Fair Value (Tables)

9 Months Ended

Sep. 30, 2016



	September 30, 2016				December 31, 2015
	Carrying		Fair		Carrying		Fair
(in millions)	Value		Value		Value		Value
Financial Assets
Cash and cash equivalents	$	315.9	$	315.9	$	338.8	$	338.8
Fixed maturities		7,400.2		7,400.2		6,983.4		6,983.4
Equity securities		612.5		612.5		576.6		576.6
Other investments		448.3		463.5		365.4		367.9
Total financial assets	$	8,776.9	$	8,792.1	$	8,264.2	$	8,266.7
Financial Liabilities
Debt	$	797.9	$	895.9	$	803.1	$	927.8

Fair Value, Assets Measured on Recurring Basis



	September 30, 2016
(in millions)		Total		Level 1		Level 2		Level 3
Fixed maturities:
U.S. Treasury and government agencies	$	320.4	$	174.2	$	146.2	$	-
Foreign government		242.7		48.3		194.4		-
Municipal		1,136.4		-		1,104.1		32.3
Corporate		4,108.2		-		4,103.9		4.3
Residential mortgage-backed, U.S. agency backed		889.8		-		889.8		-
Residential mortgage-backed, non-agency		54.5		-		54.5		-
Commercial mortgage-backed		569.8		-		553.6		16.2
Asset-backed		78.4		-		78.4		-
Total fixed maturities		7,400.2		222.5		7,124.9		52.8
Equity securities		603.8		602.4		-		1.4
Other investments		99.5		-		95.9		3.6
Total investment assets at fair value	$	8,103.5	$	824.9	$	7,220.8	$	57.8



	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




		September 30, 2016
(in millions)		Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	315.9	$	315.9	$	-	$	-
Equity securities		8.7		-		8.7		-
Other investments		290.7		-		-		290.7
Liabilities:
Debt	$	895.9	$	-	$	895.9	$	-


		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
September 30, 2016
Balance July 1, 2016	$	34.4	$	4.4	$	16.7	$	0.4	$	55.9	$	4.9	$	60.8
Transfers out of Level 3		(1.2)		-		-		-		(1.2)		-		(1.2)
Total (losses) gains:
Included in other comprehensive
income - net (depreciation) appreciation
on available-for-sale securities		(0.1)		(0.1)		(0.1)		-		(0.3)		0.1		(0.2)
Sales		(0.8)		-		(0.4)		(0.4)		(1.6)		-		(1.6)
Balance September 30, 2016	$	32.3	$	4.3	$	16.2	$	-	$	52.8	$	5.0	$	57.8

Three Months Ended
September 30, 2015
Balance July 1, 2015	$	27.0	$	9.4	$	18.0	$	1.3	$	55.7	$	5.1	$	60.8
Transfers out of Level 3		-		(4.6)		-		-		(4.6)		-		(4.6)
Total gains (losses):
Included in total net realized investment gains		-		-		0.1		-		0.1		-		0.1
Included in other comprehensive
income - net appreciation
(depreciation) on
available-for-sale securities		0.4		-		(0.1)		(0.1)		0.2		-		0.2
Purchases and sales:
Purchases		3.1		-		-		-		3.1		-		3.1
Sales		(0.5)		(0.1)		(0.3)		-		(0.9)		-		(0.9)
Balance September 30, 2015	$	30.0	$	4.7	$	17.7	$	1.2	$	53.6	$	5.1	$	58.7



	Fixed Maturities
(in millions)	Municipal		Corporate		Commercial mortgage-backed		Asset-backed		Total		Equity and Other		Total Assets
Nine Months Ended
September 30, 2016
Balance January 1, 2016	$	34.4	$	3.7	$	17.0	$	0.5	$	55.6	$	4.9	$	60.5
Transfers out of Level 3		(1.2)		-		-		-		(1.2)		-		(1.2)
Total gains (losses):
Included in total net realized investment gains		0.1		(0.2)		-		-		(0.1)		-		(0.1)
Included in other comprehensive income-net appreciation on available-for-sale securities		1.5		0.6		0.6		-		2.7		0.1		2.8
Purchases and sales:
Purchases		-		0.3		-		-		0.3		-		0.3
Sales		(2.5)		(0.1)		(1.4)		(0.5)		(4.5)		-		(4.5)
Balance September 30, 2016	$	32.3	$	4.3	$	16.2	$	-	$	52.8	$	5.0	$	57.8

Nine Months Ended
September 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
Transfers out of Level 3		-		(4.6)		-		-		(4.6)		-		(4.6)
Total gains (losses):
Included in total net realized investment gains		-		0.1		0.1		-		0.2		-		0.2
Included in other comprehensive income-net (depreciation) appreciation on available-for-sale securities		(0.4)		(0.2)		(0.7)		(0.1)		(1.4)		0.1		(1.3)
Purchases and sales:
Purchases		6.2		-		-		-		6.2		-		6.2
Sales		(1.5)		(0.2)		(3.1)		-		(4.8)		-		(4.8)
Balance September 30, 2015	$	30.0	$	4.7	$	17.7	$	1.2	$	53.6	$	5.1	$	58.7

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

September 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:

32.3

34.4

cash flow

Small issue size
Credit stress
Above-market coupon

0.7 -6.8% (3.3%)

0.9 - 1.5% (1.2%)

0.3 - 1.0% (0.4%)

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

Corporate

Discounted

Discount for:

4.1

3.7

cash flow

Small issue size

Credit stress

Above-market coupon

2.0 - 2.5% (2.1%)

1.0% (1.0%)

0.3 - 0.8% (0.6%)

1.0% (1.0%)

10.0% (10.0%)

0.3 - 0.8% (0.6%)

Commercial mortgage-backed

Discounted

Discount for:

16.2

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:

0.5

cash flow

Small issue size

N/A

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