Fair Value (Tables)
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3 Months Ended |
Mar. 31, 2026 |
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| Fair Value Disclosures [Abstract] |
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| Fair Values of Financial Instruments |
The estimated fair values of the financial instruments were as follows:
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March 31, 2026 |
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December 31, 2025 |
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Carrying |
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Fair |
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Carrying |
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Fair |
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(in millions) |
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Value |
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Value |
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Value |
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Value |
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Financial Assets carried at: |
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Fair Value through Accumulated Other Comprehensive Loss: |
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Fixed maturities |
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$ |
9,976.2 |
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$ |
9,976.2 |
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$ |
9,536.5 |
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$ |
9,536.5 |
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Fair Value through Net Income: |
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Equity securities |
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188.2 |
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188.2 |
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184.8 |
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184.8 |
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Other investments |
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80.0 |
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80.0 |
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80.9 |
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80.9 |
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Amortized Cost/Cost: |
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Other investments |
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256.3 |
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250.5 |
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282.8 |
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274.5 |
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Cash and cash equivalents |
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243.5 |
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243.5 |
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1,122.7 |
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1,122.7 |
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Total financial instruments |
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$ |
10,744.2 |
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$ |
10,738.4 |
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$ |
11,207.7 |
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$ |
11,199.4 |
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Financial Liabilities carried at: |
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Amortized Cost: |
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Debt |
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$ |
843.8 |
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$ |
818.8 |
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$ |
1,218.3 |
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$ |
1,206.6 |
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| Fair Value, Investment Assets Measured on Recurring Basis |
The following tables provide, for each hierarchy level, the Company’s investment assets that were measured at fair value on a recurring basis.
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March 31, 2026 |
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(in millions) |
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Total |
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Level 1 |
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Level 2 |
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Level 3 |
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Fixed maturities: |
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U.S. Treasury and government agencies |
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$ |
438.7 |
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$ |
324.4 |
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$ |
114.3 |
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$ |
— |
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Foreign governments |
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2.9 |
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— |
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2.9 |
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— |
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Municipals |
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893.2 |
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— |
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886.1 |
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7.1 |
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Corporates |
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4,348.1 |
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— |
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4,348.1 |
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— |
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Residential mortgage-backed, U.S. agency backed |
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1,841.7 |
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— |
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1,841.7 |
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— |
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Residential mortgage-backed, non-agency |
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482.6 |
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— |
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482.6 |
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— |
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Commercial mortgage-backed |
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854.9 |
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— |
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850.1 |
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4.8 |
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Other asset-backed |
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1,114.1 |
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— |
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1,114.1 |
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— |
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Total fixed maturities |
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9,976.2 |
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324.4 |
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9,639.9 |
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11.9 |
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Equity securities |
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188.2 |
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167.6 |
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— |
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20.6 |
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Other investments |
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16.9 |
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— |
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13.5 |
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3.4 |
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Total investment assets at fair value |
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$ |
10,181.3 |
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$ |
492.0 |
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$ |
9,653.4 |
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$ |
35.9 |
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December 31, 2025 |
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(in millions) |
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Total |
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Level 1 |
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Level 2 |
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Level 3 |
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Fixed maturities: |
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U.S. Treasury and government agencies |
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$ |
455.5 |
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$ |
331.1 |
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$ |
124.4 |
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$ |
— |
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Foreign governments |
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2.7 |
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— |
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2.7 |
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— |
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Municipals |
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847.7 |
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— |
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840.3 |
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7.4 |
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Corporates |
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4,253.5 |
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— |
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4,253.5 |
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— |
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Residential mortgage-backed, U.S. agency backed |
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1,903.2 |
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— |
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1,903.2 |
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— |
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Residential mortgage-backed, non-agency |
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518.6 |
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— |
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518.6 |
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— |
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Commercial mortgage-backed |
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589.9 |
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— |
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585.0 |
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4.9 |
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Other asset-backed |
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965.4 |
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— |
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965.4 |
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— |
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Total fixed maturities |
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9,536.5 |
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331.1 |
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9,193.1 |
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12.3 |
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Equity securities |
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184.8 |
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164.3 |
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— |
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20.5 |
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Other investments |
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16.8 |
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— |
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13.4 |
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3.4 |
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Total investment assets at fair value |
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$ |
9,738.1 |
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$ |
495.4 |
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$ |
9,206.5 |
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$ |
36.2 |
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| Estimated Fair Values of Financial Instruments Not Carried at Fair Value |
The following tables provide, for each hierarchy level, the Company’s estimated fair values of financial instruments that were not carried at fair value:
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March 31, 2026 |
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(in millions) |
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Total |
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Level 1 |
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Level 2 |
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Level 3 |
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Assets: |
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Cash and cash equivalents |
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$ |
243.5 |
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$ |
243.5 |
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$ |
— |
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$ |
— |
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Other investments |
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250.5 |
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— |
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6.1 |
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244.4 |
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Total financial instruments |
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$ |
494.0 |
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$ |
243.5 |
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$ |
6.1 |
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$ |
244.4 |
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Liabilities: |
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Debt |
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$ |
818.8 |
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$ |
— |
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$ |
818.8 |
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$ |
— |
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December 31, 2025 |
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(in millions) |
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Total |
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Level 1 |
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Level 2 |
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Level 3 |
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Assets: |
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Cash and cash equivalents |
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$ |
1,122.7 |
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$ |
1,122.7 |
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$ |
— |
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$ |
— |
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Other investments |
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274.5 |
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— |
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6.1 |
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268.4 |
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Total financial instruments |
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$ |
1,397.2 |
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$ |
1,122.7 |
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$ |
6.1 |
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$ |
268.4 |
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Liabilities: |
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Debt |
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$ |
1,206.6 |
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$ |
— |
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$ |
1,206.6 |
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$ |
— |
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| Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) |
The following tables provide a reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3).
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Fixed Maturities |
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(in millions) |
Municipals |
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Commercial
mortgage-
backed |
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Total |
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Equities and
Other |
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Total
Assets |
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Three Months Ended March 31, 2026 |
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Balance January 1, 2026 |
$ |
7.4 |
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$ |
4.9 |
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$ |
12.3 |
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$ |
23.9 |
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$ |
36.2 |
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Total gains: |
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Included in net realized and unrealized
investment gains (losses) |
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— |
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— |
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— |
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0.2 |
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0.2 |
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Purchase |
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— |
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— |
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— |
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0.3 |
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0.3 |
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Settlements |
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(0.3 |
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(0.1 |
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(0.4 |
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(0.4 |
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(0.8 |
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Balance March 31, 2026 |
$ |
7.1 |
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$ |
4.8 |
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$ |
11.9 |
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$ |
24.0 |
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$ |
35.9 |
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Three Months Ended March 31, 2025 |
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Balance January 1, 2025 |
$ |
7.6 |
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$ |
5.9 |
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$ |
13.5 |
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$ |
24.7 |
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$ |
38.2 |
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Total gains (losses): |
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Included in net realized and unrealized
investment gains (losses) |
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— |
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— |
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— |
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(0.1 |
) |
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(0.1 |
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Included in other comprehensive income (loss) - changes
in net unrealized gains (losses) on investment securities |
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0.2 |
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0.1 |
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0.3 |
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— |
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0.3 |
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Settlements |
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(0.2 |
) |
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(0.9 |
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(1.1 |
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— |
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(1.1 |
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Balance March 31, 2025 |
$ |
7.6 |
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$ |
5.1 |
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$ |
12.7 |
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$ |
24.6 |
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$ |
37.3 |
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Changes in net unrealized gains (losses) for the period
included in other comprehensive income (loss) for
assets held at the end of the period |
$ |
0.2 |
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$ |
0.1 |
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$ |
0.3 |
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$ |
— |
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$ |
0.3 |
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| Schedule of Additional Information About Significant Unobservable Inputs Used in Fair Valuations of Level 3 |
The following table provides quantitative information about the significant unobservable inputs used by the Company in the fair value measurements of Level 3 assets. A valuation of $11.6 million for an equity security based on a dealer quote for which there was a lack of transparency as to inputs used to develop the valuation has been excluded.
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March 31, 2026 |
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December 31, 2025 |
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Valuation |
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Significant |
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Fair |
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Range |
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Fair |
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Range |
(in millions) |
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Technique |
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Unobservable Inputs |
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Value |
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(Wtd Average) |
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Value |
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(Wtd Average) |
Fixed maturities: |
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Municipals |
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Discounted
cash flow |
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Discount for:
Small issue size |
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$ |
7.1 |
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6.8 - 6.8% |
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$ |
7.4 |
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6.8 - 6.8% |
Commercial
mortgage-backed |
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Discounted
cash flow |
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Discount for:
Small issue size
Lease structure |
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4.8 |
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5.0% (5.0%)
0.3% (0.3%) |
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4.9 |
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5.0% (5.0%)
0.3% (0.3%) |
Equity securities |
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Market
comparables |
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Net tangible asset |
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1.4 |
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N/A |
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1.5 |
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N/A |
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Internal price based on financing round |
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Discount for:
Market liquidity |
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7.6 |
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27.0% (27.0%) |
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7.3 |
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27.0% (27.0%) |
Other |
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Discounted
cash flow |
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Discount rate |
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3.4 |
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18.6% (18.6%) |
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3.4 |
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18.6% (18.6%) |
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