|
|
|
☒
|
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
☐
|
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
|
|
Ohio
|
|
34-0963169
|
||
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
||
|
|
|
|
|
6300 Wilson Mills Road,
|
Mayfield Village,
|
Ohio
|
|
44143
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Shares, $1.00 Par Value
|
PGR
|
New York Stock Exchange
|
Large accelerated filer
|
|
☒
|
|
Accelerated filer
|
|
☐
|
Non-accelerated filer
|
|
☐
|
|
Smaller reporting company
|
|
☐
|
|
|
|
|
Emerging growth company
|
|
☐
|
|
|
Three Months
|
|
Six Months
|
||||||||||||
Periods Ended June 30,
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
(millions — except per share amounts)
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Net premiums earned
|
$
|
8,824.7
|
|
|
$
|
7,634.2
|
|
|
$
|
17,284.5
|
|
|
$
|
14,808.2
|
|
Investment income
|
261.3
|
|
|
192.1
|
|
|
514.2
|
|
|
358.4
|
|
||||
Net realized gains (losses) on securities:
|
|
|
|
|
|
|
|
||||||||
Net realized gains (losses) on security sales
|
67.5
|
|
|
(9.6
|
)
|
|
113.6
|
|
|
97.4
|
|
||||
Net holding period gains (losses) on securities
|
112.4
|
|
|
53.5
|
|
|
505.1
|
|
|
(101.7
|
)
|
||||
Net impairment losses recognized in earnings
|
0
|
|
|
(11.1
|
)
|
|
(24.3
|
)
|
|
(11.1
|
)
|
||||
Total net realized gains (losses) on securities
|
179.9
|
|
|
32.8
|
|
|
594.4
|
|
|
(15.4
|
)
|
||||
Fees and other revenues
|
134.8
|
|
|
116.0
|
|
|
265.0
|
|
|
219.8
|
|
||||
Service revenues
|
50.0
|
|
|
42.9
|
|
|
92.6
|
|
|
77.1
|
|
||||
Total revenues
|
9,450.7
|
|
|
8,018.0
|
|
|
18,750.7
|
|
|
15,448.1
|
|
||||
Expenses
|
|
|
|
|
|
|
|
||||||||
Losses and loss adjustment expenses
|
6,138.1
|
|
|
5,375.3
|
|
|
11,897.1
|
|
|
10,246.1
|
|
||||
Policy acquisition costs
|
738.6
|
|
|
630.8
|
|
|
1,449.2
|
|
|
1,227.0
|
|
||||
Other underwriting expenses
|
1,231.5
|
|
|
1,046.9
|
|
|
2,402.7
|
|
|
2,027.1
|
|
||||
Investment expenses
|
6.2
|
|
|
6.2
|
|
|
12.4
|
|
|
12.2
|
|
||||
Service expenses
|
45.3
|
|
|
37.0
|
|
|
83.4
|
|
|
66.3
|
|
||||
Interest expense
|
47.4
|
|
|
41.7
|
|
|
94.8
|
|
|
78.5
|
|
||||
Total expenses
|
8,207.1
|
|
|
7,137.9
|
|
|
15,939.6
|
|
|
13,657.2
|
|
||||
Net Income
|
|
|
|
|
|
|
|
||||||||
Income before income taxes
|
1,243.6
|
|
|
880.1
|
|
|
2,811.1
|
|
|
1,790.9
|
|
||||
Provision for income taxes
|
264.6
|
|
|
178.9
|
|
|
749.3
|
|
|
359.9
|
|
||||
Net income
|
979.0
|
|
|
701.2
|
|
|
2,061.8
|
|
|
1,431.0
|
|
||||
Net (income) loss attributable to noncontrolling interest (NCI)
|
0.4
|
|
|
3.0
|
|
|
(4.0
|
)
|
|
(8.8
|
)
|
||||
Net income attributable to Progressive
|
979.4
|
|
|
704.2
|
|
|
2,057.8
|
|
|
1,422.2
|
|
||||
Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
||||||||
Changes in:
|
|
|
|
|
|
|
|
||||||||
Total net unrealized gains (losses) on fixed-maturity securities
|
277.4
|
|
|
(50.1
|
)
|
|
578.5
|
|
|
(204.6
|
)
|
||||
Net unrealized losses on forecasted transactions
|
0.2
|
|
|
0.2
|
|
|
0.4
|
|
|
0.4
|
|
||||
Other comprehensive income (loss)
|
277.6
|
|
|
(49.9
|
)
|
|
578.9
|
|
|
(204.2
|
)
|
||||
Other comprehensive (income) loss attributable to NCI
|
(2.6
|
)
|
|
0.6
|
|
|
(4.9
|
)
|
|
4.6
|
|
||||
Comprehensive income attributable to Progressive
|
$
|
1,254.4
|
|
|
$
|
654.9
|
|
|
$
|
2,631.8
|
|
|
$
|
1,222.6
|
|
Computation of Earnings Per Common Share
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Progressive
|
$
|
979.4
|
|
|
$
|
704.2
|
|
|
$
|
2,057.8
|
|
|
$
|
1,422.2
|
|
Less: Preferred share dividends
|
6.7
|
|
|
6.7
|
|
|
13.4
|
|
|
7.9
|
|
||||
Net income available to common shareholders
|
$
|
972.7
|
|
|
$
|
697.5
|
|
|
$
|
2,044.4
|
|
|
$
|
1,414.3
|
|
Average common shares outstanding - Basic
|
583.6
|
|
|
582.0
|
|
|
583.5
|
|
|
582.0
|
|
||||
Net effect of dilutive stock-based compensation
|
3.3
|
|
|
3.8
|
|
|
3.2
|
|
|
3.6
|
|
||||
Total average equivalent common shares - Diluted
|
586.9
|
|
|
585.8
|
|
|
586.7
|
|
|
585.6
|
|
||||
Basic: Earnings per common share
|
$
|
1.67
|
|
|
$
|
1.20
|
|
|
$
|
3.50
|
|
|
$
|
2.43
|
|
Diluted: Earnings per common share
|
$
|
1.66
|
|
|
$
|
1.19
|
|
|
$
|
3.48
|
|
|
$
|
2.42
|
|
|
June 30,
|
|
December 31,
|
||||||||
(millions — except per share amounts)
|
2019
|
|
|
2018
|
|
|
2018
|
|
|||
Assets
|
|
|
|
|
|
||||||
Available-for-sale securities, at fair value:
|
|
|
|
|
|
||||||
Fixed maturities (amortized cost: $30,588.2, $24,061.8, and $28,255.9)
|
$
|
31,188.2
|
|
|
$
|
23,789.2
|
|
|
$
|
28,111.5
|
|
Short-term investments (amortized cost: $1,360.9, $3,231.2, and $1,795.9)
|
1,360.9
|
|
|
3,231.2
|
|
|
1,795.9
|
|
|||
Total available-for-sale securities
|
32,549.1
|
|
|
27,020.4
|
|
|
29,907.4
|
|
|||
Equity securities, at fair value:
|
|
|
|
|
|
||||||
Nonredeemable preferred stocks (cost: $1,060.3, $677.0, and $1,002.6)
|
1,130.0
|
|
|
758.6
|
|
|
1,033.9
|
|
|||
Common equities (cost: $1,203.7, $1,314.0, and $1,148.9)
|
3,135.5
|
|
|
3,142.2
|
|
|
2,626.1
|
|
|||
Total equity securities
|
4,265.5
|
|
|
3,900.8
|
|
|
3,660.0
|
|
|||
Total investments
|
36,814.6
|
|
|
30,921.2
|
|
|
33,567.4
|
|
|||
Cash and cash equivalents
|
91.9
|
|
|
154.8
|
|
|
69.5
|
|
|||
Restricted cash
|
1.0
|
|
|
2.9
|
|
|
5.5
|
|
|||
Total cash, cash equivalents, and restricted cash
|
92.9
|
|
|
157.7
|
|
|
75.0
|
|
|||
Accrued investment income
|
187.5
|
|
|
146.3
|
|
|
190.8
|
|
|||
Premiums receivable, net of allowance for doubtful accounts of $240.7, $210.5, and $252.1
|
7,167.1
|
|
|
6,230.2
|
|
|
6,497.1
|
|
|||
Reinsurance recoverables
|
3,051.5
|
|
|
2,410.7
|
|
|
2,696.1
|
|
|||
Prepaid reinsurance premiums
|
338.0
|
|
|
289.8
|
|
|
309.7
|
|
|||
Deferred acquisition costs
|
1,047.4
|
|
|
895.7
|
|
|
951.6
|
|
|||
Property and equipment, net of accumulated depreciation of $1,105.6, $984.7, and $1,033.2
|
1,174.9
|
|
|
1,116.4
|
|
|
1,131.7
|
|
|||
Goodwill
|
452.7
|
|
|
452.7
|
|
|
452.7
|
|
|||
Intangible assets, net of accumulated amortization of $283.6, $211.7, and $247.7
|
258.7
|
|
|
330.6
|
|
|
294.6
|
|
|||
Net deferred income taxes
|
0
|
|
|
0
|
|
|
43.2
|
|
|||
Other assets
|
738.9
|
|
|
412.2
|
|
|
365.1
|
|
|||
Total assets
|
$
|
51,324.2
|
|
|
$
|
43,363.5
|
|
|
$
|
46,575.0
|
|
Liabilities
|
|
|
|
|
|
||||||
Unearned premiums
|
$
|
11,796.7
|
|
|
$
|
10,245.9
|
|
|
$
|
10,686.5
|
|
Loss and loss adjustment expense reserves
|
16,568.6
|
|
|
14,070.8
|
|
|
15,400.8
|
|
|||
Net deferred income taxes
|
134.5
|
|
|
46.0
|
|
|
0
|
|
|||
Accounts payable, accrued expenses, and other liabilities
|
4,867.5
|
|
|
3,922.3
|
|
|
5,046.5
|
|
|||
Debt1
|
4,406.0
|
|
|
3,859.5
|
|
|
4,404.9
|
|
|||
Total liabilities
|
37,773.3
|
|
|
32,144.5
|
|
|
35,538.7
|
|
|||
Redeemable noncontrolling interest (NCI)2
|
220.1
|
|
|
218.2
|
|
|
214.5
|
|
|||
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)
|
493.9
|
|
|
493.9
|
|
|
493.9
|
|
|||
Common shares, $1.00 par value (authorized 900.0; issued 797.5, including treasury shares of 213.4, 215.0, and 214.3)
|
584.1
|
|
|
582.5
|
|
|
583.2
|
|
|||
Paid-in capital
|
1,523.3
|
|
|
1,425.9
|
|
|
1,479.0
|
|
|||
Retained earnings
|
10,276.4
|
|
|
8,720.4
|
|
|
8,386.6
|
|
|||
Accumulated other comprehensive income (loss):
|
|
|
|
|
|
||||||
Net unrealized gains (losses) on fixed-maturity securities
|
472.9
|
|
|
(210.9
|
)
|
|
(105.6
|
)
|
|||
Net unrealized losses on forecasted transactions
|
(16.8
|
)
|
|
(17.6
|
)
|
|
(17.2
|
)
|
|||
Accumulated other comprehensive (income) loss attributable to NCI
|
(3.0
|
)
|
|
6.6
|
|
|
1.9
|
|
|||
Total accumulated other comprehensive income (loss) attributable to Progressive
|
453.1
|
|
|
(221.9
|
)
|
|
(120.9
|
)
|
|||
Total shareholders’ equity
|
13,330.8
|
|
|
11,000.8
|
|
|
10,821.8
|
|
|||
Total liabilities, redeemable NCI, and shareholders’ equity
|
$
|
51,324.2
|
|
|
$
|
43,363.5
|
|
|
$
|
46,575.0
|
|
Periods Ended June 30,
|
Three Months
|
|
Six Months
|
||||||||||||
(millions — except per share amounts)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Serial Preferred Shares, No Par Value
|
|
|
|
|
|
|
|
||||||||
Balance, Beginning of period
|
$
|
493.9
|
|
|
$
|
493.9
|
|
|
$
|
493.9
|
|
|
$
|
0
|
|
Issuance of Serial Preferred Shares, Series B
|
0
|
|
|
0
|
|
|
0
|
|
|
493.9
|
|
||||
Balance, End of period
|
493.9
|
|
|
493.9
|
|
|
493.9
|
|
|
493.9
|
|
||||
Common Shares, $1.00 Par Value
|
|
|
|
|
|
|
|
||||||||
Balance, Beginning of period
|
584.0
|
|
|
582.4
|
|
|
583.2
|
|
|
581.7
|
|
||||
Treasury shares purchased
|
(0.1
|
)
|
|
0
|
|
|
(0.5
|
)
|
|
(0.7
|
)
|
||||
Net restricted equity awards issued/vested
|
0.2
|
|
|
0.1
|
|
|
1.4
|
|
|
1.5
|
|
||||
Balance, End of period
|
584.1
|
|
|
582.5
|
|
|
584.1
|
|
|
582.5
|
|
||||
Paid-In Capital
|
|
|
|
|
|
|
|
||||||||
Balance, Beginning of period
|
1,496.6
|
|
|
1,401.6
|
|
|
1,479.0
|
|
|
1,389.2
|
|
||||
Amortization of equity-based compensation
|
26.5
|
|
|
20.3
|
|
|
46.1
|
|
|
37.5
|
|
||||
Treasury shares purchased
|
0
|
|
|
(0.1
|
)
|
|
(1.1
|
)
|
|
(1.7
|
)
|
||||
Net restricted equity awards issued/vested
|
(0.2
|
)
|
|
(0.1
|
)
|
|
(1.4
|
)
|
|
(1.5
|
)
|
||||
Reinvested dividends on restricted stock units
|
0.6
|
|
|
(0.3
|
)
|
|
0.9
|
|
|
(0.8
|
)
|
||||
Adjustment to carrying amount of redeemable noncontrolling interest
|
(0.2
|
)
|
|
4.5
|
|
|
(0.2
|
)
|
|
3.2
|
|
||||
Balance, End of period
|
1,523.3
|
|
|
1,425.9
|
|
|
1,523.3
|
|
|
1,425.9
|
|
||||
Retained Earnings
|
|
|
|
|
|
|
|
||||||||
Balance, Beginning of period
|
9,358.1
|
|
|
8,017.9
|
|
|
8,386.6
|
|
|
6,031.7
|
|
||||
Net income attributable to Progressive
|
979.4
|
|
|
704.2
|
|
|
2,057.8
|
|
|
1,422.2
|
|
||||
Treasury shares purchased
|
(2.2
|
)
|
|
(2.1
|
)
|
|
(26.8
|
)
|
|
(37.0
|
)
|
||||
Cash dividends declared on common shares ($0.10, $0, $0.20, and $0 per share)
|
(58.3
|
)
|
|
0
|
|
|
(116.6
|
)
|
|
0
|
|
||||
Cash dividends declared on Serial Preferred Shares, Series B ($0, $0, $26.875, and $0 per share)
|
0
|
|
|
0
|
|
|
(13.4
|
)
|
|
0
|
|
||||
Reinvested dividends on restricted stock units
|
(0.6
|
)
|
|
0.3
|
|
|
(0.9
|
)
|
|
0.8
|
|
||||
Cumulative effect of change in accounting principle
|
0
|
|
|
0
|
|
|
0
|
|
|
1,300.2
|
|
||||
Reclassification of disproportionate tax effects
|
0
|
|
|
0
|
|
|
0
|
|
|
4.3
|
|
||||
Other, net
|
0
|
|
|
0.1
|
|
|
(10.3
|
)
|
|
(1.8
|
)
|
||||
Balance, End of period
|
10,276.4
|
|
|
8,720.4
|
|
|
10,276.4
|
|
|
8,720.4
|
|
||||
Accumulated Other Comprehensive Income (Loss) Attributable to Progressive
|
|
|
|
|
|
|
|
||||||||
Balance, Beginning of period
|
178.1
|
|
|
(172.6
|
)
|
|
(120.9
|
)
|
|
1,282.2
|
|
||||
Attributable to noncontrolling interest
|
(2.6
|
)
|
|
0.6
|
|
|
(4.9
|
)
|
|
4.6
|
|
||||
Other comprehensive income
|
277.6
|
|
|
(49.9
|
)
|
|
578.9
|
|
|
(204.2
|
)
|
||||
Cumulative effect of change in accounting principle
|
0
|
|
|
0
|
|
|
0
|
|
|
(1,300.2
|
)
|
||||
Reclassification of disproportionate tax effects
|
0
|
|
|
0
|
|
|
0
|
|
|
(4.3
|
)
|
||||
Balance, End of period
|
453.1
|
|
|
(221.9
|
)
|
|
453.1
|
|
|
(221.9
|
)
|
||||
Total Shareholders’ Equity
|
$
|
13,330.8
|
|
|
$
|
11,000.8
|
|
|
$
|
13,330.8
|
|
|
$
|
11,000.8
|
|
Six Months Ended June 30,
|
2019
|
|
|
2018
|
|
||
(millions)
|
|
|
|
||||
Cash Flows From Operating Activities
|
|
|
|
||||
Net income
|
$
|
2,061.8
|
|
|
$
|
1,431.0
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation
|
114.6
|
|
|
86.6
|
|
||
Amortization of intangible assets
|
35.9
|
|
|
36.0
|
|
||
Net amortization of fixed-income securities
|
1.9
|
|
|
23.2
|
|
||
Amortization of equity-based compensation
|
46.0
|
|
|
38.5
|
|
||
Net realized (gains) losses on securities
|
(594.4
|
)
|
|
15.4
|
|
||
Net (gains) losses on disposition of property and equipment
|
(1.6
|
)
|
|
1.7
|
|
||
Changes in:
|
|
|
|
||||
Premiums receivable
|
(670.0
|
)
|
|
(807.7
|
)
|
||
Reinsurance recoverables
|
(355.4
|
)
|
|
(137.3
|
)
|
||
Prepaid reinsurance premiums
|
(28.3
|
)
|
|
(86.5
|
)
|
||
Deferred acquisition costs
|
(95.8
|
)
|
|
(115.2
|
)
|
||
Income taxes
|
157.4
|
|
|
2.0
|
|
||
Unearned premiums
|
1,110.2
|
|
|
1,342.4
|
|
||
Loss and loss adjustment expense reserves
|
1,167.8
|
|
|
983.9
|
|
||
Accounts payable, accrued expenses, and other liabilities
|
605.8
|
|
|
700.4
|
|
||
Other, net
|
(181.2
|
)
|
|
(31.1
|
)
|
||
Net cash provided by operating activities
|
3,374.7
|
|
|
3,483.3
|
|
||
Cash Flows From Investing Activities
|
|
|
|
||||
Purchases:
|
|
|
|
||||
Fixed maturities
|
(13,008.4
|
)
|
|
(10,780.0
|
)
|
||
Equity securities
|
(230.7
|
)
|
|
(136.4
|
)
|
||
Sales:
|
|
|
|
||||
Fixed maturities
|
8,162.1
|
|
|
3,916.1
|
|
||
Equity securities
|
131.6
|
|
|
460.0
|
|
||
Maturities, paydowns, calls, and other:
|
|
|
|
||||
Fixed maturities
|
2,589.0
|
|
|
2,936.2
|
|
||
Equity securities
|
0
|
|
|
15.0
|
|
||
Net sales (purchases) of short-term investments
|
458.3
|
|
|
(343.8
|
)
|
||
Net unsettled security transactions
|
297.6
|
|
|
367.9
|
|
||
Purchases of property and equipment
|
(203.2
|
)
|
|
(102.0
|
)
|
||
Sales of property and equipment
|
24.6
|
|
|
6.7
|
|
||
Acquisition of additional shares of ARX Holding Corp.
|
(11.2
|
)
|
|
(295.9
|
)
|
||
Net cash used in investing activities
|
(1,790.3
|
)
|
|
(3,956.2
|
)
|
||
Cash Flows From Financing Activities
|
|
|
|
||||
Dividends paid to common shareholders
|
(1,526.3
|
)
|
|
(654.9
|
)
|
||
Dividends paid to preferred shareholders
|
(13.4
|
)
|
|
0
|
|
||
Acquisition of treasury shares for restricted stock tax liabilities
|
(28.4
|
)
|
|
(39.0
|
)
|
||
Acquisition of treasury shares acquired in open market
|
0
|
|
|
(0.4
|
)
|
||
Proceeds from exercise of equity options
|
1.6
|
|
|
3.3
|
|
||
Net proceeds from issuance of Serial Preferred Shares, Series B
|
0
|
|
|
493.9
|
|
||
Net proceeds from debt issuances
|
0
|
|
|
589.5
|
|
||
Payments of debt
|
0
|
|
|
(37.1
|
)
|
||
Net cash provided by (used in) financing activities
|
(1,566.5
|
)
|
|
355.3
|
|
||
Increase (decrease) in cash, cash equivalents, and restricted cash
|
17.9
|
|
|
(117.6
|
)
|
||
Cash, cash equivalents, and restricted cash – January 1
|
75.0
|
|
|
275.3
|
|
||
Cash, cash equivalents, and restricted cash – June 30
|
$
|
92.9
|
|
|
$
|
157.7
|
|
($ in millions)
|
Cost
|
|
|
Gross
Unrealized Gains
|
|
|
Gross
Unrealized
Losses
|
|
|
Net
Holding Period Gains
(Losses)
|
|
|
Fair
Value
|
|
|
% of
Total Fair
Value
|
|
|||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S. government obligations
|
$
|
12,121.9
|
|
|
$
|
259.7
|
|
|
$
|
(2.2
|
)
|
|
$
|
0
|
|
|
$
|
12,379.4
|
|
|
33.6
|
%
|
State and local government obligations
|
1,563.6
|
|
|
27.4
|
|
|
(1.3
|
)
|
|
0
|
|
|
1,589.7
|
|
|
4.3
|
|
|||||
Corporate debt securities
|
7,176.7
|
|
|
210.1
|
|
|
(1.8
|
)
|
|
0.7
|
|
|
7,385.7
|
|
|
20.1
|
|
|||||
Residential mortgage-backed securities
|
660.4
|
|
|
6.2
|
|
|
(1.4
|
)
|
|
0
|
|
|
665.2
|
|
|
1.8
|
|
|||||
Commercial mortgage-backed securities
|
4,361.2
|
|
|
83.3
|
|
|
(2.6
|
)
|
|
0
|
|
|
4,441.9
|
|
|
12.1
|
|
|||||
Other asset-backed securities
|
4,478.2
|
|
|
19.9
|
|
|
(1.0
|
)
|
|
0.1
|
|
|
4,497.2
|
|
|
12.2
|
|
|||||
Redeemable preferred stocks
|
226.2
|
|
|
3.4
|
|
|
(1.6
|
)
|
|
1.1
|
|
|
229.1
|
|
|
0.6
|
|
|||||
Total fixed maturities
|
30,588.2
|
|
|
610.0
|
|
|
(11.9
|
)
|
|
1.9
|
|
|
31,188.2
|
|
|
84.7
|
|
|||||
Short-term investments
|
1,360.9
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
1,360.9
|
|
|
3.7
|
|
|||||
Total available-for-sale securities
|
31,949.1
|
|
|
610.0
|
|
|
(11.9
|
)
|
|
1.9
|
|
|
32,549.1
|
|
|
88.4
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Nonredeemable preferred stocks
|
1,060.3
|
|
|
0
|
|
|
0
|
|
|
69.7
|
|
|
1,130.0
|
|
|
3.1
|
|
|||||
Common equities
|
1,203.7
|
|
|
0
|
|
|
0
|
|
|
1,931.8
|
|
|
3,135.5
|
|
|
8.5
|
|
|||||
Total equity securities
|
2,264.0
|
|
|
0
|
|
|
0
|
|
|
2,001.5
|
|
|
4,265.5
|
|
|
11.6
|
|
|||||
Total portfolio1,2
|
$
|
34,213.1
|
|
|
$
|
610.0
|
|
|
$
|
(11.9
|
)
|
|
$
|
2,003.4
|
|
|
$
|
36,814.6
|
|
|
100.0
|
%
|
($ in millions)
|
Cost
|
|
|
Gross
Unrealized Gains
|
|
|
Gross
Unrealized
Losses
|
|
|
Net
Holding Period Gains
(Losses)
|
|
|
Fair
Value
|
|
|
% of
Total Fair
Value
|
|
|||||
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S. government obligations
|
$
|
8,005.8
|
|
|
$
|
0.9
|
|
|
$
|
(141.3
|
)
|
|
$
|
0
|
|
|
$
|
7,865.4
|
|
|
25.4
|
%
|
State and local government obligations
|
1,678.9
|
|
|
4.3
|
|
|
(15.9
|
)
|
|
0
|
|
|
1,667.3
|
|
|
5.4
|
|
|||||
Corporate debt securities
|
7,422.4
|
|
|
4.2
|
|
|
(94.3
|
)
|
|
(2.0
|
)
|
|
7,330.3
|
|
|
23.7
|
|
|||||
Residential mortgage-backed securities
|
819.6
|
|
|
8.4
|
|
|
(5.4
|
)
|
|
0
|
|
|
822.6
|
|
|
2.7
|
|
|||||
Commercial mortgage-backed securities
|
2,725.5
|
|
|
2.9
|
|
|
(31.5
|
)
|
|
0
|
|
|
2,696.9
|
|
|
8.7
|
|
|||||
Other asset-backed securities
|
3,189.2
|
|
|
2.0
|
|
|
(13.7
|
)
|
|
0.1
|
|
|
3,177.6
|
|
|
10.3
|
|
|||||
Redeemable preferred stocks
|
220.4
|
|
|
14.1
|
|
|
(2.0
|
)
|
|
(3.4
|
)
|
|
229.1
|
|
|
0.7
|
|
|||||
Total fixed maturities
|
24,061.8
|
|
|
36.8
|
|
|
(304.1
|
)
|
|
(5.3
|
)
|
|
23,789.2
|
|
|
76.9
|
|
|||||
Short-term investments
|
3,231.2
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
3,231.2
|
|
|
10.5
|
|
|||||
Total available-for-sale securities
|
27,293.0
|
|
|
36.8
|
|
|
(304.1
|
)
|
|
(5.3
|
)
|
|
27,020.4
|
|
|
87.4
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Nonredeemable preferred stocks
|
677.0
|
|
|
0
|
|
|
0
|
|
|
81.6
|
|
|
758.6
|
|
|
2.4
|
|
|||||
Common equities
|
1,314.0
|
|
|
0
|
|
|
0
|
|
|
1,828.2
|
|
|
3,142.2
|
|
|
10.2
|
|
|||||
Total equity securities
|
1,991.0
|
|
|
0
|
|
|
0
|
|
|
1,909.8
|
|
|
3,900.8
|
|
|
12.6
|
|
|||||
Total portfolio1,2
|
$
|
29,284.0
|
|
|
$
|
36.8
|
|
|
$
|
(304.1
|
)
|
|
$
|
1,904.5
|
|
|
$
|
30,921.2
|
|
|
100.0
|
%
|
($ in millions)
|
Cost
|
|
|
Gross
Unrealized Gains
|
|
|
Gross
Unrealized
Losses
|
|
|
Net
Holding Period Gains
(Losses)
|
|
|
Fair
Value
|
|
|
% of
Total Fair
Value
|
|
|||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S. government obligations
|
$
|
9,897.4
|
|
|
$
|
71.2
|
|
|
$
|
(52.1
|
)
|
|
$
|
0
|
|
|
$
|
9,916.5
|
|
|
29.5
|
%
|
State and local government obligations
|
1,654.6
|
|
|
7.3
|
|
|
(12.8
|
)
|
|
0
|
|
|
1,649.1
|
|
|
4.9
|
|
|||||
Corporate debt securities
|
8,808.5
|
|
|
13.6
|
|
|
(125.3
|
)
|
|
(2.5
|
)
|
|
8,694.3
|
|
|
25.9
|
|
|||||
Residential mortgage-backed securities
|
733.5
|
|
|
6.0
|
|
|
(5.1
|
)
|
|
0
|
|
|
734.4
|
|
|
2.2
|
|
|||||
Commercial mortgage-backed securities
|
3,332.8
|
|
|
7.8
|
|
|
(39.0
|
)
|
|
0
|
|
|
3,301.6
|
|
|
9.8
|
|
|||||
Other asset-backed securities
|
3,585.4
|
|
|
3.6
|
|
|
(11.8
|
)
|
|
0.1
|
|
|
3,577.3
|
|
|
10.7
|
|
|||||
Redeemable preferred stocks
|
243.7
|
|
|
5.9
|
|
|
(3.5
|
)
|
|
(7.8
|
)
|
|
238.3
|
|
|
0.7
|
|
|||||
Total fixed maturities
|
28,255.9
|
|
|
115.4
|
|
|
(249.6
|
)
|
|
(10.2
|
)
|
|
28,111.5
|
|
|
83.7
|
|
|||||
Short-term investments
|
1,795.9
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
1,795.9
|
|
|
5.4
|
|
|||||
Total available-for-sale securities
|
30,051.8
|
|
|
115.4
|
|
|
(249.6
|
)
|
|
(10.2
|
)
|
|
29,907.4
|
|
|
89.1
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Nonredeemable preferred stocks
|
1,002.6
|
|
|
0
|
|
|
0
|
|
|
31.3
|
|
|
1,033.9
|
|
|
3.1
|
|
|||||
Common equities
|
1,148.9
|
|
|
0
|
|
|
0
|
|
|
1,477.2
|
|
|
2,626.1
|
|
|
7.8
|
|
|||||
Total equity securities
|
2,151.5
|
|
|
0
|
|
|
0
|
|
|
1,508.5
|
|
|
3,660.0
|
|
|
10.9
|
|
|||||
Total portfolio1,2
|
$
|
32,203.3
|
|
|
$
|
115.4
|
|
|
$
|
(249.6
|
)
|
|
$
|
1,498.3
|
|
|
$
|
33,567.4
|
|
|
100.0
|
%
|
|
June 30,
|
|
|
||||||||
(millions)
|
2019
|
|
|
2018
|
|
|
December 31, 2018
|
|
|||
Fixed maturities:
|
|
|
|
|
|
||||||
State and local government obligations
|
$
|
3.5
|
|
|
$
|
3.6
|
|
|
$
|
3.6
|
|
Corporate debt securities
|
91.3
|
|
|
170.3
|
|
|
158.9
|
|
|||
Other asset-backed securities
|
3.5
|
|
|
5.5
|
|
|
4.5
|
|
|||
Redeemable preferred stocks
|
86.7
|
|
|
67.3
|
|
|
77.7
|
|
|||
Total hybrid securities
|
$
|
185.0
|
|
|
$
|
246.7
|
|
|
$
|
244.7
|
|
(millions)
|
Cost
|
|
|
Fair Value
|
|
||
Less than one year
|
$
|
5,388.1
|
|
|
$
|
5,394.3
|
|
One to five years
|
18,518.4
|
|
|
18,833.0
|
|
||
Five to ten years
|
6,551.9
|
|
|
6,829.2
|
|
||
Ten years or greater
|
129.8
|
|
|
131.7
|
|
||
Total
|
$
|
30,588.2
|
|
|
$
|
31,188.2
|
|
|
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
|
|
||||||||||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. government obligations
|
16
|
|
$
|
572.8
|
|
$
|
(2.2
|
)
|
0
|
|
$
|
0
|
|
$
|
0
|
|
|
16
|
|
$
|
572.8
|
|
$
|
(2.2
|
)
|
State and local government obligations
|
85
|
|
398.3
|
|
(1.3
|
)
|
11
|
|
133.6
|
|
(0.1
|
)
|
|
74
|
|
264.7
|
|
(1.2
|
)
|
||||||
Corporate debt securities
|
68
|
|
928.9
|
|
(1.8
|
)
|
4
|
|
42.3
|
|
(0.1
|
)
|
|
64
|
|
886.6
|
|
(1.7
|
)
|
||||||
Residential mortgage-backed securities
|
43
|
|
203.8
|
|
(1.4
|
)
|
8
|
|
24.5
|
|
0
|
|
|
35
|
|
179.3
|
|
(1.4
|
)
|
||||||
Commercial mortgage-backed securities
|
57
|
|
963.7
|
|
(2.6
|
)
|
26
|
|
485.5
|
|
(1.1
|
)
|
|
31
|
|
478.2
|
|
(1.5
|
)
|
||||||
Other asset-backed securities
|
92
|
|
674.6
|
|
(1.0
|
)
|
23
|
|
265.6
|
|
(0.2
|
)
|
|
69
|
|
409.0
|
|
(0.8
|
)
|
||||||
Redeemable preferred stocks
|
2
|
|
26.3
|
|
(1.6
|
)
|
1
|
|
15.0
|
|
(0.5
|
)
|
|
1
|
|
11.3
|
|
(1.1
|
)
|
||||||
Total fixed maturities
|
363
|
|
$
|
3,768.4
|
|
$
|
(11.9
|
)
|
73
|
|
$
|
966.5
|
|
$
|
(2.0
|
)
|
|
290
|
|
$
|
2,801.9
|
|
$
|
(9.9
|
)
|
|
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
|
|
||||||||||||
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. government obligations
|
70
|
|
$
|
7,503.2
|
|
$
|
(141.3
|
)
|
33
|
|
$
|
4,543.5
|
|
$
|
(73.6
|
)
|
|
37
|
|
$
|
2,959.7
|
|
$
|
(67.7
|
)
|
State and local government obligations
|
355
|
|
1,050.9
|
|
(15.9
|
)
|
219
|
|
631.9
|
|
(7.1
|
)
|
|
136
|
|
419.0
|
|
(8.8
|
)
|
||||||
Corporate debt securities
|
391
|
|
6,153.5
|
|
(94.3
|
)
|
322
|
|
5,439.3
|
|
(77.2
|
)
|
|
69
|
|
714.2
|
|
(17.1
|
)
|
||||||
Residential mortgage-backed securities
|
227
|
|
380.3
|
|
(5.4
|
)
|
52
|
|
188.6
|
|
(0.9
|
)
|
|
175
|
|
191.7
|
|
(4.5
|
)
|
||||||
Commercial mortgage-backed securities
|
142
|
|
2,300.9
|
|
(31.5
|
)
|
85
|
|
1,371.4
|
|
(14.4
|
)
|
|
57
|
|
929.5
|
|
(17.1
|
)
|
||||||
Other asset-backed securities
|
219
|
|
2,479.7
|
|
(13.7
|
)
|
148
|
|
2,055.1
|
|
(8.5
|
)
|
|
71
|
|
424.6
|
|
(5.2
|
)
|
||||||
Redeemable preferred stocks
|
3
|
|
30.2
|
|
(2.0
|
)
|
1
|
|
4.6
|
|
(0.2
|
)
|
|
2
|
|
25.6
|
|
(1.8
|
)
|
||||||
Total fixed maturities
|
1,407
|
|
$
|
19,898.7
|
|
$
|
(304.1
|
)
|
860
|
|
$
|
14,234.4
|
|
$
|
(181.9
|
)
|
|
547
|
|
$
|
5,664.3
|
|
$
|
(122.2
|
)
|
|
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, 2018
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. government obligations
|
51
|
|
$
|
4,438.0
|
|
$
|
(52.1
|
)
|
2
|
|
$
|
126.6
|
|
$
|
(0.1
|
)
|
|
49
|
|
$
|
4,311.4
|
|
$
|
(52.0
|
)
|
State and local government obligations
|
299
|
|
972.4
|
|
(12.8
|
)
|
49
|
|
192.7
|
|
(0.3
|
)
|
|
250
|
|
779.7
|
|
(12.5
|
)
|
||||||
Corporate debt securities
|
368
|
|
6,723.3
|
|
(125.3
|
)
|
133
|
|
2,613.3
|
|
(33.4
|
)
|
|
235
|
|
4,110.0
|
|
(91.9
|
)
|
||||||
Residential mortgage-backed securities
|
228
|
|
450.2
|
|
(5.1
|
)
|
32
|
|
248.8
|
|
(0.8
|
)
|
|
196
|
|
201.4
|
|
(4.3
|
)
|
||||||
Commercial mortgage-backed securities
|
140
|
|
2,328.5
|
|
(39.0
|
)
|
48
|
|
741.2
|
|
(8.9
|
)
|
|
92
|
|
1,587.3
|
|
(30.1
|
)
|
||||||
Other asset-backed securities
|
203
|
|
2,691.3
|
|
(11.8
|
)
|
84
|
|
1,551.7
|
|
(3.2
|
)
|
|
119
|
|
1,139.6
|
|
(8.6
|
)
|
||||||
Redeemable preferred stocks
|
3
|
|
48.5
|
|
(3.5
|
)
|
1
|
|
18.9
|
|
(0.6
|
)
|
|
2
|
|
29.6
|
|
(2.9
|
)
|
||||||
Total fixed maturities
|
1,292
|
|
$
|
17,652.2
|
|
$
|
(249.6
|
)
|
349
|
|
$
|
5,493.2
|
|
$
|
(47.3
|
)
|
|
943
|
|
$
|
12,159.0
|
|
$
|
(202.3
|
)
|
|
June 30,
|
|
December 31,
2018 |
|
|||||||
(millions)
|
2019
|
|
|
2018
|
|
|
|||||
Fixed maturities:
|
|
|
|
|
|
||||||
Residential mortgage-backed securities
|
$
|
(19.7
|
)
|
|
$
|
(19.7
|
)
|
|
$
|
(19.7
|
)
|
Commercial mortgage-backed securities
|
(0.1
|
)
|
|
(0.3
|
)
|
|
(0.1
|
)
|
|||
Total fixed maturities
|
$
|
(19.8
|
)
|
|
$
|
(20.0
|
)
|
|
$
|
(19.8
|
)
|
|
Three Months Ended June 30, 2019
|
||||||||||
|
Mortgage-Backed
|
|
|
||||||||
(millions)
|
Residential
|
|
|
Commercial
|
|
|
Total
|
|
|||
Balance at March 31, 2019
|
$
|
0
|
|
|
$
|
0.5
|
|
|
$
|
0.5
|
|
Change in recoveries of future cash flows expected to be collected1
|
0
|
|
|
0
|
|
|
0
|
|
|||
Balance at June 30, 2019
|
$
|
0
|
|
|
$
|
0.5
|
|
|
$
|
0.5
|
|
|
|
|
|
|
|
||||||
|
Six Months Ended June 30, 2019
|
||||||||||
|
Mortgage-Backed
|
|
|
||||||||
(millions)
|
Residential
|
|
|
Commercial
|
|
|
Total
|
|
|||
Balance at December 31, 2018
|
$
|
0
|
|
|
$
|
0.5
|
|
|
$
|
0.5
|
|
Change in recoveries of future cash flows expected to be collected1
|
0
|
|
|
0
|
|
|
0
|
|
|||
Balance at June 30, 2019
|
$
|
0
|
|
|
$
|
0.5
|
|
|
$
|
0.5
|
|
|
Three Months Ended June 30, 2018
|
||||||||||
|
Mortgage-Backed
|
|
|
||||||||
(millions)
|
Residential
|
|
|
Commercial
|
|
|
Total
|
|
|||
Balance at March 31, 2018
|
$
|
0
|
|
|
$
|
0.5
|
|
|
$
|
0.5
|
|
Change in recoveries of future cash flows expected to be collected1
|
0.3
|
|
|
0
|
|
|
0.3
|
|
|||
Balance at June 30, 2018
|
$
|
0.3
|
|
|
$
|
0.5
|
|
|
$
|
0.8
|
|
|
|
|
|
|
|
||||||
|
Six Months Ended June 30, 2018
|
||||||||||
|
Mortgage-Backed
|
|
|
||||||||
(millions)
|
Residential
|
|
|
Commercial
|
|
|
Total
|
|
|||
Balance at December 31, 2017
|
$
|
0
|
|
|
$
|
0.5
|
|
|
$
|
0.5
|
|
Change in recoveries of future cash flows expected to be collected1
|
0.3
|
|
|
0
|
|
|
0.3
|
|
|||
Balance at June 30, 2018
|
$
|
0.3
|
|
|
$
|
0.5
|
|
|
$
|
0.8
|
|
|
Three Months
|
|
Six Months
|
||||||||||||
(millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Gross realized gains on security sales
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. government obligations
|
$
|
34.9
|
|
|
$
|
1.7
|
|
|
$
|
71.5
|
|
|
$
|
1.7
|
|
State and local government obligations
|
0.6
|
|
|
0.6
|
|
|
2.2
|
|
|
9.2
|
|
||||
Corporate and other debt securities
|
31.1
|
|
|
0.3
|
|
|
47.2
|
|
|
0.4
|
|
||||
Residential mortgage-backed securities
|
0.2
|
|
|
0
|
|
|
0.2
|
|
|
0
|
|
||||
Commercial mortgage-backed securities
|
2.9
|
|
|
0.3
|
|
|
3.6
|
|
|
2.0
|
|
||||
Other asset-backed securities
|
0.7
|
|
|
0.1
|
|
|
0.7
|
|
|
0.1
|
|
||||
Redeemable preferred stocks
|
0
|
|
|
3.2
|
|
|
0
|
|
|
4.3
|
|
||||
Total available-for-sale securities
|
70.4
|
|
|
6.2
|
|
|
125.4
|
|
|
17.7
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Nonredeemable preferred stocks
|
11.7
|
|
|
0
|
|
|
16.6
|
|
|
3.6
|
|
||||
Common equities
|
0.2
|
|
|
18.5
|
|
|
4.7
|
|
|
138.4
|
|
||||
Total equity securities
|
11.9
|
|
|
18.5
|
|
|
21.3
|
|
|
142.0
|
|
||||
Subtotal gross realized gains on security sales
|
82.3
|
|
|
24.7
|
|
|
146.7
|
|
|
159.7
|
|
||||
Gross realized losses on security sales
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. government obligations
|
(5.3
|
)
|
|
(29.9
|
)
|
|
(12.4
|
)
|
|
(38.8
|
)
|
||||
State and local government obligations
|
(0.1
|
)
|
|
(0.6
|
)
|
|
(0.7
|
)
|
|
(1.9
|
)
|
||||
Corporate and other debt securities
|
(1.4
|
)
|
|
(1.0
|
)
|
|
(7.5
|
)
|
|
(4.1
|
)
|
||||
Residential mortgage-backed securities
|
0
|
|
|
0
|
|
|
(2.3
|
)
|
|
0
|
|
||||
Commercial mortgage-backed securities
|
0
|
|
|
0
|
|
|
(2.1
|
)
|
|
(6.3
|
)
|
||||
Other asset-backed securities
|
0
|
|
|
(0.9
|
)
|
|
(0.1
|
)
|
|
(1.0
|
)
|
||||
Redeemable preferred stocks
|
(0.1
|
)
|
|
0
|
|
|
(0.1
|
)
|
|
0
|
|
||||
Total available-for-sale securities
|
(6.9
|
)
|
|
(32.4
|
)
|
|
(25.2
|
)
|
|
(52.1
|
)
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Nonredeemable preferred stocks
|
0
|
|
|
(1.9
|
)
|
|
0
|
|
|
(2.3
|
)
|
||||
Common equities
|
(7.9
|
)
|
|
0
|
|
|
(7.9
|
)
|
|
(7.9
|
)
|
||||
Total equity securities
|
(7.9
|
)
|
|
(1.9
|
)
|
|
(7.9
|
)
|
|
(10.2
|
)
|
||||
Subtotal gross realized losses on security sales
|
(14.8
|
)
|
|
(34.3
|
)
|
|
(33.1
|
)
|
|
(62.3
|
)
|
||||
Net realized gains (losses) on security sales
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. government obligations
|
29.6
|
|
|
(28.2
|
)
|
|
59.1
|
|
|
(37.1
|
)
|
||||
State and local government obligations
|
0.5
|
|
|
0
|
|
|
1.5
|
|
|
7.3
|
|
||||
Corporate and other debt securities
|
29.7
|
|
|
(0.7
|
)
|
|
39.7
|
|
|
(3.7
|
)
|
||||
Residential mortgage-backed securities
|
0.2
|
|
|
0
|
|
|
(2.1
|
)
|
|
0
|
|
||||
Commercial mortgage-backed securities
|
2.9
|
|
|
0.3
|
|
|
1.5
|
|
|
(4.3
|
)
|
||||
Other asset-backed securities
|
0.7
|
|
|
(0.8
|
)
|
|
0.6
|
|
|
(0.9
|
)
|
||||
Redeemable preferred stocks
|
(0.1
|
)
|
|
3.2
|
|
|
(0.1
|
)
|
|
4.3
|
|
||||
Total available-for-sale securities
|
63.5
|
|
|
(26.2
|
)
|
|
100.2
|
|
|
(34.4
|
)
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Nonredeemable preferred stocks
|
11.7
|
|
|
(1.9
|
)
|
|
16.6
|
|
|
1.3
|
|
||||
Common equities
|
(7.7
|
)
|
|
18.5
|
|
|
(3.2
|
)
|
|
130.5
|
|
||||
Total equity securities
|
4.0
|
|
|
16.6
|
|
|
13.4
|
|
|
131.8
|
|
||||
Subtotal net realized gains (losses) on security sales
|
67.5
|
|
|
(9.6
|
)
|
|
113.6
|
|
|
97.4
|
|
||||
Net holding period gains (losses)
|
|
|
|
|
|
|
|
||||||||
Hybrid securities
|
1.4
|
|
|
(2.3
|
)
|
|
12.1
|
|
|
(5.5
|
)
|
||||
Equity securities
|
111.0
|
|
|
55.8
|
|
|
493.0
|
|
|
(96.2
|
)
|
||||
Subtotal net holding period gains (losses)
|
112.4
|
|
|
53.5
|
|
|
505.1
|
|
|
(101.7
|
)
|
||||
Other-than-temporary impairment losses
|
|
|
|
|
|
|
|
||||||||
Other asset impairment
|
0
|
|
|
(11.1
|
)
|
|
(24.3
|
)
|
|
(11.1
|
)
|
||||
Subtotal other-than-temporary impairment losses
|
0
|
|
|
(11.1
|
)
|
|
(24.3
|
)
|
|
(11.1
|
)
|
||||
Total net realized gains (losses) on securities
|
$
|
179.9
|
|
|
$
|
32.8
|
|
|
$
|
594.4
|
|
|
$
|
(15.4
|
)
|
|
Three Months
|
|
Six Months
|
||||||||||
(millions)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||
Total net gains (losses) recognized during the period on equity securities
|
$
|
115.0
|
|
$
|
72.4
|
|
|
$
|
506.4
|
|
$
|
35.6
|
|
Less: Net gains (losses) recognized on equity securities sold during the period
|
4.0
|
|
16.6
|
|
|
13.4
|
|
131.8
|
|
||||
Net holding period gains (losses) recognized during the period on equity securities held at period end
|
$
|
111.0
|
|
$
|
55.8
|
|
|
$
|
493.0
|
|
$
|
(96.2
|
)
|
|
Three Months
|
|
Six Months
|
||||||||||
(millions)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||
Available-for-sale securities:
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
||||||||
U.S. government obligations
|
$
|
69.2
|
|
$
|
45.9
|
|
|
$
|
122.9
|
|
$
|
85.7
|
|
State and local government obligations
|
8.9
|
|
9.1
|
|
|
18.2
|
|
19.1
|
|
||||
Corporate debt securities
|
67.5
|
|
51.8
|
|
|
144.7
|
|
88.0
|
|
||||
Residential mortgage-backed securities
|
4.6
|
|
6.6
|
|
|
11.2
|
|
13.5
|
|
||||
Commercial mortgage-backed securities
|
33.4
|
|
20.2
|
|
|
65.1
|
|
41.4
|
|
||||
Other asset-backed securities
|
28.1
|
|
16.1
|
|
|
54.1
|
|
29.7
|
|
||||
Redeemable preferred stocks
|
8.5
|
|
2.9
|
|
|
12.2
|
|
5.5
|
|
||||
Total fixed maturities
|
220.2
|
|
152.6
|
|
|
428.4
|
|
282.9
|
|
||||
Short-term investments
|
11.2
|
|
14.9
|
|
|
27.2
|
|
25.0
|
|
||||
Total available-for-sale securities
|
231.4
|
|
167.5
|
|
|
455.6
|
|
307.9
|
|
||||
Equity securities:
|
|
|
|
|
|
||||||||
Nonredeemable preferred stocks
|
15.9
|
|
10.4
|
|
|
31.4
|
|
21.3
|
|
||||
Common equities
|
14.0
|
|
14.2
|
|
|
27.2
|
|
29.2
|
|
||||
Total equity securities
|
29.9
|
|
24.6
|
|
|
58.6
|
|
50.5
|
|
||||
Investment income
|
261.3
|
|
192.1
|
|
|
514.2
|
|
358.4
|
|
||||
Investment expenses
|
(6.2
|
)
|
(6.2
|
)
|
|
(12.4
|
)
|
(12.2
|
)
|
||||
Net investment income
|
$
|
255.1
|
|
$
|
185.9
|
|
|
$
|
501.8
|
|
$
|
346.2
|
|
•
|
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
|
|
|||||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government obligations
|
$
|
12,379.4
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
12,379.4
|
|
|
$
|
12,121.9
|
|
State and local government obligations
|
0
|
|
|
1,589.7
|
|
|
0
|
|
|
1,589.7
|
|
|
1,563.6
|
|
|||||
Corporate debt securities
|
0
|
|
|
7,385.7
|
|
|
0
|
|
|
7,385.7
|
|
|
7,176.7
|
|
|||||
Subtotal
|
12,379.4
|
|
|
8,975.4
|
|
|
0
|
|
|
21,354.8
|
|
|
20,862.2
|
|
|||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage-backed
|
0
|
|
|
665.2
|
|
|
0
|
|
|
665.2
|
|
|
660.4
|
|
|||||
Commercial mortgage-backed
|
0
|
|
|
4,441.9
|
|
|
0
|
|
|
4,441.9
|
|
|
4,361.2
|
|
|||||
Other asset-backed
|
0
|
|
|
4,497.2
|
|
|
0
|
|
|
4,497.2
|
|
|
4,478.2
|
|
|||||
Subtotal asset-backed securities
|
0
|
|
|
9,604.3
|
|
|
0
|
|
|
9,604.3
|
|
|
9,499.8
|
|
|||||
Redeemable preferred stocks:
|
|
|
|
|
|
|
|
|
|
||||||||||
Financials
|
0
|
|
|
51.4
|
|
|
0
|
|
|
51.4
|
|
|
51.7
|
|
|||||
Utilities
|
0
|
|
|
10.3
|
|
|
0
|
|
|
10.3
|
|
|
10.0
|
|
|||||
Industrials
|
10.4
|
|
|
157.0
|
|
|
0
|
|
|
167.4
|
|
|
164.5
|
|
|||||
Subtotal redeemable preferred stocks
|
10.4
|
|
|
218.7
|
|
|
0
|
|
|
229.1
|
|
|
226.2
|
|
|||||
Total fixed maturities
|
12,389.8
|
|
|
18,798.4
|
|
|
0
|
|
|
31,188.2
|
|
|
30,588.2
|
|
|||||
Short-term investments
|
1,287.0
|
|
|
73.9
|
|
|
0
|
|
|
1,360.9
|
|
|
1,360.9
|
|
|||||
Total available-for-sale securities
|
13,676.8
|
|
|
18,872.3
|
|
|
0
|
|
|
32,549.1
|
|
|
31,949.1
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonredeemable preferred stocks:
|
|
|
|
|
|
|
|
|
|
||||||||||
Financials
|
82.2
|
|
|
974.3
|
|
|
27.1
|
|
|
1,083.6
|
|
|
1,015.4
|
|
|||||
Utilities
|
0
|
|
|
41.4
|
|
|
0
|
|
|
41.4
|
|
|
39.9
|
|
|||||
Industrials
|
0
|
|
|
0
|
|
|
5.0
|
|
|
5.0
|
|
|
5.0
|
|
|||||
Subtotal nonredeemable preferred stocks
|
82.2
|
|
|
1,015.7
|
|
|
32.1
|
|
|
1,130.0
|
|
|
1,060.3
|
|
|||||
Common equities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stocks
|
3,135.2
|
|
|
0
|
|
|
0
|
|
|
3,135.2
|
|
|
1,203.4
|
|
|||||
Other risk investments
|
0
|
|
|
0
|
|
|
0.3
|
|
|
0.3
|
|
|
0.3
|
|
|||||
Subtotal common equities
|
3,135.2
|
|
|
0
|
|
|
0.3
|
|
|
3,135.5
|
|
|
1,203.7
|
|
|||||
Total equity securities
|
3,217.4
|
|
|
1,015.7
|
|
|
32.4
|
|
|
4,265.5
|
|
|
2,264.0
|
|
|||||
Total portfolio
|
$
|
16,894.2
|
|
|
$
|
19,888.0
|
|
|
$
|
32.4
|
|
|
$
|
36,814.6
|
|
|
$
|
34,213.1
|
|
Debt
|
$
|
0
|
|
|
$
|
4,955.2
|
|
|
$
|
0
|
|
|
$
|
4,955.2
|
|
|
$
|
4,406.0
|
|
|
Fair Value
|
|
|
||||||||||||||||
(millions)
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
Cost
|
|
|||||
June 30, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government obligations
|
$
|
7,865.4
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
7,865.4
|
|
|
$
|
8,005.8
|
|
State and local government obligations
|
0
|
|
|
1,667.3
|
|
|
0
|
|
|
1,667.3
|
|
|
1,678.9
|
|
|||||
Corporate debt securities
|
0
|
|
|
7,330.3
|
|
|
0
|
|
|
7,330.3
|
|
|
7,422.4
|
|
|||||
Subtotal
|
7,865.4
|
|
|
8,997.6
|
|
|
0
|
|
|
16,863.0
|
|
|
17,107.1
|
|
|||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage-backed
|
0
|
|
|
822.6
|
|
|
0
|
|
|
822.6
|
|
|
819.6
|
|
|||||
Commercial mortgage-backed
|
0
|
|
|
2,696.9
|
|
|
0
|
|
|
2,696.9
|
|
|
2,725.5
|
|
|||||
Other asset-backed
|
0
|
|
|
3,177.6
|
|
|
0
|
|
|
3,177.6
|
|
|
3,189.2
|
|
|||||
Subtotal asset-backed securities
|
0
|
|
|
6,697.1
|
|
|
0
|
|
|
6,697.1
|
|
|
6,734.3
|
|
|||||
Redeemable preferred stocks:
|
|
|
|
|
|
|
|
|
|
||||||||||
Financials
|
0
|
|
|
67.7
|
|
|
0
|
|
|
67.7
|
|
|
65.3
|
|
|||||
Utilities
|
0
|
|
|
4.6
|
|
|
0
|
|
|
4.6
|
|
|
4.8
|
|
|||||
Industrials
|
10.1
|
|
|
146.7
|
|
|
0
|
|
|
156.8
|
|
|
150.3
|
|
|||||
Subtotal redeemable preferred stocks
|
10.1
|
|
|
219.0
|
|
|
0
|
|
|
229.1
|
|
|
220.4
|
|
|||||
Total fixed maturities
|
7,875.5
|
|
|
15,913.7
|
|
|
0
|
|
|
23,789.2
|
|
|
24,061.8
|
|
|||||
Short-term investments
|
2,954.2
|
|
|
277.0
|
|
|
0
|
|
|
3,231.2
|
|
|
3,231.2
|
|
|||||
Total available-for-sale securities
|
10,829.7
|
|
|
16,190.7
|
|
|
0
|
|
|
27,020.4
|
|
|
27,293.0
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonredeemable preferred stocks:
|
|
|
|
|
|
|
|
|
|
||||||||||
Financials
|
77.4
|
|
|
676.2
|
|
|
0
|
|
|
753.6
|
|
|
672.0
|
|
|||||
Utilities
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
Industrials
|
0
|
|
|
0
|
|
|
5.0
|
|
|
5.0
|
|
|
5.0
|
|
|||||
Subtotal nonredeemable preferred stocks
|
77.4
|
|
|
676.2
|
|
|
5.0
|
|
|
758.6
|
|
|
677.0
|
|
|||||
Common equities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stocks
|
3,141.9
|
|
|
0
|
|
|
0
|
|
|
3,141.9
|
|
|
1,313.7
|
|
|||||
Other risk investments
|
0
|
|
|
0
|
|
|
0.3
|
|
|
0.3
|
|
|
0.3
|
|
|||||
Subtotal common equities
|
3,141.9
|
|
|
0
|
|
|
0.3
|
|
|
3,142.2
|
|
|
1,314.0
|
|
|||||
Total equity securities
|
3,219.3
|
|
|
676.2
|
|
|
5.3
|
|
|
3,900.8
|
|
|
1,991.0
|
|
|||||
Total portfolio
|
$
|
14,049.0
|
|
|
$
|
16,866.9
|
|
|
$
|
5.3
|
|
|
$
|
30,921.2
|
|
|
$
|
29,284.0
|
|
Debt
|
$
|
0
|
|
|
$
|
3,959.0
|
|
|
$
|
0
|
|
|
$
|
3,959.0
|
|
|
$
|
3,859.5
|
|
|
Fair Value
|
|
|
||||||||||||||||
(millions)
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
Cost
|
|
|||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government obligations
|
$
|
9,916.5
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
9,916.5
|
|
|
$
|
9,897.4
|
|
State and local government obligations
|
0
|
|
|
1,649.1
|
|
|
0
|
|
|
1,649.1
|
|
|
1,654.6
|
|
|||||
Corporate debt securities
|
0
|
|
|
8,694.3
|
|
|
0
|
|
|
8,694.3
|
|
|
8,808.5
|
|
|||||
Subtotal
|
9,916.5
|
|
|
10,343.4
|
|
|
0
|
|
|
20,259.9
|
|
|
20,360.5
|
|
|||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage-backed
|
0
|
|
|
734.4
|
|
|
0
|
|
|
734.4
|
|
|
733.5
|
|
|||||
Commercial mortgage-backed
|
0
|
|
|
3,301.6
|
|
|
0
|
|
|
3,301.6
|
|
|
3,332.8
|
|
|||||
Other asset-backed
|
0
|
|
|
3,577.3
|
|
|
0
|
|
|
3,577.3
|
|
|
3,585.4
|
|
|||||
Subtotal asset-backed securities
|
0
|
|
|
7,613.3
|
|
|
0
|
|
|
7,613.3
|
|
|
7,651.7
|
|
|||||
Redeemable preferred stocks:
|
|
|
|
|
|
|
|
|
|
||||||||||
Financials
|
0
|
|
|
78.2
|
|
|
0
|
|
|
78.2
|
|
|
79.3
|
|
|||||
Utilities
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||
Industrials
|
9.5
|
|
|
150.6
|
|
|
0
|
|
|
160.1
|
|
|
164.4
|
|
|||||
Subtotal redeemable preferred stocks
|
9.5
|
|
|
228.8
|
|
|
0
|
|
|
238.3
|
|
|
243.7
|
|
|||||
Total fixed maturities
|
9,926.0
|
|
|
18,185.5
|
|
|
0
|
|
|
28,111.5
|
|
|
28,255.9
|
|
|||||
Short-term investments
|
1,722.1
|
|
|
73.8
|
|
|
0
|
|
|
1,795.9
|
|
|
1,795.9
|
|
|||||
Total available-for-sale securities
|
11,648.1
|
|
|
18,259.3
|
|
|
0
|
|
|
29,907.4
|
|
|
30,051.8
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonredeemable preferred stocks:
|
|
|
|
|
|
|
|
|
|
||||||||||
Financials
|
71.9
|
|
|
887.1
|
|
|
25.1
|
|
|
984.1
|
|
|
951.6
|
|
|||||
Utilities
|
0
|
|
|
44.8
|
|
|
0
|
|
|
44.8
|
|
|
46.0
|
|
|||||
Industrials
|
0
|
|
|
0
|
|
|
5.0
|
|
|
5.0
|
|
|
5.0
|
|
|||||
Subtotal nonredeemable preferred stocks
|
71.9
|
|
|
931.9
|
|
|
30.1
|
|
|
1,033.9
|
|
|
1,002.6
|
|
|||||
Common equities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stocks
|
2,625.8
|
|
|
0
|
|
|
0
|
|
|
2,625.8
|
|
|
1,148.6
|
|
|||||
Other risk investments
|
0
|
|
|
0
|
|
|
0.3
|
|
|
0.3
|
|
|
0.3
|
|
|||||
Subtotal common equities
|
2,625.8
|
|
|
0
|
|
|
0.3
|
|
|
2,626.1
|
|
|
1,148.9
|
|
|||||
Total equity securities
|
2,697.7
|
|
|
931.9
|
|
|
30.4
|
|
|
3,660.0
|
|
|
2,151.5
|
|
|||||
Total portfolio
|
$
|
14,345.8
|
|
|
$
|
19,191.2
|
|
|
$
|
30.4
|
|
|
$
|
33,567.4
|
|
|
$
|
32,203.3
|
|
Debt
|
$
|
0
|
|
|
$
|
4,532.3
|
|
|
$
|
0
|
|
|
$
|
4,532.3
|
|
|
$
|
4,404.9
|
|
|
Level 3 Fair Value
|
|||||||||||||||||||||||
(millions)
|
Fair Value at March 31, 2019
|
|
Calls/
Maturities/
Paydowns
|
|
Purchases
|
|
Sales
|
|
Net Realized
(Gain)/Loss
on Sales
|
|
Change in
Valuation
|
|
Net
Transfers
In (Out)
|
|
Fair Value at June 30, 2019
|
|
||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Nonredeemable preferred stocks:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Financials
|
$
|
25.1
|
|
$
|
0
|
|
$
|
2.0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
27.1
|
|
Industrials
|
5.0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
5.0
|
|
||||||||
Common equities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other risk investments
|
0.3
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0.3
|
|
||||||||
Total Level 3 securities
|
$
|
30.4
|
|
$
|
0
|
|
$
|
2.0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
32.4
|
|
|
Level 3 Fair Value
|
|||||||||||||||||||||||
(millions)
|
Fair Value at Dec. 31, 2018
|
|
Calls/
Maturities/
Paydowns
|
|
Purchases
|
|
Sales
|
|
Net Realized
(Gain)/Loss
on Sales
|
|
Change in
Valuation
|
|
Net
Transfers
In (Out)
|
|
Fair Value at June 30, 2019
|
|
||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Nonredeemable preferred stocks:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Financials
|
$
|
25.1
|
|
$
|
0
|
|
$
|
2.0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
27.1
|
|
Industrials
|
5.0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
5.0
|
|
||||||||
Common equities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other risk investments
|
0.3
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0.3
|
|
||||||||
Total Level 3 securities
|
$
|
30.4
|
|
$
|
0
|
|
$
|
2.0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
32.4
|
|
|
Level 3 Fair Value
|
|||||||||||||||||||||||
(millions)
|
Fair Value at March 31, 2018
|
|
Calls/
Maturities/
Paydowns
|
|
Purchases
|
|
Sales
|
|
Net Realized
(Gain)/Loss
on Sales
|
|
Change in
Valuation
|
|
Net
Transfers
In (Out)
|
|
Fair Value at June 30, 2018
|
|
||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Nonredeemable preferred stocks:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Financials
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
Industrials
|
5.0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
5.0
|
|
||||||||
Common equities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other risk investments
|
0.3
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0.3
|
|
||||||||
Total Level 3 securities
|
$
|
5.3
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
5.3
|
|
|
Level 3 Fair Value
|
|||||||||||||||||||||||
(millions)
|
Fair Value at Dec. 31, 2017
|
|
Calls/
Maturities/
Paydowns
|
|
Purchases
|
|
Sales
|
|
Net Realized
(Gain)/Loss
on Sales
|
|
Change in
Valuation
|
|
Net
Transfers
In (Out)
|
|
Fair Value at June 30, 2018
|
|
||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Nonredeemable preferred stocks:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Financials
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
Industrials
|
5.0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
5.0
|
|
||||||||
Common equities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other risk investments
|
0.3
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0.3
|
|
||||||||
Total Level 3 securities
|
$
|
5.3
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
5.3
|
|
|
Quantitative Information about Level 3 Fair Value Measurements
|
||||||
($ in millions)
|
Fair Value at June 30, 2019
|
|
Valuation Technique
|
Unobservable Input
|
Unobservable Input Assumption
|
|
|
Equity securities:
|
|
|
|
|
|||
Nonredeemable preferred stocks:
|
|
|
|
|
|||
Financials1
|
$
|
27.1
|
|
internal price
|
unadjusted purchase price per share
|
9.0
|
|
Industrials2
|
5.0
|
|
internal price
|
price-to-sales ratio
|
5.5
|
|
|
Subtotal Level 3 securities
|
32.1
|
|
|
|
|
||
Pricing exemption securities3
|
0.3
|
|
|
|
|
||
Total Level 3 securities
|
$
|
32.4
|
|
|
|
|
|
Quantitative Information about Level 3 Fair Value Measurements
|
||||||
($ in millions)
|
Fair Value at June 30, 2018
|
|
Valuation Technique
|
Unobservable Input
|
Unobservable Input Assumption
|
|
|
Equity securities:
|
|
|
|
|
|||
Nonredeemable preferred stocks:
|
|
|
|
|
|||
Financials
|
$
|
0
|
|
NA
|
NA
|
NA
|
|
Industrials1
|
5.0
|
|
internal price
|
unadjusted purchase price per share
|
3.9
|
|
|
Subtotal Level 3 securities
|
5.0
|
|
|
|
|
||
Pricing exemption securities2
|
0.3
|
|
|
|
|
||
Total Level 3 securities
|
$
|
5.3
|
|
|
|
|
|
Quantitative Information about Level 3 Fair Value Measurements
|
||||||
($ in millions)
|
Fair Value at Dec. 31, 2018
|
|
Valuation Technique
|
Unobservable Input
|
Unobservable Input Assumption
|
|
|
Equity securities:
|
|
|
|
|
|||
Nonredeemable preferred stocks:
|
|
|
|
|
|||
Financials1
|
$
|
25.1
|
|
internal price
|
unadjusted purchase price per share
|
9.0
|
|
Industrials2
|
5.0
|
|
internal price
|
price-to-sales ratio
|
5.5
|
|
|
Subtotal Level 3 securities
|
30.1
|
|
|
|
|
||
Pricing exemption securities3
|
0.3
|
|
|
|
|
||
Total Level 3 securities
|
$
|
30.4
|
|
|
|
|
|
June 30, 2019
|
|
June 30, 2018
|
|
December 31, 2018
|
||||||||||||||||||
(millions)
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
||||||||||||
3.75% Senior Notes due 2021
|
$
|
499.2
|
|
|
$
|
516.5
|
|
|
$
|
498.9
|
|
|
$
|
506.4
|
|
|
$
|
499.1
|
|
|
$
|
506.5
|
|
2.45% Senior Notes due 2027
|
496.7
|
|
|
494.7
|
|
|
496.3
|
|
|
451.3
|
|
|
496.5
|
|
|
455.5
|
|
||||||
6 5/8% Senior Notes due 2029
|
296.5
|
|
|
385.7
|
|
|
296.2
|
|
|
364.4
|
|
|
296.4
|
|
|
368.5
|
|
||||||
4.00% Senior Notes due 2029
|
544.8
|
|
|
608.9
|
|
|
0
|
|
|
0
|
|
|
544.5
|
|
|
562.4
|
|
||||||
6.25% Senior Notes due 2032
|
395.6
|
|
|
531.3
|
|
|
395.4
|
|
|
492.5
|
|
|
395.5
|
|
|
496.6
|
|
||||||
4.35% Senior Notes due 2044
|
346.6
|
|
|
392.5
|
|
|
346.6
|
|
|
356.7
|
|
|
346.6
|
|
|
350.2
|
|
||||||
3.70% Senior Notes due 2045
|
395.4
|
|
|
411.1
|
|
|
395.3
|
|
|
363.9
|
|
|
395.3
|
|
|
366.7
|
|
||||||
4.125% Senior Notes due 2047
|
841.5
|
|
|
943.0
|
|
|
841.3
|
|
|
831.5
|
|
|
841.4
|
|
|
831.9
|
|
||||||
4.20% Senior Notes due 2048
|
589.7
|
|
|
671.5
|
|
|
589.5
|
|
|
592.3
|
|
|
589.6
|
|
|
594.0
|
|
||||||
Total
|
$
|
4,406.0
|
|
|
$
|
4,955.2
|
|
|
$
|
3,859.5
|
|
|
$
|
3,959.0
|
|
|
$
|
4,404.9
|
|
|
$
|
4,532.3
|
|
|
June 30,
|
||||||
(millions)
|
2019
|
|
2018
|
||||
Balance, Beginning of period
|
$
|
15,400.8
|
|
|
$
|
13,086.9
|
|
Less reinsurance recoverables on unpaid losses
|
2,572.7
|
|
|
2,170.1
|
|
||
Net balance, Beginning of period
|
12,828.1
|
|
|
10,916.8
|
|
||
Incurred related to:
|
|
|
|
||||
Current year
|
11,687.1
|
|
|
10,164.6
|
|
||
Prior years
|
210.0
|
|
|
81.5
|
|
||
Total incurred
|
11,897.1
|
|
|
10,246.1
|
|
||
Paid related to:
|
|
|
|
||||
Current year
|
6,407.5
|
|
|
5,533.7
|
|
||
Prior years
|
4,664.1
|
|
|
3,851.5
|
|
||
Total paid
|
11,071.6
|
|
|
9,385.2
|
|
||
Net balance, End of period
|
13,653.6
|
|
|
11,777.7
|
|
||
Plus reinsurance recoverables on unpaid losses
|
2,915.0
|
|
|
2,293.1
|
|
||
Balance, End of period
|
$
|
16,568.6
|
|
|
$
|
14,070.8
|
|
•
|
About 50% of the unfavorable prior year reserve development was attributable to accident year 2018, with the remainder split evenly between accident year 2017 and accident years 2016 and prior.
|
•
|
Our personal auto products incurred about $116 million of unfavorable loss and loss adjustment expense (LAE) reserve development, with the Agency and Direct auto businesses each contributing about half. The unfavorable development was primarily attributable to increased injury severity, a higher than anticipated frequency of reopened personal injury protection (PIP) claims, primarily in Florida, and late reported losses occurring late 2018 but not reported until 2019.
|
•
|
Our Commercial Lines business experienced about $57 million of unfavorable development primarily due to increased injury severity and more emergence of large injury claims than originally anticipated.
|
•
|
Our Property business experienced about $20 million of unfavorable development, primarily due to higher than originally anticipated homeowner and dwelling, and fire liability costs.
|
•
|
Our special lines business experienced about $17 million of unfavorable development primarily due to less salvage and subrogation recoveries than originally anticipated.
|
•
|
Approximately $72 million of the unfavorable prior year reserve development was attributable to accident years 2017 and 2016.
|
•
|
Our personal auto business incurred about $57 million of unfavorable loss and LAE reserve development, with the Agency and Direct auto businesses contributing about $36 million and $21 million, respectively, of unfavorable development. The unfavorable development was primarily due to an increase in reopened PIP claims.
|
•
|
Our Commercial Lines business experienced about $17 million of unfavorable development primarily due to late reported losses and higher LAE than anticipated.
|
•
|
Our Property business recognized unfavorable development of about $7 million, while our special lines products had minimal development during the first half of the year.
|
|
Six Months Ended June 30,
|
||||||
(millions)
|
2019
|
|
|
2018
|
|
||
Income taxes
|
$
|
592.8
|
|
|
$
|
358.9
|
|
Interest
|
90.9
|
|
|
70.9
|
|
||
Operating lease liabilities
|
37.4
|
|
|
NA
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||||||||||
(millions)
|
Revenues
|
|
Pretax
Profit (Loss)
|
|
Revenues
|
|
Pretax
Profit (Loss)
|
|
Revenues
|
|
Pretax Profit (Loss)
|
|
Revenues
|
|
Pretax Profit (Loss)
|
||||||||||||||||
Personal Lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency
|
$
|
3,639.6
|
|
|
$
|
434.7
|
|
|
$
|
3,225.7
|
|
|
$
|
360.9
|
|
|
$
|
7,148.1
|
|
|
$
|
887.7
|
|
|
$
|
6,289.5
|
|
|
$
|
770.0
|
|
Direct
|
3,733.4
|
|
|
326.6
|
|
|
3,211.8
|
|
|
287.9
|
|
|
7,309.7
|
|
|
648.5
|
|
|
6,228.1
|
|
|
585.9
|
|
||||||||
Total Personal Lines1
|
7,373.0
|
|
|
761.3
|
|
|
6,437.5
|
|
|
648.8
|
|
|
14,457.8
|
|
|
1,536.2
|
|
|
12,517.6
|
|
|
1,355.9
|
|
||||||||
Commercial Lines
|
1,070.5
|
|
|
124.4
|
|
|
884.3
|
|
|
100.3
|
|
|
2,083.5
|
|
|
291.0
|
|
|
1,692.9
|
|
|
195.1
|
|
||||||||
Property2
|
381.2
|
|
|
(34.4
|
)
|
|
312.4
|
|
|
(51.9
|
)
|
|
743.2
|
|
|
(26.7
|
)
|
|
597.7
|
|
|
(23.4
|
)
|
||||||||
Other indemnity
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0.2
|
|
||||||||
Total underwriting operations
|
8,824.7
|
|
|
851.3
|
|
|
7,634.2
|
|
|
697.2
|
|
|
17,284.5
|
|
|
1,800.5
|
|
|
14,808.2
|
|
|
1,527.8
|
|
||||||||
Fees and other revenues3
|
134.8
|
|
|
NA
|
|
|
116.0
|
|
|
NA
|
|
|
265.0
|
|
|
NA
|
|
|
219.8
|
|
|
NA
|
|
||||||||
Service businesses
|
50.0
|
|
|
4.7
|
|
|
42.9
|
|
|
5.9
|
|
|
92.6
|
|
|
9.2
|
|
|
77.1
|
|
|
10.8
|
|
||||||||
Investments4
|
441.2
|
|
|
435.0
|
|
|
224.9
|
|
|
218.7
|
|
|
1,108.6
|
|
|
1,096.2
|
|
|
343.0
|
|
|
330.8
|
|
||||||||
Interest expense
|
NA
|
|
|
(47.4
|
)
|
|
NA
|
|
|
(41.7
|
)
|
|
NA
|
|
|
(94.8
|
)
|
|
NA
|
|
|
(78.5
|
)
|
||||||||
Consolidated total
|
$
|
9,450.7
|
|
|
$
|
1,243.6
|
|
|
$
|
8,018.0
|
|
|
$
|
880.1
|
|
|
$
|
18,750.7
|
|
|
$
|
2,811.1
|
|
|
$
|
15,448.1
|
|
|
$
|
1,790.9
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||||||
|
Under-writing
Margin |
|
Combined
Ratio
|
|
Under-writing
Margin |
|
Combined
Ratio
|
|
Under-writing
Margin |
|
Combined
Ratio
|
|
Under-writing
Margin |
|
Combined
Ratio
|
|||||
Personal Lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agency
|
11.9
|
%
|
|
88.1
|
|
11.2
|
%
|
|
88.8
|
|
|
12.4
|
%
|
|
87.6
|
|
12.2
|
%
|
|
87.8
|
Direct
|
8.7
|
|
|
91.3
|
|
9.0
|
|
|
91.0
|
|
|
8.9
|
|
|
91.1
|
|
9.4
|
|
|
90.6
|
Total Personal Lines
|
10.3
|
|
|
89.7
|
|
10.1
|
|
|
89.9
|
|
|
10.6
|
|
|
89.4
|
|
10.8
|
|
|
89.2
|
Commercial Lines
|
11.6
|
|
|
88.4
|
|
11.3
|
|
|
88.7
|
|
|
14.0
|
|
|
86.0
|
|
11.5
|
|
|
88.5
|
Property1
|
(9.0
|
)
|
|
109.0
|
|
(16.6
|
)
|
|
116.6
|
|
|
(3.6
|
)
|
|
103.6
|
|
(3.9
|
)
|
|
103.9
|
Total underwriting operations
|
9.6
|
|
|
90.4
|
|
9.1
|
|
|
90.9
|
|
|
10.4
|
|
|
89.6
|
|
10.3
|
|
|
89.7
|
(millions, except per share amounts)
|
|
Amount of Common Share Dividends
|
||||||||
Dividend Type
|
Declared
|
Paid
|
Per Share
|
|
Accrued1
|
|
Paid1
|
|
||
Quarterly
|
May 2019
|
NA
|
$
|
0.10
|
|
$
|
58.4
|
|
$ NA
|
|
Quarterly
|
February 2019
|
April 2019
|
0.10
|
|
58.4
|
|
58.4
|
|
||
Annual – Variable
|
December 2018
|
February 2019
|
2.5140
|
|
1,467.9
|
|
1,467.9
|
|
||
Annual – Variable
|
December 2017
|
February 2018
|
1.1247
|
|
655.1
|
|
654.9
|
|
|
|
|
|
|
|
|
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
|
|
|
(Income) loss attributable to NCI
|
|
||||||
Balance at March 31, 2019
|
$
|
225.5
|
|
|
$
|
(47.4
|
)
|
|
$
|
178.1
|
|
|
$
|
195.5
|
|
|
$
|
(17.0
|
)
|
|
$
|
(0.4
|
)
|
Other comprehensive income (loss) before reclassifications:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment securities
|
404.7
|
|
|
(85.0
|
)
|
|
319.7
|
|
|
319.7
|
|
|
0
|
|
|
0
|
|
||||||
Loss attributable to noncontrolling interest (NCI)
|
(3.3
|
)
|
|
0.7
|
|
|
(2.6
|
)
|
|
0
|
|
|
0
|
|
|
(2.6
|
)
|
||||||
Total other comprehensive income (loss) before reclassifications
|
401.4
|
|
|
(84.3
|
)
|
|
317.1
|
|
|
319.7
|
|
|
0
|
|
|
(2.6
|
)
|
||||||
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net realized gains (losses) on securities
|
53.5
|
|
|
(11.2
|
)
|
|
42.3
|
|
|
42.3
|
|
|
0
|
|
|
0
|
|
||||||
Interest expense
|
(0.2
|
)
|
|
0
|
|
|
(0.2
|
)
|
|
0
|
|
|
(0.2
|
)
|
|
0
|
|
||||||
Total reclassification adjustment for amounts realized in net income
|
53.3
|
|
|
(11.2
|
)
|
|
42.1
|
|
|
42.3
|
|
|
(0.2
|
)
|
|
0
|
|
||||||
Total other comprehensive income (loss)
|
348.1
|
|
|
(73.1
|
)
|
|
275.0
|
|
|
277.4
|
|
|
0.2
|
|
|
(2.6
|
)
|
||||||
Balance at June 30, 2019
|
$
|
573.6
|
|
|
$
|
(120.5
|
)
|
|
$
|
453.1
|
|
|
$
|
472.9
|
|
|
$
|
(16.8
|
)
|
|
$
|
(3.0
|
)
|
|
|
|
|
|
|
|
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
|
|
|
(Income) loss attributable to NCI
|
|
||||||
Balance at December 31, 2018
|
$
|
(153.0
|
)
|
|
$
|
32.1
|
|
|
$
|
(120.9
|
)
|
|
$
|
(105.6
|
)
|
|
$
|
(17.2
|
)
|
|
$
|
1.9
|
|
Other comprehensive income (loss) before reclassifications:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment securities
|
819.2
|
|
|
(172.0
|
)
|
|
647.2
|
|
|
647.2
|
|
|
0
|
|
|
0
|
|
||||||
Loss attributable to noncontrolling interest (NCI)
|
(6.2
|
)
|
|
1.3
|
|
|
(4.9
|
)
|
|
0
|
|
|
0
|
|
|
(4.9
|
)
|
||||||
Total other comprehensive income (loss) before reclassifications
|
813.0
|
|
|
(170.7
|
)
|
|
642.3
|
|
|
647.2
|
|
|
0
|
|
|
(4.9
|
)
|
||||||
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net realized gains (losses) on securities
|
86.9
|
|
|
(18.2
|
)
|
|
68.7
|
|
|
68.7
|
|
|
0
|
|
|
0
|
|
||||||
Interest expense
|
(0.5
|
)
|
|
0.1
|
|
|
(0.4
|
)
|
|
0
|
|
|
(0.4
|
)
|
|
0
|
|
||||||
Total reclassification adjustment for amounts realized in net income
|
86.4
|
|
|
(18.1
|
)
|
|
68.3
|
|
|
68.7
|
|
|
(0.4
|
)
|
|
0
|
|
||||||
Total other comprehensive income (loss)
|
726.6
|
|
|
(152.6
|
)
|
|
574.0
|
|
|
578.5
|
|
|
0.4
|
|
|
(4.9
|
)
|
||||||
Balance at June 30, 2019
|
$
|
573.6
|
|
|
$
|
(120.5
|
)
|
|
$
|
453.1
|
|
|
$
|
472.9
|
|
|
$
|
(16.8
|
)
|
|
$
|
(3.0
|
)
|
|
|
|
|
|
|
|
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 |
|
|
(Income) loss attributable to NCI
|
|
||||||
Balance at March 31, 2018
|
$
|
(218.6
|
)
|
|
$
|
46.0
|
|
|
$
|
(172.6
|
)
|
|
$
|
(160.8
|
)
|
|
$
|
(17.8
|
)
|
|
$
|
6.0
|
|
Other comprehensive income (loss) before reclassifications:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment securities
|
(90.4
|
)
|
|
18.8
|
|
|
(71.6
|
)
|
|
(71.6
|
)
|
|
0
|
|
|
0
|
|
||||||
Loss attributable to noncontrolling interest (NCI)
|
0.7
|
|
|
(0.1
|
)
|
|
0.6
|
|
|
0
|
|
|
0
|
|
|
0.6
|
|
||||||
Total other comprehensive income (loss) before reclassifications
|
(89.7
|
)
|
|
18.7
|
|
|
(71.0
|
)
|
|
(71.6
|
)
|
|
0
|
|
|
0.6
|
|
||||||
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net realized gains (losses) on securities
|
(27.2
|
)
|
|
5.7
|
|
|
(21.5
|
)
|
|
(21.5
|
)
|
|
0
|
|
|
0
|
|
||||||
Interest expense
|
(0.3
|
)
|
|
0.1
|
|
|
(0.2
|
)
|
|
0
|
|
|
(0.2
|
)
|
|
0
|
|
||||||
Total reclassification adjustment for amounts realized in net income
|
(27.5
|
)
|
|
5.8
|
|
|
(21.7
|
)
|
|
(21.5
|
)
|
|
(0.2
|
)
|
|
0
|
|
||||||
Total other comprehensive income (loss)
|
(62.2
|
)
|
|
12.9
|
|
|
(49.3
|
)
|
|
(50.1
|
)
|
|
0.2
|
|
|
0.6
|
|
||||||
Balance at June 30, 2018
|
$
|
(280.8
|
)
|
|
$
|
58.9
|
|
|
$
|
(221.9
|
)
|
|
$
|
(210.9
|
)
|
|
$
|
(17.6
|
)
|
|
$
|
6.6
|
|
|
|
|
|
|
|
|
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 |
|
|
(Income) loss attributable to NCI
|
|
||||||
Balance at December 31, 2017
|
$
|
1,977.8
|
|
|
$
|
(695.6
|
)
|
|
$
|
1,282.2
|
|
|
$
|
1,295.0
|
|
|
$
|
(14.8
|
)
|
|
$
|
2.0
|
|
Cumulative effect adjustment
|
(2,006.0
|
)
|
|
705.8
|
|
|
(1,300.2
|
)
|
|
(1,300.2
|
)
|
|
0
|
|
|
0
|
|
||||||
Reclassification of disproportionate amounts
|
0
|
|
|
(4.3
|
)
|
|
(4.3
|
)
|
|
(1.1
|
)
|
|
(3.2
|
)
|
|
0
|
|
||||||
Adjusted balance at December 31, 2017
|
(28.2
|
)
|
|
5.9
|
|
|
(22.3
|
)
|
|
(6.3
|
)
|
|
(18.0
|
)
|
|
2.0
|
|
||||||
Other comprehensive income (loss) before reclassifications:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment securities
|
(293.8
|
)
|
|
61.6
|
|
|
(232.2
|
)
|
|
(232.2
|
)
|
|
0
|
|
|
0
|
|
||||||
Loss attributable to noncontrolling interest (NCI)
|
5.8
|
|
|
(1.2
|
)
|
|
4.6
|
|
|
0
|
|
|
0
|
|
|
4.6
|
|
||||||
Total other comprehensive income (loss) before reclassifications
|
(288.0
|
)
|
|
60.4
|
|
|
(227.6
|
)
|
|
(232.2
|
)
|
|
0
|
|
|
4.6
|
|
||||||
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net realized gains (losses) on securities
|
(34.9
|
)
|
|
7.3
|
|
|
(27.6
|
)
|
|
(27.6
|
)
|
|
0
|
|
|
0
|
|
||||||
Interest expense
|
(0.5
|
)
|
|
0.1
|
|
|
(0.4
|
)
|
|
0
|
|
|
(0.4
|
)
|
|
0
|
|
||||||
Total reclassification adjustment for amounts realized in net income
|
(35.4
|
)
|
|
7.4
|
|
|
(28.0
|
)
|
|
(27.6
|
)
|
|
(0.4
|
)
|
|
0
|
|
||||||
Total other comprehensive income (loss)
|
(252.6
|
)
|
|
53.0
|
|
|
(199.6
|
)
|
|
(204.6
|
)
|
|
0.4
|
|
|
4.6
|
|
||||||
Balance at June 30, 2018
|
$
|
(280.8
|
)
|
|
$
|
58.9
|
|
|
$
|
(221.9
|
)
|
|
$
|
(210.9
|
)
|
|
$
|
(17.6
|
)
|
|
$
|
6.6
|
|
(millions)
|
June 30, 2019
|
|
|
June 30, 2018
|
|
|
December 31, 2018
|
|
|||
Balance, Beginning of period
|
$
|
214.5
|
|
|
$
|
503.7
|
|
|
$
|
503.7
|
|
Net income attributable to NCI
|
4.0
|
|
|
8.8
|
|
|
5.7
|
|
|||
Other comprehensive income (loss) attributable to NCI1
|
4.9
|
|
|
(4.6
|
)
|
|
(3.3
|
)
|
|||
Exercise of employee stock options
|
7.7
|
|
|
9.4
|
|
|
9.4
|
|
|||
Purchase/change of ARX minority shares
|
(11.2
|
)
|
|
(295.9
|
)
|
|
(298.2
|
)
|
|||
Change in redemption value of NCI
|
0.2
|
|
|
(3.2
|
)
|
|
(2.8
|
)
|
|||
Balance, End of period
|
$
|
220.1
|
|
|
$
|
218.2
|
|
|
$
|
214.5
|
|
(millions)
|
June 30, 2019
|
|
|
June 30, 2018
|
|
|
December 31, 2018
|
|
|||
Intangible assets subject to amortization
|
$
|
246.3
|
|
|
$
|
318.2
|
|
|
$
|
282.2
|
|
Indefinite-lived intangible assets1
|
12.4
|
|
|
12.4
|
|
|
12.4
|
|
|||
Total
|
$
|
258.7
|
|
|
$
|
330.6
|
|
|
$
|
294.6
|
|
(millions)
|
June 30, 2019
|
|
June 30, 2018
|
|
December 31, 2018
|
||||||||||||||||||||||||
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
|
|
$
|
155.6
|
|
$
|
100.6
|
|
|
$
|
256.2
|
|
$
|
119.0
|
|
$
|
137.2
|
|
|
$
|
256.2
|
|
$
|
137.3
|
|
$
|
118.9
|
|
Agency relationships
|
159.2
|
|
48.3
|
|
110.9
|
|
|
159.2
|
|
37.0
|
|
122.2
|
|
|
159.2
|
|
42.6
|
|
116.6
|
|
|||||||||
Software rights
|
79.1
|
|
45.4
|
|
33.7
|
|
|
79.1
|
|
34.7
|
|
44.4
|
|
|
79.1
|
|
40.1
|
|
39.0
|
|
|||||||||
Trade name
|
34.8
|
|
33.7
|
|
1.1
|
|
|
34.8
|
|
20.4
|
|
14.4
|
|
|
34.8
|
|
27.1
|
|
7.7
|
|
|||||||||
Total
|
$
|
529.3
|
|
$
|
283.0
|
|
$
|
246.3
|
|
|
$
|
529.3
|
|
$
|
211.1
|
|
$
|
318.2
|
|
|
$
|
529.3
|
|
$
|
247.1
|
|
$
|
282.2
|
|
(millions)
|
Commitments
|
|
|
2019
|
$
|
64.1
|
|
2020
|
65.5
|
|
|
2021
|
52.8
|
|
|
2022
|
24.3
|
|
|
2023
|
8.5
|
|
|
Thereafter
|
3.8
|
|
|
Total
|
$
|
219.0
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||||||
|
Underwriting
Profit (Loss)
|
|
Underwriting
Profit (Loss)
|
|
Underwriting
Profit (Loss)
|
|
Underwriting
Profit (Loss)
|
||||||||||||||||||||
($ in millions)
|
$
|
|
Margin
|
|
$
|
|
Margin
|
|
$
|
|
Margin
|
|
$
|
|
Margin
|
||||||||||||
Personal Lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency
|
$
|
434.7
|
|
|
11.9
|
%
|
|
$
|
360.9
|
|
|
11.2
|
%
|
|
$
|
887.7
|
|
|
12.4
|
%
|
|
$
|
770.0
|
|
|
12.2
|
%
|
Direct
|
326.6
|
|
|
8.7
|
|
|
287.9
|
|
|
9.0
|
|
|
648.5
|
|
|
8.9
|
|
|
585.9
|
|
|
9.4
|
|
||||
Total Personal Lines
|
761.3
|
|
|
10.3
|
|
|
648.8
|
|
|
10.1
|
|
|
1,536.2
|
|
|
10.6
|
|
|
1,355.9
|
|
|
10.8
|
|
||||
Commercial Lines
|
124.4
|
|
|
11.6
|
|
|
100.3
|
|
|
11.3
|
|
|
291.0
|
|
|
14.0
|
|
|
195.1
|
|
|
11.5
|
|
||||
Property1
|
(34.4
|
)
|
|
(9.0
|
)
|
|
(51.9
|
)
|
|
(16.6
|
)
|
|
(26.7
|
)
|
|
(3.6
|
)
|
|
(23.4
|
)
|
|
(3.9
|
)
|
||||
Other indemnity2
|
0
|
|
|
NM
|
|
|
0
|
|
|
NM
|
|
|
0
|
|
|
NM
|
|
|
0.2
|
|
|
NM
|
|
||||
Total underwriting operations
|
$
|
851.3
|
|
|
9.6
|
%
|
|
$
|
697.2
|
|
|
9.1
|
%
|
|
$
|
1,800.5
|
|
|
10.4
|
%
|
|
$
|
1,527.8
|
|
|
10.3
|
%
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||
Underwriting Performance1
|
2019
|
|
|
2018
|
|
|
Change
|
|
|
2019
|
|
|
2018
|
|
|
Change
|
|
Personal Lines—Agency
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss & loss adjustment expense ratio
|
68.9
|
|
|
69.4
|
|
|
(0.5
|
)
|
|
68.3
|
|
|
68.6
|
|
|
(0.3
|
)
|
Underwriting expense ratio
|
19.2
|
|
|
19.4
|
|
|
(0.2
|
)
|
|
19.3
|
|
|
19.2
|
|
|
0.1
|
|
Combined ratio
|
88.1
|
|
|
88.8
|
|
|
(0.7
|
)
|
|
87.6
|
|
|
87.8
|
|
|
(0.2
|
)
|
Personal Lines—Direct
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss & loss adjustment expense ratio
|
70.1
|
|
|
70.9
|
|
|
(0.8
|
)
|
|
70.0
|
|
|
70.3
|
|
|
(0.3
|
)
|
Underwriting expense ratio
|
21.2
|
|
|
20.1
|
|
|
1.1
|
|
|
21.1
|
|
|
20.3
|
|
|
0.8
|
|
Combined ratio
|
91.3
|
|
|
91.0
|
|
|
0.3
|
|
|
91.1
|
|
|
90.6
|
|
|
0.5
|
|
Total Personal Lines
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss & loss adjustment expense ratio
|
69.5
|
|
|
70.2
|
|
|
(0.7
|
)
|
|
69.2
|
|
|
69.4
|
|
|
(0.2
|
)
|
Underwriting expense ratio
|
20.2
|
|
|
19.7
|
|
|
0.5
|
|
|
20.2
|
|
|
19.8
|
|
|
0.4
|
|
Combined ratio
|
89.7
|
|
|
89.9
|
|
|
(0.2
|
)
|
|
89.4
|
|
|
89.2
|
|
|
0.2
|
|
Commercial Lines
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss & loss adjustment expense ratio
|
67.3
|
|
|
68.7
|
|
|
(1.4
|
)
|
|
65.0
|
|
|
68.0
|
|
|
(3.0
|
)
|
Underwriting expense ratio
|
21.1
|
|
|
20.0
|
|
|
1.1
|
|
|
21.0
|
|
|
20.5
|
|
|
0.5
|
|
Combined ratio
|
88.4
|
|
|
88.7
|
|
|
(0.3
|
)
|
|
86.0
|
|
|
88.5
|
|
|
(2.5
|
)
|
Property
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss & loss adjustment expense ratio
|
77.7
|
|
|
79.9
|
|
|
(2.2
|
)
|
|
73.0
|
|
|
68.0
|
|
|
5.0
|
|
Underwriting expense ratio2
|
31.3
|
|
|
36.7
|
|
|
(5.4
|
)
|
|
30.6
|
|
|
35.9
|
|
|
(5.3
|
)
|
Combined ratio2
|
109.0
|
|
|
116.6
|
|
|
(7.6
|
)
|
|
103.6
|
|
|
103.9
|
|
|
(0.3
|
)
|
Total Underwriting Operations3
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss & loss adjustment expense ratio
|
69.6
|
|
|
70.4
|
|
|
(0.8
|
)
|
|
68.8
|
|
|
69.2
|
|
|
(0.4
|
)
|
Underwriting expense ratio
|
20.8
|
|
|
20.5
|
|
|
0.3
|
|
|
20.8
|
|
|
20.5
|
|
|
0.3
|
|
Combined ratio
|
90.4
|
|
|
90.9
|
|
|
(0.5
|
)
|
|
89.6
|
|
|
89.7
|
|
|
(0.1
|
)
|
Accident year — Loss & loss adjustment expense ratio4
|
68.8
|
|
|
70.1
|
|
|
(1.3
|
)
|
|
67.6
|
|
|
68.6
|
|
|
(1.0
|
)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
||||
Change in net loss and LAE reserves
|
$
|
485.4
|
|
|
$
|
585.7
|
|
|
$
|
825.5
|
|
|
$
|
860.9
|
|
Paid losses and LAE
|
5,652.7
|
|
|
4,789.6
|
|
|
11,071.6
|
|
|
9,385.2
|
|
||||
Total incurred losses and LAE
|
$
|
6,138.1
|
|
|
$
|
5,375.3
|
|
|
$
|
11,897.1
|
|
|
$
|
10,246.1
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Vehicle businesses
|
$
|
129.8
|
|
|
$
|
124.9
|
|
|
$
|
176.1
|
|
|
$
|
150.4
|
|
Property business, net of reinsurance (excluding ASL)
|
131.4
|
|
|
122.8
|
|
|
193.0
|
|
|
147.4
|
|
||||
Reinsurance (recoverable)/reversal on ASL1
|
(49.5
|
)
|
|
(41.2
|
)
|
|
(85.5
|
)
|
|
(42.0
|
)
|
||||
Property business, net
|
81.9
|
|
|
81.6
|
|
|
107.5
|
|
|
105.4
|
|
||||
Total net catastrophe losses incurred
|
$
|
211.7
|
|
|
$
|
206.5
|
|
|
$
|
283.6
|
|
|
$
|
255.8
|
|
Increase to combined ratio
|
2.4
|
pts.
|
|
2.7
|
pts.
|
|
1.6
|
pts.
|
|
1.7
|
pts.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Reinsurance recoverable on ASL, Beginning of period
|
$
|
52.2
|
|
|
$
|
5.4
|
|
|
$
|
12.5
|
|
|
$
|
4.6
|
|
Reinsurance recoverables recognized on losses
|
|
|
|
|
|
|
|
||||||||
Accident year:
|
|
|
|
|
|
|
|
||||||||
2019
|
37.1
|
|
|
NA
|
|
|
73.4
|
|
|
NA
|
|
||||
2018
|
0
|
|
|
37.7
|
|
|
0
|
|
|
37.7
|
|
||||
2017
|
12.4
|
|
|
3.5
|
|
|
12.1
|
|
|
4.3
|
|
||||
Total
|
49.5
|
|
|
41.2
|
|
|
85.5
|
|
|
42.0
|
|
||||
Reinsurance recoverables recognized on ALAE
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accident year:
|
|
|
|
|
|
|
|
||||||||
2019
|
4.9
|
|
|
NA
|
|
|
8.1
|
|
|
NA
|
|
||||
2018
|
0
|
|
|
4.1
|
|
|
0
|
|
|
4.1
|
|
||||
2017
|
(0.7
|
)
|
|
0.5
|
|
|
(0.2
|
)
|
|
0.5
|
|
||||
Total
|
4.2
|
|
|
4.6
|
|
|
7.9
|
|
|
4.6
|
|
||||
Total reinsurance recoverables recognized
|
|
|
|
|
|
|
|
||||||||
Accident year:
|
|
|
|
|
|
|
|
||||||||
2019
|
42.0
|
|
|
NA
|
|
|
81.5
|
|
|
NA
|
|
||||
2018
|
0
|
|
|
41.8
|
|
|
0
|
|
|
41.8
|
|
||||
2017
|
11.7
|
|
|
4.0
|
|
|
11.9
|
|
|
4.8
|
|
||||
Total
|
53.7
|
|
|
45.8
|
|
|
93.4
|
|
|
46.6
|
|
||||
Reinsurance recoverable on ASL, End of period
|
$
|
105.9
|
|
|
$
|
51.2
|
|
|
$
|
105.9
|
|
|
$
|
51.2
|
|
•
|
Bodily injury increased about 9% for both the second quarter and first six months of 2019, in part due to increases in medical costs and actuarially determined reserve increases to reflect accelerating paid loss trends we experienced in recent quarters.
|
•
|
Auto property damage increased about 6% and collision coverages increased about 7% for both the second quarter and first six months of 2019, in part due to an increase in the severity of total loss claims on newer vehicles and higher costs to repair newer vehicles.
|
•
|
Personal injury protection (PIP) increased about 4% for the second quarter and 6% for the first six months of 2019, which reflects more reopened claims during the first quarter 2019, predominately due to the changing claims environment in Florida.
|
•
|
PIP decreased about 6% and 5% for the second quarter and first six months of 2019, respectively.
|
•
|
Collision decreased about 5% for both periods.
|
•
|
Auto property damage decreased about 4% for both periods.
|
•
|
Bodily injury decreased about 2% for the second quarter and 3% for the first six months of 2019.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
ACTUARIAL ADJUSTMENTS
|
|
|
|
|
|
|
|
||||||||
Reserve decrease (increase)
|
|
|
|
|
|
|
|
||||||||
Prior accident years
|
$
|
(45.8
|
)
|
|
$
|
(7.0
|
)
|
|
$
|
(62.5
|
)
|
|
$
|
(0.8
|
)
|
Current accident year
|
(16.3
|
)
|
|
6.2
|
|
|
(3.0
|
)
|
|
13.9
|
|
||||
Calendar year actuarial adjustment
|
$
|
(62.1
|
)
|
|
$
|
(0.8
|
)
|
|
$
|
(65.5
|
)
|
|
$
|
13.1
|
|
PRIOR ACCIDENT YEARS DEVELOPMENT
|
|
|
|
|
|
|
|
||||||||
Favorable (unfavorable)
|
|
|
|
|
|
|
|
||||||||
Actuarial adjustment
|
$
|
(45.8
|
)
|
|
$
|
(7.0
|
)
|
|
$
|
(62.5
|
)
|
|
$
|
(0.8
|
)
|
All other development
|
(21.6
|
)
|
|
(18.9
|
)
|
|
(147.5
|
)
|
|
(80.7
|
)
|
||||
Total development
|
$
|
(67.4
|
)
|
|
$
|
(25.9
|
)
|
|
$
|
(210.0
|
)
|
|
$
|
(81.5
|
)
|
(Increase) decrease to calendar year combined ratio
|
(0.8
|
) pts.
|
|
(0.3
|
) pts.
|
|
(1.2
|
) pts.
|
|
(0.6
|
) pts.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||
($ in millions)
|
2019
|
|
2018
|
|
% Growth
|
|
2019
|
|
2018
|
|
% Growth
|
||||||||||
NET PREMIUMS WRITTEN
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Personal Lines
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
$
|
3,775.5
|
|
|
$
|
3,384.6
|
|
|
12
|
%
|
|
$
|
7,541.9
|
|
|
$
|
6,719.9
|
|
|
12
|
%
|
Direct
|
3,709.8
|
|
|
3,268.3
|
|
|
14
|
|
|
7,665.9
|
|
|
6,677.8
|
|
|
15
|
|
||||
Total Personal Lines
|
7,485.3
|
|
|
6,652.9
|
|
|
13
|
|
|
15,207.8
|
|
|
13,397.7
|
|
|
14
|
|
||||
Commercial Lines
|
1,182.7
|
|
|
1,045.2
|
|
|
13
|
|
|
2,347.9
|
|
|
1,972.1
|
|
|
19
|
|
||||
Property
|
458.5
|
|
|
397.2
|
|
|
15
|
|
|
810.7
|
|
|
694.3
|
|
|
17
|
|
||||
Total underwriting operations
|
$
|
9,126.5
|
|
|
$
|
8,095.3
|
|
|
13
|
%
|
|
$
|
18,366.4
|
|
|
$
|
16,064.1
|
|
|
14
|
%
|
NET PREMIUMS EARNED
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Personal Lines
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
$
|
3,639.6
|
|
|
$
|
3,225.7
|
|
|
13
|
%
|
|
$
|
7,148.1
|
|
|
$
|
6,289.5
|
|
|
14
|
%
|
Direct
|
3,733.4
|
|
|
3,211.8
|
|
|
16
|
|
|
7,309.7
|
|
|
6,228.1
|
|
|
17
|
|
||||
Total Personal Lines
|
7,373.0
|
|
|
6,437.5
|
|
|
15
|
|
|
14,457.8
|
|
|
12,517.6
|
|
|
15
|
|
||||
Commercial Lines
|
1,070.5
|
|
|
884.3
|
|
|
21
|
|
|
2,083.5
|
|
|
1,692.9
|
|
|
23
|
|
||||
Property
|
381.2
|
|
|
312.4
|
|
|
22
|
|
|
743.2
|
|
|
597.7
|
|
|
24
|
|
||||
Total underwriting operations
|
$
|
8,824.7
|
|
|
$
|
7,634.2
|
|
|
16
|
%
|
|
$
|
17,284.5
|
|
|
$
|
14,808.2
|
|
|
17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
June 30,
|
||||||||||||||
(thousands)
|
|
|
|
|
|
|
2019
|
|
2018
|
|
% Growth
|
||||||||||
POLICIES IN FORCE
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency auto
|
|
|
|
|
|
|
6,783.7
|
|
|
6,107.4
|
|
|
11
|
%
|
|||||||
Direct auto
|
|
|
|
|
|
|
7,528.4
|
|
|
6,650.9
|
|
|
13
|
|
|||||||
Total auto
|
|
|
|
|
|
|
14,312.1
|
|
|
12,758.3
|
|
|
12
|
|
|||||||
Special lines1
|
|
|
|
|
|
|
4,510.2
|
|
|
4,387.4
|
|
|
3
|
|
|||||||
Personal Lines — total
|
|
|
|
|
|
|
18,822.3
|
|
|
17,145.7
|
|
|
10
|
|
|||||||
Commercial Lines
|
|
|
|
|
|
|
734.2
|
|
|
678.9
|
|
|
8
|
|
|||||||
Property
|
|
|
|
|
|
|
2,071.6
|
|
|
1,766.6
|
|
|
17
|
|
|||||||
Companywide total
|
|
|
|
|
|
|
21,628.1
|
|
|
19,591.2
|
|
|
10
|
%
|
|
Growth Over Prior Year
|
||||||||
|
Quarter
|
|
Year-to-date
|
||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
APPLICATIONS
|
|
|
|
|
|
||||
New
|
5
|
%
|
21
|
%
|
|
6
|
%
|
21
|
%
|
Renewal
|
11
|
|
9
|
|
|
11
|
|
10
|
|
WRITTEN PREMIUM PER POLICY - AUTO
|
2
|
|
5
|
|
|
3
|
|
5
|
|
RETENTION MEASURES - AUTO
|
|
|
|
|
|
||||
Policy life expectancy
|
|
|
|
|
|
||||
Trailing 3-months
|
1
|
|
5
|
|
|
|
|
||
Trailing 12-months
|
(2
|
)
|
10
|
|
|
|
|
|
Growth Over Prior Year
|
||||||||
|
Quarter
|
|
Year-to-date
|
||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
Auto: new applications
|
6
|
%
|
21
|
%
|
|
7
|
%
|
20
|
%
|
renewal applications
|
11
|
|
10
|
|
|
11
|
|
11
|
|
written premium per policy
|
3
|
|
5
|
|
|
3
|
|
5
|
|
Auto retention measures:
|
|
|
|
|
|
||||
policy life expectancy - trailing 3-months
|
4
|
|
5
|
|
|
|
|
||
trailing 12-months
|
0
|
|
11
|
|
|
|
|
|
Growth Over Prior Year
|
||||||||
|
Quarter
|
|
Year-to-date
|
||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
Auto: new applications
|
6
|
%
|
32
|
%
|
|
7
|
%
|
31
|
%
|
renewal applications
|
15
|
|
13
|
|
|
16
|
|
13
|
|
written premium per policy
|
2
|
|
5
|
|
|
2
|
|
5
|
|
Auto retention measures:
|
|
|
|
|
|
||||
policy life expectancy - trailing 3-months
|
(2
|
)
|
4
|
|
|
|
|
||
trailing 12-months
|
(4
|
)
|
9
|
|
|
|
|
|
Growth Over Prior Year
|
||||||||
|
Quarter
|
|
Year-to-date
|
||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
New applications
|
11
|
%
|
9
|
%
|
|
11
|
%
|
17
|
%
|
Renewal applications
|
7
|
|
5
|
|
|
8
|
|
4
|
|
Written premium per policy
|
10
|
|
12
|
|
|
12
|
|
13
|
|
Policy life expectancy - trailing 12-months
|
(7
|
)
|
2
|
|
|
|
|
|
Growth Over Prior Year
|
||||||||
|
Quarter
|
|
Year-to-date
|
||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
New applications
|
(6
|
)%
|
81
|
%
|
|
(2
|
)%
|
83
|
%
|
Renewal applications
|
23
|
|
21
|
|
|
24
|
|
20
|
|
Written premium per policy
|
3
|
|
(5
|
)
|
|
2
|
|
(5
|
)
|
|
Three Months
|
|
Six Months
|
||||||||
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Pretax recurring investment book yield (annualized)
|
3.2
|
%
|
|
2.7
|
%
|
|
3.1
|
%
|
|
2.6
|
%
|
Weighted average FTE book yield (annualized)
|
3.2
|
|
|
2.8
|
|
|
3.2
|
|
|
2.7
|
|
FTE total return:
|
|
|
|
|
|
|
|
||||
Fixed-income securities
|
2.1
|
|
|
0.3
|
|
|
4.4
|
|
|
0
|
|
Common stocks
|
4.0
|
|
|
3.1
|
|
|
17.9
|
|
|
2.7
|
|
Total portfolio
|
2.2
|
|
|
0.6
|
|
|
5.5
|
|
|
0.3
|
|
|
Three Months
|
|
Six Months
|
||||||||
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Fixed-income securities:
|
|
|
|
|
|
|
|
||||
U.S. Treasury Notes
|
2.3
|
%
|
|
0
|
%
|
|
3.9
|
%
|
|
(0.7
|
)%
|
Municipal bonds
|
1.8
|
|
|
0.8
|
|
|
3.7
|
|
|
0.6
|
|
Corporate bonds
|
2.6
|
|
|
0.3
|
|
|
6.3
|
|
|
(0.3
|
)
|
Residential mortgage-backed securities
|
1.1
|
|
|
0.6
|
|
|
2.0
|
|
|
1.1
|
|
Commercial mortgage-backed securities
|
2.2
|
|
|
0.5
|
|
|
4.7
|
|
|
0.5
|
|
Other asset-backed securities
|
1.1
|
|
|
0.5
|
|
|
2.1
|
|
|
0.7
|
|
Preferred stocks
|
2.1
|
|
|
0.5
|
|
|
8.5
|
|
|
0.5
|
|
Short-term investments
|
0.6
|
|
|
0.5
|
|
|
1.3
|
|
|
0.9
|
|
Common stocks:
|
|
|
|
|
|
|
|
||||
Indexed
|
4.0
|
|
|
3.4
|
|
|
17.9
|
|
|
2.8
|
|
Actively managed
|
5.0
|
|
|
(1.5
|
)
|
|
17.6
|
|
|
2.3
|
|
($ in millions)
|
Fair
Value
|
|
|
% of
Total
Portfolio
|
|
|
Duration
(years)
|
|
|
Rating1
|
|
June 30, 2019
|
|
|
|
|
|
|
|
||||
Fixed maturities
|
$
|
31,188.2
|
|
|
84.7
|
%
|
|
2.8
|
|
|
AA
|
Nonredeemable preferred stocks
|
1,130.0
|
|
|
3.1
|
|
|
2.5
|
|
|
BBB-
|
|
Short-term investments
|
1,360.9
|
|
|
3.7
|
|
|
<0.1
|
|
|
AA-
|
|
Total fixed-income securities
|
33,679.1
|
|
|
91.5
|
|
|
2.7
|
|
|
AA-
|
|
Common equities
|
3,135.5
|
|
|
8.5
|
|
|
na
|
|
|
na
|
|
Total portfolio2,3
|
$
|
36,814.6
|
|
|
100.0
|
%
|
|
2.7
|
|
|
AA-
|
June 30, 2018
|
|
|
|
|
|
|
|
||||
Fixed maturities
|
$
|
23,789.2
|
|
|
76.9
|
%
|
|
2.9
|
|
|
AA-
|
Nonredeemable preferred stocks
|
758.6
|
|
|
2.4
|
|
|
3.1
|
|
|
BBB-
|
|
Short-term investments
|
3,231.2
|
|
|
10.5
|
|
|
0.1
|
|
|
AA-
|
|
Total fixed-income securities
|
27,779.0
|
|
|
89.8
|
|
|
2.6
|
|
|
AA-
|
|
Common equities
|
3,142.2
|
|
|
10.2
|
|
|
na
|
|
|
na
|
|
Total portfolio2,3
|
$
|
30,921.2
|
|
|
100.0
|
%
|
|
2.6
|
|
|
AA-
|
December 31, 2018
|
|
|
|
|
|
|
|
||||
Fixed maturities
|
$
|
28,111.5
|
|
|
83.7
|
%
|
|
2.9
|
|
|
AA-
|
Nonredeemable preferred stocks
|
1,033.9
|
|
|
3.1
|
|
|
2.6
|
|
|
BBB-
|
|
Short-term investments
|
1,795.9
|
|
|
5.4
|
|
|
0.1
|
|
|
AA
|
|
Total fixed-income securities
|
30,941.3
|
|
|
92.2
|
|
|
2.8
|
|
|
AA-
|
|
Common equities
|
2,626.1
|
|
|
7.8
|
|
|
na
|
|
|
na
|
|
Total portfolio2,3
|
$
|
33,567.4
|
|
|
100.0
|
%
|
|
2.8
|
|
|
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.
|
|
June 30, 2019
|
|
June 30, 2018
|
|
December 31, 2018
|
||||||||||||
($ 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
|
$
|
489.5
|
|
1.3
|
%
|
|
$
|
802.2
|
|
2.6
|
%
|
|
$
|
754.8
|
|
2.2
|
%
|
Redeemable preferred stocks1
|
133.7
|
|
0.4
|
|
|
156.3
|
|
0.5
|
|
|
154.1
|
|
0.5
|
|
|||
Nonredeemable preferred stocks
|
1,130.0
|
|
3.1
|
|
|
758.6
|
|
2.4
|
|
|
1,033.9
|
|
3.1
|
|
|||
Common equities
|
3,135.5
|
|
8.5
|
|
|
3,142.2
|
|
10.2
|
|
|
2,626.1
|
|
7.8
|
|
|||
Total Group I securities
|
4,888.7
|
|
13.3
|
|
|
4,859.3
|
|
15.7
|
|
|
4,568.9
|
|
13.6
|
|
|||
Group II securities:
|
|
|
|
|
|
|
|
|
|||||||||
Other fixed maturities2
|
30,565.0
|
|
83.0
|
|
|
22,830.7
|
|
73.8
|
|
|
27,202.6
|
|
81.0
|
|
|||
Short-term investments
|
1,360.9
|
|
3.7
|
|
|
3,231.2
|
|
10.5
|
|
|
1,795.9
|
|
5.4
|
|
|||
Total Group II securities
|
31,925.9
|
|
86.7
|
|
|
26,061.9
|
|
84.3
|
|
|
28,998.5
|
|
86.4
|
|
|||
Total portfolio
|
$
|
36,814.6
|
|
100.0
|
%
|
|
$
|
30,921.2
|
|
100.0
|
%
|
|
$
|
33,567.4
|
|
100.0
|
%
|
(millions)
|
Gross Holding Period Gains
|
|
Gross Holding Period Losses
|
|
Net Holding Period Gains (Losses)
|
|
|||
Beginning of period
|
|
|
|
||||||
Hybrid fixed-maturity securities
|
$
|
0.1
|
|
$
|
(10.3
|
)
|
$
|
(10.2
|
)
|
Equity securities
|
1,568.7
|
|
(60.2
|
)
|
1,508.5
|
|
|||
Balance at December 31, 2018
|
1,568.8
|
|
(70.5
|
)
|
1,498.3
|
|
|||
Year-to-date change in fair value
|
|
|
|
|
|
|
|||
Hybrid fixed-maturity securities
|
3.0
|
|
9.1
|
|
12.1
|
|
|||
Equity securities
|
467.4
|
|
25.6
|
|
493.0
|
|
|||
Total holding period gains (losses) during the period
|
470.4
|
|
34.7
|
|
505.1
|
|
|||
End of period
|
|
|
|
|
|
|
|||
Hybrid fixed-maturity securities
|
3.1
|
|
(1.2
|
)
|
1.9
|
|
|||
Equity securities
|
2,036.1
|
|
(34.6
|
)
|
2,001.5
|
|
|||
Balance at June 30, 2019
|
$
|
2,039.2
|
|
$
|
(35.8
|
)
|
$
|
2,003.4
|
|
|
|
|
|
Total Gross Unrealized Losses1
|
|
||
(millions)
|
Fair Value
|
|
|
||||
Unrealized loss for less than 12 months
|
$
|
966.5
|
|
|
$
|
2.0
|
|
Unrealized loss for 12 months or greater
|
2,801.9
|
|
|
9.9
|
|
||
Total
|
$
|
3,768.4
|
|
|
$
|
11.9
|
|
Duration Distribution
|
June 30, 2019
|
|
|
June 30, 2018
|
|
|
December 31, 2018
|
|
1 year
|
24.1
|
%
|
|
21.9
|
%
|
|
19.4
|
%
|
2 years
|
20.6
|
|
|
18.1
|
|
|
17.0
|
|
3 years
|
20.1
|
|
|
24.9
|
|
|
27.0
|
|
5 years
|
19.8
|
|
|
19.3
|
|
|
22.8
|
|
7 years
|
12.3
|
|
|
10.2
|
|
|
10.4
|
|
10 years
|
3.1
|
|
|
5.6
|
|
|
3.5
|
|
20 years
|
0
|
|
|
0
|
|
|
(0.1
|
)
|
Total fixed-income portfolio
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Rating
|
June 30, 2019
|
|
|
June 30, 2018
|
|
|
December 31, 2018
|
|
AAA
|
58.0
|
%
|
|
47.3
|
%
|
|
50.5
|
%
|
AA
|
10.4
|
|
|
11.7
|
|
|
10.8
|
|
A
|
8.4
|
|
|
11.1
|
|
|
8.4
|
|
BBB
|
20.4
|
|
|
24.7
|
|
|
25.9
|
|
Non-investment grade/non-rated1
|
|
|
|
|
|
|||
BB
|
1.9
|
|
|
3.3
|
|
|
3.0
|
|
B
|
0.6
|
|
|
1.5
|
|
|
1.1
|
|
CCC and lower
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
Non-rated
|
0.2
|
|
|
0.3
|
|
|
0.2
|
|
Total fixed-income portfolio
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
($ in millions)
|
Fair
Value
|
|
|
Duration
(years)
|
|
|
U.S. Treasury Notes
|
|
|
|
|||
Less than one year
|
$
|
371.2
|
|
|
0.6
|
|
One to two years
|
3,599.1
|
|
|
1.6
|
|
|
Two to three years
|
2,037.5
|
|
|
2.3
|
|
|
Three to five years
|
2,970.4
|
|
|
4.1
|
|
|
Five to seven years
|
2,603.7
|
|
|
6.0
|
|
|
Seven to ten years
|
797.5
|
|
|
8.5
|
|
|
Total U.S. Treasury Notes
|
$
|
12,379.4
|
|
|
3.7
|
|
($ in millions)
|
Fair
Value
|
|
|
Net Unrealized
Gains (Losses)
|
|
|
% of Asset-
Backed
Securities
|
|
|
Duration
(years)
|
|
|
Rating
(at period end)
|
||
June 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Collateralized mortgage obligations
|
$
|
388.2
|
|
|
$
|
1.4
|
|
|
4.0
|
%
|
|
1.5
|
|
|
AA+
|
Home equity (sub-prime bonds)
|
277.0
|
|
|
3.4
|
|
|
2.9
|
|
|
0.6
|
|
|
A
|
||
Residential mortgage-backed securities
|
665.2
|
|
|
4.8
|
|
|
6.9
|
|
|
1.1
|
|
|
AA-
|
||
Commercial mortgage-backed securities
|
4,441.9
|
|
|
80.7
|
|
|
46.3
|
|
|
2.5
|
|
|
AA-
|
||
Other asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Automobile
|
2,056.8
|
|
|
6.9
|
|
|
21.4
|
|
|
0.7
|
|
|
AAA-
|
||
Credit card
|
791.2
|
|
|
1.4
|
|
|
8.2
|
|
|
0.5
|
|
|
AAA
|
||
Student loan
|
594.3
|
|
|
1.7
|
|
|
6.2
|
|
|
0.8
|
|
|
AAA-
|
||
Other1
|
1,054.9
|
|
|
8.9
|
|
|
11.0
|
|
|
1.5
|
|
|
AA
|
||
Other asset-backed securities
|
4,497.2
|
|
|
18.9
|
|
|
46.8
|
|
|
0.9
|
|
|
AAA-
|
||
Total asset-backed securities
|
$
|
9,604.3
|
|
|
$
|
104.4
|
|
|
100.0
|
%
|
|
1.6
|
|
|
AA
|
($ in millions)
|
Fair
Value
|
|
|
Net Unrealized
Gains (Losses)
|
|
|
% of Asset-
Backed
Securities
|
|
|
Duration
(years)
|
|
|
Rating
(at period end)
|
||
June 30, 2018
|
|
|
|
|
|
|
|
|
|
||||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Collateralized mortgage obligations
|
$
|
444.9
|
|
|
$
|
(2.1
|
)
|
|
6.7
|
%
|
|
1.1
|
|
|
AA
|
Home equity (sub-prime bonds)
|
377.7
|
|
|
5.1
|
|
|
5.6
|
|
|
0.3
|
|
|
BBB+
|
||
Residential mortgage-backed securities
|
822.6
|
|
|
3.0
|
|
|
12.3
|
|
|
0.7
|
|
|
A+
|
||
Commercial mortgage-backed securities
|
2,696.9
|
|
|
(28.6
|
)
|
|
40.3
|
|
|
2.7
|
|
|
A+
|
||
Other asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Automobile
|
1,358.6
|
|
|
(4.7
|
)
|
|
20.3
|
|
|
0.9
|
|
|
AAA-
|
||
Credit card
|
513.8
|
|
|
(0.2
|
)
|
|
7.6
|
|
|
0.9
|
|
|
AAA
|
||
Student loan
|
521.8
|
|
|
(0.6
|
)
|
|
7.8
|
|
|
1.0
|
|
|
AA
|
||
Other1
|
783.4
|
|
|
(6.2
|
)
|
|
11.7
|
|
|
1.7
|
|
|
AA-
|
||
Other asset-backed securities
|
3,177.6
|
|
|
(11.7
|
)
|
|
47.4
|
|
|
1.1
|
|
|
AA+
|
||
Total asset-backed securities
|
$
|
6,697.1
|
|
|
$
|
(37.3
|
)
|
|
100.0
|
%
|
|
1.7
|
|
|
AA-
|
($ in millions)
|
Fair
Value
|
|
|
Net Unrealized
Gains (Losses)
|
|
|
% of Asset-
Backed
Securities
|
|
|
Duration
(years)
|
|
|
Rating
(at period end)
|
||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Collateralized mortgage obligations
|
$
|
435.3
|
|
|
$
|
(2.4
|
)
|
|
5.7
|
%
|
|
1.5
|
|
|
AA
|
Home equity (sub-prime bonds)
|
299.1
|
|
|
3.3
|
|
|
3.9
|
|
|
0.4
|
|
|
A-
|
||
Residential mortgage-backed securities
|
734.4
|
|
|
0.9
|
|
|
9.6
|
|
|
1.0
|
|
|
AA-
|
||
Commercial mortgage-backed securities
|
3,301.6
|
|
|
(31.2
|
)
|
|
43.4
|
|
|
2.7
|
|
|
AA-
|
||
Other asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Automobile
|
1,609.0
|
|
|
(3.3
|
)
|
|
21.1
|
|
|
0.9
|
|
|
AAA-
|
||
Credit card
|
644.5
|
|
|
(0.5
|
)
|
|
8.5
|
|
|
0.5
|
|
|
AAA
|
||
Student loan
|
475.7
|
|
|
(1.0
|
)
|
|
6.3
|
|
|
1.1
|
|
|
AA+
|
||
Other1
|
848.1
|
|
|
(3.4
|
)
|
|
11.1
|
|
|
1.6
|
|
|
AA-
|
||
Other asset-backed securities
|
3,577.3
|
|
|
(8.2
|
)
|
|
47.0
|
|
|
1.0
|
|
|
AA+
|
||
Total asset-backed securities
|
$
|
7,613.3
|
|
|
$
|
(38.5
|
)
|
|
100.0
|
%
|
|
1.7
|
|
|
AA
|
Residential Mortgage-Backed Securities (at June 30, 2019)
|
||||||||||||||||||||||
|
|
|
Collateralized Mortgage Obligations
|
|
|
|
|
|||||||||||||||
($ in millions)
Rating1 |
Home Equity
|
|
|
Non-Agency Prime
|
|
|
Alt-A2
|
|
|
Government/GSE3
|
|
|
Total
|
|
% of Total
|
|
||||||
AAA
|
$
|
76.9
|
|
|
$
|
311.5
|
|
|
$
|
1.6
|
|
|
$
|
2.1
|
|
|
$
|
392.1
|
|
|
59.0
|
%
|
AA
|
64.1
|
|
|
10.8
|
|
|
8.1
|
|
|
0.7
|
|
|
83.7
|
|
|
12.6
|
|
|||||
A
|
57.7
|
|
|
2.4
|
|
|
0
|
|
|
0
|
|
|
60.1
|
|
|
9.0
|
|
|||||
BBB
|
6.4
|
|
|
2.9
|
|
|
0.9
|
|
|
0
|
|
|
10.2
|
|
|
1.5
|
|
|||||
Non-investment grade/non-rated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
BB
|
28.5
|
|
|
1.9
|
|
|
0.7
|
|
|
0
|
|
|
31.1
|
|
|
4.7
|
|
|||||
B
|
24.4
|
|
|
0
|
|
|
0.8
|
|
|
0
|
|
|
25.2
|
|
|
3.8
|
|
|||||
CCC and lower
|
9.5
|
|
|
4.1
|
|
|
0
|
|
|
0
|
|
|
13.6
|
|
|
2.0
|
|
|||||
Non-rated
|
9.5
|
|
|
1.9
|
|
|
37.8
|
|
|
0
|
|
|
49.2
|
|
|
7.4
|
|
|||||
Total fair value
|
$
|
277.0
|
|
|
$
|
335.5
|
|
|
$
|
49.9
|
|
|
$
|
2.8
|
|
|
$
|
665.2
|
|
|
100.0
|
%
|
Increase (decrease) in value
|
1.2
|
%
|
|
0.1
|
%
|
|
2.1
|
%
|
|
0.2
|
%
|
|
0.7
|
%
|
|
|
Commercial Mortgage-Backed Securities (at June 30, 2019)
|
||||||||||||||
($ in millions)
Rating1
|
Multi-Borrower
|
|
|
Single-Borrower
|
|
|
Total
|
|
% of Total
|
|
||||
AAA
|
$
|
409.9
|
|
|
$
|
1,472.0
|
|
|
$
|
1,881.9
|
|
|
42.4
|
%
|
AA
|
141.1
|
|
|
1,153.2
|
|
|
1,294.3
|
|
|
29.1
|
|
|||
A
|
130.9
|
|
|
615.3
|
|
|
746.2
|
|
|
16.8
|
|
|||
BBB
|
44.2
|
|
|
450.6
|
|
|
494.8
|
|
|
11.1
|
|
|||
Non-investment grade/non-rated:
|
|
|
|
|
|
|
|
|||||||
BB
|
0
|
|
|
24.0
|
|
|
24.0
|
|
|
0.6
|
|
|||
B
|
0.7
|
|
|
0
|
|
|
0.7
|
|
|
0
|
|
|||
Total fair value
|
$
|
726.8
|
|
|
$
|
3,715.1
|
|
|
$
|
4,441.9
|
|
|
100.0
|
%
|
Increase (decrease) in value
|
2.8
|
%
|
|
1.7
|
%
|
|
1.9
|
%
|
|
|
Corporate Securities (at June 30, 2019)
|
||||||||||||||||||||||||
(millions)
Rating
|
Consumer
|
|
Industrial
|
|
Communication
|
|
Financial Services
|
|
Technology
|
|
Basic Materials
|
|
Energy
|
|
Total
|
|
||||||||
AAA
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
32.8
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
32.8
|
|
AA
|
0
|
|
0
|
|
0
|
|
271.5
|
|
36.2
|
|
0
|
|
0
|
|
307.7
|
|
||||||||
A
|
215.3
|
|
183.7
|
|
305.9
|
|
496.5
|
|
157.6
|
|
35.0
|
|
1.3
|
|
1,395.3
|
|
||||||||
BBB
|
2,358.5
|
|
815.4
|
|
270.1
|
|
670.5
|
|
591.7
|
|
156.6
|
|
331.3
|
|
5,194.1
|
|
||||||||
Non-investment grade/non-rated:
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
BB
|
0
|
|
94.2
|
|
94.6
|
|
11.6
|
|
85.1
|
|
0
|
|
21.7
|
|
307.2
|
|
||||||||
B
|
73.8
|
|
12.7
|
|
0
|
|
27.9
|
|
9.8
|
|
0
|
|
24.4
|
|
148.6
|
|
||||||||
Total fair value
|
$
|
2,647.6
|
|
$
|
1,106.0
|
|
$
|
670.6
|
|
$
|
1,510.8
|
|
$
|
880.4
|
|
$
|
191.6
|
|
$
|
378.7
|
|
$
|
7,385.7
|
|
Preferred Stocks (at June 30, 2019)
|
|||||||||||||||||||||
|
Financial Services
|
|
|
|
|||||||||||||||||
(millions)
Rating
|
U.S. Banks
|
|
Foreign Banks
|
|
Insurance
|
|
Other
|
|
Industrials
|
|
Utilities
|
|
Total
|
|
|||||||
A
|
$
|
93.5
|
|
$
|
0
|
|
$
|
0
|
|
$
|
10.0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
103.5
|
|
BBB
|
607.5
|
|
0
|
|
103.9
|
|
54.2
|
|
129.2
|
|
10.3
|
|
905.1
|
|
|||||||
Non-investment grade/non-rated:
|
|
|
|
|
|
|
|
|
|||||||||||||
BB
|
133.4
|
|
73.1
|
|
0
|
|
0
|
|
38.2
|
|
41.4
|
|
286.1
|
|
|||||||
B
|
0
|
|
0
|
|
0
|
|
32.3
|
|
0
|
|
0
|
|
32.3
|
|
|||||||
Non-rated
|
0
|
|
0
|
|
0
|
|
27.1
|
|
5.0
|
|
0
|
|
32.1
|
|
|||||||
Total fair value
|
$
|
834.4
|
|
$
|
73.1
|
|
$
|
103.9
|
|
$
|
123.6
|
|
$
|
172.4
|
|
$
|
51.7
|
|
$
|
1,359.1
|
|
($ in millions)
|
June 30, 2019
|
|
June 30, 2018
|
|
December 31, 2018
|
|||||||||||||||
Indexed common stocks
|
$
|
2,958.4
|
|
|
94.4
|
%
|
|
$
|
2,985.7
|
|
|
95.0
|
%
|
|
$
|
2,480.2
|
|
|
94.4
|
%
|
Managed common stocks
|
176.8
|
|
|
5.6
|
|
|
156.2
|
|
|
5.0
|
|
|
145.6
|
|
|
5.6
|
|
|||
Total common stocks
|
3,135.2
|
|
|
100.0
|
|
|
3,141.9
|
|
|
100.0
|
|
|
2,625.8
|
|
|
100.0
|
|
|||
Other risk investments
|
0.3
|
|
|
0
|
|
|
0.3
|
|
|
0
|
|
|
0.3
|
|
|
0
|
|
|||
Total common equities
|
$
|
3,135.5
|
|
|
100.0
|
%
|
|
$
|
3,142.2
|
|
|
100.0
|
%
|
|
$
|
2,626.1
|
|
|
100.0
|
%
|
ISSUER PURCHASES OF EQUITY SECURITIES
|
||||||||||||
2019
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
|
|
|
April
|
1,565
|
|
|
$
|
72.94
|
|
|
1,100,851
|
|
|
23,899,149
|
|
May - prior authorization
|
27,018
|
|
|
77.69
|
|
|
1,127,869
|
|
|
—
|
|
|
May - current authorization
|
295
|
|
|
79.77
|
|
|
295
|
|
|
24,999,705
|
|
|
June
|
294
|
|
|
79.46
|
|
|
589
|
|
|
24,999,411
|
|
|
Total
|
29,172
|
|
|
$
|
77.47
|
|
|
|
|
|
|
|
|
|
THE PROGRESSIVE CORPORATION
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
Date:
|
August 7, 2019
|
|
|
By: /s/ John P. Sauerland
|
|
|
|
|
John P. Sauerland
|
|
|
|
|
Vice President and Chief Financial Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|