Fair Value (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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| Fair Value Disclosures [Abstract] |
|
| Fair Values of Financial Instruments |
The estimated fair values of the financial instruments were as follows:
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June 30, 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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$ |
10,061.1 |
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$ |
10,061.1 |
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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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|
203.3 |
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203.3 |
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184.8 |
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184.8 |
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Other investments |
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|
78.1 |
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78.1 |
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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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239.2 |
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232.2 |
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282.8 |
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274.5 |
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Cash and cash equivalents |
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266.1 |
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266.1 |
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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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$ |
10,847.8 |
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$ |
10,840.8 |
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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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$ |
844.0 |
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$ |
827.8 |
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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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June 30, 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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$ |
434.9 |
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$ |
321.2 |
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$ |
113.7 |
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$ |
— |
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Foreign governments |
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17.3 |
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— |
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17.3 |
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— |
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Municipals |
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1,003.1 |
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— |
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996.4 |
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6.7 |
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Corporates |
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4,515.2 |
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— |
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4,515.2 |
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— |
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Residential mortgage-backed, U.S. agency backed |
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1,771.6 |
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— |
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1,771.6 |
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— |
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Residential mortgage-backed, non-agency |
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464.4 |
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— |
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464.4 |
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— |
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Commercial mortgage-backed |
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802.0 |
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— |
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797.3 |
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4.7 |
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Other asset-backed |
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1,052.6 |
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— |
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1,052.6 |
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— |
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Total fixed maturities |
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10,061.1 |
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321.2 |
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9,728.5 |
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11.4 |
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Equity securities |
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203.3 |
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183.0 |
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— |
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20.3 |
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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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$ |
10,281.3 |
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$ |
504.2 |
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$ |
9,742.0 |
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$ |
35.1 |
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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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June 30, 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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$ |
266.1 |
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$ |
266.1 |
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$ |
— |
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$ |
— |
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Other investments |
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|
232.2 |
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|
— |
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|
6.1 |
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|
226.1 |
|
Total financial instruments |
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$ |
498.3 |
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$ |
266.1 |
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$ |
6.1 |
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$ |
226.1 |
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Liabilities: |
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|
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|
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Debt |
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$ |
827.8 |
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$ |
— |
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$ |
827.8 |
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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 |
|
Equities and
Other |
|
Total
Assets |
|
Three Months Ended June 30, 2026 |
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Balance April 1, 2026 |
$ |
7.1 |
|
$ |
4.8 |
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$ |
11.9 |
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$ |
24.0 |
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$ |
35.9 |
|
Total losses included in net realized and unrealized
investment gains (losses) |
|
— |
|
|
— |
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|
— |
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|
(0.1 |
) |
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(0.1 |
) |
Issuance |
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— |
|
|
— |
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|
— |
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|
0.1 |
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|
0.1 |
|
Settlements |
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(0.4 |
) |
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(0.1 |
) |
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(0.5 |
) |
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(0.3 |
) |
|
(0.8 |
) |
Balance June 30, 2026 |
$ |
6.7 |
|
$ |
4.7 |
|
$ |
11.4 |
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$ |
23.7 |
|
$ |
35.1 |
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Three Months Ended June 30, 2025 |
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Balance April 1, 2025 |
$ |
7.6 |
|
$ |
5.1 |
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$ |
12.7 |
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$ |
24.6 |
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$ |
37.3 |
|
Total gains: |
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Included in net realized and unrealized
investment gains (losses) |
|
— |
|
|
— |
|
|
— |
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|
0.9 |
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|
0.9 |
|
Included in other comprehensive income (loss) - changes
in net unrealized gains (losses) on investment securities |
|
— |
|
|
0.1 |
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|
0.1 |
|
|
— |
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|
0.1 |
|
Settlements |
|
(0.1 |
) |
|
(0.1 |
) |
|
(0.2 |
) |
|
— |
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|
(0.2 |
) |
Balance June 30, 2025 |
$ |
7.5 |
|
$ |
5.1 |
|
$ |
12.6 |
|
$ |
25.5 |
|
$ |
38.1 |
|
Changes in net unrealized gains (losses) for the period
included in other comprehensive income (loss) for
assets held at the end of the period |
$ |
— |
|
$ |
0.1 |
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$ |
0.1 |
|
$ |
— |
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$ |
0.1 |
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Fixed Maturities |
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(in millions) |
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Municipals |
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Commercial
mortgage-
backed |
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Total |
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Equities and
Other |
|
Total
Assets |
|
Six Months Ended June 30, 2026 |
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Balance January 1, 2026 |
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$ |
7.4 |
|
$ |
4.9 |
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$ |
12.3 |
|
$ |
23.9 |
|
$ |
36.2 |
|
Total gains included in net realized and unrealized
investment gains (losses) |
|
|
— |
|
|
— |
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|
— |
|
|
0.1 |
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|
0.1 |
|
Purchase |
|
|
— |
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|
— |
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|
— |
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|
0.3 |
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|
0.3 |
|
Issuance |
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|
— |
|
|
— |
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|
— |
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|
0.1 |
|
|
0.1 |
|
Settlements |
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|
(0.7 |
) |
|
(0.2 |
) |
|
(0.9 |
) |
|
(0.7 |
) |
|
(1.6 |
) |
Balance June 30, 2026 |
|
$ |
6.7 |
|
$ |
4.7 |
|
$ |
11.4 |
|
$ |
23.7 |
|
$ |
35.1 |
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Six Months Ended June 30, 2025 |
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Balance January 1, 2025 |
|
$ |
7.6 |
|
$ |
5.9 |
|
$ |
13.5 |
|
$ |
24.7 |
|
$ |
38.2 |
|
Total gains: |
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|
|
|
|
|
|
|
|
|
Included in net realized and unrealized
investment gains (losses) |
|
|
— |
|
|
— |
|
|
— |
|
|
0.8 |
|
|
0.8 |
|
Included in other comprehensive income (loss) - changes
in net unrealized gains (losses) on investment securities |
|
|
0.2 |
|
|
0.2 |
|
|
0.4 |
|
|
— |
|
|
0.4 |
|
Settlements |
|
|
(0.3 |
) |
|
(1.0 |
) |
|
(1.3 |
) |
|
— |
|
|
(1.3 |
) |
Balance June 30, 2025 |
|
$ |
7.5 |
|
$ |
5.1 |
|
$ |
12.6 |
|
$ |
25.5 |
|
$ |
38.1 |
|
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 |
|
$ |
0.2 |
|
$ |
0.4 |
|
$ |
— |
|
$ |
0.4 |
|
|
| 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. Valuation of $11.3 million for equity securities based on dealer quotes for which there was lack of transparency as to inputs used to develop the valuation have been excluded.
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June 30, 2026 |
|
December 31, 2025 |
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Valuation |
|
Significant |
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|
Fair |
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|
Range |
|
Fair |
|
|
Range |
(in millions) |
|
Technique |
|
Unobservable Inputs |
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|
Value |
|
|
(Wtd Average) |
|
Value |
|
|
(Wtd Average) |
Fixed maturities: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
Municipals |
|
Discounted
cash flow |
|
Discount for:
Small issue size |
|
|
$ |
6.7 |
|
|
6.8 - 6.8% |
|
$ |
7.4 |
|
|
6.8 - 6.8% |
Commercial
mortgage-backed |
|
Discounted
cash flow |
|
Discount for:
Small issue size
Lease structure |
|
|
|
4.7 |
|
|
5.0% (5.0%)
0.3% (0.3%) |
|
|
4.9 |
|
|
5.0% (5.0%)
0.3% (0.3%) |
Equity securities |
|
Market
comparables |
|
Net tangible asset |
|
|
1.4 |
|
|
N/A |
|
|
1.5 |
|
|
N/A |
|
|
Internal price based on financing round |
|
Discount for:
Market liquidity |
|
|
7.6 |
|
|
27.0% (27.0%) |
|
|
7.3 |
|
|
27.0% (27.0%) |
Other |
|
Discounted
cash flow |
|
Discount rate |
|
|
3.4 |
|
|
18.6% (18.6%) |
|
|
3.4 |
|
|
18.6% (18.6%) |
|