Fair Value (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value Of Financial Instruments

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

(in millions)	June 30, 2012				December 31, 2011
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets
Cash and cash equivalents	$	520.8	$	520.8	$	820.4	$	820.4
Fixed maturities		6,534.8		6,534.8		6,284.7		6,284.7
Equity securities		367.5		367.5		246.4		246.4
Mortgage loans		4.3		4.6		4.7		5.0
Other investments		154.5		154.5		135.1		135.1
Total financial assets	$	7,581.9	$	7,582.2	$	7,491.3	$	7,491.6
Financial Liabilities
Debt	$	917.4	$	1,032.0	$	911.1	$	1,014.9

Fair Value, Assets Measured on Recurring Basis

The following tables provide, for each hierarchy level, the Company’s assets at June 30, 2012 and December 31, 2011 that are measured at fair value on a recurring basis.

	June 30, 2012
(in millions)	Total		Level 1		Level 2		Level 3
Fixed maturities:
U.S. Treasury and government agencies	$	198.8	$	73.5	$	125.3	$	-
Foreign governments		304.5		68.8		235.7		-
Municipal		1,030.3		-		1,013.4		16.9
Corporate		3,580.0		-		3,552.6		27.4
Residential mortgage-backed, U.S. agency backed		648.0		-		648.0		-
Residential mortgage-backed, non-agency		191.1		-		190.5		0.6
Commercial mortgage-backed		358.9		-		354.6		4.3
Asset-backed		223.2		-		199.0		24.2
Total fixed maturities		6,534.8		142.3		6,319.1		73.4
Equity securities		357.8		281.9		50.3		25.6
Other investments		153.6		-		153.6		-
Total investment assets at fair value	$	7,046.2	$	424.2	$	6,523.0	$	99.0

	December 31, 2011
	Total		Level 1		Level 2		Level 3
Fixed maturities:
U.S. Treasury and government agencies	$	269.3	$	147.3	$	122.0	$	-
Foreign governments		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

Estimated Fair Values of Financial Instruments Not Carried at Fair Value

The following table provides, for each hierarchy level, the Company’s estimated fair values of financial instruments that are not carried at fair value :

	June 30, 2012
(in millions)	Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	520.8	$	520.8	$	-	$	-
Equity securities		9.7		-		9.7		-
Mortgage loans		4.6		-		4.6		-
Other investments		0.9		-		0.9		-
Liabilities:
Debt	$	1,032.0	$	-	$	1,032.0	$	-

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

The table below provides 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		Residential mortgage- backed, non- agency		Commercial mortgage- backed		Asset- backed		Total		Equities Securities		Total Assets
Three Months Ended June 30, 2012
Balance April 1, 2012	$	17.0	$	28.7	$	0.7	$	4.5	$	24.3	$	75.2	$	21.4	$	96.6
Transfers out of Level 3		-		(2.1)		-		-		(1.0)		(3.1)		-		(3.1)
Total gains (losses):
Included in earnings		-		0.2		-		-		0.1		0.3		-		0.3
Included in other comprehensive income - net appreciation (depreciation) on available for sale securities		0.1		(0.3)		-		-		0.3		0.1		4.2		4.3
Purchases and sales:
Purchases		-		1.5		-		-		1.0		2.5		-		2.5
Sales		(0.2)		(0.6)		(0.1)		(0.2)		(0.5)		(1.6)		-		(1.6)
Balance June 30, 2012	$	16.9	$	27.4	$	0.6	$	4.3	$	24.2	$	73.4	$	25.6	$	99.0
Three Months Ended June 30, 2011
Balance April 1, 2011	$	15.9	$	34.3	$	0.6	$	5.3	$	13.4	$	69.5	$	2.9	$	72.4
Transfers out of Level 3		-		(6.5)		-		-		-		(6.5)		-		(6.5)
Total gains:
Included in other comprehensive income - net appreciation on available for sale securities		0.5		0.2		-		-		0.3		1.0		-		1.0
Purchases and sales:
Purchases		-		8.9		-		-		-		8.9		-		8.9
Sales		(0.3)		(0.1)		(0.1)		(0.2)		(0.2)		(0.9)		-		(0.9)
Balance June 30, 2011	$	16.1	$	36.8	$	0.5	$	5.1	$	13.5	$	72.0	$	2.9	$	74.9

	Fixed Maturities
(in millions)	Municipal		Corporate		Residential mortgage- backed, non- agency		Commercial mortgage- backed		Asset- backed		Total		Equities Securities		Total Assets
Six Months Ended June 30, 2012
Balance January 1, 2012	$	13.6	$	23.8	$	5.2	$	4.7	$	28.2	$	75.5	$	23.4	$	98.9
Transfers into Level 3		-		4.3		-		-		-		4.3		0.1		4.4
Transfers out of Level 3		-		(2.1)		-		-		(8.7)		(10.8)		-		(10.8)
Total gains (losses):
Included in earnings		-		0.3		-		-		-		0.3		(0.2)		0.1
Included in other comprehensive income-net appreciation (depreciation) on available for sale securities		0.7		0.5		0.1		-		(0.7)		0.6		3.0		3.6
Purchases and sales:
Purchases		3.0		1.5		-		-		6.2		10.7		-		10.7
Sales		(0.4)		(0.9)		(4.7)		(0.4)		(0.8)		(7.2)		(0.7)		(7.9)
Balance June 30, 2012	$	16.9	$	27.4	$	0.6	$	4.3	$	24.2	$	73.4	$	25.6	$	99.0
Six Months Ended June 30, 2011
Balance January 1, 2011	$	16.6	$	28.2	$	0.8	$	5.5	$	13.5	$	64.6	$	2.9	$	67.5
Transfers into Level 3		-		3.7		-		-		-		3.7		-		3.7
Transfer out of Level 3		-		(6.5)		-		-		-		(6.5)		-		(6.5)
Total gains (losses):
Included in earnings		-		-		-		-		-		-		(0.5)		(0.5)
Included in other comprehensive income-net appreciation on available for sale securities		0.1		0.3		-		-		0.3		0.7		0.5		1.2
Purchases and sales:
Purchases		-		11.8		-		-		-		11.8		-		11.8
Sales		(0.6)		(0.7)		(0.3)		(0.4)		(0.3)		(2.3)		-		(2.3)
Balance June 30, 2011	$	16.1	$	36.8	$	0.5	$	5.1	$	13.5	$	72.0	$	2.9	$	74.9

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

The following table summarizes gains and losses due to changes in fair value that are recorded in net income for Level 3 assets. For the quarter ended June 30, 2011, there was no impact on income relating to Level 3 securities.

Three Months Ended June 30, 2012
(in millions)	Net realized investment gains
Level 3 Assets:
Fixed maturities:
Corporate	$	0.2
Asset-backed		0.1
Total fixed maturities	$	0.3

	Six Months Ended June 30,
	2012						2011
(in millions)	Other-than- temporary impairments		Net realized investment gains (losses)		Total		Other-than- temporary impairments
Level 3 Assets:
Fixed maturities:
Corporate	$	-	$	0.3	$	0.3	$	-
Asset-backed		(0.1)		0.1		-		-
Total fixed maturities		(0.1)		0.4		0.3		-
Equities		-		(0.2)		(0.2)		(0.5)
Total assets	$	(0.1)	$	0.2	$	0.1	$	(0.5)

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 as of June 30, 2012. Where discounted cash flows are used, the internally-developed discount rate is adjusted by the significant unobservable inputs shown in the table. Valuations for assets based on broker quotes for which there is a lack of transparency as to inputs used to develop the valuations have been excluded.

	Fair Value (in millions)		Valuation Technique	Significant Unobservable Inputs	Range (Wtd Average)
Fixed maturities:
Municipal	$	16.9	Discounted cash flow	Discount for:   Small issue size   Long maturity   Above-market coupon	1.0-4.0% (3.1%) 0.5%(0.5%) 0.3-1.0% (0.5%)
Corporate		27.2	Discounted cash flow	Discount for:   Credit stress   Above-market coupon   Small issue size   Long maturity	2.5-3.0% (2.5%) 0.3-1.0% (0.7%) 0.3-3.0% (0.6%) 0.5%(0.5%)
Residential mortgage-backed, non-agency		0.6	Discounted cash flow	Discount for:   Small issue size	0.5%(0.5%)
Commercial mortgage-backed		4.3	Discounted cash flow	Discount for:   Credit stress   Small issue size   Above-market coupon   Lease structure	1.0%(1.0%) 0.5%(0.5%) 0.5%(0.5%) 0.3%(0.3%)
Asset-backed		24.2	Discounted cash flow	Discount for:   Long maturity   Small issue size   Above-market coupon   Lease structure	0.5-0.8% (0.7%) 0.3-2.0% (0.6%) 0.3-1.0% (0.4%) 0.3%(0.3%)
Equities		25.5	Market comparables	Net tangible asset market   multiples	1.0X (1.0X)