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Valuation of Financial Instruments (Tables)
3 Months Ended
Mar. 31, 2020
Fair Value of Financial Instruments [Abstract]  
Estimated fair value of financial instruments table
The carrying value and the estimated fair value of the Company’s financial instruments at fair value were as follows:
 
 
March 31, 2020
 
December 31, 2019
 
 
Carrying Value
 
Estimated Fair Value
 
Carrying Value
 
Estimated Fair Value
 
 
(in millions)
Financial assets
 
 
 
 
 
 
 
 
Total investments at fair value
 
$
2,582.4

 
$
2,582.4

 
$
2,742.6

 
$
2,742.6

Cash and cash equivalents
 
174.1

 
174.1

 
154.9

 
154.9

Restricted cash and cash equivalents
 
0.3

 
0.3

 
0.3

 
0.3


Fair value, assets and liabilities measured on recurring basis table
The following table presents the Company’s investments at fair value and the corresponding fair value measurements.
 
 
March 31, 2020
 
December 31, 2019
 
 
Level 1
 
Level 2
 
Level 3
 
Level 1
 
Level 2
 
Level 3
 
 
(in millions)
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasuries
 
$

 
$
91.1

 
$

 
$

 
$
85.6

 
$

U.S. Agencies
 

 
3.1

 

 

 
2.9

 

States and municipalities
 

 
422.4

 

 

 
484.5

 

Corporate securities
 

 
971.9

 

 

 
1,079.0

 

Residential mortgage-backed securities
 

 
497.6

 

 

 
480.4

 

Commercial mortgage-backed securities
 

 
105.0

 

 

 
110.6

 

Asset-backed securities
 

 
49.9

 

 

 
61.2

 

Collateralized loan obligations
 

 
74.3

 

 

 

 

Other securities
 

 
152.1

 

 

 
181.7

 

Total fixed maturity securities
 
$

 
$
2,367.4

 
$

 
$

 
$
2,485.9

 
$

Equity securities at fair value:
 
 
 
 
 
 
 
 
 
 
 
 
Industrial and miscellaneous
 
$
172.3

 
$

 
$

 
$
216.4

 
$

 
$

Other
 
33.4

 

 

 
40.3

 

 

Total equity securities at fair value
 
$
205.7

 
$

 
$

 
$
256.7

 
$

 
$

Short-term investments
 
$
9.3

 
$

 
$

 
$

 
$

 
$

Total investments at fair value
 
$
215.0

 
$
2,367.4

 
$

 
$
256.7

 
$
2,485.9

 
$


Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Table Text Block]
Financial Instruments Carried at Net Asset Value (NAV)
The Company has investments in private equity limited partnership interests that are included in Other invested assets on the Company’s Consolidated Balance Sheets. These investments do not have readily determinable fair values and are carried at NAV and therefore are excluded from the fair value hierarchy. The Company initially estimates the value of these investments using the transaction price. In subsequent periods, the Company measures these investments using NAV per share provided quarterly by the general partner, based on financial statements that are audited annually. The Company performs certain control procedures to validate the appropriateness of using NAV as a measurement. These investments are generally not redeemable by the investees and cannot be sold without approval of the general partner. These investments have a fund term of 12 years, subject to three one year extensions at the general partner’s discretion. The Company will receive distributions of proceeds from dividends and interest from fund investments, as well as from the disposition of a fund investment, or portion thereof. The Company expects these distributions from time-to-time during the full course of the fund term. As of March 31, 2020, the Company had unfunded commitments to these private equity limited partnerships totaling $38.9 million.
Additionally, certain cash equivalents, principally money market securities, are measured using NAV, which approximates fair value.
The following table presents cash and investments carried at NAV on the Company’s Consolidated Balance Sheets.
 
March 31, 2020
 
December 31, 2019
 
(in millions)
Cash equivalents carried at NAV
$
72.5

 
$
14.4

Other invested assets carried at NAV
11.4

 
9.1