Fair Value (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

The estimated fair values of the financial instruments were as follows:

	September 30, 2022				December 31, 2021
	Carrying		Market		Carrying		Market
(in millions)	Value		Value		Value		Value
Financial Assets carried at:
Fair Value through AOCI:
Fixed maturities	$	7,200.9	$	7,200.9	$	7,723.9	$	7,723.9
Fair Value through Net Income:
Equity securities		399.5		399.5		661.3		661.3
Other investments		138.3		138.3		143.8		143.8
Amortized Cost/Cost:
Other investments		451.9		430.8		450.8		472.9
Cash and cash equivalents		164.8		164.8		230.9		230.9
Total financial instruments	$	8,355.4	$	8,334.3	$	9,210.7	$	9,232.8
Financial Liabilities carried at:
Amortized Cost:
Debt	$	782.2	$	704.5	$	781.6	$	845.5

Fair Value, Investment Assets Measured on Recurring Basis

The following tables provide, for each hierarchy level, the Company’s investment assets that were measured at fair value on a recurring basis.

	September 30, 2022
(in millions)	Total		Level 1		Level 2		Level 3
Fixed maturities:
U.S. Treasury and government agencies	$	379.9	$	244.0	$	135.9	$	—
Foreign government		2.1		—		2.1		—
Municipal		1,051.8		—		1,041.8		10.0
Corporate		3,616.8		—		3,616.7		0.1
Residential mortgage-backed		1,018.3		—		1,018.3		—
Commercial mortgage-backed		825.8		—		818.2		7.6
Asset-backed		306.2		—		306.2		—
Total fixed maturities		7,200.9		244.0		6,939.2		17.7
Equity securities		399.5		389.5		—		10.0
Other investments		4.3		—		—		4.3
Total investment assets at fair value	$	7,604.7	$	633.5	$	6,939.2	$	32.0

	December 31, 2021
(in millions)	Total		Level 1		Level 2		Level 3
Fixed maturities:
U.S. Treasury and government agencies	$	396.2	$	221.5	$	174.7	$	—
Foreign government		2.6		—		2.6		—
Municipal		1,200.8		—		1,186.8		14.0
Corporate		4,090.1		—		4,090.0		0.1
Residential mortgage-backed		1,069.6		—		1,069.6		—
Commercial mortgage-backed		824.4		—		813.1		11.3
Asset-backed		140.2		—		140.2		—
Total fixed maturities		7,723.9		221.5		7,477.0		25.4
Equity securities		661.3		651.2		—		10.1
Other investments		4.3		—		—		4.3
Total investment assets at fair value	$	8,389.5	$	872.7	$	7,477.0	$	39.8

Estimated Fair Values of Financial Instruments Not Carried at Fair Value

The following tables provide, for each hierarchy level, the Company’s estimated fair values of financial instruments that were not carried at fair value:

	September 30, 2022
(in millions)	Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	164.8	$	164.8	$	—	$	—
Other investments		430.8		—		6.1		424.7
Total financial instruments	$	595.6	$	164.8	$	6.1	$	424.7
Liabilities:
Debt	$	704.5	$	—	$	704.5	$	—

	December 31, 2021
(in millions)	Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	230.9	$	230.9	$	—	$	—
Other investments		472.9		—		2.8		470.1
Total financial instruments	$	703.8	$	230.9	$	2.8	$	470.1
Liabilities:
Debt	$	845.5	$	—	$	845.5	$	—

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

The following tables provide a reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3).

	Fixed Maturities
(in millions)	Municipal			Corporate			Commercial mortgage- backed			Total			Equity and Other			Total Assets
Three Months Ended September 30, 2022
Balance July 1, 2022	$	11.0		$	0.1		$	8.1		$	19.2		$	14.4		$	33.6
Total losses:
Included in total net realized and      unrealized investment losses		—			—			—			—			(0.1	)		(0.1	)
Included in other comprehensive loss-net    depreciation on available-for-sale securities		(0.3	)		—			(0.4	)		(0.7	)		—			(0.7	)
Sales		(0.7	)		—			(0.1	)		(0.8	)		—			(0.8	)
Balance September 30, 2022	$	10.0		$	0.1		$	7.6		$	17.7		$	14.3		$	32.0
Change in unrealized losses for the period    included in other comprehensive loss for    assets held at the end of the period	$	(0.4	)	$	—		$	(0.3	)	$	(0.7	)	$	—		$	(0.7	)
Three Months Ended September 30, 2021
Balance July 1, 2021	$	5.5		$	0.4		$	11.7		$	17.6		$	9.6		$	27.2
Total gains:
Included in total net realized and unrealized    investment gains		—			—			—			—			4.5			4.5
Sales		(0.1	)		(0.3	)		(0.2	)		(0.6	)		—			(0.6	)
Balance September 30, 2021	$	5.4		$	0.1		$	11.5		$	17.0		$	14.1		$	31.1
Change in unrealized losses for the period    included in other comprehensive loss for    assets held at the end of the period	$	—		$	—		$	—		$	—		$	—		$	—

	Fixed Maturities
(in millions)	Municipal			Corporate			Commercial mortgage- backed			Total			Equity and Other			Total Assets
Nine Months Ended September 30, 2022
Balance January 1, 2022	$	14.0		$	0.1		$	11.3		$	25.4		$	14.4		$	39.8
Total losses:
Included in total net realized and unrealized    investment losses		—			—			—			—			(0.1	)		(0.1	)
Included in other comprehensive loss-net    depreciation on available-for-sale securities		(1.1	)		—			(1.2	)		(2.3	)		—			(2.3	)
Sales		(2.9	)		—			(2.5	)		(5.4	)		—			(5.4	)
Balance September 30, 2022	$	10.0		$	0.1		$	7.6		$	17.7		$	14.3		$	32.0
Change in unrealized losses for the period    included in other comprehensive loss for    assets held at the end of the period	$	(1.2	)	$	—		$	(1.1	)	$	(2.3	)	$	—		$	(2.3	)
Nine Months Ended September 30, 2021
Balance January 1, 2021	$	7.0		$	0.5		$	12.4		$	19.9		$	9.5		$	29.4
Total gains (losses):
Included in total net realized and unrealized    investment gains		—			—			—			—			4.6			4.6
Included in other comprehensive loss-net    depreciation on available-for-sale securities		—			—			(0.4	)		(0.4	)		—			(0.4	)
Sales		(1.6	)		(0.4	)		(0.5	)		(2.5	)		—			(2.5	)
Balance September 30, 2021	$	5.4		$	0.1		$	11.5		$	17.0		$	14.1		$	31.1
Change in unrealized losses for the period    included in other comprehensive loss for    assets held at the end of the period	$	—		$	—		$	(0.4	)	$	(0.4	)	$	—		$	(0.4	)

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

The following table provides quantitative information about the significant unobservable inputs used by the Company in the fair value measurements of Level 3 assets. Where discounted cash flows were used in the valuation of fixed maturities, the internally-developed discount rate was adjusted by the significant unobservable inputs shown in the table.

			September 30, 2022			December 31, 2021
	Valuation	Significant	Fair		Range	Fair		Range
(in millions)	Technique	Unobservable Inputs	Value		(Wtd Average)	Value		(Wtd Average)
Fixed maturities:
Municipal	Discounted cash flow	Discount for:    Small issue size	$	10.0	4.5 - 6.8% (6.6%)	$	14.0	4.5 - 6.8% (6.5%)
Corporate	Discounted cash flow	Discount for:    Small issue size    Above-market coupon	0.1		2.5% (2.5%) 0.3% (0.3%)		0.1	2.5% (2.5%)     0.3% (0.3%)
Commercial    mortgage-backed	Discounted cash flow	Discount for:    Small issue size    Above-market coupon    Lease structure	7.6		2.3 - 3.1% (2.9%) 0.5% (0.5%) 0.3% (0.3%)		11.3	1.9 - 3.1% (2.7%) 0.5% (0.5%) 0.3% (0.3%)
Equity securities	Market comparables	Net tangible asset	1.2		N/A		1.3	N/A
	Internal price	Unadjusted price from    financing round	8.8		11.18 (11.18)		8.8	11.18 (11.18)
Other	Discounted cash flow	Discount rate	4.3		16.1% (16.1%)	4.3		16.1% (16.1%)