XML 50 R35.htm IDEA: XBRL DOCUMENT v3.19.2
Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets Measured on Recurring Basis
Assets and liabilities measured at fair value on a recurring basis are summarized below (in millions):
June 30, 2019
 
 
 
Fair Value Measurement Using:
 
Total
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
Fixed maturity securities
 
 
 
 
 
 
 
 
U.S. Government and government agencies
 
$
18.5

 
$
4.1

 
$
14.4

 
$
—

States, municipalities and political subdivisions
 
442.5

 
—

 
438.8

 
3.7

Residential mortgage-backed securities
 
80.1

 
—

 
67.6

 
12.5

Commercial mortgage-backed securities
 
106.4

 
—

 
40.0

 
66.4

Asset-backed securities
 
526.2

 
—

 
113.6

 
412.6

Corporate and other
 
2,638.9

 
17.3

 
2,463.5

 
158.1

Total fixed maturity securities
 
3,812.6

 
21.4

 
3,137.9

 
653.3

Equity securities
 
 
 
 
 
 
 
 
Common stocks
 
22.8

 
17.9

 
—

 
4.9

Perpetual preferred stocks
 
120.4

 
7.4

 
55.9

 
57.1

Total equity securities
 
143.2

 
25.3

 
55.9

 
62.0

Total assets accounted for at fair value
 
$
3,955.8

 
$
46.7

 
$
3,193.8

 
$
715.3

Liabilities
 
 
 
 
 
 
 
 
Embedded derivative
 
$
2.9

 
$
—

 
$
—

 
$
2.9

Other
 
5.4

 
—

 
—

 
5.4

Total liabilities accounted for at fair value
 
$
8.3

 
$
—

 
$
—

 
$
8.3

December 31, 2018
 
 
 
Fair Value Measurement Using:
 
Total
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
Fixed maturity securities
 
 
 
 
 
 
 
 
U.S. Government and government agencies
 
$
25.4

 
$
6.1

 
$
19.3

 
$
—

States, municipalities and political subdivisions
 
421.9

 
—

 
421.9

 
—

Residential mortgage-backed securities
 
94.4

 
—

 
75.4

 
19.0

Commercial mortgage-backed securities
 
93.9

 
—

 
35.7

 
58.2

Asset-backed securities
 
511.5

 
—

 
33.3

 
478.2

Corporate and other
 
2,244.5

 
6.6

 
2,152.9

 
85.0

Total fixed maturity securities
 
3,391.6

 
12.7

 
2,738.5

 
640.4

Equity securities
 
 
 
 
 
 
 
 
Common stocks
 
15.0

 
9.1

 
—

 
5.9

Perpetual preferred stocks
 
185.5

 
7.2

 
123.0

 
55.3

Total equity securities
 
200.5

 
16.3

 
123.0

 
61.2

Total assets accounted for at fair value
 
$
3,592.1

 
$
29.0

 
$
2,861.5

 
$
701.6


Liabilities
 
 
 
 
 
 
 
 
Embedded derivative
 
$
8.4

 
$
—

 
$
—

 
$
8.4

Other
 
3.5

 
—

 
—

 
3.5

Total liabilities accounted for at fair value
 
$
11.9

 
$
—

 
$
—

 
$
11.9
Schedule of Changes in Balances of Level 3 Financial Assets at Fair Value
The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three and six months ended June 30, 2019 and 2018 (in millions):
 
 
 
Total realized/unrealized gains (losses) included in
 
 
 
 
 
 
 
 
 
 
Balance at March 31, 2019
Net earnings (loss)
Other comp. income (loss)
Purchases and issuances
Sales and settlements
Transfer to Level 3
 
Transfer out of Level 3
 
Balance at June 30, 2019
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
States, municipalities and political subdivisions
 
$
—

 
$
—

 
$
—

 
$
—

 
$
(0.5
)
 
$
4.2

 
$
—

 
$
3.7

Residential mortgage-backed securities
 
13.1

 
—

 
0.2

 
—

 
(0.5
)
 
—

 
(0.3
)
 
12.5

Commercial mortgage-backed securities
 
61.8

 
—

 
0.6

 
5.1

 
(0.1
)
 
—

 
(1.0
)
 
66.4

Asset-backed securities
 
472.1

 
(1.6
)
 
4.7

 
39.9

 
(102.5
)
 
—

 
—

 
412.6

Corporate and other
 
198.5

 
(0.1
)
 
(6.0
)
 
15.8

 
(12.9
)
 
—

 
(37.2
)
 
158.1

Total fixed maturity securities
 
745.5

 
(1.7
)
 
(0.5
)
 
60.8

 
(116.5
)
 
4.2

 
(38.5
)
 
653.3

Equity securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stocks
 
6.1

 
—

 
—

 
—

 
(1.0
)
 
—

 
(0.2
)
 
4.9

Perpetual preferred stocks
 
55.1

 
(3.4
)
 
—

 
2.5

 
—

 
3.0

 
(0.1
)
 
57.1

Total equity securities
 
61.2

 
(3.4
)
 
—

 
2.5

 
(1.0
)
 
3.0

 
(0.3
)
 
62.0

Total financial assets
 
$
806.7

 
$
(5.1
)
 
$
(0.5
)
 
$
63.3

 
$
(117.5
)
 
$
7.2

 
$
(38.8
)
 
$
715.3

 
 
 
 
Total realized/unrealized (gains) losses included in
 
 
 
 
 
 
 
 
 
 
 
Balance at March 31, 2019
Net (earnings) loss
Other comp. (income) loss
Purchases and issuances
Sales and settlements
 
Transfer to Level 3
 
Transfer out of Level 3
 
Balance at June 30, 2019
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Embedded derivative
 
$
6.1

 
$
(3.2
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
2.9

Other
 
2.7

 
(0.3
)
 
—

 
3.0

 
—

 
—

 
—

 
5.4

Total financial liabilities
 
$
8.8

 
$
(3.5
)
 
$
—

 
$
3.0

 
$
—

 
$
—

 
$
—

 
$
8.3


 
 
 
Total realized/unrealized gains (losses) included in
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2018
Net earnings (loss)
Other comp. income (loss)
Purchases and issuances
Sales and settlements
Transfer to Level 3
 
Transfer out of Level 3
 
Balance at June 30, 2019
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
States, municipalities and political subdivisions
 
$
—

 
$
—

 
$
—

 
$
—

 
$
(0.5
)
 
$
4.2

 
$
—

 
$
3.7

Residential mortgage-backed securities
 
19.0

 
—

 
0.3

 
—

 
(0.8
)
 
—

 
(6.0
)
 
12.5

Commercial mortgage-backed securities
 
58.2

 
—

 
2.1

 
7.5

 
(0.5
)
 
—

 
(0.9
)
 
66.4

Asset-backed securities
 
478.2

 
(1.6
)
 
18.0

 
88.5

 
(176.1
)
 
5.6

 
—

 
412.6

Corporate and other
 
85.0

 
(0.1
)
 
2.3

 
20.4

 
(17.5
)
 
105.0

 
(37.0
)
 
158.1

Total fixed maturity securities
 
640.4

 
(1.7
)
 
22.7

 
116.4

 
(195.4
)
 
114.8

 
(43.9
)
 
653.3

Equity securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stocks
 
5.9

 
0.2

 
—

 
—

 
(1.0
)
 
—

 
(0.2
)
 
4.9

Perpetual preferred stocks
 
55.3

 
(3.7
)
 
—

 
2.5

 
—

 
3.0

 
—

 
57.1

Total equity securities
 
61.2

 
(3.5
)
 
—

 
2.5

 
(1.0
)
 
3.0

 
(0.2
)
 
62.0

Total financial assets
 
$
701.6

 
$
(5.2
)
 
$
22.7

 
$
118.9

 
$
(196.4
)
 
$
117.8

 
$
(44.1
)
 
$
715.3


 
 
 
 
Total realized/unrealized (gains) losses included in
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2018
Net (earnings) loss
Other comp. (income) loss
Purchases and issuances
Sales and settlements
 
Transfer to Level 3
 
Transfer out of Level 3
 
Balance at June 30, 2019
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Embedded derivative
 
$
8.4

 
$
(5.5
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
2.9

Other
 
3.5

 
(1.1
)
 
—

 
3.0

 
—

 
—

 
—

 
5.4

Total financial liabilities
 
$
11.9

 
$
(6.6
)
 
$
—

 
$
3.0

 
$
—

 
$
—

 
$
—

 
$
8.3

 
 
 
 
Total realized/unrealized gains (losses) included in
 
 
 
 
 
 
 
 
 
 
 
Balance at March 31, 2018
Net earnings (loss)
Other comp. income (loss)
Purchases and issuances
Sales and settlements
Transfer to Level 3
Transfer out of Level 3
Balance at June 30, 2018
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
States, municipalities and political subdivisions
 
$
6.4

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
(6.0
)
 
$
0.4

Residential mortgage-backed securities
 
7.2

 
—

 
0.3

 
—

 
(0.8
)
 
5.6

 
—

 
12.3

Commercial mortgage-backed securities
 
17.8

 
—

 
(0.2
)
 
4.5

 
—

 
—

 
—

 
22.1

Asset-backed securities
 
137.9

 
0.5

 
(1.8
)
 
18.5

 
(19.4
)
 
—

 
(2.9
)
 
132.8

Corporate and other
 
37.6

 
—

 
(0.8
)
 
23.9

 
(2.6
)
 
9.1

 
—

 
67.2

Total fixed maturity securities
 
206.9

 
0.5

 
(2.5
)
 
46.9

 
(22.8
)
 
14.7

 
(8.9
)
 
234.8

Equity securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stocks
 
0.6

 
(0.1
)
 
—

 
—

 
—

 
—

 
—

 
0.5

Perpetual preferred stocks
 
23.9

 
0.4

 
—

 
—

 
—

 
—

 
—

 
24.3

Total equity securities
 
24.5

 
0.3

 
—

 
—

 
—

 
—

 
—

 
24.8

Derivatives
 
0.3

 
—

 
—

 
—

 
—

 
—

 
—

 
0.3

Total financial assets
 
$
231.7

 
$
0.8

 
$
(2.5
)
 
$
46.9

 
$
(22.8
)
 
$
14.7

 
$
(8.9
)
 
$
259.9

 
 
 
 
Total realized/unrealized (gains) losses included in
 
 
 
 
 
 
 
 
 
 
 
Balance at March 31, 2018
Net (earnings) loss
Other comp. (income) loss
Purchases and issuances
Sales and settlements
Transfer to Level 3
Transfer out of Level 3
Balance at June 30, 2018
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
$
4.1

 
$
0.1

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
4.2

Total financial liabilities
 
$
4.1

 
$
0.1

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
4.2

 
 
 
 
Total realized/unrealized gains (losses) included in
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2017
Net earnings (loss)
Other comp. income (loss)
Purchases and issuances
Sales and settlements
Transfer to Level 3
Transfer out of Level 3
Balance at June 30, 2018
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
States, municipalities and political subdivisions
 
$
6.0

 
$
—

 
$
(0.1
)
 
$
0.1

 
$
—

 
$
0.4

 
$
(6.0
)
 
$
0.4

Residential mortgage-backed securities
 
14.6

 
0.1

 
0.6

 
—

 
(5.1
)
 
5.5

 
(3.4
)
 
12.3

Commercial mortgage-backed securities
 
12.2

 
(0.1
)
 
(0.3
)
 
10.3

 
—

 
—

 
—

 
22.1

Asset-backed securities
 
133.7

 
1.2

 
(3.2
)
 
68.0

 
(64.0
)
 
—

 
(2.9
)
 
132.8

Corporate and other
 
26.3

 
0.1

 
(0.9
)
 
29.0

 
(3.0
)
 
15.7

 
—

 
67.2

Total fixed maturity securities
 
192.8

 
1.3

 
(3.9
)
 
107.4

 
(72.1
)
 
21.6

 
(12.3
)
 
234.8

Equity securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stocks
 
0.2

 
(0.1
)
 
—

 
—

 
—

 
0.4

 
—

 
0.5

Perpetual preferred stocks
 
6.4

 
0.4

 
—

 
14.9

 
—

 
2.6

 
—

 
24.3

Total equity securities
 
6.6

 
0.3

 
—

 
14.9

 
—

 
3.0

 
—

 
24.8

Derivatives
 
0.3

 
—

 
—

 
—

 
—

 
—

 
—

 
0.3

Total financial assets
 
$
199.7

 
$
1.6

 
$
(3.9
)
 
$
122.3

 
$
(72.1
)
 
$
24.6

 
$
(12.3
)
 
$
259.9

 
 
 
 
Total realized/unrealized (gains) losses included in
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2017
Net (earnings) loss
Other comp. (income) loss
Purchases and issuances
Sales and settlements
Transfer to Level 3
Transfer out of Level 3
Balance at June 30, 2018
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
$
4.8

 
$
(0.6
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
4.2

Total financial liabilities
 
$
4.8

 
$
(0.6
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
4.2
Schedule of Financial Instruments Measured at Fair Value on Nonrecurring Basis
The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments, which were not measured at fair value on a recurring basis. The table excludes carrying amounts for cash and cash equivalents, accounts receivable, accounts payable and other current liabilities, and other assets and liabilities approximate fair value due to relatively short periods to maturity (in millions):
June 30, 2019
 
 
 
 
 
Fair Value Measurement Using:
 
Carrying Value
 
Estimated Fair Value
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
 
 
Mortgage loans
 
$
151.8

 
$
151.8

 
$
—

 
$
—

 
$
151.8

Policy loans
 
19.4

 
19.4

 
—

 
19.4

 
—

Total assets not accounted for at fair value
 
$
171.2

 
$
171.2

 
$
—

 
$
19.4

 
$
151.8

Liabilities
 
 
 
 
 
 
 
 
 
 
Annuity benefits accumulated (1)
 
$
237.8

 
$
235.2

 
$
—

 
$
—

 
$
235.2

Debt obligations (2)
 
789.0

 
758.4

 
—

 
758.4

 
—

Total liabilities not accounted for at fair value
 
$
1,026.8

 
$
993.6

 
$
—

 
$
758.4

 
$
235.2

December 31, 2018
 
 
 
 
 
Fair Value Measurement Using:
 
Carrying Value
 
Estimated Fair Value
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
 
 
Mortgage loans
 
$
137.6

 
$
137.6

 
$
—

 
$
—

 
$
137.6

Policy loans
 
19.8

 
19.8

 
—

 
19.8

 
—

Other invested assets
 
1.6

 
1.6

 
—

 
—

 
1.6

Total assets not accounted for at fair value
 
$
159.0

 
$
159.0

 
$
—

 
$
19.8

 
$
139.2

Liabilities
 
 
 
 
 
 
 
 
 
 
Annuity benefits accumulated (1)
 
$
244.0

 
$
241.7

 
$
—

 
$
—

 
$
241.7

Debt obligations (2)
 
702.5

 
703.0

 
—

 
703.0

 
—

Total liabilities not accounted for at fair value
 
$
946.5

 
$
944.7

 
$
—

 
$
703.0

 
$
241.7

(1) Excludes life contingent annuities in the payout phase.
(2) Excludes certain lease obligations accounted for under ASC 842, Leases.