Fair Value (Tables)

12 Months Ended

Dec. 31, 2011


DECEMBER 31	2011				2010
(in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets
Cash and cash equivalents	$	820.4	$	820.4	$	290.4	$	290.4
Fixed maturities		6,284.7		6,284.7		4,797.9		4,797.9
Equity securities		246.4		246.4		128.6		128.6
Mortgage loans		4.7		5.0		5.5		5.8
Other investments		135.1		135.1		—		—

Total financial assets	$	7,491.3	$	7,491.6	$	5,222.4	$	5,222.7

Financial Liabilities
Legal indemnities	$	3.8	$	3.8	$	5.4	$	5.4
Debt		911.1		1,014.9		605.9		603.9

Total financial liabilities	$	914.9	$	1,018.7	$	611.3	$	609.3

Fair Value Of Assets On A Recurring Basis

		$ 4,917.9		$ 4,917.9		$ 4,917.9		$ 4,917.9
	December 31, 2011
(in millions)	Total		Level 1		Level 2		Level 3
Fixed maturities:
U.S. Treasury and government agencies	$	269.3	$	147.3	$	122.0	$	—
Foreign government		239.0		—		239.0		—
Municipal		1,028.0		—		1,014.4		13.6
Corporate		3,375.6		—		3,351.8		23.8
Residential mortgage-backed, U.S. agency backed		663.3		—		663.3		—
Residential mortgage-backed, non-agency		185.3		—		180.1		5.2
Commercial mortgage-backed		379.1		—		374.4		4.7
Asset-backed		145.1		—		116.9		28.2

Total fixed maturities		6,284.7		147.3		6,061.9		75.5
Equity securities		237.0		177.4		36.2		23.4
Other investments		135.1		—		135.1		—

Total investment assets at fair value	$	6,656.8	$	324.7	$	6,233.2	$	98.9

		$ 4,917.9		$ 4,917.9		$ 4,917.9		$ 4,917.9
	December 31, 2010
	Total		Level 1		Level 2		Level 3
Fixed maturities:
U.S. Treasury and government agencies	$	261.2	$	124.0	$	137.2	$	—
Municipal		954.7		—		938.1		16.6
Corporate		2,420.4		—		2,392.2		28.2
Residential mortgage-backed, U.S. agency backed		600.4		—		600.4		—
Residential mortgage-backed, non-agency		133.7		—		132.9		0.8
Commercial mortgage-backed		366.6		—		361.1		5.5
Asset-backed		60.9		—		47.4		13.5

Total fixed maturities		4,797.9		124.0		4,609.3		64.6
Equity securities		120.0		106.6		10.5		2.9

Total investment assets at fair value	$	4,917.9	$	230.6	$	4,619.8	$	67.5

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


YEAR ENDED DECEMBER 31, 2011
	Fixed Maturities
(in millions)	Municipal			Corporate			Residential mortgage- backed, non-agency			Commercial mortgage- backed			Asset- backed			Total			Equity Securities			Total Assets
Balance at beginning of year	$	16.6		$	28.2		$	0.8		$	5.5		$	13.5		$	64.6		$	2.9		$	67.5
Transfers into Level 3		—			14.5			—			—			—			14.5			—			14.5
Transfers out of Level 3		—			(17.3	)		(0.5	)		(7.3	)		—			(25.1	)		—			(25.1	)
Total gains (losses):
Included in earnings		(0.1	)		(0.7	)		—			—			0.1			(0.7	)		(1.4	)		(2.1	)
Included in other comprehensive income		0.2			0.3			(0.1	)		(0.1	)		0.8			1.1			(2.3	)		(1.2	)
Purchases and sales:
Purchases		—			11.8			—			7.3			6.0			25.1			—			25.1
Chaucer acquisition		—			0.1			5.6			—			8.8			14.5			24.2			38.7
Sales		(3.1	)		(13.1	)		(0.6	)		(0.7	)		(1.0	)		(18.5	)		—			(18.5	)

Balance at end of year	$	13.6		$	23.8		$	5.2		$	4.7		$	28.2		$	75.5		$	23.4		$	98.9


YEAR ENDED DECEMBER 31, 2010
	Fixed Maturities
(in millions)	Municipal			Corporate			Residential mortgage- backed, non-agency			Commercial mortgage- backed			Asset- backed			Total			Equity Securities			Total Assets
Balance at beginning of year	$	15.5		$	28.9		$	—		$	6.2		$	9.2		$	59.8		$	2.8		$	62.6
Transfers into Level 3		—			9.9			—			—			6.9			16.8			—			16.8
Transfers out of Level 3		—			(2.7	)		—			—			(2.0	)		(4.7	)		—			(4.7	)
Total gains (losses):
Included in earnings		—			0.7			—			—			—			0.7			(0.3	)		0.4
Included in other comprehensive income		(0.5	)		0.4			—			—			—			(0.1	)		(0.6	)		(0.7	)
Purchases and sales:
Purchases		3.0			3.3			1.4			—			2.0			9.7			1.0			10.7
Sales		(1.4	)		(12.3	)		(0.6	)		(0.7	)		(2.6	)		(17.6	)		—			(17.6	)

Balance at end of year	$	16.6		$	28.2		$	0.8		$	5.5		$	13.5		$	64.6		$	2.9		$	67.5

Schedule Of Gains And Losses Due To Change In Fair Value Level 3 Assets


YEARS ENDED DECEMBER 31,	2011									2010
(in millions)	Other-than- temporary impairments			Net realized investment gains (losses)			Total			Other-than- temporary impairments			Net realized investment gains (losses)		Total
Level 3 Assets:
Fixed maturities:
Municipal	$	—		$	(0.1	)	$	(0.1	)	$	—		$	—	$	—
Corporate		(0.9	)		0.2			(0.7	)		—			0.7		0.7
Asset-backed		—			0.1			0.1			—			—		—

Total fixed maturities		(0.9	)		0.2			(0.7	)		—			0.7		0.7
Equity securities		(1.4	)		—			(1.4	)		(0.3	)		—		(0.3	)

Total assets	$	(2.3	)	$	0.2		$	(2.1	)	$	(0.3	)	$	0.7	$	0.4

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income, and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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