Investments (Tables)
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3 Months Ended |
Mar. 31, 2023 |
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| Investments, Debt and Equity Securities [Abstract] |
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| Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value of Investments |
The amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit losses, and fair value of fixed maturity investments were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2023 | | | | | | | | | | | | (in millions) | | Amortized
Cost | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | Allowance for Credit Losses | | Fair
Value | | Fixed maturities | | | | | | | | | | | | U.S. Governments | | $ | 412.5 | | | $ | — | | | $ | 24.6 | | | $ | — | | | $ | 387.9 | | | Foreign Governments | | 35.8 | | | 0.4 | | | 7.2 | | | 0.8 | | | 28.2 | | | Obligations of states and political subdivisions | | 109.0 | | | 0.6 | | | 8.3 | | | 0.4 | | | 100.9 | | | Corporate bonds | | 1,360.5 | | | 1.1 | | | 140.7 | | | 1.4 | | | 1,219.5 | | | Commercial mortgage-backed securities | | 335.2 | | | — | | | 50.4 | | | — | | | 284.8 | | | Residential mortgage-backed securities | | 314.1 | | | 0.2 | | | 46.1 | | | — | | | 268.2 | | | Asset-backed securities | | 149.3 | | | — | | | 12.1 | | | 0.1 | | | 137.1 | | | Collateralized loan obligations | | 253.4 | | | 0.4 | | | 16.0 | | | — | | | 237.8 | | | Total fixed maturities | | $ | 2,969.8 | | | $ | 2.7 | | | $ | 305.4 | | | $ | 2.7 | | | $ | 2,664.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | | | | | | | | | | | | (in millions) | | Amortized
Cost | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | Allowance for Credit Losses | | Fair
Value | | Fixed maturities | | | | | | | | | | | | U.S. Governments | | $ | 410.9 | | | $ | — | | | $ | 30.2 | | | $ | — | | | $ | 380.7 | | | Foreign Governments | | 35.6 | | | 0.3 | | | 6.7 | | | 0.8 | | | 28.4 | | | Obligations of states and political subdivisions | | 109.9 | | | 0.4 | | | 10.1 | | | 0.4 | | | 99.8 | | | Corporate bonds | | 1,394.8 | | | 0.9 | | | 160.0 | | | 1.6 | | | 1,234.1 | | | Commercial mortgage-backed securities | | 337.4 | | | — | | | 52.0 | | | — | | | 285.4 | | | Residential mortgage-backed securities | | 320.0 | | | 0.2 | | | 50.2 | | | — | | | 270.0 | | | Asset-backed securities | | 153.4 | | | — | | | 14.2 | | | — | | | 139.2 | | | Collateralized loan obligations | | 254.4 | | | 0.3 | | | 16.8 | | | — | | | 237.9 | | | Total fixed maturities | | $ | 3,016.4 | | | $ | 2.1 | | | $ | 340.2 | | | $ | 2.8 | | | $ | 2,675.5 | |
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| Schedule of Amortized Cost and Fair Values of Fixed Maturity Investments, by Contractual Maturity |
The amortized cost and fair values of fixed maturity investments as of March 31, 2023, by contractual maturity, were as follows: | | | | | | | | | | | | | | | | (in millions) | | Amortized
Cost | | Fair
Value | | Due in one year or less | | $ | 84.1 | | | $ | 83.0 | | | Due after one year through five years | | 1,276.3 | | | 1,179.1 | | | Due after five years through ten years | | 509.4 | | | 435.5 | | | Due after ten years | | 48.0 | | | 38.9 | | | Structured securities | | 1,052.0 | | | 927.9 | | | Total | | $ | 2,969.8 | | | $ | 2,664.4 | |
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| Schedule of Carrying Value and Unfunded Investment Commitments of Other Invested Assets Portfolio |
Details regarding the carrying value and unfunded investment commitments of other investments as of March 31, 2023 and December 31, 2022 were as follows: | | | | | | | | | | | | | | | | March 31, 2023 | | | | | | (in millions) | | Carrying
Value | | Unfunded
Commitments | | Investment Type | | | | | | Hedge funds | | $ | 54.7 | | | $ | — | | | Private equity | | 263.7 | | | 107.3 | | | | | | | | | | | | | Other | | 4.6 | | | — | | | Total other investments | | $ | 323.0 | | | $ | 107.3 | |
| | | | | | | | | | | | | | | | December 31, 2022 | | | | | | (in millions) | | Carrying
Value | | Unfunded
Commitments | | Investment Type | | | | | | Hedge funds | | $ | 54.0 | | | $ | — | | | Private equity | | 264.6 | | | 108.9 | | | | | | | | Other | | 4.6 | | | — | | | Total other investments | | $ | 323.2 | | | $ | 108.9 | |
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| Unrealized Gain (Loss) on Investments |
An aging of unrealized losses on our investments in fixed maturities is presented below: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2023 | | Less Than One Year | | One Year or Greater | | Total | | (in millions) | | Fair
Value | | Unrealized
Losses | | Fair
Value | | Unrealized
Losses | | Fair
Value | | Unrealized
Losses | | Fixed maturities | | | | | | | | | | | | | | U.S. Governments | | $ | 17.3 | | | $ | 0.4 | | | $ | 370.1 | | | $ | 24.2 | | | $ | 387.4 | | | $ | 24.6 | | | Foreign Governments | | 13.1 | | | 2.4 | | | 7.3 | | | 4.8 | | | 20.4 | | | 7.2 | | | Obligations of states and political subdivisions | | 23.3 | | | 1.0 | | | 66.4 | | | 7.3 | | | 89.7 | | | 8.3 | | | Corporate bonds | | 169.9 | | | 11.1 | | | 1,027.8 | | | 129.6 | | | 1,197.7 | | | 140.7 | | | Commercial mortgage-backed securities | | 29.1 | | | 2.6 | | | 255.6 | | | 47.8 | | | 284.7 | | | 50.4 | | | Residential mortgage-backed securities | | 26.9 | | | 1.5 | | | 238.7 | | | 44.6 | | | 265.6 | | | 46.1 | | | Asset-backed securities | | 43.8 | | | 1.9 | | | 93.1 | | | 10.2 | | | 136.9 | | | 12.1 | | | Collateralized loan obligations | | 48.4 | | | 2.8 | | | 177.0 | | | 13.2 | | | 225.4 | | | 16.0 | | | Total fixed maturities | | $ | 371.8 | | | $ | 23.7 | | | $ | 2,236.0 | | | $ | 281.7 | | | $ | 2,607.8 | | | $ | 305.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | | Less Than One Year | | One Year or Greater | | Total | | (in millions) | | Fair
Value | | Unrealized
Losses | | Fair
Value | | Unrealized
Losses | | Fair
Value | | Unrealized
Losses | | Fixed maturities | | | | | | | | | | | | | | U.S. Governments | | $ | 271.0 | | | $ | 18.1 | | | $ | 109.8 | | | $ | 12.1 | | | $ | 380.8 | | | $ | 30.2 | | | Foreign Governments | | 16.7 | | | 4.9 | | | 2.6 | | | 1.8 | | | 19.3 | | | 6.7 | | | Obligations of states and political subdivisions | | 67.4 | | | 4.1 | | | 24.3 | | | 6.0 | | | 91.7 | | | 10.1 | | | Corporate bonds | | 695.1 | | | 68.3 | | | 519.6 | | | 91.7 | | | 1,214.7 | | | 160.0 | | | Commercial mortgage-backed securities | | 144.2 | | | 18.6 | | | 141.2 | | | 33.4 | | | 285.4 | | | 52.0 | | | Residential mortgage-backed securities | | 88.7 | | | 8.8 | | | 178.8 | | | 41.4 | | | 267.5 | | | 50.2 | | | Asset-backed securities | | 93.3 | | | 7.5 | | | 45.9 | | | 6.7 | | | 139.2 | | | 14.2 | | | Collateralized loan obligations | | 181.1 | | | 13.3 | | | 44.2 | | | 3.5 | | | 225.3 | | | 16.8 | | | Total fixed maturities | | $ | 1,557.5 | | | $ | 143.6 | | | $ | 1,066.4 | | | $ | 196.6 | | | $ | 2,623.9 | | | $ | 340.2 | |
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| Debt Securities, Available-for-sale, Allowance for Credit Loss |
The following table presents a roll-forward of the changes in allowance for credit losses on available-for-sale fixed maturities by industry category for the three months ending March 31, 2023 and 2022, respectively: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in millions) | | Foreign Governments | | Obligations of states and political subdivisions | | Corporate bonds | | Asset backed securities | | Total | | Beginning balance, January 1, 2023 | | $ | 0.7 | | | $ | 0.4 | | | $ | 1.6 | | | $ | 0.1 | | | $ | 2.8 | | | | | | | | | | | | | | Securities for which allowance was not previously recorded | | — | | | — | | | 0.2 | | | — | | | 0.2 | | | Securities sold during the period | | — | | | — | | | (0.3) | | | — | | | (0.3) | | | Reductions for credit impairments | | — | | | — | | | — | | | — | | | — | | | Additional net increases (decreases) in existing allowance | | 0.1 | | | — | | | (0.1) | | | — | | | — | | | Ending balance, March 31, 2023 | | $ | 0.8 | | | $ | 0.4 | | | $ | 1.4 | | | $ | 0.1 | | | $ | 2.7 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in millions) | | Foreign Governments | | Obligations of states and political subdivisions | | Corporate bonds | | Asset backed securities | | Total | | Beginning balance, January 1, 2022 | | $ | 0.2 | | | $ | — | | | $ | 2.2 | | | $ | 0.1 | | | $ | 2.5 | | | | | | | | | | | | | | Securities for which allowance was not previously recorded | | 0.1 | | | — | | | 0.4 | | | — | | | 0.5 | | | Securities sold during the period | | — | | | — | | | (0.6) | | | — | | | (0.6) | | | Additional net increases (decreases) in existing allowance | | — | | | 0.4 | | | 0.1 | | | — | | | 0.5 | | | Ending balance, March 31, 2022 | | $ | 0.3 | | | $ | 0.4 | | | $ | 2.1 | | | $ | 0.1 | | | $ | 2.9 | |
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| Schedule of Accounts, Notes, Loans and Financing Receivable |
The following table presents loans by property type: | | | | | | | | | | | | | | | | | | | | | | | March 31, 2023 | | (in millions) | | Cost | | Composition | | Loan Count | | Apartments | | $ | 87.4 | | | 54.7 | % | | 16 | | Hotel | | 25.0 | | 15.6 | % | | 4 | | Industrial | | 26.0 | | 16.3 | % | | 4 | | Retail | | 21.5 | | 13.4 | % | | 4 | | Total | | $ | 159.9 | | | 100.0 | % | | 28 | |
| | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | | (in millions) | | Cost | | Composition | | Loan Count | | Apartments | | $ | 87.4 | | | 54.5 | % | | 16 | | Hotel | | 25.0 | | 15.6 | % | | 4 | | Industrial | | 26.0 | | 16.3 | % | | 4 | | Retail | | 21.5 | | 13.6 | % | | 4 | | Total | | $ | 159.9 | | | 100.0 | % | | 28 | |
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| Financing Receivable Credit Quality Indicators |
The following table presents our loans by Debt Service Coverage Ratio (“DSCR”): | | | | | | | | | | | | | | | | | March 31, 2023 | | (in millions) | | Cost | | Loan Count | | 1.00 to 1.50 | | $ | 30.4 | | | 6 | | Greater than 1.5 to 2.0 | | 71.7 | | 12 | | Greater than 2.0 to 3.0 | | 32.0 | | 6 | | Greater than 3.0 to 4.0 | | 25.8 | | 4 | | Greater than 4.0 | | 0.0 | | 0 | | Total | | $ | 159.9 | | | 28 |
| | | | | | | | | | | | | | | | | December 31, 2022 | | (in millions) | | Cost | | Loan Count | | 1.00 to 1.50 | | $ | 10.4 | | | 2 | | Greater than 1.5 to 2.0 | | 60.4 | | 10 | | Greater than 2.0 to 3.0 | | 52.0 | | 10 | | Greater than 3.0 to 4.0 | | 25.8 | | 4 | | Greater than 4.0 | | 11.3 | | 2 | | Total | | $ | 159.9 | | | 28 |
The following table presents loans by Loan To Value (“LTV”): | | | | | | | | | | | | | | | | | March 31, 2023 | | (in millions) | | Cost | | Loan Count | | Equal to or less than 50.0% | | $ | 36.7 | | | 6 | | Greater than 50.0% to 55.0% | | 9.1 | | 2 | | Greater than 55.0% to 60.0% | | 42.6 | | 8 | | Greater than 60.0% to 70.0% | | 61.5 | | 10 | | Greater than 70.0% | | 10.0 | | | 2 | | | Total | | $ | 159.9 | | | 28 |
| | | | | | | | | | | | | | | | | December 31, 2022 | | (in millions) | | Cost | | Loan Count | | Equal to or less than 50.0% | | $ | 36.7 | | | 6 | | Greater than 50.0% to 55.0% | | 9.1 | | 2 | | Greater than 55.0% to 60.0% | | 42.6 | | 8 | | Greater than 60.0% to 70.0% | | 71.5 | | 12 | | | | | | | Total | | $ | 159.9 | | | 28 |
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| Financing Receivable, before Allowance for Credit Loss, Maturity |
The following table presents loans by maturity: | | | | | | | | | | | | | | | | | March 31, 2023 | | (in millions) | | Cost | | Loan Count | | One Year or Less | | $ | 10.0 | | | 2 | | Greater than One Year and Less than Three | | 44.8 | | | 8 | | | Greater than Three Years and Less than Five Years | | 33.8 | | 6 | | Greater than Five Years and Less than Seven Years | | 20.4 | | 4 | | Greater than Seven Years and Less than Ten Years | | 50.9 | | 8 | | | | | | | Total | | $ | 159.9 | | | 28 |
| | | | | | | | | | | | | | | | | December 31, 2022 | | (in millions) | | Cost | | Loan Count | | | | | | | Greater than One Year and Less than Three | | $ | 54.8 | | | 10 | | | Greater than Three Years and Less than Five Years | | 33.8 | | 6 | | Greater than Five Years and Less than Seven Years | | 20.4 | | 4 | | Greater than Seven Years and Less than Ten Years | | 50.9 | | 8 | | | | | | | Total | | $ | 159.9 | | | 28 |
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| Schedule of Company's Gross Realized Investment Gains (Losses) |
The following table presents our gross realized investment gains and losses: | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended
March 31, | | (in millions) | | | | | | 2023 | | 2022 | | Realized gains on fixed maturities and other: | | | | | | | | | | Fixed maturities | | | | | | $ | 0.2 | | | $ | 11.2 | | | Other investments, including short-term investments | | | | | | 7.8 | | | 1.5 | | | Other assets | | | | | | — | | | — | | | Total realized gains on fixed maturities and other | | | | | | 8.0 | | | 12.7 | | | | | | | | | | | | Realized losses on fixed maturities and other: | | | | | | | | | | Fixed maturities | | | | | | (22.4) | | | (16.6) | | | Other investments, including short-term investments | | | | | | (5.8) | | | (6.8) | | | Other assets | | | | | | — | | | — | | | Total realized losses on fixed maturities and other | | | | | | (28.2) | | | (23.4) | | | | | | | | | | | | | | | | | | | | | Other net losses recognized on fixed maturities and other: | | | | | | | | | | Credit losses on fixed maturities | | | | | | (0.6) | | | (1.0) | | | Impairment related to change in intent | | | | | | — | | | — | | Other(1) | | | | | | (3.6) | | | (28.5) | | | Total other net losses recognized on fixed maturities and other | | | | | | (4.2) | | | (29.5) | | | | | | | | | | | | Equity securities: | | | | | | | | | | Net realized gains (losses) on equity securities | | | | | | 0.3 | | | (1.0) | | | Change in unrealized gains (losses) on equity securities held at the end of the period | | | | | | 6.2 | | | 6.7 | | | Net gains (losses) on equity securities | | | | | | 6.5 | | | 5.7 | | | | | | | | | | | | Net investment and other gains (losses) before income taxes | | | | | | (17.9) | | | (34.5) | | | Income tax (benefit) provision | | | | | | (5.1) | | | (0.7) | | | Net investment and other gains (losses), net of income taxes | | | | | | $ | (12.8) | | | $ | (33.8) | |
(1) For the three months ended March 31, 2022, refer to the sale Argo Seguros in Note 1, “Business and Significant Accounting Policies” for additional information.
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| Schedule of Changes in Unrealized Appreciation (Depreciation) |
Changes in unrealized gains (losses) related to fixed maturity investments are summarized as follows: | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended
March 31, | | (in millions) | | | | | | 2023 | | 2022 | | Change in unrealized gains (losses) | | | | | | | | | | Fixed maturities | | | | | | $ | 55.5 | | | $ | (177.9) | | | | | | | | | | | | | | | | | | | | | Other and short-term investments | | | | | | (0.1) | | | 0.1 | | | Net unrealized investment gains (losses) before income taxes | | | | | | 55.4 | | | (177.8) | | | Income tax provision (benefit) | | | | | | 9.9 | | | (33.9) | | | Net unrealized investment gains (losses), net of income taxes | | | | | | $ | 45.5 | | | $ | (143.9) | |
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| Schedule of Fair Value of Foreign Currency Exchange Forward Contracts |
The fair value of our foreign currency exchange forward contracts as of March 31, 2023 and December 31, 2022 was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2023 | | December 31, 2022 | | (in millions) | | Notional Amount | | Fair Value | | Notional Amount | | Fair Value | | Operational currency exposure | | $ | 125.7 | | | $ | 1.7 | | | $ | 148.2 | | | $ | 5.8 | | | Asset manager investment exposure | | 42.1 | | | (0.9) | | | 135.0 | | | (0.6) | | | | | | | | | | | | Total | | $ | 167.8 | | | $ | 0.8 | | | $ | 283.2 | | | $ | 5.2 | |
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| Schedule of Realized Gains and Losses of Investment on Foreign Currency Exchange Forward Contracts |
The following table represents our gross realized investment gains and losses on our foreign currency exchange forward contracts: | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended
March 31, | | (in millions) | | | | | | 2023 | | 2022 | | Realized gains | | | | | | | | | | Operational currency exposure | | | | | | $ | 4.1 | | | $ | 2.5 | | | Asset manager investment exposure | | | | | | — | | | 1.1 | | | | | | | | | | | | Gross realized investment gains | | | | | | $ | 4.1 | | | 3.6 | | | Realized losses | | | | | | | | | | Operational currency exposure | | | | | | (3.1) | | | (8.8) | | | Asset manager investment exposure | | | | | | (0.3) | | | — | | | | | | | | | | | | Gross realized investment losses | | | | | | (3.4) | | | (8.8) | | Net realized investment (losses) gains on foreign currency exchange forward contracts | | | | | | $ | 0.7 | | | $ | (5.2) | |
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| Schedule of Restricted Assets |
The following table presents our components of restricted assets: | | | | | | | | | | | | | | | | (in millions) | | March 31, 2023 | | December 31, 2022 | | Securities on deposit for regulatory and other purposes | | $ | 142.8 | | | $ | 149.3 | | | Securities pledged as collateral for letters of credit and other | | 120.9 | | | 169.8 | | Securities on deposit supporting Lloyd’s business (1) | | 173.9 | | | 171.4 | | | Total restricted investments | | $ | 437.6 | | | $ | 490.5 | |
(1) Argo Group is required to maintain Funds at Lloyd’s (“FAL”) to support its business for Syndicate 1200 and Syndicate 1910. At March 31, 2023 the amount of securities pledged for FAL was $173.9 million, which was provided by Argo Re, Ltd. The Company expects the FAL to be released in the second quarter of 2023, due to the sale of AUA, subject to regulatory approval. Refer to the sale of AUA in Note 1, “Business and Significant Accounting Policies” for additional information.
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| Financial Assets Measured at Fair Value on Recurring Basis |
Based on an analysis of the inputs, our financial assets and liabilities measured at fair value on a recurring basis have been categorized as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements at Reporting Date Using | | (in millions) | | March 31,
2023 | | Level 1 (1) | | Level 2 (2) | | Level 3 (3) | | Fixed maturities | | | | | | | | | | U.S. Governments | | $ | 387.9 | | | $ | 385.8 | | | $ | 2.1 | | | $ | — | | | Foreign Governments | | 28.2 | | | — | | | 28.2 | | | — | | | Obligations of states and political subdivisions | | 100.9 | | | — | | | 100.9 | | | — | | | Corporate bonds | | 1,219.5 | | | — | | | 1,197.5 | | | 22.0 | | | Commercial mortgage-backed securities | | 284.8 | | | — | | | 284.8 | | | — | | | Residential mortgage-backed securities | | 268.2 | | | — | | | 268.2 | | | — | | | Asset-backed securities | | 137.1 | | | — | | | 118.9 | | | 18.2 | | | Collateralized loan obligations | | 237.8 | | | — | | | 237.8 | | | — | | | Total fixed maturities | | 2,664.4 | | | 385.8 | | | 2,238.4 | | | 40.2 | | | Equity securities | | 44.2 | | | 36.0 | | | — | | | 8.2 | | | Other investments | | 0.3 | | | — | | | 0.3 | | | — | | | Short-term investments | | 694.6 | | | 694.3 | | | 0.3 | | | — | | | Derivatives | | 0.8 | | | — | | | 0.8 | | | — | | | Total assets | | $ | 3,404.3 | | | $ | 1,116.1 | | | $ | 2,239.8 | | | $ | 48.4 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Quoted prices in active markets for identical assets (2) Significant other observable inputs (3) Significant unobservable inputs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements at Reporting Date Using | | (in millions) | | December 31,
2022 | | Level 1 (1) | | Level 2 (2) | | Level 3 (3) | | Fixed maturities | | | | | | | | | | U.S. Governments | | $ | 380.7 | | | $ | 378.7 | | | $ | 2.0 | | | $ | — | | | Foreign Governments | | 28.4 | | | — | | | 28.4 | | | — | | | Obligations of states and political subdivisions | | 99.8 | | | — | | | 99.8 | | | — | | | Corporate bonds | | 1,234.1 | | | — | | | 1,212.1 | | | 22.0 | | | Commercial mortgage-backed securities | | 285.4 | | | — | | | 285.4 | | | — | | | Residential mortgage-backed securities | | 270.0 | | | — | | | 270.0 | | | — | | | Asset-backed securities | | 139.2 | | | — | | | 120.5 | | | 18.7 | | | Collateralized loan obligations | | 237.9 | | | — | | | 237.9 | | | — | | | Total fixed maturities | | 2,675.5 | | | 378.7 | | | 2,256.1 | | | 40.7 | | | Equity securities | | 43.9 | | | 28.4 | | | — | | | 15.5 | | | Other investments | | 0.3 | | | — | | | 0.3 | | | — | | | Short-term investments | | 449.6 | | | 449.3 | | | 0.3 | | | — | | | Derivatives | | 5.2 | | | — | | | 5.2 | | | — | | | Total assets | | $ | 3,174.5 | | | $ | 856.4 | | | $ | 2,261.9 | | | $ | 56.2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) Quoted prices in active markets for identical assets (2) Significant other observable inputs (3) Significant unobservable inputs
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| Schedule of Reconciliation of Beginning and Ending Balances for Investments Categorized as Level 3 |
A reconciliation of the beginning and ending balances for the investments categorized as Level 3 are as follows: Fair Value Measurements Using Unobservable Inputs (Level 3) | | | | | | | | | | | | | | | | | | | | | | | | (in millions) | | Credit Financial | | Equity
Securities | | | | Total | | Beginning balance, January 1, 2023 | | $ | 40.7 | | | $ | 15.5 | | | | | $ | 56.2 | | | Transfers into Level 3 | | — | | | — | | | | | — | | | Transfers out of Level 3 | | — | | | (7.6) | | | | | (7.6) | | | Total gains or losses (realized/unrealized): | | | | | | | | | | Included in net income | | — | | | 0.3 | | | | | 0.3 | | | Included in other comprehensive income | | — | | | — | | | | | — | | | Purchases, issuances, sales, and settlements: | | | | | | | | | | Purchases | | — | | | — | | | | | — | | | Issuances | | — | | | — | | | | | — | | | Sales | | — | | | — | | | | | — | | | Settlements | | (0.5) | | | — | | | | | (0.5) | | | Ending balance, March 31, 2023 | | $ | 40.2 | | | $ | 8.2 | | | | | $ | 48.4 | | | Amount of total gains or losses for the year included in net income attributable to the change in unrealized gains or losses relating to assets still held at March 31, 2023 | | $ | — | | | $ | — | | | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | (in millions) | | Credit Financial | | Equity
Securities | | Total | | Beginning balance, January 1, 2022 | | $ | 2.8 | | | $ | 14.7 | | | $ | 17.5 | | | Transfers into Level 3 | | 36.1 | | | 1.5 | | | 37.6 | | | Transfers out of Level 3 | | — | | | — | | | — | | | Total gains or losses (realized/unrealized): | | | | | | | | Included in net income | | (0.4) | | | (0.7) | | | (1.1) | | | Included in other comprehensive loss | | (4.8) | | | — | | | (4.8) | | | Purchases, issuances, sales, and settlements: | | | | | | | | Purchases | | 9.0 | | | 1.0 | | | 10.0 | | | Issuances | | — | | | — | | | — | | | Sales | | (2.0) | | | (1.0) | | | (3.0) | | | Settlements | | — | | | — | | | — | | | Ending balance, December 31, 2022 | | $ | 40.7 | | | $ | 15.5 | | | $ | 56.2 | | | Amount of total gains or losses for the year included in net income attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2022 | | $ | — | | | $ | (4.4) | | | $ | (4.4) | |
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| Summary of Company's Financial Instruments Whose Carrying Amount Did Not Equal Fair Value |
The Company holds investments in commercial mortgage loans reported at cost, less an allowance for expected credit losses, on the Balance Sheet. The cost and estimated fair value of the investments in commercial mortgage loans were: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2023 | | December 31, 2022 | | (in millions) | | Cost | | Fair Value | | Cost | | Fair Value | | Commercial mortgage loans | | $ | 159.9 | | | $ | 152.3 | | | $ | 159.9 | | | $ | 150.7 | |
A summary of our financial instruments whose carrying value did not equal fair value is shown below: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2023 | | December 31, 2022 | | (in millions) | | Carrying
Amount | | Fair
Value | | Carrying
Amount | | Fair
Value | | Junior subordinated debentures: | | | | | | | | | | Trust preferred debentures | | $ | 172.7 | | | $ | 157.8 | | | $ | 172.7 | | | $ | 165.8 | | | Subordinated debentures | | 86.0 | | | 83.9 | | | 85.9 | | | 88.1 | | | Total junior subordinated debentures | | 258.7 | | | 241.7 | | | 258.6 | | | 253.9 | | | Senior unsecured fixed rate notes | | 140.5 | | | 127.5 | | | 140.5 | | | 112.7 | | Floating rate loan stock (1) | | — | | | — | | | 54.7 | | | 52.5 | | | | $ | 399.2 | | | $ | 369.2 | | | $ | 453.8 | | | $ | 419.1 | |
(1) Floating rate loan stock reclassified to liabilities held-for-sale. See Note 1, “Business and Significant Accounting Policies” for additional information.
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