XML 62 R37.htm IDEA: XBRL DOCUMENT v3.10.0.1
Investments (Tables)
 12 Months Ended
Dec. 31, 2018
Investments Debt And Equity Securities [Abstract]  
Schedule of Available-for-sale Securities Reconciliation

The amortized cost and fair value of available-for-sale fixed maturities were as follows:

 

DECEMBER 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

OTTI

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

 

 

 

 

Unrealized

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

 

Losses

 

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agencies

 

$

414.7

 

 

$

2.4

 

 

$

7.2

 

 

$

409.9

 

 

$

—

 

Foreign government

 

 

7.3

 

 

 

0.1

 

 

 

—

 

 

 

7.4

 

 

 

—

 

Municipal

 

 

879.0

 

 

 

16.6

 

 

 

9.8

 

 

 

885.8

 

 

 

—

 

Corporate

 

 

3,476.6

 

 

 

26.1

 

 

 

92.0

 

 

 

3,410.7

 

 

 

6.6

 

Residential mortgage-backed

 

 

728.4

 

 

 

2.7

 

 

 

14.7

 

 

 

716.4

 

 

 

—

 

Commercial mortgage-backed

 

 

648.4

 

 

 

1.7

 

 

 

9.8

 

 

 

640.3

 

 

 

—

 

Asset-backed

 

 

91.5

 

 

 

0.2

 

 

 

0.7

 

 

 

91.0

 

 

 

—

 

Fixed maturities, excluding held-for-sale (Chaucer)

 

 

6,245.9

 

 

 

49.8

 

 

 

134.2

 

 

 

6,161.5

 

 

 

6.6

 

Fixed maturities, held-for-sale

 

 

24.9

 

 

 

—

 

 

 

0.4

 

 

 

24.5

 

 

 

—

 

Total fixed maturities

 

$

6,270.8

 

 

$

49.8

 

 

$

134.6

 

 

$

6,186.0

 

 

$

6.6

 

 

DECEMBER 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

OTTI

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

 

 

 

 

Unrealized

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

 

Losses

 

Fixed maturities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agencies

 

$

322.1

 

 

$

3.4

 

 

$

3.2

 

 

$

322.3

 

 

$

—

 

Foreign government

 

 

8.2

 

 

 

0.3

 

 

 

—

 

 

 

8.5

 

 

 

—

 

Municipal

 

 

910.1

 

 

 

29.7

 

 

 

5.8

 

 

 

934.0

 

 

 

—

 

Corporate

 

 

3,134.2

 

 

 

84.1

 

 

 

21.7

 

 

 

3,196.6

 

 

 

6.5

 

Residential mortgage-backed

 

 

632.3

 

 

 

5.8

 

 

 

4.9

 

 

 

633.2

 

 

 

—

 

Commercial mortgage-backed

 

 

590.3

 

 

 

7.2

 

 

 

2.5

 

 

 

595.0

 

 

 

—

 

Asset-backed

 

 

59.9

 

 

 

0.1

 

 

 

0.3

 

 

 

59.7

 

 

 

—

 

Fixed maturities, excluding held-for-sale (Chaucer)

 

 

5,657.1

 

 

 

130.6

 

 

 

38.4

 

 

 

5,749.3

 

 

 

6.5

 

Fixed maturities, held-for-sale

 

 

2,031.7

 

 

 

14.6

 

 

 

15.9

 

 

 

2,030.4

 

 

 

0.4

 

Total fixed maturities

 

$

7,688.8

 

 

$

145.2

 

 

$

54.3

 

 

$

7,779.7

 

 

$

6.9

 
Investments Classified by Contractual Maturity Date

The amortized cost and fair value by maturity periods for fixed maturities are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties, or the Company may have the right to put or sell the obligations back to the issuers.

 

DECEMBER 31

 

2018

 

(in millions)

 

Amortized

Cost

 

 

Fair Value

 

Due in one year or less

 

$

207.4

 

 

$

208.5

 

Due after one year through five years

 

 

1,830.9

 

 

 

1,830.0

 

Due after five years through ten years

 

 

2,465.1

 

 

 

2,398.7

 

Due after ten years

 

 

274.2

 

 

 

276.6

 

 

 

 

4,777.6

 

 

 

4,713.8

 

Mortgage-backed and asset-backed securities

 

 

1,468.3

 

 

 

1,447.7

 

Fixed maturities, excluding held-for-sale (Chaucer)

 

 

6,245.9

 

 

 

6,161.5

 

Fixed maturities, held-for-sale

 

 

24.9

 

 

 

24.5

 

Total fixed maturities

 

$

6,270.8

 

 

$

6,186.0

 
Unrealized Gains and Losses on Available-for-Sale and Other Securities

Unrealized gains and losses on available-for-sale and other securities are summarized in the following table.

 

YEARS ENDED DECEMBER 31

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

 

 

 

 

Equity

 

 

 

 

 

 

 

Fixed

 

 

Securities and

 

 

 

 

 

2018

 

Maturities

 

 

Other

 

 

Total

 

Net appreciation, beginning of year

 

$

110.1

 

 

$

95.3

 

 

$

205.4

 

Net depreciation on available-for-sale securities

 

 

(203.7

)

 

 

—

 

 

 

(203.7

)

Provision for deferred income taxes

 

 

33.6

 

 

 

—

 

 

 

33.6

 

Amount realized with sale of Chaucer, net of tax

 

 

19.1

 

 

 

—

 

 

 

19.1

 

Cumulative effect adjustment for ASUs 2016-01 and 2018-02, net of tax

 

 

13.7

 

 

 

(95.3

)

 

 

(81.6

)

 

 

 

(137.3

)

 

 

(95.3

)

 

 

(232.6

)

Net depreciation, end of year

 

$

(27.2

)

 

$

—

 

 

$

(27.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

Net appreciation, beginning of year

 

$

127.1

 

 

$

58.9

 

 

$

186.0

 

Net appreciation (depreciation) on available-for-sale securities

 

 

(15.0

)

 

 

55.9

 

 

 

40.9

 

Provision for deferred income taxes

 

 

(11.2

)

 

 

(19.5

)

 

 

(30.7

)

Change in OTTI losses recognized in other comprehensive income

 

 

9.2

 

 

 

—

 

 

 

9.2

 

 

 

 

(17.0

)

 

 

36.4

 

 

 

19.4

 

Net appreciation, end of year

 

$

110.1

 

 

$

95.3

 

 

$

205.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

Net appreciation, beginning of year

 

$

116.5

 

 

$

33.4

 

 

$

149.9

 

Net appreciation on available-for-sale securities

 

 

36.9

 

 

 

39.2

 

 

 

76.1

 

Provision for deferred income taxes

 

 

(37.5

)

 

 

(13.7

)

 

 

(51.2

)

Change in OTTI losses recognized in other comprehensive income

 

 

11.2

 

 

 

—

 

 

 

11.2

 

 

 

 

10.6

 

 

 

25.5

 

 

 

36.1

 

Net appreciation, end of year

 

$

127.1

 

 

$

58.9

 

 

$

186.0

 
Schedule of Unrealized Loss on Investments

The following tables provide information about the Company’s available-for-sale fixed maturity securities that were in an unrealized loss position at December 31, 2018 and 2017 including the length of time the securities have been in an unrealized loss position:

 

DECEMBER 31, 2018

 

12 months or less

 

 

Greater than 12 months

 

 

Total

 

(in millions)

 

Gross

 

 

 

 

 

 

Gross

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

Investment grade:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agencies

 

$

1.1

 

 

$

66.0

 

 

$

6.1

 

 

$

210.9

 

 

$

7.2

 

 

$

276.9

 

Foreign governments

 

 

—

 

 

 

2.0

 

 

 

—

 

 

 

0.8

 

 

 

—

 

 

 

2.8

 

Municipal

 

 

0.8

 

 

 

110.0

 

 

 

9.0

 

 

 

248.0

 

 

 

9.8

 

 

 

358.0

 

Corporate

 

 

30.0

 

 

 

1,277.9

 

 

 

43.9

 

 

 

781.6

 

 

 

73.9

 

 

 

2,059.5

 

Residential mortgage-backed

 

 

2.6

 

 

 

201.2

 

 

 

12.1

 

 

 

323.7

 

 

 

14.7

 

 

 

524.9

 

Commercial mortgage-backed

 

 

3.4

 

 

 

293.0

 

 

 

6.4

 

 

 

175.5

 

 

 

9.8

 

 

 

468.5

 

Asset-backed

 

 

0.4

 

 

 

42.3

 

 

 

0.3

 

 

 

18.0

 

 

 

0.7

 

 

 

60.3

 

Total investment grade

 

 

38.3

 

 

 

1,992.4

 

 

 

77.8

 

 

 

1,758.5

 

 

 

116.1

 

 

 

3,750.9

 

Below investment grade:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.9

 

 

 

—

 

 

 

0.9

 

Corporate

 

 

8.1

 

 

 

185.6

 

 

 

10.0

 

 

 

54.0

 

 

 

18.1

 

 

 

239.6

 

Total below investment grade

 

 

8.1

 

 

 

185.6

 

 

 

10.0

 

 

 

54.9

 

 

 

18.1

 

 

 

240.5

 

Fixed maturities, excluding held-for-sale (Chaucer)

 

 

46.4

 

 

 

2,178.0

 

 

 

87.8

 

 

 

1,813.4

 

 

 

134.2

 

 

 

3,991.4

 

Fixed maturities, held-for-sale

 

 

0.1

 

 

 

4.0

 

 

 

0.3

 

 

 

18.0

 

 

 

0.4

 

 

 

22.0

 

Total fixed maturities

 

$

46.5

 

 

$

2,182.0

 

 

$

88.1

 

 

$

1,831.4

 

 

$

134.6

 

 

$

4,013.4

 

 

DECEMBER 31, 2017

 

12 months or less

 

 

Greater than 12 months

 

 

Total

 

(in millions)

 

Gross

 

 

 

 

 

 

Gross

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

Investment grade:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and government agencies

 

$

1.1

 

 

$

146.3

 

 

$

2.1

 

 

$

62.3

 

 

$

3.2

 

 

$

208.6

 

Foreign governments

 

 

—

 

 

 

0.1

 

 

 

—

 

 

 

0.6

 

 

 

—

 

 

 

0.7

 

Municipal

 

 

1.7

 

 

 

183.8

 

 

 

4.1

 

 

 

101.2

 

 

 

5.8

 

 

 

285.0

 

Corporate

 

 

3.0

 

 

 

386.2

 

 

 

10.8

 

 

 

395.9

 

 

 

13.8

 

 

 

782.1

 

Residential mortgage-backed

 

 

1.4

 

 

 

196.3

 

 

 

3.5

 

 

 

159.0

 

 

 

4.9

 

 

 

355.3

 

Commercial mortgage-backed

 

 

0.9

 

 

 

139.2

 

 

 

1.6

 

 

 

61.9

 

 

 

2.5

 

 

 

201.1

 

Asset-backed

 

 

0.3

 

 

 

34.6

 

 

 

—

 

 

 

2.4

 

 

 

0.3

 

 

 

37.0

 

Total investment grade

 

 

8.4

 

 

 

1,086.5

 

 

 

22.1

 

 

 

783.3

 

 

 

30.5

 

 

 

1,869.8

 

Below investment grade:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

1.5

 

 

 

48.7

 

 

 

6.4

 

 

 

39.0

 

 

 

7.9

 

 

 

87.7

 

Fixed maturities, excluding held-for-sale (Chaucer)

 

 

9.9

 

 

 

1,135.2

 

 

 

28.5

 

 

 

822.3

 

 

 

38.4

 

 

 

1,957.5

 

Fixed maturities, held-for-sale

 

 

5.7

 

 

 

803.3

 

 

 

10.2

 

 

 

389.6

 

 

 

15.9

 

 

 

1,192.9

 

Total fixed maturities

 

$

15.6

 

 

$

1,938.5

 

 

$

38.7

 

 

$

1,211.9

 

 

$

54.3

 

 

$

3,150.4

 
Schedule of Other Investments Mortgage participations and other mortgage loans were comprised of the following property types and geographic locations

DECEMBER 31

 

2018

 

 

2017

 

(in millions)

 

 

 

 

 

 

Property Type:

 

 

 

 

 

 

 

 

Office

 

$

141.1

 

 

$

134.6

 

Apartments

 

 

85.5

 

 

 

64.9

 

Retail

 

 

66.9

 

 

 

64.1

 

Hotel

 

 

62.7

 

 

 

58.1

 

Industrial

 

 

50.6

 

 

 

45.0

 

Valuation allowance

 

 

(1.1

)

 

 

(0.9

)

Total

 

$

405.7

 

 

$

365.8

 

 

DECEMBER 31

 

2018

 

 

2017

 

(in millions)

 

 

 

 

 

 

Geographic Region:

 

 

 

 

 

 

 

 

Pacific

 

$

92.5

 

 

$

87.6

 

South Atlantic

 

 

82.1

 

 

 

76.9

 

West South Central

 

 

65.9

 

 

 

66.1

 

Mid-Atlantic

 

 

53.4

 

 

 

53.4

 

New England

 

 

35.3

 

 

 

28.8

 

East North Central

 

 

27.9

 

 

 

16.5

 

Mountain

 

 

12.5

 

 

 

5.0

 

Other

 

 

37.2

 

 

 

32.4

 

Valuation allowance

 

 

(1.1

)

 

 

(0.9

)

Total

 

$

405.7

 

 

$

365.8