Document and Entity Information
Document and Entity Information - $ / shares | 3 Months Ended | ||
Mar. 31, 2021 | Apr. 27, 2021 | Dec. 31, 2020 | |
Cover [Abstract] | |||
Document Type | 10-Q | ||
Document Quarterly Report | true | ||
Document Period End Date | Mar. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-18298 | ||
Entity Registrant Name | Kemper Corporation | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 95-4255452 | ||
Entity Address, Address Line One | 200 E. Randolph Street | ||
Entity Address, Address Line Two | Suite 3300 | ||
Entity Address, City or Town | Chicago | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60601 | ||
City Area Code | 312 | ||
Local Phone Number | 661-4600 | ||
Title of 12(b) Security | Common Stock, par value $0.10 per share | ||
Trading Symbol | KMPR | ||
Security Exchange Name | NYSE | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 64,566,506 | ||
Entity Central Index Key | 0000860748 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | Q1 | ||
Amendment Flag | false | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Earned Premiums | $ 1,200.8 | $ 1,166.4 |
Net Investment Income | 103.1 | 85.6 |
Variable Interest Entity, Measure of Activity, Income or Loss before Tax | (15.4) | 0 |
Other Income | 1.5 | 90.3 |
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | 52.2 | (117.8) |
Net Realized Gains on Sales of Investments | 13.8 | 16.5 |
Impairment Losses | (4) | (12) |
Total Revenues | 1,352 | 1,229 |
Expenses: | ||
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses | 889.5 | 835.2 |
Insurance Expenses | 283.7 | 271.6 |
Interest and Other Expenses | 57.2 | 44.5 |
Total Expenses | 1,230.4 | 1,151.3 |
Income before Income Taxes | 121.6 | 77.7 |
Income Tax Benefit (Expense) | 1.6 | (13.7) |
Net Income | $ 123.2 | $ 64 |
Net Income Per Unrestricted Share: | ||
Basic (in dollars per share) | $ 1.88 | $ 0.96 |
Diluted (in dollars per share) | $ 1.85 | $ 0.95 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net Income | $ 123.2 | $ 64 |
Other Comprehensive Income (Loss) Before Income Taxes: | ||
Decrease (Increase) in Net Unrecognized Postretirement Benefit Costs | 0.3 | 0.7 |
Gain on Cash Flow Hedges | 0.1 | 0.1 |
Other Comprehensive Income (Loss) Before Income Taxes | (365.7) | (204) |
Other Comprehensive Income Tax Benefit (Expense) | 75.7 | 42.8 |
Other Comprehensive Income (Loss), Net of Taxes | (290) | (161.2) |
Total Comprehensive Income (Loss) | (166.8) | (97.2) |
No Credit Losses Recognized in Condensed Consolidated Statements of Income | ||
Other Comprehensive Income (Loss) Before Income Taxes: | ||
Changes in Net Unrealized Holding Gains (Losses) on Investment Securities with: | (364) | (201.9) |
Credit Losses Recognized in Condensed Consolidated Statements of Income | ||
Other Comprehensive Income (Loss) Before Income Taxes: | ||
Changes in Net Unrealized Holding Gains (Losses) on Investment Securities with: | $ (2.1) | $ (2.9) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Investments: | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $6,929.6; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $4.6; 2020 - $3.3) | $ 7,479.4 | $ 7,605.9 |
Equity Securities at Fair Value (Cost: 2021 - $680.6; 2020 - $684.1) | 897.4 | 858.5 |
Equity Securities at Modified Cost | 36 | 40.1 |
Convertible Securities at Fair Value | 42.6 | 39.9 |
Short-term Investments at Cost which Approximates Fair Value | 196.9 | 875.4 |
Other Investments | 896.8 | 779 |
Total Investments | 9,822.7 | 10,424.1 |
Cash | 547.4 | 206.1 |
Premiums Receivable, Net | 1,260.9 | 1,194.5 |
Other Receivables | 225.4 | 222.4 |
Deferred Policy Acquisition Costs | 611.7 | 589.3 |
Goodwill | 1,114 | 1,114 |
Current Income Tax Assets | 65.6 | 15.6 |
Other Assets | 556 | 575.9 |
Total Assets | 14,203.7 | 14,341.9 |
Insurance Reserves: | ||
Life and Health | 3,541.6 | 3,527.5 |
Property and Casualty | 1,999.5 | 1,982.5 |
Total Insurance Reserves | 5,541.1 | 5,510 |
Unearned Premiums | 1,713 | 1,615.1 |
Policyholder Obligations | 466.5 | 467 |
Deferred Income Tax Liabilities | 227.6 | 285.7 |
Accrued Expenses and Other Liabilities | 793.8 | 727.9 |
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2021 - $1,213.3; 2020 - $1,247.8) | 1,122.6 | 1,172.8 |
Total Liabilities | 9,864.6 | 9,778.5 |
Shareholders’ Equity: | ||
Common Stock, $0.10 Par Value, 100,000,000 Shares Authorized; 65,016,340 Shares Issued and Outstanding at March 31, 2021 and 65,436,207 Shares Issued and Outstanding at December 31, 2020 | 6.5 | 6.5 |
Paid-in Capital | 1,802.1 | 1,805.2 |
Retained Earnings | 2,140 | 2,071.2 |
Accumulated Other Comprehensive Income | 390.5 | 680.5 |
Total Shareholders’ Equity | 4,339.1 | 4,563.4 |
Total Liabilities and Shareholders’ Equity | 14,203.7 | 14,341.9 |
Equity Method Limited Liability Investments | ||
Investments: | ||
Equity Method Investments | 219.2 | 204 |
Alternative Energy Partnership Investments | ||
Investments: | ||
Equity Method Investments | $ 54.4 | $ 21.3 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, at amortized cost | $ 6,929,600,000 | $ 6,692,700,000 |
Fixed maturities, allowance for credit losses | (4,600,000) | (3,300,000) |
Equity securities, at cost | 680,600,000 | 684,100,000 |
Premium receivables, allowance for credit losses | 11,300,000 | 20,900,000 |
Long-term Debt | $ 1,213,300,000 | $ 1,247,800,000 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 100,000,000 | |
Common stock, shares outstanding (in shares) | 65,016,340 | 65,436,207 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Cash Flows from Operating Activities: | |||
Net Income | $ 123.2 | $ 64 | |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Net Realized Investment (Gains) Losses | (13.8) | (16.5) | |
Impairment Losses | 4 | 12 | |
Depreciation and Amortization of Property, Equipment and Software | 11.1 | 8 | |
Amortization of Intangibles Assets Acquired | 3.2 | 4.7 | |
(Increase) Decrease in Value of Equity and Convertible Securities | (52.2) | 117.8 | |
Receivables from Policyholders | (66.7) | (94.3) | |
Reinsurance Recoverables | 5 | 9.8 | |
Deferred Policy Acquisition Costs | (21.3) | (13.8) | |
Insurance Reserves | 29.8 | (29.4) | |
Unearned Premiums | 97.9 | 75.9 | |
Income Taxes | (37.3) | 14.7 | |
Other Assets and Liabilities | 60.4 | (89.9) | |
Net Cash Provided by Operating Activities | 140.6 | 62.3 | |
Cash Flows from Investing Activities: | |||
Proceeds from Sales, Calls and Maturities of Fixed Maturities | 291.2 | 225.5 | |
Proceeds from the Sales or Paydowns of Investments: | |||
Equity Securities | 27.3 | 372.1 | |
Real Estate Investments | 0 | 1.9 | |
Mortgage Loans | 12.8 | 8.5 | |
Other Investments | 7 | 4 | |
Purchases of Investments: | |||
Fixed Maturities | (503.2) | (393.9) | |
Equity Securities | (12.5) | (290) | |
Real Estate Investments | (0.2) | (0.1) | |
Corporate-owned Life Insurance | (100) | (100) | |
Mortgage Loans | (33.7) | (4.6) | |
Other Investments | (50.1) | (9.2) | |
Net Sales (Purchases) of Short-term Investments | 677.4 | 301.8 | |
Acquisition of Software and Long-lived Assets | (9.2) | (20.1) | |
Other | 4.9 | (1.9) | |
Net Cash Provided by Investing Activities | 311.7 | 94 | |
Cash Flows from Financing Activities: | |||
Repayment of Long-term Debt | (50) | 0 | |
Proceeds from Policyholder Obligations | 60.7 | 156.6 | |
Repayment of Policyholder Obligations | (61.5) | (36.2) | |
Proceeds from Shares Issued under Employee Stock Purchase Plan | 1.2 | 1 | |
Common Stock Repurchases | (42.1) | (95.9) | |
Dividends and Dividend Equivalents Paid | (21) | (20) | |
Other | 1.7 | 2.7 | |
Net Cash (Used in) Provided by Financing Activities | (111) | 8.2 | |
Increase in Cash | 341.3 | 164.5 | |
Cash, Beginning of Year | 206.1 | 136.8 | $ 136.8 |
Cash, End of Period | 547.4 | 301.3 | $ 206.1 |
Equity Method Limited Liability Investments | |||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Income (Loss) from Equity Method Investments | 18.1 | 0.7 | |
Alternative Energy Partnership Investments | |||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Income (Loss) from Equity Method Investments | $ (15.4) | $ 0 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income |
Beginning balance (in shares) at Dec. 31, 2019 | 66.7 | ||||
Beginning balance at Dec. 31, 2019 | $ 3,972.3 | $ 6.7 | $ 1,819.2 | $ 1,810.3 | $ 336.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 64 | 64 | |||
Other Comprehensive Income (Loss), Net of Tax | (161.2) | (161.2) | |||
Cash Dividends and Dividend Equivalents to Shareholders | (20.2) | (20.2) | |||
Repurchases of Common Stock (in shares) | 1.5 | ||||
Repurchases of Common Stock (Note 9) | (101.2) | $ (0.1) | (40.7) | (60.4) | |
Issuances of Common Stock, Net of Transaction Costs (in shares) | 0 | ||||
Issuance of Common Stock, Net of Transaction Costs (Note 9) | 1 | 1 | |||
Equity-based Compensation Cost | 7.3 | 7.3 | |||
Equity-based Awards, Net of Shares Exchanged (in shares) | 0.2 | ||||
Equity-based Awards, Net of Shares Exchanged | (1.2) | $ (0.1) | 1.4 | (2.5) | |
Ending balance (in shares) at Mar. 31, 2020 | 65.4 | ||||
Ending balance at Mar. 31, 2020 | 3,760.8 | $ 6.5 | 1,788.2 | 1,791.2 | 174.9 |
Beginning balance (in shares) at Dec. 31, 2020 | 65.4 | ||||
Beginning balance at Dec. 31, 2020 | 4,563.4 | $ 6.5 | 1,805.2 | 2,071.2 | 680.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 123.2 | 123.2 | |||
Other Comprehensive Income (Loss), Net of Tax | (290) | (290) | |||
Cash Dividends and Dividend Equivalents to Shareholders | (21) | (21) | |||
Repurchases of Common Stock (in shares) | 0.6 | ||||
Repurchases of Common Stock (Note 9) | (47.1) | $ 0 | (16.4) | (30.7) | |
Shares Issued Under Employee Stock Purchase Plan | 1.2 | 1.2 | |||
Equity-based Compensation Cost | 12.3 | 12.3 | |||
Equity-based Awards, Net of Shares Exchanged (in shares) | 0.2 | ||||
Equity-based Awards, Net of Shares Exchanged | (2.9) | (0.2) | (2.7) | ||
Ending balance (in shares) at Mar. 31, 2021 | 65 | ||||
Ending balance at Mar. 31, 2021 | $ 4,339.1 | $ 6.5 | $ 1,802.1 | $ 2,140 | $ 390.5 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Accounting Policies | Basis of Presentation and Accounting Policies The unaudited interim Condensed Consolidated Financial Statements included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) on a basis consistent with reporting interim financial information pursuant to the rules and regulations for Form 10-Q and Article 10 of Regulation S-X of the SEC and include the accounts of Kemper Corporation and its subsidiaries. All intercompany accounts and transactions have been eliminated. Certain prior year amounts in the Condensed Consolidated Statements of Cash Flows have been reclassified to conform to the current presentation. Certain financial information that is included in annual financial statements, including certain financial statement footnote disclosures, prepared in accordance with GAAP is not required by the rules and regulations of the SEC for interim financial reporting and has been condensed or omitted. In the opinion of the Company’s management, the Condensed Consolidated Financial Statements include all adjustments necessary to fairly present the financial position, results of operations and cash flows for the interim periods presented. The preparation of interim financial statements requires significant management estimates. Due to this factor and other factors, such as the seasonal nature of some portions of the insurance business, as well as market conditions and the impacts of COVID-19, annualizing the results of operations for the three months ended March 31, 2021 would not necessarily be indicative of the results expected for the full fiscal year. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with the Company’s Consolidated Financial Statements and related notes included in Kemper’s Annual Report for the year ended December 31, 2020. As of March 31, 2021, the Company has elected to display its investments in Alternative Energy Partnerships in the Condensed Consolidated Statements of Income and Condensed Consolidated Balance Sheets as Change in Value of Alternative Energy Partnership Investments and Alternative Energy Partnership Investments, respectively. These were previously reported in Net Investment Income on the Condensed Consolidated Statements of Income and in Equity Method Limited Liability Investments on the Condensed Consolidated Balance Sheets. Impacts to prior period presentation are not material. Adoption of New Accounting Guidance Guidance Adopted in 2021 In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . ASU 2019-12 is intended to simplify accounting for income taxes by eliminating certain exceptions to the guidance in ASC Topic 740, Income Taxes , related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. Further, ASU 2019-12 clarifies that single-member limited liability companies and similar disregarded entities that are not subject to income tax are not required to recognize an allocation of consolidated income tax expense in their separate financial statements, but they could elect to do so. ASU 2019-12 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods. The adoption of ASU 2019-12 did not have a material effect on the Company’s interim Condensed Consolidated Financial Statements. In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the FASB Emerging Issues) , which clarifies the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. ASU 2020-01 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods. The adoption of ASU 2020-01 did not have a material effect on the Company’s interim Condensed Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The guidance in ASU 2020-04, if elected, shall apply to contract modifications if the terms that are modified Note 1 - Basis of Presentation and Accounting Policies (Continued) directly replace, or have the potential to replace, a reference rate with another interest rate index. If other terms are contemporaneously modified in a manner that changes, or has the potential to change, the amount or timing of contractual cash flows, the guidance in ASU 2020-04 shall apply only if those modifications are related to the replacement of a reference rate. ASU 2020-04 is effective for contract modifications made between March 12, 2020 through December 31, 2022. The adoption of ASU 2020-04 did not have a material effect on the Company’s interim Condensed Consolidated Financial Statements. The Company will continue to evaluate the impact of this guidance on its financial statements. In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs , which clarifies that an entity should re-evaluate whether a callable debt security is within the scope of paragraph 310-20-35-33 for each reporting period. ASU 2020-08 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods. The adoption of ASU 2020-08 did not have a material effect on the Company’s interim Condensed Consolidated Financial Statements. The Company has adopted all other recently issued accounting pronouncements with effective dates prior to January 1, 2021. There were no adoptions of such accounting pronouncements during the three months ended March 31, 2021 that had a material impact on the Company’s interim Condensed Consolidated Financial Statements. Guidance Not Yet Adopted In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to Accounting for Long-Duration Contracts . ASU 2018-12 amends the accounting model for certain long-duration insurance contracts and requires the insurer to provide additional disclosures in annual and interim reporting periods. In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of ASU 2018-12 by one year for public business entities. ASU 2018-12 is now effective for fiscal years beginning after December 15, 2022, and interim periods within those annual periods. The amendments in ASU 2018-12 (i) require cash flow assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited pay long duration contracts to be updated at least annually with the recognition and remeasurement recorded in net income, (ii) simplify the amortization of deferred acquisition costs to be amortized on a constant level basis over the expected term of the contract, (iii) require all market risk benefits to be measured at fair value, and (iv) enhance certain presentation and disclosure requirements which include disaggregated rollforwards for liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, deferred acquisition costs, and information about significant inputs, judgments and methods used in the measurement. The Company plans to adopt using the modified retrospective transition method and is currently evaluating the impact of this guidance on its financial statements. |
Net Income Per Unrestricted Sha
Net Income Per Unrestricted Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Unrestricted Share | Net Income Per Unrestricted Share The Company’s awards of deferred stock units granted to Kemper’s non-employee directors prior to 2019 contain rights to receive non-forfeitable dividend equivalents and participate in the undistributed earnings with common shareholders. Accordingly, the Company is required to apply the two-class method of computing basic and diluted earnings per share. A reconciliation of the numerator and denominator used in the calculation of Basic Net Income Per Unrestricted Share and Diluted Net Income Per Unrestricted Share for the three months ended March 31, 2021 and 2020 is presented below. Three Months Ended (Dollars in Millions, except per share amounts) Mar 31, Mar 31, Net Income $ 123.2 $ 64.0 Less Net Income Attributed to Participating Awards 0.1 0.1 Net Income Attributed to Unrestricted Shares 123.1 63.9 Dilutive Effect on Income of Equity-based Compensation Equivalent Shares — — Diluted Net Income Attributed to Unrestricted Shares $ 123.1 $ 63.9 (Number of Shares in Thousands) Weighted-average Unrestricted Shares Outstanding 65,424.6 66,515.9 Equity-based Compensation Equivalent Shares 1,128.2 458.3 Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution 66,552.8 66,974.2 (Per Unrestricted Share in Whole Dollars) Basic Net Income Per Unrestricted Share $ 1.88 $ 0.96 Diluted Net Income Per Unrestricted Share $ 1.85 $ 0.95 The number of shares of Kemper common stock that were excluded from the calculations of Equity-based Compensation Equivalent Shares and Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution for the three months ended March 31, 2021 and 2020, because the effect of inclusion would be anti-dilutive, is presented below. Three Months Ended (Number of Shares in Thousands) Mar 31, Mar 31, Equity-based Compensation Equivalent Shares 1,212.8 828.9 Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution 1,212.8 828.9 |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company is engaged, through its subsidiaries, in the property and casualty insurance and life and health insurance businesses. The Company conducts its operations through three operating segments: Specialty Property & Casualty Insurance, Preferred Property & Casualty Insurance and Life & Health Insurance. The Specialty Property & Casualty Insurance segment’s principal products are specialty automobile insurance and commercial automobile insurance. The Preferred Property & Casualty Insurance segment’s principal products are preferred automobile insurance, homeowners insurance and other personal insurance. These products are distributed primarily through independent agents and brokers. The Life & Health Insurance segment’s principal products are individual life, accident, supplemental health and property insurance. These products are distributed by career agents employed by the Company and independent agents and brokers. Note 3 - Business Segments (continued) Earned Premiums by product line for the three months ended March 31, 2021 and 2020 were: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Specialty Property & Casualty Insurance: Specialty Automobile $ 785.4 $ 753.2 Commercial Automobile 92.2 69.3 Preferred Property & Casualty Insurance: Personal Automobile 103.0 114.9 Homeowners 50.8 56.8 Other Personal Lines 8.4 9.2 Life & Health Insurance: Life 98.1 97.2 Accident and Health 47.4 49.4 Property 15.5 16.4 Total Earned Premiums $ 1,200.8 $ 1,166.4 Note 3 - Business Segments (continued) Segment Revenues, including a reconciliation to Total Revenues, for the three months ended March 31, 2021 and 2020 were: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Segment Revenues: Specialty Property & Casualty Insurance: Earned Premiums $ 877.6 $ 822.5 Net Investment Income 35.0 28.8 Change in Value of Alternative Energy Partnership Investments (7.3) — Other Income 0.9 0.9 Total Specialty Property & Casualty Insurance 906.2 852.2 Preferred Property & Casualty Insurance: Earned Premiums 162.2 180.9 Net Investment Income 15.9 9.7 Change in Value of Alternative Energy Partnership Investments (4.1) — Total Preferred Property & Casualty Insurance 174.0 190.6 Life & Health Insurance: Earned Premiums 161.0 163.0 Net Investment Income 51.1 51.0 Change in Value of Alternative Energy Partnership Investments (4.0) — Other Income 0.1 0.1 Total Life & Health Insurance 208.2 214.1 Total Segment Revenues 1,288.4 1,256.9 Income (Loss) from Change in Fair Value of Equity and Convertible 52.2 (117.8) Net Realized Gains on Sales of Investments 13.8 16.5 Impairment Losses (4.0) (12.0) Other 1.6 85.4 Total Revenues $ 1,352.0 $ 1,229.0 Note 3 - Business Segments (continued) Segment Operating Income, including a reconciliation to Income before Income Taxes, for the three months ended March 31, 2021 and 2020 was: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Segment Operating Income (Loss): Specialty Property & Casualty Insurance $ 85.2 $ 75.0 Preferred Property & Casualty Insurance 3.0 23.0 Life & Health Insurance (0.8) 26.5 Total Segment Operating Income (Loss) 87.4 124.5 Corporate and Other Operating Income (Loss) From: Partial Satisfaction of Judgment — 89.4 Other (11.5) (11.1) Corporate and Other Operating Income (Loss) (11.5) 78.3 Adjusted Consolidated Operating Income (Loss) 75.9 202.8 Income (Loss) from Change in Fair Value of Equity and Convertible Securities 52.2 (117.8) Net Realized Gains on Sales of Investments 13.8 16.5 Impairment Losses (4.0) (12.0) Acquisition Related Transaction, Integration and Other Costs (16.3) (11.8) Income before Income Taxes $ 121.6 $ 77.7 Segment Net Operating Income, including a reconciliation to Net Income, for the three months ended March 31, 2021 and 2020 was: Three Months Ended (Dollars in Millions and Net of Income Taxes) Mar 31, Mar 31, Segment Net Operating Income (Loss): Specialty Property & Casualty Insurance $ 80.1 $ 60.1 Preferred Property & Casualty Insurance 9.6 18.4 Life & Health Insurance 7.3 22.3 Total Segment Net Operating Income (Loss) 97.0 100.8 Corporate and Other Net Operating Income (Loss) From: Partial Satisfaction of Judgment — 70.6 Other (9.8) (8.5) Total Corporate and Other Net Operating Income (Loss) (9.8) 62.1 Adjusted Consolidated Net Operating Income (Loss) 87.2 162.9 Net Income (Loss) From: Change in Fair Value of Equity and Convertible Securities 41.2 (93.1) Net Realized Gains on Sales of Investments 10.9 13.0 Impairment Losses (3.2) (9.5) Acquisition Related Transaction, Integration and Other Costs (12.9) (9.3) Net Income $ 123.2 $ 64.0 |
Property and Casualty Insurance
Property and Casualty Insurance Reserves | 3 Months Ended |
Mar. 31, 2021 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Property and Casualty Insurance Reserves | Property and Casualty Insurance Reserves Property and casualty insurance reserve activity for the three months ended March 31, 2021 and 2020 was: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Property and Casualty Insurance Reserves: Gross of Reinsurance at Beginning of Year $ 1,982.5 $ 1,969.8 Less Reinsurance Recoverables at Beginning of Year 50.1 65.6 Property and Casualty Insurance Reserves - Net of Reinsurance at Beginning of Year 1,932.4 1,904.2 Property and Casualty Insurance Reserves Acquired, Net of Reinsurance — — Incurred Losses and LAE Related to: Current Year 777.0 738.1 Prior Years 0.1 0.9 Total Incurred Losses and LAE 777.1 739.0 Paid Losses and LAE Related to: Current Year 258.0 257.0 Prior Years 500.3 505.8 Total Paid Losses and LAE 758.3 762.8 Property and Casualty Insurance Reserves - Net of Reinsurance at End of Period 1,951.2 1,880.4 Plus Reinsurance Recoverables at End of Period 48.3 61.2 Property and Casualty Insurance Reserves - Gross of Reinsurance at End of Period $ 1,999.5 $ 1,941.6 Property and casualty insurance reserves are estimated based on historical experience patterns and current economic trends. Actual loss experience and loss trends are likely to differ from these historical experience patterns and economic conditions. Loss experience and loss trends emerge over several years from the dates of loss inception. The Company monitors such emerging loss trends on a quarterly basis. Changes in such estimates are included in the Condensed Consolidated Statements of Income in the period of change. For the three months ended March 31, 2021, the Company increased its property and casualty insurance reserves by $0.1 million to recognize adverse development of loss and LAE reserves from prior accident years. Specialty personal automobile insurance loss and LAE reserves developed favorably by $4.0 million due primarily to the emergence of more favorable loss patterns than expected for liability insurance. Commercial automobile insurance loss and LAE reserves developed adversely by $3.0 million due primarily to the emergence of more adverse loss patterns than expected for liability insurance. Preferred personal automobile insurance loss and LAE reserves developed adversely by $1.3 million due primarily to the emergence of more adverse patterns than expected for liability insurance. Homeowners loss and LAE reserves developed favorably by $2.6 million due primarily to the emergence of more favorable loss patterns than expected. Other lines loss and LAE reserves developed adversely by $2.3 million due primarily to the emergence of more adverse loss patterns than expected for prior accident years. For the three months ended March 31, 2020, the Company decreased its property and casualty insurance reserves by $0.9 million to recognize favorable development of loss and LAE reserves from prior accident years. Specialty personal automobile insurance loss and LAE reserves developed favorably by $18.0 million due primarily to the emergence of more favorable loss patterns than expected for liability insurance related to the 2018 accident year. Commercial automobile loss and LAE reserves developed favorably by $12.5 million due primarily to the emergence of more favorable loss patterns than expected for liability insurance related to the 2018 accident year. Preferred personal automobile insurance loss and LAE reserves developed favorably by $2.1 million due primarily to the emergence of more favorable loss patterns than expected for liability insurance related to 2018 and 2017 accident years. Homeowners insurance loss and LAE reserves developed favorably by $5.0 million primarily due to the net of reinsurance impact from the sale of subrogation rights related to the 2017 and 2018 California Wildfires. Other lines loss and LAE reserves developed favorably by $1.8 million due primarily to the emergence of more favorable loss patterns than expected for the 2018 and 2017 accident years. Note 4 - Property and Casualty Insurance Reserves (continued) The Company cannot predict whether loss and LAE reserves will develop favorably or adversely from the amounts reported in the Company’s Condensed Consolidated Financial Statements. The Company believes that any such development will not have a material effect on the Company’s Condensed Consolidated Shareholders’ Equity, but could have a material effect on the Company’s consolidated financial results for a given period. Receivables from Policyholders - Allowance for Expected Credit Losses The following table presents receivables from policyholders, net of the allowance for expected credit losses including a rollforward of changes in the allowance for expected credit losses for the three months ended March 31, 2021. (Dollars in Millions) Receivables from Policyholders, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Balance at Beginning of Year $ 1,194.5 $ 20.9 Provision for Expected Credit Losses 12.8 Write-offs of Uncollectible Receivables from Policyholders (22.4) Balance at End of Period $ 1,260.9 $ 11.3 The following table presents receivables from policyholders, net of the allowance for expected credit losses including a rollforward of changes in the allowance for expected credit losses for the three months ended March 31, 2020. (Dollars in Millions) Receivables from Policyholders, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Balance at Beginning of Year $ 1,117.1 $ 22.3 Provision for Expected Credit Losses 11.9 Write-offs of Uncollectible Receivables from Policyholders (11.1) Balance at End of Period $ 1,219.1 $ 23.1 |
Investments
Investments | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Fixed Maturities The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at March 31, 2021 were: Amortized Gross Unrealized Allowance for Expected Credit Losses Fair Value (Dollars in Millions) Gains Losses U.S. Government and Government Agencies and Authorities $ 498.0 $ 35.7 $ (1.3) $ — $ 532.4 States and Political Subdivisions 1,538.6 140.9 (11.6) — 1,667.9 Foreign Governments 6.3 — (1.2) (0.3) 4.8 Corporate Securities: Bonds and Notes 3,886.3 419.2 (30.4) (4.3) 4,270.8 Redeemable Preferred Stocks 7.0 0.1 (0.1) — 7.0 Collateralized Loan Obligations 791.0 2.4 (10.5) — 782.9 Other Mortgage- and Asset-backed 202.4 11.3 (0.1) — 213.6 Investments in Fixed Maturities $ 6,929.6 $ 609.6 $ (55.2) $ (4.6) $ 7,479.4 Note 5 - Investments (continued) The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2020 were: Amortized Gross Unrealized Allowance for Expected Credit Losses Fair Value (Dollars in Millions) Gains Losses U.S. Government and Government Agencies and Authorities $ 536.5 $ 48.9 $ (0.1) $ — $ 585.3 States and Political Subdivisions 1,404.3 185.4 (0.2) — 1,589.5 Foreign Governments 6.6 — (1.1) (0.3) 5.2 Corporate Securities: Bonds and Notes 3,749.5 689.5 (10.6) (3.0) 4,425.4 Redeemable Preferred Stocks 7.0 0.5 — — 7.5 Collateralized Loan Obligations 785.1 2.3 (19.7) — 767.7 Other Mortgage- and Asset-backed 203.7 21.6 — — 225.3 Investments in Fixed Maturities $ 6,692.7 $ 948.2 $ (31.7) $ (3.3) $ 7,605.9 Other Receivables included $23.7 million and $5.1 million of unsettled sales of Investments in Fixed Maturities at March 31, 2021 and December 31, 2020, respectively. Accrued Expenses and Other Liabilities included unsettled purchases of Investments in Fixed Maturities of $54.7 million and $4.3 million at March 31, 2021 and December 31, 2020, respectively. The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at March 31, 2021 by contractual maturity were: (Dollars in Millions) Amortized Cost Fair Value Due in One Year or Less $ 81.4 $ 84.6 Due after One Year to Five Years 1,049.7 1,111.0 Due after Five Years to Ten Years 1,570.2 1,691.0 Due after Ten Years 2,878.0 3,219.5 Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date 1,350.3 1,373.3 Investments in Fixed Maturities $ 6,929.6 $ 7,479.4 The expected maturities of the Company’s Investments in Fixed Maturities may differ from the contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Investments in Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date at March 31, 2021 consisted of securities issued by the Government National Mortgage Association with a fair value of $361.3 million, securities issued by the Federal National Mortgage Association with a fair value of $4.8 million, securities issued by the Federal Home Loan Mortgage Corporation with a fair value of $11.7 million and securities of other non-governmental issuers with a fair value of $995.5 million. Note 5 - Investments (continued) An aging of unrealized losses on the Company’s Investments in Fixed Maturities at March 31, 2021 is presented below. Less Than 12 Months 12 Months or Longer Total (Dollars in Millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 21.0 $ (1.3) $ 0.1 $ — $ 21.1 $ (1.3) States and Political Subdivisions 335.7 (11.6) 0.7 — 336.4 (11.6) Foreign Governments 0.2 (0.1) 2.2 (1.1) 2.4 (1.2) Corporate Securities: Bonds and Notes 559.1 (25.8) 59.6 (4.6) 618.7 (30.4) Redeemable Preferred Stocks 5.4 (0.1) — — 5.4 (0.1) Collateralized Loan Obligations 42.1 (0.2) 320.8 (10.3) 362.9 (10.5) Other Mortgage- and Asset-backed 17.3 (0.1) 0.1 — 17.4 (0.1) Total Fixed Maturities $ 980.8 $ (39.2) $ 383.5 $ (16.0) $ 1,364.3 $ (55.2) Investment-grade fixed maturity investments comprised $39.8 million and below-investment-grade fixed maturity investments comprised $15.4 million of the unrealized losses on investments in fixed maturities at March 31, 2021. For below-investment-grade fixed maturity investments in an unrealized loss position, the unrealized loss amount, on average, was approximately 9% of the amortized cost basis of the investment. An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2020 is presented below. Less Than 12 Months 12 Months or Longer Total (Dollars in Millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 10.5 $ (0.1) $ — $ — $ 10.5 $ (0.1) States and Political Subdivisions 23.3 (0.2) — — 23.3 (0.2) Foreign Governments 0.5 (0.1) 2.6 (1.0) 3.1 (1.1) Corporate Securities: Bonds and Notes 132.9 (7.5) 46.1 (3.1) 179.0 (10.6) Collateralized Loan Obligations 145.2 (3.8) 371.4 (15.9) 516.6 (19.7) Other Mortgage- and Asset-backed 6.3 — — — 6.3 — Total Fixed Maturities $ 318.7 $ (11.7) $ 420.1 $ (20.0) $ 738.8 $ (31.7) Investment-grade fixed maturity investments comprised $8.0 million and below-investment-grade fixed maturity investments comprised $23.7 million of the unrealized losses on investments in fixed maturities at December 31, 2020. For below-investment-grade fixed maturity investments in an unrealized loss position, the unrealized loss amount, on average, was approximately 11% of the amortized cost basis of the investment. Note 5 - Investments (continued) At March 31, 2021 and December 31, 2020, the Company did not have the intent to sell these investments, and it was not more likely than not that the Company would be required to sell these investments before an anticipated recovery of value. The Company evaluated these investments for credit losses at March 31, 2021 and December 31, 2020. The Company considers many factors in evaluating whether the unrealized losses were credit related including, but not limited to, the extent to which the fair value has been less than amortized cost, conditions related to the security, industry, or geographic area, payment structure of the investment and the likelihood of the issuer’s ability to make contractual cashflows, defaults or other collectability concerns related to the issuer, changes in the ratings assigned by a rating agency, and other credit enhancements that affect the investment’s expected performance. The Company determined that the unrealized losses on these securities were due to non-credit related factors at the evaluation date. Fixed Maturities - Impairment Losses The following table sets forth the change in allowance for credit losses on fixed maturities available-for-sale by major security type for three months ended March 31, 2021. Foreign Governments Corporate Bonds and Notes Total (Dollars in Millions) Beginning of the Period $ 0.3 $ 3.0 $ 3.3 Additions for Securities for which No Previous Expected Credit Losses were — 1.3 1.3 Reduction Due to Sales — (0.3) (0.3) Net Increase (Decrease) in Allowance on Previously Impaired Securities 0.2 0.3 0.5 Write-offs Charged Against Allowance (0.2) — (0.2) End of the Period $ 0.3 $ 4.3 $ 4.6 The following table sets forth the change in allowance for credit losses on fixed maturities available-for-sale by major security type for the three months ended March 31, 2020. Foreign Governments Corporate Bonds and Notes Total (Dollars in Millions) Beginning of the Year $ — $ — $ — Additions for Securities for which No Previous Expected Credit Losses were 1.1 3.5 4.6 Reduction Due to Sales — — — Net Increase (Decrease) in Allowance on Previously Impaired Securities — — — Write-offs Charged Against Allowance — — — End of the Period $ 1.1 $ 3.5 $ 4.6 Equity Securities Investments in Equity Securities at Fair Value were $897.4 million and $858.5 million at March 31, 2021 and December 31, 2020, respectively. Net unrealized gains arising during the three months ended March 31, 2021 and recognized in earnings, related to such investments still held as of March 31, 2021, were $56.5 million. For Equity Securities at Modified Cost, the Company performs a qualitative impairment analysis on a quarterly basis consisting of various factors such as earnings performance, current market conditions, changes in credit ratings, changes in the regulatory environment and other factors. If the qualitative analysis identifies the presence of impairment indicators, the Company estimates the fair value of the investment. If the estimated fair value is below the carrying value, the Company records an impairment in the Condensed Consolidated Statement of Income to reduce the carrying value to the estimated fair value. When the Company identifies observable transactions of the same or similar securities to those held by the Company, the Company increases or decreases the carrying value to the observable transaction price. The Company did not recognize any increases in Note 5 - Investments (continued) the carrying value due to observable transactions for the three months ended March 31, 2021. The Company recognized an impairment of $0.8 million on Equity Securities at Modified Cost for the three months ended March 31, 2021 as a result of the Company’s qualitative impairment analysis. The Company has recognized $0.5 million of cumulative decreases in the carrying value due to observable transactions, no cumulative increases in the carrying value due to observable transactions and $6.7 million of cumulative impairments on Equity Securities at Modified Cost held as of March 31, 2021. There were no unsettled sales or purchases of Investments in Equity Securities at March 31, 2021 and December 31, 2020. Equity Method Limited Liability Investments Equity Method Limited Liability Investments include investments in limited liability investment companies and limited partnerships in which the Company’s interests are not deemed minor and are accounted for under the equity method of accounting. The Company’s investments in Equity Method Limited Liability Investments are generally of a passive nature in that the Company does not take an active role in the management of the investment entity. The Company’s maximum exposure to loss at March 31, 2021 is limited to the total carrying value of $219.2 million. In addition, the Company had outstanding commitments totaling approximately $94.6 million to fund Equity Method Limited Liability Investments at March 31, 2021. At March 31, 2021, 4.3% of Equity Method Limited Liability Investments were reported without a reporting lag. Of the total carrying value, 11.0% was reported with a one month lag and the remainder was reported with more than a one month lag. Alternative Energy Partnership Investments Alternative Energy Partnership Investments include partnerships formed to invest in newly installed residential solar leases and power purchase agreements. As a result of this investment, the Company has the right to certain investment tax credits and tax depreciation benefits, and to a lesser extent, cash flows generated from the installed solar systems leased to individual consumers for a fixed period of time. The Hypothetical Liquidation at Book Value (“HLBV”) equity method of accounting is used for the Company’s investments in Alternative Energy Partnership Investments. The Company’s maximum exposure to loss at March 31, 2021 is limited to the total carrying value of $54.4 million. In addition, the Company had outstanding commitments totaling approximately $31.5 million to fund Alternative Energy Partnership Investments at March 31, 2021. Alternative Energy Partnership Investments are reported on a three month lag. Other Investments The carrying values of the Company’s Other Investments at March 31, 2021 and December 31, 2020 were: (Dollars in Millions) Mar 31, Dec 31, Company-owned Life Insurance $ 429.5 $ 327.4 Loans to Policyholders at Unpaid Principal 295.1 297.9 Real Estate at Depreciated Cost 98.0 98.7 Mortgage Loans and Other 74.2 55.0 Total $ 896.8 $ 779.0 Note 5 - Investments (continued) Net Investment Income Net Investment Income for the three months ended March 31, 2021 and 2020 was: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Investment Income (Loss): Interest on Fixed Income Securities $ 69.0 $ 71.0 Dividends on Equity Securities Excluding Alternative Investments 2.1 4.3 Alternative Investments: Equity Method Limited Liability Investments 22.5 1.8 Limited Liability Investments Included in Equity Securities 4.5 3.8 Total Alternative Investments 27.0 5.6 Short-term Investments 1.2 1.6 Loans to Policyholders 5.5 5.6 Real Estate 2.4 2.5 Other 4.7 4.2 Total Investment Income 111.9 94.8 Investment Expenses: Real Estate 2.1 2.6 Other Investment Expenses 6.7 6.6 Total Investment Expenses 8.8 9.2 Net Investment Income $ 103.1 $ 85.6 Gross gains and losses on sales of investments in fixed maturities for the three months ended March 31, 2021 and 2020 were: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Fixed Maturities: Gains on Sales $ 13.2 $ 15.9 Losses on Sales (1.1) (1.1) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company classifies its investments in Fixed Maturities as available-for-sale and reports these investments at fair value. The Company reports equity investments with readily determinable fair values as Equity Securities at Fair Value. Certain investments that are measured at fair value using the net asset value practical expedient are not required to be classified using the fair value hierarchy, but are presented in the following two tables to permit reconciliation of the fair value hierarchy to the amounts presented in the Condensed Consolidated Balance Sheets. The valuation of assets measured at fair value in Company’s Condensed Consolidated Balance Sheets at March 31, 2021 is summarized below. Fair Value Measurements (Dollars in Millions) Quoted Prices Significant Other Significant Measured at Net Asset Value Total Fair Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 133.0 $ 399.4 $ — $ — $ 532.4 States and Political Subdivisions — 1,667.9 — — 1,667.9 Foreign Governments — 4.8 — — 4.8 Corporate Securities: Bonds and Notes — 3,856.3 414.5 — 4,270.8 Redeemable Preferred Stock — 1.3 5.7 — 7.0 Collateralized Loan Obligations — 782.9 — — 782.9 Other Mortgage and Asset-backed — 204.6 9.0 — 213.6 Total Investments in Fixed Maturities 133.0 6,917.2 429.2 — 7,479.4 Equity Securities at Fair Value: Preferred Stocks: Finance, Insurance and Real Estate — 38.6 — — 38.6 Other Industries — 16.0 — — 16.0 Common Stocks: Finance, Insurance and Real Estate 6.8 1.7 — — 8.5 Other Industries 2.8 — 0.1 — 2.9 Other Equity Interests: Exchange Traded Funds 522.5 — — — 522.5 Limited Liability Companies and Limited Partnerships — — — 308.9 308.9 Total Investments in Equity Securities at Fair Value 532.1 56.3 0.1 308.9 897.4 Convertible Securities at Fair Value — 42.6 — — 42.6 Total $ 665.1 $ 7,016.1 $ 429.3 $ 308.9 $ 8,419.4 At March 31, 2021, the Company had unfunded commitments to invest an additional $124.1 million in certain limited liability investment companies and limited partnerships that will be included in Other Equity Interests if funded. Note 6 - Fair Value Measurements (continued) The valuation of assets measured at fair value in the Company’s Consolidated Balance Sheets at December 31, 2020 is summarized below. Fair Value Measurements (Dollars in Millions) Quoted Prices Significant Other Significant Measured at Net Asset Value Total Fair Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 134.0 $ 451.3 $ — $ — $ 585.3 States and Political Subdivisions — 1,589.5 — — 1,589.5 Foreign Governments — 5.2 — — 5.2 Corporate Securities: Bonds and Notes — 3,992.4 433.0 — 4,425.4 Redeemable Preferred Stocks — 1.3 6.2 — 7.5 Collateralized Loan Obligations — 767.7 — — 767.7 Other Mortgage and Asset-backed — 215.3 10.0 — 225.3 Total Investments in Fixed Maturities 134.0 7,022.7 449.2 — 7,605.9 Equity Securities at Fair Value: Preferred Stocks: Finance, Insurance and Real Estate — 43.7 — — 43.7 Other Industries — 15.4 — — 15.4 Common Stocks: Finance, Insurance and Real Estate 8.7 1.7 — — 10.4 Other Industries 0.4 — — — 0.4 Other Equity Interests: Exchange Traded Funds 496.4 — — — 496.4 Limited Liability Companies and Limited Partnerships — — — 292.2 292.2 Total Investments in Equity Securities at Fair Value 505.5 60.8 — 292.2 858.5 Other Investments: Convertible Securities at Fair Value — 39.9 — — 39.9 Total $ 639.5 $ 7,123.4 $ 449.2 $ 292.2 $ 8,504.3 The Company’s investments in Fixed Maturities that are classified as Level 1 in the two preceding tables primarily consist of U.S. Treasury Bonds and Notes. The Company’s investments in Equity Securities at Fair Value that are classified as Level 1 in the two preceding tables consist of either investments in publicly-traded common stocks or exchange traded funds. The Company’s investments in Fixed Maturities that are classified as Level 2 in the two preceding tables primarily consist of investments in corporate bonds, obligations of states and political subdivisions, and bonds and mortgage-backed securities of U.S. government agencies. The Company’s investments in Equity Securities at Fair Value that are classified as Level 2 in the two preceding tables primarily consist of investments in preferred stocks. The Company uses a leading, nationally recognized provider of market data and analytics to price the vast majority of the Company’s Level 2 measurements. The provider utilizes evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information. Because many fixed maturity securities do not trade on a daily basis, the provider’s evaluated pricing applications apply available Note 6 - Fair Value Measurements (continued) information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing to prepare evaluations. In addition, the provider uses model processes to develop prepayment and interest rate scenarios. The pricing provider’s models and processes also take into account market convention. For each asset class, teams of its evaluators gather information from market sources and integrate relevant credit information, perceived market movements and sector news into the evaluated pricing applications and models. The Company generally validates the measurements obtained from its primary pricing provider by comparing them with measurements obtained from one additional pricing provider that provides either prices from recent market transactions, quotes in inactive markets or evaluations based on its own proprietary models. The Company investigates significant differences related to the values provided. On completion of its investigation, management exercises judgment to determine the price selected and whether adjustments, if any, to the price obtained from the Company’s primary pricing provider would warrant classification of the price as Level 3. In instances where a measurement cannot be obtained from either pricing provider, the Company generally will evaluate bid prices from one or more binding quotes obtained from market makers to value investments in inactive markets and classified by the Company as Level 2. The Company generally classifies securities when it receives non-binding quotes or indications as Level 3 securities unless the Company can validate the quote or indication against recent transactions in the market. The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments classified as Level 3 at March 31, 2021. (Dollars in Millions) Unobservable Input Total Fair Value Range of Unobservable Inputs Weighted-average Yield Investment-grade Market Yield $ 251.7 0.9 % - 12.0 % 3.4 % Non-investment-grade: Senior Debt Market Yield 95.4 0.9 - 19.3 9.7 Junior Debt Market Yield 59.1 2.2 - 27.9 14.5 Other Various 23.0 Total Level 3 Fixed Maturity Investments $ 429.2 The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments classified as Level 3 at December 31, 2020. (Dollars in Millions) Unobservable Input Total Fair Value Range of Unobservable Inputs Weighted-average Yield Investment-grade Market Yield $ 246.7 1.4 % - 13.0 % 3.8 % Non-investment-grade: Senior Debt Market Yield 111.1 2.4 - 23.4 9.5 Junior Debt Market Yield 64.6 3.1 - 27.9 13.7 Other Various 26.8 Total Level 3 Fixed Maturity Investments $ 449.2 Note 6 - Fair Value Measurements (continued) For an investment in a fixed maturity security, an increase in the yield used to determine the fair value of the security will decrease the fair value of the security. A decrease in the yield used to determine fair value will increase the fair value of the security, but the fair value increase is generally limited to par, unless callable at a premium, if the security is currently callable. Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the three months ended March 31, 2021 is presented below. Fixed Maturities (Dollars in Millions) Corporate States and Political Sub- divisions Redeemable Collateralized Loan Obligations Other Mortgage- Total Balance at Beginning of Year $ 433.0 $ — $ 6.2 $ — $ 10.0 $ 449.2 Total Gains (Losses): Included in Condensed Consolidated Statement of (1.1) — — — — (1.1) Included in Other Comprehensive Income (Loss) (3.7) — (0.5) — (0.8) (5.0) Purchases 17.8 — — — — 17.8 Settlements — — — — — — Sales (30.9) — — — (0.2) (31.1) Transfers into Level 3 — — — — — — Transfers out of Level 3 (0.6) — — — — (0.6) Balance at End of Period $ 414.5 $ — $ 5.7 $ — $ 9.0 $ 429.2 The transfers into and out of Level 3 were due primarily to changes in the availability of market observable inputs due to change in pricing provider. Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the three months ended March 31, 2020 is presented below. Fixed Maturities (Dollars in Millions) Corporate States and Political Sub- divisions Redeemable Collateralized Loan Obligations Other Mortgage- Total Balance at Beginning of Year $ 409.1 $ — $ 6.7 $ 618.2 $ 10.2 $ 1,044.2 Total Gains (Losses): Included in Condensed Consolidated Statement of Income (2.7) — — (0.3) — (3.0) Included in Other Comprehensive Income (Loss) (24.8) 0.1 — (9.5) (0.6) (34.8) Purchases 27.2 0.6 — 53.6 — 81.4 Settlements — — — — — — Sales (18.2) — — (26.4) (0.2) (44.8) Transfers into Level 3 — — — — — — Transfers out of Level 3 — — — (557.7) — (557.7) Balance at End of Period $ 390.6 $ 0.7 $ 6.7 $ 77.9 $ 9.4 $ 485.3 The transfers into and out of Level 3 were due to changes in the availability of market observable inputs. Note 6 - Fair Value Measurements (continued) Presented below are the carrying values and fair value estimates of financial instruments not carried at fair value. March 31, 2021 December 31, 2020 (Dollars in Millions) Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Loans to Policyholders $ 295.1 $ 295.1 $ 297.9 $ 297.9 Short-term Investments 196.9 196.9 875.4 875.4 Mortgage Loans 73.2 73.2 54.6 54.6 Financial Liabilities: Long-term Debt $ 1,122.6 $ 1,213.3 $ 1,172.8 $ 1,247.8 Policyholder Obligations 407.5 407.5 407.8 407.8 The fair value measurement for loans to policyholders are categorized as Level 3 within the fair value hierarchy. The fair value measurement of Short-term Investments is estimated using inputs that are considered either Level 1 or Level 2 measurements. The fair value measurement of Mortgage Loans is estimated using inputs that are considered Level 2 measurements. The fair value of Long-term Debt is estimated using quoted prices for similar liabilities in markets that are not active. The inputs used in the valuation are considered Level 2 measurements. Policyholder Obligations presented in the preceding table consist of advances from the FHLB of Chicago, and the inputs used in the valuation are considered Level 2 measurements. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Variable Interest Entity Disclosure | Variable Interest Entities The Company invests in an Alternative Energy Partnership formed to provide sustainable energy projects that are designed to generate a return primarily through the realization of federal tax credits. This entity was formed to invest in newly installed residential solar leases and power purchase agreements. As a result of this investment, the Company has the right to certain investment tax credits and tax depreciation benefits, and to a lesser extent, cash flows generated from the installed solar systems leased to individual consumers for a fixed period of time. The Company’s interest in Alternative Energy Partnership Investments is considered an investment in a variable interest entity (“VIE”). To determine whether the investment should be consolidated in the Condensed Consolidated Financial Statements, the Company evaluates whether it is the primary beneficiary of the VIE. The primary beneficiary is the party that has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company has determined that it is not the primary beneficiary as it does not have the power to direct the activities that most significantly impact the economic performance of the entity and therefore is not required to consolidate the VIE. The project sponsor governs the entity and the Company only has consent rights that have been deemed protective in nature and does not participate in key economic decisions of the entity. The investment is accounted for using the equity method of accounting and included in Alternative Energy Partnership Investments in the Condensed Consolidated Balance Sheets. The Company uses the accounting methodology known as Hypothetical Liquidation at Book Value (“HLBV”) to account for earnings and losses. This method provides an earnings allocation that appropriately reflects the substantive economics of the investment. Earnings and losses on the investment are reported in Change in Value of Alternative Energy Partnership Investments on the Condensed Consolidated Statements of Income. The following table presents information regarding activity in the Company’s Alternative Energy Partnership Investments as of the periods indicated: ($ in millions) Mar 31, 2021 Dec 31, 2020 Fundings $ 48.5 $ 20.0 Cash distribution from investment — — Gain (loss) on investments in Alternative Energy Partnership (15.4) — Income tax credits recognized 28.4 3.6 Tax expense (benefit) recognized from HLBV application 0.2 (0.4) Note 7 - Variable Interest Entities (continued) The following table represents the carrying value of the associated assets and liabilities and the associated maximum loss exposure of the Alternative Energy Partnership Investments as of the dates indicated: ($ in millions) Mar 31, 2021 Cash $ 7.2 Equipment, net of depreciation 54.4 Other assets 0.6 Total unconsolidated assets 62.2 Maximum loss exposure 54.4 The Company’s maximum loss exposure in the event that all of the assets in the Alternative Energy Partnership are deemed worthless is $54.4 million, which is the carrying value of the investment at March 31, 2021. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income | Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income The components of Other Comprehensive Income (Loss) and AOCI for the three months ended March 31, 2021 were: Changes in Net Unrealized Gains (Losses) on Investment Securities (Dollars in Millions) Having No Credit Losses Recognized in Consolidated Statements of Income Having Credit Losses Recognized in Consolidated Statements of Income Net Unrecognized Postretirement Benefit Costs Gain (Loss) on Cash Total Balance at Beginning of Period 730.6 $ (2.1) $ (45.7) $ (2.3) $ 680.5 Other Comprehensive Income (Loss) Before Reclassification Adjustment, Net of Tax (281.5) (1.7) 0.8 0.1 (282.3) Reclassification Adjustment for Amounts Included in Net Income, Net of Tax (7.7) — — — (7.7) Other Comprehensive Income (Loss), Net of Tax (289.2) (1.7) 0.8 0.1 (290.0) Balance at End of Period $ 441.4 $ (3.8) $ (44.9) $ (2.2) $ 390.5 Note 8 - Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (continued) The pre-tax components of the Other Comprehensive Income (Loss) and the related Income Tax Benefit (Expense) for the three months ended March 31, 2021 and 2020 were: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Changes in Net Unrealized Gains (Losses) on Investment Securities: Having No Credit Losses Recognized in Condensed Consolidated Statements of Income $ (354.2) $ (198.0) Income Tax Benefit (Expense) 72.7 41.6 Net of Taxes (281.5) (156.4) Having Credit Losses Recognized in Condensed Consolidated Statements of Income (2.1) (2.9) Income Tax Benefit (Expense) 0.4 0.6 Net of Taxes (1.7) (2.3) Reclassification Adjustment for Amounts Included in Net Income (9.8) (3.9) Income Tax Benefit (Expense) 2.1 0.8 Net of Taxes (7.7) (3.1) Changes in Net Unrecognized Postretirement Benefit Costs 0.3 0.7 Income Tax Benefit (Expense) 0.5 (0.2) Net of Taxes 0.8 0.5 Changes in Gain (Loss) on Cash Flow Hedges 0.1 0.1 Income Tax Benefit (Expense) — — Net of Taxes 0.1 0.1 Total Other Comprehensive Income (Loss) Before Income Taxes (365.7) (204.0) Total Income Tax Benefit (Expense) 75.7 42.8 Total Other Comprehensive Income (Loss), Net of Taxes $ (290.0) $ (161.2) Note 8 - Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (continued) Components of AOCI were reclassified to the following lines of the Condensed Consolidated Statements of Income for the three months ended March 31, 2021 and 2020: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Reclassification of AOCI from Net Unrealized Gains on Investments to: Net Realized Gains on Sales of Investments $ 13.8 $ 15.9 Impairment Losses (4.0) (12.0) Total Before Income Taxes 9.8 3.9 Income Tax Benefit (Expense) (2.1) (0.8) Reclassification from AOCI, Net of Income Taxes 7.7 3.1 Reclassification of AOCI from Unrecognized Postretirement Benefit Costs to: Interest and Other Expenses (0.3) (0.7) Income Tax Benefit (Expense) (0.5) 0.1 Reclassification from AOCI, Net of Income Taxes (0.8) (0.6) Reclassification of AOCI from Loss on Cash Flow Hedges to: Interest and Other Expenses (0.1) (0.1) Income Tax Benefit (Expense) — — Reclassification from AOCI, Net of Income Taxes (0.1) (0.1) Total Reclassification from AOCI to Net Income $ 6.8 $ 2.4 |
Stockholders_ Equity
Stockholders’ Equity | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Shareholders’ Equity Common Stock Repurchases During the three months ended March 31, 2021, Kemper repurchased and retired approximately 590,000 shares of its common stock in open market transactions under its share repurchase authorization for an aggregate cost of $47.1 million and average cost per share of $79.36. Of the total shares repurchased, approximately 540,000 were repurchased under a trading plan that was executed by Kemper under Rule 10b5-1 under the Securities Exchange Act of 1934. During the three months ended March 31, 2020, Kemper repurchased and retired approximately 1,500,000 shares of its common stock in open market transactions under its share repurchase authorization for an aggregate cost of $101.2 million and an average cost per share of $67.98. Of the total shares repurchased, approximately 925,000 were repurchased under a trading plan that was executed by Kemper under Rule 10b5-1 under the Securities Exchange Act of 1934. On May 6, 2020, Kemper’s Board of Directors authorized the repurchase of an additional $200.0 million of Kemper’s common stock, in addition to $133.3 million remaining under the August 6, 2014 authorization, bringing the remaining share repurchase authorization to approximately $333.3 million as of December 31, 2020. As of March 31, 2021, the remaining share repurchase authorization was $286.2 million under the repurchase program. Employee Stock Purchase Plan During the second quarter of 2019, Kemper’s stockholders approved the adoption of the Kemper Employee Stock Purchase Plan (“ESPP”) and the reservation of 1,300,000 shares of Kemper’s common stock for issuance under the ESPP. |
Pension Benefits and Postretire
Pension Benefits and Postretirement Benefits Other Than Pensions | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension Benefits and Postretirement Benefits Other Than Pensions | Pension Benefits and Postretirement Benefits Other Than Pensions The Company sponsors a qualified defined benefit pension plan (the “Pension Plan”) that covers approximately 3,175 participants and beneficiaries. Effective January 1, 2006, the Pension Plan was closed to new hires and, effective June 30, 2016, benefit accruals were frozen for substantially all of the participants under the Pension Plan. The Pension Plan is generally non-contributory, but participation requires or required some employees to contribute 3% of pay, as defined, per year. Benefits for participants who are or were required to contribute to the Pension Plan are based on compensation during plan participation and the number of years of participation. Benefits for the vast majority of participants who are not required to contribute to the Pension Plan are based on years of service and final average pay, as defined. The Company funds the Pension Plan in accordance with the requirements of Employee Retirement Income Security Act of 1974 (“ERISA”). The components of Pension Income for the Pension Plan for the three months ended March 31, 2021 and 2020 were: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Interest Cost on Projected Benefit Obligation $ 1.8 $ 4.5 Expected Return on Plan Assets (2.3) (7.3) Amortization of Net Actuarial Loss 0.7 1.5 Total Pension (Benefit) Expense $ 0.2 $ (1.3) The Company sponsors two other than pension postretirement benefit (“OPEB”) plans (together the “OPEB Plans”) that together provide medical, dental and/or life insurance benefits to approximately 575 retired and 500 active employees. The components of OPEB benefits for the OPEB Plans for the three months ended March 31, 2021 and 2020 were: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Service Cost $ 0.1 $ 0.1 Interest Cost on Accumulated Postretirement Benefit Obligation — 0.1 Amortization of Prior Service Credit (0.3) (0.3) Amortization of Net Gain (0.4) (0.5) Total OPEB (Benefit) Expense $ (0.6) $ (0.6) The non-service cost components of the Pension Plan and OPEB Plans are presented within the Interest and Other Expenses line item in the Condensed Consolidated Statements of Income. |
Policyholder Contract Liabiliti
Policyholder Contract Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Insurance [Abstract] | |
Policyholder Contract Liabilities | Policyholder Obligations Policyholder Obligations at March 31, 2021 and December 31, 2020 were as follows: (Dollars in Millions) Mar 31, Dec 31, FHLB Funding Agreements $ 407.5 $ 407.8 Other 59.0 59.2 Total $ 466.5 $ 467.0 Kemper’s subsidiary, United Insurance Company of America ("United Insurance") has entered into funding agreements with the Federal Home Loan Bank (“FHLB”) of Chicago in exchange for cash, which it uses for spread lending purposes. During the three months ended March 31, 2021, United Insurance received advances of $60.5 million from the FHLB of Chicago and made repayments of $60.8 million under the spread lending program. When a funding agreement is issued, United Insurance is then required to post collateral in the form of eligible securities including mortgage-backed, government, and agency debt instruments for each of the advances that are entered. The fair value Note 11 - Policyholder Obligations (continued) of the collateral pledged must be maintained at certain specified levels above the borrowed amount, which can vary depending on the assets pledged. If the fair value of the collateral declines below these specified levels of the amount borrowed, United Insurance would be required to pledge additional collateral or repay outstanding borrowings. Upon any event of default by United Insurance, the FHLB’s recovery on the collateral is limited to the amount of United Insurance’s liability under the funding agreements to the FHLB of Chicago. United Insurance’s liability under the funding agreements with the FHLB of Chicago, the amount of collateral pledged under such agreements and FHLB of Chicago common stock owned by United Insurance at March 31, 2021 and December 31, 2020 is presented below. (Dollars in Millions) Mar 31, Dec 31, Liability under Funding Agreements $ 407.5 $ 407.8 Fair Value of Collateral Pledged 510.5 530.5 FHLB of Chicago Common Stock Owned at Cost 11.8 11.8 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Amended and Extended Credit Agreement and Term Loan Facility On June 8, 2018, the Company entered into an amended and extended credit agreement and term loan facility. The amended and extended credit agreement increased the borrowing capacity of the existing unsecured credit agreement to $300.0 million and extended the maturity date to June 8, 2023. On June 4, 2019, the Company utilized the accordion feature under the credit agreement to increase its credit borrowing capacity by $100.0 million, resulting in the available credit commitments increasing from $300.0 million to $400.0 million. The Company incurred $0.1 million in additional debt issuance costs in connection with the utilization of the accordion feature, which, in addition to the $0.8 million of remaining unamortized costs under the credit agreement, is being amortized over the remaining term of the credit agreement. There were no outstanding borrowings under the credit agreement at either March 31, 2021 or December 31, 2020. Long-term Debt The Company designates debt obligations as either short-term or long-term based on maturity date at issuance, or in the case of the 2022 Senior Notes, based on the date of assumption. Total amortized cost of Long-term Debt outstanding at March 31, 2021 and December 31, 2020 was: (Dollars in Millions) Mar 31, Dec 31, Term Loan due July 5, 2023 $ — $ 49.9 5.000% Senior Notes due September 19, 2022 277.9 278.3 4.350% Senior Notes due February 15, 2025 448.9 448.8 2.400% Senior Notes due September 30, 2030 395.8 395.8 Total Long-term Debt Outstanding $ 1,122.6 $ 1,172.8 Term Loan Due 2023 On June 4, 2019, the Company entered into a delayed-draw term loan facility with a borrowing capacity of $50.0 million and a maturity date four years from the borrowing date (the “2023 Term Loan”). On July 5, 2019, the Company borrowed $49.9 million, net of debt issuance costs, under the 2023 Term Loan, with a final maturity date of July 5, 2023 (and a mutual option to extend the maturity date by one year). On March 16, 2021, the Company repaid all outstanding borrowings and accrued interest on the 2023 Term Loan in the amount of $50.0 million. Note 12 - Debt (continued) 5.000% Senior Notes Due 2022 The liabilities of Infinity Property and Casualty Corporation (“Infinity”) at the date of Infinity’s acquisition included $275.0 million principal amount, 5.000% Senior Notes due September 19, 2022 (the “2022 Senior Notes”). The 2022 Senior Notes were recorded at fair value as of the acquisition date, $282.1 million, with the $7.1 million premium being amortized as a reduction to interest expense over the remaining term, resulting in an effective interest rate of 4.36%. On November 30, 2018, Kemper executed a guarantee to fully and unconditionally guarantee the payment and performance obligations of the 2022 Senior Notes. 4.350% Senior Notes Due 2025 Kemper has $450.0 million aggregate principal of 4.350% senior notes due February 15, 2025 (the “2025 Senior Notes”). Kemper initially issued $250.0 million of the notes in February of 2015 and issued an additional $200.0 million of the notes in June of 2017. The additional notes are fungible with the initial notes issued in 2015, and together are treated as part of a single series for all purposes under the indenture governing the 2025 Senior Notes. The 2025 Senior Notes are unsecured and may be redeemed in whole at any time or in part from time to time at Kemper’s option at specified redemption prices. 2.400% Senior Notes Due 2030 Kemper has $400.0 million aggregate principal of 2.400% senior notes due September 30, 2030 (the “2030 Senior Notes”). The net proceeds of issuance were $395.8 million, net of discount and transaction costs for an effective yield of 2.52%. The 2030 Senior Notes are unsecured and may be redeemed in whole at any time or in part from time to time, at Kemper’s option, at specified redemption prices. Short-term Debt Kemper’s subsidiaries, United Insurance, Trinity Universal Insurance Company (“Trinity”) and Alliance are members of the FHLBs of Chicago, Dallas and San Francisco, respectively. As a requirement of membership in the FHLBs, United Insurance, Trinity and Alliance maintain a certain level of investment in FHLB stock. The Company periodically uses short-term FHLB borrowings for a combination of cash management and risk management purposes, in addition to long-term FHLB borrowings for spread leading purposes. There were no short-term debt advances from the FHLBs of Chicago, Dallas or San Francisco outstanding at March 31, 2021 or December 31, 2020. For information on United Insurance’s funding agreement with the FHLB of Chicago in connection with the spread leading program, see Note 11, “Policyholder Obligations,” to the Condensed Consolidated Financial Statements. Interest Expense and Interest Paid Interest Expense, including facility fees, accretion of discount, amortization of premium and amortization of issuance costs, was $11.1 million for the three months ended March 31, 2021. Interest paid, including facility fees, was $21.7 million for the three months ended March 31, 2021. Interest Expense, including facility fees, accretion of discount and amortization of issuance costs, was $7.5 million for the three months ended March 31, 2020. Interest paid, including facility fees, was $17.1 million for the three months ended March 31, 2020. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain office space under non-cancelable operating leases, with initial terms typically ranging from one one The following table presents operating lease right-of-use assets and lease liabilities. (Dollars in Millions) Mar 31, Dec 31, Operating Lease Right-of-Use Assets $ 66.5 $ 68.6 Operating Lease Liabilities 87.6 89.6 Note 13 - Leases (continued) Lease expenses are primarily included in Insurance Expenses in the Condensed Consolidated Statement of Income. Additional information regarding the Company’s lease cost is presented below. Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Lease Cost: Amortization of Right-of-Use Assets - Finance Leases $ 0.1 $ 0.1 Operating Lease Cost 5.1 5.6 Short-Term Lease Cost (1) 0.9 — Total Lease Cost $ 6.1 $ 5.7 (1) - Leases with an initial term of twelve months or less are not recorded on the Condensed Consolidated Balance Sheets. (2) - Sublease income consists of rent from third parties of office space and is recognized as part of other income in the Condensed Consolidated Statements of Income. Other Information on Operating Leases Supplemental cash flow information related to the Company’s operating and finance leases for the three months ended March 31, 2021 and 2020 is as follows: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Operating Cash Flows from Operating Lease (Fixed Payments) $ 5.4 $ 5.3 Operating Cash Flows from Operating Lease (Liability Reduction) 4.6 4.7 Financing Cash Flows from Finance Leases 0.1 0.1 Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities 2.3 11.3 Significant judgments and assumptions for determining lease asset and liability at March 31, 2021 and 2020 are presented below. Three Months Ended Mar 31, Mar 31, Weighted-average Remaining Lease Term - Finance Leases 0.5 years 1.4 years Weighted-average Remaining Lease Term - Operating Leases 6.6 years 7.0 years Weighted-average Discount Rate - Finance Leases 4.0 % 4.0 % Weighted-average Discount Rate - Operating Leases 4.0 % 3.8 % Most of the Company’s leases do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of its lease payments. Note 13 - Leases (continued) Future minimum lease payments under finance and operating leases at March 31, 2021 are presented below. (Dollars in Millions) Finance Operating Remainder of 2021 $ 0.1 $ 17.5 2022 — 22.0 2023 — 19.3 2024 — 13.9 2025 — 9.1 2026 and Thereafter — 24.2 Total Future Payments $ 0.1 $ 106.0 Less Imputed Interest — 18.4 Present Value of Minimum Lease Payments $ 0.1 $ 87.6 |
Leases | Leases The Company leases certain office space under non-cancelable operating leases, with initial terms typically ranging from one one The following table presents operating lease right-of-use assets and lease liabilities. (Dollars in Millions) Mar 31, Dec 31, Operating Lease Right-of-Use Assets $ 66.5 $ 68.6 Operating Lease Liabilities 87.6 89.6 Note 13 - Leases (continued) Lease expenses are primarily included in Insurance Expenses in the Condensed Consolidated Statement of Income. Additional information regarding the Company’s lease cost is presented below. Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Lease Cost: Amortization of Right-of-Use Assets - Finance Leases $ 0.1 $ 0.1 Operating Lease Cost 5.1 5.6 Short-Term Lease Cost (1) 0.9 — Total Lease Cost $ 6.1 $ 5.7 (1) - Leases with an initial term of twelve months or less are not recorded on the Condensed Consolidated Balance Sheets. (2) - Sublease income consists of rent from third parties of office space and is recognized as part of other income in the Condensed Consolidated Statements of Income. Other Information on Operating Leases Supplemental cash flow information related to the Company’s operating and finance leases for the three months ended March 31, 2021 and 2020 is as follows: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Operating Cash Flows from Operating Lease (Fixed Payments) $ 5.4 $ 5.3 Operating Cash Flows from Operating Lease (Liability Reduction) 4.6 4.7 Financing Cash Flows from Finance Leases 0.1 0.1 Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities 2.3 11.3 Significant judgments and assumptions for determining lease asset and liability at March 31, 2021 and 2020 are presented below. Three Months Ended Mar 31, Mar 31, Weighted-average Remaining Lease Term - Finance Leases 0.5 years 1.4 years Weighted-average Remaining Lease Term - Operating Leases 6.6 years 7.0 years Weighted-average Discount Rate - Finance Leases 4.0 % 4.0 % Weighted-average Discount Rate - Operating Leases 4.0 % 3.8 % Most of the Company’s leases do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of its lease payments. Note 13 - Leases (continued) Future minimum lease payments under finance and operating leases at March 31, 2021 are presented below. (Dollars in Millions) Finance Operating Remainder of 2021 $ 0.1 $ 17.5 2022 — 22.0 2023 — 19.3 2024 — 13.9 2025 — 9.1 2026 and Thereafter — 24.2 Total Future Payments $ 0.1 $ 106.0 Less Imputed Interest — 18.4 Present Value of Minimum Lease Payments $ 0.1 $ 87.6 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The statute of limitations related to Kemper and its eligible subsidiaries’ consolidated Federal income tax returns is closed for all tax years up to and including 2011. As a result of the Company filing amended federal income tax returns, tax years 2012 and 2013 are under limited examination with respect to carryback adjustments associated with the amended returns. The statute of limitations related to tax years 2014, 2015, 2016 and 2017 has been extended to March 31, 2022. Tax years 2018 and 2019 are subject to a statute of three years from the extended due dates of October 15, 2019 and 2020, respectively. The expiration of the statute of limitations related to the various state income tax returns that Kemper and its subsidiaries file varies by state. There were no unrecognized tax benefits at March 31, 2021 or December 31, 2020. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. Income taxes paid, net of refunds received, were $30.1 million for the three months ended March 31, 2021. Income taxes paid, net of refunds received, were less than $0.1 million for the three months ended March 31, 2020. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies In the ordinary course of its businesses, the Company is involved in legal proceedings, including lawsuits, arbitrations, regulatory examinations, audits and inquiries. Except with regard to the matters discussed below, based on currently available information, the Company does not believe that it is reasonably possible that any of its pending legal proceedings will have a material effect on the Company’s consolidated financial statements. Over the last decade there have been multiple initiatives that intend, in various ways, to impose new duties on life insurance companies to proactively search for information related to the deaths of their insureds. These initiatives, which include legislation, audits, regulatory examinations and litigation, seek to alter the terms of life insurance contracts by imposing requirements that did not exist and were not contemplated at the time the issuing companies entered into such contracts. In 2016, the Company voluntarily began implementing a comprehensive process to compare the life insurance records of its life insurance subsidiaries against one or more death verification databases to determine if any of its insureds may be deceased; the process is continuing. |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Parties | Related PartiesMr. Christopher B. Sarofim, a director of Kemper, is Vice Chairman and a member of the board of directors of Fayez Sarofim & Co. (“FS&C”), a registered investment advisory firm. FS&C provided investment management services to the Pension Plan. As part of the Pension Plan’s partial settlement of the pension obligations in 2020, the Pension Plan disposed of all assets managed by FS&C. Accordingly, the agreement between the Pension Plan and FS&C was terminated effective January 31, 2021. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 1, 2021 Kemper completed the acquisition of American Access Casualty Company and its related captive insurance agency, Newins Insurance Agency Holdings, LLC, and its subsidiaries (collectively “AAC”). Pursuant to the agreement dated November 22, 2020, Kemper paid AAC’s equity holders total cash consideration of approximately $370.0 million. AAC, headquartered in Downers Grove, Illinois, provides specialty private passenger auto insurance in Arizona, Illinois, Indiana, Nevada, and Texas. AAC wrote over $350.0 million of direct premiums in 2020 through a network of approximately 600 independent agents and over 110 captive agents. |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Adoption of New Accounting Guidance and Guidance Not Yet Adopted | Adoption of New Accounting Guidance Guidance Adopted in 2021 In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . ASU 2019-12 is intended to simplify accounting for income taxes by eliminating certain exceptions to the guidance in ASC Topic 740, Income Taxes , related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. Further, ASU 2019-12 clarifies that single-member limited liability companies and similar disregarded entities that are not subject to income tax are not required to recognize an allocation of consolidated income tax expense in their separate financial statements, but they could elect to do so. ASU 2019-12 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods. The adoption of ASU 2019-12 did not have a material effect on the Company’s interim Condensed Consolidated Financial Statements. In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the FASB Emerging Issues) , which clarifies the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. ASU 2020-01 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods. The adoption of ASU 2020-01 did not have a material effect on the Company’s interim Condensed Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The guidance in ASU 2020-04, if elected, shall apply to contract modifications if the terms that are modified Note 1 - Basis of Presentation and Accounting Policies (Continued) directly replace, or have the potential to replace, a reference rate with another interest rate index. If other terms are contemporaneously modified in a manner that changes, or has the potential to change, the amount or timing of contractual cash flows, the guidance in ASU 2020-04 shall apply only if those modifications are related to the replacement of a reference rate. ASU 2020-04 is effective for contract modifications made between March 12, 2020 through December 31, 2022. The adoption of ASU 2020-04 did not have a material effect on the Company’s interim Condensed Consolidated Financial Statements. The Company will continue to evaluate the impact of this guidance on its financial statements. In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs , which clarifies that an entity should re-evaluate whether a callable debt security is within the scope of paragraph 310-20-35-33 for each reporting period. ASU 2020-08 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods. The adoption of ASU 2020-08 did not have a material effect on the Company’s interim Condensed Consolidated Financial Statements. The Company has adopted all other recently issued accounting pronouncements with effective dates prior to January 1, 2021. There were no adoptions of such accounting pronouncements during the three months ended March 31, 2021 that had a material impact on the Company’s interim Condensed Consolidated Financial Statements. Guidance Not Yet Adopted In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to Accounting for Long-Duration Contracts . ASU 2018-12 amends the accounting model for certain long-duration insurance contracts and requires the insurer to provide additional disclosures in annual and interim reporting periods. In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of ASU 2018-12 by one year for public business entities. ASU 2018-12 is now effective for fiscal years beginning after December 15, 2022, and interim periods within those annual periods. The amendments in ASU 2018-12 (i) require cash flow assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited pay long duration contracts to be updated at least annually with the recognition and remeasurement recorded in net income, (ii) simplify the amortization of deferred acquisition costs to be amortized on a constant level basis over the expected term of the contract, (iii) require all market risk benefits to be measured at fair value, and (iv) enhance certain presentation and disclosure requirements which include disaggregated rollforwards for liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, deferred acquisition costs, and information about significant inputs, judgments and methods used in the measurement. The Company plans to adopt using the modified retrospective transition method and is currently evaluating the impact of this guidance on its financial statements. |
Net Income Per Unrestricted S_2
Net Income Per Unrestricted Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | A reconciliation of the numerator and denominator used in the calculation of Basic Net Income Per Unrestricted Share and Diluted Net Income Per Unrestricted Share for the three months ended March 31, 2021 and 2020 is presented below. Three Months Ended (Dollars in Millions, except per share amounts) Mar 31, Mar 31, Net Income $ 123.2 $ 64.0 Less Net Income Attributed to Participating Awards 0.1 0.1 Net Income Attributed to Unrestricted Shares 123.1 63.9 Dilutive Effect on Income of Equity-based Compensation Equivalent Shares — — Diluted Net Income Attributed to Unrestricted Shares $ 123.1 $ 63.9 (Number of Shares in Thousands) Weighted-average Unrestricted Shares Outstanding 65,424.6 66,515.9 Equity-based Compensation Equivalent Shares 1,128.2 458.3 Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution 66,552.8 66,974.2 (Per Unrestricted Share in Whole Dollars) Basic Net Income Per Unrestricted Share $ 1.88 $ 0.96 Diluted Net Income Per Unrestricted Share $ 1.85 $ 0.95 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The number of shares of Kemper common stock that were excluded from the calculations of Equity-based Compensation Equivalent Shares and Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution for the three months ended March 31, 2021 and 2020, because the effect of inclusion would be anti-dilutive, is presented below. Three Months Ended (Number of Shares in Thousands) Mar 31, Mar 31, Equity-based Compensation Equivalent Shares 1,212.8 828.9 Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution 1,212.8 828.9 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Products and Services | Earned Premiums by product line for the three months ended March 31, 2021 and 2020 were: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Specialty Property & Casualty Insurance: Specialty Automobile $ 785.4 $ 753.2 Commercial Automobile 92.2 69.3 Preferred Property & Casualty Insurance: Personal Automobile 103.0 114.9 Homeowners 50.8 56.8 Other Personal Lines 8.4 9.2 Life & Health Insurance: Life 98.1 97.2 Accident and Health 47.4 49.4 Property 15.5 16.4 Total Earned Premiums $ 1,200.8 $ 1,166.4 |
Reconciliation of Revenue from Segments to Consolidated | Segment Revenues, including a reconciliation to Total Revenues, for the three months ended March 31, 2021 and 2020 were: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Segment Revenues: Specialty Property & Casualty Insurance: Earned Premiums $ 877.6 $ 822.5 Net Investment Income 35.0 28.8 Change in Value of Alternative Energy Partnership Investments (7.3) — Other Income 0.9 0.9 Total Specialty Property & Casualty Insurance 906.2 852.2 Preferred Property & Casualty Insurance: Earned Premiums 162.2 180.9 Net Investment Income 15.9 9.7 Change in Value of Alternative Energy Partnership Investments (4.1) — Total Preferred Property & Casualty Insurance 174.0 190.6 Life & Health Insurance: Earned Premiums 161.0 163.0 Net Investment Income 51.1 51.0 Change in Value of Alternative Energy Partnership Investments (4.0) — Other Income 0.1 0.1 Total Life & Health Insurance 208.2 214.1 Total Segment Revenues 1,288.4 1,256.9 Income (Loss) from Change in Fair Value of Equity and Convertible 52.2 (117.8) Net Realized Gains on Sales of Investments 13.8 16.5 Impairment Losses (4.0) (12.0) Other 1.6 85.4 Total Revenues $ 1,352.0 $ 1,229.0 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Segment Operating Income, including a reconciliation to Income before Income Taxes, for the three months ended March 31, 2021 and 2020 was: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Segment Operating Income (Loss): Specialty Property & Casualty Insurance $ 85.2 $ 75.0 Preferred Property & Casualty Insurance 3.0 23.0 Life & Health Insurance (0.8) 26.5 Total Segment Operating Income (Loss) 87.4 124.5 Corporate and Other Operating Income (Loss) From: Partial Satisfaction of Judgment — 89.4 Other (11.5) (11.1) Corporate and Other Operating Income (Loss) (11.5) 78.3 Adjusted Consolidated Operating Income (Loss) 75.9 202.8 Income (Loss) from Change in Fair Value of Equity and Convertible Securities 52.2 (117.8) Net Realized Gains on Sales of Investments 13.8 16.5 Impairment Losses (4.0) (12.0) Acquisition Related Transaction, Integration and Other Costs (16.3) (11.8) Income before Income Taxes $ 121.6 $ 77.7 |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated | Segment Net Operating Income, including a reconciliation to Net Income, for the three months ended March 31, 2021 and 2020 was: Three Months Ended (Dollars in Millions and Net of Income Taxes) Mar 31, Mar 31, Segment Net Operating Income (Loss): Specialty Property & Casualty Insurance $ 80.1 $ 60.1 Preferred Property & Casualty Insurance 9.6 18.4 Life & Health Insurance 7.3 22.3 Total Segment Net Operating Income (Loss) 97.0 100.8 Corporate and Other Net Operating Income (Loss) From: Partial Satisfaction of Judgment — 70.6 Other (9.8) (8.5) Total Corporate and Other Net Operating Income (Loss) (9.8) 62.1 Adjusted Consolidated Net Operating Income (Loss) 87.2 162.9 Net Income (Loss) From: Change in Fair Value of Equity and Convertible Securities 41.2 (93.1) Net Realized Gains on Sales of Investments 10.9 13.0 Impairment Losses (3.2) (9.5) Acquisition Related Transaction, Integration and Other Costs (12.9) (9.3) Net Income $ 123.2 $ 64.0 |
Property and Casualty Insuran_2
Property and Casualty Insurance Reserves (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Liability for Unpaid Claims Adjustment Expense by Expense Type | Property and casualty insurance reserve activity for the three months ended March 31, 2021 and 2020 was: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Property and Casualty Insurance Reserves: Gross of Reinsurance at Beginning of Year $ 1,982.5 $ 1,969.8 Less Reinsurance Recoverables at Beginning of Year 50.1 65.6 Property and Casualty Insurance Reserves - Net of Reinsurance at Beginning of Year 1,932.4 1,904.2 Property and Casualty Insurance Reserves Acquired, Net of Reinsurance — — Incurred Losses and LAE Related to: Current Year 777.0 738.1 Prior Years 0.1 0.9 Total Incurred Losses and LAE 777.1 739.0 Paid Losses and LAE Related to: Current Year 258.0 257.0 Prior Years 500.3 505.8 Total Paid Losses and LAE 758.3 762.8 Property and Casualty Insurance Reserves - Net of Reinsurance at End of Period 1,951.2 1,880.4 Plus Reinsurance Recoverables at End of Period 48.3 61.2 Property and Casualty Insurance Reserves - Gross of Reinsurance at End of Period $ 1,999.5 $ 1,941.6 |
Premium Receivable, Allowance for Credit Loss | The following table presents receivables from policyholders, net of the allowance for expected credit losses including a rollforward of changes in the allowance for expected credit losses for the three months ended March 31, 2021. (Dollars in Millions) Receivables from Policyholders, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Balance at Beginning of Year $ 1,194.5 $ 20.9 Provision for Expected Credit Losses 12.8 Write-offs of Uncollectible Receivables from Policyholders (22.4) Balance at End of Period $ 1,260.9 $ 11.3 The following table presents receivables from policyholders, net of the allowance for expected credit losses including a rollforward of changes in the allowance for expected credit losses for the three months ended March 31, 2020. (Dollars in Millions) Receivables from Policyholders, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Balance at Beginning of Year $ 1,117.1 $ 22.3 Provision for Expected Credit Losses 11.9 Write-offs of Uncollectible Receivables from Policyholders (11.1) Balance at End of Period $ 1,219.1 $ 23.1 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Securities, Available-for-sale [Line Items] | |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at March 31, 2021 by contractual maturity were: (Dollars in Millions) Amortized Cost Fair Value Due in One Year or Less $ 81.4 $ 84.6 Due after One Year to Five Years 1,049.7 1,111.0 Due after Five Years to Ten Years 1,570.2 1,691.0 Due after Ten Years 2,878.0 3,219.5 Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date 1,350.3 1,373.3 Investments in Fixed Maturities $ 6,929.6 $ 7,479.4 |
Schedule of Unrealized Loss on Investments | An aging of unrealized losses on the Company’s Investments in Fixed Maturities at March 31, 2021 is presented below. Less Than 12 Months 12 Months or Longer Total (Dollars in Millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 21.0 $ (1.3) $ 0.1 $ — $ 21.1 $ (1.3) States and Political Subdivisions 335.7 (11.6) 0.7 — 336.4 (11.6) Foreign Governments 0.2 (0.1) 2.2 (1.1) 2.4 (1.2) Corporate Securities: Bonds and Notes 559.1 (25.8) 59.6 (4.6) 618.7 (30.4) Redeemable Preferred Stocks 5.4 (0.1) — — 5.4 (0.1) Collateralized Loan Obligations 42.1 (0.2) 320.8 (10.3) 362.9 (10.5) Other Mortgage- and Asset-backed 17.3 (0.1) 0.1 — 17.4 (0.1) Total Fixed Maturities $ 980.8 $ (39.2) $ 383.5 $ (16.0) $ 1,364.3 $ (55.2) An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2020 is presented below. Less Than 12 Months 12 Months or Longer Total (Dollars in Millions) Fair Unrealized Fair Unrealized Fair Unrealized Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 10.5 $ (0.1) $ — $ — $ 10.5 $ (0.1) States and Political Subdivisions 23.3 (0.2) — — 23.3 (0.2) Foreign Governments 0.5 (0.1) 2.6 (1.0) 3.1 (1.1) Corporate Securities: Bonds and Notes 132.9 (7.5) 46.1 (3.1) 179.0 (10.6) Collateralized Loan Obligations 145.2 (3.8) 371.4 (15.9) 516.6 (19.7) Other Mortgage- and Asset-backed 6.3 — — — 6.3 — Total Fixed Maturities $ 318.7 $ (11.7) $ 420.1 $ (20.0) $ 738.8 $ (31.7) |
Allowance for Credit Losses | The following table sets forth the change in allowance for credit losses on fixed maturities available-for-sale by major security type for three months ended March 31, 2021. Foreign Governments Corporate Bonds and Notes Total (Dollars in Millions) Beginning of the Period $ 0.3 $ 3.0 $ 3.3 Additions for Securities for which No Previous Expected Credit Losses were — 1.3 1.3 Reduction Due to Sales — (0.3) (0.3) Net Increase (Decrease) in Allowance on Previously Impaired Securities 0.2 0.3 0.5 Write-offs Charged Against Allowance (0.2) — (0.2) End of the Period $ 0.3 $ 4.3 $ 4.6 The following table sets forth the change in allowance for credit losses on fixed maturities available-for-sale by major security type for the three months ended March 31, 2020. Foreign Governments Corporate Bonds and Notes Total (Dollars in Millions) Beginning of the Year $ — $ — $ — Additions for Securities for which No Previous Expected Credit Losses were 1.1 3.5 4.6 Reduction Due to Sales — — — Net Increase (Decrease) in Allowance on Previously Impaired Securities — — — Write-offs Charged Against Allowance — — — End of the Period $ 1.1 $ 3.5 $ 4.6 |
Schedule of Other Investments | The carrying values of the Company’s Other Investments at March 31, 2021 and December 31, 2020 were: (Dollars in Millions) Mar 31, Dec 31, Company-owned Life Insurance $ 429.5 $ 327.4 Loans to Policyholders at Unpaid Principal 295.1 297.9 Real Estate at Depreciated Cost 98.0 98.7 Mortgage Loans and Other 74.2 55.0 Total $ 896.8 $ 779.0 |
Investment Income | Net Investment Income for the three months ended March 31, 2021 and 2020 was: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Investment Income (Loss): Interest on Fixed Income Securities $ 69.0 $ 71.0 Dividends on Equity Securities Excluding Alternative Investments 2.1 4.3 Alternative Investments: Equity Method Limited Liability Investments 22.5 1.8 Limited Liability Investments Included in Equity Securities 4.5 3.8 Total Alternative Investments 27.0 5.6 Short-term Investments 1.2 1.6 Loans to Policyholders 5.5 5.6 Real Estate 2.4 2.5 Other 4.7 4.2 Total Investment Income 111.9 94.8 Investment Expenses: Real Estate 2.1 2.6 Other Investment Expenses 6.7 6.6 Total Investment Expenses 8.8 9.2 Net Investment Income $ 103.1 $ 85.6 |
Schedule of Realized Gain (Loss) | Gross gains and losses on sales of investments in fixed maturities for the three months ended March 31, 2021 and 2020 were: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Fixed Maturities: Gains on Sales $ 13.2 $ 15.9 Losses on Sales (1.1) (1.1) |
Investments in Fixed Maturities | |
Debt Securities, Available-for-sale [Line Items] | |
Schedule of Available-for-sale Securities Reconciliation | The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at March 31, 2021 were: Amortized Gross Unrealized Allowance for Expected Credit Losses Fair Value (Dollars in Millions) Gains Losses U.S. Government and Government Agencies and Authorities $ 498.0 $ 35.7 $ (1.3) $ — $ 532.4 States and Political Subdivisions 1,538.6 140.9 (11.6) — 1,667.9 Foreign Governments 6.3 — (1.2) (0.3) 4.8 Corporate Securities: Bonds and Notes 3,886.3 419.2 (30.4) (4.3) 4,270.8 Redeemable Preferred Stocks 7.0 0.1 (0.1) — 7.0 Collateralized Loan Obligations 791.0 2.4 (10.5) — 782.9 Other Mortgage- and Asset-backed 202.4 11.3 (0.1) — 213.6 Investments in Fixed Maturities $ 6,929.6 $ 609.6 $ (55.2) $ (4.6) $ 7,479.4 Note 5 - Investments (continued) The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2020 were: Amortized Gross Unrealized Allowance for Expected Credit Losses Fair Value (Dollars in Millions) Gains Losses U.S. Government and Government Agencies and Authorities $ 536.5 $ 48.9 $ (0.1) $ — $ 585.3 States and Political Subdivisions 1,404.3 185.4 (0.2) — 1,589.5 Foreign Governments 6.6 — (1.1) (0.3) 5.2 Corporate Securities: Bonds and Notes 3,749.5 689.5 (10.6) (3.0) 4,425.4 Redeemable Preferred Stocks 7.0 0.5 — — 7.5 Collateralized Loan Obligations 785.1 2.3 (19.7) — 767.7 Other Mortgage- and Asset-backed 203.7 21.6 — — 225.3 Investments in Fixed Maturities $ 6,692.7 $ 948.2 $ (31.7) $ (3.3) $ 7,605.9 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | The valuation of assets measured at fair value in Company’s Condensed Consolidated Balance Sheets at March 31, 2021 is summarized below. Fair Value Measurements (Dollars in Millions) Quoted Prices Significant Other Significant Measured at Net Asset Value Total Fair Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 133.0 $ 399.4 $ — $ — $ 532.4 States and Political Subdivisions — 1,667.9 — — 1,667.9 Foreign Governments — 4.8 — — 4.8 Corporate Securities: Bonds and Notes — 3,856.3 414.5 — 4,270.8 Redeemable Preferred Stock — 1.3 5.7 — 7.0 Collateralized Loan Obligations — 782.9 — — 782.9 Other Mortgage and Asset-backed — 204.6 9.0 — 213.6 Total Investments in Fixed Maturities 133.0 6,917.2 429.2 — 7,479.4 Equity Securities at Fair Value: Preferred Stocks: Finance, Insurance and Real Estate — 38.6 — — 38.6 Other Industries — 16.0 — — 16.0 Common Stocks: Finance, Insurance and Real Estate 6.8 1.7 — — 8.5 Other Industries 2.8 — 0.1 — 2.9 Other Equity Interests: Exchange Traded Funds 522.5 — — — 522.5 Limited Liability Companies and Limited Partnerships — — — 308.9 308.9 Total Investments in Equity Securities at Fair Value 532.1 56.3 0.1 308.9 897.4 Convertible Securities at Fair Value — 42.6 — — 42.6 Total $ 665.1 $ 7,016.1 $ 429.3 $ 308.9 $ 8,419.4 The valuation of assets measured at fair value in the Company’s Consolidated Balance Sheets at December 31, 2020 is summarized below. Fair Value Measurements (Dollars in Millions) Quoted Prices Significant Other Significant Measured at Net Asset Value Total Fair Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 134.0 $ 451.3 $ — $ — $ 585.3 States and Political Subdivisions — 1,589.5 — — 1,589.5 Foreign Governments — 5.2 — — 5.2 Corporate Securities: Bonds and Notes — 3,992.4 433.0 — 4,425.4 Redeemable Preferred Stocks — 1.3 6.2 — 7.5 Collateralized Loan Obligations — 767.7 — — 767.7 Other Mortgage and Asset-backed — 215.3 10.0 — 225.3 Total Investments in Fixed Maturities 134.0 7,022.7 449.2 — 7,605.9 Equity Securities at Fair Value: Preferred Stocks: Finance, Insurance and Real Estate — 43.7 — — 43.7 Other Industries — 15.4 — — 15.4 Common Stocks: Finance, Insurance and Real Estate 8.7 1.7 — — 10.4 Other Industries 0.4 — — — 0.4 Other Equity Interests: Exchange Traded Funds 496.4 — — — 496.4 Limited Liability Companies and Limited Partnerships — — — 292.2 292.2 Total Investments in Equity Securities at Fair Value 505.5 60.8 — 292.2 858.5 Other Investments: Convertible Securities at Fair Value — 39.9 — — 39.9 Total $ 639.5 $ 7,123.4 $ 449.2 $ 292.2 $ 8,504.3 |
Fair Value Measurement Inputs and Valuation Techniques | The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments classified as Level 3 at March 31, 2021. (Dollars in Millions) Unobservable Input Total Fair Value Range of Unobservable Inputs Weighted-average Yield Investment-grade Market Yield $ 251.7 0.9 % - 12.0 % 3.4 % Non-investment-grade: Senior Debt Market Yield 95.4 0.9 - 19.3 9.7 Junior Debt Market Yield 59.1 2.2 - 27.9 14.5 Other Various 23.0 Total Level 3 Fixed Maturity Investments $ 429.2 The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments classified as Level 3 at December 31, 2020. (Dollars in Millions) Unobservable Input Total Fair Value Range of Unobservable Inputs Weighted-average Yield Investment-grade Market Yield $ 246.7 1.4 % - 13.0 % 3.8 % Non-investment-grade: Senior Debt Market Yield 111.1 2.4 - 23.4 9.5 Junior Debt Market Yield 64.6 3.1 - 27.9 13.7 Other Various 26.8 Total Level 3 Fixed Maturity Investments $ 449.2 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the three months ended March 31, 2021 is presented below. Fixed Maturities (Dollars in Millions) Corporate States and Political Sub- divisions Redeemable Collateralized Loan Obligations Other Mortgage- Total Balance at Beginning of Year $ 433.0 $ — $ 6.2 $ — $ 10.0 $ 449.2 Total Gains (Losses): Included in Condensed Consolidated Statement of (1.1) — — — — (1.1) Included in Other Comprehensive Income (Loss) (3.7) — (0.5) — (0.8) (5.0) Purchases 17.8 — — — — 17.8 Settlements — — — — — — Sales (30.9) — — — (0.2) (31.1) Transfers into Level 3 — — — — — — Transfers out of Level 3 (0.6) — — — — (0.6) Balance at End of Period $ 414.5 $ — $ 5.7 $ — $ 9.0 $ 429.2 The transfers into and out of Level 3 were due primarily to changes in the availability of market observable inputs due to change in pricing provider. Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the three months ended March 31, 2020 is presented below. Fixed Maturities (Dollars in Millions) Corporate States and Political Sub- divisions Redeemable Collateralized Loan Obligations Other Mortgage- Total Balance at Beginning of Year $ 409.1 $ — $ 6.7 $ 618.2 $ 10.2 $ 1,044.2 Total Gains (Losses): Included in Condensed Consolidated Statement of Income (2.7) — — (0.3) — (3.0) Included in Other Comprehensive Income (Loss) (24.8) 0.1 — (9.5) (0.6) (34.8) Purchases 27.2 0.6 — 53.6 — 81.4 Settlements — — — — — — Sales (18.2) — — (26.4) (0.2) (44.8) Transfers into Level 3 — — — — — — Transfers out of Level 3 — — — (557.7) — (557.7) Balance at End of Period $ 390.6 $ 0.7 $ 6.7 $ 77.9 $ 9.4 $ 485.3 The transfers into and out of Level 3 were due to changes in the availability of market observable inputs. |
Fair Value, by Balance Sheet Grouping | Presented below are the carrying values and fair value estimates of financial instruments not carried at fair value. March 31, 2021 December 31, 2020 (Dollars in Millions) Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Loans to Policyholders $ 295.1 $ 295.1 $ 297.9 $ 297.9 Short-term Investments 196.9 196.9 875.4 875.4 Mortgage Loans 73.2 73.2 54.6 54.6 Financial Liabilities: Long-term Debt $ 1,122.6 $ 1,213.3 $ 1,172.8 $ 1,247.8 Policyholder Obligations 407.5 407.5 407.8 407.8 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Variable Interest Entities | The following table presents information regarding activity in the Company’s Alternative Energy Partnership Investments as of the periods indicated: ($ in millions) Mar 31, 2021 Dec 31, 2020 Fundings $ 48.5 $ 20.0 Cash distribution from investment — — Gain (loss) on investments in Alternative Energy Partnership (15.4) — Income tax credits recognized 28.4 3.6 Tax expense (benefit) recognized from HLBV application 0.2 (0.4) The following table represents the carrying value of the associated assets and liabilities and the associated maximum loss exposure of the Alternative Energy Partnership Investments as of the dates indicated: ($ in millions) Mar 31, 2021 Cash $ 7.2 Equipment, net of depreciation 54.4 Other assets 0.6 Total unconsolidated assets 62.2 Maximum loss exposure 54.4 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |
Schedule of Comprehensive Income | The components of Other Comprehensive Income (Loss) and AOCI for the three months ended March 31, 2021 were: Changes in Net Unrealized Gains (Losses) on Investment Securities (Dollars in Millions) Having No Credit Losses Recognized in Consolidated Statements of Income Having Credit Losses Recognized in Consolidated Statements of Income Net Unrecognized Postretirement Benefit Costs Gain (Loss) on Cash Total Balance at Beginning of Period 730.6 $ (2.1) $ (45.7) $ (2.3) $ 680.5 Other Comprehensive Income (Loss) Before Reclassification Adjustment, Net of Tax (281.5) (1.7) 0.8 0.1 (282.3) Reclassification Adjustment for Amounts Included in Net Income, Net of Tax (7.7) — — — (7.7) Other Comprehensive Income (Loss), Net of Tax (289.2) (1.7) 0.8 0.1 (290.0) Balance at End of Period $ 441.4 $ (3.8) $ (44.9) $ (2.2) $ 390.5 The pre-tax components of the Other Comprehensive Income (Loss) and the related Income Tax Benefit (Expense) for the three months ended March 31, 2021 and 2020 were: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Changes in Net Unrealized Gains (Losses) on Investment Securities: Having No Credit Losses Recognized in Condensed Consolidated Statements of Income $ (354.2) $ (198.0) Income Tax Benefit (Expense) 72.7 41.6 Net of Taxes (281.5) (156.4) Having Credit Losses Recognized in Condensed Consolidated Statements of Income (2.1) (2.9) Income Tax Benefit (Expense) 0.4 0.6 Net of Taxes (1.7) (2.3) Reclassification Adjustment for Amounts Included in Net Income (9.8) (3.9) Income Tax Benefit (Expense) 2.1 0.8 Net of Taxes (7.7) (3.1) Changes in Net Unrecognized Postretirement Benefit Costs 0.3 0.7 Income Tax Benefit (Expense) 0.5 (0.2) Net of Taxes 0.8 0.5 Changes in Gain (Loss) on Cash Flow Hedges 0.1 0.1 Income Tax Benefit (Expense) — — Net of Taxes 0.1 0.1 Total Other Comprehensive Income (Loss) Before Income Taxes (365.7) (204.0) Total Income Tax Benefit (Expense) 75.7 42.8 Total Other Comprehensive Income (Loss), Net of Taxes $ (290.0) $ (161.2) |
Reclassification out of Accumulated Comprehensive Income | Components of AOCI were reclassified to the following lines of the Condensed Consolidated Statements of Income for the three months ended March 31, 2021 and 2020: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Reclassification of AOCI from Net Unrealized Gains on Investments to: Net Realized Gains on Sales of Investments $ 13.8 $ 15.9 Impairment Losses (4.0) (12.0) Total Before Income Taxes 9.8 3.9 Income Tax Benefit (Expense) (2.1) (0.8) Reclassification from AOCI, Net of Income Taxes 7.7 3.1 Reclassification of AOCI from Unrecognized Postretirement Benefit Costs to: Interest and Other Expenses (0.3) (0.7) Income Tax Benefit (Expense) (0.5) 0.1 Reclassification from AOCI, Net of Income Taxes (0.8) (0.6) Reclassification of AOCI from Loss on Cash Flow Hedges to: Interest and Other Expenses (0.1) (0.1) Income Tax Benefit (Expense) — — Reclassification from AOCI, Net of Income Taxes (0.1) (0.1) Total Reclassification from AOCI to Net Income $ 6.8 $ 2.4 |
Pension Benefits and Postreti_2
Pension Benefits and Postretirement Benefits Other Than Pensions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | The components of Pension Income for the Pension Plan for the three months ended March 31, 2021 and 2020 were: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Interest Cost on Projected Benefit Obligation $ 1.8 $ 4.5 Expected Return on Plan Assets (2.3) (7.3) Amortization of Net Actuarial Loss 0.7 1.5 Total Pension (Benefit) Expense $ 0.2 $ (1.3) |
Postretirement Benefits Other than Pensions | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | The components of OPEB benefits for the OPEB Plans for the three months ended March 31, 2021 and 2020 were: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Service Cost $ 0.1 $ 0.1 Interest Cost on Accumulated Postretirement Benefit Obligation — 0.1 Amortization of Prior Service Credit (0.3) (0.3) Amortization of Net Gain (0.4) (0.5) Total OPEB (Benefit) Expense $ (0.6) $ (0.6) |
Policyholder Contract Liabili_2
Policyholder Contract Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Insurance [Abstract] | |
Schedule of Liability for Future Policy Benefits, by Product Segment | Policyholder Obligations at March 31, 2021 and December 31, 2020 were as follows: (Dollars in Millions) Mar 31, Dec 31, FHLB Funding Agreements $ 407.5 $ 407.8 Other 59.0 59.2 Total $ 466.5 $ 467.0 |
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank | United Insurance’s liability under the funding agreements with the FHLB of Chicago, the amount of collateral pledged under such agreements and FHLB of Chicago common stock owned by United Insurance at March 31, 2021 and December 31, 2020 is presented below. (Dollars in Millions) Mar 31, Dec 31, Liability under Funding Agreements $ 407.5 $ 407.8 Fair Value of Collateral Pledged 510.5 530.5 FHLB of Chicago Common Stock Owned at Cost 11.8 11.8 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Total amortized cost of Long-term Debt outstanding at March 31, 2021 and December 31, 2020 was: (Dollars in Millions) Mar 31, Dec 31, Term Loan due July 5, 2023 $ — $ 49.9 5.000% Senior Notes due September 19, 2022 277.9 278.3 4.350% Senior Notes due February 15, 2025 448.9 448.8 2.400% Senior Notes due September 30, 2030 395.8 395.8 Total Long-term Debt Outstanding $ 1,122.6 $ 1,172.8 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Lease, Cost | The following table presents operating lease right-of-use assets and lease liabilities. (Dollars in Millions) Mar 31, Dec 31, Operating Lease Right-of-Use Assets $ 66.5 $ 68.6 Operating Lease Liabilities 87.6 89.6 Lease expenses are primarily included in Insurance Expenses in the Condensed Consolidated Statement of Income. Additional information regarding the Company’s lease cost is presented below. Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Lease Cost: Amortization of Right-of-Use Assets - Finance Leases $ 0.1 $ 0.1 Operating Lease Cost 5.1 5.6 Short-Term Lease Cost (1) 0.9 — Total Lease Cost $ 6.1 $ 5.7 (1) - Leases with an initial term of twelve months or less are not recorded on the Condensed Consolidated Balance Sheets. (2) - Sublease income consists of rent from third parties of office space and is recognized as part of other income in the Condensed Consolidated Statements of Income. Supplemental cash flow information related to the Company’s operating and finance leases for the three months ended March 31, 2021 and 2020 is as follows: Three Months Ended (Dollars in Millions) Mar 31, Mar 31, Operating Cash Flows from Operating Lease (Fixed Payments) $ 5.4 $ 5.3 Operating Cash Flows from Operating Lease (Liability Reduction) 4.6 4.7 Financing Cash Flows from Finance Leases 0.1 0.1 Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities 2.3 11.3 Significant judgments and assumptions for determining lease asset and liability at March 31, 2021 and 2020 are presented below. Three Months Ended Mar 31, Mar 31, Weighted-average Remaining Lease Term - Finance Leases 0.5 years 1.4 years Weighted-average Remaining Lease Term - Operating Leases 6.6 years 7.0 years Weighted-average Discount Rate - Finance Leases 4.0 % 4.0 % Weighted-average Discount Rate - Operating Leases 4.0 % 3.8 % |
Schedule of Future Minimum Lease Payments for Capital and Operating Leases | Future minimum lease payments under finance and operating leases at March 31, 2021 are presented below. (Dollars in Millions) Finance Operating Remainder of 2021 $ 0.1 $ 17.5 2022 — 22.0 2023 — 19.3 2024 — 13.9 2025 — 9.1 2026 and Thereafter — 24.2 Total Future Payments $ 0.1 $ 106.0 Less Imputed Interest — 18.4 Present Value of Minimum Lease Payments $ 0.1 $ 87.6 |
Net Income Per Unrestricted S_3
Net Income Per Unrestricted Share - Reconciliation of Numerator and Denominator Used in Calculation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of Basic and Diluted Earnings Per Share [Line Items] | ||
Net Income | $ 123.2 | $ 64 |
Dilutive Effect on Income of Equity-based Compensation Equivalent Shares | 0 | 0 |
Diluted Net Income Attributed to Unrestricted Shares | $ 123.1 | $ 63.9 |
Weighted-Average Unrestricted Shares Outstanding (in shares) | 65,424,600 | 66,515,900 |
Equity-based Compensation Equivalent Shares (in shares) | 1,128,200 | 458,300 |
Weighted-Average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution (in shares) | 66,552,800 | 66,974,200 |
Basic (in dollars per share) | $ 1.88 | $ 0.96 |
Diluted (in dollars per share) | $ 1.85 | $ 0.95 |
Common Stock | ||
Schedule of Basic and Diluted Earnings Per Share [Line Items] | ||
Net Income | $ 123.1 | $ 63.9 |
Participating Awards | ||
Schedule of Basic and Diluted Earnings Per Share [Line Items] | ||
Net Income | $ 0.1 | $ 0.1 |
Net Income Per Unrestricted S_4
Net Income Per Unrestricted Share - Antidilutive (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 1,212,800 | 828,900 |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 1,212,800 | 828,900 |
Business Segments - Narrative (
Business Segments - Narrative (Details) | 3 Months Ended |
Mar. 31, 2021segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Business Segments - Earned Prem
Business Segments - Earned Premiums by Product Line (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Earned Premiums | $ 1,200.8 | $ 1,166.4 |
Operating Segments | Specialty Property & Casualty Insurance | ||
Segment Reporting Information [Line Items] | ||
Earned Premiums | 877.6 | 822.5 |
Operating Segments | Preferred Property & Casualty Insurance | ||
Segment Reporting Information [Line Items] | ||
Earned Premiums | 162.2 | 180.9 |
Operating Segments | Life & Health Insurance | ||
Segment Reporting Information [Line Items] | ||
Earned Premiums | 161 | 163 |
Operating Segments | Specialty Automobile | Specialty Property & Casualty Insurance | ||
Segment Reporting Information [Line Items] | ||
Earned Premiums | 785.4 | 753.2 |
Operating Segments | Commercial Automobile | Specialty Property & Casualty Insurance | ||
Segment Reporting Information [Line Items] | ||
Earned Premiums | 92.2 | 69.3 |
Operating Segments | Personal Automobile | Preferred Property & Casualty Insurance | ||
Segment Reporting Information [Line Items] | ||
Earned Premiums | 103 | 114.9 |
Operating Segments | Homeowners | Preferred Property & Casualty Insurance | ||
Segment Reporting Information [Line Items] | ||
Earned Premiums | 50.8 | 56.8 |
Operating Segments | Other Personal Lines | Preferred Property & Casualty Insurance | ||
Segment Reporting Information [Line Items] | ||
Earned Premiums | 8.4 | 9.2 |
Operating Segments | Life | Life & Health Insurance | ||
Segment Reporting Information [Line Items] | ||
Earned Premiums | 98.1 | 97.2 |
Operating Segments | Accident and Health | Life & Health Insurance | ||
Segment Reporting Information [Line Items] | ||
Earned Premiums | 47.4 | 49.4 |
Operating Segments | Property | Life & Health Insurance | ||
Segment Reporting Information [Line Items] | ||
Earned Premiums | $ 15.5 | $ 16.4 |
Business Segments - Segment Rev
Business Segments - Segment Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Earned Premiums | $ 1,200.8 | $ 1,166.4 |
Net Investment Income | 103.1 | 85.6 |
Variable Interest Entity, Measure of Activity, Income or Loss before Tax | (15.4) | 0 |
Other Income | 1.5 | 90.3 |
Total Revenues | 1,352 | 1,229 |
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | 52.2 | (117.8) |
Impairment Losses | (4) | (12) |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 1,288.4 | 1,256.9 |
Operating Segments | Specialty Property & Casualty Insurance | ||
Segment Reporting Information [Line Items] | ||
Earned Premiums | 877.6 | 822.5 |
Net Investment Income | 35 | 28.8 |
Variable Interest Entity, Measure of Activity, Income or Loss before Tax | (7.3) | |
Other Income | 0.9 | 0.9 |
Total Revenues | 906.2 | 852.2 |
Operating Segments | Preferred Property & Casualty Insurance | ||
Segment Reporting Information [Line Items] | ||
Earned Premiums | 162.2 | 180.9 |
Net Investment Income | 15.9 | 9.7 |
Variable Interest Entity, Measure of Activity, Income or Loss before Tax | (4.1) | |
Total Revenues | 174 | 190.6 |
Operating Segments | Life & Health Insurance | ||
Segment Reporting Information [Line Items] | ||
Earned Premiums | 161 | 163 |
Net Investment Income | 51.1 | 51 |
Variable Interest Entity, Measure of Activity, Income or Loss before Tax | (4) | |
Other Income | 0.1 | 0.1 |
Total Revenues | 208.2 | 214.1 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | 52.2 | (117.8) |
Net Realized Gains on Sales of Investments | 13.8 | 16.5 |
Impairment Losses | (4) | (12) |
Other | $ 1.6 | $ 85.4 |
Business Segments - Segment Ope
Business Segments - Segment Operating Profit (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | $ 75.9 | $ 202.8 |
Corporate and Other Operating Income (Loss) From: | ||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | 52.2 | (117.8) |
Impairment Losses | (4) | (12) |
Income before Income Taxes | 121.6 | 77.7 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | 87.4 | 124.5 |
Operating Segments | Specialty Property & Casualty Insurance | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | 85.2 | 75 |
Operating Segments | Preferred Property & Casualty Insurance | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | 3 | 23 |
Operating Segments | Life & Health Insurance | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | (0.8) | 26.5 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | (11.5) | 78.3 |
Corporate and Other Operating Income (Loss) From: | ||
Partial Satisfaction of Judgment | 0 | 89.4 |
Other | (11.5) | (11.1) |
Segment Reconciling Items | ||
Corporate and Other Operating Income (Loss) From: | ||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | 52.2 | (117.8) |
Net Realized Gains on Sales of Investments | 13.8 | 16.5 |
Impairment Losses | (4) | (12) |
Acquisition Related Transaction, Integration and Other Costs | $ (16.3) | $ (11.8) |
Business Segments - Segment Net
Business Segments - Segment Net Operating Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Segment Net Operating Income (Loss) | $ 87.2 | $ 162.9 |
Net Income | 123.2 | 64 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Segment Net Operating Income (Loss) | 97 | 100.8 |
Operating Segments | Specialty Property & Casualty Insurance | ||
Segment Reporting Information [Line Items] | ||
Segment Net Operating Income (Loss) | 80.1 | 60.1 |
Operating Segments | Preferred Property & Casualty Insurance | ||
Segment Reporting Information [Line Items] | ||
Segment Net Operating Income (Loss) | 9.6 | 18.4 |
Operating Segments | Life & Health Insurance | ||
Segment Reporting Information [Line Items] | ||
Segment Net Operating Income (Loss) | 7.3 | 22.3 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Segment Net Operating Income (Loss) | (9.8) | 62.1 |
Partial Satisfaction of Judgment | 0 | 70.6 |
Other | (9.8) | (8.5) |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Change in Fair Value of Equity and Convertible Securities | 41.2 | (93.1) |
Net Realized Gains on Sales of Investments | 10.9 | 13 |
Impairment Losses | (3.2) | (9.5) |
Acquisition Related Transaction, Integration and Other Costs | $ (12.9) | $ (9.3) |
Property and Casualty Insuran_3
Property and Casualty Insurance Reserves - Reserve Activity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Gross of Reinsurance at Beginning of Year | $ 1,982.5 | |
Incurred Losses and LAE Related to: | ||
Incurred Losses and LAE Related to Prior Years | 0.1 | $ 0.9 |
Paid Losses and LAE Related to: | ||
Property and Casualty Insurance Reserves - Gross of Reinsurance at End of Period | 1,999.5 | |
Property, Liability and Casualty Insurance Product Line | ||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Gross of Reinsurance at Beginning of Year | 1,982.5 | 1,969.8 |
Less Reinsurance Recoverables at Beginning of Year | 50.1 | 65.6 |
Property and Casualty Insurance Reserves - Net of Reinsurance at Beginning of Year | 1,932.4 | 1,904.2 |
Property and Casualty Insurance Reserves Acquired, Net of Reinsurance | 0 | 0 |
Incurred Losses and LAE Related to: | ||
Incurred Losses and LAE Related to Current Year | 777 | 738.1 |
Incurred Losses and LAE Related to Prior Years | 0.1 | 0.9 |
Total Incurred Losses and LAE | 777.1 | 739 |
Paid Losses and LAE Related to: | ||
Paid Losses and LAE Related to Current Year | 258 | 257 |
Paid Losses and LAE Related to Prior Years | 500.3 | 505.8 |
Total Paid Losses and LAE | 758.3 | 762.8 |
Property and Casualty Insurance Reserves - Net of Reinsurance at End of Period | 1,951.2 | 1,880.4 |
Plus Reinsurance Recoverables at End of Period | 48.3 | 61.2 |
Property and Casualty Insurance Reserves - Gross of Reinsurance at End of Period | $ 1,999.5 | $ 1,941.6 |
Property and Casualty Insuran_4
Property and Casualty Insurance Reserves - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Incurred Losses and LAE Related to Prior Years | $ (0.1) | $ (0.9) |
Specialty Automobile | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Incurred Losses and LAE Related to Prior Years | 4 | (18) |
Personal Automobile | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Incurred Losses and LAE Related to Prior Years | (1.3) | (2.1) |
Homeowners | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Incurred Losses and LAE Related to Prior Years | 2.6 | 5 |
Other Personal Lines | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Incurred Losses and LAE Related to Prior Years | (2.3) | 1.8 |
Commercial Automobile | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Incurred Losses and LAE Related to Prior Years | $ (3) | $ 12.5 |
Property and Casualty Insuran_5
Property and Casualty Insurance Reserves - Allowance for Credit Losses from Policyholders (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Premium Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Premium Receivable, Allowance for Credit Loss, Beginning Balance | $ 20.9 | $ 22.3 | ||||
Premium Receivable, Allowance for Credit Loss, Ending Balance | 11.3 | 23.1 | ||||
Premiums Receivable, Net | $ 1,260.9 | $ 1,194.5 | $ 1,219.1 | $ 1,117.1 | ||
Premium receivables, allowance for credit losses | 11.3 | 23.1 | $ 11.3 | $ 20.9 | $ 23.1 | $ 22.3 |
Provision for Expected Credit Losses | 12.8 | 11.9 | ||||
Premium Receivable, Allowance for Credit Loss, Writeoff | $ 22.4 | $ 11.1 |
Investments - Schedule of Fixed
Investments - Schedule of Fixed Maturities (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturities, at amortized cost | $ 6,929,600,000 | $ 6,692,700,000 | ||
Gross unrealized gains | 609,600,000 | |||
Gross unrealized loss | (55,200,000) | |||
Fixed maturities, allowance for credit losses | (4,600,000) | (3,300,000) | $ (4,600,000) | $ 0 |
Fixed maturities at fair value | 7,479,400,000 | 7,605,900,000 | ||
Investments in Fixed Maturities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturities, at amortized cost | 6,692,700,000 | |||
Gross unrealized gains | 948,200,000 | |||
Gross unrealized loss | (31,700,000) | |||
Fixed maturities at fair value | 7,605,900,000 | |||
Debt securities, available-for-sale, unrealized loss position, accumulated loss | 55,200,000 | 31,700,000 | ||
Investments in Fixed Maturities | Investment-grade | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt securities, available-for-sale, unrealized loss position, accumulated loss | 39,800,000 | 8,000,000 | ||
U.S. Government and Government Agencies and Authorities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturities, at amortized cost | 498,000,000 | 536,500,000 | ||
Gross unrealized gains | 35,700,000 | 48,900,000 | ||
Gross unrealized loss | (1,300,000) | (100,000) | ||
Fixed maturities, allowance for credit losses | 0 | |||
Fixed maturities at fair value | 532,400,000 | 585,300,000 | ||
Debt securities, available-for-sale, unrealized loss position, accumulated loss | 1,300,000 | 100,000 | ||
States and Political Subdivisions | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturities, at amortized cost | 1,538,600,000 | 1,404,300,000 | ||
Gross unrealized gains | 140,900,000 | 185,400,000 | ||
Gross unrealized loss | (11,600,000) | (200,000) | ||
Fixed maturities, allowance for credit losses | 0 | |||
Fixed maturities at fair value | 1,667,900,000 | 1,589,500,000 | ||
Debt securities, available-for-sale, unrealized loss position, accumulated loss | 11,600,000 | 200,000 | ||
Foreign Governments | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturities, at amortized cost | 6,300,000 | 6,600,000 | ||
Gross unrealized gains | 0 | 0 | ||
Gross unrealized loss | (1,200,000) | (1,100,000) | ||
Fixed maturities, allowance for credit losses | (300,000) | (300,000) | (1,100,000) | 0 |
Fixed maturities at fair value | 4,800,000 | 5,200,000 | ||
Debt securities, available-for-sale, unrealized loss position, accumulated loss | 1,200,000 | 1,100,000 | ||
Bonds and Notes | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturities, at amortized cost | 3,886,300,000 | 3,749,500,000 | ||
Gross unrealized gains | 419,200,000 | 689,500,000 | ||
Gross unrealized loss | (30,400,000) | (10,600,000) | ||
Fixed maturities, allowance for credit losses | (4,300,000) | (3,000,000) | $ (3,500,000) | $ 0 |
Fixed maturities at fair value | 4,270,800,000 | 4,425,400,000 | ||
Debt securities, available-for-sale, unrealized loss position, accumulated loss | 30,400,000 | 10,600,000 | ||
Redeemable Preferred Stocks | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturities, at amortized cost | 7,000,000 | 7,000,000 | ||
Gross unrealized gains | 100,000 | 500,000 | ||
Gross unrealized loss | (100,000) | 0 | ||
Fixed maturities, allowance for credit losses | 0 | |||
Fixed maturities at fair value | 7,000,000 | 7,500,000 | ||
Debt securities, available-for-sale, unrealized loss position, accumulated loss | 100,000 | |||
Collateralized Loan Obligations | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturities, at amortized cost | 791,000,000 | 785,100,000 | ||
Gross unrealized gains | 2,400,000 | 2,300,000 | ||
Gross unrealized loss | (10,500,000) | (19,700,000) | ||
Fixed maturities, allowance for credit losses | 0 | |||
Fixed maturities at fair value | 782,900,000 | 767,700,000 | ||
Debt securities, available-for-sale, unrealized loss position, accumulated loss | 10,500,000 | 19,700,000 | ||
Other Mortgage- and Asset-backed | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturities, at amortized cost | 202,400,000 | 203,700,000 | ||
Gross unrealized gains | 11,300,000 | 21,600,000 | ||
Gross unrealized loss | (100,000) | 0 | ||
Fixed maturities, allowance for credit losses | 0 | |||
Fixed maturities at fair value | 213,600,000 | 225,300,000 | ||
Debt securities, available-for-sale, unrealized loss position, accumulated loss | $ 100,000 | $ 0 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | $ 1,373,300,000 | |||
Fixed maturities, allowance for credit losses | 4,600,000 | $ 3,300,000 | $ 4,600,000 | $ 0 |
Equity securities | 897,400,000 | 858,500,000 | ||
Equity securities, FV-NI, unrealized gain (loss) | 56,500,000 | |||
Equity securities without readily determinable fair value, impairment loss, annual amount | 800,000 | |||
Equity securities without readily determinable fair value, downward price adjustment, cumulative amount | 500,000 | |||
Equity securities without readily determinable fair value, upward price adjustment, cumulative amount | 0 | |||
Equity securities without readily determinable fair value, impairment loss, cumulative amount | 6,700,000 | |||
Other Receivables | 225,400,000 | 222,400,000 | ||
Equity Securities at Fair Value (Cost: 2021 - $680.6; 2020 - $684.1) | 897,400,000 | 858,500,000 | ||
Reduction Due to Sales | (300,000) | |||
Variable Interest Entity, Not Primary Beneficiary | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 54,400,000 | |||
Variable Interest Entity, Funding Investment Commitment, Funding | 48,500,000 | 20,000,000 | ||
Government National Mortgage Association Certificates and Obligations (GNMA) | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 361,300,000 | |||
Federal National Mortgage Association Certificates and Obligations (FNMA) | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 4,800,000 | |||
Federal Home Loan Mortgage Corporation Certificates and Obligations (FHLMC) | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 11,700,000 | |||
Other Non-Governmental Issuers | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 995,500,000 | |||
Investments in Fixed Maturities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt securities, available-for-sale, unrealized loss position, accumulated loss | 55,200,000 | 31,700,000 | ||
12 Months or Longer | 16,000,000 | 20,000,000 | ||
Other Receivables | 23,700,000 | 5,100,000 | ||
Other liabilities | 54,700,000 | 4,300,000 | ||
Equity Securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Other Receivables | 0 | |||
Equity Securities | Fair Value, Measurements, Recurring | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Equity securities | 897,400,000 | 858,500,000 | ||
Equity Securities at Fair Value (Cost: 2021 - $680.6; 2020 - $684.1) | 897,400,000 | 858,500,000 | ||
Equity Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Equity securities | 532,100,000 | 505,500,000 | ||
Equity Securities at Fair Value (Cost: 2021 - $680.6; 2020 - $684.1) | 532,100,000 | 505,500,000 | ||
Preferred Stocks | Other Industries | Fair Value, Measurements, Recurring | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Equity securities | 16,000,000 | 15,400,000 | ||
Equity Securities at Fair Value (Cost: 2021 - $680.6; 2020 - $684.1) | 16,000,000 | 15,400,000 | ||
Preferred Stocks | Other Industries | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Equity securities | 0 | 0 | ||
Equity Securities at Fair Value (Cost: 2021 - $680.6; 2020 - $684.1) | 0 | 0 | ||
Common Stock | Other Industries | Fair Value, Measurements, Recurring | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Equity securities | 2,900,000 | 400,000 | ||
Equity Securities at Fair Value (Cost: 2021 - $680.6; 2020 - $684.1) | 2,900,000 | 400,000 | ||
Common Stock | Other Industries | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Equity securities | 2,800,000 | 400,000 | ||
Equity Securities at Fair Value (Cost: 2021 - $680.6; 2020 - $684.1) | 2,800,000 | 400,000 | ||
Bonds and Notes | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt securities, available-for-sale, unrealized loss position, accumulated loss | 30,400,000 | 10,600,000 | ||
12 Months or Longer | 4,600,000 | 3,100,000 | ||
Fixed maturities, allowance for credit losses | 4,300,000 | 3,000,000 | $ 3,500,000 | $ 0 |
Reduction Due to Sales | (300,000) | |||
Variable Interest Entity, Not Primary Beneficiary | Equity Method Limited Liability Investments | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Outstanding commitments to fund equity method limited liability investments | 94,600,000 | |||
Variable Interest Entity, Not Primary Beneficiary | Alternative Energy Partnership Investments | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Outstanding commitments to fund equity method limited liability investments | 31,500,000 | |||
Investment-grade | Investments in Fixed Maturities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt securities, available-for-sale, unrealized loss position, accumulated loss | 39,800,000 | 8,000,000 | ||
Non-investment-grade | Investments in Fixed Maturities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt securities, available-for-sale, unrealized loss position, accumulated loss | $ 15,400,000 | $ 23,700,000 | ||
Percentage of unrealized loss position to amortized cost basis of available for sale security average | 9.00% | 11.00% |
Investments - Amortized Costs a
Investments - Amortized Costs and Estimated Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due in One Year or Less | $ 81.4 | |
Due after One Year to Five Years | 1,049.7 | |
Due after Five Years to Ten Years | 1,570.2 | |
Due after Ten Years | 2,878 | |
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 1,350.3 | |
Fixed maturities, at amortized cost | 6,929.6 | $ 6,692.7 |
Fair Value | ||
Due in One Year or Less | 84.6 | |
Due after One Year to Five Years | 1,111 | |
Due after Five Years to Ten Years | 1,691 | |
Due after Ten Years | 3,219.5 | |
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 1,373.3 | |
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $6,929.6; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $4.6; 2020 - $3.3) | $ 7,479.4 | $ 7,605.9 |
Investments - Continuous Unreal
Investments - Continuous Unrealized Loss (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
U.S. Government and Government Agencies and Authorities | ||
Fair Value | ||
Less Than 12 Months | $ 21 | $ 10.5 |
12 Months or Longer | 0.1 | 0 |
Total | 21.1 | 10.5 |
Unrealized Losses | ||
Less Than 12 Months | (1.3) | (0.1) |
12 Months or Longer | 0 | 0 |
Total | (1.3) | (0.1) |
States and Political Subdivisions | ||
Fair Value | ||
Less Than 12 Months | 335.7 | 23.3 |
12 Months or Longer | 0.7 | 0 |
Total | 336.4 | 23.3 |
Unrealized Losses | ||
Less Than 12 Months | (11.6) | (0.2) |
12 Months or Longer | 0 | 0 |
Total | (11.6) | (0.2) |
Foreign Governments | ||
Fair Value | ||
Less Than 12 Months | 0.2 | 0.5 |
12 Months or Longer | 2.2 | 2.6 |
Total | 2.4 | 3.1 |
Unrealized Losses | ||
Less Than 12 Months | (0.1) | (0.1) |
12 Months or Longer | (1.1) | (1) |
Total | (1.2) | (1.1) |
Bonds and Notes | ||
Fair Value | ||
Less Than 12 Months | 559.1 | 132.9 |
12 Months or Longer | 59.6 | 46.1 |
Total | 618.7 | 179 |
Unrealized Losses | ||
Less Than 12 Months | (25.8) | (7.5) |
12 Months or Longer | (4.6) | (3.1) |
Total | (30.4) | (10.6) |
Redeemable Preferred Stocks | ||
Fair Value | ||
Less Than 12 Months | 5.4 | |
12 Months or Longer | 0 | |
Total | 5.4 | |
Unrealized Losses | ||
Less Than 12 Months | (0.1) | |
12 Months or Longer | 0 | |
Total | (0.1) | |
Collateralized Loan Obligations | ||
Fair Value | ||
Less Than 12 Months | 42.1 | 145.2 |
12 Months or Longer | 320.8 | 371.4 |
Total | 362.9 | 516.6 |
Unrealized Losses | ||
Less Than 12 Months | (0.2) | (3.8) |
12 Months or Longer | (10.3) | (15.9) |
Total | (10.5) | (19.7) |
Other Mortgage- and Asset-backed | ||
Fair Value | ||
Less Than 12 Months | 17.3 | 6.3 |
12 Months or Longer | 0.1 | 0 |
Total | 17.4 | 6.3 |
Unrealized Losses | ||
Less Than 12 Months | (0.1) | 0 |
12 Months or Longer | 0 | 0 |
Total | (0.1) | 0 |
Investments in Fixed Maturities | ||
Fair Value | ||
Less Than 12 Months | 980.8 | 318.7 |
12 Months or Longer | 383.5 | 420.1 |
Total | 1,364.3 | 738.8 |
Unrealized Losses | ||
Less Than 12 Months | (39.2) | (11.7) |
12 Months or Longer | (16) | (20) |
Total | (55.2) | (31.7) |
Investments in Fixed Maturities | Non-investment-grade | ||
Unrealized Losses | ||
Total | $ (15.4) | $ (23.7) |
Investments - Allowance for Cre
Investments - Allowance for Credit Losses (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |||
Beginning of the Period | $ 3,300,000 | $ 0 | $ 0 |
Additions for Securities for which No Previous Expected Credit Losses were Recognized | 1,300,000 | 4,600,000 | |
Reduction Due to Sales | (300,000) | ||
End of the Period | 4,600,000 | 4,600,000 | 3,300,000 |
Net Increase (Decrease) in Allowance on Previously Impaired Securities | 500,000 | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Writeoff | (200,000) | ||
Foreign Governments | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |||
Beginning of the Period | 300,000 | 0 | 0 |
Additions for Securities for which No Previous Expected Credit Losses were Recognized | 0 | 1,100,000 | |
End of the Period | 300,000 | 1,100,000 | 300,000 |
Net Increase (Decrease) in Allowance on Previously Impaired Securities | 200,000 | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Writeoff | (200,000) | ||
Bonds and Notes | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |||
Beginning of the Period | 3,000,000 | 0 | 0 |
Additions for Securities for which No Previous Expected Credit Losses were Recognized | 1,300,000 | 3,500,000 | |
Reduction Due to Sales | (300,000) | ||
End of the Period | 4,300,000 | $ 3,500,000 | $ 3,000,000 |
Net Increase (Decrease) in Allowance on Previously Impaired Securities | 300,000 | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Writeoff | $ 0 |
Investments - Schedule of Other
Investments - Schedule of Other Investments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Company-owned Life Insurance | $ 429.5 | $ 327.4 |
Loans to Policyholders at Unpaid Principal | 295.1 | 297.9 |
Real Estate at Depreciated Cost | 98 | 98.7 |
Mortgage Loans and Other | 74.2 | 55 |
Total | $ 896.8 | $ 779 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net Investment Income [Line Items] | ||
Investment income | $ 111.9 | $ 94.8 |
Investment expenses | 8.8 | 9.2 |
Net Investment Income | 103.1 | 85.6 |
Fixed Maturities | ||
Net Investment Income [Line Items] | ||
Investment income | 69 | 71 |
Equity Securities | ||
Net Investment Income [Line Items] | ||
Investment income | 2.1 | 4.3 |
Total Alternative Investments | ||
Net Investment Income [Line Items] | ||
Investment income | 27 | 5.6 |
Equity Method Limited Liability Investments | ||
Net Investment Income [Line Items] | ||
Investment income | 22.5 | 1.8 |
Limited Liability Investments Included in Equity Securities | ||
Net Investment Income [Line Items] | ||
Investment income | 4.5 | 3.8 |
Short-term Investments | ||
Net Investment Income [Line Items] | ||
Investment income | 1.2 | 1.6 |
Loans to Policyholders | ||
Net Investment Income [Line Items] | ||
Investment income | 5.5 | 5.6 |
Real Estate | ||
Net Investment Income [Line Items] | ||
Investment income | 2.4 | 2.5 |
Investment expenses | 2.1 | 2.6 |
Other | ||
Net Investment Income [Line Items] | ||
Investment income | 4.7 | 4.2 |
Investment expenses | $ 6.7 | $ 6.6 |
Investments - Net Realized Gain
Investments - Net Realized Gains on Sales of Investments (Details) - Fixed Maturities - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net Investment Income [Line Items] | ||
Gains on Sales | $ 13.2 | $ 15.9 |
Losses on Sales | $ (1.1) | $ (1.1) |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Inputs (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | $ 7,479.4 | $ 7,605.9 |
Equity securities | 897.4 | 858.5 |
Investments in Fixed Maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 7,605.9 | |
U.S. Government and Government Agencies and Authorities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 532.4 | 585.3 |
States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 1,667.9 | 1,589.5 |
Foreign Governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 4.8 | 5.2 |
Bonds and Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 4,270.8 | 4,425.4 |
Redeemable Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 7 | 7.5 |
Collateralized Loan Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 782.9 | 767.7 |
Other Mortgage- and Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 213.6 | 225.3 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible debt at fair value | 42.6 | 39.9 |
Total | 8,419.4 | 8,504.3 |
Fair Value, Measurements, Recurring | Investments in Fixed Maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 7,479.4 | 7,605.9 |
Fair Value, Measurements, Recurring | U.S. Government and Government Agencies and Authorities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 532.4 | 585.3 |
Fair Value, Measurements, Recurring | States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 1,667.9 | 1,589.5 |
Fair Value, Measurements, Recurring | Foreign Governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 4.8 | 5.2 |
Fair Value, Measurements, Recurring | Bonds and Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 4,270.8 | 4,425.4 |
Fair Value, Measurements, Recurring | Redeemable Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 7 | |
Fair Value, Measurements, Recurring | Collateralized Loan Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 782.9 | 767.7 |
Fair Value, Measurements, Recurring | Other Mortgage- and Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 213.6 | 225.3 |
Fair Value, Measurements, Recurring | Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 897.4 | 858.5 |
Fair Value, Measurements, Recurring | Exchange Traded Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 522.5 | 496.4 |
Fair Value, Measurements, Recurring | Limited Liability Companies and Limited Partnerships | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 308.9 | 292.2 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible debt at fair value | 0 | 0 |
Total | 665.1 | 639.5 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Investments in Fixed Maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 133 | 134 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government and Government Agencies and Authorities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 133 | 134 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign Governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Bonds and Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Redeemable Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Redeemable Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized Loan Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Mortgage- and Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 532.1 | 505.5 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Exchange Traded Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 522.5 | 496.4 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Limited Liability Companies and Limited Partnerships | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible debt at fair value | 42.6 | 39.9 |
Total | 7,016.1 | 7,123.4 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Investments in Fixed Maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 6,917.2 | 7,022.7 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government and Government Agencies and Authorities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 399.4 | 451.3 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 1,667.9 | 1,589.5 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign Governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 4.8 | 5.2 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Bonds and Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 3,856.3 | 3,992.4 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Redeemable Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1.3 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Redeemable Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 1.3 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Collateralized Loan Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 782.9 | 767.7 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other Mortgage- and Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 204.6 | 215.3 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 56.3 | 60.8 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Exchange Traded Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Limited Liability Companies and Limited Partnerships | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible debt at fair value | 0 | 0 |
Total | 429.3 | 449.2 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Investments in Fixed Maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 429.2 | 449.2 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Government and Government Agencies and Authorities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign Governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Bonds and Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 414.5 | 433 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Redeemable Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 6.2 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Redeemable Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 5.7 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Collateralized Loan Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Other Mortgage- and Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 9 | 10 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0.1 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Exchange Traded Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Limited Liability Companies and Limited Partnerships | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Finance, Insurance and Real Estate | Fair Value, Measurements, Recurring | Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 38.6 | 43.7 |
Finance, Insurance and Real Estate | Fair Value, Measurements, Recurring | Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 8.5 | 10.4 |
Finance, Insurance and Real Estate | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Finance, Insurance and Real Estate | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 6.8 | 8.7 |
Finance, Insurance and Real Estate | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 38.6 | 43.7 |
Finance, Insurance and Real Estate | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 1.7 | 1.7 |
Finance, Insurance and Real Estate | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Finance, Insurance and Real Estate | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Other Industries | Fair Value, Measurements, Recurring | Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 16 | 15.4 |
Other Industries | Fair Value, Measurements, Recurring | Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 2.9 | 0.4 |
Other Industries | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Other Industries | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 2.8 | 0.4 |
Other Industries | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 16 | 15.4 |
Other Industries | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | |
Other Industries | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Other Industries | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0.1 | 0 |
Measured at Net Asset Value | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible debt at fair value | 0 | 0 |
Total | 308.9 | 292.2 |
Measured at Net Asset Value | Fair Value, Measurements, Recurring | Investments in Fixed Maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 0 | 0 |
Measured at Net Asset Value | Fair Value, Measurements, Recurring | U.S. Government and Government Agencies and Authorities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 0 | 0 |
Measured at Net Asset Value | Fair Value, Measurements, Recurring | States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 0 | 0 |
Measured at Net Asset Value | Fair Value, Measurements, Recurring | Foreign Governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 0 | 0 |
Measured at Net Asset Value | Fair Value, Measurements, Recurring | Bonds and Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 0 | 0 |
Measured at Net Asset Value | Fair Value, Measurements, Recurring | Redeemable Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 7.5 | |
Available-for-sale Securities | 0 | |
Measured at Net Asset Value | Fair Value, Measurements, Recurring | Redeemable Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 0 | |
Measured at Net Asset Value | Fair Value, Measurements, Recurring | Collateralized Loan Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 0 | 0 |
Measured at Net Asset Value | Fair Value, Measurements, Recurring | Other Mortgage- and Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities at fair value | 0 | 0 |
Measured at Net Asset Value | Fair Value, Measurements, Recurring | Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 308.9 | 292.2 |
Measured at Net Asset Value | Fair Value, Measurements, Recurring | Exchange Traded Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Measured at Net Asset Value | Fair Value, Measurements, Recurring | Limited Liability Companies and Limited Partnerships | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 308.9 | 292.2 |
Measured at Net Asset Value | Finance, Insurance and Real Estate | Fair Value, Measurements, Recurring | Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Measured at Net Asset Value | Finance, Insurance and Real Estate | Fair Value, Measurements, Recurring | Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Measured at Net Asset Value | Other Industries | Fair Value, Measurements, Recurring | Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Measured at Net Asset Value | Other Industries | Fair Value, Measurements, Recurring | Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfers out of Level 3 | $ 0.6 | $ 557.7 |
Limited Liability Companies and Limited Partnerships | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unfunded commitments | $ 124.1 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information for Level 3 Inputs (Details) - Market Yield - Significant Unobservable Inputs (Level 3) $ in Millions | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Senior Debt | Measurement Input, Discount Rate | Non-investment-grade | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.009 | 0.024 |
Senior Debt | Measurement Input, Discount Rate | Non-investment-grade | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.193 | 0.234 |
Senior Debt | Measurement Input, Discount Rate | Non-investment-grade | Weighted-average Yield | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.097 | 0.095 |
Junior Debt | Measurement Input, Discount Rate | Non-investment-grade | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.022 | 0.031 |
Junior Debt | Measurement Input, Discount Rate | Non-investment-grade | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.279 | 0.279 |
Junior Debt | Measurement Input, Discount Rate | Non-investment-grade | Weighted-average Yield | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.145 | 0.137 |
Private Placement | Investment-grade | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Fair Value | $ 251.7 | $ 246.7 |
Private Placement | Measurement Input, Discount Rate | Investment-grade | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Alternative investment, measurement input | 0.009 | 0.014 |
Private Placement | Measurement Input, Discount Rate | Investment-grade | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Alternative investment, measurement input | 0.120 | 0.130 |
Private Placement | Measurement Input, Discount Rate | Investment-grade | Weighted-average Yield | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Alternative investment, measurement input | 0.034 | 0.038 |
Senior Debt | Non-investment-grade | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Fair Value | $ 95.4 | $ 111.1 |
Junior Debt | Non-investment-grade | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Fair Value | 59.1 | 64.6 |
Other | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Fair Value | 23 | 26.8 |
Investments in Fixed Maturities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Fair Value | $ 429.2 | $ 449.2 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Inputs Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Year | $ 449.2 | $ 1,044.2 |
Total Gains (Losses): | ||
Included in Condensed Consolidated Statement of Operations | (1.1) | (3) |
Included in Other Comprehensive Income (Loss) | (5) | (34.8) |
Purchases | 17.8 | 81.4 |
Settlements | 0 | 0 |
Sales | (31.1) | (44.8) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (0.6) | (557.7) |
Balance at End of Period | 429.2 | 485.3 |
Bonds and Notes | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Year | 433 | 409.1 |
Total Gains (Losses): | ||
Included in Condensed Consolidated Statement of Operations | (1.1) | (2.7) |
Included in Other Comprehensive Income (Loss) | (3.7) | (24.8) |
Purchases | 17.8 | 27.2 |
Settlements | 0 | 0 |
Sales | (30.9) | (18.2) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (0.6) | 0 |
Balance at End of Period | 414.5 | 390.6 |
States and Political Subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Year | 0 | 0 |
Total Gains (Losses): | ||
Included in Condensed Consolidated Statement of Operations | 0 | 0 |
Included in Other Comprehensive Income (Loss) | 0 | 0.1 |
Purchases | 0 | 0.6 |
Settlements | 0 | 0 |
Sales | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance at End of Period | 0 | 0.7 |
Redeemable Preferred Stocks | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Year | 6.2 | 6.7 |
Total Gains (Losses): | ||
Included in Condensed Consolidated Statement of Operations | 0 | |
Included in Other Comprehensive Income (Loss) | (0.5) | |
Purchases | 0 | |
Settlements | 0 | |
Sales | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Balance at End of Period | 5.7 | 6.7 |
Collateralized Loan Obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Year | 0 | 618.2 |
Total Gains (Losses): | ||
Included in Condensed Consolidated Statement of Operations | 0 | (0.3) |
Included in Other Comprehensive Income (Loss) | 0 | (9.5) |
Purchases | 0 | 53.6 |
Settlements | 0 | 0 |
Sales | 0 | (26.4) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | (557.7) |
Balance at End of Period | 0 | 77.9 |
Other Mortgage- and Asset-backed | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Year | 10 | 10.2 |
Total Gains (Losses): | ||
Included in Condensed Consolidated Statement of Operations | 0 | 0 |
Included in Other Comprehensive Income (Loss) | (0.8) | (0.6) |
Purchases | 0 | 0 |
Settlements | 0 | 0 |
Sales | (0.2) | (0.2) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance at End of Period | $ 9 | $ 9.4 |
Fair Value Measurements - Balan
Fair Value Measurements - Balance Sheet Grouping (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Carrying Value | ||
Loans to Policyholders | $ 295.1 | $ 297.9 |
Short-term Investments at Cost which Approximates Fair Value | 196.9 | 875.4 |
Mortgage Loans | 73.2 | 54.6 |
Long-term Debt | 1,122.6 | 1,172.8 |
Policyholder Obligations | 466.5 | 467 |
Fair Value | ||
Short-term Investments | 196.9 | 875.4 |
Long-term Debt | 1,213.3 | 1,247.8 |
Federal Home Loan Bank of Chicago | ||
Fair Value | ||
Policyholder Obligations | 407.5 | 407.8 |
Loans to Policyholders | ||
Fair Value | ||
Loans | 295.1 | 297.9 |
Mortgage Loans | ||
Fair Value | ||
Loans | 73.2 | 54.6 |
United Insurance Company of America | FHLB Funding Agreements | Federal Home Loan Bank of Chicago | ||
Carrying Value | ||
Policyholder Obligations | $ 407.5 | $ 407.8 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Income Tax Expense (Benefit) | $ (1,600,000) | $ 13,700,000 | |
Other Assets | 556,000,000 | $ 575,900,000 | |
Variable Interest Entity, Not Primary Beneficiary | |||
Schedule of Equity Method Investments [Line Items] | |||
Variable Interest Entity, Funding Investment Commitment, Funding | 48,500,000 | 20,000,000 | |
Distribution of Accumulated Earnings of Equity Method Limited Liability Investments | 0 | 0 | |
Income (Loss) from Equity Method Investments | (15,400,000) | 0 | |
Income Tax Credits and Adjustments | 28,400,000 | 3,600,000 | |
Income Tax Expense (Benefit) | 200,000 | $ (400,000) | |
Cash and Cash Equivalents, at Carrying Value | 7,200,000 | ||
Property, Plant and Equipment, Net | 54,400,000 | ||
Other Assets | 600,000 | ||
Assets | 62,200,000 | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 54,400,000 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income - Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Balance at Beginning of Period | $ 4,563.4 | ||
Balance at End of Period | 4,339.1 | $ 4,563.4 | |
Reclassification Adjustment for Amounts Included in Net Income | |||
Reclassification Adjustment for Amounts Included in Net Income | (9.8) | $ (3.9) | |
Income Tax Benefit (Expense) | 2.1 | 0.8 | |
Net of Taxes | (7.7) | (3.1) | |
Changes in Net Unrecognized Postretirement Benefit Costs | |||
Net Unrecognized Postretirement Benefit Costs | 0.3 | 0.7 | |
Income Tax Benefit (Expense) | 0.5 | (0.2) | |
Net of Taxes | 0.8 | 0.5 | |
Changes in Gain (Loss) on Cash Flow Hedges | |||
Gain on Cash Flow Hedges | 0.1 | 0.1 | |
Income Tax Benefit (Expense) | 0 | 0 | |
Net of Taxes | 0.1 | 0.1 | |
Total Other Comprehensive Income (Loss) Before Income Taxes | (365.7) | (204) | |
Total Income Tax Benefit (Expense) | 75.7 | 42.8 | |
Other Comprehensive Income (Loss), Net of Taxes | (290) | (161.2) | |
Net Income | 123.2 | 64 | |
Income Tax Benefit (Expense) | 1.6 | (13.7) | |
Impairment Losses | (4) | (12) | |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | (45.7) | ||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | (2.3) | ||
Reclassification out of Accumulated Other Comprehensive Income | |||
Changes in Gain (Loss) on Cash Flow Hedges | |||
Net Income | 6.8 | 2.4 | |
No Credit Losses Recognized in Condensed Consolidated Statements of Income | |||
Changes in Net Unrealized Gains (Losses) on Investment Securities: | |||
Changes in Net Unrealized Gains (Losses) on Investment Securities | (354.2) | (198) | |
Income Tax Benefit (Expense) | 72.7 | 41.6 | |
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, after Tax | (281.5) | (156.4) | |
Credit Losses Recognized in Condensed Consolidated Statements of Income | |||
Changes in Net Unrealized Gains (Losses) on Investment Securities: | |||
Changes in Net Unrealized Gains (Losses) on Investment Securities | (2.1) | (2.9) | |
Income Tax Benefit (Expense) | 0.4 | 0.6 | |
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, after Tax | (1.7) | (2.3) | |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Balance at Beginning of Period | 730.6 | ||
Other Comprehensive Income (Loss) Before Reclassification Adjustment, Net of Tax | (281.5) | ||
Reclassification Adjustment for Amounts Included in Net Income, Net of Tax | (7.7) | ||
Other Comprehensive Income (Loss), Net of Tax | (289.2) | ||
Balance at End of Period | 441.4 | 730.6 | |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income | |||
Changes in Gain (Loss) on Cash Flow Hedges | |||
Net Income | 7.7 | 3.1 | |
Income Tax Benefit (Expense) | (2.1) | (0.8) | |
Net Realized Gains on Sales of Investments | 13.8 | 15.9 | |
Impairment Losses | (4) | (12) | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 9.8 | 3.9 | |
Accumulated Other-than-Temporary Impairment Attributable to Parent [Member] | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Balance at Beginning of Period | (2.1) | ||
Other Comprehensive Income (Loss) Before Reclassification Adjustment, Net of Tax | (1.7) | ||
Reclassification Adjustment for Amounts Included in Net Income, Net of Tax | 0 | ||
Other Comprehensive Income (Loss), Net of Tax | (1.7) | ||
Balance at End of Period | (3.8) | (2.1) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Other Comprehensive Income (Loss) Before Reclassification Adjustment, Net of Tax | 0.8 | ||
Other Comprehensive Income (Loss), Net of Tax | 0.8 | ||
Balance at End of Period | (44.9) | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income | |||
Changes in Gain (Loss) on Cash Flow Hedges | |||
Net Income | (0.8) | (0.6) | |
Interest and Other Expenses | (0.3) | (0.7) | |
Income Tax Benefit (Expense) | (0.5) | 0.1 | |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Other Comprehensive Income (Loss) Before Reclassification Adjustment, Net of Tax | 0.1 | ||
Other Comprehensive Income (Loss), Net of Tax | 0.1 | ||
Balance at End of Period | (2.2) | ||
Accumulated Other Comprehensive Income | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Balance at Beginning of Period | 680.5 | ||
Other Comprehensive Income (Loss) Before Reclassification Adjustment, Net of Tax | (282.3) | ||
Reclassification Adjustment for Amounts Included in Net Income, Net of Tax | (7.7) | ||
Other Comprehensive Income (Loss), Net of Tax | (290) | ||
Balance at End of Period | 390.5 | $ 680.5 | |
Changes in Gain (Loss) on Cash Flow Hedges | |||
Other Comprehensive Income (Loss), Net of Taxes | $ (290) | $ (161.2) |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||
Impairment Losses | $ (4) | $ (12) |
Income Tax Benefit (Expense) | 1.6 | (13.7) |
Net Income | 123.2 | 64 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||
Net Income | 6.8 | 2.4 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest and Other Expenses | (0.1) | (0.1) |
Income Tax Benefit (Expense) | 0 | 0 |
Net Income | $ (0.1) | $ (0.1) |
Stockholders_ Equity - Narrativ
Stockholders’ Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Jun. 30, 2020 | May 06, 2020 | Aug. 06, 2014 | |
Class of Stock [Line Items] | ||||||
Remaining authorized repurchase amount | $ 133.3 | |||||
Repurchases of common stock | $ 47.1 | $ 101.2 | ||||
Average cost per share (in dollars per share) | $ 79.36 | $ 67.98 | ||||
Weighted-average Remaining Lease Term - Operating Leases | 6 years 7 months 6 days | 7 years | ||||
Weighted-average Discount Rate - Finance Leases | 4.00% | 4.00% | ||||
Weighted-average Discount Rate - Operating Leases | 4.00% | 3.80% | ||||
Value of additional shares authorized to be repurchased | $ 200 | |||||
Employee Stock Purchase Plan | Employee Stock Option | ||||||
Class of Stock [Line Items] | ||||||
Number of exercisable options | 1,300,000 | |||||
Shares issued under employee stock purchase plan (in shares) | 14,878 | 13,214 | ||||
Price per share (in dollars per share) | $ 67.76 | $ 63.21 | ||||
Compensation costs | $ 0.2 | $ 0.1 | ||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Remaining authorized repurchase amount | $ 286.2 | $ 333.3 | ||||
Repurchases of common stock (in shares) | 600,000 | 1,500,000 | ||||
Repurchases of common stock | $ 0 | $ 0.1 | ||||
Weighted-average Remaining Lease Term - Finance Leases | 6 months | 1 year 4 months 24 days |
Pension Benefits and Postreti_3
Pension Benefits and Postretirement Benefits Other Than Pensions - Narrative (Details) | 3 Months Ended |
Mar. 31, 2021employees | |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Number of participants and beneficiaries | 3,175 |
Percentage of Compensation, Defined Benefit Plan Employee Contribution | 3.00% |
Postretirement Benefits Other than Pensions | |
Defined Benefit Plan Disclosure [Line Items] | |
Number of retired employees covered | 575 |
Number of active employees covered | 500 |
Pension Benefits and Postreti_4
Pension Benefits and Postretirement Benefits Other Than Pensions - Pension Income (Details) - Pension Plans - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Interest Cost on Projected Benefit Obligation | $ 1.8 | $ 4.5 |
Expected Return on Plan Assets | (2.3) | (7.3) |
Amortization of Net Actuarial Loss | 0.7 | 1.5 |
Total Pension (Benefit) Expense | $ 0.2 | $ (1.3) |
Pension Benefits and Postreti_5
Pension Benefits and Postretirement Benefits Other Than Pensions - Components of OPEB Benefits (Details) - Postretirement Benefits Other than Pensions - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service Cost | $ 0.1 | $ 0.1 |
Interest Cost on Accumulated Postretirement Benefit Obligation | 0 | 0.1 |
Amortization of Prior Service Credit | (0.3) | (0.3) |
Amortization of Net Gain | (0.4) | (0.5) |
Total Pension (Benefit) Expense | $ (0.6) | $ (0.6) |
Policyholder Contract Liabili_3
Policyholder Contract Liabilities - Policyholder Contract Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Policyholder Obligations | $ 466.5 | $ 467 |
FHLB Funding Agreements | United Insurance Company of America | Federal Home Loan Bank of Chicago | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Policyholder Obligations | 407.5 | 407.8 |
Other | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Policyholder Obligations | $ 59 | $ 59.2 |
Policyholder Contract Liabili_4
Policyholder Contract Liabilities - Narrative (Details) - United Insurance Company of America - Federal Home Loan Bank of Chicago $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Federal Home Loan Bank, amount of advances | $ 60.5 |
Payments of FHLBank borrowings | $ 60.8 |
Policyholder Contract Liabili_5
Policyholder Contract Liabilities - Supplemental Financial Information (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Policyholder Obligations | $ 466.5 | $ 467 |
Federal Home Loan Bank of Chicago | United Insurance Company of America | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Fair Value of Collateral Pledged | 510.5 | 530.5 |
FHLB of Chicago Common Stock Owned at Cost | 11.8 | 11.8 |
Federal Home Loan Bank of Chicago | United Insurance Company of America | FHLB Funding Agreements | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Policyholder Obligations | $ 407.5 | $ 407.8 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Mar. 16, 2021 | Jun. 04, 2019 | Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Sep. 22, 2020 | Jul. 05, 2019 | Jul. 02, 2018 | Jun. 08, 2018 | Feb. 28, 2015 |
Debt Instrument [Line Items] | |||||||||||
Long-term Debt | $ 1,122,600,000 | $ 1,122,600,000 | $ 1,172,800,000 | ||||||||
Interest and other expenses | 11,100,000 | $ 7,500,000 | |||||||||
Interest paid, including capitalized interest, operating and investing activities | 21,700,000 | $ 17,100,000 | |||||||||
Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of Long-term Debt | $ 50,000,000 | ||||||||||
Secured Debt | Term Loan due July 5, 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | ||||||||||
Long-term Debt | 0 | 0 | 49,900,000 | $ 49,900,000 | |||||||
Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term Debt | 448,900,000 | 448,900,000 | 448,800,000 | ||||||||
Senior Notes | 5.000% Senior Notes due September 19, 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term Debt | $ 277,900,000 | $ 277,900,000 | 278,300,000 | ||||||||
Stated interest rate | 5.00% | ||||||||||
Senior Notes | 5.000% Senior Notes due September 19, 2022 | Infinity Property and Casualty Corporation | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of debt | $ 275,000,000 | ||||||||||
Business combination, liabilities assumed, long-term debt | 282,100,000 | ||||||||||
Unamortized premium | $ 7,100,000 | ||||||||||
Effective interest rate | 4.36% | ||||||||||
Senior Notes | 4.350% Senior Notes due February 15, 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 4.35% | 4.35% | |||||||||
Long-term debt, gross | $ 450,000,000 | $ 450,000,000 | |||||||||
Face amount of debt | $ 250,000,000 | ||||||||||
Increase in senior notes | 200,000,000 | ||||||||||
Senior Notes | 2.400% Senior Notes due September 30, 2030 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term Debt | 395,800,000 | 395,800,000 | $ 395,800,000 | ||||||||
Stated interest rate | 2.40% | ||||||||||
Long-term debt, gross | 400,000,000 | 400,000,000 | |||||||||
Effective interest rate | 2.52% | ||||||||||
Revolving Credit Facility | Notes Payable under Revolving Credit Agreement | Second Amended and Restated Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | 400,000,000 | $ 300,000,000 | |||||||||
Increase in revolving credit borrowing capacity | 100,000,000 | ||||||||||
Debt issuance costs | 100,000 | ||||||||||
Remaining unamortized costs | $ 800,000 | ||||||||||
Line of credit facility, amount outstanding | $ 0 | $ 0 |
Debt - Long Term Debt (Details)
Debt - Long Term Debt (Details) - USD ($) $ in Millions | Mar. 16, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 22, 2020 | Jul. 05, 2019 | Jun. 04, 2019 | Jul. 02, 2018 |
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 1,122.6 | $ 1,172.8 | |||||
Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of Long-term Debt | $ 50 | ||||||
Secured Debt | Term Loan due July 5, 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 0 | 49.9 | $ 49.9 | ||||
Line of credit facility, maximum borrowing capacity | $ 50 | ||||||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 448.9 | 448.8 | |||||
Senior Notes | 5.000% Senior Notes due September 19, 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 277.9 | 278.3 | |||||
Stated interest rate | 5.00% | ||||||
Senior Notes | 4.350% Senior Notes due February 15, 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 4.35% | ||||||
Senior Notes | 2.400% Senior Notes due September 30, 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 395.8 | $ 395.8 | |||||
Stated interest rate | 2.40% |
Leases - Narrative (Details)
Leases - Narrative (Details) | Mar. 31, 2021 |
Minimum | Building | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 1 year |
Minimum | Equipment | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 1 year |
Maximum | Building | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 15 years |
Maximum | Equipment | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, term of contract | 5 years |
Leases - Right of Use Assets an
Leases - Right of Use Assets and Liabilities (Details) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating Lease Right-of-Use Assets | $ 66.5 | $ 68.6 |
Operating Lease Liabilities | $ 87.6 | $ 89.6 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Lease Cost | ||
Amortization of Right-of-Use Assets - Finance Leases | $ 0.1 | $ 0.1 |
Operating Lease Cost | 5.1 | 5.6 |
Short-Term Lease Cost | 0.9 | 0 |
Total Lease Cost | $ 6.1 | $ 5.7 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating Cash Flows from Operating Lease (Fixed Payments) | $ 5.4 | $ 5.3 |
Operating Cash Flows from Operating Lease (Liability Reduction) | 4.6 | 4.7 |
Financing Cash Flows from Finance Leases | 0.1 | 0.1 |
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities | $ 2.3 | $ 11.3 |
Leases - Lease Weighted Average
Leases - Lease Weighted Average (Details) | Mar. 31, 2021 | Mar. 31, 2020 |
Leases [Abstract] | ||
Weighted-average Remaining Lease Term - Operating Leases | 6 years 7 months 6 days | 7 years |
Weighted-average Discount Rate - Finance Leases | 4.00% | 4.00% |
Weighted-average Discount Rate - Operating Leases | 4.00% | 3.80% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Under Finance and Operating Leases (Details) $ in Millions | Mar. 31, 2021USD ($) |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Remainder of 2021 | $ 0.1 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 and Thereafter | 0 |
Total Future Payments | 0.1 |
Less Imputed Interest | 0 |
Present Value of Minimum Lease Payments | 0.1 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Remainder of 2021 | 17.5 |
2022 | 22 |
2023 | 19.3 |
2024 | 13.9 |
2025 | 9.1 |
2026 and Thereafter | 24.2 |
Total Future Payments | 106 |
Less Imputed Interest | $ 18.4 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 0 | |
Income taxes paid, net | $ 30,100,000 | $ 100,000 |
Subsequent Events (Details)
Subsequent Events (Details) - American Access Casualty Company $ in Millions | Nov. 23, 2020USD ($) | Mar. 31, 2021USD ($)agent |
Subsequent Event [Line Items] | ||
Direct Premiums Written | $ | $ 350 | |
Business Combination, Consideration Transferred | $ | $ 370 | |
Number Of Captive Agents | agent | 110 | |
Number Of Independent Agents | agent | 600 |