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ý
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Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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¨
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Ohio
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34-0963169
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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6300 Wilson Mills Road, Mayfield Village, Ohio
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44143
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
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ý
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Accelerated filer
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¨
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Non-accelerated filer
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¨
(Do not check if a smaller reporting company)
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Smaller reporting company
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¨
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Emerging growth company
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¨
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Three Months
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Nine Months
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||||||||||||||||
Periods Ended September 30,
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2018
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|
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2017
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|
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% Change
|
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2018
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|
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2017
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% Change
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||||
(millions — except per share amounts)
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|
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||||||||
Revenues
|
|
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||||||||
Net premiums earned
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$
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7,930.5
|
|
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$
|
6,544.0
|
|
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21
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|
$
|
22,738.7
|
|
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$
|
18,884.0
|
|
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20
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Investment income
|
218.1
|
|
|
142.9
|
|
|
53
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|
576.5
|
|
|
410.9
|
|
|
40
|
||||
Net realized gains (losses) on securities:
|
|
|
|
|
|
|
|
|
|
|
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||||||||
Net realized gains (losses) on security sales
|
108.4
|
|
|
19.2
|
|
|
465
|
|
205.8
|
|
|
116.8
|
|
|
76
|
||||
Net holding period gains (losses) on securities
|
95.8
|
|
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(0.9
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)
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NM
|
|
(5.9
|
)
|
|
0.3
|
|
|
NM
|
||||
Net impairment losses recognized in earnings
|
(22.1
|
)
|
|
(43.0
|
)
|
|
(49)
|
|
(33.2
|
)
|
|
(57.8
|
)
|
|
(43)
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||||
Total net realized gains (losses) on securities
|
182.1
|
|
|
(24.7
|
)
|
|
NM
|
|
166.7
|
|
|
59.3
|
|
|
181
|
||||
Fees and other revenues
|
122.6
|
|
|
96.3
|
|
|
27
|
|
342.4
|
|
|
270.3
|
|
|
27
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||||
Service revenues
|
42.5
|
|
|
33.3
|
|
|
28
|
|
119.6
|
|
|
94.5
|
|
|
27
|
||||
Other gains (losses)
|
0
|
|
|
0
|
|
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NM
|
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0
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|
|
0.2
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|
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(100)
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||||
Total revenues
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8,495.8
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|
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6,791.8
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|
|
25
|
|
23,943.9
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|
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19,719.2
|
|
|
21
|
||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Losses and loss adjustment expenses
|
5,523.1
|
|
|
5,050.5
|
|
|
9
|
|
15,769.2
|
|
|
13,928.8
|
|
|
13
|
||||
Policy acquisition costs
|
662.7
|
|
|
540.1
|
|
|
23
|
|
1,889.7
|
|
|
1,557.2
|
|
|
21
|
||||
Other underwriting expenses
|
1,095.9
|
|
|
877.7
|
|
|
25
|
|
3,123.0
|
|
|
2,568.3
|
|
|
22
|
||||
Investment expenses
|
5.8
|
|
|
5.8
|
|
|
0
|
|
18.0
|
|
|
18.0
|
|
|
0
|
||||
Service expenses
|
35.8
|
|
|
28.9
|
|
|
24
|
|
102.1
|
|
|
81.8
|
|
|
25
|
||||
Interest expense
|
42.0
|
|
|
37.4
|
|
|
12
|
|
120.5
|
|
|
117.6
|
|
|
2
|
||||
Total expenses
|
7,365.3
|
|
|
6,540.4
|
|
|
13
|
|
21,022.5
|
|
|
18,271.7
|
|
|
15
|
||||
Net Income
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes
|
1,130.5
|
|
|
251.4
|
|
|
350
|
|
2,921.4
|
|
|
1,447.5
|
|
|
102
|
||||
Provision for income taxes
|
200.3
|
|
|
36.6
|
|
|
447
|
|
560.2
|
|
|
429.7
|
|
|
30
|
||||
Net income
|
930.2
|
|
|
214.8
|
|
|
333
|
|
2,361.2
|
|
|
1,017.8
|
|
|
132
|
||||
Net (income) loss attributable to noncontrolling interest (NCI)
|
(1.8
|
)
|
|
9.2
|
|
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(120)
|
|
(10.6
|
)
|
|
(1.9
|
)
|
|
458
|
||||
Net income attributable to Progressive
|
$
|
928.4
|
|
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$
|
224.0
|
|
|
314
|
|
$
|
2,350.6
|
|
|
$
|
1,015.9
|
|
|
131
|
Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
|
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||||||||
Changes in:
|
|
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|
|
|
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||||||||
Total net unrealized gains (losses) on securities
|
$
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(39.0
|
)
|
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$
|
75.5
|
|
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(152)
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|
$
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(243.6
|
)
|
|
$
|
300.5
|
|
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(181)
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Net unrealized losses on forecasted transactions
|
0.2
|
|
|
0.1
|
|
|
100
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|
0.6
|
|
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(5.6
|
)
|
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(111)
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||||
Foreign currency translation adjustment
|
0
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|
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0.6
|
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(100)
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0
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|
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0.8
|
|
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(100)
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||||
Other comprehensive income (loss)
|
(38.8
|
)
|
|
76.2
|
|
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(151)
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|
(243.0
|
)
|
|
295.7
|
|
|
(182)
|
||||
Other comprehensive (income) loss attributable to NCI
|
0.4
|
|
|
(0.7
|
)
|
|
(157)
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|
5.0
|
|
|
(2.9
|
)
|
|
(272)
|
||||
Comprehensive income attributable to Progressive
|
$
|
890.0
|
|
|
$
|
299.5
|
|
|
197
|
|
$
|
2,112.6
|
|
|
$
|
1,308.7
|
|
|
61
|
Computation of Per Share Earnings Available to Progressive Common Shareholders
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Progressive
|
$
|
928.4
|
|
|
$
|
224.0
|
|
|
314
|
|
$
|
2,350.6
|
|
|
$
|
1,015.9
|
|
|
131
|
Less: Preferred share dividends
|
6.7
|
|
|
0
|
|
|
NM
|
|
14.6
|
|
|
0
|
|
|
NM
|
||||
Net income available to common shareholders
|
$
|
921.7
|
|
|
$
|
224.0
|
|
|
311
|
|
$
|
2,336.0
|
|
|
$
|
1,015.9
|
|
|
130
|
Average common shares outstanding - Basic
|
582.7
|
|
|
581.3
|
|
|
0
|
|
582.2
|
|
|
580.7
|
|
|
0
|
||||
Net effect of dilutive stock-based compensation
|
3.9
|
|
|
4.3
|
|
|
(9)
|
|
4.5
|
|
|
5.0
|
|
|
(10)
|
||||
Total average equivalent common shares - Diluted
|
586.6
|
|
|
585.6
|
|
|
0
|
|
586.7
|
|
|
585.7
|
|
|
0
|
||||
Basic: Earnings per common share
|
$
|
1.58
|
|
|
$
|
0.39
|
|
|
310
|
|
$
|
4.01
|
|
|
$
|
1.75
|
|
|
129
|
Diluted: Earnings per common share
|
$
|
1.57
|
|
|
$
|
0.38
|
|
|
311
|
|
$
|
3.98
|
|
|
$
|
1.73
|
|
|
130
|
Dividends declared per common share
1
|
$
|
0
|
|
|
$
|
0
|
|
|
NM
|
|
$
|
0
|
|
|
$
|
0
|
|
|
NM
|
|
September 30,
|
|
December 31,
|
||||||||
(millions)
|
2018
|
|
|
2017
|
|
|
2017
|
|
|||
Assets
|
|
|
|
|
|
||||||
Available-for-sale securities, at fair value:
|
|
|
|
|
|
||||||
Fixed maturities (amortized cost: $25,963.4, $18,583.1, and $20,209.9)
|
$
|
25,642.7
|
|
|
$
|
18,660.0
|
|
|
$
|
20,201.7
|
|
Short-term investments (amortized cost: $2,809.7, $4,311.5, and $2,869.4)
|
2,809.7
|
|
|
4,311.5
|
|
|
2,869.4
|
|
|||
Total available-for-sale securities
|
28,452.4
|
|
|
22,971.5
|
|
|
23,071.1
|
|
|||
Equity securities, at fair value:
|
|
|
|
|
|
||||||
Nonredeemable preferred stocks (cost: $758.9, $700.6, and $698.6)
|
840.9
|
|
|
813.7
|
|
|
803.8
|
|
|||
Common equities (cost: $1,135.0, $1,485.5, and $1,499.0)
|
3,057.3
|
|
|
3,209.5
|
|
|
3,399.8
|
|
|||
Total equity securities
|
3,898.2
|
|
|
4,023.2
|
|
|
4,203.6
|
|
|||
Total investments
|
32,350.6
|
|
|
26,994.7
|
|
|
27,274.7
|
|
|||
Cash and cash equivalents
|
121.9
|
|
|
224.9
|
|
|
265.0
|
|
|||
Restricted cash
|
0.8
|
|
|
31.4
|
|
|
10.3
|
|
|||
Total cash, cash equivalents, and restricted cash
|
122.7
|
|
|
256.3
|
|
|
275.3
|
|
|||
Accrued investment income
|
159.5
|
|
|
113.0
|
|
|
119.7
|
|
|||
Premiums receivable, net of allowance for doubtful accounts of $230.1, $189.3, and $210.9
|
6,776.6
|
|
|
5,519.9
|
|
|
5,422.5
|
|
|||
Reinsurance recoverables, including $114.1, $76.4, and $103.3 on paid losses and loss adjustment expenses
|
2,490.5
|
|
|
2,701.1
|
|
|
2,273.4
|
|
|||
Prepaid reinsurance premiums
|
379.6
|
|
|
211.7
|
|
|
203.3
|
|
|||
Deferred acquisition costs
|
962.7
|
|
|
782.6
|
|
|
780.5
|
|
|||
Property and equipment, net of accumulated depreciation of $1,004.6, $908.4, and $940.6
|
1,139.3
|
|
|
1,129.4
|
|
|
1,119.6
|
|
|||
Goodwill
|
452.7
|
|
|
452.7
|
|
|
452.7
|
|
|||
Intangible assets, net of accumulated amortization of $229.7, $157.7, and $175.7
|
312.6
|
|
|
384.6
|
|
|
366.6
|
|
|||
Other assets
|
396.9
|
|
|
386.6
|
|
|
412.9
|
|
|||
Total assets
|
$
|
45,543.7
|
|
|
$
|
38,932.6
|
|
|
$
|
38,701.2
|
|
Liabilities
|
|
|
|
|
|
||||||
Unearned premiums
|
$
|
11,009.2
|
|
|
$
|
9,005.3
|
|
|
$
|
8,903.5
|
|
Loss and loss adjustment expense reserves
|
14,620.8
|
|
|
13,353.3
|
|
|
13,086.9
|
|
|||
Net deferred income taxes
|
53.5
|
|
|
201.5
|
|
|
135.0
|
|
|||
Accounts payable, accrued expenses, and other liabilities
|
3,924.1
|
|
|
3,272.7
|
|
|
3,481.0
|
|
|||
Debt
1
|
3,859.9
|
|
|
3,312.2
|
|
|
3,306.3
|
|
|||
Total liabilities
|
33,467.5
|
|
|
29,145.0
|
|
|
28,912.7
|
|
|||
Redeemable noncontrolling interest (NCI)
2
|
217.4
|
|
|
498.2
|
|
|
503.7
|
|
|||
Shareholders
’
Equity
|
|
|
|
|
|
||||||
Serial Preferred Shares (authorized 20.0)
|
|
|
|
|
|
||||||
Serial Preferred Shares, Series B, no par value (cumulative, liquidation preference $1,000 per share) (authorized, issued, and outstanding 0.5, 0, and 0)
|
493.9
|
|
|
0
|
|
|
0
|
|
|||
Common shares, $1.00 par value (authorized 900.0; issued 797.5, including treasury shares of 214.4, 215.9, and 215.8)
|
583.1
|
|
|
581.6
|
|
|
581.7
|
|
|||
Paid-in capital
|
1,443.4
|
|
|
1,365.1
|
|
|
1,389.2
|
|
|||
Retained earnings
|
9,602.1
|
|
|
6,116.5
|
|
|
6,031.7
|
|
|||
Accumulated other comprehensive income (loss):
|
|
|
|
|
|
||||||
Net unrealized gains (losses) on securities
|
(249.9
|
)
|
|
1,240.1
|
|
|
1,295.0
|
|
|||
Net unrealized losses on forecasted transactions
|
(17.4
|
)
|
|
(15.0
|
)
|
|
(14.8
|
)
|
|||
Foreign currency translation adjustment
|
0
|
|
|
(0.3
|
)
|
|
0
|
|
|||
Accumulated other comprehensive (income) loss attributable to NCI
|
3.6
|
|
|
1.4
|
|
|
2.0
|
|
|||
Total accumulated other comprehensive income (loss) attributable to Progressive
|
(263.7
|
)
|
|
1,226.2
|
|
|
1,282.2
|
|
|||
Total shareholders’ equity
|
11,858.8
|
|
|
9,289.4
|
|
|
9,284.8
|
|
|||
Total liabilities, redeemable NCI, and shareholders’ equity
|
$
|
45,543.7
|
|
|
$
|
38,932.6
|
|
|
$
|
38,701.2
|
|
Nine Months Ended September 30,
|
|
|
|
||||
(millions — except per share amounts)
|
2018
|
|
|
2017
|
|
||
Serial Preferred Shares, No Par Value
|
|
|
|
||||
Balance, Beginning of period
|
$
|
0
|
|
|
$
|
0
|
|
Issuance of Serial Preferred Shares, Series B
|
493.9
|
|
|
0
|
|
||
Balance, End of period
|
$
|
493.9
|
|
|
$
|
0
|
|
Common Shares, $1.00 Par Value
|
|
|
|
||||
Balance, Beginning of period
|
$
|
581.7
|
|
|
$
|
579.9
|
|
Treasury shares purchased
|
(1.4
|
)
|
|
(1.5
|
)
|
||
Net restricted equity awards issued/vested
|
2.8
|
|
|
3.2
|
|
||
Balance, End of period
|
$
|
583.1
|
|
|
$
|
581.6
|
|
Paid-In Capital
|
|
|
|
||||
Balance, Beginning of period
|
$
|
1,389.2
|
|
|
$
|
1,303.4
|
|
Treasury shares purchased
|
(3.3
|
)
|
|
(3.4
|
)
|
||
Net restricted equity awards issued/vested
|
(2.8
|
)
|
|
(3.2
|
)
|
||
Amortization of equity-based compensation
|
53.3
|
|
|
74.3
|
|
||
Reinvested dividends on restricted stock units
|
(0.8
|
)
|
|
0.3
|
|
||
Adjustment to carrying amount of redeemable noncontrolling interest
|
7.8
|
|
|
(6.3
|
)
|
||
Balance, End of period
|
$
|
1,443.4
|
|
|
$
|
1,365.1
|
|
Retained Earnings
|
|
|
|
||||
Balance, Beginning of period
|
$
|
6,031.7
|
|
|
$
|
5,140.4
|
|
Net income attributable to Progressive
|
2,350.6
|
|
|
1,015.9
|
|
||
Treasury shares purchased
|
(74.0
|
)
|
|
(57.2
|
)
|
||
Cash dividends declared on Serial Preferred Shares, Series B ($27.024 per share and $0)
|
(13.5
|
)
|
|
0
|
|
||
Reinvested dividends on restricted stock units
|
0.8
|
|
|
(0.3
|
)
|
||
Cumulative effect of change in accounting principle
1
|
1,300.2
|
|
|
0
|
|
||
Reclassification of disproportionate tax effects
1
|
4.3
|
|
|
0
|
|
||
Other, net
|
2.0
|
|
|
17.7
|
|
||
Balance, End of period
|
$
|
9,602.1
|
|
|
$
|
6,116.5
|
|
Accumulated Other Comprehensive Income (Loss) Attributable to Progressive
|
|
|
|
||||
Balance, Beginning of period
|
$
|
1,282.2
|
|
|
$
|
933.4
|
|
Attributable to noncontrolling interest
|
1.6
|
|
|
(2.9
|
)
|
||
Other comprehensive income
|
(243.0
|
)
|
|
295.7
|
|
||
Cumulative effect of change in accounting principle
1
|
(1,300.2
|
)
|
|
0
|
|
||
Reclassification of disproportionate tax effects
1
|
(4.3
|
)
|
|
0
|
|
||
Balance, End of period
|
$
|
(263.7
|
)
|
|
$
|
1,226.2
|
|
Total Shareholders’ Equity
|
$
|
11,858.8
|
|
|
$
|
9,289.4
|
|
Nine Months Ended September 30,
|
2018
|
|
|
2017
|
|
||
(millions)
|
|
|
|
||||
Cash Flows From Operating Activities
|
|
|
|
||||
Net income
|
$
|
2,361.2
|
|
|
$
|
1,017.8
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation
|
137.8
|
|
|
126.7
|
|
||
Amortization of intangible assets
|
54.0
|
|
|
48.2
|
|
||
Net amortization of fixed-income securities
|
29.7
|
|
|
67.5
|
|
||
Amortization of equity-based compensation
|
54.0
|
|
|
76.6
|
|
||
Net realized (gains) losses on securities
|
(166.7
|
)
|
|
(59.3
|
)
|
||
Net (gains) losses on disposition of property and equipment
|
7.4
|
|
|
5.3
|
|
||
Other (gains) losses
|
0
|
|
|
(0.2
|
)
|
||
Changes in:
|
|
|
|
||||
Premiums receivable
|
(1,354.1
|
)
|
|
(1,010.3
|
)
|
||
Reinsurance recoverables
|
(217.1
|
)
|
|
(816.1
|
)
|
||
Prepaid reinsurance premiums
|
(176.3
|
)
|
|
(41.2
|
)
|
||
Deferred acquisition costs
|
(182.2
|
)
|
|
(131.4
|
)
|
||
Income taxes
|
25.0
|
|
|
(111.2
|
)
|
||
Unearned premiums
|
2,105.7
|
|
|
1,536.7
|
|
||
Loss and loss adjustment expense reserves
|
1,533.9
|
|
|
1,985.1
|
|
||
Accounts payable, accrued expenses, and other liabilities
|
1,032.8
|
|
|
622.1
|
|
||
Other, net
|
(43.6
|
)
|
|
(93.2
|
)
|
||
Net cash provided by operating activities
|
5,201.5
|
|
|
3,223.1
|
|
||
Cash Flows From Investing Activities
|
|
|
|
||||
Purchases:
|
|
|
|
||||
Fixed maturities
|
(14,430.6
|
)
|
|
(9,623.6
|
)
|
||
Equity securities
|
(234.9
|
)
|
|
(155.2
|
)
|
||
Sales:
|
|
|
|
||||
Fixed maturities
|
4,659.6
|
|
|
3,431.7
|
|
||
Equity securities
|
773.5
|
|
|
150.6
|
|
||
Maturities, paydowns, calls, and other:
|
|
|
|
||||
Fixed maturities
|
3,911.5
|
|
|
3,872.5
|
|
||
Equity securities
|
15.0
|
|
|
50.0
|
|
||
Net sales (purchases) of short-term investments
|
91.9
|
|
|
(721.8
|
)
|
||
Net unsettled security transactions
|
11.0
|
|
|
210.5
|
|
||
Purchases of property and equipment
|
(164.8
|
)
|
|
(109.7
|
)
|
||
Sales of property and equipment
|
8.1
|
|
|
13.8
|
|
||
Acquisition of additional shares of ARX Holding Corp.
|
(296.9
|
)
|
|
0
|
|
||
Acquisition of an insurance company, net of cash acquired
|
0
|
|
|
(18.1
|
)
|
||
Net cash used in investing activities
|
(5,656.6
|
)
|
|
(2,899.3
|
)
|
||
Cash Flows From Financing Activities
|
|
|
|
||||
Net proceeds from issuance of Serial Preferred Shares, Series B
|
493.9
|
|
|
0
|
|
||
Net proceeds from debt issuances
|
589.5
|
|
|
841.1
|
|
||
Payments of debt
|
(37.1
|
)
|
|
(42.8
|
)
|
||
Redemption/reacquisition of subordinated debt
|
0
|
|
|
(635.6
|
)
|
||
Dividends paid to common shareholders
|
(654.9
|
)
|
|
(395.4
|
)
|
||
Dividends paid to preferred shareholders
|
(13.5
|
)
|
|
0
|
|
||
Proceeds from exercise of equity options
|
3.3
|
|
|
0.5
|
|
||
Acquisition of treasury shares for restricted stock tax liabilities
|
(78.3
|
)
|
|
(57.2
|
)
|
||
Acquisition of treasury shares acquired in open market
|
(0.4
|
)
|
|
(4.9
|
)
|
||
Net cash provided by (used in) financing activities
|
302.5
|
|
|
(294.3
|
)
|
||
Effect of exchange rate changes on cash
|
0
|
|
|
0.4
|
|
||
Increase (decrease) in cash, cash equivalents, and restricted cash
|
(152.6
|
)
|
|
29.9
|
|
||
Cash, cash equivalents, and restricted cash
–
January 1
|
275.3
|
|
|
226.4
|
|
||
Cash, cash equivalents, and restricted cash
–
September 30
|
$
|
122.7
|
|
|
$
|
256.3
|
|
($ in millions)
|
Cost
|
|
|
Gross
Unrealized Gains
|
|
|
Gross
Unrealized
Losses
|
|
|
Net
Holding Period Gains
(Losses)
|
|
|
Fair
Value
|
|
|
% of
Total Fair
Value
|
|
|||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S. government obligations
|
$
|
9,942.0
|
|
|
$
|
0
|
|
|
$
|
(189.5
|
)
|
|
$
|
0
|
|
|
$
|
9,752.5
|
|
|
30.2
|
%
|
State and local government obligations
|
1,610.1
|
|
|
1.9
|
|
|
(23.2
|
)
|
|
0
|
|
|
1,588.8
|
|
|
4.9
|
|
|||||
Foreign government obligations
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
Corporate debt securities
|
7,229.1
|
|
|
4.9
|
|
|
(85.2
|
)
|
|
(2.0
|
)
|
|
7,146.8
|
|
|
22.1
|
|
|||||
Residential mortgage-backed securities
|
767.8
|
|
|
7.6
|
|
|
(5.6
|
)
|
|
0
|
|
|
769.8
|
|
|
2.4
|
|
|||||
Commercial mortgage-backed securities
|
2,986.5
|
|
|
3.3
|
|
|
(30.5
|
)
|
|
0
|
|
|
2,959.3
|
|
|
9.1
|
|
|||||
Other asset-backed securities
|
3,205.0
|
|
|
1.4
|
|
|
(13.6
|
)
|
|
0.1
|
|
|
3,192.9
|
|
|
9.9
|
|
|||||
Redeemable preferred stocks
|
222.9
|
|
|
13.2
|
|
|
(1.4
|
)
|
|
(2.1
|
)
|
|
232.6
|
|
|
0.7
|
|
|||||
Total fixed maturities
|
25,963.4
|
|
|
32.3
|
|
|
(349.0
|
)
|
|
(4.0
|
)
|
|
25,642.7
|
|
|
79.3
|
|
|||||
Short-term investments
|
2,809.7
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
2,809.7
|
|
|
8.7
|
|
|||||
Total available-for-sale securities
|
28,773.1
|
|
|
32.3
|
|
|
(349.0
|
)
|
|
(4.0
|
)
|
|
28,452.4
|
|
|
88.0
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Nonredeemable preferred stocks
|
758.9
|
|
|
0
|
|
|
0
|
|
|
82.0
|
|
|
840.9
|
|
|
2.6
|
|
|||||
Common equities
|
1,135.0
|
|
|
0
|
|
|
0
|
|
|
1,922.3
|
|
|
3,057.3
|
|
|
9.4
|
|
|||||
Total equity securities
|
1,893.9
|
|
|
0
|
|
|
0
|
|
|
2,004.3
|
|
|
3,898.2
|
|
|
12.0
|
|
|||||
Total portfolio
1,2
|
$
|
30,667.0
|
|
|
$
|
32.3
|
|
|
$
|
(349.0
|
)
|
|
$
|
2,000.3
|
|
|
$
|
32,350.6
|
|
|
100.0
|
%
|
($ in millions)
|
Cost
|
|
|
Gross
Unrealized Gains
|
|
|
Gross
Unrealized
Losses
|
|
|
Net
Holding Period Gains
(Losses)
|
|
|
Fair
Value
|
|
|
% of
Total Fair
Value
|
|
|||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S. government obligations
|
$
|
4,612.2
|
|
|
$
|
3.0
|
|
|
$
|
(20.2
|
)
|
|
$
|
0
|
|
|
$
|
4,595.0
|
|
|
17.0
|
%
|
State and local government obligations
|
2,332.2
|
|
|
35.0
|
|
|
(3.1
|
)
|
|
0.1
|
|
|
2,364.2
|
|
|
8.7
|
|
|||||
Foreign government obligations
|
24.2
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
24.2
|
|
|
0.1
|
|
|||||
Corporate debt securities
|
5,195.7
|
|
|
32.7
|
|
|
(4.2
|
)
|
|
1.4
|
|
|
5,225.6
|
|
|
19.4
|
|
|||||
Residential mortgage-backed securities
|
947.0
|
|
|
12.2
|
|
|
(3.6
|
)
|
|
0
|
|
|
955.6
|
|
|
3.5
|
|
|||||
Commercial mortgage-backed securities
|
2,763.7
|
|
|
17.0
|
|
|
(12.8
|
)
|
|
0
|
|
|
2,767.9
|
|
|
10.3
|
|
|||||
Other asset-backed securities
|
2,485.6
|
|
|
6.4
|
|
|
(2.0
|
)
|
|
0.2
|
|
|
2,490.2
|
|
|
9.2
|
|
|||||
Redeemable preferred stocks
|
222.5
|
|
|
16.4
|
|
|
(2.0
|
)
|
|
0.4
|
|
|
237.3
|
|
|
0.9
|
|
|||||
Total fixed maturities
|
18,583.1
|
|
|
122.7
|
|
|
(47.9
|
)
|
|
2.1
|
|
|
18,660.0
|
|
|
69.1
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Nonredeemable preferred stocks
|
700.6
|
|
|
120.4
|
|
|
(7.3
|
)
|
|
0
|
|
|
813.7
|
|
|
3.0
|
|
|||||
Common equities
|
1,485.5
|
|
|
1,729.5
|
|
|
(5.5
|
)
|
|
0
|
|
|
3,209.5
|
|
|
11.9
|
|
|||||
Short-term investments
|
4,311.5
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
4,311.5
|
|
|
16.0
|
|
|||||
Total portfolio
1,2
|
$
|
25,080.7
|
|
|
$
|
1,972.6
|
|
|
$
|
(60.7
|
)
|
|
$
|
2.1
|
|
|
$
|
26,994.7
|
|
|
100.0
|
%
|
($ in millions)
|
Cost
|
|
|
Gross
Unrealized Gains
|
|
|
Gross
Unrealized
Losses
|
|
|
Net
Holding Period Gains
(Losses)
|
|
|
Fair
Value
|
|
|
% of
Total Fair
Value
|
|
|||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S. government obligations
|
$
|
6,688.8
|
|
|
$
|
1.1
|
|
|
$
|
(44.0
|
)
|
|
$
|
0
|
|
|
$
|
6,645.9
|
|
|
24.4
|
%
|
State and local government obligations
|
2,285.6
|
|
|
20.7
|
|
|
(9.3
|
)
|
|
0.1
|
|
|
2,297.1
|
|
|
8.4
|
|
|||||
Foreign government obligations
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
Corporate debt securities
|
4,997.2
|
|
|
14.8
|
|
|
(14.4
|
)
|
|
0.1
|
|
|
4,997.7
|
|
|
18.3
|
|
|||||
Residential mortgage-backed securities
|
828.8
|
|
|
11.3
|
|
|
(3.4
|
)
|
|
0
|
|
|
836.7
|
|
|
3.1
|
|
|||||
Commercial mortgage-backed securities
|
2,760.1
|
|
|
11.8
|
|
|
(13.3
|
)
|
|
0
|
|
|
2,758.6
|
|
|
10.1
|
|
|||||
Other asset-backed securities
|
2,454.5
|
|
|
4.5
|
|
|
(4.5
|
)
|
|
0.2
|
|
|
2,454.7
|
|
|
9.0
|
|
|||||
Redeemable preferred stocks
|
194.9
|
|
|
17.8
|
|
|
(1.5
|
)
|
|
(0.2
|
)
|
|
211.0
|
|
|
0.8
|
|
|||||
Total fixed maturities
|
20,209.9
|
|
|
82.0
|
|
|
(90.4
|
)
|
|
0.2
|
|
|
20,201.7
|
|
|
74.1
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Nonredeemable preferred stocks
|
698.6
|
|
|
114.0
|
|
|
(8.8
|
)
|
|
0
|
|
|
803.8
|
|
|
2.9
|
|
|||||
Common equities
|
1,499.0
|
|
|
1,901.0
|
|
|
(0.2
|
)
|
|
0
|
|
|
3,399.8
|
|
|
12.5
|
|
|||||
Short-term investments
|
2,869.4
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
2,869.4
|
|
|
10.5
|
|
|||||
Total portfolio
1,2
|
$
|
25,276.9
|
|
|
$
|
2,097.0
|
|
|
$
|
(99.4
|
)
|
|
$
|
0.2
|
|
|
$
|
27,274.7
|
|
|
100.0
|
%
|
|
September 30,
|
|
|
||||||||
(millions)
|
2018
|
|
|
2017
|
|
|
December 31, 2017
|
|
|||
Fixed maturities:
|
|
|
|
|
|
||||||
State and local government obligations
|
$
|
3.6
|
|
|
$
|
2.4
|
|
|
$
|
6.1
|
|
Corporate debt securities
|
159.7
|
|
|
114.9
|
|
|
99.8
|
|
|||
Other asset-backed securities
|
5.0
|
|
|
7.1
|
|
|
6.7
|
|
|||
Redeemable preferred stocks
|
72.0
|
|
|
35.5
|
|
|
30.3
|
|
|||
Total hybrid securities
|
$
|
240.3
|
|
|
$
|
159.9
|
|
|
$
|
142.9
|
|
(millions)
|
Cost
|
|
|
Fair Value
|
|
||
Less than one year
|
$
|
4,192.3
|
|
|
$
|
4,196.4
|
|
One to five years
|
16,545.0
|
|
|
16,315.6
|
|
||
Five to ten years
|
5,123.1
|
|
|
5,028.3
|
|
||
Ten years or greater
|
103.0
|
|
|
102.4
|
|
||
Total
|
$
|
25,963.4
|
|
|
$
|
25,642.7
|
|
|
Total No. of Sec.
|
|
Total
Fair Value |
|
Gross Unrealized Losses
|
|
Less than 12 Months
|
|
12 Months or Greater
|
||||||||||||||||
($ in millions)
|
No. of Sec.
|
|
Fair
Value |
|
Unrealized Losses
|
|
|
No. of Sec.
|
|
Fair
Value |
|
Unrealized Losses
|
|
||||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. government obligations
|
91
|
|
$
|
9,752.5
|
|
$
|
(189.5
|
)
|
39
|
|
$
|
5,025.0
|
|
$
|
(67.2
|
)
|
|
52
|
|
$
|
4,727.5
|
|
$
|
(122.3
|
)
|
State and local government obligations
|
459
|
|
1,394.3
|
|
(23.2
|
)
|
227
|
|
680.5
|
|
(6.4
|
)
|
|
232
|
|
713.8
|
|
(16.8
|
)
|
||||||
Corporate debt securities
|
369
|
|
5,959.2
|
|
(85.2
|
)
|
221
|
|
3,963.9
|
|
(45.3
|
)
|
|
148
|
|
1,995.3
|
|
(39.9
|
)
|
||||||
Residential mortgage-backed securities
|
234
|
|
521.7
|
|
(5.6
|
)
|
44
|
|
325.0
|
|
(0.6
|
)
|
|
190
|
|
196.7
|
|
(5.0
|
)
|
||||||
Commercial mortgage-backed securities
|
151
|
|
2,392.7
|
|
(30.5
|
)
|
80
|
|
1,164.2
|
|
(8.3
|
)
|
|
71
|
|
1,228.5
|
|
(22.2
|
)
|
||||||
Other asset-backed securities
|
219
|
|
2,828.6
|
|
(13.6
|
)
|
111
|
|
1,821.8
|
|
(4.0
|
)
|
|
108
|
|
1,006.8
|
|
(9.6
|
)
|
||||||
Redeemable preferred stocks
|
3
|
|
30.8
|
|
(1.4
|
)
|
1
|
|
4.7
|
|
(0.1
|
)
|
|
2
|
|
26.1
|
|
(1.3
|
)
|
||||||
Total fixed maturities
|
1,526
|
|
$
|
22,879.8
|
|
$
|
(349.0
|
)
|
723
|
|
$
|
12,985.1
|
|
$
|
(131.9
|
)
|
|
803
|
|
$
|
9,894.7
|
|
$
|
(217.1
|
)
|
|
Total No. of Sec.
|
|
Total
Fair Value |
|
Gross Unrealized Losses
|
|
Less than 12 Months
|
|
12 Months or Greater
|
||||||||||||||||
($ in millions)
|
No. of Sec.
|
|
Fair
Value |
|
Unrealized Losses
|
|
|
No. of Sec.
|
|
Fair
Value |
|
Unrealized Losses
|
|
||||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. government obligations
|
54
|
|
$
|
3,804.0
|
|
$
|
(20.2
|
)
|
31
|
|
$
|
2,302.2
|
|
$
|
(7.1
|
)
|
|
23
|
|
$
|
1,501.8
|
|
$
|
(13.1
|
)
|
State and local government obligations
|
169
|
|
610.4
|
|
(3.1
|
)
|
40
|
|
141.0
|
|
(0.7
|
)
|
|
129
|
|
469.4
|
|
(2.4
|
)
|
||||||
Corporate debt securities
|
113
|
|
1,523.8
|
|
(4.2
|
)
|
59
|
|
636.0
|
|
(1.1
|
)
|
|
54
|
|
887.8
|
|
(3.1
|
)
|
||||||
Residential mortgage-backed securities
|
191
|
|
341.5
|
|
(3.6
|
)
|
26
|
|
39.2
|
|
(0.1
|
)
|
|
165
|
|
302.3
|
|
(3.5
|
)
|
||||||
Commercial mortgage-backed securities
|
105
|
|
1,588.9
|
|
(12.8
|
)
|
61
|
|
1,073.5
|
|
(4.6
|
)
|
|
44
|
|
515.4
|
|
(8.2
|
)
|
||||||
Other asset-backed securities
|
148
|
|
1,393.2
|
|
(2.0
|
)
|
103
|
|
920.8
|
|
(1.0
|
)
|
|
45
|
|
472.4
|
|
(1.0
|
)
|
||||||
Redeemable preferred stocks
|
2
|
|
21.4
|
|
(2.0
|
)
|
1
|
|
10.9
|
|
0
|
|
|
1
|
|
10.5
|
|
(2.0
|
)
|
||||||
Total fixed maturities
|
782
|
|
9,283.2
|
|
(47.9
|
)
|
321
|
|
5,123.6
|
|
(14.6
|
)
|
|
461
|
|
4,159.6
|
|
(33.3
|
)
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Nonredeemable preferred stocks
|
3
|
|
72.4
|
|
(7.3
|
)
|
0
|
|
0
|
|
0
|
|
|
3
|
|
72.4
|
|
(7.3
|
)
|
||||||
Common equities
|
67
|
|
52.0
|
|
(5.5
|
)
|
62
|
|
49.3
|
|
(4.9
|
)
|
|
5
|
|
2.7
|
|
(0.6
|
)
|
||||||
Total equity securities
|
70
|
|
124.4
|
|
(12.8
|
)
|
62
|
|
49.3
|
|
(4.9
|
)
|
|
8
|
|
75.1
|
|
(7.9
|
)
|
||||||
Total portfolio
|
852
|
|
$
|
9,407.6
|
|
$
|
(60.7
|
)
|
383
|
|
$
|
5,172.9
|
|
$
|
(19.5
|
)
|
|
469
|
|
$
|
4,234.7
|
|
$
|
(41.2
|
)
|
|
Total No. of Sec.
|
|
Total
Fair Value |
|
Gross Unrealized Losses
|
|
Less than 12 Months
|
|
12 Months or Greater
|
||||||||||||||||
($ in millions)
|
No. of Sec.
|
|
Fair
Value |
|
Unrealized Losses
|
|
|
No. of Sec.
|
|
Fair
Value |
|
Unrealized Losses
|
|
||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. government obligations
|
58
|
|
$
|
5,817.0
|
|
$
|
(44.0
|
)
|
41
|
|
$
|
4,869.3
|
|
$
|
(34.6
|
)
|
|
17
|
|
$
|
947.7
|
|
$
|
(9.4
|
)
|
State and local government obligations
|
358
|
|
1,200.3
|
|
(9.3
|
)
|
230
|
|
737.6
|
|
(4.4
|
)
|
|
128
|
|
462.7
|
|
(4.9
|
)
|
||||||
Corporate debt securities
|
222
|
|
2,979.4
|
|
(14.4
|
)
|
171
|
|
2,072.9
|
|
(9.1
|
)
|
|
51
|
|
906.5
|
|
(5.3
|
)
|
||||||
Residential mortgage-backed securities
|
201
|
|
300.9
|
|
(3.4
|
)
|
30
|
|
75.1
|
|
(0.2
|
)
|
|
171
|
|
225.8
|
|
(3.2
|
)
|
||||||
Commercial mortgage-backed securities
|
105
|
|
1,682.3
|
|
(13.3
|
)
|
63
|
|
1,221.2
|
|
(5.9
|
)
|
|
42
|
|
461.1
|
|
(7.4
|
)
|
||||||
Other asset-backed securities
|
197
|
|
1,837.3
|
|
(4.5
|
)
|
134
|
|
1,377.8
|
|
(3.3
|
)
|
|
63
|
|
459.5
|
|
(1.2
|
)
|
||||||
Redeemable preferred stocks
|
2
|
|
21.8
|
|
(1.5
|
)
|
1
|
|
10.8
|
|
(0.1
|
)
|
|
1
|
|
11.0
|
|
(1.4
|
)
|
||||||
Total fixed maturities
|
1,143
|
|
13,839.0
|
|
(90.4
|
)
|
670
|
|
10,364.7
|
|
(57.6
|
)
|
|
473
|
|
3,474.3
|
|
(32.8
|
)
|
||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Nonredeemable preferred stocks
|
4
|
|
127.8
|
|
(8.8
|
)
|
1
|
|
56.5
|
|
(0.5
|
)
|
|
3
|
|
71.3
|
|
(8.3
|
)
|
||||||
Common equities
|
19
|
|
13.4
|
|
(0.2
|
)
|
18
|
|
13.4
|
|
(0.2
|
)
|
|
1
|
|
0
|
|
0
|
|
||||||
Total equity securities
|
23
|
|
141.2
|
|
(9.0
|
)
|
19
|
|
69.9
|
|
(0.7
|
)
|
|
4
|
|
71.3
|
|
(8.3
|
)
|
||||||
Total portfolio
|
1,166
|
|
$
|
13,980.2
|
|
$
|
(99.4
|
)
|
689
|
|
$
|
10,434.6
|
|
$
|
(58.3
|
)
|
|
477
|
|
$
|
3,545.6
|
|
$
|
(41.1
|
)
|
|
September 30,
|
|
December 31,
2017 |
|
|||||||
(millions)
|
2018
|
|
|
2017
|
|
|
|||||
Fixed maturities:
|
|
|
|
|
|
||||||
Residential mortgage-backed securities
|
$
|
(19.7
|
)
|
|
$
|
(19.7
|
)
|
|
$
|
(19.7
|
)
|
Commercial mortgage-backed securities
|
(0.1
|
)
|
|
(0.4
|
)
|
|
(0.3
|
)
|
|||
Total fixed maturities
|
$
|
(19.8
|
)
|
|
$
|
(20.1
|
)
|
|
$
|
(20.0
|
)
|
|
Three Months Ended September 30, 2018
|
||||||||||
|
Mortgage-Backed
|
|
|
||||||||
(millions)
|
Residential
|
|
|
Commercial
|
|
|
Total
|
|
|||
Balance at June 30, 2018
|
$
|
0.3
|
|
|
$
|
0.5
|
|
|
$
|
0.8
|
|
Credit losses for which an OTTI was not previously recognized
|
0
|
|
|
0
|
|
|
0
|
|
|||
Reductions for securities sold/matured
|
0
|
|
|
0
|
|
|
0
|
|
|||
Change in recoveries of future cash flows expected to be collected
1
|
0
|
|
|
0
|
|
|
0
|
|
|||
Balance at September 30, 2018
|
$
|
0.3
|
|
|
$
|
0.5
|
|
|
$
|
0.8
|
|
|
|
|
|
|
|
||||||
|
Nine Months Ended September 30, 2018
|
||||||||||
|
Mortgage-Backed
|
|
|
||||||||
(millions)
|
Residential
|
|
|
Commercial
|
|
|
Total
|
|
|||
Balance at December 31, 2017
|
$
|
0
|
|
|
$
|
0.5
|
|
|
$
|
0.5
|
|
Credit losses for which an OTTI was not previously recognized
|
0
|
|
|
0
|
|
|
0
|
|
|||
Reductions for securities sold/matured
|
0
|
|
|
0
|
|
|
0
|
|
|||
Change in recoveries of future cash flows expected to be collected
1
|
0.3
|
|
|
0
|
|
|
0.3
|
|
|||
Balance at September 30, 2018
|
$
|
0.3
|
|
|
$
|
0.5
|
|
|
$
|
0.8
|
|
|
Three Months Ended September 30, 2017
|
||||||||||
|
Mortgage-Backed
|
|
|
||||||||
(millions)
|
Residential
|
|
|
Commercial
|
|
|
Total
|
|
|||
Balance at June 30, 2017
|
$
|
0.2
|
|
|
$
|
0.1
|
|
|
$
|
0.3
|
|
Credit losses for which an OTTI was not previously recognized
|
0
|
|
|
0.4
|
|
|
0.4
|
|
|||
Reductions for securities sold/matured
|
0
|
|
|
0
|
|
|
0
|
|
|||
Change in recoveries of future cash flows expected to be collected
1
|
0
|
|
|
0
|
|
|
0
|
|
|||
Balance at September 30, 2017
|
$
|
0.2
|
|
|
$
|
0.5
|
|
|
$
|
0.7
|
|
|
|
|
|
|
|
||||||
|
Nine Months Ended September 30, 2017
|
||||||||||
|
Mortgage-Backed
|
|
|
||||||||
(millions)
|
Residential
|
|
|
Commercial
|
|
|
Total
|
|
|||
Balance at December 31, 2016
|
$
|
11.1
|
|
|
$
|
0.4
|
|
|
$
|
11.5
|
|
Credit losses for which an OTTI was not previously recognized
|
0
|
|
|
0.4
|
|
|
0.4
|
|
|||
Reductions for securities sold/matured
|
(10.9
|
)
|
|
(0.3
|
)
|
|
(11.2
|
)
|
|||
Change in recoveries of future cash flows expected to be collected
1
|
0
|
|
|
0
|
|
|
0
|
|
|||
Balance at September 30, 2017
|
$
|
0.2
|
|
|
$
|
0.5
|
|
|
$
|
0.7
|
|
|
Three Months
|
|
Nine Months
|
||||||||||||
(millions)
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
||||
Gross realized gains on security sales
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. government obligations
|
$
|
0.1
|
|
|
$
|
0.9
|
|
|
$
|
1.8
|
|
|
$
|
5.8
|
|
State and local government obligations
|
0.2
|
|
|
4.0
|
|
|
9.4
|
|
|
7.1
|
|
||||
Corporate and other debt securities
|
1.7
|
|
|
5.1
|
|
|
2.1
|
|
|
16.5
|
|
||||
Residential mortgage-backed securities
|
0
|
|
|
2.8
|
|
|
0
|
|
|
23.8
|
|
||||
Commercial mortgage-backed securities
|
0
|
|
|
0
|
|
|
2.0
|
|
|
2.4
|
|
||||
Other asset-backed securities
|
0
|
|
|
0
|
|
|
0.1
|
|
|
0.3
|
|
||||
Redeemable preferred stocks
|
0.2
|
|
|
7.7
|
|
|
4.5
|
|
|
8.0
|
|
||||
Total available-for-sale securities
|
2.2
|
|
|
20.5
|
|
|
19.9
|
|
|
63.9
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Nonredeemable preferred stocks
|
0.1
|
|
|
3.0
|
|
|
3.7
|
|
|
54.6
|
|
||||
Common equities
|
126.8
|
|
|
5.7
|
|
|
265.2
|
|
|
23.0
|
|
||||
Total equity securities
|
126.9
|
|
|
8.7
|
|
|
268.9
|
|
|
77.6
|
|
||||
Subtotal gross realized gains on security sales
|
129.1
|
|
|
29.2
|
|
|
288.8
|
|
|
141.5
|
|
||||
Gross realized losses on security sales
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. government obligations
|
(7.6
|
)
|
|
(1.0
|
)
|
|
(46.4
|
)
|
|
(4.6
|
)
|
||||
State and local government obligations
|
(0.6
|
)
|
|
0
|
|
|
(2.5
|
)
|
|
(0.1
|
)
|
||||
Corporate and other debt securities
|
(3.2
|
)
|
|
(1.8
|
)
|
|
(7.3
|
)
|
|
(4.6
|
)
|
||||
Residential mortgage-backed securities
|
0
|
|
|
(0.1
|
)
|
|
0
|
|
|
(0.4
|
)
|
||||
Commercial mortgage-backed securities
|
0
|
|
|
(0.5
|
)
|
|
(6.3
|
)
|
|
(3.6
|
)
|
||||
Other asset-backed securities
|
(0.1
|
)
|
|
0
|
|
|
(1.1
|
)
|
|
0
|
|
||||
Redeemable preferred stocks
|
0
|
|
|
(6.4
|
)
|
|
0
|
|
|
(6.4
|
)
|
||||
Total available-for-sale securities
|
(11.5
|
)
|
|
(9.8
|
)
|
|
(63.6
|
)
|
|
(19.7
|
)
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Nonredeemable preferred stocks
|
0
|
|
|
(0.1
|
)
|
|
(2.3
|
)
|
|
(5.9
|
)
|
||||
Common equities
|
(9.2
|
)
|
|
(0.2
|
)
|
|
(17.1
|
)
|
|
(0.3
|
)
|
||||
Total equity securities
|
(9.2
|
)
|
|
(0.3
|
)
|
|
(19.4
|
)
|
|
(6.2
|
)
|
||||
Subtotal gross realized losses on security sales
|
(20.7
|
)
|
|
(10.1
|
)
|
|
(83.0
|
)
|
|
(25.9
|
)
|
||||
Net realized gains (losses) on security sales
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. government obligations
|
(7.5
|
)
|
|
(0.1
|
)
|
|
(44.6
|
)
|
|
1.2
|
|
||||
State and local government obligations
|
(0.4
|
)
|
|
4.0
|
|
|
6.9
|
|
|
7.0
|
|
||||
Corporate and other debt securities
|
(1.5
|
)
|
|
3.3
|
|
|
(5.2
|
)
|
|
11.9
|
|
||||
Residential mortgage-backed securities
|
0
|
|
|
2.7
|
|
|
0
|
|
|
23.4
|
|
||||
Commercial mortgage-backed securities
|
0
|
|
|
(0.5
|
)
|
|
(4.3
|
)
|
|
(1.2
|
)
|
||||
Other asset-backed securities
|
(0.1
|
)
|
|
0
|
|
|
(1.0
|
)
|
|
0.3
|
|
||||
Redeemable preferred stocks
|
0.2
|
|
|
1.3
|
|
|
4.5
|
|
|
1.6
|
|
||||
Total available-for-sale securities
|
(9.3
|
)
|
|
10.7
|
|
|
(43.7
|
)
|
|
44.2
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Nonredeemable preferred stocks
|
0.1
|
|
|
2.9
|
|
|
1.4
|
|
|
48.7
|
|
||||
Common equities
|
117.6
|
|
|
5.5
|
|
|
248.1
|
|
|
22.7
|
|
||||
Total equity securities
|
117.7
|
|
|
8.4
|
|
|
249.5
|
|
|
71.4
|
|
||||
Litigation settlements and other gains (losses)
|
0
|
|
|
0.1
|
|
|
0
|
|
|
1.2
|
|
||||
Subtotal net realized gains (losses) on security sales
|
108.4
|
|
|
19.2
|
|
|
205.8
|
|
|
116.8
|
|
||||
Net holding period gains (losses)
|
|
|
|
|
|
|
|
||||||||
Hybrid securities
|
1.3
|
|
|
(0.9
|
)
|
|
(4.2
|
)
|
|
0.3
|
|
||||
Equity securities
|
94.5
|
|
|
0
|
|
|
(1.7
|
)
|
|
0
|
|
||||
Subtotal net holding period gains (losses)
|
95.8
|
|
|
(0.9
|
)
|
|
(5.9
|
)
|
|
0.3
|
|
||||
Other-than-temporary impairment losses
|
|
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage-backed securities
|
0
|
|
|
(0.4
|
)
|
|
0
|
|
|
(0.4
|
)
|
||||
Total fixed maturities
|
0
|
|
|
(0.4
|
)
|
|
0
|
|
|
(0.4
|
)
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Common equities
|
0
|
|
|
(8.9
|
)
|
|
0
|
|
|
(12.5
|
)
|
||||
Subtotal investment other-than-temporary impairment losses
|
0
|
|
|
(9.3
|
)
|
|
0
|
|
|
(12.9
|
)
|
||||
Other asset impairment
|
(22.1
|
)
|
|
(33.7
|
)
|
|
(33.2
|
)
|
|
(44.9
|
)
|
||||
Subtotal other-than-temporary impairment losses
|
(22.1
|
)
|
|
(43.0
|
)
|
|
(33.2
|
)
|
|
(57.8
|
)
|
||||
Total net realized gains (losses) on securities
|
$
|
182.1
|
|
|
$
|
(24.7
|
)
|
|
$
|
166.7
|
|
|
$
|
59.3
|
|
|
Three Months
|
|
Nine Months
|
|
||
(millions)
|
2018
|
|
2018
|
|
||
Total net gains (losses) recognized during the period on equity securities
|
$
|
212.2
|
|
$
|
247.8
|
|
Less: Net gains (losses) recognized on equity securities sold during the period
|
117.7
|
|
249.5
|
|
||
Net holding period gains (losses) recognized during the period on equity securities held at period end
|
$
|
94.5
|
|
$
|
(1.7
|
)
|
|
Three Months
|
|
Nine Months
|
||||||||||
(millions)
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
||||
Available-for-sale securities:
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
||||||||
U.S. government obligations
|
$
|
47.7
|
|
$
|
18.4
|
|
|
$
|
133.4
|
|
$
|
48.1
|
|
State and local government obligations
|
9.0
|
|
12.9
|
|
|
28.1
|
|
39.3
|
|
||||
Foreign government obligations
|
0
|
|
0.1
|
|
|
0
|
|
0.3
|
|
||||
Corporate debt securities
|
62.1
|
|
32.2
|
|
|
150.1
|
|
93.1
|
|
||||
Residential mortgage-backed securities
|
6.9
|
|
8.0
|
|
|
20.4
|
|
27.9
|
|
||||
Commercial mortgage-backed securities
|
24.1
|
|
20.0
|
|
|
65.5
|
|
57.1
|
|
||||
Other asset-backed securities
|
21.2
|
|
12.1
|
|
|
50.9
|
|
33.8
|
|
||||
Redeemable preferred stocks
|
3.3
|
|
2.8
|
|
|
8.8
|
|
9.1
|
|
||||
Total fixed maturities
|
174.3
|
|
106.5
|
|
|
457.2
|
|
308.7
|
|
||||
Short-term investments
|
15.7
|
|
10.6
|
|
|
40.7
|
|
26.4
|
|
||||
Total available-for-sale securities
|
190.0
|
|
117.1
|
|
|
497.9
|
|
335.1
|
|
||||
Equity securities:
|
|
|
|
|
|
||||||||
Nonredeemable preferred stocks
|
11.2
|
|
10.9
|
|
|
32.5
|
|
33.0
|
|
||||
Common equities
|
16.9
|
|
14.9
|
|
|
46.1
|
|
42.8
|
|
||||
Total equity securities
|
28.1
|
|
25.8
|
|
|
78.6
|
|
75.8
|
|
||||
Investment income
|
218.1
|
|
142.9
|
|
|
576.5
|
|
410.9
|
|
||||
Investment expenses
|
(5.8
|
)
|
(5.8
|
)
|
|
(18.0
|
)
|
(18.0
|
)
|
||||
Net investment income
|
$
|
212.3
|
|
$
|
137.1
|
|
|
$
|
558.5
|
|
$
|
392.9
|
|
•
|
Level 1
: Inputs are unadjusted quoted prices in active markets for identical instruments at the measurement date (e.g., U.S. government obligations, which are continually priced on a daily basis, active exchange-traded equity securities, and certain short-term securities).
|
•
|
Level 2
: Inputs (other than quoted prices included within Level 1) that are observable for the instrument either directly or indirectly (e.g., certain corporate and municipal bonds and certain preferred stocks). This includes: (i) quoted prices for similar instruments in active markets, (ii) quoted prices for identical or similar instruments in markets that are not active, (iii) inputs other than quoted prices that are observable for the instruments, and (iv) inputs that are derived principally from or corroborated by observable market data by correlation or other means.
|
•
|
Level 3
: Inputs that are unobservable. Unobservable inputs reflect our subjective evaluation about the assumptions market participants would use in pricing the financial instrument (e.g., certain structured securities and privately held investments).
|
|
Fair Value
|
|
|
||||||||||||||||
(millions)
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
Cost
|
|
|||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government obligations
|
$
|
9,752.5
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
9,752.5
|
|
|
$
|
9,942.0
|
|
State and local government obligations
|
0
|
|
|
1,588.8
|
|
|
0
|
|
|
1,588.8
|
|
|
1,610.1
|
|
|||||
Foreign government obligations
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
Corporate debt securities
|
0
|
|
|
7,146.8
|
|
|
0
|
|
|
7,146.8
|
|
|
7,229.1
|
|
|||||
Subtotal
|
9,752.5
|
|
|
8,735.6
|
|
|
0
|
|
|
18,488.1
|
|
|
18,781.2
|
|
|||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage-backed
|
0
|
|
|
769.8
|
|
|
0
|
|
|
769.8
|
|
|
767.8
|
|
|||||
Commercial mortgage-backed
|
0
|
|
|
2,959.3
|
|
|
0
|
|
|
2,959.3
|
|
|
2,986.5
|
|
|||||
Other asset-backed
|
0
|
|
|
3,192.9
|
|
|
0
|
|
|
3,192.9
|
|
|
3,205.0
|
|
|||||
Subtotal asset-backed securities
|
0
|
|
|
6,922.0
|
|
|
0
|
|
|
6,922.0
|
|
|
6,959.3
|
|
|||||
Redeemable preferred stocks:
|
|
|
|
|
|
|
|
|
|
||||||||||
Financials
|
0
|
|
|
67.8
|
|
|
0
|
|
|
67.8
|
|
|
65.2
|
|
|||||
Utilities
|
0
|
|
|
4.7
|
|
|
0
|
|
|
4.7
|
|
|
4.8
|
|
|||||
Industrials
|
10.1
|
|
|
150.0
|
|
|
0
|
|
|
160.1
|
|
|
152.9
|
|
|||||
Subtotal redeemable preferred stocks
|
10.1
|
|
|
222.5
|
|
|
0
|
|
|
232.6
|
|
|
222.9
|
|
|||||
Total fixed maturities
|
9,762.6
|
|
|
15,880.1
|
|
|
0
|
|
|
25,642.7
|
|
|
25,963.4
|
|
|||||
Short-term investments
|
2,573.4
|
|
|
236.3
|
|
|
0
|
|
|
2,809.7
|
|
|
2,809.7
|
|
|||||
Total available-for-sale securities
|
12,336.0
|
|
|
16,116.4
|
|
|
0
|
|
|
28,452.4
|
|
|
28,773.1
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonredeemable preferred stocks:
|
|
|
|
|
|
|
|
|
|
||||||||||
Financials
|
76.3
|
|
|
724.0
|
|
|
0
|
|
|
800.3
|
|
|
718.9
|
|
|||||
Utilities
|
0
|
|
|
35.6
|
|
|
0
|
|
|
35.6
|
|
|
35.0
|
|
|||||
Industrials
|
0
|
|
|
0
|
|
|
5.0
|
|
|
5.0
|
|
|
5.0
|
|
|||||
Subtotal nonredeemable preferred stocks
|
76.3
|
|
|
759.6
|
|
|
5.0
|
|
|
840.9
|
|
|
758.9
|
|
|||||
Common equities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stocks
|
3,057.0
|
|
|
0
|
|
|
0
|
|
|
3,057.0
|
|
|
1,134.7
|
|
|||||
Other risk investments
|
0
|
|
|
0
|
|
|
0.3
|
|
|
0.3
|
|
|
0.3
|
|
|||||
Subtotal common equities
|
3,057.0
|
|
|
0
|
|
|
0.3
|
|
|
3,057.3
|
|
|
1,135.0
|
|
|||||
Total equity securities
|
3,133.3
|
|
|
759.6
|
|
|
5.3
|
|
|
3,898.2
|
|
|
1,893.9
|
|
|||||
Total portfolio
|
$
|
15,469.3
|
|
|
$
|
16,876.0
|
|
|
$
|
5.3
|
|
|
$
|
32,350.6
|
|
|
$
|
30,667.0
|
|
Debt
|
$
|
0
|
|
|
$
|
3,926.9
|
|
|
$
|
0
|
|
|
$
|
3,926.9
|
|
|
$
|
3,859.9
|
|
|
Fair Value
|
|
|
||||||||||||||||
(millions)
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
Cost
|
|
|||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government obligations
|
$
|
4,595.0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
4,595.0
|
|
|
$
|
4,612.2
|
|
State and local government obligations
|
0
|
|
|
2,364.2
|
|
|
0
|
|
|
2,364.2
|
|
|
2,332.2
|
|
|||||
Foreign government obligations
|
24.2
|
|
|
0
|
|
|
0
|
|
|
24.2
|
|
|
24.2
|
|
|||||
Corporate debt securities
|
0
|
|
|
5,225.6
|
|
|
0
|
|
|
5,225.6
|
|
|
5,195.7
|
|
|||||
Subtotal
|
4,619.2
|
|
|
7,589.8
|
|
|
0
|
|
|
12,209.0
|
|
|
12,164.3
|
|
|||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage-backed
|
0
|
|
|
955.6
|
|
|
0
|
|
|
955.6
|
|
|
947.0
|
|
|||||
Commercial mortgage-backed
|
0
|
|
|
2,767.9
|
|
|
0
|
|
|
2,767.9
|
|
|
2,763.7
|
|
|||||
Other asset-backed
|
0
|
|
|
2,490.2
|
|
|
0
|
|
|
2,490.2
|
|
|
2,485.6
|
|
|||||
Subtotal asset-backed securities
|
0
|
|
|
6,213.7
|
|
|
0
|
|
|
6,213.7
|
|
|
6,196.3
|
|
|||||
Redeemable preferred stocks:
|
|
|
|
|
|
|
|
|
|
||||||||||
Financials
|
0
|
|
|
63.8
|
|
|
0
|
|
|
63.8
|
|
|
61.4
|
|
|||||
Utilities
|
0
|
|
|
31.9
|
|
|
0
|
|
|
31.9
|
|
|
30.5
|
|
|||||
Industrials
|
0
|
|
|
141.6
|
|
|
0
|
|
|
141.6
|
|
|
130.6
|
|
|||||
Subtotal redeemable preferred stocks
|
0
|
|
|
237.3
|
|
|
0
|
|
|
237.3
|
|
|
222.5
|
|
|||||
Total fixed maturities
|
4,619.2
|
|
|
14,040.8
|
|
|
0
|
|
|
18,660.0
|
|
|
18,583.1
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonredeemable preferred stocks:
|
|
|
|
|
|
|
|
|
|
||||||||||
Financials
|
82.2
|
|
|
726.5
|
|
|
0
|
|
|
808.7
|
|
|
695.6
|
|
|||||
Utilities
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
Industrials
|
0
|
|
|
0
|
|
|
5.0
|
|
|
5.0
|
|
|
5.0
|
|
|||||
Subtotal nonredeemable preferred stocks
|
82.2
|
|
|
726.5
|
|
|
5.0
|
|
|
813.7
|
|
|
700.6
|
|
|||||
Common equities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stocks
|
3,209.2
|
|
|
0
|
|
|
0
|
|
|
3,209.2
|
|
|
1,485.2
|
|
|||||
Other risk investments
|
0
|
|
|
0
|
|
|
0.3
|
|
|
0.3
|
|
|
0.3
|
|
|||||
Subtotal common equities
|
3,209.2
|
|
|
0
|
|
|
0.3
|
|
|
3,209.5
|
|
|
1,485.5
|
|
|||||
Total fixed maturities and equity securities
|
7,910.6
|
|
|
14,767.3
|
|
|
5.3
|
|
|
22,683.2
|
|
|
20,769.2
|
|
|||||
Short-term investments
|
3,175.4
|
|
|
1,136.1
|
|
|
0
|
|
|
4,311.5
|
|
|
4,311.5
|
|
|||||
Total portfolio
|
$
|
11,086.0
|
|
|
$
|
15,903.4
|
|
|
$
|
5.3
|
|
|
$
|
26,994.7
|
|
|
$
|
25,080.7
|
|
Debt
|
$
|
0
|
|
|
$
|
3,574.6
|
|
|
$
|
43.3
|
|
|
$
|
3,617.9
|
|
|
$
|
3,312.2
|
|
|
Fair Value
|
|
|
||||||||||||||||
(millions)
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
Cost
|
|
|||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government obligations
|
$
|
6,645.9
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
6,645.9
|
|
|
$
|
6,688.8
|
|
State and local government obligations
|
0
|
|
|
2,297.1
|
|
|
0
|
|
|
2,297.1
|
|
|
2,285.6
|
|
|||||
Foreign government obligations
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
Corporate debt securities
|
0
|
|
|
4,997.7
|
|
|
0
|
|
|
4,997.7
|
|
|
4,997.2
|
|
|||||
Subtotal
|
6,645.9
|
|
|
7,294.8
|
|
|
0
|
|
|
13,940.7
|
|
|
13,971.6
|
|
|||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage-backed
|
0
|
|
|
836.7
|
|
|
0
|
|
|
836.7
|
|
|
828.8
|
|
|||||
Commercial mortgage-backed
|
0
|
|
|
2,758.6
|
|
|
0
|
|
|
2,758.6
|
|
|
2,760.1
|
|
|||||
Other asset-backed
|
0
|
|
|
2,454.7
|
|
|
0
|
|
|
2,454.7
|
|
|
2,454.5
|
|
|||||
Subtotal asset-backed securities
|
0
|
|
|
6,050.0
|
|
|
0
|
|
|
6,050.0
|
|
|
6,043.4
|
|
|||||
Redeemable preferred stocks:
|
|
|
|
|
|
|
|
|
|
||||||||||
Financials
|
0
|
|
|
64.1
|
|
|
0
|
|
|
64.1
|
|
|
61.3
|
|
|||||
Utilities
|
0
|
|
|
11.4
|
|
|
0
|
|
|
11.4
|
|
|
10.1
|
|
|||||
Industrials
|
0
|
|
|
135.5
|
|
|
0
|
|
|
135.5
|
|
|
123.5
|
|
|||||
Subtotal redeemable preferred stocks
|
0
|
|
|
211.0
|
|
|
0
|
|
|
211.0
|
|
|
194.9
|
|
|||||
Total fixed maturities
|
6,645.9
|
|
|
13,555.8
|
|
|
0
|
|
|
20,201.7
|
|
|
20,209.9
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonredeemable preferred stocks:
|
|
|
|
|
|
|
|
|
|
||||||||||
Financials
|
80.6
|
|
|
718.2
|
|
|
0
|
|
|
798.8
|
|
|
693.6
|
|
|||||
Utilities
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
Industrials
|
0
|
|
|
0
|
|
|
5.0
|
|
|
5.0
|
|
|
5.0
|
|
|||||
Subtotal nonredeemable preferred stocks
|
80.6
|
|
|
718.2
|
|
|
5.0
|
|
|
803.8
|
|
|
698.6
|
|
|||||
Common equities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stocks
|
3,399.5
|
|
|
0
|
|
|
0
|
|
|
3,399.5
|
|
|
1,498.7
|
|
|||||
Other risk investments
|
0
|
|
|
0
|
|
|
0.3
|
|
|
0.3
|
|
|
0.3
|
|
|||||
Subtotal common equities
|
3,399.5
|
|
|
0
|
|
|
0.3
|
|
|
3,399.8
|
|
|
1,499.0
|
|
|||||
Total fixed maturities and equity securities
|
10,126.0
|
|
|
14,274.0
|
|
|
5.3
|
|
|
24,405.3
|
|
|
22,407.5
|
|
|||||
Short-term investments
|
1,824.4
|
|
|
1,045.0
|
|
|
0
|
|
|
2,869.4
|
|
|
2,869.4
|
|
|||||
Total portfolio
|
$
|
11,950.4
|
|
|
$
|
15,319.0
|
|
|
$
|
5.3
|
|
|
$
|
27,274.7
|
|
|
$
|
25,276.9
|
|
Debt
|
$
|
0
|
|
|
$
|
3,606.5
|
|
|
$
|
37.1
|
|
|
$
|
3,643.6
|
|
|
$
|
3,306.3
|
|
|
September 30, 2018
|
|
September 30, 2017
|
|
December 31, 2017
|
||||||||||||||||||
(millions)
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
||||||||||||
3.75% Senior Notes due 2021
|
$
|
499.0
|
|
|
$
|
503.9
|
|
|
$
|
498.7
|
|
|
$
|
525.7
|
|
|
$
|
498.8
|
|
|
$
|
520.7
|
|
2.45% Senior Notes due 2027
|
496.4
|
|
|
453.3
|
|
|
496.0
|
|
|
475.3
|
|
|
496.1
|
|
|
477.9
|
|
||||||
6 5/8% Senior Notes due 2029
|
296.3
|
|
|
360.3
|
|
|
296.0
|
|
|
388.3
|
|
|
296.1
|
|
|
382.3
|
|
||||||
6.25% Senior Notes due 2032
|
395.4
|
|
|
481.8
|
|
|
395.3
|
|
|
518.7
|
|
|
395.3
|
|
|
516.9
|
|
||||||
4.35% Senior Notes due 2044
|
346.6
|
|
|
349.7
|
|
|
346.5
|
|
|
379.8
|
|
|
346.5
|
|
|
388.7
|
|
||||||
3.70% Senior Notes due 2045
|
395.3
|
|
|
359.1
|
|
|
395.2
|
|
|
392.6
|
|
|
395.2
|
|
|
402.9
|
|
||||||
4.125% Senior Notes due 2047
|
841.3
|
|
|
828.4
|
|
|
841.2
|
|
|
894.2
|
|
|
841.2
|
|
|
917.1
|
|
||||||
4.20% Senior Notes due 2048
|
589.6
|
|
|
590.4
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
Other debt instruments
|
0
|
|
|
0
|
|
|
43.3
|
|
|
43.3
|
|
|
37.1
|
|
|
37.1
|
|
||||||
Total
|
$
|
3,859.9
|
|
|
$
|
3,926.9
|
|
|
$
|
3,312.2
|
|
|
$
|
3,617.9
|
|
|
$
|
3,306.3
|
|
|
$
|
3,643.6
|
|
|
September 30,
|
||||||
(millions)
|
2018
|
|
2017
|
||||
Balance, Beginning of period
|
$
|
13,086.9
|
|
|
$
|
11,368.0
|
|
Less reinsurance recoverables on unpaid losses
|
2,170.1
|
|
|
1,801.0
|
|
||
Net balance, Beginning of period
|
10,916.8
|
|
|
9,567.0
|
|
||
Incurred related to:
|
|
|
|
||||
Current year
|
15,722.2
|
|
|
13,886.3
|
|
||
Prior years
|
47.0
|
|
|
42.5
|
|
||
Total incurred
|
15,769.2
|
|
|
13,928.8
|
|
||
Paid related to:
|
|
|
|
||||
Current year
|
9,409.7
|
|
|
8,379.4
|
|
||
Prior years
|
5,031.9
|
|
|
4,387.8
|
|
||
Total paid
|
14,441.6
|
|
|
12,767.2
|
|
||
Net balance, End of period
|
12,244.4
|
|
|
10,728.6
|
|
||
Plus reinsurance recoverables on unpaid losses
|
2,376.4
|
|
|
2,624.7
|
|
||
Balance, End of period
|
$
|
14,620.8
|
|
|
$
|
13,353.3
|
|
•
|
Accident year 2016 had approximately
$52 million
of unfavorable prior year reserve development, which was in part offset by favorable development in 2017 as well as 2015 and prior accident years.
|
•
|
Our personal auto business incurred about
$41 million
of unfavorable loss and loss adjustment expense (LAE) reserve development, with the Agency and Direct auto businesses contributing about
$30 million
and
$11 million
, respectively, of unfavorable development. The unfavorable development was primarily due to an increase in reopened personal injury protection claims.
|
•
|
Our Property business recognized unfavorable development of about
$5 million
.
|
•
|
Our special lines products and Commercial Lines business had minimal development during the first nine months of the year.
|
•
|
Accident years 2016 and 2015 combined has approximately
$51 million
of unfavorable prior year reserve development. This unfavorable development was partially offset by
$8 million
of favorable development attributable to accident year 2014 and prior accident years.
|
•
|
Our personal auto businesses incurred
$76 million
of unfavorable LAE reserve development for the first nine months of 2017, primarily in the Agency business, in part reflecting an increase in costs related to property damage and higher LAE costs.
|
•
|
Our Property business experienced
$24 million
in favorable development primarily due to the identification of prior year losses eligible to be ceded under our catastrophe bond reinsurance program and lower severity and frequency than anticipated for accident year 2016.
|
•
|
The remaining favorable development for the first nine months was attributable to both our special lines and commercial auto products.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
(millions)
|
Revenues
|
|
Pretax
Profit (Loss)
|
|
Revenues
|
|
Pretax
Profit (Loss)
|
|
Revenues
|
|
Pretax
Profit
(Loss)
|
|
Revenues
|
|
Pretax
Profit
(Loss)
|
||||||||||||||||
Personal Lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency
|
$
|
3,318.2
|
|
|
$
|
372.2
|
|
|
$
|
2,840.0
|
|
|
$
|
69.5
|
|
|
$
|
9,607.7
|
|
|
$
|
1,142.2
|
|
|
$
|
8,224.0
|
|
|
$
|
524.7
|
|
Direct
|
3,337.2
|
|
|
294.4
|
|
|
2,734.8
|
|
|
128.7
|
|
|
9,565.3
|
|
|
880.3
|
|
|
7,908.5
|
|
|
466.7
|
|
||||||||
Total Personal Lines
1
|
6,655.4
|
|
|
666.6
|
|
|
5,574.8
|
|
|
198.2
|
|
|
19,173.0
|
|
|
2,022.5
|
|
|
16,132.5
|
|
|
991.4
|
|
||||||||
Commercial Lines
|
939.6
|
|
|
112.7
|
|
|
714.0
|
|
|
42.8
|
|
|
2,632.5
|
|
|
307.8
|
|
|
2,031.2
|
|
|
166.4
|
|
||||||||
Property
2
|
335.5
|
|
|
(7.8
|
)
|
|
255.2
|
|
|
(69.0
|
)
|
|
933.2
|
|
|
(31.2
|
)
|
|
720.3
|
|
|
(57.5
|
)
|
||||||||
Other indemnity
|
0
|
|
|
(0.1
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0.1
|
|
|
0
|
|
|
(0.3
|
)
|
||||||||
Total underwriting operations
|
7,930.5
|
|
|
771.4
|
|
|
6,544.0
|
|
|
172.0
|
|
|
22,738.7
|
|
|
2,299.2
|
|
|
18,884.0
|
|
|
1,100.0
|
|
||||||||
Fees and other revenues
3
|
122.6
|
|
|
NA
|
|
|
96.3
|
|
|
NA
|
|
|
342.4
|
|
|
NA
|
|
|
270.3
|
|
|
NA
|
|
||||||||
Service businesses
|
42.5
|
|
|
6.7
|
|
|
33.3
|
|
|
4.4
|
|
|
119.6
|
|
|
17.5
|
|
|
94.5
|
|
|
12.7
|
|
||||||||
Investments
4
|
400.2
|
|
|
394.4
|
|
|
118.2
|
|
|
112.4
|
|
|
743.2
|
|
|
725.2
|
|
|
470.2
|
|
|
452.2
|
|
||||||||
Other gains (losses)
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0.2
|
|
|
0.2
|
|
||||||||
Interest expense
|
NA
|
|
|
(42.0
|
)
|
|
NA
|
|
|
(37.4
|
)
|
|
NA
|
|
|
(120.5
|
)
|
|
NA
|
|
|
(117.6
|
)
|
||||||||
Consolidated total
|
$
|
8,495.8
|
|
|
$
|
1,130.5
|
|
|
$
|
6,791.8
|
|
|
$
|
251.4
|
|
|
$
|
23,943.9
|
|
|
$
|
2,921.4
|
|
|
$
|
19,719.2
|
|
|
$
|
1,447.5
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|||||||||||||
|
Under-writing
Margin |
|
Combined
Ratio
|
|
Under-writing
Margin |
|
Combined
Ratio
|
|
Under-writing
Margin
|
|
Combined
Ratio
|
|
Under-writing
Margin
|
|
Combined
Ratio
|
|||||
Personal Lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agency
|
11.2
|
%
|
|
88.8
|
|
2.4
|
%
|
|
97.6
|
|
|
11.9
|
%
|
|
88.1
|
|
6.4
|
%
|
|
93.6
|
Direct
|
8.8
|
|
|
91.2
|
|
4.7
|
|
|
95.3
|
|
|
9.2
|
|
|
90.8
|
|
5.9
|
|
|
94.1
|
Total Personal Lines
|
10.0
|
|
|
90.0
|
|
3.6
|
|
|
96.4
|
|
|
10.5
|
|
|
89.5
|
|
6.1
|
|
|
93.9
|
Commercial Lines
|
12.0
|
|
|
88.0
|
|
6.0
|
|
|
94.0
|
|
|
11.7
|
|
|
88.3
|
|
8.2
|
|
|
91.8
|
Property
1
|
(2.3
|
)
|
|
102.3
|
|
(27.0
|
)
|
|
127.0
|
|
|
(3.3
|
)
|
|
103.3
|
|
(8.0
|
)
|
|
108.0
|
Total underwriting operations
|
9.7
|
|
|
90.3
|
|
2.6
|
|
|
97.4
|
|
|
10.1
|
|
|
89.9
|
|
5.8
|
|
|
94.2
|
(millions, except per share amounts)
|
|
Amount of Common Share Dividends
|
|||||||||
Dividend Type
|
Declared
|
Paid
|
Per Share
|
|
Accrued
1
|
|
Paid
1
|
|
|||
Annual – Variable
|
December 2017
|
February 2018
|
$
|
1.1247
|
|
$
|
655.1
|
|
$
|
654.9
|
|
Annual – Variable
|
December 2016
|
February 2017
|
0.6808
|
|
395.4
|
|
395.4
|
|
|
|
|
|
|
|
|
Components of Changes in
Accumulated Other
Comprehensive Income (after tax)
|
||||||||||||||||||||
(millions)
|
Pretax total
accumulated
other
comprehensive
income (loss)
|
|
|
Total tax
(provision)
benefit
|
|
|
After tax total
accumulated
other
comprehensive
income (loss)
|
|
|
Total net
unrealized
gains
(losses)
on securities
|
|
|
Net
unrealized
gains
(losses) on
forecasted
transactions
|
|
|
Foreign
currency
translation
adjustment
|
|
|
(Income) loss attributable to NCI
|
|
|||||||
Balance at June 30, 2018
|
$
|
(280.8
|
)
|
|
$
|
58.9
|
|
|
$
|
(221.9
|
)
|
|
$
|
(210.9
|
)
|
|
$
|
(17.6
|
)
|
|
$
|
0
|
|
|
$
|
6.6
|
|
Reclassification of disproportionate amounts
1
|
(4.3
|
)
|
|
0.9
|
|
|
(3.4
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(3.4
|
)
|
|||||||
Adjusted balance at June 30, 2018
|
(285.1
|
)
|
|
59.8
|
|
|
(225.3
|
)
|
|
(210.9
|
)
|
|
(17.6
|
)
|
|
0
|
|
|
3.2
|
|
|||||||
Other comprehensive income (loss) before reclassifications:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Investment securities
|
(58.7
|
)
|
|
12.3
|
|
|
(46.4
|
)
|
|
(46.4
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
Forecasted transactions
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
Foreign currency translation adjustment
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
Loss attributable to noncontrolling interest (NCI)
|
0.6
|
|
|
(0.2
|
)
|
|
0.4
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0.4
|
|
|||||||
Total other comprehensive income (loss) before reclassifications
|
(58.1
|
)
|
|
12.1
|
|
|
(46.0
|
)
|
|
(46.4
|
)
|
|
0
|
|
|
0
|
|
|
0.4
|
|
|||||||
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net impairment losses recognized in earnings
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
Net realized gains (losses) on securities
|
(9.3
|
)
|
|
1.9
|
|
|
(7.4
|
)
|
|
(7.4
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
Interest expense
|
(0.2
|
)
|
|
0
|
|
|
(0.2
|
)
|
|
0
|
|
|
(0.2
|
)
|
|
0
|
|
|
0
|
|
|||||||
Total reclassification adjustment for amounts realized in net income
|
(9.5
|
)
|
|
1.9
|
|
|
(7.6
|
)
|
|
(7.4
|
)
|
|
(0.2
|
)
|
|
0
|
|
|
0
|
|
|||||||
Total other comprehensive income (loss)
|
(48.6
|
)
|
|
10.2
|
|
|
(38.4
|
)
|
|
(39.0
|
)
|
|
0.2
|
|
|
0
|
|
|
0.4
|
|
|||||||
Balance at September 30, 2018
|
$
|
(333.7
|
)
|
|
$
|
70.0
|
|
|
$
|
(263.7
|
)
|
|
$
|
(249.9
|
)
|
|
$
|
(17.4
|
)
|
|
$
|
0
|
|
|
$
|
3.6
|
|
|
|
|
|
|
|
|
Components of Changes in
Accumulated Other
Comprehensive Income (after tax)
|
||||||||||||||||||||
(millions)
|
Pretax total
accumulated
other
comprehensive
income (loss)
|
|
|
Total tax
(provision)
benefit
|
|
|
After tax total
accumulated
other
comprehensive
income (loss)
|
|
|
Total net
unrealized
gains
(losses)
on securities
|
|
|
Net
unrealized
gains
(losses) on
forecasted
transactions
|
|
|
Foreign
currency
translation
adjustment
|
|
|
(Income) loss attributable to NCI
|
|
|||||||
Balance at December 31, 2017
|
$
|
1,977.8
|
|
|
$
|
(695.6
|
)
|
|
$
|
1,282.2
|
|
|
$
|
1,295.0
|
|
|
$
|
(14.8
|
)
|
|
$
|
0
|
|
|
$
|
2.0
|
|
Cumulative effect adjustment
1
|
(2,006.0
|
)
|
|
705.8
|
|
|
(1,300.2
|
)
|
|
(1,300.2
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
Reclassification of disproportionate amounts
2
|
(4.3
|
)
|
|
(3.4
|
)
|
|
(7.7
|
)
|
|
(1.1
|
)
|
|
(3.2
|
)
|
|
0
|
|
|
(3.4
|
)
|
|||||||
Adjusted balance at December 31, 2017
|
(32.5
|
)
|
|
6.8
|
|
|
(25.7
|
)
|
|
(6.3
|
)
|
|
(18.0
|
)
|
|
0
|
|
|
(1.4
|
)
|
|||||||
Other comprehensive income (loss) before reclassifications:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Investment securities
|
(352.5
|
)
|
|
73.9
|
|
|
(278.6
|
)
|
|
(278.6
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
Forecasted transactions
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
Foreign currency translation adjustment
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
Loss attributable to noncontrolling interest (NCI)
|
6.4
|
|
|
(1.4
|
)
|
|
5.0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
5.0
|
|
|||||||
Total other comprehensive income (loss) before reclassifications
|
(346.1
|
)
|
|
72.5
|
|
|
(273.6
|
)
|
|
(278.6
|
)
|
|
0
|
|
|
0
|
|
|
5.0
|
|
|||||||
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net impairment losses recognized in earnings
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
Net realized gains (losses) on securities
|
(44.2
|
)
|
|
9.2
|
|
|
(35.0
|
)
|
|
(35.0
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
Interest expense
|
(0.7
|
)
|
|
0.1
|
|
|
(0.6
|
)
|
|
0
|
|
|
(0.6
|
)
|
|
0
|
|
|
0
|
|
|||||||
Total reclassification adjustment for amounts realized in net income
|
(44.9
|
)
|
|
9.3
|
|
|
(35.6
|
)
|
|
(35.0
|
)
|
|
(0.6
|
)
|
|
0
|
|
|
0
|
|
|||||||
Total other comprehensive income (loss)
|
(301.2
|
)
|
|
63.2
|
|
|
(238.0
|
)
|
|
(243.6
|
)
|
|
0.6
|
|
|
0
|
|
|
5.0
|
|
|||||||
Balance at September 30, 2018
|
$
|
(333.7
|
)
|
|
$
|
70.0
|
|
|
$
|
(263.7
|
)
|
|
$
|
(249.9
|
)
|
|
$
|
(17.4
|
)
|
|
$
|
0
|
|
|
$
|
3.6
|
|
|
|
|
|
|
|
|
Components of Changes in
Accumulated Other
Comprehensive Income (after tax)
|
||||||||||||||||||||
(millions)
|
Pretax total
accumulated
other
comprehensive
income (loss)
|
|
|
Total tax
(provision)
benefit
|
|
|
After tax total
accumulated
other
comprehensive
income (loss)
|
|
|
Total net
unrealized
gains
(losses)
on securities
|
|
|
Net
unrealized gains (losses) on forecasted transactions |
|
|
Foreign
currency
translation
adjustment
|
|
|
(Income) loss attributable to NCI
|
|
|||||||
Balance at June 30, 2017
|
$
|
1,774.1
|
|
|
$
|
(623.4
|
)
|
|
$
|
1,150.7
|
|
|
$
|
1,164.6
|
|
|
$
|
(15.1
|
)
|
|
$
|
(0.9
|
)
|
|
$
|
2.1
|
|
Other comprehensive income (loss) before reclassifications:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Investment securities
|
122.7
|
|
|
(43.0
|
)
|
|
79.7
|
|
|
79.7
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
Forecasted transactions
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
Foreign currency translation adjustment
|
0.9
|
|
|
(0.3
|
)
|
|
0.6
|
|
|
0
|
|
|
0
|
|
|
0.6
|
|
|
0
|
|
|||||||
Loss attributable to noncontrolling interest (NCI)
|
(1.1
|
)
|
|
0.4
|
|
|
(0.7
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(0.7
|
)
|
|||||||
Total other comprehensive income (loss) before reclassifications
|
122.5
|
|
|
(42.9
|
)
|
|
79.6
|
|
|
79.7
|
|
|
0
|
|
|
0.6
|
|
|
(0.7
|
)
|
|||||||
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net impairment losses recognized in earnings
|
(9.3
|
)
|
|
3.3
|
|
|
(6.0
|
)
|
|
(6.0
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
Net realized gains (losses) on securities
|
15.7
|
|
|
(5.5
|
)
|
|
10.2
|
|
|
10.2
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
Interest expense
|
(0.2
|
)
|
|
0.1
|
|
|
(0.1
|
)
|
|
0
|
|
|
(0.1
|
)
|
|
0
|
|
|
0
|
|
|||||||
Total reclassification adjustment for amounts realized in net income
|
6.2
|
|
|
(2.1
|
)
|
|
4.1
|
|
|
4.2
|
|
|
(0.1
|
)
|
|
0
|
|
|
0
|
|
|||||||
Total other comprehensive income (loss)
|
116.3
|
|
|
(40.8
|
)
|
|
75.5
|
|
|
75.5
|
|
|
0.1
|
|
|
0.6
|
|
|
(0.7
|
)
|
|||||||
Balance at September 30, 2017
|
$
|
1,890.4
|
|
|
$
|
(664.2
|
)
|
|
$
|
1,226.2
|
|
|
$
|
1,240.1
|
|
|
$
|
(15.0
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
1.4
|
|
|
|
|
|
|
|
|
Components of Changes in
Accumulated Other
Comprehensive Income (after tax)
|
||||||||||||||||||||
(millions)
|
Pretax total
accumulated
other
comprehensive
income (loss)
|
|
|
Total tax
(provision)
benefit
|
|
|
After tax total
accumulated
other
comprehensive
income (loss)
|
|
|
Total net
unrealized gains (losses) on securities |
|
|
Net
unrealized
gains
(losses) on
forecasted
transactions
|
|
|
Foreign
currency
translation
adjustment
|
|
|
(Income) loss attributable to NCI
|
|
|||||||
Balance at December 31, 2016
|
$
|
1,439.5
|
|
|
$
|
(506.1
|
)
|
|
$
|
933.4
|
|
|
$
|
939.6
|
|
|
$
|
(9.4
|
)
|
|
$
|
(1.1
|
)
|
|
$
|
4.3
|
|
Other comprehensive income (loss) before reclassifications:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Investment securities
|
554.4
|
|
|
(194.3
|
)
|
|
360.1
|
|
|
360.1
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
Forecasted transactions
|
(8.0
|
)
|
|
2.8
|
|
|
(5.2
|
)
|
|
0
|
|
|
(5.2
|
)
|
|
0
|
|
|
0
|
|
|||||||
Foreign currency translation adjustment
|
1.2
|
|
|
(0.4
|
)
|
|
0.8
|
|
|
0
|
|
|
0
|
|
|
0.8
|
|
|
0
|
|
|||||||
Loss attributable to noncontrolling interest (NCI)
|
(4.5
|
)
|
|
1.6
|
|
|
(2.9
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|
(2.9
|
)
|
|||||||
Total other comprehensive income (loss) before reclassifications
|
543.1
|
|
|
(190.3
|
)
|
|
352.8
|
|
|
360.1
|
|
|
(5.2
|
)
|
|
0.8
|
|
|
(2.9
|
)
|
|||||||
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net impairment losses recognized in earnings
|
(12.9
|
)
|
|
4.6
|
|
|
(8.3
|
)
|
|
(8.3
|
)
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
Net realized gains (losses) on securities
|
104.5
|
|
|
(36.6
|
)
|
|
67.9
|
|
|
67.9
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
Interest expense
|
0.6
|
|
|
(0.2
|
)
|
|
0.4
|
|
|
0
|
|
|
0.4
|
|
|
0
|
|
|
0
|
|
|||||||
Total reclassification adjustment for amounts realized in net income
|
92.2
|
|
|
(32.2
|
)
|
|
60.0
|
|
|
59.6
|
|
|
0.4
|
|
|
0
|
|
|
0
|
|
|||||||
Total other comprehensive income (loss)
|
450.9
|
|
|
(158.1
|
)
|
|
292.8
|
|
|
300.5
|
|
|
(5.6
|
)
|
|
0.8
|
|
|
(2.9
|
)
|
|||||||
Balance at September 30, 2017
|
$
|
1,890.4
|
|
|
$
|
(664.2
|
)
|
|
$
|
1,226.2
|
|
|
$
|
1,240.1
|
|
|
$
|
(15.0
|
)
|
|
$
|
(0.3
|
)
|
|
$
|
1.4
|
|
(millions)
|
September 30, 2018
|
|
|
September 30, 2017
|
|
|
December 31, 2017
|
|
|||
Balance, Beginning of period
|
$
|
503.7
|
|
|
$
|
483.7
|
|
|
$
|
483.7
|
|
Net income attributable to NCI
|
10.6
|
|
|
1.9
|
|
|
5.9
|
|
|||
Other comprehensive income (loss) attributable to NCI
1
|
(5.0
|
)
|
|
2.9
|
|
|
2.3
|
|
|||
Exercise of employee stock options
|
9.4
|
|
|
3.4
|
|
|
3.4
|
|
|||
Purchase/change of ARX minority shares
|
(298.2
|
)
|
|
0
|
|
|
0
|
|
|||
Change in redemption value of NCI
|
(3.1
|
)
|
|
6.3
|
|
|
8.4
|
|
|||
Balance, End of period
|
$
|
217.4
|
|
|
$
|
498.2
|
|
|
$
|
503.7
|
|
(millions)
|
September 30, 2018
|
|
|
September 30, 2017
|
|
|
December 31, 2017
|
|
|||
Intangible assets subject to amortization
|
$
|
300.2
|
|
|
$
|
372.2
|
|
|
$
|
354.2
|
|
Indefinite-lived intangible assets
1
|
12.4
|
|
|
12.4
|
|
|
12.4
|
|
|||
Total
|
$
|
312.6
|
|
|
$
|
384.6
|
|
|
$
|
366.6
|
|
(millions)
|
September 30, 2018
|
|
September 30, 2017
|
|
December 31, 2017
|
||||||||||||||||||||||||
Category
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
|||||||||
Policies in force
|
$
|
256.2
|
|
$
|
128.1
|
|
$
|
128.1
|
|
|
$
|
256.2
|
|
$
|
91.5
|
|
$
|
164.7
|
|
|
$
|
256.2
|
|
$
|
100.7
|
|
$
|
155.5
|
|
Agency relationships
|
159.2
|
|
39.8
|
|
119.4
|
|
|
159.2
|
|
28.4
|
|
130.8
|
|
|
159.2
|
|
31.3
|
|
127.9
|
|
|||||||||
Software rights
|
79.1
|
|
37.4
|
|
41.7
|
|
|
79.1
|
|
26.8
|
|
52.3
|
|
|
79.1
|
|
29.4
|
|
49.7
|
|
|||||||||
Trade name
|
34.8
|
|
23.8
|
|
11.0
|
|
|
34.8
|
|
10.4
|
|
24.4
|
|
|
34.8
|
|
13.7
|
|
21.1
|
|
|||||||||
Total
|
$
|
529.3
|
|
$
|
229.1
|
|
$
|
300.2
|
|
|
$
|
529.3
|
|
$
|
157.1
|
|
$
|
372.2
|
|
|
$
|
529.3
|
|
$
|
175.1
|
|
$
|
354.2
|
|
|
Three Months Ended September 30,
|
|
Nine months ended September 30,
|
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Personal Lines
|
|
|
|
|
|
|
|
||||
Agency
|
41
|
%
|
|
42
|
%
|
|
41
|
%
|
|
43
|
%
|
Direct
|
42
|
|
|
42
|
|
|
42
|
|
|
42
|
|
Total Personal Lines
1
|
83
|
|
|
84
|
|
|
83
|
|
|
85
|
|
Commercial Lines
|
12
|
|
|
12
|
|
|
12
|
|
|
11
|
|
Property
|
5
|
|
|
4
|
|
|
5
|
|
|
4
|
|
Total underwriting operations
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||||||
|
Underwriting
Profit (Loss)
|
|
Underwriting
Profit (Loss)
|
|
Underwriting
Profit (Loss)
|
|
Underwriting
Profit (Loss)
|
||||||||||||||||||||
($ in millions)
|
$
|
|
Margin
|
|
$
|
|
Margin
|
|
$
|
|
Margin
|
|
$
|
|
Margin
|
||||||||||||
Personal Lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency
|
$
|
372.2
|
|
|
11.2
|
%
|
|
$
|
69.5
|
|
|
2.4
|
%
|
|
$
|
1,142.2
|
|
|
11.9
|
%
|
|
$
|
524.7
|
|
|
6.4
|
%
|
Direct
|
294.4
|
|
|
8.8
|
|
|
128.7
|
|
|
4.7
|
|
|
880.3
|
|
|
9.2
|
|
|
466.7
|
|
|
5.9
|
|
||||
Total Personal Lines
|
666.6
|
|
|
10.0
|
|
|
198.2
|
|
|
3.6
|
|
|
2,022.5
|
|
|
10.5
|
|
|
991.4
|
|
|
6.1
|
|
||||
Commercial Lines
|
112.7
|
|
|
12.0
|
|
|
42.8
|
|
|
6.0
|
|
|
307.8
|
|
|
11.7
|
|
|
166.4
|
|
|
8.2
|
|
||||
Property
1
|
(7.8
|
)
|
|
(2.3
|
)
|
|
(69.0
|
)
|
|
(27.0
|
)
|
|
(31.2
|
)
|
|
(3.3
|
)
|
|
(57.5
|
)
|
|
(8.0
|
)
|
||||
Other indemnity
2
|
(0.1
|
)
|
|
NM
|
|
|
0
|
|
|
NM
|
|
|
0.1
|
|
|
NM
|
|
|
(0.3
|
)
|
|
NM
|
|
||||
Total underwriting operations
|
$
|
771.4
|
|
|
9.7
|
%
|
|
$
|
172.0
|
|
|
2.6
|
%
|
|
$
|
2,299.2
|
|
|
10.1
|
%
|
|
$
|
1,100.0
|
|
|
5.8
|
%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||
Underwriting Performance
1
|
2018
|
|
|
2017
|
|
|
Change
|
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
Personal Lines—Agency
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss & loss adjustment expense ratio
|
69.5
|
|
|
78.3
|
|
|
(8.8
|
) pts.
|
|
68.8
|
|
|
74.1
|
|
|
(5.3
|
) pts.
|
Underwriting expense ratio
|
19.3
|
|
|
19.3
|
|
|
0
|
pts.
|
|
19.3
|
|
|
19.5
|
|
|
(0.2
|
) pts.
|
Combined ratio
|
88.8
|
|
|
97.6
|
|
|
(8.8
|
) pts.
|
|
88.1
|
|
|
93.6
|
|
|
(5.5
|
) pts.
|
Personal Lines—Direct
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss & loss adjustment expense ratio
|
70.4
|
|
|
75.7
|
|
|
(5.3
|
) pts.
|
|
70.3
|
|
|
74.4
|
|
|
(4.1
|
) pts.
|
Underwriting expense ratio
|
20.8
|
|
|
19.6
|
|
|
1.2
|
pts.
|
|
20.5
|
|
|
19.7
|
|
|
0.8
|
pts.
|
Combined ratio
|
91.2
|
|
|
95.3
|
|
|
(4.1
|
) pts.
|
|
90.8
|
|
|
94.1
|
|
|
(3.3
|
) pts.
|
Total Personal Lines
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss & loss adjustment expense ratio
|
69.9
|
|
|
76.9
|
|
|
(7.0
|
) pts.
|
|
69.6
|
|
|
74.3
|
|
|
(4.7
|
) pts.
|
Underwriting expense ratio
|
20.1
|
|
|
19.5
|
|
|
0.6
|
pts.
|
|
19.9
|
|
|
19.6
|
|
|
0.3
|
pts.
|
Combined ratio
|
90.0
|
|
|
96.4
|
|
|
(6.4
|
) pts.
|
|
89.5
|
|
|
93.9
|
|
|
(4.4
|
) pts.
|
Commercial Lines
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss & loss adjustment expense ratio
|
67.6
|
|
|
72.2
|
|
|
(4.6
|
) pts.
|
|
67.9
|
|
|
69.8
|
|
|
(1.9
|
) pts.
|
Underwriting expense ratio
|
20.4
|
|
|
21.8
|
|
|
(1.4
|
) pts.
|
|
20.4
|
|
|
22.0
|
|
|
(1.6
|
) pts.
|
Combined ratio
|
88.0
|
|
|
94.0
|
|
|
(6.0
|
) pts.
|
|
88.3
|
|
|
91.8
|
|
|
(3.5
|
) pts.
|
Property
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss & loss adjustment expense ratio
|
69.8
|
|
|
95.0
|
|
|
(25.2
|
) pts.
|
|
68.6
|
|
|
73.4
|
|
|
(4.8
|
) pts.
|
Underwriting expense ratio
2
|
32.5
|
|
|
32.0
|
|
|
0.5
|
pts.
|
|
34.7
|
|
|
34.6
|
|
|
0.1
|
pts.
|
Combined ratio
2
|
102.3
|
|
|
127.0
|
|
|
(24.7
|
) pts.
|
|
103.3
|
|
|
108.0
|
|
|
(4.7
|
) pts.
|
Total Underwriting Operations
3
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss & loss adjustment expense ratio
|
69.7
|
|
|
77.2
|
|
|
(7.5
|
) pts.
|
|
69.4
|
|
|
73.8
|
|
|
(4.4
|
) pts.
|
Underwriting expense ratio
|
20.6
|
|
|
20.2
|
|
|
0.4
|
pts.
|
|
20.5
|
|
|
20.4
|
|
|
0.1
|
pts.
|
Combined ratio
|
90.3
|
|
|
97.4
|
|
|
(7.1
|
) pts.
|
|
89.9
|
|
|
94.2
|
|
|
(4.3
|
) pts.
|
Accident year loss & loss adjustment expense ratio
4
|
70.1
|
|
|
77.7
|
|
|
(7.6
|
) pts.
|
|
69.2
|
|
|
73.6
|
|
|
(4.4
|
) pts.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(millions)
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
||||
Change in net loss and LAE reserves
|
$
|
466.7
|
|
|
$
|
616.1
|
|
|
$
|
1,327.6
|
|
|
$
|
1,161.6
|
|
Paid losses and LAE
|
5,056.4
|
|
|
4,434.4
|
|
|
14,441.6
|
|
|
12,767.2
|
|
||||
Total incurred losses and LAE
|
$
|
5,523.1
|
|
|
$
|
5,050.5
|
|
|
$
|
15,769.2
|
|
|
$
|
13,928.8
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
($ in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Vehicle businesses
|
$
|
95.4
|
|
|
$
|
334.2
|
|
|
$
|
245.8
|
|
|
$
|
557.6
|
|
Property business, net of reinsurance (excluding ASL)
|
28.8
|
|
|
81.2
|
|
|
176.2
|
|
|
306.3
|
|
||||
Reinsurance (recoverable)/reversal on ASL
1
|
3.0
|
|
|
15.7
|
|
|
(39.0
|
)
|
|
(86.2
|
)
|
||||
Property business, net
|
31.8
|
|
|
96.9
|
|
|
137.2
|
|
|
220.1
|
|
||||
Total net catastrophe losses incurred
|
$
|
127.2
|
|
|
$
|
431.1
|
|
|
$
|
383.0
|
|
|
$
|
777.7
|
|
Increase to combined ratio
|
1.6
|
pts.
|
|
6.6
|
pts.
|
|
1.7
|
pts.
|
|
4.1
|
pts.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
($ in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Reinsurance recoverables on losses
|
|
|
|
|
|
|
|
||||||||
2018
|
$
|
(3.6
|
)
|
|
$
|
—
|
|
|
$
|
34.1
|
|
|
$
|
—
|
|
2017
|
0.6
|
|
|
(15.7
|
)
|
|
4.9
|
|
|
86.2
|
|
||||
Total
|
(3.0
|
)
|
|
(15.7
|
)
|
|
39.0
|
|
|
86.2
|
|
||||
Reinsurance recoverables on ALAE
|
|
|
|
|
|
|
|
|
|
|
|
||||
2018
|
0.9
|
|
|
—
|
|
|
5.0
|
|
|
—
|
|
||||
2017
|
1.8
|
|
|
(1.7
|
)
|
|
2.3
|
|
|
9.3
|
|
||||
Total
|
2.7
|
|
|
(1.7
|
)
|
|
7.3
|
|
|
9.3
|
|
||||
Total reinsurance recoverables
|
|
|
|
|
|
|
|
||||||||
2018
|
(2.7
|
)
|
|
—
|
|
|
39.1
|
|
|
—
|
|
||||
2017
|
2.4
|
|
|
(17.4
|
)
|
|
7.2
|
|
|
95.5
|
|
||||
Total
|
$
|
(0.3
|
)
|
|
$
|
(17.4
|
)
|
|
$
|
46.3
|
|
|
$
|
95.5
|
|
•
|
Collision increased about 9% and 8% for the third quarter and first nine months of 2018, respectively, in part due to an increase in the severity and frequency of total loss claims and higher costs to repair newer vehicles.
|
•
|
Bodily injury increased about 3% for both periods presented.
|
•
|
Auto property damage increased about 5% and 3% for the third quarter and first nine months of 2018, respectively.
|
•
|
Personal injury protection (PIP) increased about 12% and 1% for the third quarter and the first nine months of 2018, respectively. The increase during the quarter is primarily due to the timing of adjuster set reserves and the volatile nature of PIP.
|
•
|
PIP, auto property damage, and bodily injury decreased about 1% to 3% for both periods presented.
|
•
|
Collision decreased about 4% and 2% for the third quarter and the first nine months of 2018, respectively.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
($ in millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
ACTUARIAL ADJUSTMENTS
|
|
|
|
|
|
|
|
||||||||
Reserve decrease (increase)
|
|
|
|
|
|
|
|
||||||||
Prior accident years
|
$
|
2.1
|
|
|
$
|
21.9
|
|
|
$
|
1.3
|
|
|
$
|
92.8
|
|
Current accident year
|
2.1
|
|
|
3.0
|
|
|
16.0
|
|
|
(13.4
|
)
|
||||
Calendar year actuarial adjustment
|
$
|
4.2
|
|
|
$
|
24.9
|
|
|
$
|
17.3
|
|
|
$
|
79.4
|
|
PRIOR ACCIDENT YEARS DEVELOPMENT
|
|
|
|
|
|
|
|
||||||||
Favorable (unfavorable)
|
|
|
|
|
|
|
|
||||||||
Actuarial adjustment
|
$
|
2.1
|
|
|
$
|
21.9
|
|
|
$
|
1.3
|
|
|
$
|
92.8
|
|
All other development
|
32.4
|
|
|
9.8
|
|
|
(48.3
|
)
|
|
(135.3
|
)
|
||||
Total development
|
$
|
34.5
|
|
|
$
|
31.7
|
|
|
$
|
(47.0
|
)
|
|
$
|
(42.5
|
)
|
(Increase) decrease to calendar year combined ratio
|
0.4
|
pts.
|
|
0.5
|
pts.
|
|
(0.2
|
) pts.
|
|
(0.2
|
) pts.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||
($ in millions)
|
2018
|
|
2017
|
|
% Growth
|
|
2018
|
|
2017
|
|
% Growth
|
||||||||||
NET PREMIUMS WRITTEN
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Personal Lines
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
$
|
3,504.3
|
|
|
$
|
3,028.8
|
|
|
16
|
%
|
|
$
|
10,224.2
|
|
|
$
|
8,765.9
|
|
|
17
|
%
|
Direct
|
3,618.2
|
|
|
2,987.2
|
|
|
21
|
|
|
10,296.0
|
|
|
8,461.5
|
|
|
22
|
|
||||
Total Personal Lines
|
7,122.5
|
|
|
6,016.0
|
|
|
18
|
|
|
20,520.2
|
|
|
17,227.4
|
|
|
19
|
|
||||
Commercial Lines
|
1,083.7
|
|
|
825.7
|
|
|
31
|
|
|
3,055.8
|
|
|
2,343.7
|
|
|
30
|
|
||||
Property
|
397.8
|
|
|
300.7
|
|
|
32
|
|
|
1,092.1
|
|
|
808.4
|
|
|
35
|
|
||||
Total underwriting operations
|
$
|
8,604.0
|
|
|
$
|
7,142.4
|
|
|
20
|
%
|
|
$
|
24,668.1
|
|
|
$
|
20,379.5
|
|
|
21
|
%
|
NET PREMIUMS EARNED
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Personal Lines
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
$
|
3,318.2
|
|
|
$
|
2,840.0
|
|
|
17
|
%
|
|
$
|
9,607.7
|
|
|
$
|
8,224.0
|
|
|
17
|
%
|
Direct
|
3,337.2
|
|
|
2,734.8
|
|
|
22
|
|
|
9,565.3
|
|
|
7,908.5
|
|
|
21
|
|
||||
Total Personal Lines
|
6,655.4
|
|
|
5,574.8
|
|
|
19
|
|
|
19,173.0
|
|
|
16,132.5
|
|
|
19
|
|
||||
Commercial Lines
|
939.6
|
|
|
714.0
|
|
|
32
|
|
|
2,632.5
|
|
|
2,031.2
|
|
|
30
|
|
||||
Property
|
335.5
|
|
|
255.2
|
|
|
31
|
|
|
933.2
|
|
|
720.3
|
|
|
30
|
|
||||
Total underwriting operations
|
$
|
7,930.5
|
|
|
$
|
6,544.0
|
|
|
21
|
%
|
|
$
|
22,738.7
|
|
|
$
|
18,884.0
|
|
|
20
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
September 30,
|
||||||||||||||
(thousands)
|
|
|
|
|
|
|
2018
|
|
2017
|
|
% Growth
|
||||||||||
POLICIES IN FORCE
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency auto
|
|
|
|
|
|
|
6,249.3
|
|
|
5,515.3
|
|
|
13
|
%
|
|||||||
Direct auto
|
|
|
|
|
|
|
6,875.8
|
|
|
5,889.6
|
|
|
17
|
|
|||||||
Total auto
|
|
|
|
|
|
|
13,125.1
|
|
|
11,404.9
|
|
|
15
|
|
|||||||
Special lines
1
|
|
|
|
|
|
|
4,418.9
|
|
|
4,396.1
|
|
|
1
|
|
|||||||
Personal Lines
—
total
|
|
|
|
|
|
|
17,544.0
|
|
|
15,801.0
|
|
|
11
|
%
|
|||||||
Commercial Lines
|
|
|
|
|
|
|
691.9
|
|
|
638.6
|
|
|
8
|
%
|
|||||||
Property
|
|
|
|
|
|
|
1,867.0
|
|
|
1,375.6
|
|
|
36
|
%
|
|
Growth Over Prior Year
|
||||||||
|
Quarter
|
|
Year-to-date
|
||||||
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
APPLICATIONS
|
|
|
|
|
|
||||
New
|
17
|
%
|
20
|
%
|
|
19
|
%
|
11
|
%
|
Renewal
|
11
|
%
|
7
|
%
|
|
10
|
%
|
7
|
%
|
WRITTEN PREMIUM PER POLICY - AUTO
|
4
|
%
|
5
|
%
|
|
5
|
%
|
6
|
%
|
RETENTION MEASURES - AUTO
|
|
|
|
|
|
||||
Policy life expectancy
|
|
|
|
|
|
||||
Trailing 3-months
|
0
|
%
|
10
|
%
|
|
|
|
||
Trailing 12-months
|
7
|
%
|
5
|
%
|
|
|
|
|
Growth Over Prior Year
|
||||||||
|
Quarter
|
|
Year-to-date
|
||||||
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
Auto: new applications
|
12
|
%
|
25
|
%
|
|
17
|
%
|
19
|
%
|
renewal applications
|
12
|
%
|
8
|
%
|
|
12
|
%
|
7
|
%
|
written premium per policy
|
5
|
%
|
5
|
%
|
|
5
|
%
|
6
|
%
|
Auto retention measures:
|
|
|
|
|
|
||||
policy life expectancy - trailing 3-months
|
1
|
%
|
10
|
%
|
|
|
|
||
trailing 12-months
|
8
|
%
|
6
|
%
|
|
|
|
|
Growth Over Prior Year
|
||||||||
|
Quarter
|
|
Year-to-date
|
||||||
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
Auto: new applications
|
26
|
%
|
25
|
%
|
|
29
|
%
|
10
|
%
|
renewal applications
|
15
|
%
|
9
|
%
|
|
14
|
%
|
9
|
%
|
written premium per policy
|
4
|
%
|
5
|
%
|
|
4
|
%
|
5
|
%
|
Auto retention measures:
|
|
|
|
|
|
||||
policy life expectancy - trailing 3-months
|
(2
|
)%
|
8
|
%
|
|
|
|
||
trailing 12-months
|
5
|
%
|
2
|
%
|
|
|
|
|
Growth Over Prior Year
|
||||||||
|
Quarter
|
|
Year-to-date
|
||||||
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
New applications
|
10
|
%
|
5
|
%
|
|
15
|
%
|
(6
|
)%
|
Renewal applications
|
6
|
%
|
8
|
%
|
|
5
|
%
|
9
|
%
|
Written premium per policy
|
15
|
%
|
13
|
%
|
|
14
|
%
|
10
|
%
|
Policy life expectancy - trailing 12-months
|
2
|
%
|
(3
|
)%
|
|
|
|
|
Growth Over Prior Year
|
||||||||
|
Quarter
|
|
Year-to-date
|
||||||
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
New applications
|
51
|
%
|
46
|
%
|
|
70
|
%
|
38
|
%
|
Renewal applications
|
26
|
%
|
11
|
%
|
|
22
|
%
|
17
|
%
|
Written premium per policy
|
(3
|
)%
|
(1
|
)%
|
|
(4
|
)%
|
(5
|
)%
|
|
Three Months
|
|
Nine Months
|
||||||||
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Pretax recurring investment book yield (annualized)
|
2.9
|
%
|
|
2.3
|
%
|
|
2.7
|
%
|
|
2.3
|
%
|
Weighted average FTE book yield (annualized)
|
3.0
|
%
|
|
2.5
|
%
|
|
2.8
|
%
|
|
2.6
|
%
|
FTE total return:
|
|
|
|
|
|
|
|
||||
Fixed-income securities
|
0.5
|
%
|
|
0.7
|
%
|
|
0.5
|
%
|
|
2.8
|
%
|
Common stocks
|
7.4
|
%
|
|
4.3
|
%
|
|
10.3
|
%
|
|
14.6
|
%
|
Total portfolio
|
1.2
|
%
|
|
1.1
|
%
|
|
1.5
|
%
|
|
4.2
|
%
|
|
Three Months
|
|
Nine Months
|
||||||||
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Fixed-income securities:
|
|
|
|
|
|
|
|
||||
U.S. Treasury Notes
|
(0.1
|
)%
|
|
0.3
|
%
|
|
(0.8
|
)%
|
|
1.7
|
%
|
Municipal bonds
|
0.1
|
%
|
|
1.3
|
%
|
|
0.7
|
%
|
|
4.7
|
%
|
Corporate bonds
|
1.0
|
%
|
|
0.8
|
%
|
|
0.7
|
%
|
|
2.8
|
%
|
Residential mortgage-backed securities
|
0.7
|
%
|
|
1.1
|
%
|
|
1.9
|
%
|
|
4.0
|
%
|
Commercial mortgage-backed securities
|
0.9
|
%
|
|
0.6
|
%
|
|
1.4
|
%
|
|
3.4
|
%
|
Other asset-backed securities
|
0.6
|
%
|
|
0.5
|
%
|
|
1.3
|
%
|
|
1.5
|
%
|
Preferred stocks
|
1.7
|
%
|
|
1.5
|
%
|
|
2.2
|
%
|
|
11.2
|
%
|
Short-term investments
|
0.5
|
%
|
|
0.3
|
%
|
|
1.4
|
%
|
|
0.8
|
%
|
Common stocks:
|
|
|
|
|
|
|
|
||||
Indexed
|
7.6
|
%
|
|
4.6
|
%
|
|
10.6
|
%
|
|
15.0
|
%
|
Actively managed
|
4.3
|
%
|
|
0.2
|
%
|
|
6.7
|
%
|
|
7.7
|
%
|
($ in millions)
|
Fair
Value
|
|
|
% of
Total
Portfolio
|
|
|
Duration
(years)
|
|
|
Rating
1
|
|
September 30, 2018
|
|
|
|
|
|
|
|
||||
Fixed maturities
|
$
|
25,642.7
|
|
|
79.3
|
%
|
|
2.9
|
|
|
AA-
|
Nonredeemable preferred stocks
|
840.9
|
|
|
2.6
|
|
|
2.9
|
|
|
BBB-
|
|
Short-term investments
|
2,809.7
|
|
|
8.7
|
|
|
0.1
|
|
|
AA
|
|
Total fixed-income securities
|
29,293.3
|
|
|
90.6
|
|
|
2.6
|
|
|
AA-
|
|
Common equities
|
3,057.3
|
|
|
9.4
|
|
|
na
|
|
|
na
|
|
Total portfolio
2,3
|
$
|
32,350.6
|
|
|
100.0
|
%
|
|
2.6
|
|
|
AA-
|
September 30, 2017
|
|
|
|
|
|
|
|
||||
Fixed maturities
|
$
|
18,660.0
|
|
|
69.1
|
%
|
|
2.6
|
|
|
A+
|
Nonredeemable preferred stocks
|
813.7
|
|
|
3.0
|
|
|
3.5
|
|
|
BBB-
|
|
Short-term investments
|
4,311.5
|
|
|
16.0
|
|
|
0.1
|
|
|
AA
|
|
Total fixed-income securities
|
23,785.2
|
|
|
88.1
|
|
|
2.2
|
|
|
A+
|
|
Common equities
|
3,209.5
|
|
|
11.9
|
|
|
na
|
|
|
na
|
|
Total portfolio
2,3
|
$
|
26,994.7
|
|
|
100.0
|
%
|
|
2.2
|
|
|
A+
|
December 31, 2017
|
|
|
|
|
|
|
|
||||
Fixed maturities
|
$
|
20,201.7
|
|
|
74.1
|
%
|
|
2.8
|
|
|
AA-
|
Nonredeemable preferred stocks
|
803.8
|
|
|
2.9
|
|
|
3.3
|
|
|
BBB-
|
|
Short-term investments
|
2,869.4
|
|
|
10.5
|
|
|
<0.1
|
|
|
AA-
|
|
Total fixed-income securities
|
23,874.9
|
|
|
87.5
|
|
|
2.5
|
|
|
AA-
|
|
Common equities
|
3,399.8
|
|
|
12.5
|
|
|
na
|
|
|
na
|
|
Total portfolio
2,3
|
$
|
27,274.7
|
|
|
100.0
|
%
|
|
2.5
|
|
|
AA-
|
na = not applicable
|
|
|
|
|
|
|
|
•
|
common equities
|
•
|
nonredeemable preferred stocks
|
•
|
redeemable preferred stocks, except for 50% of investment-grade redeemable preferred stocks with cumulative dividends, which are included in Group II, and
|
•
|
all other non-investment-grade fixed-maturity securities.
|
•
|
short-term securities, and
|
•
|
all other fixed-maturity securities, including 50% of the investment-grade redeemable preferred stocks with cumulative dividends.
|
|
September 30, 2018
|
|
September 30, 2017
|
|
December 31, 2017
|
||||||||||||
($ in millions)
|
Fair
Value
|
|
% of Total
Portfolio
|
|
|
Fair
Value |
|
% of Total
Portfolio |
|
|
Fair
Value |
|
% of Total
Portfolio |
|
|||
Group I securities:
|
|
|
|
|
|
|
|
|
|||||||||
Non-investment-grade fixed maturities
|
$
|
761.1
|
|
2.4
|
%
|
|
$
|
445.5
|
|
1.6
|
%
|
|
$
|
404.8
|
|
1.5
|
%
|
Redeemable preferred stocks
1
|
157.8
|
|
0.5
|
|
|
159.5
|
|
0.6
|
|
|
147.4
|
|
0.5
|
|
|||
Nonredeemable preferred stocks
|
840.9
|
|
2.6
|
|
|
813.7
|
|
3.0
|
|
|
803.8
|
|
2.9
|
|
|||
Common equities
|
3,057.3
|
|
9.4
|
|
|
3,209.5
|
|
11.9
|
|
|
3,399.8
|
|
12.5
|
|
|||
Total Group I securities
|
4,817.1
|
|
14.9
|
|
|
4,628.2
|
|
17.1
|
|
|
4,755.8
|
|
17.4
|
|
|||
Group II securities:
|
|
|
|
|
|
|
|
|
|||||||||
Other fixed maturities
2
|
24,723.8
|
|
76.4
|
|
|
18,055.0
|
|
66.9
|
|
|
19,649.5
|
|
72.1
|
|
|||
Short-term investments
|
2,809.7
|
|
8.7
|
|
|
4,311.5
|
|
16.0
|
|
|
2,869.4
|
|
10.5
|
|
|||
Total Group II securities
|
27,533.5
|
|
85.1
|
|
|
22,366.5
|
|
82.9
|
|
|
22,518.9
|
|
82.6
|
|
|||
Total portfolio
|
$
|
32,350.6
|
|
100.0
|
%
|
|
$
|
26,994.7
|
|
100.0
|
%
|
|
$
|
27,274.7
|
|
100.0
|
%
|
(millions)
|
Gross Holding Period Gains
|
|
Gross Holding Period Losses
|
|
Net Holding Period Gains (Losses)
|
|
|||
Hybrid fixed maturities:
|
|
|
|
||||||
State and local government obligations
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
Corporate debt securities
|
0
|
|
(2.0
|
)
|
(2.0
|
)
|
|||
Other asset-backed securities
|
0.1
|
|
0
|
|
0.1
|
|
|||
Redeemable preferred stocks
|
0.4
|
|
(2.5
|
)
|
(2.1
|
)
|
|||
Total hybrid fixed maturities
|
0.5
|
|
(4.5
|
)
|
(4.0
|
)
|
|||
Equity securities:
|
|
|
|
||||||
Nonredeemable preferred stocks
|
92.7
|
|
(10.7
|
)
|
82.0
|
|
|||
Common equities
|
1,932.9
|
|
(10.6
|
)
|
1,922.3
|
|
|||
Total equity securities
|
2,025.6
|
|
(21.3
|
)
|
2,004.3
|
|
|||
Total holding period securities at September 30, 2018
|
$
|
2,026.1
|
|
$
|
(25.8
|
)
|
$
|
2,000.3
|
|
Total holding period securities at September 30, 2017
1
|
$
|
1,852.0
|
|
$
|
(12.8
|
)
|
$
|
1,839.2
|
|
Total holding period securities at December 31, 2017
1
|
$
|
2,015.6
|
|
$
|
(9.4
|
)
|
$
|
2,006.2
|
|
|
|
|
|
Total Gross Unrealized Losses
1
|
|
||
(millions)
|
Fair Value
|
|
|
||||
Unrealized loss for less than 12 months
|
$
|
12,985.1
|
|
|
$
|
131.9
|
|
Unrealized loss for 12 months or greater
|
9,894.7
|
|
|
217.1
|
|
||
Total
|
$
|
22,879.8
|
|
|
$
|
349.0
|
|
Duration Distribution
|
September 30, 2018
|
|
|
September 30, 2017
|
|
|
December 31, 2017
|
|
1 year
|
22.0
|
%
|
|
22.3
|
%
|
|
19.8
|
%
|
2 years
|
16.9
|
|
|
15.9
|
|
|
15.7
|
|
3 years
|
25.8
|
|
|
26.8
|
|
|
27.0
|
|
5 years
|
20.4
|
|
|
22.8
|
|
|
24.1
|
|
7 years
|
10.4
|
|
|
8.3
|
|
|
8.7
|
|
10 years
|
4.5
|
|
|
3.9
|
|
|
4.7
|
|
Total fixed-income portfolio
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Rating
|
September 30, 2018
|
|
|
September 30, 2017
|
|
|
December 31, 2017
|
|
AAA
|
51.8
|
%
|
|
41.9
|
%
|
|
45.8
|
%
|
AA
|
11.5
|
|
|
15.5
|
|
|
13.6
|
|
A
|
9.3
|
|
|
12.7
|
|
|
12.2
|
|
BBB
|
22.7
|
|
|
24.6
|
|
|
23.2
|
|
Non-investment grade/non-rated
1
|
|
|
|
|
|
|||
BB
|
3.0
|
|
|
3.7
|
|
|
3.6
|
|
B
|
1.4
|
|
|
0.9
|
|
|
1.0
|
|
CCC and lower
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
Non-rated
|
0.2
|
|
|
0.6
|
|
|
0.5
|
|
Total fixed-income portfolio
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
($ in millions)
|
Fair
Value
|
|
|
Duration
(years)
|
|
|
U.S. Treasury Notes
|
|
|
|
|||
Less than one year
|
$
|
173.5
|
|
|
0.3
|
|
One to two years
|
1,698.9
|
|
|
1.3
|
|
|
Two to three years
|
2,415.0
|
|
|
2.4
|
|
|
Three to five years
|
3,703.4
|
|
|
3.8
|
|
|
Five to seven years
|
998.2
|
|
|
5.8
|
|
|
Seven to ten years
|
763.5
|
|
|
8.1
|
|
|
Total U.S. Treasury Notes
|
$
|
9,752.5
|
|
|
3.5
|
|
($ in millions)
|
Fair
Value
|
|
|
Net Unrealized
Gains (Losses)
|
|
|
% of Asset-
Backed
Securities
|
|
|
Duration
(years)
|
|
|
Rating
(at period end)
|
||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
||||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Collateralized mortgage obligations
|
$
|
414.3
|
|
|
$
|
(2.3
|
)
|
|
6.0
|
%
|
|
1.6
|
|
|
AA
|
Home equity (sub-prime bonds)
|
355.5
|
|
|
4.3
|
|
|
5.1
|
|
|
0.4
|
|
|
A-
|
||
Residential mortgage-backed securities
|
769.8
|
|
|
2.0
|
|
|
11.1
|
|
|
1.1
|
|
|
A+
|
||
Commercial mortgage-backed securities
|
2,959.3
|
|
|
(27.2
|
)
|
|
42.8
|
|
|
2.6
|
|
|
A+
|
||
Other asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Automobile
|
1,418.6
|
|
|
(4.2
|
)
|
|
20.5
|
|
|
0.9
|
|
|
AAA-
|
||
Credit card
|
514.9
|
|
|
(0.2
|
)
|
|
7.4
|
|
|
0.6
|
|
|
AAA
|
||
Student loan
|
510.1
|
|
|
(1.1
|
)
|
|
7.4
|
|
|
1.1
|
|
|
AA
|
||
Other
1
|
749.3
|
|
|
(6.7
|
)
|
|
10.8
|
|
|
1.6
|
|
|
AA-
|
||
Other asset-backed securities
|
3,192.9
|
|
|
(12.2
|
)
|
|
46.1
|
|
|
1.0
|
|
|
AA+
|
||
Total asset-backed securities
|
$
|
6,922.0
|
|
|
$
|
(37.4
|
)
|
|
100.0
|
%
|
|
1.7
|
|
|
AA
|
($ in millions)
|
Fair
Value
|
|
|
Net Unrealized
Gains (Losses)
|
|
|
% of Asset-
Backed
Securities
|
|
|
Duration
(years)
|
|
|
Rating
(at period end)
|
||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
||||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Collateralized mortgage obligations
|
$
|
443.8
|
|
|
$
|
(0.5
|
)
|
|
7.2
|
%
|
|
1.1
|
|
|
A+
|
Home equity (sub-prime bonds)
|
511.8
|
|
|
9.1
|
|
|
8.2
|
|
|
0.5
|
|
|
BBB
|
||
Residential mortgage-backed securities
|
955.6
|
|
|
8.6
|
|
|
15.4
|
|
|
0.8
|
|
|
A-
|
||
Commercial mortgage-backed securities
|
2,767.9
|
|
|
4.2
|
|
|
44.5
|
|
|
2.9
|
|
|
A-
|
||
Other asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Automobile
|
1,212.2
|
|
|
(0.2
|
)
|
|
19.5
|
|
|
0.6
|
|
|
AAA-
|
||
Credit card
|
72.1
|
|
|
0
|
|
|
1.2
|
|
|
0.9
|
|
|
AAA
|
||
Student loan
|
583.7
|
|
|
4.8
|
|
|
9.4
|
|
|
1.2
|
|
|
AA-
|
||
Other
1
|
622.2
|
|
|
(0.2
|
)
|
|
10.0
|
|
|
2.4
|
|
|
A+
|
||
Other asset-backed securities
|
2,490.2
|
|
|
4.4
|
|
|
40.1
|
|
|
1.2
|
|
|
AA+
|
||
Total asset-backed securities
|
$
|
6,213.7
|
|
|
$
|
17.2
|
|
|
100.0
|
%
|
|
1.9
|
|
|
A+
|
($ in millions)
|
Fair
Value
|
|
|
Net Unrealized
Gains (Losses)
|
|
|
% of Asset-
Backed
Securities
|
|
|
Duration
(years)
|
|
|
Rating
(at period end)
|
||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Collateralized mortgage obligations
|
$
|
404.3
|
|
|
$
|
0
|
|
|
6.7
|
%
|
|
1.1
|
|
|
A+
|
Home equity (sub-prime bonds)
|
432.4
|
|
|
7.9
|
|
|
7.1
|
|
|
0.2
|
|
|
BBB+
|
||
Residential mortgage-backed securities
|
836.7
|
|
|
7.9
|
|
|
13.8
|
|
|
0.7
|
|
|
A-
|
||
Commercial mortgage-backed securities
|
2,758.6
|
|
|
(1.5
|
)
|
|
45.6
|
|
|
2.9
|
|
|
A
|
||
Other asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Automobile
|
1,182.2
|
|
|
(1.8
|
)
|
|
19.5
|
|
|
0.7
|
|
|
AAA-
|
||
Credit card
|
95.8
|
|
|
(0.1
|
)
|
|
1.6
|
|
|
0.5
|
|
|
AAA
|
||
Student loan
|
538.7
|
|
|
2.3
|
|
|
8.9
|
|
|
1.1
|
|
|
AA-
|
||
Other
1
|
638.0
|
|
|
(0.4
|
)
|
|
10.6
|
|
|
2.2
|
|
|
A+
|
||
Other asset-backed securities
|
2,454.7
|
|
|
0
|
|
|
40.6
|
|
|
1.2
|
|
|
AA+
|
||
Total asset-backed securities
|
$
|
6,050.0
|
|
|
$
|
6.4
|
|
|
100.0
|
%
|
|
1.9
|
|
|
A+
|
Residential Mortgage-Backed Securities (at September 30, 2018)
|
||||||||||||||||||||||||||
|
|
|
Collateralized Mortgage Obligations
|
|
|
|
|
|||||||||||||||||||
($ in millions)
Rating 1 |
Home Equity
|
|
|
Agency Pass-Through
|
|
|
Non-Agency Prime
|
|
|
Alt-A
2
|
|
|
Government/GSE
3
|
|
|
Total
|
|
% of Total
|
|
|||||||
AAA
|
$
|
43.3
|
|
|
$
|
28.4
|
|
|
$
|
226.7
|
|
|
$
|
6.4
|
|
|
$
|
47.0
|
|
|
$
|
351.8
|
|
|
45.7
|
%
|
AA
|
82.7
|
|
|
0
|
|
|
14.0
|
|
|
16.6
|
|
|
0.8
|
|
|
114.1
|
|
|
14.8
|
|
||||||
A
|
92.7
|
|
|
0
|
|
|
0.9
|
|
|
0
|
|
|
0
|
|
|
93.6
|
|
|
12.2
|
|
||||||
BBB
|
29.8
|
|
|
0
|
|
|
7.0
|
|
|
0
|
|
|
0
|
|
|
36.8
|
|
|
4.8
|
|
||||||
Non-investment grade/non-rated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
BB
|
33.4
|
|
|
0
|
|
|
3.0
|
|
|
1.9
|
|
|
0
|
|
|
38.3
|
|
|
5.0
|
|
||||||
B
|
41.6
|
|
|
0
|
|
|
2.7
|
|
|
0.8
|
|
|
0
|
|
|
45.1
|
|
|
5.8
|
|
||||||
CCC and lower
|
14.5
|
|
|
0
|
|
|
5.6
|
|
|
0
|
|
|
0
|
|
|
20.1
|
|
|
2.6
|
|
||||||
Non-rated
|
17.5
|
|
|
0
|
|
|
10.8
|
|
|
41.7
|
|
|
0
|
|
|
70.0
|
|
|
9.1
|
|
||||||
Total fair value
|
$
|
355.5
|
|
|
$
|
28.4
|
|
|
$
|
270.7
|
|
|
$
|
67.4
|
|
|
$
|
47.8
|
|
|
$
|
769.8
|
|
|
100.0
|
%
|
Increase (decrease) in value
|
1.2
|
%
|
|
(4.7
|
)%
|
|
(0.4
|
)%
|
|
2.9
|
%
|
|
(3.4
|
)%
|
|
0.3
|
%
|
|
|
Commercial Mortgage-Backed Securities (at September 30, 2018)
|
||||||||||||||
($ in millions)
Rating
1
|
Multi-Borrower
|
|
|
Single-Borrower
|
|
|
Total
|
|
% of Total
|
|
||||
AAA
|
$
|
245.3
|
|
|
$
|
672.7
|
|
|
$
|
918.0
|
|
|
31.0
|
%
|
AA
|
74.0
|
|
|
716.4
|
|
|
790.4
|
|
|
26.7
|
|
|||
A
|
41.2
|
|
|
441.7
|
|
|
482.9
|
|
|
16.3
|
|
|||
BBB
|
12.7
|
|
|
571.5
|
|
|
584.2
|
|
|
19.8
|
|
|||
Non-investment grade/non-rated:
|
|
|
|
|
|
|
|
|||||||
BB
|
14.3
|
|
|
140.1
|
|
|
154.4
|
|
|
5.2
|
|
|||
B
|
0.8
|
|
|
28.6
|
|
|
29.4
|
|
|
1.0
|
|
|||
Total fair value
|
$
|
388.3
|
|
|
$
|
2,571.0
|
|
|
$
|
2,959.3
|
|
|
100.0
|
%
|
Increase (decrease) in value
|
(0.4
|
)%
|
|
(1.0
|
)%
|
|
(0.9
|
)%
|
|
|
Corporate Securities (at September 30, 2018)
|
|||||||||||||||||||||||||||
(millions)
Rating
|
Consumer
|
|
Industrial
|
|
Communication
|
|
Financial Services
|
|
Agency
|
|
Technology
|
|
Basic Materials
|
|
Energy
|
|
Total
|
|
|||||||||
AAA
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
50.1
|
|
$
|
0.5
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
50.6
|
|
AA
|
0
|
|
0
|
|
0
|
|
237.8
|
|
1.2
|
|
0.1
|
|
0
|
|
0.1
|
|
239.2
|
|
|||||||||
A
|
290.2
|
|
174.6
|
|
48.9
|
|
593.0
|
|
0
|
|
2.2
|
|
31.3
|
|
4.3
|
|
1,144.5
|
|
|||||||||
BBB
|
2,327.7
|
|
940.7
|
|
333.6
|
|
650.0
|
|
0
|
|
531.7
|
|
47.4
|
|
205.7
|
|
5,036.8
|
|
|||||||||
Non-investment grade/non-rated:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
BB
|
15.6
|
|
117.3
|
|
95.2
|
|
13.4
|
|
0
|
|
101.8
|
|
23.5
|
|
18.0
|
|
384.8
|
|
|||||||||
B
|
103.8
|
|
64.8
|
|
40.0
|
|
46.1
|
|
0
|
|
9.7
|
|
17.2
|
|
9.3
|
|
290.9
|
|
|||||||||
Total fair value
|
$
|
2,737.3
|
|
$
|
1,297.4
|
|
$
|
517.7
|
|
$
|
1,590.4
|
|
$
|
1.7
|
|
$
|
645.5
|
|
$
|
119.4
|
|
$
|
237.4
|
|
$
|
7,146.8
|
|
Preferred Stocks (at September 30, 2018)
|
|||||||||||||||||||||
|
Financial Services
|
|
|
|
|||||||||||||||||
(millions)
Rating
|
U.S. Banks
|
|
Foreign Banks
|
|
Insurance
|
|
Other
|
|
Industrials
|
|
Utilities
|
|
Total
|
|
|||||||
A
|
$
|
56.5
|
|
$
|
0
|
|
$
|
0
|
|
$
|
10.2
|
|
$
|
0
|
|
$
|
0
|
|
$
|
66.7
|
|
BBB
|
416.7
|
|
0
|
|
65.6
|
|
54.7
|
|
119.9
|
|
40.3
|
|
697.2
|
|
|||||||
Non-investment grade/non-rated:
|
|
|
|
|
|
|
|
|
|||||||||||||
BB
|
157.9
|
|
25.6
|
|
42.7
|
|
0
|
|
40.2
|
|
0
|
|
266.4
|
|
|||||||
B
|
0
|
|
0
|
|
0
|
|
38.2
|
|
0
|
|
0
|
|
38.2
|
|
|||||||
Non-rated
|
0
|
|
0
|
|
0
|
|
0
|
|
5.0
|
|
0
|
|
5.0
|
|
|||||||
Total fair value
|
$
|
631.1
|
|
$
|
25.6
|
|
$
|
108.3
|
|
$
|
103.1
|
|
$
|
165.1
|
|
$
|
40.3
|
|
$
|
1,073.5
|
|
($ in millions)
|
September 30, 2018
|
|
September 30, 2017
|
|
December 31, 2017
|
|||||||||||||||
Indexed common stocks
|
$
|
2,885.7
|
|
|
94.4
|
%
|
|
$
|
3,061.9
|
|
|
95.4
|
%
|
|
$
|
3,248.4
|
|
|
95.6
|
%
|
Managed common stocks
|
171.3
|
|
|
5.6
|
|
|
147.3
|
|
|
4.6
|
|
|
151.1
|
|
|
4.4
|
|
|||
Total common stocks
|
3,057.0
|
|
|
100.0
|
|
|
3,209.2
|
|
|
100.0
|
|
|
3,399.5
|
|
|
100.0
|
|
|||
Other risk investments
|
0.3
|
|
|
0
|
|
|
0.3
|
|
|
0
|
|
|
0.3
|
|
|
0
|
|
|||
Total common equities
|
$
|
3,057.3
|
|
|
100.0
|
%
|
|
$
|
3,209.5
|
|
|
100.0
|
%
|
|
$
|
3,399.8
|
|
|
100.0
|
%
|
ISSUER PURCHASES OF EQUITY SECURITIES
|
||||||||||||
2018
Calendar
Month
|
Total
Number of
Shares
Purchased
|
|
|
Average
Price
Paid
Per Share
|
|
|
Total Number of Shares
Purchased as Part of
Publicly Announced
Plans or Programs
|
|
|
Maximum Number of
Shares That May Yet be
Purchased Under the
Plans or Programs
|
|
|
July
|
653,756
|
|
|
$
|
59.26
|
|
|
657,867
|
|
|
24,342,133
|
|
August
|
4,489
|
|
|
60.21
|
|
|
662,356
|
|
|
24,337,644
|
|
|
September
|
2,951
|
|
|
67.97
|
|
|
665,307
|
|
|
24,334,693
|
|
|
Total
|
661,196
|
|
|
$
|
59.31
|
|
|
|
|
|
|
|
|
|
THE PROGRESSIVE CORPORATION
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
Date:
|
October 31, 2018
|
|
|
By: /s/ John P. Sauerland
|
|
|
|
|
John P. Sauerland
|
|
|
|
|
Vice President and Chief Financial Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.1
|
Subject to Section 5.2, the separation allowance payable to each Eligible Employee who is entitled to such allowance under Section 2 above shall be equal to the number of weeks of Compensation set forth in the table below, based on the Eligible Employee’s Grade Level and Years of Service as of his/her Separation Date:
|
Eligible Employees at Grade Levels 47 through 52
|
26 weeks of Compensation plus two additional weeks of Compensation for each full Year of Service in excess of 13 Years of Service, not to exceed an aggregate of 52 weeks of Compensation
|
(1) Eligible Employees at Grade Level 53 and (2) any other Eligible Employee who (i) has no assigned Grade Level, (ii) does not report directly to the Chief Executive Officer, and (iii) is designated in writing by (x) the Compensation Committee of the Company’s Board of Directors, if the Eligible Employee is an executive officer, or (y) the Company’s Chief Executive Officer and/or Chief Human Resources Officer, if the Eligible Employee is not an executive officer.
|
52 weeks of Compensation
|
(1) The Company’s Chief Executive Officer; (2) Eligible Employees who (i) report directly to him/her, and (ii) have no assigned Grade Level; and (3) any other Eligible Employee designated in writing by (i) the Compensation Committee of the Company’s Board of Directors, if the Eligible Employee is an executive officer, or (ii) the Company’s Chief Executive Officer and Chief Human Resources Officer, if the Eligible Employee is not an executive officer.
|
• Less than one Year of Service: 52 weeks of Compensation
• At least one, but less than two, Years of Service: 104 weeks of Compensation
• At least two Years of Service: 156 weeks of Compensation
|
1.
|
I have reviewed this quarterly report on Form 10-Q of The Progressive Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of The Progressive Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|