |  | $ | 486.8 |
States and Political Subdivisions |  | 1,457.3 |  |  | 1.6 |  |  | (225.4) |  |  | (0.3) |  |  | 1,233.2 |
Foreign Governments |  | 6.5 |  |  | 0.3 |  |  | (0.2) |  |  | — |  |  | 6.6 |
Corporate Securities: |  |  |  |  |  |  |  |  |  |
Bonds and Notes |  | 4,038.3 |  |  | 8.9 |  |  | (518.8) |  |  | (8.8) |  |  | 3,519.6 |
Redeemable Preferred Stocks |  | 9.8 |  |  | 0.1 |  |  | (1.0) |  |  | — |  |  | 8.9 |
Collateralized Loan Obligations |  | 747.8 |  |  | 2.5 |  |  | (7.2) |  |  | (1.6) |  |  | 741.5 |
Other Mortgage- and Asset-backed |  | 446.7 |  |  | 0.8 |  |  | (34.5) |  |  | — |  |  | 413.0 |
Investments in Fixed Maturities |  | $ | 7,295.0 |  |  | $ | 14.8 |  |  | $ | (889.5) |  |  | $ | (10.7) |  |  | $ | 6,409.6 |
Note 6 - Investments (Continued) Other Receivables included $4.2 million and $1.8 million of unsettled sales of Investments in Fixed Maturities at September 30, 2025 and December 31, 2024, respectively. There were $7.8 million and $11.6 million of unsettled purchases of Investments in Fixed Maturities included in Accrued Expenses and Other Liabilities as of September 30, 2025 and December 31, 2024, respectively. The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at September 30, 2025 by contractual maturity were:
(Dollars in Millions) |  | Amortized Cost |  | Fair Value
Due in One Year or Less |  | $ | 228.2 |  |  | $ | 225.8 |
Due after One Year to Five Years |  | 925.2 |  |  | 894.4 |
Due after Five Years to Ten Years |  | 920.7 |  |  | 839.7 |
Due after Ten Years |  | 3,497.9 |  |  | 3,001.5 |
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date |  | 1,759.7 |  |  | 1,658.9 |
Investments in Fixed Maturities |  | $ | 7,331.7 |  |  | $ | 6,620.3 |
The expected maturities of the Company’s Investments in Fixed Maturities may differ from the contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Investments in Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date at September 30, 2025 consisted of securities issued by the Government National Mortgage Association with a fair value of $326.1 million, securities issued by the Federal National Mortgage Association with a fair value of $85.4 million, securities issued by the Federal Home Loan Mortgage Corporation with a fair value of $58.7 million and securities of other non-governmental issuers with a fair value of $1,188.7 million. An aging of unrealized losses on the Company’s Investments in Fixed Maturities at September 30, 2025 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 |  | $ | 3.2 |  |  | $ | — |  |  | $ | 382.4 |  |  | $ | (84.7) |  |  | $ | 385.6 |  |  | $ | (84.7) |
States and Political Subdivisions |  | 178.5 |  |  | (6.6) |  |  | 971.5 |  |  | (187.9) |  |  | 1,150.0 |  |  | (194.5) |
Foreign Governments |  | 3.7 |  |  | (0.1) |  |  | 0.4 |  |  | (0.2) |  |  | 4.1 |  |  | (0.3) |
Corporate Securities: |  |  |  |  |  |  |  |  |  |  |  |
Bonds and Notes |  | 538.0 |  |  | (21.3) |  |  | 2,472.6 |  |  | (395.9) |  |  | 3,010.6 |  |  | (417.2) |
Redeemable Preferred Stocks |  | — |  |  | — |  |  | 2.0 |  |  | — |  |  | 2.0 |  |  | — |
Collateralized Loan Obligations |  | 57.0 |  |  | (0.5) |  |  | 68.8 |  |  | (6.0) |  |  | 125.8 |  |  | (6.5) |
Other Mortgage- and Asset-backed |  | 13.4 |  |  | — |  |  | 247.6 |  |  | (24.8) |  |  | 261.0 |  |  | (24.8) |
Total Fixed Maturities |  | $ | 793.8 |  |  | $ | (28.5) |  |  | $ | 4,145.3 |  |  | $ | (699.5) |  |  | $ | 4,939.1 |  |  | $ | (728.0) |
Investment-grade fixed maturity investments comprised $708.0 million and below-investment-grade fixed maturity investments comprised $20.0 million of the unrealized losses on investments in fixed maturities at September 30, 2025. For below-investment-grade fixed maturity investments in an unrealized loss position, the unrealized loss amount, on average, was approximately 4.4% of the amortized cost basis of the investment. Note 6 - Investments (Continued) An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 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 |  | $ | 41.7 |  |  | $ | (0.5) |  |  | $ | 383.6 |  |  | $ | (101.9) |  |  | $ | 425.3 |  |  | $ | (102.4) |
States and Political Subdivisions |  | 242.7 |  |  | (10.3) |  |  | 933.4 |  |  | (215.1) |  |  | 1,176.1 |  |  | (225.4) |
Foreign Governments |  | — |  |  | — |  |  | 1.4 |  |  | (0.2) |  |  | 1.4 |  |  | (0.2) |
Corporate Securities: |  |  |  |  |  |  |  |  |  |  |  |
Bonds and Notes |  | 674.3 |  |  | (40.9) |  |  | 2,605.7 |  |  | (477.9) |  |  | 3,280.0 |  |  | (518.8) |
Redeemable Preferred Stocks |  | 2.0 |  |  | — |  |  | 6.6 |  |  | (1.0) |  |  | 8.6 |  |  | (1.0) |
Collateralized Loan Obligations |  | 34.2 |  |  | (0.1) |  |  | 89.5 |  |  | (7.1) |  |  | 123.7 |  |  | (7.2) |
Other Mortgage- and Asset-backed |  | 12.0 |  |  | (0.1) |  |  | 261.7 |  |  | (34.4) |  |  | 273.7 |  |  | (34.5) |
Total Fixed Maturities |  | $ | 1,006.9 |  |  | $ | (51.9) |  |  | $ | 4,281.9 |  |  | $ | (837.6) |  |  | $ | 5,288.8 |  |  | $ | (889.5) |
Investment-grade fixed maturity investments comprised $875.3 million and below-investment-grade fixed maturity investments comprised $14.2 million of the unrealized losses on investments in fixed maturities at December 31, 2024. For below-investment-grade fixed maturity investments in an unrealized loss position, the unrealized loss amount, on average, was approximately 4.9% of the amortized cost basis of the investment. Fixed Maturities - Expected 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, 2025. Accrued interest excluded from the amortized cost of fixed maturities total $73.5 million and $70.9 million as of September 30, 2025 and December 31, 2024, respectively, and is reported within the Other Receivables line of the Condensed Consolidated Balance Sheets. 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 |  | $ | 0.3 |  |  | $ | 10.4 |  |  | $ | 10.7 |
Additions for Securities for which No Previous Expected Credit Losses were Recognized |  | — |  |  | 2.1 |  |  | 2.1 |
Reductions Due to Sales |  | — |  |  | (0.4) |  |  | (0.4) |
Net (Decrease) Increase in Allowance on Securities for which Expected Credit Losses were Previously Recognized |  | (0.2) |  |  | 4.7 |  |  | 4.5 |
Write-Offs Charged Against Allowance |  | — |  |  | (1.2) |  |  | (1.2) |
Balance, End of Period |  | $ | 0.1 |  |  | $ | 15.6 |  |  | $ | 15.7 |
Note 6 - 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 nine months ended September 30, 2024.
|  | 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 |  | — |  |  | 2.0 |  |  | 2.0 |
Reductions Due to Sales |  | — |  |  | (0.8) |  |  | (0.8) |
Net (Decrease) Increase in Allowance on Securities for which Expected Credit Losses were Previously Recognized |  | (0.3) |  |  | 0.4 |  |  | 0.1 |
Balance, End of Period |  | $ | 0.2 |  |  | $ | 9.3 |  |  | $ | 9.5 |
Equity Securities Investments in Equity Securities at Fair Value were $302.0 million and $218.5 million at September 30, 2025 and December 31, 2024, respectively. Net unrealized losses arising during the nine months ended September 30, 2025 and 2024 and recognized in earnings, related to such investments still held as of September 30, 2025 and September 30, 2024, were $2.3 million and $2.3 million, respectively. There were no unsettled purchases or sales of Investments in Equity Securities at Fair Value at September 30, 2025. As of December 31, 2024, there were no unsettled purchases and $0.3 million in unsettled sales of Investments in Equity Securities at Fair Value. Equity Method Limited Liability Investments Equity Method Limited Liability Investments include investments in limited liability investment companies and limited partnerships in which the Company’s interests are not deemed minor and are accounted for under the equity method of accounting. The Company’s investments in Equity Method Limited Liability Investments are generally of a passive nature in that the Company does not take an active role in the management of the investment entity. The Company’s maximum exposure to loss at September 30, 2025 is limited to the total carrying value of $174.9 million. In addition, the Company had outstanding commitments totaling approximately $102.6 million to fund Equity Method Limited Liability Investments at September 30, 2025. At September 30, 2025, 3.0% of Equity Method Limited Liability Investments were reported without a reporting lag, 2.0% of the total carrying value were reported with a one-month lag, and the remainder were reported with a greater than one-month but less than or equal to three-month lag. There were no unsettled purchases or sales of Equity Method Limited Liability Investments as of September 30, 2025 or December 31, 2024. Unsettled purchases and sales of Equity Method Limited Liability Investments are carried within Accrued Expenses and Other Liabilities and Other Receivables, respectively, on the Condensed Consolidated Balance Sheets. Loans to Policyholders Loans to Policyholders represents funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. Interest income on policy loans is recognized in Net Investment Income at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. The carrying values of the Company’s Loans to Policyholders at Unpaid Principal investment at September 30, 2025 and December 31, 2024 were $279.3 million and $280.7 million, respectively. Note 6 - Investments (Continued) Other Investments The carrying values of the Company’s Other Investments at September 30, 2025 and December 31, 2024 were:
(Dollars in Millions) |  | Sep 30, 2025 |  | Dec 31, 2024
Equity Securities at Modified Cost |  | $ | 22.2 |  |  | $ | 22.5 |
Real Estate at Depreciated Cost |  | 93.3 |  |  | 99.5 |
Mortgage Loans |  | 148.2 |  |  | 75.3 |
Alternative Energy Partnership Investments |  | 17.4 |  |  | 17.6 |
Other |  | 5.9 |  |  | 2.2 |
Total Other Investments |  | $ | 287.0 |  |  | $ | 217.1 |
Investments in Equity Securities at Modified Cost were $22.2 million and $22.5 million at September 30, 2025 and December 31, 2024, respectively. The Company performs a qualitative impairment analysis on a quarterly basis consisting of various factors such as earnings performance, current market conditions, changes in credit ratings, changes in the regulatory environment and other factors. If the qualitative analysis identifies the presence of impairment indicators, the Company estimates the fair value of the investment. If the estimated fair value is below the carrying value, the Company records an impairment in the Condensed Consolidated Statements of (Loss) Income to reduce the carrying value to the estimated fair value. When the Company identifies observable transactions of the same or similar securities to those held by the Company, the Company increases or decreases the carrying value to the observable transaction price. The Company did not recognize any changes in carrying value due to observable transactions for the nine months ended September 30, 2025 and 2024. The Company did not recognize any impairment on Equity Securities at Modified Cost for the nine months ended September 30, 2025 as a result of the Company’s impairment analysis. The Company recognized an impairment of $0.4 million on Equity Securities at Modified Cost for nine months ended September 30, 2024 as a result of the Company’s impairment analysis. As of September 30, 2025 and December 31, 2024, the Company recognized no cumulative increases or decreases in the carrying value due to observable transactions and $3.2 million of cumulative impairments on Equity Securities at Modified Cost. Alternative Energy Partnership Investments include partnerships formed to invest in newly installed residential solar leases and power purchase agreements. As a result of this investment, the Company has the right to certain investment tax credits and tax depreciation benefits, and to a lesser extent, cash flows generated from the installed solar systems leased to individual consumers for a fixed period of time. The Hypothetical Liquidation Book Value (“HLBV”) equity method of accounting is used for the Company’s investments in Alternative Energy Partnership Investments. The Company’s maximum exposure to loss at September 30, 2025 is limited to the total carrying value of $17.4 million. The Company has no outstanding commitments to fund Alternative Energy Partnership Investments as of September 30, 2025. Alternative Energy Partnership Investments are reported on a three-month lag. Note 6 - Investments (Continued) Net Investment Income Net Investment Income for the three and nine months ended September 30, 2025 and 2024 was:
|  | Three Months Ended |  | Nine Months Ended
(Dollars in Millions) |  | Sep 30, 2025 |  | Sep 30, 2024 |  | Sep 30, 2025 |  | Sep 30, 2024
Investment Income: |  |  |  |  |  |  |  |
Interest on Fixed Maturities 1 |  | $ | 79.1 |  |  | $ | 79.0 |  |  | $ | 232.4 |  |  | $ | 239.0 |
Dividends on Equity Securities Excluding Alternative Investments |  | 2.1 |  |  | 0.9 |  |  | 3.6 |  |  | 4.6 |
Alternative Investments: |  |  |  |  |  |  |  |
Equity Method Limited Liability Investments |  | — |  |  | 0.9 |  |  | (6.0) |  |  | (15.9) |
Limited Liability Investments Included in Equity Securities |  | 4.0 |  |  | 9.1 |  |  | 10.8 |  |  | 18.7 |
Total Alternative Investments |  | 4.0 |  |  | 10.0 |  |  | 4.8 |  |  | 2.8 |
Short-term Investments |  | 4.2 |  |  | 8.4 |  |  | 18.8 |  |  | 23.0 |
Loans to Policyholders |  | 5.2 |  |  | 5.5 |  |  | 15.6 |  |  | 15.8 |
Real Estate |  | 2.5 |  |  | 2.2 |  |  | 7.0 |  |  | 6.7 |
Company-Owned Life Insurance |  | 10.8 |  |  | 9.7 |  |  | 31.5 |  |  | 25.7 |
Other |  | 3.1 |  |  | 2.2 |  |  | 8.4 |  |  | 7.3 |
Total Investment Income |  | 111.0 |  |  | 117.9 |  |  | 322.1 |  |  | 324.9 |
Investment Expenses: |  |  |  |  |  |  |  |
Real Estate |  | 2.0 |  |  | 1.8 |  |  | 6.3 |  |  | 6.1 |
Other Investment Expenses |  | 4.2 |  |  | 5.0 |  |  | 13.9 |  |  | 14.3 |
Total Investment Expenses |  | 6.2 |  |  | 6.8 |  |  | 20.2 |  |  | 20.4 |
Net Investment Income |  | $ | 104.8 |  |  | $ | 111.1 |  |  | $ | 301.9 |  |  | $ | 304.5 |
1 Reduced by interest expense incurred on FHLB borrowings used for spread lending purposes of $4.7 million and $4.8 million for the three months ended September 30, 2025 and 2024, respectively, and $14.3 million and $15.4 million for the nine months ended September 30, 2025 and 2024, respectively.
The components of Net Realized Investment Gains for the three and nine months ended September 30, 2025 and 2024 are presented below:
|  | Three Months Ended |  | Nine Months Ended
(Dollars in Millions) |  | Sep 30, 2025 |  | Sep 30, 2024 |  | Sep 30, 2025 |  | Sep 30, 2024
Fixed Maturities: |  |  |  |  |  |  |  |
Gains on Sales |  | $ | 3.7 |  |  | $ | 0.9 |  |  | $ | 5.4 |  |  | $ | 15.9 |
Losses on Sales |  | (0.5) |  |  | — |  |  | (1.5) |  |  | (2.6) |
Losses on Hedging Activity 1 |  | — |  |  | — |  |  | — |  |  | (7.9) |
Equity Securities: |  |  |  |  |  |  |  |
Gains on Sales |  | 0.5 |  |  | — |  |  | 0.5 |  |  | 4.1 |
Losses on Sales |  | — |  |  | — |  |  | — |  |  | (0.1) |
Other Investments: |  |  |  |  |  |  |  |
Gains on Sales |  | 0.2 |  |  | 1.8 |  |  | 0.3 |  |  | 3.3 |
Losses on Sales |  | — |  |  | (1.6) |  |  | — |  |  | (3.5) |
Net Realized Investment Gains |  | $ | 3.9 |  |  | $ | 1.1 |  |  | $ | 4.7 |  |  | $ | 9.2 |
1 Includes Ultra-Long Treasury Future derivative securities which do not qualify for hedge accounting treatment.

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