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Investments (Tables)

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of Components of Net Investment

The components of net investment income for the following periods were as follows:

($ in millions)						Three Months Ended September 30,												Nine Months Ended September 30,
						2023						2022						2023						2022
Fixed maturity securities						$	68.7					$	63.9					$	201.6					$	184.5
Equity securities						1.3						1.8						4.7						7.1
Limited partnership interests						20.5						5.1						40.6						31.3
Short-term and other investments						4.6						2.8						11.6						8.2
Investment expenses						(3.3)						(2.7)						(9.5)						(7.8)
Net investment income - investment portfolio						91.8						70.9						249.0						223.3
Investment income - deposit asset on reinsurance						27.1						26.7						78.8						77.4
Total net investment income						$	118.9					$	97.6					$	327.8					$	300.7

Schedule of Net Investment Gains (Losses)

Net investment gains (losses) for the following periods were as follows:

($ in millions)						Three Months Ended September 30,												Nine Months Ended September 30,
						2023						2022						2023						2022
Fixed maturity securities						$	(3.4)					$	(10.7)					$	(20.5)					$	(15.9)
Equity securities						(2.1)						(4.4)						(6.6)						(32.5)
Short-term investments and other						(2.9)						2.3						(2.6)						4.6
Net investment losses						$	(8.4)					$	(12.8)					$	(29.7)					$	(43.8)

The breakdown of net investment gains (losses) by transaction type for the following periods were as follows:

($ in millions)						Three Months Ended September 30,												Nine Months Ended September 30,
						2023						2022						2023						2022
Credit loss impairments						$	—					$	(0.6)					$	(0.5)					$	(2.8)
Intent-to-sell impairments						(0.6)						(6.2)						(6.7)						(7.6)
Total impairments						(0.6)						(6.8)						(7.2)						(10.4)
Sales and other, net						(3.5)						(3.9)						(25.2)						(3.9)
Change in fair value - equity securities						(1.4)						(4.4)						5.3						(34.1)
Change in fair value and gains (losses) realized on settlements - derivatives						(2.9)						2.3						(2.6)						4.6
Net investment losses						$	(8.4)					$	(12.8)					$	(29.7)					$	(43.8)

Schedule of Allowance for Credit Loss Impairments on Fixed Maturity Securities

The following table presents changes in the allowance for credit loss impairments on fixed maturity securities classified as available for sale for the category of other asset-backed securities (no other categories of fixed maturity securities have an allowance for credit loss impairments):

($ in millions)						Three Months Ended September 30,												Nine Months Ended September 30,
						2023						2022						2023						2022
Beginning balance						$	1.2					$	9.5					$	1.2					$	7.7
Credit losses on fixed maturity securities for which credit losses were not previously reported						—						—						0.5						—
Net increase related to credit losses previously reported						—						0.6						—						2.8
Reduction of credit allowances related to sales						—						—						—						—
Write-offs						—						—						(0.5)						(0.4)
Ending balance						$	1.2					$	10.1					$	1.2					$	10.1

Schedule of Available-for-sale Securities Reconciliation

Amortized cost, net, gross unrealized investment gains (losses) and fair values of all fixed maturity securities in the portfolio were as follows:

($ in millions)						Amortized Cost, net						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
September 30, 2023
Fixed maturity securities
U.S. Government and federally sponsored agency obligations:(1)
Mortgage-backed securities						$	687.2					$	0.5					$	97.2					$	590.5
Other, including U.S. Treasury securities						449.6						0.3						85.0						364.9
Municipal bonds						1,334.1						11.2						159.8						1,185.5
Foreign government bonds						26.1						—						1.6						24.5
Corporate bonds						1,982.7						7.2						304.6						1,685.3
Other asset-backed securities						1,161.9						3.6						54.6						1,110.9
Totals						$	5,641.6					$	22.8					$	702.8					$	4,961.6
December 31, 2022
Fixed maturity securities
U.S. Government and federally sponsored agency obligations:(1)
Mortgage-backed securities						$	638.2					$	1.3					$	69.1					$	570.4
Other, including U.S. Treasury securities						410.0						0.5						67.8						342.7
Municipal bonds						1,380.9						16.9						128.1						1,269.7
Foreign government bonds						35.1						—						1.6						33.5
Corporate bonds						2,161.2						12.7						272.2						1,901.7
Other asset-backed securities						1,131.5						3.6						68.1						1,067.0
Totals						$	5,756.9					$	35.0					$	606.9					$	5,185.0

(1)    Fair value includes securities issued by Federal National Mortgage Association (FNMA) of $323.6 million and $330.8 million; Federal Home Loan Mortgage Corporation (FHLMC) of $305.8 million and $273.3 million; and Government National Mortgage Association (GNMA) of $78.4 million and $86.2 million as of September 30, 2023 and December 31, 2022, respectively.

Schedule of Fair Value and Gross Unrealized Losses of Fixed Maturity Securities and Equity Securities in an Unrealized Loss Position

($ in millions)						12 Months or Less												More than 12 Months												Total
						Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses
September 30, 2023
Fixed maturity securities
U.S. Government and federally sponsored agency obligations:
Mortgage-backed securities						$	137.1					$	5.3					$	438.2					$	91.9					$	575.3					$	97.2
Other						91.9						3.7						268.5						81.3						360.4						85.0
Municipal bonds						331.1						13.7						729.9						146.1						1,061.0						159.8
Foreign government bonds						1.4						0.1						23.1						1.5						24.5						1.6
Corporate bonds						204.9						18.6						1,120.8						286.0						1,325.7						304.6
Other asset-backed securities						135.1						2.6						804.4						52.0						939.5						54.6
Total						$	901.5					$	44.0					$	3,384.9					$	658.8					$	4,286.4					$	702.8
Number of positions with a    gross unrealized loss						669												2,474												3,143
Fair value as a percentage of total fixed    maturity securities at fair value						18.2		%										68.2		%										86.4		%
December 31, 2022
Fixed maturity securities
U.S. Government and federally sponsored agency obligations:
Mortgage-backed securities						$	458.3					$	54.4					$	52.6					$	14.7					$	510.9					$	69.1
Other						242.7						34.1						65.8						33.7						308.5						67.8
Municipal bonds						911.6						113.7						42.2						14.4						953.8						128.1
Foreign government bonds						32.7						1.4						0.4						0.2						33.1						1.6
Corporate bonds						1,345.0						221.1						148.9						51.1						1,493.9						272.2
Other asset-backed securities						543.4						37.1						424.3						31.0						967.7						68.1
Total						$	3,533.7					$	461.8					$	734.2					$	145.1					$	4,267.9					$	606.9
Number of positions with a    gross unrealized loss						2,515												587												3,102
Fair value as a percentage of total fixed    maturity securities at fair value						68.2		%										14.2		%										82.4		%

Schedule of Distribution of the Company's Fixed Maturity Portfolio by Estimated Expected Maturity

With regards to fixed maturity securities that had gross unrealized losses more than 12 months, the number of positions by their respective credit ratings were as follows:

						Number of Positions
						September 30, 2023						December 31, 2022
Credit Rating
AAA						241						67
AA						1,030						217
A						434						94
BBB						474						93
BB						159						68
B						64						31
CCC or lower						7						2
Not rated						65						15
Totals:						2,474						587

The following table presents the distribution of the Company’s fixed maturity securities portfolio by estimated expected maturity. Estimated expected maturities differ from contractual maturities, reflecting assumptions regarding borrowers' utilization of the right to call or prepay obligations with or without call or prepayment penalties. For structured securities, estimated expected maturities consider broker-dealer survey prepayment assumptions and are verified for consistency with the interest rate and economic environments.

($ in millions)						Percent of Total Fair Value												September 30, 2023
						September 30, 2023						December 31, 2022						Fair Value						Amortized Cost, net
Estimated expected maturity:
Due in 1 year or less						5.6		%				4.4		%				$	278.3					$	287.8
Due after 1 year through 5 years						27.1						26.3						1,343.4						1,420.7
Due after 5 years through 10 years						27.4						27.9						1,357.3						1,480.7
Due after 10 years through 20 years						23.9						25.0						1,187.1						1,417.8
Due after 20 years						16.0						16.4						795.5						1,034.6
Total						100.0		%				100.0		%				$	4,961.6					$	5,641.6
Average option-adjusted duration, in years						6.1						6.4

Schedule of Proceeds Received From Sales of Fixed Maturities and Equity Securities

Proceeds received from sales of fixed maturity and equity securities, each determined using the specific identification method, and gross gains and gross losses realized as a result of those sales for each period were as follows:

($ in millions)						Three Months Ended September 30,												Nine Months Ended September 30,
						2023						2022						2023						2022
Fixed maturity securities
Proceeds received						$	135.2					$	164.6					$	341.4					$	529.9
Gross gains realized						1.4						1.1						2.0						4.7
Gross losses realized						(2.8)						(5.0)						(13.9)						(10.2)
Equity securities
Proceeds received						$	6.8					$	0.2					$	16.6					$	6.0
Gross gains realized						—						—						—						1.7
Gross losses realized						(0.5)						—						(11.8)						(0.1)

Schedule of Reconciliation of Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities and Equity Securities

The following table reconciles net unrealized investment gains (losses) on fixed maturity securities, net of tax, included in AOCI:

($ in millions)						Three Months Ended September 30,												Nine Months Ended September 30,
						2023						2022						2023						2022
Net unrealized investment gains (losses)    on fixed maturity securities, net of tax
Beginning of period						$	(393.7)					$	(281.8)					$	(449.6)					$	347.1
Change in net unrealized investment gains    (losses) on fixed maturity securities						(143.7)						(223.4)						(101.3)						(856.5)
Reclassification of net investment losses    on fixed maturity securities to net income						2.7						8.4						16.2						12.6
End of period						$	(534.7)					$	(496.8)					$	(534.7)					$	(496.8)

Schedule of Carrying Amounts of Equity Method Limited Partnership Interests

The carrying amounts of EMA limited partnership interests were as follows:

($ in millions)
						September 30, 2023						December 31, 2022
Commercial mortgage loan funds						$	671.6					$	593.6
Real estate equity funds						111.2						71.3
Private equity funds						83.9						76.3
Infrastructure equity funds						77.9						72.0
Infrastructure debt funds						63.4						60.0
Other funds(1)						134.6						110.5
Total						$	1,142.6					$	983.7

(1)Other funds consist primarily of limited partnership interests in corporate mezzanine, venture capital and private credit funds.

Schedule of Offsetting Assets and Liability

The following table presents instruments that were subject to a master netting arrangement for the Company.

($ in millions)												Gross Amounts Offset in the Consolidated Balance Sheets						Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheets						Gross Amounts Not Offset in the Consolidated Balance Sheets
						Gross Amounts																		Financial Instruments						Cash Collateral Received						Net Amount
September 30, 2023
Asset derivatives:
Free-standing derivatives						$	9.3					$	—					$	9.3					$	—					$	9.2					$	0.1
December 31, 2022
Asset derivatives:
Free-standing derivatives						$	6.8					$	—					$	6.8					$	—					$	5.9					$	0.9

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