Fair Value (Tables)

6 Months Ended

Jun. 30, 2016



	June 30, 2016				December 31, 2015
	Carrying		Fair		Carrying		Fair
(in millions)	Value		Value		Value		Value
Financial Assets
Cash and cash equivalents	$	361.6	$	361.6	$	338.8	$	338.8
Fixed maturities		7,142.0		7,142.0		6,983.4		6,983.4
Equity securities		582.7		582.7		576.6		576.6
Other investments		423.0		430.5		365.4		367.9
Total financial assets	$	8,509.3	$	8,516.8	$	8,264.2	$	8,266.7
Financial Liabilities
Debt	$	797.8	$	893.9	$	803.1	$	927.8

Fair Value, Assets Measured on Recurring Basis



	June 30, 2016
(in millions)		Total		Level 1		Level 2		Level 3
Fixed maturities:
U.S. Treasury and government agencies	$	376.5	$	178.8	$	197.7	$	-
Foreign government		236.6		47.5		189.1		-
Municipal		1,159.9		-		1,125.5		34.4
Corporate		3,882.7		-		3,878.3		4.4
Residential mortgage-backed, U.S. agency backed		815.1		-		815.1		-
Residential mortgage-backed, non-agency		59.1		-		59.1		-
Commercial mortgage-backed		532.9		-		516.2		16.7
Asset-backed		79.2		-		78.8		0.4
Total fixed maturities		7,142.0		226.3		6,859.8		55.9
Equity securities		574.0		572.7		-		1.3
Other investments		94.1		-		90.5		3.6
Total investment assets at fair value	$	7,810.1	$	799.0	$	6,950.3	$	60.8



	December 31, 2015
(in millions)		Total		Level 1		Level 2		Level 3
Fixed maturities:
U.S. Treasury and government agencies	$	449.1	$	193.6	$	255.5	$	-
Foreign government		245.8		52.5		193.3		-
Municipal		1,120.3		-		1,085.9		34.4
Corporate		3,691.0		-		3,687.3		3.7
Residential mortgage-backed, U.S. agency backed		824.5		-		824.5		-
Residential mortgage-backed, non-agency		71.6		-		71.6		-
Commercial mortgage-backed		501.1		-		484.1		17.0
Asset-backed		80.0		-		79.5		0.5
Total fixed maturities		6,983.4		246.1		6,681.7		55.6
Equity securities		567.7		566.4		-		1.3
Other investments		104.5		-		100.9		3.6
Total investment assets at fair value	$	7,655.6	$	812.5	$	6,782.6	$	60.5

Estimated Fair Values of Financial Instruments Not Carried at Fair Value




		June 30, 2016
(in millions)		Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	361.6	$	361.6	$	-	$	-
Equity securities		8.7		-		8.7		-
Other investments		269.3		-		-		269.3
Liabilities:
Debt	$	893.9	$	-	$	893.9	$	-


		December 31, 2015
(in millions)		Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	338.8	$	338.8	$	-	$	-
Equity securities		8.9		-		8.9		-
Other investments		203.5		-		-		203.5
Liabilities:
Debt	$	927.8	$	-	$	927.8	$	-

Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)



		Fixed Maturities
(in millions)	Municipal		Corporate		Commercial mortgage-backed		Asset-backed		Total		Equity and Other		Total Assets
Three Months Ended
June 30, 2016
Balance April 1, 2016	$	34.7	$	3.8	$	16.8	$	0.5	$	55.8	$	4.9	$	60.7
Total gains:
Included in other comprehensive
income - net appreciation
on available-for-sale securities		0.6		0.7		0.2		-		1.5		-		1.5
Sales		(0.9)		(0.1)		(0.3)		(0.1)		(1.4)		-		(1.4)
Balance June 30, 2016	$	34.4	$	4.4	$	16.7	$	0.4	$	55.9	$	4.9	$	60.8

Three Months Ended
June 30, 2015
Balance April 1, 2015	$	27.2	$	9.5	$	20.9	$	0.8	$	58.4	$	5.1	$	63.5
Transfers into Level 3		-		-		-		0.5		0.5		-		0.5
Total gains (losses):
Included in earnings		-		0.1		-		-		0.1		-		0.1
Included in other comprehensive
income - net depreciation
on available-for-sale securities		(1.2)		(0.1)		(0.9)		-		(2.2)		-		(2.2)
Purchases and sales:
Purchases		1.4		-		-		-		1.4		-		1.4
Sales		(0.4)		(0.1)		(2.0)		-		(2.5)		-		(2.5)
Balance June 30, 2015	$	27.0	$	9.4	$	18.0	$	1.3	$	55.7	$	5.1	$	60.8



	Fixed Maturities
(in millions)	Municipal		Corporate		Commercial mortgage-backed		Asset-backed		Total		Equity and Other		Total Assets
Six Months Ended
June 30, 2016
Balance January 1, 2016	$	34.4	$	3.7	$	17.0	$	0.5	$	55.6	$	4.9	$	60.5
Total gains (losses):
Included in earnings		0.1		(0.2)		-		-		(0.1)		-		(0.1)
Included in other comprehensive income-net appreciation on available-for-sale securities		1.6		0.7		0.7		-		3.0		-		3.0
Purchases and sales:
Purchases		-		0.3		-		-		0.3		-		0.3
Sales		(1.7)		(0.1)		(1.0)		(0.1)		(2.9)		-		(2.9)
Balance June 30, 2016	$	34.4	$	4.4	$	16.7	$	0.4	$	55.9	$	4.9	$	60.8

Six Months Ended
June 30, 2015
Balance January 1, 2015	$	25.7	$	9.6	$	21.4	$	-	$	56.7	$	5.0	$	61.7
Transfers into Level 3		-		-		-		1.3		1.3		-		1.3
Total gains (losses):
Included in earnings		-		0.1		-		-		0.1		-		0.1
Included in other comprehensive income-net (depreciation) appreciation on available-for-sale securities		(0.8)		(0.2)		(0.6)		-		(1.6)		0.1		(1.5)
Purchases and sales:
Purchases		3.1		-		-		-		3.1		-		3.1
Sales		(1.0)		(0.1)		(2.8)		-		(3.9)		-		(3.9)
Balance June 30, 2015	$	27.0	$	9.4	$	18.0	$	1.3	$	55.7	$	5.1	$	60.8

Summary Gains and Losses due to Changes in Fair Value Recorded in Income for Level Three Assets


	Three Months Ended June 30,								Six Months Ended June 30,
	2016				2015				2016				2015
	Net realized		Other than		Net realized		Other than		Net realized		Other than		Net realized		Other than
	investment		temporary		investment		temporary		investment		temporary		investment		temporary
(in millions)	gains		impairments		gains		impairments		gains		impairments		gains		impairments
Level 3 Assets:
Fixed maturities:
Corporate	$	-	$	-	$	0.1	$	-	$	-	$	(0.2)	$	0.1	$	-
Municipal		-		-		-		-		0.1		-		-		-
Total fixed maturities	$	-	$	-	$	0.1	$	-	$	0.1	$	(0.2)	$	0.1	$	-

Schedule of Additional Information About Significant Unobservable Inputs Used in Fair Valuations of Level 3

June 30, 2016

December 31, 2015

Valuation

Significant

Fair

Range

Fair

Range

(in millions)

Technique

Unobservable Inputs

Value

(Wtd Average)

Value

(Wtd Average)

Fixed maturities:

Municipal

Discounted

Discount for:

34.4

cash flow

Small issue size
Credit stress
Above-market coupon

0.6 - 6.8% (3.2%)
0.9 - 1.5% (1.2%)
0.3 - 1.0% (0.4%)

Corporate

Discounted

Discount for:

4.2

3.7

cash flow

Small issue size
Above-market coupon
Credit stress

2.3 - 2.5% (2.4%)
0.3 - 0.8% (0.6%)
0.4% (0.4%)

1.0% (1.0%)

0.3 - 0.8% (0.6%)

10.0% (10.0%)

Commercial mortgage-backed

Discounted

Discount for:

16.7

17.0

cash flow

Small issue size
Above-market coupon
Lease structure

1.5 - 3.1% (2.6%)
0.5% (0.5%)
0.3% (0.3%)

0.5 - 1.0% (0.5%)
0.5% (0.5%)
0.3% (0.3%)

Asset-backed

Discounted

Discount for:

0.4

0.5

cash flow

Small issue size

0.7% (0.7%)

Equity securities

Market

Net tangible asset

1.1

comparables

market multiples

1.0X (1.0X)

Other

Discounted

Discount rate

3.6

18.0% (18.0%)

3.6

18.0% (18.0%)

cash flow