Investments (Tables)

3 Months Ended

Mar. 31, 2021

Debt Securities, Available-for-sale [Line Items]

Investments Classified by Contractual Maturity Date

The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at March 31, 2021 by contractual maturity were:

(Dollars in Millions)	Amortized Cost		Fair Value
Due in One Year or Less	$	81.4	$	84.6
Due after One Year to Five Years	1,049.7		1,111.0
Due after Five Years to Ten Years	1,570.2		1,691.0
Due after Ten Years	2,878.0		3,219.5
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date	1,350.3		1,373.3
Investments in Fixed Maturities	$	6,929.6	$	7,479.4

Schedule of Unrealized Loss on Investments

An aging of unrealized losses on the Company’s Investments in Fixed Maturities at March 31, 2021 is presented below.

	Less Than 12 Months				12 Months or Longer				Total
(Dollars in Millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed Maturities:
U.S. Government and Government Agencies and Authorities	$	21.0	$	(1.3)	$	0.1	$	—	$	21.1	$	(1.3)
States and Political Subdivisions	335.7		(11.6)		0.7		—		336.4		(11.6)
Foreign Governments	0.2		(0.1)		2.2		(1.1)		2.4		(1.2)
Corporate Securities:
Bonds and Notes	559.1		(25.8)		59.6		(4.6)		618.7		(30.4)
Redeemable Preferred Stocks	5.4		(0.1)		—		—		5.4		(0.1)
Collateralized Loan Obligations	42.1		(0.2)		320.8		(10.3)		362.9		(10.5)
Other Mortgage- and Asset-backed	17.3		(0.1)		0.1		—		17.4		(0.1)
Total Fixed Maturities	$	980.8	$	(39.2)	$	383.5	$	(16.0)	$	1,364.3	$	(55.2)

An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2020 is presented below.

	Less Than 12 Months				12 Months or Longer				Total
(Dollars in Millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Fixed Maturities:
U.S. Government and Government Agencies and Authorities	$	10.5	$	(0.1)	$	—	$	—	$	10.5	$	(0.1)
States and Political Subdivisions	23.3		(0.2)		—		—		23.3		(0.2)
Foreign Governments	0.5		(0.1)		2.6		(1.0)		3.1		(1.1)
Corporate Securities:
Bonds and Notes	132.9		(7.5)		46.1		(3.1)		179.0		(10.6)
Collateralized Loan Obligations	145.2		(3.8)		371.4		(15.9)		516.6		(19.7)
Other Mortgage- and Asset-backed	6.3		—		—		—		6.3		—
Total Fixed Maturities	$	318.7	$	(11.7)	$	420.1	$	(20.0)	$	738.8	$	(31.7)

Allowance for Credit Losses

The following table sets forth the change in allowance for credit losses on fixed maturities available-for-sale by major security type for three months ended March 31, 2021.

	Foreign Governments		Corporate Bonds and Notes		Total
(Dollars in Millions)
Beginning of the Period	$	0.3	$	3.0	$	3.3
Additions for Securities for which No Previous Expected Credit Losses were    Recognized	—		1.3		1.3
Reduction Due to Sales	—		(0.3)		(0.3)
Net Increase (Decrease) in Allowance on Previously Impaired Securities	0.2		0.3		0.5
Write-offs Charged Against Allowance	(0.2)		—		(0.2)
End of the Period	$	0.3	$	4.3	$	4.6

The following table sets forth the change in allowance for credit losses on fixed maturities available-for-sale by major security type for the three months ended March 31, 2020.

	Foreign Governments		Corporate Bonds and Notes		Total
(Dollars in Millions)
Beginning of the Year	$	—	$	—	$	—
Additions for Securities for which No Previous Expected Credit Losses were    Recognized	1.1		3.5		4.6
Reduction Due to Sales	—		—		—
Net Increase (Decrease) in Allowance on Previously Impaired Securities	—		—		—
Write-offs Charged Against Allowance	—		—		—
End of the Period	$	1.1	$	3.5	$	4.6

Schedule of Other Investments

The carrying values of the Company’s Other Investments at March 31, 2021 and December 31, 2020 were:

(Dollars in Millions)	Mar 31, 2021		Dec 31, 2020
Company-owned Life Insurance	$	429.5	$	327.4
Loans to Policyholders at Unpaid Principal	295.1		297.9
Real Estate at Depreciated Cost	98.0		98.7
Mortgage Loans and Other	74.2		55.0
Total	$	896.8	$	779.0

Investment Income

Net Investment Income for the three months ended March 31, 2021 and 2020 was:

	Three Months Ended
(Dollars in Millions)	Mar 31, 2021		Mar 31, 2020
Investment Income (Loss):
Interest on Fixed Income Securities	$	69.0	$	71.0
Dividends on Equity Securities Excluding Alternative Investments	2.1		4.3
Alternative Investments:
Equity Method Limited Liability Investments	22.5		1.8
Limited Liability Investments Included in Equity Securities	4.5		3.8
Total Alternative Investments	27.0		5.6
Short-term Investments	1.2		1.6
Loans to Policyholders	5.5		5.6
Real Estate	2.4		2.5
Other	4.7		4.2
Total Investment Income	111.9		94.8
Investment Expenses:
Real Estate	2.1		2.6
Other Investment Expenses	6.7		6.6
Total Investment Expenses	8.8		9.2
Net Investment Income	$	103.1	$	85.6

Schedule of Realized Gain (Loss)

Gross gains and losses on sales of investments in fixed maturities for the three months ended March 31, 2021 and 2020 were:

	Three Months Ended
(Dollars in Millions)	Mar 31, 2021		Mar 31, 2020
Fixed Maturities:
Gains on Sales	$	13.2	$	15.9
Losses on Sales	(1.1)		(1.1)

Investments in Fixed Maturities

Debt Securities, Available-for-sale [Line Items]

Schedule of Available-for-sale Securities Reconciliation

The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at March 31, 2021 were:

	Amortized Cost		Gross Unrealized				Allowance for Expected Credit Losses		Fair Value
(Dollars in Millions)			Gains		Losses
U.S. Government and Government Agencies and Authorities	$	498.0	$	35.7	$	(1.3)	$	—	$	532.4
States and Political Subdivisions	1,538.6		140.9		(11.6)		—		1,667.9
Foreign Governments	6.3		—		(1.2)		(0.3)		4.8
Corporate Securities:
Bonds and Notes	3,886.3		419.2		(30.4)		(4.3)		4,270.8
Redeemable Preferred Stocks	7.0		0.1		(0.1)		—		7.0
Collateralized Loan Obligations	791.0		2.4		(10.5)		—		782.9
Other Mortgage- and Asset-backed	202.4		11.3		(0.1)		—		213.6
Investments in Fixed Maturities	$	6,929.6	$	609.6	$	(55.2)	$	(4.6)	$	7,479.4

Note 5 - Investments (continued)

The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2020 were:

	Amortized Cost		Gross Unrealized				Allowance for Expected Credit Losses		Fair Value
(Dollars in Millions)			Gains		Losses
U.S. Government and Government Agencies and Authorities	$	536.5	$	48.9	$	(0.1)	$	—	$	585.3
States and Political Subdivisions	1,404.3		185.4		(0.2)		—		1,589.5
Foreign Governments	6.6		—		(1.1)		(0.3)		5.2
Corporate Securities:
Bonds and Notes	3,749.5		689.5		(10.6)		(3.0)		4,425.4
Redeemable Preferred Stocks	7.0		0.5		—		—		7.5
Collateralized Loan Obligations	785.1		2.3		(19.7)		—		767.7
Other Mortgage- and Asset-backed	203.7		21.6		—		—		225.3
Investments in Fixed Maturities	$	6,692.7	$	948.2	$	(31.7)	$	(3.3)	$	7,605.9