Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | |||||||||||||
Smaller reporting company | Emerging growth company |
Page | |||||||||||
PART I. | |||||||||||
Item 1. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
PART II. | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 6. | |||||||||||
Three Months Ended | ||||||||||||||
Mar 31, 2022 | Mar 31, 2021 | |||||||||||||
Revenues: | ||||||||||||||
Earned Premiums | $ | $ | ||||||||||||
Net Investment Income | ||||||||||||||
Change in Value of Alternative Energy Partnership Investments | ( | ( | ||||||||||||
Other Income (Loss) | ||||||||||||||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | ( | |||||||||||||
Net Realized Gains on Sales of Investments | ||||||||||||||
Impairment Losses | ( | ( | ||||||||||||
Total Revenues | ||||||||||||||
Expenses: | ||||||||||||||
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses | ||||||||||||||
Insurance Expenses | ||||||||||||||
Loss from Early Extinguishment of Debt | ||||||||||||||
Interest and Other Expenses | ||||||||||||||
Total Expenses | ||||||||||||||
Income (Loss) before Income Taxes | ( | |||||||||||||
Income Tax Benefit (Expense) | ||||||||||||||
Net Income (Loss) | $ | ( | $ | |||||||||||
Net Income (Loss) Per Unrestricted Share: | ||||||||||||||
Basic | $ | ( | $ | |||||||||||
Diluted | $ | ( | $ |
Three Months Ended | ||||||||||||||
Mar 31, 2022 | Mar 31, 2021 | |||||||||||||
Net Income (Loss) | $ | ( | $ | |||||||||||
Other Comprehensive Income (Loss) Before Income Taxes: | ||||||||||||||
Changes in Net Unrealized Holding Gains (Losses) on Investment Securities with: | ||||||||||||||
No Credit Losses Recognized in Condensed Consolidated Statements of Income | ( | ( | ||||||||||||
Credit Losses Recognized in Condensed Consolidated Statements of Income | ( | ( | ||||||||||||
Decrease (Increase) in Net Unrecognized Postretirement Benefit Costs | ( | |||||||||||||
Gain (Loss) on Cash Flow Hedges | ||||||||||||||
Other Comprehensive Income (Loss) Before Income Taxes | ( | ( | ||||||||||||
Other Comprehensive Income Tax Benefit (Expense) | ||||||||||||||
Other Comprehensive Income (Loss), Net of Taxes | ( | ( | ||||||||||||
Total Comprehensive Income (Loss) | $ | ( | $ | ( |
Mar 31, 2022 | Dec 31, 2021 | ||||||||||
Assets: | |||||||||||
Investments: | |||||||||||
Fixed Maturities at Fair Value (Amortized Cost: 2022 - $ Allowance for Credit Losses: 2022 - $ | $ | $ | |||||||||
Equity Securities at Fair Value (Cost: 2022 - $ | |||||||||||
Equity Securities at Modified Cost | |||||||||||
Equity Method Limited Liability Investments | |||||||||||
Alternative Energy Partnership Investments | |||||||||||
Convertible Securities at Fair Value | |||||||||||
Short-term Investments at Cost which Approximates Fair Value | |||||||||||
Other Investments | |||||||||||
Total Investments | |||||||||||
Cash | |||||||||||
Receivables from Policyholders (Allowance for Credit Losses: 2022 - $ | |||||||||||
Other Receivables | |||||||||||
Deferred Policy Acquisition Costs | |||||||||||
Goodwill | |||||||||||
Current Income Tax Assets | |||||||||||
Other Assets | |||||||||||
Total Assets | $ | $ | |||||||||
Liabilities and Shareholders’ Equity: | |||||||||||
Insurance Reserves: | |||||||||||
Life and Health | $ | $ | |||||||||
Property and Casualty | |||||||||||
Total Insurance Reserves | |||||||||||
Unearned Premiums | |||||||||||
Policyholder Obligations | |||||||||||
Deferred Income Tax Liabilities | |||||||||||
Accrued Expenses and Other Liabilities | |||||||||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2022 - $ | |||||||||||
Total Liabilities | |||||||||||
Shareholders’ Equity: | |||||||||||
Common Stock, $ | |||||||||||
Paid-in Capital | |||||||||||
Retained Earnings | |||||||||||
Accumulated Other Comprehensive Income (Loss) | ( | ||||||||||
Total Shareholders’ Equity | |||||||||||
Total Liabilities and Shareholders’ Equity | $ | $ |
Three Months Ended | |||||||||||
Mar 31, 2022 | Mar 31, 2021 | ||||||||||
Cash Flows from Operating Activities: | |||||||||||
Net Income (Loss) | $ | ( | $ | ||||||||
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities: | |||||||||||
Net Realized Investment (Gains) Losses | ( | ( | |||||||||
Impairment Losses | |||||||||||
Depreciation and Amortization of Property, Equipment and Software | |||||||||||
Amortization of Intangibles Assets Acquired | |||||||||||
Loss from Early Extinguishment of Debt | |||||||||||
Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments | ( | ( | |||||||||
(Income) Loss from Change in Value of Alternative Energy Partnership Investments | |||||||||||
(Increase) Decrease in Value of Equity and Convertible Securities | ( | ||||||||||
Changes in: | |||||||||||
Receivables from Policyholders | ( | ||||||||||
Reinsurance Recoverables | ( | ||||||||||
Deferred Policy Acquisition Costs | ( | ( | |||||||||
Insurance Reserves | |||||||||||
Unearned Premiums | ( | ||||||||||
Income Taxes | ( | ( | |||||||||
Other Assets and Liabilities | |||||||||||
Net Cash Provided by (Used in) Operating Activities | ( | ||||||||||
Cash Flows from Investing Activities: | |||||||||||
Proceeds from Sales, Calls and Maturities of Fixed Maturities | |||||||||||
Proceeds from the Sales or Paydowns of Investments: | |||||||||||
Equity Securities | |||||||||||
Mortgage Loans | |||||||||||
Other Investments | |||||||||||
Purchases of Investments: | |||||||||||
Fixed Maturities | ( | ( | |||||||||
Equity Securities | ( | ( | |||||||||
Real Estate Investments | ( | ||||||||||
Company-Owned Life Insurance | ( | ( | |||||||||
Mortgage Loans | ( | ( | |||||||||
Other Investments | ( | ( | |||||||||
Net Sales (Purchases) of Short-term Investments | |||||||||||
Acquisition of Software and Long-lived Assets | ( | ( | |||||||||
Other | |||||||||||
Net Cash Provided by (Used in) Investing Activities | ( | ||||||||||
Cash Flows from Financing Activities: | |||||||||||
Repayment of Long-term Debt | ( | ( | |||||||||
Proceeds from Issuance of | |||||||||||
Issuance Fees on | ( | — | |||||||||
Proceeds from Issuance of | |||||||||||
Issuance Fees on | ( | — | |||||||||
Proceeds from Policyholder Obligations | |||||||||||
Repayment of Policyholder Obligations | ( | ( | |||||||||
Proceeds from Shares Issued under Employee Stock Purchase Plan | |||||||||||
Common Stock Repurchases | ( | ||||||||||
Dividends and Dividend Equivalents Paid | ( | ( | |||||||||
Other | |||||||||||
Net Cash Provided by (Used in) Financing Activities | ( | ||||||||||
Increase (Decrease) in Cash | |||||||||||
Cash, Beginning of Year | |||||||||||
Cash, End of Period | $ | $ |
Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||
(Dollars and Shares in Millions, Except Per Share Amounts) | Number of Shares | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
Net Income (Loss) | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Taxes (Note 9) | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Cash Dividends and Dividend Equivalents to Shareholders ($ | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Repurchases of Common Stock (Note 10) | — | |||||||||||||||||||||||||||||||||||||
Shares Issued Under Employee Stock Purchase Plan (Note 10) | — | — | — | |||||||||||||||||||||||||||||||||||
Equity-based Compensation Cost | — | — | — | — | ||||||||||||||||||||||||||||||||||
Equity-based Awards, Net of Shares Exchanged | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | $ | $ | $ | ( | $ |
Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||
(Dollars and Shares in Millions, Except Per Share Amounts) | Number of Shares | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
Net Income (Loss) | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Taxes (Note 9) | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Cash Dividends and Dividend Equivalents to Shareholders ($ | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Repurchases of Common Stock (Note 10) | ( | ( | ( | — | ( | |||||||||||||||||||||||||||||||||
Shares Issued Under Employee Stock Purchase Plan (Note 10) | — | — | — | — | ||||||||||||||||||||||||||||||||||
Equity-based Compensation Cost | — | — | — | — | ||||||||||||||||||||||||||||||||||
Equity-based Awards, Net of Shares Exchanged | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | $ | $ | $ | $ | $ |
Three Months Ended | ||||||||||||||
(Dollars in Millions, except per share amounts) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Net Income (Loss) | $ | ( | $ | |||||||||||
Less: Net Income Attributed to Participating Awards | ||||||||||||||
Net Income (Loss) Attributed to Unrestricted Shares | ( | |||||||||||||
Dilutive Effect on Income of Equity-based Compensation Equivalent Shares | ||||||||||||||
Diluted Net Income (Loss) Attributed to Unrestricted Shares | $ | ( | $ | |||||||||||
(Number of Shares in Thousands) | ||||||||||||||
Weighted-average Unrestricted Shares Outstanding | ||||||||||||||
Equity-based Compensation Equivalent Shares | ||||||||||||||
Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution | ||||||||||||||
(Per Unrestricted Share in Whole Dollars) | ||||||||||||||
Basic Net Income (Loss) Per Unrestricted Share | $ | ( | $ | |||||||||||
Diluted Net Income (Loss) Per Unrestricted Share | $ | ( | $ |
Three Months Ended | ||||||||||||||
(Number of Shares in Thousands) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Equity-based Compensation Equivalent Shares | ||||||||||||||
Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution |
(Dollars in Millions) | |||||
Fixed Maturities at Fair Value | $ | ||||
Equity Securities at Fair Value | |||||
Short-term Investments at Cost which Approximates Fair Value | |||||
Cash | |||||
Receivables from Policyholders | |||||
Other Receivables | |||||
Goodwill | |||||
Current Income Tax Assets | |||||
Other Assets | |||||
Property and Casualty Insurance Reserves | ( | ||||
Unearned Premiums | ( | ||||
Deferred Income Tax Liabilities | ( | ||||
Accrued Expenses and Other Liabilities | ( | ||||
Total Purchase Price | $ |
(Dollars in Millions) | |||||
Definite Life Intangibles | |||||
Value of Business Acquired | $ | ||||
Customer Relationships | |||||
Agent Relationships | |||||
Internal-Use Software | |||||
Trade Names | |||||
Indefinite Life Intangible Assets | |||||
Insurance Licenses |
Three Months Ended | ||||||||||||||
(Dollars in millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Total Revenues | $ | $ | ||||||||||||
Total Expenses | ||||||||||||||
Income (Loss) from Continuing Operations before Income Taxes | ( | |||||||||||||
Net Income (Loss) | $ | ( | $ | |||||||||||
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Specialty Property & Casualty Insurance: | ||||||||||||||
Personal Automobile | $ | $ | ||||||||||||
Commercial Automobile | ||||||||||||||
Preferred Property & Casualty Insurance: | ||||||||||||||
Personal Automobile | ||||||||||||||
Homeowners | ||||||||||||||
Other Personal Lines | ||||||||||||||
Life & Health Insurance: | ||||||||||||||
Life | ||||||||||||||
Accident and Health | ||||||||||||||
Property | ||||||||||||||
Total Earned Premiums | $ | $ |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Segment Revenues: | ||||||||||||||
Specialty Property & Casualty Insurance: | ||||||||||||||
Earned Premiums | $ | $ | ||||||||||||
Net Investment Income | ||||||||||||||
Change in Value of Alternative Energy Partnership Investments | ( | ( | ||||||||||||
Other Income | ||||||||||||||
Total Specialty Property & Casualty Insurance | ||||||||||||||
Preferred Property & Casualty Insurance: | ||||||||||||||
Earned Premiums | ||||||||||||||
Net Investment Income | ||||||||||||||
Change in Value of Alternative Energy Partnership Investments | ( | ( | ||||||||||||
Total Preferred Property & Casualty Insurance | ||||||||||||||
Life & Health Insurance: | ||||||||||||||
Earned Premiums | ||||||||||||||
Net Investment Income | ||||||||||||||
Change in Value of Alternative Energy Partnership Investments | ( | ( | ||||||||||||
Other Income | ||||||||||||||
Total Life & Health Insurance | ||||||||||||||
Total Segment Revenues | ||||||||||||||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | ( | |||||||||||||
Net Realized Gains on Sales of Investments | ||||||||||||||
Net Impairment Losses Recognized in Earnings | ( | ( | ||||||||||||
Other | ||||||||||||||
Total Revenues | $ | $ |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Segment Operating Income (Loss): | ||||||||||||||
Specialty Property & Casualty Insurance | $ | ( | $ | |||||||||||
Preferred Property & Casualty Insurance | ( | |||||||||||||
Life & Health Insurance | ( | |||||||||||||
Total Segment Operating Income (Loss) | ( | |||||||||||||
Corporate and Other Operating Income (Loss) From: | ||||||||||||||
Other | ( | ( | ||||||||||||
Corporate and Other Operating Income (Loss) | ( | ( | ||||||||||||
Adjusted Consolidated Operating Income (Loss) | ( | |||||||||||||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | ( | |||||||||||||
Net Realized Gains on Sales of Investments | ||||||||||||||
Impairment Losses | ( | ( | ||||||||||||
Acquisition Related Transaction, Integration and Other Costs | ( | ( | ||||||||||||
Loss from Early Extinguishment of Debt | ( | |||||||||||||
Income (Loss) before Income Taxes | $ | ( | $ |
Three Months Ended | ||||||||||||||
(Dollars in Millions and Net of Income Taxes) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Segment Net Operating Income (Loss): | ||||||||||||||
Specialty Property & Casualty Insurance | $ | ( | $ | |||||||||||
Preferred Property & Casualty Insurance | ( | |||||||||||||
Life & Health Insurance | ||||||||||||||
Total Segment Net Operating Income (Loss) | ( | |||||||||||||
Corporate and Other Net Operating Income (Loss) From: | ||||||||||||||
Other | ( | ( | ||||||||||||
Total Corporate and Other Net Operating Income (Loss) | ( | ( | ||||||||||||
Adjusted Consolidated Net Operating Income (Loss) | ( | |||||||||||||
Net Income (Loss) From: | ||||||||||||||
Change in Fair Value of Equity and Convertible Securities | ( | |||||||||||||
Net Realized Gains on Sales of Investments | ||||||||||||||
Impairment Losses | ( | ( | ||||||||||||
Acquisition Related Transaction, Integration and Other Costs | ( | ( | ||||||||||||
Loss from Early Extinguishment of Debt | ( | |||||||||||||
Net Income (Loss) | $ | ( | $ |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Property and Casualty Insurance Reserves: | ||||||||||||||
Gross of Reinsurance at Beginning of Year | $ | $ | ||||||||||||
Less Reinsurance Recoverables at Beginning of Year | ||||||||||||||
Property and Casualty Insurance Reserves - Net of Reinsurance at Beginning of Year | ||||||||||||||
Incurred Losses and LAE Related to: | ||||||||||||||
Current Year | ||||||||||||||
Prior Years | ( | |||||||||||||
Total Incurred Losses and LAE | ||||||||||||||
Paid Losses and LAE Related to: | ||||||||||||||
Current Year | ||||||||||||||
Prior Years | ||||||||||||||
Total Paid Losses and LAE | ||||||||||||||
Property and Casualty Insurance Reserves - Net of Reinsurance at End of Period | ||||||||||||||
Plus Reinsurance Recoverables at End of Period | ||||||||||||||
Property and Casualty Insurance Reserves - Gross of Reinsurance at End of Period | $ | $ |
(Dollars in Millions) | Receivables from Policyholders, Net of Allowance for Expected Credit Losses | Allowance for Expected Credit Losses | ||||||||||||
Balance at Beginning of Year | $ | $ | ||||||||||||
Provision for Expected Credit Losses | ||||||||||||||
Write-offs of Uncollectible Receivables from Policyholders | ( | |||||||||||||
Balance at End of Period | $ | $ |
(Dollars in Millions) | Receivables from Policyholders, Net of Allowance for Expected Credit Losses | Allowance for Expected Credit Losses | ||||||||||||
Balance at Beginning of Year | $ | $ | ||||||||||||
Provision for Expected Credit Losses | ||||||||||||||
Write-offs of Uncollectible Receivables from Policyholders | ( | |||||||||||||
Balance at End of Period | $ | $ |
Amortized Cost | Gross Unrealized | Allowance for Expected Credit Losses | Fair Value | |||||||||||||||||||||||||||||
(Dollars in Millions) | Gains | Losses | ||||||||||||||||||||||||||||||
U.S. Government and Government Agencies and Authorities | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
States and Political Subdivisions | ( | |||||||||||||||||||||||||||||||
Foreign Governments | ( | |||||||||||||||||||||||||||||||
Corporate Securities: | ||||||||||||||||||||||||||||||||
Bonds and Notes | ( | ( | ||||||||||||||||||||||||||||||
Redeemable Preferred Stocks | ( | |||||||||||||||||||||||||||||||
Collateralized Loan Obligations | ( | |||||||||||||||||||||||||||||||
Other Mortgage- and Asset-backed | ( | |||||||||||||||||||||||||||||||
Investments in Fixed Maturities | $ | $ | $ | ( | $ | ( | $ |
Amortized Cost | Gross Unrealized | Allowance for Expected Credit Losses | Fair Value | |||||||||||||||||||||||||||||
(Dollars in Millions) | Gains | Losses | ||||||||||||||||||||||||||||||
U.S. Government and Government Agencies and Authorities | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
States and Political Subdivisions | ( | |||||||||||||||||||||||||||||||
Foreign Governments | ( | |||||||||||||||||||||||||||||||
Corporate Securities: | ||||||||||||||||||||||||||||||||
Bonds and Notes | ( | ( | ||||||||||||||||||||||||||||||
Redeemable Preferred Stocks | ||||||||||||||||||||||||||||||||
Collateralized Loan Obligations | ( | |||||||||||||||||||||||||||||||
Other Mortgage- and Asset-backed | ( | |||||||||||||||||||||||||||||||
Investments in Fixed Maturities | $ | $ | $ | ( | $ | ( | $ |
(Dollars in Millions) | Amortized Cost | Fair Value | ||||||||||||
Due in One Year or Less | $ | $ | ||||||||||||
Due after One Year to Five Years | ||||||||||||||
Due after Five Years to Ten Years | ||||||||||||||
Due after Ten Years | ||||||||||||||
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | ||||||||||||||
Investments in Fixed Maturities | $ | $ |
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 | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
States and Political Subdivisions | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Foreign Governments | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Corporate Securities: | ||||||||||||||||||||||||||||||||||||||
Bonds and Notes | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Redeemable Preferred Stocks | ( | ( | ||||||||||||||||||||||||||||||||||||
Collateralized Loan Obligations | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Other Mortgage- and Asset-backed | ( | ( | ||||||||||||||||||||||||||||||||||||
Total Fixed Maturities | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
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 | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
States and Political Subdivisions | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Foreign Governments | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Corporate Securities: | ||||||||||||||||||||||||||||||||||||||
Bonds and Notes | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Redeemable Preferred Stocks | ||||||||||||||||||||||||||||||||||||||
Collateralized Loan Obligations | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Other Mortgage- and Asset-backed | ( | ( | ||||||||||||||||||||||||||||||||||||
Total Fixed Maturities | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
Corporate Bonds and Notes | Total | |||||||||||||
(Dollars in Millions) | ||||||||||||||
Beginning of the Year | $ | $ | ||||||||||||
Additions for Securities for which No Previous Expected Credit Losses were Recognized | ||||||||||||||
Reduction Due to Sales | — | — | ||||||||||||
Net Increase (Decrease) in Allowance on Securities for which Expected Credit Losses were Previously Recognized | ||||||||||||||
Write-offs Charged Against Allowance | ( | ( | ||||||||||||
End of the Period | $ | $ |
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 | ||||||||||||||||||||
Reduction Due to Sales | ( | ( | ||||||||||||||||||
Net Increase (Decrease) in Allowance on Securities for which Expected Credit Losses were Previously Recognized | ||||||||||||||||||||
Write-offs Charged Against Allowance | ( | ( | ||||||||||||||||||
End of the Period | $ | $ | $ |
(Dollars in Millions) | Mar 31, 2022 | Dec 31, 2021 | ||||||||||||
Company-Owned Life Insurance | $ | $ | ||||||||||||
Loans to Policyholders at Unpaid Principal | ||||||||||||||
Real Estate at Depreciated Cost | ||||||||||||||
Mortgage Loans and Other | ||||||||||||||
Total | $ | $ |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Investment Income: | ||||||||||||||
Interest on Fixed Income Securities | $ | $ | ||||||||||||
Dividends on Equity Securities Excluding Alternative Investments | ||||||||||||||
Alternative Investments: | ||||||||||||||
Equity Method Limited Liability Investments | ||||||||||||||
Limited Liability Investments Included in Equity Securities | ||||||||||||||
Total Alternative Investments | ||||||||||||||
Short-term Investments | ||||||||||||||
Loans to Policyholders | ||||||||||||||
Real Estate | ||||||||||||||
Other | ||||||||||||||
Total Investment Income | ||||||||||||||
Investment Expenses: | ||||||||||||||
Real Estate | ||||||||||||||
Other Investment Expenses | ||||||||||||||
Total Investment Expenses | ||||||||||||||
Net Investment Income | $ | $ |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Fixed Maturities: | ||||||||||||||
Gains on Sales | $ | $ | ||||||||||||
Losses on Sales | ( | ( | ||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||
(Dollars in Millions) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Measured at Net Asset Value | Total Fair Value | |||||||||||||||||||||||||||
Fixed Maturities: | ||||||||||||||||||||||||||||||||
U.S. Government and Government Agencies and Authorities | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
States and Political Subdivisions | ||||||||||||||||||||||||||||||||
Foreign Governments | ||||||||||||||||||||||||||||||||
Corporate Securities: | ||||||||||||||||||||||||||||||||
Bonds and Notes | ||||||||||||||||||||||||||||||||
Redeemable Preferred Stock | ||||||||||||||||||||||||||||||||
Collateralized Loan Obligations | ||||||||||||||||||||||||||||||||
Other Mortgage and Asset-backed | ||||||||||||||||||||||||||||||||
Total Investments in Fixed Maturities | ||||||||||||||||||||||||||||||||
Equity Securities at Fair Value: | ||||||||||||||||||||||||||||||||
Preferred Stocks: | ||||||||||||||||||||||||||||||||
Finance, Insurance and Real Estate | ||||||||||||||||||||||||||||||||
Other Industries | ||||||||||||||||||||||||||||||||
Common Stocks: | ||||||||||||||||||||||||||||||||
Finance, Insurance and Real Estate | ||||||||||||||||||||||||||||||||
Other Industries | ||||||||||||||||||||||||||||||||
Other Equity Interests: | ||||||||||||||||||||||||||||||||
Exchange Traded Funds | ||||||||||||||||||||||||||||||||
Limited Liability Companies and Limited Partnerships | ||||||||||||||||||||||||||||||||
Total Investments in Equity Securities at Fair Value | ||||||||||||||||||||||||||||||||
Convertible Securities at Fair Value | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
Fair Value Measurements | ||||||||||||||||||||||||||||||||
(Dollars in Millions) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Measured at Net Asset Value | Total Fair Value | |||||||||||||||||||||||||||
Fixed Maturities: | ||||||||||||||||||||||||||||||||
U.S. Government and Government Agencies and Authorities | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
States and Political Subdivisions | ||||||||||||||||||||||||||||||||
Foreign Governments | ||||||||||||||||||||||||||||||||
Corporate Securities: | ||||||||||||||||||||||||||||||||
Bonds and Notes | ||||||||||||||||||||||||||||||||
Redeemable Preferred Stocks | ||||||||||||||||||||||||||||||||
Collateralized Loan Obligations | ||||||||||||||||||||||||||||||||
Other Mortgage and Asset-backed | ||||||||||||||||||||||||||||||||
Total Investments in Fixed Maturities | ||||||||||||||||||||||||||||||||
Equity Securities at Fair Value: | ||||||||||||||||||||||||||||||||
Preferred Stocks: | ||||||||||||||||||||||||||||||||
Finance, Insurance and Real Estate | ||||||||||||||||||||||||||||||||
Other Industries | ||||||||||||||||||||||||||||||||
Common Stocks: | ||||||||||||||||||||||||||||||||
Finance, Insurance and Real Estate | ||||||||||||||||||||||||||||||||
Other Industries | ||||||||||||||||||||||||||||||||
Other Equity Interests: | ||||||||||||||||||||||||||||||||
Exchange Traded Funds | ||||||||||||||||||||||||||||||||
Limited Liability Companies and Limited Partnerships | ||||||||||||||||||||||||||||||||
Total Investments in Equity Securities at Fair Value | ||||||||||||||||||||||||||||||||
Other Investments: | ||||||||||||||||||||||||||||||||
Convertible Securities at Fair Value | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
(Dollars in Millions) | Unobservable Input | Total Fair Value | Range of Unobservable Inputs | Weighted-average Yield | ||||||||||||||||||||||||||||
Investment-grade | Market Yield | $ | % | - | % | % | ||||||||||||||||||||||||||
Non-investment-grade: | ||||||||||||||||||||||||||||||||
Senior Debt | Market Yield | - | ||||||||||||||||||||||||||||||
Junior Debt | Market Yield | - | ||||||||||||||||||||||||||||||
Other | Various | |||||||||||||||||||||||||||||||
Total Level 3 Fixed Maturity Investments | $ |
(Dollars in Millions) | Unobservable Input | Total Fair Value | Range of Unobservable Inputs | Weighted-average Yield | ||||||||||||||||||||||||||||
Investment-grade | Market Yield | $ | % | - | % | % | ||||||||||||||||||||||||||
Non-investment-grade: | ||||||||||||||||||||||||||||||||
Senior Debt | Market Yield | - | ||||||||||||||||||||||||||||||
Junior Debt | Market Yield | - | ||||||||||||||||||||||||||||||
Other | Various | |||||||||||||||||||||||||||||||
Total Level 3 Fixed Maturity Investments | $ |
Fixed Maturities | Equity Securities | |||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Corporate Bonds and Notes | Redeemable Preferred Stocks | Collateralized Loan Obligations | Other Mortgage- and Asset- backed | Preferred and Common Stocks | Total | ||||||||||||||||||||||||||||||||
Balance at Beginning of Period | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Total Gains (Losses): | ||||||||||||||||||||||||||||||||||||||
Included in Condensed Consolidated Statement of Income | ( | ( | ||||||||||||||||||||||||||||||||||||
Included in Other Comprehensive Income (Loss) | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Purchases | ||||||||||||||||||||||||||||||||||||||
Settlements | ||||||||||||||||||||||||||||||||||||||
Sales | ( | ( | ||||||||||||||||||||||||||||||||||||
Transfers into Level 3 | ||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | ||||||||||||||||||||||||||||||||||||||
Balance at End of Period | $ | $ | $ | $ | $ | $ |
Fixed Maturities | |||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Corporate Bonds and Notes | States and Political Sub- divisions | Redeemable Preferred Stocks | Collateralized Loan Obligations | Other Mortgage- and Asset- backed | Total | |||||||||||||||||||||||||||||
Balance at Beginning of Year | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Total Gains (Losses): | |||||||||||||||||||||||||||||||||||
Included in Condensed Consolidated Statement of Income | ( | ( | |||||||||||||||||||||||||||||||||
Included in Other Comprehensive Income (Loss) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Purchases | |||||||||||||||||||||||||||||||||||
Settlements | |||||||||||||||||||||||||||||||||||
Sales | ( | ( | ( | ||||||||||||||||||||||||||||||||
Transfers into Level 3 | |||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | ( | ( | |||||||||||||||||||||||||||||||||
Balance at End of Period | $ | $ | $ | $ | $ | $ |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||
(Dollars in Millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||
Loans to Policyholders | $ | $ | $ | $ | ||||||||||||||||||||||
Short-term Investments | ||||||||||||||||||||||||||
Mortgage Loans | ||||||||||||||||||||||||||
Company-Owned Life Insurance | $ | $ | ||||||||||||||||||||||||
Equity Securities at Modified Cost | ||||||||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||
Long-term Debt | $ | $ | $ | $ | ||||||||||||||||||||||
Policyholder Obligations |
Three Months Ended | ||||||||||||||
(Dollars in millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Fundings | $ | $ | ||||||||||||
Cash distribution from investment | ||||||||||||||
Gain (loss) on investments in Alternative Energy Partnership | ( | ( | ||||||||||||
Income tax credits recognized | ||||||||||||||
Tax benefit (expense) recognized from Alternative Energy Partnership |
(Dollars in millions) | Mar 31, 2022 | |||||||
Cash | $ | |||||||
Equipment, net of depreciation | ||||||||
Other assets | ||||||||
Total unconsolidated assets | ||||||||
Maximum loss exposure |
(Dollars in Millions) | Net Unrealized Gains (Losses) on Other Investments | Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses | Net Unrecognized Postretirement Benefit Costs | Gain (Loss) on Cash Flow Hedges | Total | |||||||||||||||||||||||||||
Balance as of January 1, 2022 | ( | ( | ( | |||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) Before Reclassifications | ( | ( | ( | |||||||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Net of Tax (Expense) Benefit of $( | ||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) Net of Tax (Expense) Benefit of $ | ( | ( | ( | |||||||||||||||||||||||||||||
Balance as of March 31, 2022 | ( | ( | ( | ( |
(Dollars in Millions) | Net Unrealized Gains (Losses) on Other Investments | Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses | Net Unrecognized Postretirement Benefit Costs | Gain (Loss) on Cash Flow Hedges | Total | |||||||||||||||||||||||||||
Balance as of January 1, 2021 | ( | ( | ( | |||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) Before Reclassifications | ( | ( | ( | |||||||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Net of Tax (Expense) Benefit of $ | ( | ( | ||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) Net of Tax (Expense) Benefit of $ | ( | ( | ( | |||||||||||||||||||||||||||||
Balance as of March 31, 2021 | ( | ( | ( |
Components of AOCI | Consolidated Statements of Income Line Item Affected by Reclassifications | ||||
Net unrealized Gains (Losses) on Other Investments and Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses | Net Realized Gains on Sales of Investments and Impairment Losses | ||||
Net Unrecognized Postretirement Benefit Costs | Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses, Insurance Expenses, and Interest and Other Expenses | ||||
Gain (Loss) on Cash Flow Hedges | Interest and Other Expenses |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Interest Cost on Projected Benefit Obligation | $ | $ | ||||||||||||
Expected Return on Plan Assets | ( | ( | ||||||||||||
Amortization of Prior Service Cost | — | |||||||||||||
Amortization of Net Actuarial Loss | ||||||||||||||
Total Pension (Benefit) Expense | $ | $ | ||||||||||||
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Service Cost | $ | $ | ||||||||||||
Interest Cost on Accumulated Postretirement Benefit Obligation | ||||||||||||||
Amortization of Prior Service Credit | ( | ( | ||||||||||||
Amortization of Net Gain | ( | ( | ||||||||||||
Total OPEB (Benefit) Expense | $ | ( | $ | ( |
(Dollars in Millions) | Mar 31, 2022 | Dec 31, 2021 | ||||||||||||
FHLB Funding Agreements | $ | $ | ||||||||||||
Universal Life-type Policyholder Account Balances | ||||||||||||||
Total | $ | $ |
(Dollars in Millions) | Mar 31, 2022 | Dec 31, 2021 | ||||||||||||
Liability under Funding Agreements | $ | $ | ||||||||||||
Fair Value of Collateral Pledged | ||||||||||||||
FHLB of Chicago Common Stock Owned at Cost |
(Dollars in Millions) | Mar 31, 2022 | Dec 31, 2021 | ||||||||||||
Senior Notes: | ||||||||||||||
$ | $ | |||||||||||||
Total Long-term Debt Outstanding | $ | $ |
(Dollars in Millions) | Mar 31, 2022 | Dec 31, 2021 | ||||||||||||
Operating Lease Right-of-Use Assets | $ | $ | ||||||||||||
Operating Lease Liabilities |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Lease Cost: | ||||||||||||||
Amortization of Right-of-Use Assets - Finance Leases | $ | $ | ||||||||||||
Operating Lease Cost | ||||||||||||||
Variable Lease Cost | ||||||||||||||
Short-Term Lease Cost (1) | ||||||||||||||
Total Lease Expense | $ | $ | ||||||||||||
Less: Sub-Lease Income | ||||||||||||||
Total Lease Cost | $ | $ | ||||||||||||
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Operating Cash Flows from Operating Lease (Fixed Payments) | $ | $ | ||||||||||||
Operating Cash Flows from Operating Lease (Liability Reduction) | ||||||||||||||
Financing Cash Flows from Finance Leases | ||||||||||||||
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities |
Three Months Ended | ||||||||||||||
Mar 31, 2022 | Mar 31, 2021 | |||||||||||||
Weighted-average Remaining Lease Term - Finance Leases | ||||||||||||||
Weighted-average Remaining Lease Term - Operating Leases | ||||||||||||||
Weighted-average Discount Rate - Finance Leases | % | % | ||||||||||||
Weighted-average Discount Rate - Operating Leases | % | % |
(Dollars in Millions) | ||||||||
Remainder of 2022 | $ | |||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 and Thereafter | ||||||||
Total Future Payments | $ | |||||||
Less Imputed Interest | ||||||||
Present Value of Minimum Lease Payments | $ |
Three Months Ended | ||||||||||||||||||||
(Dollars in Millions and Net of Income Taxes) | Mar 31, 2022 | Mar 31, 2021 | Increase (Decrease) | |||||||||||||||||
Net Income (Loss) | $ | (94.8) | $ | 123.2 | $ | (218.0) | ||||||||||||||
Less: | ||||||||||||||||||||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | (22.3) | 41.2 | (63.5) | |||||||||||||||||
Net Realized Gains on Sales of Investments | 1.2 | 10.9 | (9.7) | |||||||||||||||||
Impairment Losses | (7.0) | (3.2) | (3.8) | |||||||||||||||||
Acquisition Related Transaction, Integration and Other Costs | (3.7) | (12.9) | 9.2 | |||||||||||||||||
Loss from Early Extinguishment of Debt | (2.9) | — | $ | (2.9) | ||||||||||||||||
Adjusted Consolidated Net Operating Income (Loss) | $ | (60.1) | $ | 87.2 | $ | (147.3) | ||||||||||||||
Components of Adjusted Consolidated Net Operating Income (Loss): | ||||||||||||||||||||
Segment Net Operating Income (Loss): | ||||||||||||||||||||
Specialty Property & Casualty Insurance | $ | (44.7) | $ | 80.1 | $ | (124.8) | ||||||||||||||
Preferred Property & Casualty Insurance | (6.1) | 9.6 | (15.7) | |||||||||||||||||
Life & Health Insurance | 3.1 | 7.3 | (4.2) | |||||||||||||||||
Total Segment Net Operating Income (Loss) | (47.7) | 97.0 | (144.7) | |||||||||||||||||
Corporate and Other Net Operating Income (Loss) From: | ||||||||||||||||||||
Other | (12.4) | (9.8) | (2.6) | |||||||||||||||||
Corporate and Other Net Operating Income (Loss) | (12.4) | (9.8) | (2.6) | |||||||||||||||||
Adjusted Consolidated Net Operating Income (Loss) | $ | (60.1) | $ | 87.2 | $ | (147.3) |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Net Premiums Written | $ | 1,023.7 | $ | 972.0 | ||||||||||
Earned Premiums | $ | 1,021.6 | $ | 877.6 | ||||||||||
Net Investment Income | 34.9 | 35.0 | ||||||||||||
Change in Value of Alternative Energy Partnership Investments | (8.4) | (7.3) | ||||||||||||
Other Income | 1.7 | 0.9 | ||||||||||||
Total Revenues | 1,049.8 | 906.2 | ||||||||||||
Incurred Losses and LAE related to: | ||||||||||||||
Current Year: | ||||||||||||||
Non-catastrophe Losses and LAE | 911.7 | 650.0 | ||||||||||||
Catastrophe Losses and LAE | 2.1 | 1.7 | ||||||||||||
Prior Years: | ||||||||||||||
Non-catastrophe Losses and LAE | (3.8) | (1.4) | ||||||||||||
Catastrophe Losses and LAE | 0.7 | 0.4 | ||||||||||||
Total Incurred Losses and LAE | 910.7 | 650.7 | ||||||||||||
Insurance Expenses | 199.3 | 170.3 | ||||||||||||
Operating Income (Loss) | (60.2) | 85.2 | ||||||||||||
Income Tax Benefit (Expense) | 15.5 | (5.1) | ||||||||||||
Segment Net Operating Income (Loss) | $ | (44.7) | $ | 80.1 | ||||||||||
Ratios Based On Earned Premiums | ||||||||||||||
Current Year Non-catastrophe Losses and LAE Ratio | 89.2 | % | 74.1 | % | ||||||||||
Current Year Catastrophe Losses and LAE Ratio | 0.2 | 0.2 | ||||||||||||
Prior Years Non-catastrophe Losses and LAE Ratio | (0.4) | (0.2) | ||||||||||||
Prior Years Catastrophe Losses and LAE Ratio | 0.1 | — | ||||||||||||
Total Incurred Loss and LAE Ratio | 89.1 | 74.1 | ||||||||||||
Insurance Expense Ratio | 19.5 | 19.4 | ||||||||||||
Combined Ratio | 108.6 | % | 93.5 | % | ||||||||||
Underlying Combined Ratio | ||||||||||||||
Current Year Non-catastrophe Losses and LAE Ratio | 89.2 | % | 74.1 | % | ||||||||||
Insurance Expense Ratio | 19.5 | 19.4 | ||||||||||||
Underlying Combined Ratio | 108.7 | % | 93.5 | % | ||||||||||
Non-GAAP Measure Reconciliation | ||||||||||||||
Combined Ratio | 108.6 | % | 93.5 | % | ||||||||||
Less: | ||||||||||||||
Current Year Catastrophe Losses and LAE Ratio | 0.2 | 0.2 | ||||||||||||
Prior Years Non-catastrophe Losses and LAE Ratio | (0.4) | (0.2) | ||||||||||||
Prior Years Catastrophe Losses and LAE Ratio | 0.1 | — | ||||||||||||
Underlying Combined Ratio | 108.7 | % | 93.5 | % |
(Dollars in Millions) | Mar 31, 2022 | Dec 31, 2021 | ||||||||||||
Insurance Reserves: | ||||||||||||||
Personal Automobile | $ | 1,952.3 | $ | 1,985.8 | ||||||||||
Commercial Automobile | 356.5 | 333.9 | ||||||||||||
Insurance Reserves | $ | 2,308.8 | $ | 2,319.7 | ||||||||||
Insurance Reserves: | ||||||||||||||
Loss and Allocated LAE Reserves: | ||||||||||||||
Case and Allocated LAE | $ | 1,166.0 | $ | 1,157.9 | ||||||||||
Incurred But Not Reported | 934.0 | 953.0 | ||||||||||||
Total Loss and LAE Reserves | 2,100.0 | 2,110.9 | ||||||||||||
Unallocated LAE Reserves | 208.8 | 208.8 | ||||||||||||
Insurance Reserves | $ | 2,308.8 | $ | 2,319.7 |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Net Premiums Written | $ | 884.8 | $ | 861.5 | ||||||||||
Earned Premiums | $ | 901.7 | $ | 785.4 | ||||||||||
Incurred Losses and LAE related to: | ||||||||||||||
Current Year: | ||||||||||||||
Non-catastrophe Losses and LAE | $ | 827.7 | $ | 586.4 | ||||||||||
Catastrophe Losses and LAE | 2.0 | 1.6 | ||||||||||||
Prior Years: | ||||||||||||||
Non-catastrophe Losses and LAE | (9.0) | (4.4) | ||||||||||||
Catastrophe Losses and LAE | 0.7 | 0.4 | ||||||||||||
Total Incurred Losses and LAE | $ | 821.4 | $ | 584.0 | ||||||||||
Ratios Based On Earned Premiums | ||||||||||||||
Current Year Non-catastrophe Losses and LAE Ratio | 91.8 | % | 74.7 | % | ||||||||||
Current Year Catastrophe Losses and LAE Ratio | 0.2 | 0.2 | ||||||||||||
Prior Years Non-catastrophe Losses and LAE Ratio | (1.0) | (0.6) | ||||||||||||
Prior Years Catastrophe Losses and LAE Ratio | 0.1 | 0.1 | ||||||||||||
Total Incurred Loss and LAE Ratio | 91.1 | % | 74.4 | % |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Net Premiums Written | $ | 138.9 | $ | 110.5 | ||||||||||
Earned Premiums | $ | 119.9 | $ | 92.2 | ||||||||||
Incurred Losses and LAE related to: | ||||||||||||||
Current Year: | ||||||||||||||
Non-catastrophe Losses and LAE | $ | 84.0 | $ | 63.6 | ||||||||||
Catastrophe Losses and LAE | 0.1 | 0.1 | ||||||||||||
Prior Years: | ||||||||||||||
Non-catastrophe Losses and LAE | 5.2 | 3.0 | ||||||||||||
Catastrophe Losses and LAE | — | — | ||||||||||||
Total Incurred Losses and LAE | $ | 89.3 | $ | 66.7 | ||||||||||
Ratios Based On Earned Premiums | ||||||||||||||
Current Year Non-catastrophe Losses and LAE Ratio | 70.1 | % | 68.9 | % | ||||||||||
Current Year Catastrophe Losses and LAE Ratio | 0.1 | 0.1 | ||||||||||||
Prior Years Non-catastrophe Losses and LAE Ratio | 4.3 | 3.3 | ||||||||||||
Prior Years Catastrophe Losses and LAE Ratio | — | — | ||||||||||||
Total Incurred Loss and LAE Ratio | 74.5 | % | 72.3 | % |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Net Premiums Written | $ | 137.4 | $ | 154.4 | ||||||||||
Earned Premiums | $ | 155.6 | $ | 162.2 | ||||||||||
Net Investment Income | 12.5 | 15.9 | ||||||||||||
Changes in Value of Alternative Energy Partnership Investments | (3.9) | (4.1) | ||||||||||||
Other Income | — | — | ||||||||||||
Total Revenues | 164.2 | 174.0 | ||||||||||||
Incurred Losses and LAE related to: | ||||||||||||||
Current Year: | ||||||||||||||
Non-catastrophe Losses and LAE | 112.2 | 96.2 | ||||||||||||
Catastrophe Losses and LAE | 11.4 | 24.0 | ||||||||||||
Prior Years: | ||||||||||||||
Non-catastrophe Losses and LAE | 2.1 | 0.1 | ||||||||||||
Catastrophe Losses and LAE | (3.2) | (0.3) | ||||||||||||
Total Incurred Losses and LAE | 122.5 | 120.0 | ||||||||||||
Insurance Expenses | 51.2 | 51.0 | ||||||||||||
Operating Income (Loss) | (9.5) | 3.0 | ||||||||||||
Income Tax Benefit (Expense) | 3.4 | 6.6 | ||||||||||||
Segment Net Operating Income (Loss) | $ | (6.1) | $ | 9.6 | ||||||||||
Ratios Based On Earned Premiums | ||||||||||||||
Current Year Non-catastrophe Losses and LAE Ratio | 72.2 | % | 59.3 | % | ||||||||||
Current Year Catastrophe Losses and LAE Ratio | 7.3 | 14.8 | ||||||||||||
Prior Years Non-catastrophe Losses and LAE Ratio | 1.3 | 0.1 | ||||||||||||
Prior Years Catastrophe Losses and LAE Ratio | (2.1) | (0.2) | ||||||||||||
Total Incurred Loss and LAE Ratio | 78.7 | 74.0 | ||||||||||||
Insurance Expense Ratio | 32.9 | 31.4 | ||||||||||||
Combined Ratio | 111.6 | % | 105.4 | % | ||||||||||
Underlying Combined Ratio | ||||||||||||||
Current Year Non-catastrophe Losses and LAE Ratio | 72.2 | % | 59.3 | % | ||||||||||
Insurance Expense Ratio | 32.9 | 31.4 | ||||||||||||
Underlying Combined Ratio | 105.1 | % | 90.7 | % | ||||||||||
Non-GAAP Measure Reconciliation | ||||||||||||||
Combined Ratio | 111.6 | % | 105.4 | % | ||||||||||
Less: | ||||||||||||||
Current Year Catastrophe Losses and LAE Ratio | 7.3 | 14.8 | ||||||||||||
Prior Years Non-catastrophe Losses and LAE Ratio | 1.3 | 0.1 | ||||||||||||
Prior Years Catastrophe Losses and LAE Ratio | (2.1) | (0.2) | ||||||||||||
Underlying Combined Ratio | 105.1 | % | 90.7 | % |
Three Months Ended | ||||||||||||||||||||||||||
Mar 31, 2022 | Mar 31, 2021 | |||||||||||||||||||||||||
(Dollars in Millions) | Number of Events | Losses and LAE | Number of Events | Losses and LAE | ||||||||||||||||||||||
Range of Losses and LAE Per Event: | ||||||||||||||||||||||||||
Below $5 | 11 | $ | 11.4 | 11 | $ | 8.9 | ||||||||||||||||||||
$5 - $10 | — | — | — | — | ||||||||||||||||||||||
$10 - $15 | — | — | — | — | ||||||||||||||||||||||
$15 - $20 | — | — | 1 | 15.1 | ||||||||||||||||||||||
$20 - $25 | — | — | — | — | ||||||||||||||||||||||
Greater Than $25 | — | — | — | — | ||||||||||||||||||||||
Total | 11 | $ | 11.4 | 12 | $ | 24.0 |
(Dollars in Millions) | Mar 31, 2022 | Dec 31, 2021 | ||||||||||||
Insurance Reserves: | ||||||||||||||
Personal Automobile | $ | 307.9 | $ | 308.6 | ||||||||||
Homeowners | 93.1 | 95.4 | ||||||||||||
Other | 30.6 | 29.2 | ||||||||||||
Insurance Reserves | $ | 431.6 | $ | 433.2 | ||||||||||
Insurance Reserves: | ||||||||||||||
Loss and Allocated LAE Reserves: | ||||||||||||||
Case and Allocated LAE | $ | 271.1 | $ | 272.5 | ||||||||||
Incurred But Not Reported | 131.8 | 131.9 | ||||||||||||
Total Loss and LAE Reserves | 402.9 | 404.4 | ||||||||||||
Unallocated LAE Reserves | 28.7 | 28.8 | ||||||||||||
Insurance Reserves | $ | 431.6 | $ | 433.2 |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Net Premiums Written | $ | 84.2 | $ | 100.4 | ||||||||||
Earned Premiums | $ | 96.0 | $ | 103.0 | ||||||||||
Incurred Losses and LAE related to: | ||||||||||||||
Current Year: | ||||||||||||||
Non-catastrophe Losses and LAE | $ | 80.5 | $ | 67.8 | ||||||||||
Catastrophe Losses and LAE | 0.5 | 0.6 | ||||||||||||
Prior Years: | ||||||||||||||
Non-catastrophe Losses and LAE | 1.5 | 1.2 | ||||||||||||
Catastrophe Losses and LAE | 0.1 | 0.1 | ||||||||||||
Total Incurred Losses and LAE | $ | 82.6 | $ | 69.7 | ||||||||||
Ratios Based On Earned Premiums | ||||||||||||||
Current Year Non-catastrophe Losses and LAE Ratio | 83.8 | % | 65.8 | % | ||||||||||
Current Year Catastrophe Losses and LAE Ratio | 0.5 | 0.6 | ||||||||||||
Prior Years Non-catastrophe Losses and LAE Ratio | 1.6 | 1.2 | ||||||||||||
Prior Years Catastrophe Losses and LAE Ratio | 0.1 | 0.1 | ||||||||||||
Total Incurred Loss and LAE Ratio | 86.0 | % | 67.7 | % |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Net Premiums Written | $ | 45.5 | $ | 46.1 | ||||||||||
Earned Premiums | $ | 51.3 | $ | 50.8 | ||||||||||
Incurred Losses and LAE related to: | ||||||||||||||
Current Year: | ||||||||||||||
Non-catastrophe Losses and LAE | $ | 27.5 | $ | 24.2 | ||||||||||
Catastrophe Losses and LAE | 10.8 | 22.0 | ||||||||||||
Prior Years: | ||||||||||||||
Non-catastrophe Losses and LAE | (1.6) | (2.5) | ||||||||||||
Catastrophe Losses and LAE | (2.8) | (0.1) | ||||||||||||
Total Incurred Losses and LAE | $ | 33.9 | $ | 43.6 | ||||||||||
Ratios Based On Earned Premiums | ||||||||||||||
Current Year Non-catastrophe Losses and LAE Ratio | 53.6 | % | 47.6 | % | ||||||||||
Current Year Catastrophe Losses and LAE Ratio | 21.1 | 43.3 | ||||||||||||
Prior Years Non-catastrophe Losses and LAE Ratio | (3.1) | (4.9) | ||||||||||||
Prior Years Catastrophe Losses and LAE Ratio | (5.5) | (0.2) | ||||||||||||
Total Incurred Loss and LAE Ratio | 66.1 | % | 85.8 | % |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Net Premiums Written | $ | 7.7 | $ | 7.9 | ||||||||||
Earned Premiums | $ | 8.3 | $ | 8.4 | ||||||||||
Incurred Losses and LAE related to: | ||||||||||||||
Current Year: | ||||||||||||||
Non-catastrophe Losses and LAE | $ | 4.2 | $ | 4.2 | ||||||||||
Catastrophe Losses and LAE | 0.1 | 1.4 | ||||||||||||
Prior Years: | ||||||||||||||
Non-catastrophe Losses and LAE | 2.2 | 1.4 | ||||||||||||
Catastrophe Losses and LAE | (0.5) | (0.3) | ||||||||||||
Total Incurred Losses and LAE | $ | 6.0 | $ | 6.7 | ||||||||||
Ratios Based On Earned Premiums | ||||||||||||||
Current Year Non-catastrophe Losses and LAE Ratio | 50.6 | % | 50.0 | % | ||||||||||
Current Year Catastrophe Losses and LAE Ratio | 1.2 | 16.7 | ||||||||||||
Prior Years Non-catastrophe Losses and LAE Ratio | 26.5 | 16.7 | ||||||||||||
Prior Years Catastrophe Losses and LAE Ratio | (6.0) | (3.6) | ||||||||||||
Total Incurred Loss and LAE Ratio | 72.3 | % | 79.8 | % |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Earned Premiums | $ | 161.4 | $ | 161.0 | ||||||||||
Net Investment Income | 49.4 | 51.1 | ||||||||||||
Changes in Value of Alternative Energy Partnership Investments | (4.4) | (4.0) | ||||||||||||
Other Income | — | 0.1 | ||||||||||||
Total Revenues | 206.4 | 208.2 | ||||||||||||
Policyholders’ Benefits and Incurred Losses and LAE | 120.1 | 118.7 | ||||||||||||
Insurance Expenses | 85.1 | 90.3 | ||||||||||||
Operating Income (Loss) | 1.2 | (0.8) | ||||||||||||
Income Tax Benefit (Expense) | 1.9 | 8.1 | ||||||||||||
Segment Net Operating Income (Loss) | $ | 3.1 | $ | 7.3 |
(Dollars in Millions) | Mar 31, 2022 | Dec 31, 2021 | ||||||||||||
Insurance Reserves: | ||||||||||||||
Future Policyholder Benefits | $ | 3,467.5 | $ | 3,454.1 | ||||||||||
Incurred Losses and LAE Reserves: | ||||||||||||||
Life | 63.6 | 60.7 | ||||||||||||
Accident and Health | 25.2 | 26.1 | ||||||||||||
Property | 3.1 | 3.6 | ||||||||||||
Total Incurred Losses and LAE Reserves | 91.9 | 90.4 | ||||||||||||
Insurance Reserves | $ | 3,559.4 | $ | 3,544.5 |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Earned Premiums | $ | 101.3 | $ | 98.1 | ||||||||||
Net Investment Income | 47.9 | 49.6 | ||||||||||||
Changes in Value of Alternative Energy Partnership Investments | (4.0) | (3.8) | ||||||||||||
Total Revenues | 145.2 | 143.9 | ||||||||||||
Policyholders’ Benefits and Incurred Losses and LAE | 90.6 | 87.9 | ||||||||||||
Insurance Expenses | 57.4 | 58.0 | ||||||||||||
Operating Income (Loss) | (2.8) | (2.0) | ||||||||||||
Income Tax Benefit (Expense) | 2.6 | 8.0 | ||||||||||||
Total Product Line Net Operating Income (Loss) | $ | (0.2) | $ | 6.0 |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Earned Premiums | $ | 45.8 | $ | 47.4 | ||||||||||
Net Investment Income | 0.7 | 1.0 | ||||||||||||
Changes in Value of Alternative Energy Partnership Investments | (0.1) | (0.1) | ||||||||||||
Other Income | — | 0.1 | ||||||||||||
Total Revenues | 46.4 | 48.4 | ||||||||||||
Policyholders’ Benefits and Incurred Losses and LAE | 23.5 | 24.5 | ||||||||||||
Insurance Expenses | 20.8 | 24.4 | ||||||||||||
Operating Income (Loss) | 2.1 | (0.5) | ||||||||||||
Income Tax Benefit (Expense) | (0.4) | 0.2 | ||||||||||||
Total Product Line Net Operating Income (Loss) | $ | 1.7 | $ | (0.3) |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Earned Premiums | $ | 14.3 | $ | 15.5 | ||||||||||
Net Investment Income (Loss) | 0.8 | 0.5 | ||||||||||||
Changes in Value of Alternative Energy Partnership Investments | (0.3) | (0.1) | ||||||||||||
Total Revenues | 14.8 | 15.9 | ||||||||||||
Incurred Losses and LAE related to: | ||||||||||||||
Current Year: | ||||||||||||||
Non-catastrophe Losses and LAE | 4.1 | 3.2 | ||||||||||||
Catastrophe Losses and LAE | 0.4 | 1.9 | ||||||||||||
Prior Years: | ||||||||||||||
Non-catastrophe Losses and LAE | 0.6 | 0.7 | ||||||||||||
Catastrophe Losses and LAE | 0.9 | 0.5 | ||||||||||||
Total Incurred Losses and LAE | 6.0 | 6.3 | ||||||||||||
Insurance Expenses | 6.9 | 7.9 | ||||||||||||
Operating Income (Loss) | 1.9 | 1.7 | ||||||||||||
Income Tax Benefit (Expense) | (0.3) | (0.1) | ||||||||||||
Total Product Line Net Operating Income (Loss) | $ | 1.6 | $ | 1.6 | ||||||||||
Ratios Based On Earned Premiums | ||||||||||||||
Current Year Non-catastrophe Losses and LAE Ratio | 28.7 | % | 20.6 | % | ||||||||||
Current Year Catastrophe Losses and LAE Ratio | 2.8 | 12.3 | ||||||||||||
Prior Years Non-catastrophe Losses and LAE Ratio | 4.2 | 4.5 | ||||||||||||
Prior Years Catastrophe Losses and LAE Ratio | 6.3 | 3.2 | ||||||||||||
Total Incurred Loss and LAE Ratio | 42.0 | % | 40.6 | % |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Investment Income: | ||||||||||||||
Interest on Fixed Income Securities | $ | 68.7 | $ | 69.0 | ||||||||||
Dividends on Equity Securities Excluding Alternative Investments | 1.5 | 2.1 | ||||||||||||
Alternative Investments: | ||||||||||||||
Equity Method Limited Liability Investments | 13.3 | 22.5 | ||||||||||||
Limited Liability Investments Included in Equity Securities | 7.6 | 4.5 | ||||||||||||
Total Alternative Investments | 20.9 | 27.0 | ||||||||||||
Short-term Investments | 0.1 | 1.2 | ||||||||||||
Loans to Policyholders | 5.5 | 5.5 | ||||||||||||
Real Estate | 2.2 | 2.4 | ||||||||||||
Other | 10.0 | 4.7 | ||||||||||||
Total Investment Income | 108.9 | 111.9 | ||||||||||||
Investment Expenses: | ||||||||||||||
Real Estate | 2.5 | 2.1 | ||||||||||||
Other Investment Expenses | 6.4 | 6.7 | ||||||||||||
Total Investment Expenses | 8.9 | 8.8 | ||||||||||||
Net Investment Income | $ | 100.0 | $ | 103.1 |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Recognized in Condensed Consolidated Statements of Income: | ||||||||||||||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | $ | (28.2) | $ | 52.2 | ||||||||||
Gains on Sales | 2.4 | 14.9 | ||||||||||||
Losses on Sales | (0.9) | (1.1) | ||||||||||||
Impairment Losses | (8.9) | (4.0) | ||||||||||||
Net Gains (Losses) Recognized in Condensed Consolidated Statements of Income | (35.6) | 62.0 | ||||||||||||
Recognized in Other Comprehensive Income (Loss) | (651.9) | (366.1) | ||||||||||||
Total Comprehensive Investment Gains (Losses) | $ | (687.5) | $ | (304.1) |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Preferred Stocks | $ | (2.4) | $ | 0.5 | ||||||||||
Common Stocks | 0.4 | 0.4 | ||||||||||||
Other Equity Interests: | ||||||||||||||
Exchange Traded Funds | (30.9) | 25.9 | ||||||||||||
Limited Liability Companies and Limited Partnerships | 4.5 | 23.2 | ||||||||||||
Total Other Equity Interests | (26.4) | 49.1 | ||||||||||||
Income (Loss) from Change in Fair Value of Equity Securities | (28.4) | 50.0 | ||||||||||||
Income (Loss) from Change in Fair Value of Convertible Securities | 0.2 | 2.2 | ||||||||||||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | $ | (28.2) | $ | 52.2 |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Fixed Maturities: | ||||||||||||||
Gains on Sales | $ | 0.4 | $ | 13.2 | ||||||||||
Losses on Sales | (0.8) | (1.1) | ||||||||||||
Equity Securities: | ||||||||||||||
Gains on Sales | 2.0 | 1.7 | ||||||||||||
Losses on Sales | (0.1) | — | ||||||||||||
Net Realized Gains on Sales of Investments | $ | 1.5 | $ | 13.8 | ||||||||||
Gross Gains on Sales | $ | 2.4 | $ | 14.9 | ||||||||||
Gross Losses on Sales | (0.9) | (1.1) | ||||||||||||
Net Realized Gains on Sales of Investments | $ | 1.5 | $ | 13.8 |
Three Months Ended | ||||||||||||||||||||||||||
Mar 31, 2022 | Mar 31, 2021 | |||||||||||||||||||||||||
(Dollars in Millions) | Amount | Number of Issuers | Amount | Number of Issuers | ||||||||||||||||||||||
Fixed Maturities | $ | (8.9) | 17 | $ | (3.2) | 6 | ||||||||||||||||||||
Equity Securities | — | — | (0.8) | 1 | ||||||||||||||||||||||
Impairment Losses | $ | (8.9) | $ | (4.0) |
(Dollars in Millions) | Mar 31, 2022 | Dec 31, 2021 | ||||||||||||||||||||||||||||||
NAIC Rating | Rating | Fair Value | Percentage | Fair Value | Percentage | |||||||||||||||||||||||||||
1 | AAA, AA, A | $ | 5,302.9 | 68.1 | % | $ | 5,351.6 | 67.0 | % | |||||||||||||||||||||||
2 | BBB | 2,087.4 | 26.8 | 2,215.1 | 27.7 | |||||||||||||||||||||||||||
3-4 | BB, B | 307.0 | 4.0 | 331.0 | 4.2 | |||||||||||||||||||||||||||
5-6 | CCC or Lower | 86.6 | 1.1 | 89.2 | 1.1 | |||||||||||||||||||||||||||
Total Investments in Fixed Maturities | $ | 7,783.9 | 100.0 | % | $ | 7,986.9 | 100.0 | % |
Mar 31, 2022 | Dec 31, 2021 | |||||||||||||||||||||||||
(Dollars in Millions) | Fair Value | Percentage of Total Investments | Fair Value | Percentage of Total Investments | ||||||||||||||||||||||
U.S. Government and Government Agencies and Authorities | $ | 630.4 | 6.3 | % | $ | 637.4 | 6.1 | % | ||||||||||||||||||
States and Political Subdivisions: | ||||||||||||||||||||||||||
Revenue Bonds | 1,421.4 | 14.3 | 1,516.1 | 14.6 | ||||||||||||||||||||||
States | 219.3 | 2.2 | 235.8 | 2.3 | ||||||||||||||||||||||
Political Subdivisions | 129.5 | 1.3 | 138.2 | 1.3 | ||||||||||||||||||||||
Foreign Governments | 5.0 | 0.1 | 5.5 | 0.1 | ||||||||||||||||||||||
Total Investments in Governmental Fixed Maturities | $ | 2,405.6 | 24.2 | % | $ | 2,533.0 | 24.4 | % |
Mar 31, 2022 | Dec 31, 2021 | |||||||||||||||||||||||||
(Dollars in Millions) | Fair Value | Percentage of Total Investments | Fair Value | Percentage of Total Investments | ||||||||||||||||||||||
Finance, Insurance and Real Estate | $ | 2,135.8 | 21.4 | % | $ | 1,996.7 | 19.2 | % | ||||||||||||||||||
Manufacturing | 1,445.9 | 14.5 | 1,571.0 | 15.1 | ||||||||||||||||||||||
Transportation, Communication and Utilities | 769.1 | 7.7 | 815.8 | 7.9 | ||||||||||||||||||||||
Services | 597.7 | 6.0 | 617.5 | 5.9 | ||||||||||||||||||||||
Mining | 239.0 | 2.4 | 254.3 | 2.4 | ||||||||||||||||||||||
Retail Trade | 162.4 | 1.6 | 171.4 | 1.7 | ||||||||||||||||||||||
Construction | 20.4 | 0.2 | 13.1 | 0.1 | ||||||||||||||||||||||
Other | 7.9 | 0.1 | 14.1 | 0.1 | ||||||||||||||||||||||
Wholesale Trade | 0.2 | — | — | — | ||||||||||||||||||||||
Total Investments in Non-governmental Fixed Maturities | $ | 5,378.4 | 53.9 | % | $ | 5,453.9 | 52.4 | % |
(Dollars in Millions) | Number of Issues | Aggregate Fair Value | ||||||||||||
Below $5 | 669 | $ | 1,405.8 | |||||||||||
$5 -$10 | 211 | 1,549.2 | ||||||||||||
$10 - $20 | 116 | 1,541.9 | ||||||||||||
$20 - $30 | 30 | 730.8 | ||||||||||||
Greater Than $30 | 4 | 150.6 | ||||||||||||
Total | 1,030 | $ | 5,378.3 |
(Dollars in Millions) | Fair Value | Percentage of Total Investments | ||||||||||||||||||
Fixed Maturities: | ||||||||||||||||||||
States including their Political Subdivisions: | ||||||||||||||||||||
Texas | $ | 136.6 | 1.4 | % | ||||||||||||||||
California | 103.7 | 1.0 | ||||||||||||||||||
New York | 91.4 | 0.9 | ||||||||||||||||||
Georgia | 89.8 | 0.9 | ||||||||||||||||||
Michigan | 76.6 | 0.8 | ||||||||||||||||||
Florida | 70.8 | 0.7 | ||||||||||||||||||
Louisiana | 69.7 | 0.7 | ||||||||||||||||||
Colorado | 65.2 | 0.7 | ||||||||||||||||||
Equity Securities at Fair Value—Other Equity Interests: | ||||||||||||||||||||
Vanguard Total World Stock ETF | 112.1 | 1.1 | ||||||||||||||||||
iShares® Core MSCI Total International Stock ETF | 75.6 | 0.8 | ||||||||||||||||||
Total | $ | 891.5 | 9.0 | % |
Unfunded Commitment | Reported Value | |||||||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2022 | Dec 31, 2021 | |||||||||||||||||
Reported as Equity Method Limited Liability Investments: | ||||||||||||||||||||
Mezzanine Debt | $ | 40.2 | $ | 121.0 | $ | 120.0 | ||||||||||||||
Senior Debt | 49.0 | 25.8 | 27.5 | |||||||||||||||||
Distressed Debt | — | 18.9 | 21.7 | |||||||||||||||||
Secondary Transactions | 2.1 | 12.9 | 11.7 | |||||||||||||||||
Leveraged Buyout | 0.9 | 9.2 | 8.7 | |||||||||||||||||
Growth Equity | — | 1.3 | 0.7 | |||||||||||||||||
Real Estate | — | 29.7 | 29.9 | |||||||||||||||||
Hedge Fund | — | 0.5 | 8.7 | |||||||||||||||||
Other | — | 10.7 | 13.0 | |||||||||||||||||
Total Equity Method Limited Liability Investments | 92.2 | 230.0 | 241.9 | |||||||||||||||||
Alternative Energy Partnership Investments | — | 22.4 | 39.6 | |||||||||||||||||
Reported as Other Equity Interests at Fair Value: | ||||||||||||||||||||
Mezzanine Debt | 52.5 | 131.8 | 129.3 | |||||||||||||||||
Senior Debt | 15.7 | 30.2 | 29.9 | |||||||||||||||||
Distressed Debt | 18.6 | 45.2 | 44.9 | |||||||||||||||||
Secondary Transactions | 5.6 | 3.7 | 4.0 | |||||||||||||||||
Hedge Funds | — | 68.1 | 82.7 | |||||||||||||||||
Leveraged Buyout | 8.3 | 34.8 | 32.2 | |||||||||||||||||
Growth Equity | 0.5 | 4.0 | 2.0 | |||||||||||||||||
Other | — | — | — | |||||||||||||||||
Total Reported as Other Equity Interests at Fair Value | 101.2 | 317.8 | 325.0 | |||||||||||||||||
Reported as Equity Securities at Modified Cost: | ||||||||||||||||||||
Other | — | 7.6 | 7.7 | |||||||||||||||||
Total Reported as Equity Securities at Modified Cost | — | 7.6 | 7.7 | |||||||||||||||||
Total Investments in Limited Liability Companies and Limited Partnerships | $ | 193.4 | $ | 577.8 | $ | 614.2 |
Three Months Ended | ||||||||||||||
(Dollars in Millions) | Mar 31, 2022 | Mar 31, 2021 | ||||||||||||
Insurance Expenses: | ||||||||||||||
Commissions | $ | 191.9 | $ | 195.2 | ||||||||||
General Expenses | 87.1 | 84.6 | ||||||||||||
Taxes, Licenses and Fees | 25.4 | 25.4 | ||||||||||||
Total Costs Incurred | 304.4 | 305.2 | ||||||||||||
Net Policy Acquisition Costs Amortized (Deferred) | (2.5) | (22.4) | ||||||||||||
Amortization of Value of Business Acquired (“VOBA”) | 2.1 | 0.9 | ||||||||||||
Insurance Expenses | 304.0 | 283.7 | ||||||||||||
Loss from Early Extinguishment of Debt | 3.7 | — | ||||||||||||
Interest and Other Expenses: | ||||||||||||||
Interest Expense | 12.7 | 11.1 | ||||||||||||
Other Expenses: | ||||||||||||||
Acquisition Related Transaction, Integration and Other Costs | 4.7 | 16.3 | ||||||||||||
Other | 36.7 | 29.8 | ||||||||||||
Other Expenses | 41.4 | 46.1 | ||||||||||||
Interest and Other Expenses | 54.1 | 57.2 | ||||||||||||
Total Expenses | $ | 361.8 | $ | 340.9 |
(Dollars in Millions) | Mar 31, 2022 | Dec 31, 2021 | ||||||||||||
Senior Notes: | ||||||||||||||
5.000% Senior Notes due September 19, 2022 | $ | — | $ | 276.7 | ||||||||||
4.350% Senior Notes due February 15, 2025 | 449.1 | 449.0 | ||||||||||||
2.400% Senior Notes due September 30, 2030 | 396.3 | 396.2 | ||||||||||||
3.800% Senior Notes due February 23, 2032 | 395.1 | — | ||||||||||||
5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 | 144.7 | — | ||||||||||||
Total Long-term Debt Outstanding | $ | 1,385.2 | $ | 1,121.9 |
DOLLARS IN MILLIONS | March 31, 2022 | March 31, 2021 | ||||||||||||
Net Cash Provided by (Used in) Operating Activities | $ | (18.2) | $ | 140.6 | ||||||||||
Net Cash Provided by (Used in) Investing Activities | (225.1) | 311.7 | ||||||||||||
Net Cash Provided by (Used in) Financing Activities | 392.4 | (111.0) |
Incorporated by Reference | ||||||||||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | File Number | Exhibit | Filing Date | Filed or Furnished Herewith | ||||||||||||||||||||||||||||||||
4.1 | 8-K | 001-18298 | 4.2 | February 23, 2022 | ||||||||||||||||||||||||||||||||||
4.2 | 8-K | 001-18298 | 4.2 | March 10, 2022 | ||||||||||||||||||||||||||||||||||
10.1 | 8-K | 001-18298 | 10.1 | March 17, 2022 | ||||||||||||||||||||||||||||||||||
18.1 | X | |||||||||||||||||||||||||||||||||||||
31.1 | X | |||||||||||||||||||||||||||||||||||||
31.2 | X | |||||||||||||||||||||||||||||||||||||
32.1 | X | |||||||||||||||||||||||||||||||||||||
32.2 | X | |||||||||||||||||||||||||||||||||||||
101.1 | XBRL Instance Document | X | ||||||||||||||||||||||||||||||||||||
101.2 | XBRL Taxonomy Extension Schema Document | X | ||||||||||||||||||||||||||||||||||||
101.3 | XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.4 | XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.5 | XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.6 | XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | X |
Kemper Corporation | ||||||||
Date: | May 2, 2022 | /s/ JOSEPH P. LACHER, JR. | ||||||
Joseph P. Lacher, Jr. | ||||||||
Chairman of the Board, President and Chief Executive Officer (Principal Executive Officer) | ||||||||
Date: | May 2, 2022 | /s/ JAMES J. MCKINNEY | ||||||
James J. McKinney | ||||||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) | ||||||||
Date: | May 2, 2022 | /s/ ANASTASIOS OMIRIDIS | ||||||
Anastasios Omiridis | ||||||||
Senior Vice President and Deputy Chief Financial Officer (Principal Accounting Officer) |
/s/ JOSEPH P. LACHER, JR. | |||||
Joseph P. Lacher, Jr. | |||||
Chairman of the Board, President and Chief Executive Officer |
/s/ JAMES J. MCKINNEY | |||||
James J. McKinney | |||||
Executive Vice President and Chief Financial Officer |
/s/ JOSEPH P. LACHER, JR. | |||||||||||
Name: | Joseph P. Lacher, Jr. | ||||||||||
Title: | Chairman of the Board, President and Chief Executive Officer | ||||||||||
Date: | May 2, 2022 |
/s/ JAMES J. MCKINNEY | |||||||||||
Name: | James J. McKinney | ||||||||||
Title: | Executive Vice President and Chief Financial Officer | ||||||||||
Date: | May 2, 2022 |
Condensed Consolidated Statements of Income - USD ($) $ in Millions |
3 Months Ended | |
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Mar. 31, 2022 |
Mar. 31, 2021 |
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Revenues: | ||
Earned Premiums | $ 1,338.6 | $ 1,200.8 |
Net Investment Income | 100.0 | 103.1 |
Change in Value of Alternative Energy Partnership Investments | (16.7) | (15.4) |
Other Income (Loss) | 2.4 | 1.5 |
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | (28.2) | 52.2 |
Net Realized Gains on Sales of Investments | 1.5 | 13.8 |
Impairment Losses | (8.9) | (4.0) |
Total Revenues | 1,388.7 | 1,352.0 |
Expenses: | ||
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses | 1,153.4 | 889.5 |
Insurance Expenses | 304.0 | 283.7 |
Interest and Other Expenses | 54.1 | 57.2 |
Total Expenses | 1,515.2 | 1,230.4 |
Income (Loss) before Income Taxes | (126.5) | 121.6 |
Income Tax Benefit (Expense) | 31.7 | 1.6 |
Net Income (Loss) | $ (94.8) | $ 123.2 |
Net Income (Loss) Per Unrestricted Share: | ||
Basic (in dollars per share) | $ (1.49) | $ 1.88 |
Diluted (in dollars per share) | $ (1.49) | $ 1.85 |
Loss from Early Extinguishment of Debt | $ 3.7 | $ 0.0 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Fixed maturities, at amortized cost | $ 7,810,400,000 | $ 7,358,200,000 |
Fixed maturities, allowance for credit losses | (9,100,000) | (7,500,000) |
Equity securities, at cost | 466,000,000.0 | 618,700,000 |
Premium receivables, allowance for credit losses | 13,000,000.0 | 13,600,000 |
Long-term Debt | $ 1,343,900,000 | $ 1,152,100,000 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 100,000,000 | |
Common stock, shares outstanding (in shares) | 63,800,041 | 63,684,628 |
Basis of Presentation and Accounting Policies |
3 Months Ended |
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Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Accounting Policies | Basis of Presentation and Accounting Policies The unaudited interim Condensed Consolidated Financial Statements included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) on a basis consistent with reporting interim financial information pursuant to the rules and regulations for Form 10-Q and Article 10 of Regulation S-X of the SEC and include the accounts of Kemper Corporation and its subsidiaries. All intercompany accounts and transactions have been eliminated. Certain financial information that is included in annual financial statements, including certain financial statement footnote disclosures, prepared in accordance with GAAP is not required by the rules and regulations of the SEC for interim financial reporting and has been condensed or omitted. In the opinion of the Company’s management, the Condensed Consolidated Financial Statements include all adjustments necessary to fairly present the financial position, results of operations and cash flows for the interim periods presented. The preparation of interim financial statements requires significant management estimates. Due to this factor and other factors, such as the seasonal nature of some portions of the insurance business, as well as market conditions and the impacts of COVID-19, annualizing the results of operations for the three months ended March 31, 2022 would not necessarily be indicative of the results expected for the full fiscal year. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with the Company’s Consolidated Financial Statements and related notes included in Kemper’s Annual Report for the year ended December 31, 2021. During the first quarter of 2022, the Company began including anticipated net investment income in the premium deficiency analysis performed at the Specialty Property & Casualty Insurance and Preferred Property & Casualty Insurance segments. The Company believes the accounting principle change is preferable as it best reflects the ultimate profitability of an insurance contract in using all cash flows from the in-force policies, inclusive of related investment income, and provides improved comparability with industry peers. This accounting principle change had no impact on the results of the premium deficiency analysis in the current or prior periods presented. Adoption of New Accounting Guidance The Company has adopted all recently issued accounting pronouncements with effective dates prior to January 1, 2022. There were no adoptions of such accounting pronouncements during the three months ended March 31, 2022 that had a material impact on the Company’s interim Condensed Consolidated Financial Statements. Guidance Not Yet Adopted In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to Accounting for Long-Duration Contracts. ASU 2018-12 amends the accounting model for certain long-duration insurance contracts and requires the insurer to provide additional disclosures in annual and interim reporting periods. In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of ASU 2018-12 by one year for public business entities. ASU 2018-12 is now effective for fiscal years beginning after December 15, 2022, and interim periods within those annual periods. The amendments in ASU 2018-12 (i) require cash flow assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited pay long duration contracts to be updated at least annually with the recognition and remeasurement recorded in net income, require the discount rate used in measuring the liability to be an upper-medium grade fixed-income instrument yield, which is to be updated at each reporting period, and recognized in other comprehensive income, (ii) simplify the amortization of deferred acquisition costs to be amortized on a constant level basis over the expected term of the contract, (iii) require all market risk benefits to be measured at fair value, and (iv) enhance certain presentation and disclosure requirements which include disaggregated rollforwards for liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, deferred acquisition costs, and information about significant inputs, judgments and methods used in the measurement. The Company plans to adopt using the modified retrospective transition method and is currently evaluating the impact of this guidance on its financial statements.
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Net Income Per Unrestricted Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Unrestricted Share | Net Income Per Unrestricted Share The Company’s awards of deferred stock units granted to Kemper’s non-employee directors prior to 2019 contain rights to receive non-forfeitable dividend equivalents and participate in the undistributed earnings with common shareholders. Accordingly, the Company is required to apply the two-class method of computing basic and diluted earnings per share. A reconciliation of the numerator and denominator used in the calculation of Basic Net Income (Loss) Per Unrestricted Share and Diluted Net Income (Loss) Per Unrestricted Share for the three months ended March 31, 2022 and 2021 is presented below.
The number of shares of Kemper common stock that were excluded from the calculations of Equity-based Compensation Equivalent Shares and Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution for the three months ended March 31, 2022 and 2021, because the effect of inclusion would be anti-dilutive, is presented below.
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Acquisition of Business |
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Business Combination and Asset Acquisition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of Business | Acquisition of Business Acquisition of American Access Casualty Corporation On April 1, 2021 Kemper completed the acquisition of American Access Casualty Company and its related captive insurance agency, Newins Insurance Agency Holdings, LLC, and its subsidiaries (collectively “AAC”). Pursuant to the agreement dated November 22, 2020, Kemper paid AAC’s equity holders total cash consideration of approximately $370.9 million. During the first quarter of 2022, the Company finalized its estimates of the fair value of assets acquired and liabilities assumed. There were no changes to the Company’s preliminary estimates or allocation of the purchase price to the assets acquired and liabilities assumed. Note 3 - Acquisition of Business (Continued) Based on the Company’s final allocation of the purchase price, the fair value of the assets acquired and liabilities assumed were:
The factors that contributed to the recognition of goodwill include synergies from economies of scale within the underwriting and claims operations, acquiring a talented workforce and cost savings opportunities. Intangible Assets Intangible assets consist of capitalized costs, primarily of the estimated fair value of distribution, customer relationships, policies in force, trade names and licenses, and technology. The estimated useful lives of these assets range from 1 to 8 years. These assets are reported in Other Assets in the Condensed Consolidated Balance Sheets. Identifiable definite and indefinite lived intangible assets acquired consisted of the following:
Unaudited Pro Forma Results The following unaudited pro forma information presents the Company’s results of operations as if the acquisition of AAC occurred on January 1, 2020. The adjustments to arrive at the pro forma information below included adjustments for the lost investment income on the cash used to fund the acquisition, amortization of the acquired intangible assets and the exclusion of certain acquisition related costs considered to be non-recurring in nature. Note 3 - Acquisition of Business (Continued)
The pro forma information is not necessarily indicative of the consolidated results of operations that might have been achieved had the transaction in fact occurred at the beginning of the periods presented, nor does the information project results for any future period. The pro forma information does not include the impact of any future cost savings or synergies that may be achieved as a result of the acquisition.
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Business Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments | Business Segments The Company is engaged, through its subsidiaries, in the property and casualty insurance and life and health insurance businesses. The Company conducts its operations through three operating segments: Specialty Property & Casualty Insurance, Preferred Property & Casualty Insurance and Life & Health Insurance. The Specialty Property & Casualty Insurance segment’s principal products are personal automobile insurance and commercial automobile insurance. The Preferred Property & Casualty Insurance segment’s principal products are personal automobile insurance, homeowners insurance and other personal insurance. These products are distributed primarily through independent agents and brokers. The Life & Health Insurance segment’s principal products are individual life, accident, supplemental health and property insurance. These products are distributed by career agents employed by the Company and independent agents and brokers. Earned Premiums by product line for the three months ended March 31, 2022 and 2021 were:
Note 4 - Business Segments (Continued) Segment Revenues, including a reconciliation to Total Revenues, for the three months ended March 31, 2022 and 2021 were:
Note 4 - Business Segments (Continued) Segment Operating Income (Loss), including a reconciliation to Income (Loss) before Income Taxes, for the three months ended March 31, 2022 and 2021 was:
Segment Net Operating Income (Loss), including a reconciliation to Net Income (Loss), for the three months ended March 31, 2022 and 2021 was:
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Property and Casualty Insurance Reserves |
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Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Casualty Insurance Reserves | Property and Casualty Insurance Reserves Property and casualty insurance reserve activity for the three months ended March 31, 2022 and 2021 was:
Property and casualty insurance reserves are estimated based on historical experience patterns and current economic trends. Actual loss experience and loss trends are likely to differ from these historical experience patterns and economic conditions. Loss experience and loss trends emerge over several years from the dates of loss inception. The Company monitors such emerging loss trends on a quarterly basis. Changes in such estimates are included in the Condensed Consolidated Statements of Income in the period of change. For the three months ended March 31, 2022, the Company decreased its property and casualty insurance reserves by $2.7 million to recognize favorable development of loss and LAE reserves from prior accident years. Specialty personal automobile insurance loss and LAE reserves developed favorably by $8.3 million due primarily to the emergence of more favorable loss patterns than expected for liability and physical damage insurance. Commercial automobile insurance loss and LAE reserves developed adversely by $5.2 million due primarily to the emergence of more adverse loss patterns than expected for liability insurance. Preferred personal automobile insurance loss and LAE reserves developed adversely by $1.6 million due primarily to the emergence of more adverse loss patterns than expected for liability insurance. Homeowners loss and LAE reserves developed favorably by $4.4 million due primarily to the emergence of more favorable loss patterns than expected. Other lines loss and LAE reserves developed adversely by $3.2 million due primarily to the emergence of more adverse loss patterns than expected for prior accident years. For the three months ended March 31, 2021, the Company increased its property and casualty insurance reserves by $0.1 million to recognize adverse development of loss and LAE reserves from prior accident years. Specialty personal automobile insurance loss and LAE reserves developed favorably by $4.0 million due primarily to the emergence of more favorable loss patterns than expected for liability insurance. Commercial automobile insurance loss and LAE reserves developed adversely by $3.0 million due primarily to the emergence of more adverse loss patterns than expected for liability insurance. Preferred personal automobile insurance loss and LAE reserves developed adversely by $1.3 million due primarily to the emergence of more adverse loss patterns than expected for liability insurance. Homeowners loss and LAE reserves developed favorably by $2.6 million due primarily to the emergence of more favorable loss patterns than expected. Other lines loss and LAE reserves developed adversely by $2.3 million due primarily to the emergence of more adverse loss patterns than expected for prior accident years. Note 5 - Property and Casualty Insurance Reserves (Continued) The Company cannot predict whether loss and LAE reserves will develop favorably or adversely from the amounts reported in the Company’s Condensed Consolidated Financial Statements. The Company believes that any such development will not have a material effect on the Company’s Condensed Consolidated Shareholders’ Equity, but could have a material effect on the Company’s consolidated financial results for a given period. Receivables from Policyholders - Allowance for Expected Credit Losses The following table presents receivables from policyholders, net of the allowance for expected credit losses including a rollforward of changes in the allowance for expected credit losses for the three months ended March 31, 2022.
The following table presents receivables from policyholders, net of the allowance for expected credit losses including a rollforward of changes in the allowance for expected credit losses for the three months ended March 31, 2021.
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Investments |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments Fixed Maturities The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at March 31, 2022 were:
Note 6 - Investments (Continued) The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2021 were:
Other Receivables included $1.9 million and $0.6 million of unsettled sales of Investments in Fixed Maturities at March 31, 2022 and December 31, 2021, respectively. Accrued Expenses and Other Liabilities included unsettled purchases of Investments in Fixed Maturities of $73.4 million and $12.7 million at March 31, 2022 and December 31, 2021, respectively. The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at March 31, 2022 by contractual maturity were:
The expected maturities of the Company’s Investments in Fixed Maturities may differ from the contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Investments in Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date at March 31, 2022 consisted of securities issued by the Government National Mortgage Association with a fair value of $390.7 million, securities issued by the Federal National Mortgage Association with a fair value of $65.8 million, securities issued by the Federal Home Loan Mortgage Corporation with a fair value of $29.5 million, and securities issued by other non-governmental issuers with a fair value of $1,215.5 million. Note 6 - Investments (Continued) An aging of unrealized losses on the Company’s Investments in Fixed Maturities at March 31, 2022 is presented below.
Investment-grade fixed maturity investments comprised $270.9 million and below-investment-grade fixed maturity investments comprised $17.2 million of the unrealized losses on investments in fixed maturities at March 31, 2022. For below-investment-grade fixed maturity investments in an unrealized loss position, the unrealized loss amount, on average, was approximately 6% of the amortized cost basis of the investment. An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2021 is presented below.
Investment-grade fixed maturity investments comprised $23.7 million and below-investment-grade fixed maturity investments comprised $9.0 million of the unrealized losses on investments in fixed maturities at December 31, 2021. For below-investment-grade fixed maturity investments in an unrealized loss position, the unrealized loss amount, on average, was approximately 4% of the amortized cost basis of the investment. Note 6 - Investments (Continued) At March 31, 2022 and December 31, 2021, the Company did not have the intent to sell these investments, and it was not more likely than not that the Company would be required to sell these investments before an anticipated recovery of value. The Company evaluated these investments for credit losses at March 31, 2022 and December 31, 2021. The Company considers many factors in evaluating whether the unrealized losses were credit related including, but not limited to, the extent to which the fair value has been less than amortized cost, conditions related to the security, industry, or geographic area, payment structure of the investment and the likelihood of the issuer’s ability to make contractual cashflows, defaults or other collectability concerns related to the issuer, changes in the ratings assigned by a rating agency, and other credit enhancements that affect the investment’s expected performance. The Company determined that the unrealized losses on these securities were due to non-credit related factors at the evaluation date. Fixed Maturities - Expected 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, 2022.
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, 2021.
Equity Securities Investments in Equity Securities at Fair Value were $571.5 million and $830.6 million at March 31, 2022 and December 31, 2021, respectively. Net unrealized losses arising during the three months ended March 31, 2022 and recognized in earnings, related to such investments still held as of March 31, 2022, were $24.0 million. Investments in Equity Securities at Modified Cost were $35.2 million and $32.3 million at March 31, 2022 and December 31, 2021, respectively. The Company performs a qualitative impairment analysis on a quarterly basis consisting of various factors such as earnings performance, current market conditions, changes in credit ratings, changes in the regulatory environment and Note 6 - Investments (Continued) other factors. If the qualitative analysis identifies the presence of impairment indicators, the Company estimates the fair value of the investment. If the estimated fair value is below the carrying value, the Company records an impairment in the Condensed Consolidated Statement of Income to reduce the carrying value to the estimated fair value. When the Company identifies observable transactions of the same or similar securities to those held by the Company, the Company increases or decreases the carrying value to the observable transaction price. The Company did not recognize any changes in carrying value due to observable transactions for the three months ended March 31, 2022. The Company did not recognize any impairment on Equity Securities at Modified Cost for three months ended March 31, 2022 as a result of the Company’s impairment analysis. The Company recognized no cumulative increases or decreases in the carrying value due to observable transactions and $10.0 million of cumulative impairments on Equity Securities at Modified Cost held as of March 31, 2022. There were no unsettled purchases of Investments in Equity Securities at March 31, 2022. There were $2.7 million of unsettled purchases of Investments in Equity Securities at December 31, 2021. There were no unsettled sales of Investments in Equity Securities at March 31, 2022 and December 31, 2021, respectively. Equity Method Limited Liability Investments Equity Method Limited Liability Investments include investments in limited liability investment companies and limited partnerships in which the Company’s interests are not deemed minor and are accounted for under the equity method of accounting. The Company’s investments in Equity Method Limited Liability Investments are generally of a passive nature in that the Company does not take an active role in the management of the investment entity. The Company’s maximum exposure to loss at March 31, 2022 is limited to the total carrying value of $230.0 million. In addition, the Company had outstanding commitments totaling approximately $92.2 million to fund Equity Method Limited Liability Investments at March 31, 2022. At March 31, 2022, 3.2% of Equity Method Limited Liability Investments were reported without a reporting lag. Of the total carrying value, 10.8% was reported with a one month lag and the remainder was reported with more than a one month lag. There were $0.5 million of unsettled purchases of Equity Method Limited Liability Investments at March 31, 2022. There were no unsettled purchases of Equity Method Limited Liability Investments at December 31, 2021. There were $4.7 million and $1.2 million unsettled sales of Equity Method Limited Liability Investments at March 31, 2022 and December 31, 2021, respectively. Alternative Energy Partnership Investments Alternative Energy Partnership Investments include partnerships formed to invest in newly installed residential solar leases and power purchase agreements. As a result of this investment, the Company has the right to certain investment tax credits and tax depreciation benefits, and to a lesser extent, cash flows generated from the installed solar systems leased to individual consumers for a fixed period of time. The Hypothetical Liquidation at Book Value (“HLBV”) equity method of accounting is used for the Company’s investments in Alternative Energy Partnership Investments. The Company’s maximum exposure to loss at March 31, 2022 is limited to the total carrying value of $22.4 million. The Company has no outstanding commitments to fund Alternative Energy Partnership Investments as of March 31, 2022. Alternative Energy Partnership Investments are reported on a three month lag. Other Investments The carrying values of the Company’s Other Investments at March 31, 2022 and December 31, 2021 were:
Note 6 - Investments (Continued) Net Investment Income Net Investment Income for the three months ended March 31, 2022 and 2021 was:
Gross gains and losses on sales of investments in fixed maturities for the three months ended March 31, 2022 and 2021 were:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The Company classifies its investments in Fixed Maturities as available-for-sale and reports these investments at fair value. The Company reports equity investments with readily determinable fair values as Equity Securities at Fair Value. Certain investments that are measured at fair value using the net asset value practical expedient are not required to be classified using the fair value hierarchy, but are presented in the following two tables to permit reconciliation of the fair value hierarchy to the amounts presented in the Condensed Consolidated Balance Sheets. The valuation of assets measured at fair value in Company’s Condensed Consolidated Balance Sheets at March 31, 2022 is summarized below. The Company has no material liabilities that are measured and reported at fair value.
At March 31, 2022, the Company had unfunded commitments to invest an additional $101.2 million in certain limited liability investment companies and limited partnerships that will be included in Other Equity Interests when funded. Note 7 - Fair Value Measurements (Continued) The valuation of assets measured at fair value in the Company’s Consolidated Balance Sheets at December 31, 2021 is summarized below.
The Company’s investments in Fixed Maturities that are classified as Level 1 primarily consist of U.S. Treasury Bonds and Notes. The Company’s investments in Equity Securities at Fair Value that are classified as Level 1 consist of either investments in publicly-traded common stocks or exchange traded funds. The Company’s investments in Fixed Maturities that are classified as Level 2 primarily consist of investments in corporate bonds, obligations of states and political subdivisions, collateralized loan obligations, and mortgage-backed securities of U.S. government agencies. The Company’s investments in Equity Securities at Fair Value that are classified as Level 2 primarily consist of investments in preferred stocks. The Company uses a leading, nationally recognized provider of market data and analytics to price the vast majority of the Company’s Level 2 measurements. The provider utilizes evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information. Because many fixed maturity securities do not trade on a daily basis, the provider’s evaluated pricing Note 7 - Fair Value Measurements (Continued) applications apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing to prepare evaluations. In addition, the provider uses model processes to develop prepayment and interest rate scenarios. The pricing provider’s models and processes also take into account market convention. For each asset class, teams of its evaluators gather information from market sources and integrate relevant credit information, perceived market movements and sector news into the evaluated pricing applications and models. The Company generally validates the measurements obtained from its primary pricing provider by comparing them with measurements obtained from one additional pricing provider that provides either prices from recent market transactions, quotes in inactive markets or evaluations based on its own proprietary models. The Company investigates significant differences related to the values provided. On completion of its investigation, management exercises judgment to determine the price selected and whether adjustments, if any, to the price obtained from the Company’s primary pricing provider would warrant classification of the price as Level 3. In instances where a measurement cannot be obtained from either pricing provider, the Company generally will evaluate bid prices from one or more binding quotes obtained from market makers to value investments in inactive markets and classified by the Company as Level 2. The Company generally classifies securities when it receives non-binding quotes or indications as Level 3 securities unless the Company can validate the quote or indication against recent transactions in the market. The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments in corporate securities classified as Level 3 at March 31, 2022.
The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments in corporate securities classified as Level 3 at December 31, 2021.
Note 7 - Fair Value Measurements (Continued) For an investment in a fixed maturity security, an increase in the yield used to determine the fair value of the security will decrease the fair value of the security. A decrease in the yield used to determine fair value will increase the fair value of the security, but for callable securities the fair value increase is generally limited to par, unless security is currently callable at a premium.. Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the three months ended March 31, 2022 is presented below.
The transfers into and out of Level 3 were due primarily to changes in the availability of market observable inputs. Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the three months ended March 31, 2021 is presented below.
The transfers into and out of Level 3 were due to changes in the availability of market observable inputs. Note 7 - Fair Value Measurements (Continued) Presented below are the carrying values and fair value estimates of financial instruments not carried at fair value.
The fair value measurement for loans to policyholders are categorized as Level 3 within the fair value hierarchy. The fair value measurement of Short-term Investments is estimated using inputs that are considered either Level 1 or Level 2 measurements. The Mortgage Loans fair value measurement is considered equal to amortized cost given the short term nature of the investments. The fair value measurement of Equity Securities at Modified Cost is estimated using inputs that are considered Level 3 measurements. The fair value of Company-Owned Life Insurance approximates cash surrender value. The fair value of Long-term Debt is estimated using quoted prices for similar liabilities in markets that are not active. The inputs used in the valuation are considered Level 2 measurements. Policyholder Obligations presented in the preceding table consist of advances from the FHLB of Chicago, and the inputs used in the valuation are considered Level 2 measurements.
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Variable Interest Entities |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity Disclosure | Variable Interest Entities The Company invests in an Alternative Energy Partnership formed to provide sustainable energy projects that are designed to generate a return primarily through the realization of federal tax credits. This entity was formed to invest in newly installed residential solar leases and power purchase agreements. As a result of this investment, the Company has the right to certain investment tax credits and tax depreciation benefits, and to a lesser extent, cash flows generated from the installed solar systems leased to individual consumers. The Company’s interest in the Alternative Energy Partnership Investment is considered an investment in a variable interest entity (“VIE”). To determine whether the investment should be consolidated in the Consolidated Financial Statements, the Company evaluates whether it is the primary beneficiary of the VIE. The primary beneficiary is the party that has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company has determined that it is not the primary beneficiary as it does not have the power to direct the activities that most significantly impact the economic performance of the entity and therefore is not required to consolidate the VIE. The project sponsor governs the entity and the Company only has consent rights that have been deemed protective in nature and does not participate in key economic decisions of the entity. The investment is accounted for using the equity method of accounting and included in Alternative Energy Partnership Investments in the Consolidated Balance Sheets. The Company uses the HLBV equity method to account for earnings and losses. This method provides an earnings allocation that appropriately reflects the substantive economics of the investment. Earnings and losses on the investment are reported in Change in Value of Alternative Energy Partnership Investments and investment tax credits are recognized in Income Tax Expense (Benefit) on the Condensed Consolidated Statements of Income. Note 8 - Variable Interest Entities (Continued) The following table presents information regarding activity in the Company’s Alternative Energy Partnership Investments as of the periods indicated:
The following table represents the carrying value of the associated assets and liabilities and the associated maximum loss exposure of the Alternative Energy Partnership Investments as of the dates indicated:
The Company’s maximum loss exposure in the event that all of the assets in the Alternative Energy Partnership are deemed worthless is $22.4 million, which is the carrying value of the investment at March 31, 2022.
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Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income |
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Statement of Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income | Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) The tables below display the changes in Accumulated Other Comprehensive Income (Loss) by component for the three months ended March 31, 2022 and 2021.
Note 9 - Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Continued)
Amounts reclassified from Accumulated Other Comprehensive Income (Loss) shown above are reported in Net Income (Loss) as follows:
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Stockholders’ Equity |
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Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Shareholders’ Equity Common Stock Repurchases On May 6, 2020, Kemper’s Board of Directors authorized the repurchase of up to an additional $200.0 million of Kemper’s common stock, in addition to $133.3 million remaining under the August 6, 2014 authorization, bringing the remaining share repurchase authorization to approximately $333.3 million. As of March 31, 2022 the remaining share repurchase authorization was $171.6 million under the repurchase program. During the three months ended March 31, 2022 Kemper did not repurchase any shares of its common stock. During the three months ended March 31, 2021 Kemper repurchased and retired approximately 590,000 shares of its common stock under its share repurchase authorization for an aggregate cost of $47.1 million and an average cost per share of $79.36. These purchases were made in the open market in accordance with applicable federal securities laws, including Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934. Employee Stock Purchase Plan During the three months ended March 31, 2022 and 2021, the Company issued approximately 22,000 and 15,000 shares under the Kemper Employee Stock Purchase Plan (“ESPP”), respectively, at an average discounted price of $48.06 and $67.76 per share. Compensation costs charged against income were $0.2 million and $0.2 million for the year ended March 31, 2022 and 2021, respectively.
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Pension Benefits and Postretirement Benefits Other Than Pensions |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits and Postretirement Benefits Other Than Pensions | Pension Benefits and Postretirement Benefits Other Than PensionsThe Company sponsors a qualified defined benefit pension plan (the “Pension Plan”) that covers approximately 3,145 participants and beneficiaries. Effective January 1, 2006, the Pension Plan was closed to new hires and, effective June 30, 2016, Note 11 - Pension Benefits and Postretirement Benefits Other Than Pensions (Continued) benefit accruals were frozen for substantially all of the participants under the Pension Plan. The Pension Plan is generally non-contributory, but participation requires or required some employees to contribute 3% of pay, as defined, per year. Benefits for participants who are or were required to contribute to the Pension Plan are based on compensation during plan participation and the number of years of participation. Benefits for the vast majority of participants who are not required to contribute to the Pension Plan are based on years of service and final average pay, as defined. The Company funds the Pension Plan in accordance with the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”). The components of Pension (Benefit) Expense for the Pension Plan for the three months ended March 31, 2022 and 2021 were:
The Company sponsors two other than pension postretirement benefit (“OPEB”) plans (together the “OPEB Plans”) that together provide medical, dental and/or life insurance benefits to approximately 400 retired and 500 active employees. The components of OPEB benefits for the OPEB Plans for the three months ended March 31, 2022 and 2021 were:
The non-service cost components of the Pension Plan and OPEB Plans are presented within the Interest and Other Expenses line item in the Condensed Consolidated Statements of Income.
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Policyholder Contract Liabilities |
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Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Policyholder Contract Liabilities | Policyholder Obligations Policyholder Obligations at March 31, 2022 and December 31, 2021 were as follows:
Kemper’s subsidiary, United Insurance Company of America ("United Insurance") has entered into funding agreements with the Federal Home Loan Bank (“FHLB”) of Chicago in exchange for cash, which it uses for spread lending purposes. During the three months ended March 31, 2022, United Insurance received advances of $208.4 million from the FHLB of Chicago and made repayments of $57.1 million under the spread lending program. Note 12 - Policyholder Obligations (Continued) When a funding agreement is issued, United Insurance is then required to post collateral in the form of eligible securities including mortgage-backed, government, and agency debt instruments for each of the advances that are entered. The fair value of the collateral pledged must be maintained at certain specified levels above the borrowed amount, which can vary depending on the assets pledged. If the fair value of the collateral declines below these specified levels of the amount borrowed, United Insurance would be required to pledge additional collateral or repay outstanding borrowings. Upon any event of default by United Insurance, the FHLB’s recovery on the collateral is limited to the amount of United Insurance’s liability under the funding agreements to the FHLB of Chicago. United Insurance’s liability under the funding agreements with the FHLB of Chicago, the amount of collateral pledged under such agreements and FHLB of Chicago common stock owned by United Insurance at March 31, 2022 and December 31, 2021 is presented below.
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Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Amended and Extended Credit Agreement On March 15, 2022, the Company entered into an amended and extended credit agreement. The amended and extended credit agreement increased the borrowing capacity of the existing unsecured credit agreement to $600.0 million and extended the maturity date to March 15, 2027. Furthermore, the amended and extended credit agreement provides for an accordion feature whereby the Company can increase the revolving credit borrowing capacity by $200.0 million to a total of $800.0 million. There were no outstanding borrowings under the credit agreement at either March 31, 2022 or December 31, 2021. The Company incurred $2.2 million debt issuance costs in relation to the amended agreement. As of March 31, 2022 there were $2.6 million of remaining unamortized costs under the credit agreement, which will be amortized under the remaining term of the credit agreement. Long-term Debt The Company designates debt obligations as either short-term or long-term based on maturity date at issuance, or in the case of the 2022 Senior Notes, based on the date of assumption. Total amortized cost of Long-term Debt outstanding at March 31, 2022 and December 31, 2021 was:
Note 13 - Debt (Continued) Redemption of 5.000% Senior Notes Due 2022 The liabilities of Infinity Property and Casualty Corporation (“Infinity”) at the date of Infinity’s acquisition included $275.0 million principal amount, 5.000% Senior Notes due September 19, 2022 (the “2022 Senior Notes”). The 2022 Senior Notes were recorded at fair value as of the acquisition date, $282.1 million, with the $7.1 million premium being amortized as a reduction to interest expense over the remaining term, resulting in an effective interest rate of 4.36%. On November 30, 2018, Kemper executed a guarantee to fully and unconditionally guarantee the payment and performance obligations of the 2022 Senior Notes. On February 23, 2022, Kemper issued a notice of redemption for the entire $275.0 million aggregate principal outstanding of the 2022 Senior Notes at a redemption price equal to 100% of their principal, plus accrued and unpaid interest on the redemption date. On March 25, 2022, Kemper completed the redemption, and the 2022 Senior Notes were repaid in full. The Company recognized a Loss from Early Extinguishment of Debt of $3.7 million in its March 31, 2022 Condensed Consolidated Statement of Income. The Company used the proceeds received from Kemper’s 2032 Senior Notes offering to repay the 2022 Senior Notes. See “3.800% Senior Notes Due 2032” below for additional information regarding the debt issuance. 4.350% Senior Notes Due 2025 Kemper has $450.0 million aggregate principal of 4.350% senior notes due February 15, 2025 (the “2025 Senior Notes”). Kemper initially issued $250.0 million of the notes in February of 2015 and issued an additional $200.0 million of the notes in June of 2017. The additional notes are fungible with the initial notes issued in 2015, and together are treated as part of a single series for all purposes under the indenture governing the 2025 Senior Notes. The 2025 Senior Notes are unsecured and may be redeemed in whole at any time or in part from time to time at Kemper’s option at specified redemption prices. 2.400% Senior Notes Due 2030 Kemper has $400.0 million aggregate principal of 2.400% senior notes due September 30, 2030 (the “2030 Senior Notes”). The net proceeds of issuance were $395.8 million, net of discount and transaction costs for an effective yield of 2.52%. The 2030 Senior Notes are unsecured and may be redeemed in whole at any time or in part from time to time, at Kemper’s option, at specified redemption prices. 3.800% Senior Notes Due 2032 On February 15, 2022, Kemper offered and sold $400.0 million aggregate principal of 3.800% senior notes due February 23, 2032 (the “2032 Senior Notes”). The net proceeds of issuance were $395.1 million, net of discount and transaction costs for an effective yield of 3.950%. The 2032 Senior Notes are unsecured and may be redeemed in whole at any time or in part from time to time, at Kemper’s option, at specified redemption prices. In anticipation of the issuance of the 2032 Senior Notes and for risk management purposes, the Company entered into a derivative transaction to hedge the risk of changes in the debt cash flows attributable to changes in the benchmark U.S. Treasury interest rate during the period leading up to the debt issuance (“Treasury Lock”). The effective portion of the gain on the derivative instrument upon discontinuance was $5.9 million before taxes, and is reported as a component of Accumulated Other Comprehensive Income (Loss). Beginning with the issuance of the 2032 Senior Notes described in the preceding paragraph, such gain is being amortized into earnings and reported in Interest and Other Expenses in the same periods that the hedged items affect earnings. Amortization, reported in Interest and Other Expenses, was $0.1 million for the three months ended March 31, 2022. The Company expects to reclassify $0.5 million of net gain on derivative instruments from AOCI to earnings for the twelve months ended March 31, 2023 as interest expense on the debt is recognized. 5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 On March 10, 2022, Kemper issued $150.0 million aggregate principal amount of 5.875% Fixed-Rate Reset Junior Subordinated Debentures due March 15, 2062 (the “2062 Junior Debentures”). The net proceeds from issuance were $144.7 million, net of discount and transaction costs. The 2062 Junior Debentures will bear interest from and including the date Note 13 - Debt (Continued) of original issue to, but excluding, March 15, 2027 (the “First Reset Date”) at the fixed rate of 5.875% per annum. The interest rate on the First Reset Date, and subsequent Reset Dates, will be equal to the Five-Year Treasury Rate as of the most recent Reset Date plus 4.140% to be reset on each Reset Date. Interest is due quarterly in arrears beginning on June 15, 2022. The Company has the option to defer interest payments for one or more optional deferral periods of up to five consecutive years, provided that no optional deferral period shall extend beyond March 15, 2062, or any earlier accelerated maturity date arising from an event of default or any earlier redemption of the 2062 Junior Debentures. The 2062 Junior Debentures are unsecured and may be redeemed in whole or in part on the First Reset Date or any time thereafter, at a redemption price equal to the principal amount of the debentures being redeemed plus any accrued and unpaid interest. Short-term Debt Kemper’s subsidiaries, United Insurance, Trinity Universal Insurance Company (“Trinity”) and Alliance are members of the FHLBs of Chicago, Dallas and San Francisco, respectively. As a requirement of membership in the FHLBs, United Insurance, Trinity and Alliance maintain a certain level of investment in FHLB stock. The Company periodically uses short-term FHLB borrowings for a combination of cash management and risk management purposes, in addition to long-term FHLB borrowings for spread lending purposes. There were no short-term debt advances from the FHLBs of Chicago, Dallas or San Francisco outstanding at March 31, 2022 or December 31, 2021. For information on United Insurance’s funding agreement with the FHLB of Chicago in connection with the spread lending program, see Note 12, “Policyholder Obligations,” to the Condensed Consolidated Financial Statements. Interest Expense and Interest Paid Interest Expense, including facility fees, accretion of discount, amortization of premium and amortization of issuance costs, was $12.7 million for the three months ended March 31, 2022. Interest paid, including facility fees, was $22.0 million for the three months ended March 31, 2022. Interest Expense, including facility fees, accretion of discount and amortization of issuance costs, was $11.1 million for the three months ended March 31, 2021. Interest paid, including facility fees, was $21.7 million for the three months ended March 31, 2021.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company leases certain office space under non-cancelable operating leases, with initial terms typically ranging from to fifteen years, along with options that permit renewals for additional periods. The Company also leases certain equipment under non-cancelable operating leases, with initial terms typically ranging from to five years. Minimum rent is expensed on a straight-line basis over the term of the lease. The following table presents operating lease right-of-use assets and lease liabilities.
Note 14 - Leases (Continued) Lease expenses are primarily included in Insurance Expenses in the Condensed Consolidated Statement of Income. Additional information regarding the Company’s lease cost is presented below.
Other Information on Operating Leases Supplemental cash flow information related to the Company’s operating and finance leases for the three months ended March 31, 2022 and 2021 is as follows:
Significant judgments and assumptions for determining lease asset and liability at March 31, 2022 and 2021 are presented below.
Most of the Company’s leases do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of its lease payments. Note 14 - Leases (Continued) Future minimum lease payments under operating leases at March 31, 2022 are presented below. There are no significant future minimum lease payments under finance leases.
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Leases | Leases The Company leases certain office space under non-cancelable operating leases, with initial terms typically ranging from to fifteen years, along with options that permit renewals for additional periods. The Company also leases certain equipment under non-cancelable operating leases, with initial terms typically ranging from to five years. Minimum rent is expensed on a straight-line basis over the term of the lease. The following table presents operating lease right-of-use assets and lease liabilities.
Note 14 - Leases (Continued) Lease expenses are primarily included in Insurance Expenses in the Condensed Consolidated Statement of Income. Additional information regarding the Company’s lease cost is presented below.
Other Information on Operating Leases Supplemental cash flow information related to the Company’s operating and finance leases for the three months ended March 31, 2022 and 2021 is as follows:
Significant judgments and assumptions for determining lease asset and liability at March 31, 2022 and 2021 are presented below.
Most of the Company’s leases do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of its lease payments. Note 14 - Leases (Continued) Future minimum lease payments under operating leases at March 31, 2022 are presented below. There are no significant future minimum lease payments under finance leases.
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Income Taxes |
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Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The statute of limitations related to Kemper and its eligible subsidiaries’ consolidated Federal income tax returns is closed for all tax years up to and including 2011. As a result of the Company filing amended federal income tax returns, tax years 2012 and 2013 are under limited examination with respect to carryback adjustments associated with the amended returns. The statute of limitations related to tax years 2014, 2015, 2016 and 2017 has been extended to September 30, 2022. Tax years 2018, 2019 and 2020 are subject to a statute of three years from the extended due dates of October 15, 2019, 2020, and 2021, respectively. The expiration of the statute of limitations related to the various state income tax returns that Kemper and its subsidiaries file varies by state. There were no unrecognized tax benefits at March 31, 2022 or December 31, 2021. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. Income taxes paid, net of refunds received, were less than $0.1 million for the three months ended March 31, 2022. Income taxes paid, net of refunds received, were $30.1 million for the three months ended March 31, 2021
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Contingencies |
3 Months Ended |
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Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies In the ordinary course of its businesses, the Company is involved in legal proceedings- including lawsuits, arbitration, regulatory examinations, audits and inquiries. Based on currently available information, the Company does not believe that it is reasonably possible that any of its pending legal proceedings will have a material effect on the Company’s interim Condensed Consolidated Financial Statements and Notes to the interim Condensed Consolidated Financial Statements. Over the last decade there have been multiple initiatives that intend, in various ways, to impose new duties on life insurance companies to proactively search for information related to the deaths of their insureds. These initiatives, which include legislation, audits, regulatory examinations and litigation, seek to alter the terms of life insurance contracts by imposing requirements that did not exist and were not contemplated at the time the issuing companies entered into such contracts. In 2016, the Company voluntarily began implementation of a comprehensive process to compare the records of its life insurance subsidiaries against one or more death verification databases to determine if any of its insureds may be deceased. Attempts to estimate the ultimate outcomes of the aforementioned initiatives entail uncertainties including but not limited to the (i) scope and interpretation of pertinent statutes, including the matching criteria and methodologies to be used in comparing policy records against a death verification database, (ii) universe of policies affected, (iii) results of audits, examinations and other actions by regulators, (iv) results of the Company’s voluntary process, and (v) outcomes of any related litigation.
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Basis of Presentation and Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Adoption of New Accounting Guidance and Guidance Not Yet Adopted | Adoption of New Accounting Guidance The Company has adopted all recently issued accounting pronouncements with effective dates prior to January 1, 2022. There were no adoptions of such accounting pronouncements during the three months ended March 31, 2022 that had a material impact on the Company’s interim Condensed Consolidated Financial Statements. Guidance Not Yet Adopted In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to Accounting for Long-Duration Contracts. ASU 2018-12 amends the accounting model for certain long-duration insurance contracts and requires the insurer to provide additional disclosures in annual and interim reporting periods. In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of ASU 2018-12 by one year for public business entities. ASU 2018-12 is now effective for fiscal years beginning after December 15, 2022, and interim periods within those annual periods. The amendments in ASU 2018-12 (i) require cash flow assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited pay long duration contracts to be updated at least annually with the recognition and remeasurement recorded in net income, require the discount rate used in measuring the liability to be an upper-medium grade fixed-income instrument yield, which is to be updated at each reporting period, and recognized in other comprehensive income, (ii) simplify the amortization of deferred acquisition costs to be amortized on a constant level basis over the expected term of the contract, (iii) require all market risk benefits to be measured at fair value, and (iv) enhance certain presentation and disclosure requirements which include disaggregated rollforwards for liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, deferred acquisition costs, and information about significant inputs, judgments and methods used in the measurement. The Company plans to adopt using the modified retrospective transition method and is currently evaluating the impact of this guidance on its financial statements.
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Net Income Per Unrestricted Share (Tables) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | A reconciliation of the numerator and denominator used in the calculation of Basic Net Income (Loss) Per Unrestricted Share and Diluted Net Income (Loss) Per Unrestricted Share for the three months ended March 31, 2022 and 2021 is presented below.
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The number of shares of Kemper common stock that were excluded from the calculations of Equity-based Compensation Equivalent Shares and Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution for the three months ended March 31, 2022 and 2021, because the effect of inclusion would be anti-dilutive, is presented below.
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Acquisition of Business (Tables) |
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Business Combination and Asset Acquisition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Based on the Company’s final allocation of the purchase price, the fair value of the assets acquired and liabilities assumed were:
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Schedule of Intangible Assets and Goodwill | Identifiable definite and indefinite lived intangible assets acquired consisted of the following:
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Business Acquisition, Pro Forma Information | The following unaudited pro forma information presents the Company’s results of operations as if the acquisition of AAC occurred on January 1, 2020. The adjustments to arrive at the pro forma information below included adjustments for the lost investment income on the cash used to fund the acquisition, amortization of the acquired intangible assets and the exclusion of certain acquisition related costs considered to be non-recurring in nature. Note 3 - Acquisition of Business (Continued)
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Business Segments (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customers by Products and Services | Earned Premiums by product line for the three months ended March 31, 2022 and 2021 were:
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Reconciliation of Revenue from Segments to Consolidated | Segment Revenues, including a reconciliation to Total Revenues, for the three months ended March 31, 2022 and 2021 were:
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Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Segment Operating Income (Loss), including a reconciliation to Income (Loss) before Income Taxes, for the three months ended March 31, 2022 and 2021 was:
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Reconciliation of Other Significant Reconciling Items from Segments to Consolidated | Segment Net Operating Income (Loss), including a reconciliation to Net Income (Loss), for the three months ended March 31, 2022 and 2021 was:
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Property and Casualty Insurance Reserves (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Unpaid Claims Adjustment Expense by Expense Type | Property and casualty insurance reserve activity for the three months ended March 31, 2022 and 2021 was:
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Premium Receivable, Allowance for Credit Loss | The following table presents receivables from policyholders, net of the allowance for expected credit losses including a rollforward of changes in the allowance for expected credit losses for the three months ended March 31, 2022.
The following table presents receivables from policyholders, net of the allowance for expected credit losses including a rollforward of changes in the allowance for expected credit losses for the three months ended March 31, 2021.
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Investments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2022 by contractual maturity were:
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Schedule of Unrealized Loss on Investments | An aging of unrealized losses on the Company’s Investments in Fixed Maturities at March 31, 2022 is presented below.
An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2021 is presented below.
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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, 2022.
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, 2021.
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Schedule of Other Investments | The carrying values of the Company’s Other Investments at March 31, 2022 and December 31, 2021 were:
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Investment Income | Net Investment Income for the three months ended March 31, 2022 and 2021 was:
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Schedule of Realized Gain (Loss) | Gross gains and losses on sales of investments in fixed maturities for the three months ended March 31, 2022 and 2021 were:
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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, 2022 were:
Note 6 - Investments (Continued) The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2021 were:
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Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | The valuation of assets measured at fair value in Company’s Condensed Consolidated Balance Sheets at March 31, 2022 is summarized below. The Company has no material liabilities that are measured and reported at fair value.
The valuation of assets measured at fair value in the Company’s Consolidated Balance Sheets at December 31, 2021 is summarized below.
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Fair Value Measurement Inputs and Valuation Techniques | The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments in corporate securities classified as Level 3 at March 31, 2022.
The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments in corporate securities classified as Level 3 at December 31, 2021.
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the three months ended March 31, 2022 is presented below.
The transfers into and out of Level 3 were due primarily to changes in the availability of market observable inputs. Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the three months ended March 31, 2021 is presented below.
The transfers into and out of Level 3 were due to changes in the availability of market observable inputs. Note 7 - Fair Value Measurements (Continued)
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Fair Value, by Balance Sheet Grouping | Presented below are the carrying values and fair value estimates of financial instruments not carried at fair value.
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Variable Interest Entities (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | The following table presents information regarding activity in the Company’s Alternative Energy Partnership Investments as of the periods indicated:
The following table represents the carrying value of the associated assets and liabilities and the associated maximum loss exposure of the Alternative Energy Partnership Investments as of the dates indicated:
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Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 |
Mar. 31, 2021 |
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Statement of Comprehensive Income [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Comprehensive Income | The tables below display the changes in Accumulated Other Comprehensive Income (Loss) by component for the three months ended March 31, 2022 and 2021.
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Pension Benefits and Postretirement Benefits Other Than Pensions (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Pension Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | The components of Pension (Benefit) Expense for the Pension Plan for the three months ended March 31, 2022 and 2021 were:
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Postretirement Benefits Other than Pensions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | The components of OPEB benefits for the OPEB Plans for the three months ended March 31, 2022 and 2021 were:
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Policyholder Contract Liabilities (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Liability for Future Policy Benefits, by Product Segment | Policyholder Obligations at March 31, 2022 and December 31, 2021 were as follows:
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Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank | United Insurance’s liability under the funding agreements with the FHLB of Chicago, the amount of collateral pledged under such agreements and FHLB of Chicago common stock owned by United Insurance at March 31, 2022 and December 31, 2021 is presented below.
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Debt (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | Total amortized cost of Long-term Debt outstanding at March 31, 2022 and December 31, 2021 was:
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Leases (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost | The following table presents operating lease right-of-use assets and lease liabilities.
Lease expenses are primarily included in Insurance Expenses in the Condensed Consolidated Statement of Income. Additional information regarding the Company’s lease cost is presented below.
Supplemental cash flow information related to the Company’s operating and finance leases for the three months ended March 31, 2022 and 2021 is as follows:
Significant judgments and assumptions for determining lease asset and liability at March 31, 2022 and 2021 are presented below.
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Schedule of Future Minimum Lease Payments for Capital and Operating Leases | Future minimum lease payments under operating leases at March 31, 2022 are presented below. There are no significant future minimum lease payments under finance leases.
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Net Income Per Unrestricted Share - Antidilutive (Details) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 2,550,800 | 1,212,800 |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 2,550,800 | 1,212,800 |
Acquisition of Business - Narrative (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Nov. 23, 2020 |
Mar. 31, 2022 |
|
Minimum | ||
Business Acquisition [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 1 year | |
Maximum | ||
Business Acquisition [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 8 years | |
American Access Casualty Company | ||
Business Acquisition [Line Items] | ||
Cash consideration | $ 370,900,000 |
Acquisition of Business - Pro Forma Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Business Combination and Asset Acquisition [Abstract] | ||
Total Revenues | $ 1,388.7 | $ 1,443.2 |
Total Expenses | 1,515.9 | 1,303.9 |
Net Income | (127.2) | 139.3 |
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax | $ (95.3) | $ 136.8 |
Business Segments - Narrative (Details) |
3 Months Ended |
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Mar. 31, 2022
segment
| |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Property and Casualty Insurance Reserves - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Incurred Losses and LAE Related to Prior Years | $ 2.7 | $ (0.1) |
Personal Automobile | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Incurred Losses and LAE Related to Prior Years | 8.3 | 4.0 |
Personal Automobile | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Incurred Losses and LAE Related to Prior Years | (1.6) | (1.3) |
Homeowners | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Incurred Losses and LAE Related to Prior Years | 4.4 | 2.6 |
Other Personal Lines | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Incurred Losses and LAE Related to Prior Years | (3.2) | (2.3) |
Commercial Automobile | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Incurred Losses and LAE Related to Prior Years | $ (5.2) | $ (3.0) |
Property and Casualty Insurance Reserves - Allowance for Credit Losses from Policyholders (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
Dec. 31, 2020 |
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Premium Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Premium Receivable, Allowance for Credit Loss, Beginning Balance | $ 13.6 | $ 20.9 | ||
Premium Receivable, Allowance for Credit Loss, Ending Balance | 13.0 | 11.3 | ||
Premiums Receivable, Net | 1,404.5 | 1,260.9 | $ 1,418.7 | $ 1,194.5 |
Premium receivables, allowance for credit losses | 13.0 | 11.3 | $ 13.6 | $ 20.9 |
Provision for Expected Credit Losses | 11.3 | 12.8 | ||
Premium Receivable, Allowance for Credit Loss, Writeoff | $ 11.9 | $ 22.4 |
Investments - Amortized Costs and Estimated Fair Value (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Amortized Cost | ||
Due in One Year or Less | $ 154.3 | |
Due after One Year to Five Years | 1,055.8 | |
Due after Five Years to Ten Years | 1,578.8 | |
Due after Ten Years | 3,275.8 | |
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 1,745.7 | |
Fixed maturities, at amortized cost | 7,810.4 | $ 7,358.2 |
Fair Value | ||
Due in One Year or Less | 155.8 | |
Due after One Year to Five Years | 1,059.2 | |
Due after Five Years to Ten Years | 1,549.2 | |
Due after Ten Years | 3,318.2 | |
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 1,701.5 | |
Fixed Maturities at Fair Value (Amortized Cost: 2022 - $7,810.4; 2021 - $7,358.2 Allowance for Credit Losses: 2022 - $9.1; 2021 - $7.5) | $ 7,783.9 | $ 7,986.9 |
Investments - Schedule of Other Investments (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Company-Owned Life Insurance | $ 556.4 | $ 448.1 |
Loans to Policyholders at Unpaid Principal | 284.7 | 286.2 |
Real Estate at Depreciated Cost | 93.3 | 94.0 |
Mortgage Loans and Other | 100.8 | 97.3 |
Total | $ 1,035.2 | $ 925.6 |
Investments - Net Realized Gains on Sales of Investments (Details) - Fixed Maturities - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Net Investment Income [Line Items] | ||
Gains on Sales | $ 0.4 | $ 13.2 |
Losses on Sales | $ (0.8) | $ (1.1) |
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfers out of Level 3 | $ 0.0 | $ 0.6 |
Limited Liability Companies and Limited Partnerships | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unfunded commitments | $ 101.2 |
Fair Value Measurements - Balance Sheet Grouping (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Carrying Value | ||
Loans to Policyholders | $ 284.7 | $ 286.2 |
Short-term Investments at Cost which Approximates Fair Value | 243.8 | 284.1 |
Mortgage Loans | 99.8 | 96.8 |
Long-term Debt | 1,385.2 | 1,121.9 |
Policyholder Obligations | 655.0 | 504.0 |
Fair Value | ||
Short-term Investments | 243.8 | 284.1 |
Long-term Debt | 1,343.9 | 1,152.1 |
Company-Owned Life Insurance | 556.4 | 448.1 |
Equity Securities at Modified Cost | 35.2 | 32.3 |
Equity Securities, FV-NI | 35.2 | 32.3 |
Federal Home Loan Bank of Chicago | ||
Fair Value | ||
Policyholder Obligations | 553.1 | 401.9 |
Loans to Policyholders | ||
Fair Value | ||
Loans | 284.7 | 286.2 |
Mortgage Loans | ||
Fair Value | ||
Loans | 99.8 | 96.8 |
United Insurance Company of America | FHLB Funding Agreements | Federal Home Loan Bank of Chicago | ||
Carrying Value | ||
Policyholder Obligations | $ 553.1 | $ 401.9 |
Variable Interest Entities (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Schedule of Equity Method Investments [Line Items] | |||
Income Tax Expense (Benefit) | $ (31,700,000) | $ (1,600,000) | |
Other Assets | 566,400,000 | $ 592,200,000 | |
Variable Interest Entity, Not Primary Beneficiary | |||
Schedule of Equity Method Investments [Line Items] | |||
Variable Interest Entity, Funding Investment Commitment, Funding | 0 | 48,500,000 | |
Proceeds from Equity Method Investment, Distribution | 400,000 | 0 | |
Income (Loss) from Equity Method Investments | (16,700,000) | (15,400,000) | |
Income Tax Credits and Adjustments | 3,900,000 | 28,400,000 | |
Income Tax Expense (Benefit) | 3,100,000 | $ 200,000 | |
Cash and Cash Equivalents, at Carrying Value | 19,300,000 | ||
Property, Plant and Equipment, Net | 271,100,000 | ||
Other Assets | 2,900,000 | ||
Assets | 293,300,000 | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 22,400,000 |
Pension Benefits and Postretirement Benefits Other Than Pensions - Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2022
employees
| |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Number of participants and beneficiaries | 3,145 |
Percentage of Compensation, Defined Benefit Plan Employee Contribution | 3.00% |
Postretirement Benefits Other than Pensions | |
Defined Benefit Plan Disclosure [Line Items] | |
Number of retired employees covered | 400 |
Number of active employees covered | 500 |
Pension Benefits and Postretirement Benefits Other Than Pensions - Pension Income (Details) - Pension Plans - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Defined Benefit Plan Disclosure [Line Items] | ||
Interest Cost on Projected Benefit Obligation | $ 2.2 | $ 1.8 |
Expected Return on Plan Assets | (1.9) | (2.3) |
Amortization of Prior Service Credit | 0.2 | |
Amortization of Net Actuarial Loss | 0.4 | 0.7 |
Total Pension (Benefit) Expense | $ 0.9 | $ 0.2 |
Pension Benefits and Postretirement Benefits Other Than Pensions - Components of OPEB Benefits (Details) - Postretirement Benefits Other than Pensions - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service Cost | $ 0.1 | $ 0.1 |
Interest Cost on Accumulated Postretirement Benefit Obligation | 0.0 | 0.0 |
Amortization of Prior Service Credit | (0.3) | (0.3) |
Amortization of Net Gain | (0.4) | (0.4) |
Total Pension (Benefit) Expense | $ (0.6) | $ (0.6) |
Policyholder Contract Liabilities - Policyholder Contract Liabilities (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Policyholder Obligations | $ 655.0 | $ 504.0 |
FHLB Funding Agreements | United Insurance Company of America | Federal Home Loan Bank of Chicago | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Policyholder Obligations | 553.1 | 401.9 |
Universal Life-type Policyholder Account Balances | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Policyholder Obligations | $ 101.9 | $ 102.1 |
Policyholder Contract Liabilities - Narrative (Details) - United Insurance Company of America - Federal Home Loan Bank of Chicago $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2022
USD ($)
| |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Federal Home Loan Bank, amount of advances | $ 208.4 |
Payments of FHLBank borrowings | $ 57.1 |
Policyholder Contract Liabilities - Supplemental Financial Information (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Policyholder Obligations | $ 655.0 | $ 504.0 |
Federal Home Loan Bank of Chicago | United Insurance Company of America | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Fair Value of Collateral Pledged | 622.5 | 556.6 |
FHLB of Chicago Common Stock Owned at Cost | 14.7 | 11.8 |
Federal Home Loan Bank of Chicago | United Insurance Company of America | FHLB Funding Agreements | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Policyholder Obligations | $ 553.1 | $ 401.9 |
Leases - Right of Use Assets and Liabilities (Details) (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Leases [Abstract] | ||
Operating Lease Right-of-Use Assets | $ 60.4 | $ 64.4 |
Operating Lease Liabilities | $ 80.1 | $ 84.8 |
Leases - Lease Cost (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Lease Cost | ||
Amortization of Right-of-Use Assets - Finance Leases | $ 0.0 | $ 0.1 |
Operating Lease Cost | 5.6 | 5.1 |
Variable Lease, Cost | 0.1 | 0.0 |
Short-Term Lease Cost | 1.2 | 0.9 |
Total Lease Expense | 6.9 | 6.1 |
Less: Sublease Income | 0.1 | 0.0 |
Lease, Cost | $ 6.8 | $ 6.1 |
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Leases [Abstract] | ||
Operating Cash Flows from Operating Lease (Fixed Payments) | $ 6.2 | $ 5.4 |
Operating Cash Flows from Operating Lease (Liability Reduction) | 5.5 | 4.6 |
Financing Cash Flows from Finance Leases | 0.0 | 0.1 |
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities | $ 1.0 | $ 2.3 |
Leases - Lease Weighted Average (Details) |
Mar. 31, 2022 |
Mar. 31, 2021 |
---|---|---|
Leases [Abstract] | ||
Weighted-average Remaining Lease Term - Finance Leases | 9 months 18 days | 6 months |
Weighted-average Remaining Lease Term - Operating Leases | 5 years 9 months 18 days | 6 years 7 months 6 days |
Weighted-average Discount Rate - Finance Leases | 0.60% | 4.00% |
Weighted-average Discount Rate - Operating Leases | 3.40% | 4.00% |
Leases - Future Minimum Lease Payments Under Finance and Operating Leases (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Remainder of 2022 | $ 18.2 | |
2023 | 21.7 | |
2024 | 15.7 | |
2025 | 10.2 | |
2026 | 4.5 | |
2027 and Thereafter | 20.5 | |
Total Future Payments | 90.8 | |
Less Imputed Interest | 10.7 | |
Present Value of Minimum Lease Payments | $ 80.1 | $ 84.8 |
Income Taxes - Narrative (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 0 | |
Income taxes paid, net | $ 100,000 | $ 30,100,000 |
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