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Investments (Tables)
 9 Months Ended
Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Amortized Cost and Fair Values of Securities by Security Type
At September 30, 2020 and December 31, 2019, all fixed maturity securities were classified as available-for-sale. The amortized cost and fair values of securities by security type are shown as follows:

 September 30, 2020
 Amortized
Cost
ACL(1)
Gross
Unrealized
Gain		Gross
Unrealized
Loss		Fair
Value
(in millions of dollars)
United States Government and Government Agencies and Authorities $1,032.0 $— $217.9 $— $1,249.9 
States, Municipalities, and Political Subdivisions3,321.6 — 612.0 3.6 3,930.0 
Foreign Governments860.9 — 255.6 1.4 1,115.1 
Public Utilities6,359.9 — 1,662.7 6.6 8,016.0 
Mortgage/Asset-Backed Securities1,317.1 — 115.2 0.2 1,432.1 
All Other Corporate Bonds28,338.3 12.5 5,313.7 134.4 33,517.6 
Redeemable Preferred Stocks9.6 — — 0.1 9.5 
Total Fixed Maturity Securities$41,239.4 $12.5 $8,177.1 $146.3 $49,270.2 

December 31, 2019
 Amortized
Cost		Gross
Unrealized
Gain		Gross
Unrealized
Loss		Fair
Value
(in millions of dollars)
United States Government and Government Agencies and Authorities$1,246.1 $156.0 $0.4 $1,401.7 
States, Municipalities, and Political Subdivisions2,863.1 507.6 7.3 3,363.4 
Foreign Governments843.5 175.2 1.0 1,017.7 
Public Utilities6,436.7 1,303.7 8.2 7,732.2 
Mortgage/Asset-Backed Securities1,377.8 101.3 0.4 1,478.7 
All Other Corporate Bonds28,273.1 4,211.2 73.9 32,410.4 
Redeemable Preferred Stocks39.0 0.6 — 39.6 
Total Fixed Maturity Securities$41,079.3 $6,455.6 $91.2 $47,443.7 
Length of Time Fixed Maturity Securities had been in a Gross Unrealized Loss Position
The following charts indicate the length of time our fixed maturity securities have been in a gross unrealized loss position.

 September 30, 2020
 Less Than 12 Months12 Months or Greater
 Fair
Value		Gross
Unrealized
Loss		Fair
Value		Gross
Unrealized
Loss
(in millions of dollars)
States, Municipalities, and Political Subdivisions$0.1 $— $275.0 $3.6 
Foreign Governments— — 29.1 1.4 
Public Utilities24.2 2.2 108.5 4.4 
Mortgage/Asset-Backed Securities0.1 — 21.4 0.2 
All Other Corporate Bonds186.2 50.5 1,435.1 83.9 
Redeemable Preferred Stocks— — 9.5 0.1 
Total Fixed Maturity Securities$210.6 $52.7 $1,878.6 $93.6 

 December 31, 2019
 Less Than 12 Months12 Months or Greater
 Fair
Value		Gross
Unrealized
Loss		Fair
Value		Gross
Unrealized
Loss
(in millions of dollars)
United States Government and Government Agencies and Authorities$110.2 $0.4 $— $— 
States, Municipalities, and Political Subdivisions331.0 7.3 0.3 — 
Foreign Governments69.4 1.0 — — 
Public Utilities168.3 2.6 37.0 5.6 
Mortgage/Asset-Backed Securities47.0 0.4 3.1 — 
All Other Corporate Bonds579.1 29.1 379.8 44.8 
Total Fixed Maturity Securities$1,305.0 $40.8 $420.2 $50.4 
Distribution of the Maturity Dates for Fixed Maturity Securities
The following is a distribution of the maturity dates for fixed maturity securities. The maturity dates have not been adjusted for possible calls or prepayments.

 September 30, 2020
 Amortized Cost, Net of ACLUnrealized Gain PositionUnrealized Loss Position
 Gross GainFair ValueGross LossFair Value
(in millions of dollars)
1 year or less$1,037.7 $17.8 $1,014.5 $2.1 $38.9 
Over 1 year through 5 years6,811.8 629.0 6,994.9 52.9 393.0 
Over 5 years through 10 years12,880.8 2,189.8 14,384.6 45.7 640.3 
Over 10 years19,192.0 5,225.3 23,376.4 45.4 995.5 
39,922.3 8,061.9 45,770.4 146.1 2,067.7 
Mortgage/Asset-Backed Securities1,317.1 115.2 1,410.6 0.2 21.5 
Total Fixed Maturity Securities$41,239.4 $8,177.1 $47,181.0 $146.3 $2,089.2 
 December 31, 2019
 Amortized CostUnrealized Gain PositionUnrealized Loss Position
 Gross GainFair ValueGross LossFair Value
(in millions of dollars)
1 year or less$821.5 $14.5 $832.6 $0.2 $3.2 
Over 1 year through 5 years6,286.2 456.5 6,423.4 41.7 277.6 
Over 5 years through 10 years13,570.8 1,688.3 14,881.3 14.6 363.2 
Over 10 years19,023.0 4,195.0 22,152.6 34.3 1,031.1 
39,701.5 6,354.3 44,289.9 90.8 1,675.1 
Mortgage/Asset-Backed Securities1,377.8 101.3 1,428.6 0.4 50.1 
Total Fixed Maturity Securities$41,079.3 $6,455.6 $45,718.5 $91.2 $1,725.2 
Distribution by External Credit Rating for Fixed Maturity Securities
The following chart depicts an analysis of our fixed maturity security portfolio between investment-grade and below-investment-grade categories as of September 30, 2020:

Gross Unrealized Loss
Fair ValueGross Unrealized GainAmountPercent of Total Gross Unrealized Loss
(in millions of dollars)
Investment-Grade$45,668.1 $7,987.3 $32.7 22.4 %
Below-Investment-Grade3,602.1 189.8 113.6 77.6 %
Total Fixed Maturity Securities$49,270.2 $8,177.1 $146.3 100.0 %
Debt Securities, Available-for-sale, Allowance for Credit Loss
The following table presents a rollforward of the allowance for credit losses on available-for-sale fixed maturity securities, all of which are classified as "all other corporate bonds" in the preceding tables, at September 30, 2020:

Three Months EndedNine Months Ended
(in millions of dollars)
Balance, beginning of period$29.8 $— 
Credit losses on securities for which credit losses were not previously recorded— 55.6 
Change in allowance due to change in intent to hold securities to maturity(16.9)(37.7)
Change in allowance on securities with allowance recorded in previous period(0.4)(5.4)
Balance, end of period$12.5 $12.5 
Low Income Housing Tax Credits The Company invests in tax credit partnerships primarily for the receipt of income tax credits and tax benefits derived from passive losses on the investments. Amounts recognized in the consolidated statements of income are as follows:
Three Months Ended September 30Nine Months Ended September 30
2020201920202019
(in millions of dollars)
Income Tax Credits$8.3 $9.5 $24.9 $28.3 
Amortization, Net of Tax(5.4)(6.1)(16.4)(19.0)
Income Tax Benefit$2.9 $3.4 $8.5 $9.3 
Mortgage Loans by Property Type and Geographic Region
The carrying amount of mortgage loans by property type and geographic region are presented below.

September 30, 2020December 31, 2019
(in millions of dollars)
Carrying AmountPercent of TotalCarrying AmountPercent of Total
Property Type
Apartment$635.6 26.4 %$608.8 25.4 %
Industrial602.7 25.1 623.6 26.0 
Office522.8 21.7 549.3 22.9 
Retail598.6 24.9 567.5 23.7 
Other46.8 1.9 47.8 2.0 
Total$2,406.5 100.0 %$2,397.0 100.0 %
Region
New England$40.5 1.7 %$28.9 1.2 %
Mid-Atlantic204.4 8.5 184.5 7.7 
East North Central341.8 14.2 329.2 13.7 
West North Central201.6 8.4 215.4 9.0 
South Atlantic509.6 21.2 509.2 21.2 
East South Central110.9 4.6 114.3 4.8 
West South Central259.0 10.8 246.6 10.3 
Mountain252.6 10.5 268.2 11.2 
Pacific486.1 20.1 500.7 20.9 
Total$2,406.5 100.0 %$2,397.0 100.0 %
Schedule of Participating Mortgage Loans by Internal Credit Rating and Loan to Value
The following tables present information about mortgage loans by the applicable credit quality indicators:

September 30, 2020December 31, 2019
(in millions of dollars)
Carrying AmountPercent of TotalCarrying AmountPercent of Total
Internal Rating
A$466.3 19.4 %$485.6 20.3 %
BBB1,894.4 78.7 1,911.4 79.7 
BB29.4 1.2 — — 
B16.4 0.7 — — 
Total$2,406.5 100.0 %$2,397.0 100.0 %
Loan-to-Value Ratio
<= 65%$1,250.1 51.9 %$1,215.1 50.7 %
> 65% <= 75%1,053.7 43.8 1,053.0 43.9 
> 75% <= 85%45.5 1.9 91.4 3.8 
> 85%57.2 2.4 37.5 1.6 
Total$2,406.5 100.0 %$2,397.0 100.0 %
Mortgage Loans by Credit Quality Indicators
The following table presents the amortized cost of our mortgage loans by year of origination and credit quality indicators at September 30, 2020:

Prior to 201620162017201820192020Total
(in millions of dollars)
Internal Rating
A$233.0 $104.5 $52.7 $60.3 $17.1 $— $467.6 
BBB515.2 290.1 281.5 333.5 353.5 133.7 1,907.5 
BB29.6 — — — — — 29.6 
B16.4 — — — — — 16.4 
Total Amortized Cost794.2 394.6 334.2 393.8 370.6 133.7 2,421.1 
Allowance for credit losses(2.8)(2.6)(1.8)(3.1)(3.1)(1.2)(14.6)
Carrying Amount$791.4 $392.0 $332.4 $390.7 $367.5 $132.5 $2,406.5 
Loan-to-Value Ratio
<=65%$652.1 $245.4 $146.8 $78.1 $83.3 $48.5 $1,254.2 
>65<=75%65.2 121.8 187.4 315.7 287.3 85.2 1,062.6 
>75%<=85%18.9 27.4 — — — — 46.3 
>85%58.0 — — — — — 58.0 
Total Amortized Cost794.2 394.6 334.2 393.8 370.6 133.7 2,421.1 
Allowance for credit losses(2.8)(2.6)(1.8)(3.1)(3.1)(1.2)(14.6)
Carrying Amount$791.4 $392.0 $332.4 $390.7 $367.5 $132.5 $2,406.5 
Financing Receivable, Allowance for Credit Loss
The following table presents a roll-forward of allowance for expected credit losses by loan-to-value ratio:

Three Months Ended September 30, 2020
Beginning of PeriodCurrent Period ProvisionsWrite-OffsRecoveriesEnd of Period
(in millions of dollars)
Loan-to-Value Ratio
<=65%$3.9 $— $— $— $3.9 
>65<=75%7.9 1.2 — — 9.1 
>75%<=85%1.0 (0.3)— — 0.7 
>85%0.4 0.5 — — 0.9 
Total$13.2 $1.4 $— $— $14.6 


Nine Months Ended September 30, 2020
Beginning of YearCurrent Period ProvisionsWrite-OffsRecoveriesEnd of Period
(in millions of dollars)
Loan-to-Value Ratio
<=65%$2.8 $1.1 $— $— $3.9 
>65<=75%4.6 4.5 — — 9.1 
>75%<=85%0.5 0.2 — — 0.7 
>85%0.4 0.5 — — 0.9 
Total$8.3 $6.3 $— $— $14.6 
Federal Home Loan Bank Common Stock Carrying Amounts, Amounts Posted, and Advances Received The carrying value of common stock owned, collateral posted, and advances received are as follows:
September 30, 2020December 31, 2019
(in millions of dollars)
Carrying Value of FHLB Common Stock$21.7 $18.5 
Advances from FHLB$30.2 $— 
Carrying Value of Collateral Posted to FHLB
Fixed Maturity Securities$970.4 $182.1 
Commercial Mortgage Loans1,099.7 164.4 
Total Carrying Value of Collateral Posted to FHLB$2,070.1 $346.5 
Schedule of Financial Instrument and Derivative Offsetting
Shown below are our financial instruments that either meet the accounting requirements that allow them to be offset in our balance sheets or that are subject to an enforceable master netting arrangement or similar agreement. Our accounting policy is to not offset these financial instruments in our balance sheets. Net amounts disclosed below have been reduced by the amount of collateral pledged to or received from our counterparties.

September 30, 2020
Gross AmountGross Amount Not
of RecognizedGross AmountNet AmountOffset in Balance Sheet
FinancialOffset inPresented inFinancialCashNet
InstrumentsBalance SheetBalance SheetInstrumentsCollateralAmount
(in millions of dollars)
Financial Assets:
Derivatives$38.3 $— $38.3 $(4.2)$(34.1)$— 
Financial Liabilities:
Derivatives$34.0 $— $34.0 $(33.4)$— $0.6 

December 31, 2019
Gross AmountGross Amount Not
of RecognizedGross AmountNet AmountOffset in Balance Sheet
FinancialOffset inPresented inFinancialCashNet
InstrumentsBalance SheetBalance SheetInstrumentsCollateralAmount
(in millions of dollars)
Financial Assets:
Derivatives$27.5 $— $27.5 $(4.0)$(23.5)$— 
Securities Lending176.4 — 176.4 (176.4)— — 
Total$203.9 $— $203.9 $(180.4)$(23.5)$— 
Financial Liabilities:
Derivatives$34.6 $— $34.6 $(31.3)$— $3.3 
Net Investment Income
Net Investment Income

Net investment income reported in our consolidated statements of income is presented below. Certain prior period amounts have been reclassified to conform to the current period presentation.

 Three Months Ended September 30Nine Months Ended September 30
 2020201920202019
 (in millions of dollars)
Fixed Maturity Securities$560.8 $546.7 $1,643.1 $1,656.3 
Derivatives18.7 19.1 59.6 55.0 
Mortgage Loans26.1 25.4 83.1 77.0 
Policy Loans5.1 5.0 14.9 14.5 
Other Long-term Investments
Perpetual Preferred Securities1
(0.2)0.1 (6.7)4.8 
Private Equity Partnerships2
11.3 4.7 (9.6)19.5 
Other0.4 0.2 5.3 2.8 
Short-term Investments1.3 8.7 10.1 22.4 
Gross Investment Income623.5 609.9 1,799.8 1,852.3 
Less Investment Expenses7.2 7.3 23.3 23.6 
Less Investment Income on Participation Fund Account Assets3.1 3.2 9.3 9.7 
Net Investment Income$613.2 $599.4 $1,767.2 $1,819.0 

1 The net unrealized gain (loss) recognized in net investment income for the three and nine months ended September 30, 2020 related to perpetual preferred securities still held at September 30, 2020 was $(0.8) million and $(8.7) million, respectively. The net unrealized gain (loss) recognized in net investment income for the three and nine months ended September 30, 2019 related to perpetual preferred securities still held at September 30, 2019 was $0.3 million and $3.3 million, respectively.
2 The net unrealized gain (loss) recognized in net investment income for the three and nine months ended September 30, 2020 related to private equity partnerships still held at September 30, 2020 was $8.5 million and $(27.1) million, respectively. The net unrealized gain (loss) recognized in net investment income for the three and nine months ended September 30, 2019 related to private equity partnerships still held at September 30, 2019 was $(1.1) million and $2.6 million, respectively. See Note 3 for further discussion of private equity partnerships.
Realized Investment Gains and Losses Reported in Consolidated Statements of Income
Realized Investment Gain and Loss

Realized investment gains and losses are as follows:

 Three Months Ended September 30Nine Months Ended September 30
 2020201920202019
 (in millions of dollars)
Fixed Maturity Securities
Gross Gains on Sales$3.3 $11.3 $8.3 $22.5 
Gross Losses on Sales(2.8)(5.7)(7.6)(30.5)
Credit Losses— (20.8)(59.3)(20.8)
Mortgage Loans and Other Invested Assets
Gross Gains on Sales0.9 0.6 1.2 4.5 
Gross Losses on Sales(0.2)— (0.4)(0.1)
Impairment Loss(8.4)— (8.4)— 
Credit Losses(1.6)— (6.2)— 
Embedded Derivative in Modified Coinsurance Arrangement14.1 (11.1)(30.9)(6.4)
All Other Derivatives(0.6)(0.1)(2.3)(0.7)
Foreign Currency Transactions(0.3)(0.4)(0.2)(0.9)
Net Realized Investment Gain (Loss)$4.4 $(26.2)$(105.8)$(32.4)