|
|
|
☒
|
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,
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
(millions — except per share amounts)
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Net premiums earned
|
$
|
9,648.6
|
|
|
$
|
8,824.7
|
|
|
$
|
19,079.3
|
|
|
$
|
17,284.5
|
|
Investment income
|
243.8
|
|
|
261.3
|
|
|
485.0
|
|
|
514.2
|
|
||||
Net realized gains (losses) on securities:
|
|
|
|
|
|
|
|
||||||||
Net realized gains (losses) on security sales
|
260.0
|
|
|
67.5
|
|
|
575.2
|
|
|
113.6
|
|
||||
Net holding period gains (losses) on securities
|
630.8
|
|
|
112.4
|
|
|
(238.0
|
)
|
|
505.1
|
|
||||
Net impairment losses recognized in earnings
|
0
|
|
|
0
|
|
|
0
|
|
|
(24.3
|
)
|
||||
Total net realized gains (losses) on securities
|
890.8
|
|
|
179.9
|
|
|
337.2
|
|
|
594.4
|
|
||||
Fees and other revenues
|
129.5
|
|
|
134.8
|
|
|
283.0
|
|
|
265.0
|
|
||||
Service revenues
|
59.0
|
|
|
50.0
|
|
|
110.6
|
|
|
92.6
|
|
||||
Total revenues
|
10,971.7
|
|
|
9,450.7
|
|
|
20,295.1
|
|
|
18,750.7
|
|
||||
Expenses
|
|
|
|
|
|
|
|
||||||||
Losses and loss adjustment expenses
|
5,321.4
|
|
|
6,138.1
|
|
|
11,476.6
|
|
|
11,897.1
|
|
||||
Policy acquisition costs
|
795.5
|
|
|
738.6
|
|
|
1,578.3
|
|
|
1,449.2
|
|
||||
Other underwriting expenses
|
1,438.9
|
|
|
1,231.5
|
|
|
2,848.8
|
|
|
2,402.7
|
|
||||
Policyholder credit expense
|
1,033.4
|
|
|
0
|
|
|
1,033.4
|
|
|
0
|
|
||||
Investment expenses
|
4.5
|
|
|
6.2
|
|
|
9.8
|
|
|
12.4
|
|
||||
Service expenses
|
52.8
|
|
|
45.3
|
|
|
100.3
|
|
|
83.4
|
|
||||
Interest expense
|
56.4
|
|
|
47.4
|
|
|
104.4
|
|
|
94.8
|
|
||||
Total expenses
|
8,702.9
|
|
|
8,207.1
|
|
|
17,151.6
|
|
|
15,939.6
|
|
||||
Net Income
|
|
|
|
|
|
|
|
||||||||
Income before income taxes
|
2,268.8
|
|
|
1,243.6
|
|
|
3,143.5
|
|
|
2,811.1
|
|
||||
Provision for income taxes
|
478.4
|
|
|
264.6
|
|
|
654.0
|
|
|
749.3
|
|
||||
Net income
|
1,790.4
|
|
|
979.0
|
|
|
2,489.5
|
|
|
2,061.8
|
|
||||
Net (income) loss attributable to noncontrolling interest (NCI)
|
0
|
|
|
0.4
|
|
|
0
|
|
|
(4.0
|
)
|
||||
Net income attributable to Progressive
|
1,790.4
|
|
|
979.4
|
|
|
2,489.5
|
|
|
2,057.8
|
|
||||
Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
||||||||
Changes in:
|
|
|
|
|
|
|
|
||||||||
Total net unrealized gains (losses) on fixed-maturity securities
|
567.4
|
|
|
277.4
|
|
|
630.2
|
|
|
578.5
|
|
||||
Net unrealized losses on forecasted transactions
|
0.2
|
|
|
0.2
|
|
|
0.4
|
|
|
0.4
|
|
||||
Other comprehensive income (loss)
|
567.6
|
|
|
277.6
|
|
|
630.6
|
|
|
578.9
|
|
||||
Other comprehensive (income) loss attributable to NCI
|
0
|
|
|
(2.6
|
)
|
|
0
|
|
|
(4.9
|
)
|
||||
Comprehensive income attributable to Progressive
|
$
|
2,358.0
|
|
|
$
|
1,254.4
|
|
|
$
|
3,120.1
|
|
|
$
|
2,631.8
|
|
Computation of Earnings Per Common Share
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Progressive
|
$
|
1,790.4
|
|
|
$
|
979.4
|
|
|
$
|
2,489.5
|
|
|
$
|
2,057.8
|
|
Less: Preferred share dividends
|
6.7
|
|
|
6.7
|
|
|
13.4
|
|
|
13.4
|
|
||||
Net income available to common shareholders
|
$
|
1,783.7
|
|
|
$
|
972.7
|
|
|
$
|
2,476.1
|
|
|
$
|
2,044.4
|
|
Average common shares outstanding - Basic
|
584.8
|
|
|
583.6
|
|
|
584.8
|
|
|
583.5
|
|
||||
Net effect of dilutive stock-based compensation
|
2.4
|
|
|
3.3
|
|
|
2.3
|
|
|
3.2
|
|
||||
Total average equivalent common shares - Diluted
|
587.2
|
|
|
586.9
|
|
|
587.1
|
|
|
586.7
|
|
||||
Basic: Earnings per common share
|
$
|
3.05
|
|
|
$
|
1.67
|
|
|
$
|
4.23
|
|
|
$
|
3.50
|
|
Diluted: Earnings per common share
|
$
|
3.04
|
|
|
$
|
1.66
|
|
|
$
|
4.22
|
|
|
$
|
3.48
|
|
|
June 30,
|
|
December 31,
|
||||||||
(millions — except per share amount)
|
2020
|
|
|
2019
|
|
|
2019
|
|
|||
Assets
|
|
|
|
|
|
||||||
Available-for-sale securities, at fair value:
|
|
|
|
|
|
||||||
Fixed maturities (amortized cost: $33,467.9, $30,588.2, and $32,643.1)
|
$
|
34,726.4
|
|
|
$
|
31,188.2
|
|
|
$
|
33,110.3
|
|
Short-term investments (amortized cost: $4,700.5, $1,360.9, and $1,798.8)
|
4,700.5
|
|
|
1,360.9
|
|
|
1,798.8
|
|
|||
Total available-for-sale securities
|
39,426.9
|
|
|
32,549.1
|
|
|
34,909.1
|
|
|||
Equity securities, at fair value:
|
|
|
|
|
|
||||||
Nonredeemable preferred stocks (cost: $1,205.4, $1,060.3, and $971.3)
|
1,180.6
|
|
|
1,130.0
|
|
|
1,038.9
|
|
|||
Common equities (cost: $1,128.8, $1,203.7, and $1,125.5)
|
3,170.4
|
|
|
3,135.5
|
|
|
3,306.3
|
|
|||
Total equity securities
|
4,351.0
|
|
|
4,265.5
|
|
|
4,345.2
|
|
|||
Total investments
|
43,777.9
|
|
|
36,814.6
|
|
|
39,254.3
|
|
|||
Cash and cash equivalents
|
108.0
|
|
|
91.9
|
|
|
226.2
|
|
|||
Restricted cash
|
1.1
|
|
|
1.0
|
|
|
1.2
|
|
|||
Total cash, cash equivalents, and restricted cash
|
109.1
|
|
|
92.9
|
|
|
227.4
|
|
|||
Accrued investment income
|
190.8
|
|
|
187.5
|
|
|
181.3
|
|
|||
Premiums receivable, net of allowance of $437.9, $240.7, and $283.2
|
7,557.4
|
|
|
7,167.1
|
|
|
7,507.3
|
|
|||
Reinsurance recoverables
|
3,654.3
|
|
|
3,051.5
|
|
|
3,378.9
|
|
|||
Prepaid reinsurance premiums
|
361.3
|
|
|
338.0
|
|
|
626.5
|
|
|||
Deferred acquisition costs
|
1,154.8
|
|
|
1,047.4
|
|
|
1,056.5
|
|
|||
Property and equipment, net of accumulated depreciation of $1,241.7, $1,105.6, and $1,138.1
|
1,189.8
|
|
|
1,174.9
|
|
|
1,213.7
|
|
|||
Goodwill
|
452.7
|
|
|
452.7
|
|
|
452.7
|
|
|||
Intangible assets, net of accumulated amortization of $297.8, $283.6, and $314.0
|
199.7
|
|
|
258.7
|
|
|
228.3
|
|
|||
Other assets
|
758.3
|
|
|
738.9
|
|
|
768.4
|
|
|||
Total assets
|
$
|
59,406.1
|
|
|
$
|
51,324.2
|
|
|
$
|
54,895.3
|
|
Liabilities
|
|
|
|
|
|
||||||
Unearned premiums
|
$
|
13,055.6
|
|
|
$
|
11,796.7
|
|
|
$
|
12,388.8
|
|
Loss and loss adjustment expense reserves
|
18,512.0
|
|
|
16,568.6
|
|
|
18,105.4
|
|
|||
Net deferred income taxes
|
197.1
|
|
|
134.5
|
|
|
132.5
|
|
|||
Accounts payable, accrued expenses, and other liabilities
|
5,576.1
|
|
|
4,867.5
|
|
|
5,962.7
|
|
|||
Debt1
|
5,394.7
|
|
|
4,406.0
|
|
|
4,407.1
|
|
|||
Total liabilities
|
42,735.5
|
|
|
37,773.3
|
|
|
40,996.5
|
|
|||
Redeemable noncontrolling interest (NCI)2
|
0
|
|
|
220.1
|
|
|
225.6
|
|
|||
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 212.1, 213.4, and 212.9)
|
585.4
|
|
|
584.1
|
|
|
584.6
|
|
|||
Paid-in capital
|
1,614.5
|
|
|
1,523.3
|
|
|
1,573.4
|
|
|||
Retained earnings
|
13,001.8
|
|
|
10,276.4
|
|
|
10,679.6
|
|
|||
Accumulated other comprehensive income (loss):
|
|
|
|
|
|
||||||
Net unrealized gains (losses) on fixed-maturity securities
|
991.0
|
|
|
472.9
|
|
|
360.8
|
|
|||
Net unrealized losses on forecasted transactions
|
(16.0
|
)
|
|
(16.8
|
)
|
|
(16.4
|
)
|
|||
Accumulated other comprehensive (income) loss attributable to NCI
|
0
|
|
|
(3.0
|
)
|
|
(2.7
|
)
|
|||
Total accumulated other comprehensive income (loss) attributable to Progressive
|
975.0
|
|
|
453.1
|
|
|
341.7
|
|
|||
Total shareholders’ equity
|
16,670.6
|
|
|
13,330.8
|
|
|
13,673.2
|
|
|||
Total liabilities, redeemable NCI, and shareholders’ equity
|
$
|
59,406.1
|
|
|
$
|
51,324.2
|
|
|
$
|
54,895.3
|
|
|
Three Months
|
|
Six Months
|
||||||||||||
Periods Ended June 30,
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
(millions — except per share amounts)
|
|
|
|
|
|
|
|
||||||||
Serial Preferred Shares, No Par Value
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
$
|
493.9
|
|
|
$
|
493.9
|
|
|
$
|
493.9
|
|
|
$
|
493.9
|
|
Balance, end of period
|
493.9
|
|
|
493.9
|
|
|
493.9
|
|
|
493.9
|
|
||||
Common Shares, $1.00 Par Value
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
585.3
|
|
|
584.0
|
|
|
584.6
|
|
|
583.2
|
|
||||
Treasury shares purchased
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(0.4
|
)
|
|
(0.5
|
)
|
||||
Net restricted equity awards issued/vested
|
0.2
|
|
|
0.2
|
|
|
1.2
|
|
|
1.4
|
|
||||
Balance, end of period
|
585.4
|
|
|
584.1
|
|
|
585.4
|
|
|
584.1
|
|
||||
Paid-In Capital
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
1,601.9
|
|
|
1,496.6
|
|
|
1,573.4
|
|
|
1,479.0
|
|
||||
Amortization of equity-based compensation
|
21.9
|
|
|
26.5
|
|
|
45.2
|
|
|
46.1
|
|
||||
Treasury shares purchased
|
0
|
|
|
0
|
|
|
(1.0
|
)
|
|
(1.1
|
)
|
||||
Net restricted equity awards issued/vested
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(1.2
|
)
|
|
(1.4
|
)
|
||||
Reinvested dividends on restricted stock units
|
0.4
|
|
|
0.6
|
|
|
0.7
|
|
|
0.9
|
|
||||
Adjustment to carrying amount of redeemable noncontrolling interest
|
(9.5
|
)
|
|
(0.2
|
)
|
|
(2.6
|
)
|
|
(0.2
|
)
|
||||
Balance, end of period
|
1,614.5
|
|
|
1,523.3
|
|
|
1,614.5
|
|
|
1,523.3
|
|
||||
Retained Earnings
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
11,266.2
|
|
|
9,358.1
|
|
|
10,679.6
|
|
|
8,386.6
|
|
||||
Net income attributable to Progressive
|
1,790.4
|
|
|
979.4
|
|
|
2,489.5
|
|
|
2,057.8
|
|
||||
Treasury shares purchased
|
(2.5
|
)
|
|
(2.2
|
)
|
|
(27.7
|
)
|
|
(26.8
|
)
|
||||
Cash dividends declared on common shares ($0.10, $0.10, $0.20, and $0.20 per share)
|
(58.4
|
)
|
|
(58.3
|
)
|
|
(116.8
|
)
|
|
(116.6
|
)
|
||||
Cash dividends declared on Serial Preferred Shares, Series B ($0, $0, $26.875, and $26.875 per share)
|
0
|
|
|
0
|
|
|
(13.4
|
)
|
|
(13.4
|
)
|
||||
Reinvested dividends on restricted stock units
|
(0.4
|
)
|
|
(0.6
|
)
|
|
(0.7
|
)
|
|
(0.9
|
)
|
||||
Other, net
|
6.5
|
|
|
0
|
|
|
(8.7
|
)
|
|
(10.3
|
)
|
||||
Balance, end of period
|
13,001.8
|
|
|
10,276.4
|
|
|
13,001.8
|
|
|
10,276.4
|
|
||||
Accumulated Other Comprehensive Income (Loss) Attributable to Progressive
|
|
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
404.2
|
|
|
178.1
|
|
|
341.7
|
|
|
(120.9
|
)
|
||||
Attributable to noncontrolling interest
|
3.2
|
|
|
(2.6
|
)
|
|
2.7
|
|
|
(4.9
|
)
|
||||
Other comprehensive income
|
567.6
|
|
|
277.6
|
|
|
630.6
|
|
|
578.9
|
|
||||
Balance, end of period
|
975.0
|
|
|
453.1
|
|
|
975.0
|
|
|
453.1
|
|
||||
Total shareholders’ equity
|
$
|
16,670.6
|
|
|
$
|
13,330.8
|
|
|
$
|
16,670.6
|
|
|
$
|
13,330.8
|
|
Six Months Ended June 30,
|
2020
|
|
|
2019
|
|
||
(millions)
|
|
|
|
||||
Cash Flows From Operating Activities
|
|
|
|
||||
Net income
|
$
|
2,489.5
|
|
|
$
|
2,061.8
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation
|
130.3
|
|
|
114.6
|
|
||
Amortization of intangible assets
|
28.6
|
|
|
35.9
|
|
||
Net amortization of fixed-income securities
|
42.5
|
|
|
1.9
|
|
||
Amortization of equity-based compensation
|
45.2
|
|
|
46.0
|
|
||
Net realized (gains) losses on securities
|
(337.2
|
)
|
|
(594.4
|
)
|
||
Net (gains) losses on disposition of property and equipment
|
1.8
|
|
|
(1.6
|
)
|
||
Changes in:
|
|
|
|
||||
Premiums receivable
|
(50.1
|
)
|
|
(670.0
|
)
|
||
Reinsurance recoverables
|
(275.4
|
)
|
|
(355.4
|
)
|
||
Prepaid reinsurance premiums
|
265.2
|
|
|
(28.3
|
)
|
||
Deferred acquisition costs
|
(98.3
|
)
|
|
(95.8
|
)
|
||
Income taxes
|
590.6
|
|
|
157.4
|
|
||
Unearned premiums
|
666.8
|
|
|
1,110.2
|
|
||
Loss and loss adjustment expense reserves
|
406.6
|
|
|
1,167.8
|
|
||
Accounts payable, accrued expenses, and other liabilities
|
(2.0
|
)
|
|
605.8
|
|
||
Other, net
|
(25.5
|
)
|
|
(181.2
|
)
|
||
Net cash provided by operating activities
|
3,878.6
|
|
|
3,374.7
|
|
||
Cash Flows From Investing Activities
|
|
|
|
||||
Purchases:
|
|
|
|
||||
Fixed maturities
|
(18,193.5
|
)
|
|
(13,008.4
|
)
|
||
Equity securities
|
(671.3
|
)
|
|
(230.7
|
)
|
||
Sales:
|
|
|
|
||||
Fixed maturities
|
13,749.2
|
|
|
8,162.1
|
|
||
Equity securities
|
382.1
|
|
|
131.6
|
|
||
Maturities, paydowns, calls, and other:
|
|
|
|
||||
Fixed maturities
|
4,106.4
|
|
|
2,589.0
|
|
||
Equity securities
|
79.0
|
|
|
0
|
|
||
Net (purchases) sales of short-term investments
|
(2,883.1
|
)
|
|
458.3
|
|
||
Net unsettled security transactions
|
266.0
|
|
|
297.6
|
|
||
Purchases of property and equipment
|
(110.7
|
)
|
|
(203.2
|
)
|
||
Sales of property and equipment
|
4.8
|
|
|
24.6
|
|
||
Net cash used in investing activities
|
(3,271.1
|
)
|
|
(1,779.1
|
)
|
||
Cash Flows From Financing Activities
|
|
|
|
||||
Dividends paid to common shareholders
|
(1,433.9
|
)
|
|
(1,526.3
|
)
|
||
Dividends paid to preferred shareholders
|
(13.4
|
)
|
|
(13.4
|
)
|
||
Acquisition of treasury shares for restricted stock tax liabilities
|
(29.1
|
)
|
|
(28.4
|
)
|
||
Acquisition of additional shares of ARX Holding Corp.
|
(243.0
|
)
|
|
(11.2
|
)
|
||
Net proceeds from debt issuances
|
986.3
|
|
|
0
|
|
||
Proceeds from exercise of equity options
|
7.3
|
|
|
1.6
|
|
||
Net cash used in financing activities
|
(725.8
|
)
|
|
(1,577.7
|
)
|
||
Increase (decrease) in cash, cash equivalents, and restricted cash
|
(118.3
|
)
|
|
17.9
|
|
||
Cash, cash equivalents, and restricted cash – January 1
|
227.4
|
|
|
75.0
|
|
||
Cash, cash equivalents, and restricted cash – June 30
|
$
|
109.1
|
|
|
$
|
92.9
|
|
($ in millions)
|
Cost
|
|
|
Gross
Unrealized Gains
|
|
|
Gross
Unrealized
Losses
|
|
|
Net
Holding Period Gains
(Losses)
|
|
|
Fair
Value
|
|
|
% of
Total Fair
Value
|
|
|||||
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S. government obligations
|
$
|
8,814.5
|
|
|
$
|
463.4
|
|
|
$
|
(0.1
|
)
|
|
$
|
0
|
|
|
$
|
9,277.8
|
|
|
21.2
|
%
|
State and local government obligations
|
3,426.0
|
|
|
148.9
|
|
|
(0.6
|
)
|
|
0
|
|
|
3,574.3
|
|
|
8.2
|
|
|||||
Corporate debt securities
|
10,493.2
|
|
|
571.4
|
|
|
(3.4
|
)
|
|
1.3
|
|
|
11,062.5
|
|
|
25.3
|
|
|||||
Residential mortgage-backed securities
|
541.0
|
|
|
5.4
|
|
|
(3.4
|
)
|
|
0
|
|
|
543.0
|
|
|
1.2
|
|
|||||
Commercial mortgage-backed securities
|
5,728.5
|
|
|
89.1
|
|
|
(55.8
|
)
|
|
0
|
|
|
5,761.8
|
|
|
13.2
|
|
|||||
Other asset-backed securities
|
4,313.3
|
|
|
45.3
|
|
|
(3.7
|
)
|
|
0
|
|
|
4,354.9
|
|
|
9.9
|
|
|||||
Redeemable preferred stocks
|
151.4
|
|
|
2.0
|
|
|
(1.4
|
)
|
|
0.1
|
|
|
152.1
|
|
|
0.3
|
|
|||||
Total fixed maturities
|
33,467.9
|
|
|
1,325.5
|
|
|
(68.4
|
)
|
|
1.4
|
|
|
34,726.4
|
|
|
79.3
|
|
|||||
Short-term investments
|
4,700.5
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
4,700.5
|
|
|
10.8
|
|
|||||
Total available-for-sale securities
|
38,168.4
|
|
|
1,325.5
|
|
|
(68.4
|
)
|
|
1.4
|
|
|
39,426.9
|
|
|
90.1
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Nonredeemable preferred stocks
|
1,205.4
|
|
|
0
|
|
|
0
|
|
|
(24.8
|
)
|
|
1,180.6
|
|
|
2.7
|
|
|||||
Common equities
|
1,128.8
|
|
|
0
|
|
|
0
|
|
|
2,041.6
|
|
|
3,170.4
|
|
|
7.2
|
|
|||||
Total equity securities
|
2,334.2
|
|
|
0
|
|
|
0
|
|
|
2,016.8
|
|
|
4,351.0
|
|
|
9.9
|
|
|||||
Total portfolio1,2
|
$
|
40,502.6
|
|
|
$
|
1,325.5
|
|
|
$
|
(68.4
|
)
|
|
$
|
2,018.2
|
|
|
$
|
43,777.9
|
|
|
100.0
|
%
|
($ 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
|
|
|||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S. government obligations
|
$
|
13,100.7
|
|
|
$
|
194.1
|
|
|
$
|
(43.7
|
)
|
|
$
|
0
|
|
|
$
|
13,251.1
|
|
|
33.7
|
%
|
State and local government obligations
|
1,686.0
|
|
|
30.0
|
|
|
(2.7
|
)
|
|
0
|
|
|
1,713.3
|
|
|
4.4
|
|
|||||
Corporate debt securities
|
6,860.3
|
|
|
206.6
|
|
|
(0.5
|
)
|
|
1.3
|
|
|
7,067.7
|
|
|
18.0
|
|
|||||
Residential mortgage-backed securities
|
625.0
|
|
|
4.5
|
|
|
(2.0
|
)
|
|
0
|
|
|
627.5
|
|
|
1.6
|
|
|||||
Commercial mortgage-backed securities
|
5,020.7
|
|
|
61.5
|
|
|
(6.0
|
)
|
|
0
|
|
|
5,076.2
|
|
|
12.9
|
|
|||||
Other asset-backed securities
|
5,164.7
|
|
|
16.2
|
|
|
(1.4
|
)
|
|
0
|
|
|
5,179.5
|
|
|
13.2
|
|
|||||
Redeemable preferred stocks
|
185.7
|
|
|
4.1
|
|
|
(1.3
|
)
|
|
6.5
|
|
|
195.0
|
|
|
0.5
|
|
|||||
Total fixed maturities
|
32,643.1
|
|
|
517.0
|
|
|
(57.6
|
)
|
|
7.8
|
|
|
33,110.3
|
|
|
84.3
|
|
|||||
Short-term investments
|
1,798.8
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
1,798.8
|
|
|
4.6
|
|
|||||
Total available-for-sale securities
|
34,441.9
|
|
|
517.0
|
|
|
(57.6
|
)
|
|
7.8
|
|
|
34,909.1
|
|
|
88.9
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Nonredeemable preferred stocks
|
971.3
|
|
|
0
|
|
|
0
|
|
|
67.6
|
|
|
1,038.9
|
|
|
2.7
|
|
|||||
Common equities
|
1,125.5
|
|
|
0
|
|
|
0
|
|
|
2,180.8
|
|
|
3,306.3
|
|
|
8.4
|
|
|||||
Total equity securities
|
2,096.8
|
|
|
0
|
|
|
0
|
|
|
2,248.4
|
|
|
4,345.2
|
|
|
11.1
|
|
|||||
Total portfolio1,2
|
$
|
36,538.7
|
|
|
$
|
517.0
|
|
|
$
|
(57.6
|
)
|
|
$
|
2,256.2
|
|
|
$
|
39,254.3
|
|
|
100.0
|
%
|
|
June 30,
|
|
|
||||||||
(millions)
|
2020
|
|
|
2019
|
|
|
December 31, 2019
|
|
|||
Fixed maturities:
|
|
|
|
|
|
||||||
State and local government obligations
|
$
|
3.4
|
|
|
$
|
3.5
|
|
|
$
|
3.5
|
|
Corporate debt securities
|
84.3
|
|
|
91.3
|
|
|
91.2
|
|
|||
Other asset-backed securities
|
2.2
|
|
|
3.5
|
|
|
2.6
|
|
|||
Redeemable preferred stocks
|
90.2
|
|
|
86.7
|
|
|
92.1
|
|
|||
Total hybrid securities
|
$
|
180.1
|
|
|
$
|
185.0
|
|
|
$
|
189.4
|
|
(millions)
|
Cost
|
|
|
Fair Value
|
|
||
Less than one year
|
$
|
5,936.5
|
|
|
$
|
5,962.1
|
|
One to five years
|
18,030.7
|
|
|
18,599.1
|
|
||
Five to ten years
|
8,958.7
|
|
|
9,588.6
|
|
||
Ten years or greater
|
542.0
|
|
|
576.6
|
|
||
Total
|
$
|
33,467.9
|
|
|
$
|
34,726.4
|
|
|
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, 2020
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. government obligations
|
4
|
|
$
|
120.6
|
|
$
|
(0.1
|
)
|
4
|
|
$
|
120.6
|
|
$
|
(0.1
|
)
|
|
0
|
|
$
|
0
|
|
$
|
0
|
|
State and local government obligations
|
17
|
|
135.0
|
|
(0.6
|
)
|
16
|
|
131.2
|
|
(0.6
|
)
|
|
1
|
|
3.8
|
|
0
|
|
||||||
Corporate debt securities
|
21
|
|
292.8
|
|
(3.4
|
)
|
21
|
|
292.8
|
|
(3.4
|
)
|
|
0
|
|
0
|
|
0
|
|
||||||
Residential mortgage-backed securities
|
40
|
|
188.2
|
|
(3.4
|
)
|
21
|
|
93.7
|
|
(1.7
|
)
|
|
19
|
|
94.5
|
|
(1.7
|
)
|
||||||
Commercial mortgage-backed securities
|
113
|
|
2,536.6
|
|
(55.8
|
)
|
91
|
|
2,106.6
|
|
(48.3
|
)
|
|
22
|
|
430.0
|
|
(7.5
|
)
|
||||||
Other asset-backed securities
|
29
|
|
331.7
|
|
(3.7
|
)
|
21
|
|
299.0
|
|
(3.4
|
)
|
|
8
|
|
32.7
|
|
(0.3
|
)
|
||||||
Redeemable preferred stocks
|
1
|
|
11.0
|
|
(1.4
|
)
|
0
|
|
0
|
|
0
|
|
|
1
|
|
11.0
|
|
(1.4
|
)
|
||||||
Total fixed maturities
|
225
|
|
$
|
3,615.9
|
|
$
|
(68.4
|
)
|
174
|
|
$
|
3,043.9
|
|
$
|
(57.5
|
)
|
|
51
|
|
$
|
572.0
|
|
$
|
(10.9
|
)
|
|
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, 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
|
|
||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. government obligations
|
23
|
|
$
|
5,152.4
|
|
$
|
(43.7
|
)
|
19
|
|
$
|
5,057.2
|
|
$
|
(43.6
|
)
|
|
4
|
|
$
|
95.2
|
|
$
|
(0.1
|
)
|
State and local government obligations
|
67
|
|
314.3
|
|
(2.7
|
)
|
52
|
|
287.5
|
|
(2.6
|
)
|
|
15
|
|
26.8
|
|
(0.1
|
)
|
||||||
Corporate debt securities
|
16
|
|
247.6
|
|
(0.5
|
)
|
12
|
|
191.4
|
|
(0.5
|
)
|
|
4
|
|
56.2
|
|
0
|
|
||||||
Residential mortgage-backed securities
|
41
|
|
292.8
|
|
(2.0
|
)
|
12
|
|
163.7
|
|
(0.9
|
)
|
|
29
|
|
129.1
|
|
(1.1
|
)
|
||||||
Commercial mortgage-backed securities
|
98
|
|
1,742.4
|
|
(6.0
|
)
|
79
|
|
1,400.0
|
|
(5.3
|
)
|
|
19
|
|
342.4
|
|
(0.7
|
)
|
||||||
Other asset-backed securities
|
61
|
|
1,000.6
|
|
(1.4
|
)
|
43
|
|
938.5
|
|
(0.9
|
)
|
|
18
|
|
62.1
|
|
(0.5
|
)
|
||||||
Redeemable preferred stocks
|
1
|
|
11.2
|
|
(1.3
|
)
|
0
|
|
0
|
|
0
|
|
|
1
|
|
11.2
|
|
(1.3
|
)
|
||||||
Total fixed maturities
|
307
|
|
$
|
8,761.3
|
|
$
|
(57.6
|
)
|
217
|
|
$
|
8,038.3
|
|
$
|
(53.8
|
)
|
|
90
|
|
$
|
723.0
|
|
$
|
(3.8
|
)
|
|
Three Months
|
|
Six Months
|
||||||||||||
(millions)
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Gross realized gains on security sales
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. government obligations
|
$
|
224.5
|
|
|
$
|
34.9
|
|
|
$
|
475.6
|
|
|
$
|
71.5
|
|
State and local government obligations
|
13.0
|
|
|
0.6
|
|
|
15.0
|
|
|
2.2
|
|
||||
Corporate and other debt securities
|
34.3
|
|
|
31.1
|
|
|
66.7
|
|
|
47.2
|
|
||||
Residential mortgage-backed securities
|
0
|
|
|
0.2
|
|
|
0
|
|
|
0.2
|
|
||||
Commercial mortgage-backed securities
|
4.3
|
|
|
2.9
|
|
|
10.4
|
|
|
3.6
|
|
||||
Other asset-backed securities
|
0
|
|
|
0.7
|
|
|
0
|
|
|
0.7
|
|
||||
Total available-for-sale securities
|
276.1
|
|
|
70.4
|
|
|
567.7
|
|
|
125.4
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Nonredeemable preferred stocks
|
0.1
|
|
|
11.7
|
|
|
19.7
|
|
|
16.6
|
|
||||
Common equities
|
9.1
|
|
|
0.2
|
|
|
75.1
|
|
|
4.7
|
|
||||
Total equity securities
|
9.2
|
|
|
11.9
|
|
|
94.8
|
|
|
21.3
|
|
||||
Subtotal gross realized gains on security sales
|
285.3
|
|
|
82.3
|
|
|
662.5
|
|
|
146.7
|
|
||||
Gross realized losses on security sales
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. government obligations
|
(0.6
|
)
|
|
(5.3
|
)
|
|
(3.3
|
)
|
|
(12.4
|
)
|
||||
State and local government obligations
|
0
|
|
|
(0.1
|
)
|
|
0
|
|
|
(0.7
|
)
|
||||
Corporate and other debt securities
|
(5.5
|
)
|
|
(1.4
|
)
|
|
(6.5
|
)
|
|
(7.5
|
)
|
||||
Residential mortgage-backed securities
|
0
|
|
|
0
|
|
|
0
|
|
|
(2.3
|
)
|
||||
Commercial mortgage-backed securities
|
(9.8
|
)
|
|
0
|
|
|
(9.8
|
)
|
|
(2.1
|
)
|
||||
Other asset-backed securities
|
0
|
|
|
0
|
|
|
0
|
|
|
(0.1
|
)
|
||||
Redeemable preferred stocks
|
0
|
|
|
(0.1
|
)
|
|
0
|
|
|
(0.1
|
)
|
||||
Total available-for-sale securities
|
(15.9
|
)
|
|
(6.9
|
)
|
|
(19.6
|
)
|
|
(25.2
|
)
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Nonredeemable preferred stocks
|
(3.0
|
)
|
|
0
|
|
|
(7.4
|
)
|
|
0
|
|
||||
Common equities
|
(6.4
|
)
|
|
(7.9
|
)
|
|
(60.3
|
)
|
|
(7.9
|
)
|
||||
Total equity securities
|
(9.4
|
)
|
|
(7.9
|
)
|
|
(67.7
|
)
|
|
(7.9
|
)
|
||||
Subtotal gross realized losses on security sales
|
(25.3
|
)
|
|
(14.8
|
)
|
|
(87.3
|
)
|
|
(33.1
|
)
|
||||
Net realized gains (losses) on security sales
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. government obligations
|
223.9
|
|
|
29.6
|
|
|
472.3
|
|
|
59.1
|
|
||||
State and local government obligations
|
13.0
|
|
|
0.5
|
|
|
15.0
|
|
|
1.5
|
|
||||
Corporate and other debt securities
|
28.8
|
|
|
29.7
|
|
|
60.2
|
|
|
39.7
|
|
||||
Residential mortgage-backed securities
|
0
|
|
|
0.2
|
|
|
0
|
|
|
(2.1
|
)
|
||||
Commercial mortgage-backed securities
|
(5.5
|
)
|
|
2.9
|
|
|
0.6
|
|
|
1.5
|
|
||||
Other asset-backed securities
|
0
|
|
|
0.7
|
|
|
0
|
|
|
0.6
|
|
||||
Redeemable preferred stocks
|
0
|
|
|
(0.1
|
)
|
|
0
|
|
|
(0.1
|
)
|
||||
Total available-for-sale securities
|
260.2
|
|
|
63.5
|
|
|
548.1
|
|
|
100.2
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Nonredeemable preferred stocks
|
(2.9
|
)
|
|
11.7
|
|
|
12.3
|
|
|
16.6
|
|
||||
Common equities
|
2.7
|
|
|
(7.7
|
)
|
|
14.8
|
|
|
(3.2
|
)
|
||||
Total equity securities
|
(0.2
|
)
|
|
4.0
|
|
|
27.1
|
|
|
13.4
|
|
||||
Subtotal net realized gains (losses) on security sales
|
260.0
|
|
|
67.5
|
|
|
575.2
|
|
|
113.6
|
|
||||
Net holding period gains (losses)
|
|
|
|
|
|
|
|
||||||||
Hybrid securities
|
24.8
|
|
|
1.4
|
|
|
(6.4
|
)
|
|
12.1
|
|
||||
Equity securities
|
606.0
|
|
|
111.0
|
|
|
(231.6
|
)
|
|
493.0
|
|
||||
Subtotal net holding period gains (losses)
|
630.8
|
|
|
112.4
|
|
|
(238.0
|
)
|
|
505.1
|
|
||||
Impairment losses
|
|
|
|
|
|
|
|
||||||||
Other asset impairment
|
0
|
|
|
0
|
|
|
0
|
|
|
(24.3
|
)
|
||||
Subtotal impairment losses
|
0
|
|
|
0
|
|
|
0
|
|
|
(24.3
|
)
|
||||
Total net realized gains (losses) on securities
|
$
|
890.8
|
|
|
$
|
179.9
|
|
|
$
|
337.2
|
|
|
$
|
594.4
|
|
|
Three Months
|
|
Six Months
|
||||||||||
(millions)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||
Total net gains (losses) recognized during the period on equity securities
|
$
|
605.8
|
|
$
|
115.0
|
|
|
$
|
(204.5
|
)
|
$
|
506.4
|
|
Less: Net gains (losses) recognized on equity securities sold during the period
|
(0.2
|
)
|
4.0
|
|
|
27.1
|
|
13.4
|
|
||||
Net holding period gains (losses) recognized during the period on equity securities held at period end
|
$
|
606.0
|
|
$
|
111.0
|
|
|
$
|
(231.6
|
)
|
$
|
493.0
|
|
|
Three Months
|
|
Six Months
|
||||||||||
(millions)
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
||||
Available-for-sale securities:
|
|
|
|
|
|
||||||||
Fixed maturities:
|
|
|
|
|
|
||||||||
U.S. government obligations
|
$
|
35.7
|
|
$
|
69.2
|
|
|
$
|
98.3
|
|
$
|
122.9
|
|
State and local government obligations
|
16.1
|
|
8.9
|
|
|
25.7
|
|
18.2
|
|
||||
Corporate debt securities
|
76.6
|
|
67.5
|
|
|
134.6
|
|
144.7
|
|
||||
Residential mortgage-backed securities
|
3.8
|
|
4.6
|
|
|
8.0
|
|
11.2
|
|
||||
Commercial mortgage-backed securities
|
42.6
|
|
33.4
|
|
|
76.9
|
|
65.1
|
|
||||
Other asset-backed securities
|
24.8
|
|
28.1
|
|
|
54.0
|
|
54.1
|
|
||||
Redeemable preferred stocks
|
2.1
|
|
8.5
|
|
|
10.0
|
|
12.2
|
|
||||
Total fixed maturities
|
201.7
|
|
220.2
|
|
|
407.5
|
|
428.4
|
|
||||
Short-term investments
|
13.7
|
|
11.2
|
|
|
20.7
|
|
27.2
|
|
||||
Total available-for-sale securities
|
215.4
|
|
231.4
|
|
|
428.2
|
|
455.6
|
|
||||
Equity securities:
|
|
|
|
|
|
||||||||
Nonredeemable preferred stocks
|
14.7
|
|
15.9
|
|
|
28.5
|
|
31.4
|
|
||||
Common equities
|
13.7
|
|
14.0
|
|
|
28.3
|
|
27.2
|
|
||||
Total equity securities
|
28.4
|
|
29.9
|
|
|
56.8
|
|
58.6
|
|
||||
Investment income
|
243.8
|
|
261.3
|
|
|
485.0
|
|
514.2
|
|
||||
Investment expenses
|
(4.5
|
)
|
(6.2
|
)
|
|
(9.8
|
)
|
(12.4
|
)
|
||||
Net investment income
|
$
|
239.3
|
|
$
|
255.1
|
|
|
$
|
475.2
|
|
$
|
501.8
|
|
•
|
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 daily, 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, 2020
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government obligations
|
$
|
9,277.8
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
9,277.8
|
|
|
$
|
8,814.5
|
|
State and local government obligations
|
0
|
|
|
3,574.3
|
|
|
0
|
|
|
3,574.3
|
|
|
3,426.0
|
|
|||||
Corporate debt securities
|
0
|
|
|
11,062.5
|
|
|
0
|
|
|
11,062.5
|
|
|
10,493.2
|
|
|||||
Subtotal
|
9,277.8
|
|
|
14,636.8
|
|
|
0
|
|
|
23,914.6
|
|
|
22,733.7
|
|
|||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage-backed
|
0
|
|
|
543.0
|
|
|
0
|
|
|
543.0
|
|
|
541.0
|
|
|||||
Commercial mortgage-backed
|
0
|
|
|
5,761.8
|
|
|
0
|
|
|
5,761.8
|
|
|
5,728.5
|
|
|||||
Other asset-backed
|
0
|
|
|
4,354.9
|
|
|
0
|
|
|
4,354.9
|
|
|
4,313.3
|
|
|||||
Subtotal asset-backed securities
|
0
|
|
|
10,659.7
|
|
|
0
|
|
|
10,659.7
|
|
|
10,582.8
|
|
|||||
Redeemable preferred stocks:
|
|
|
|
|
|
|
|
|
|
||||||||||
Financials
|
0
|
|
|
51.1
|
|
|
0
|
|
|
51.1
|
|
|
51.3
|
|
|||||
Utilities
|
0
|
|
|
10.8
|
|
|
0
|
|
|
10.8
|
|
|
10.0
|
|
|||||
Industrials
|
9.7
|
|
|
80.5
|
|
|
0
|
|
|
90.2
|
|
|
90.1
|
|
|||||
Subtotal redeemable preferred stocks
|
9.7
|
|
|
142.4
|
|
|
0
|
|
|
152.1
|
|
|
151.4
|
|
|||||
Total fixed maturities
|
9,287.5
|
|
|
25,438.9
|
|
|
0
|
|
|
34,726.4
|
|
|
33,467.9
|
|
|||||
Short-term investments
|
4,428.0
|
|
|
272.5
|
|
|
0
|
|
|
4,700.5
|
|
|
4,700.5
|
|
|||||
Total available-for-sale securities
|
13,715.5
|
|
|
25,711.4
|
|
|
0
|
|
|
39,426.9
|
|
|
38,168.4
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonredeemable preferred stocks:
|
|
|
|
|
|
|
|
|
|
||||||||||
Financials
|
108.2
|
|
|
958.3
|
|
|
38.1
|
|
|
1,104.6
|
|
|
1,125.3
|
|
|||||
Utilities
|
0
|
|
|
38.7
|
|
|
0
|
|
|
38.7
|
|
|
40.0
|
|
|||||
Industrials
|
0
|
|
|
22.1
|
|
|
15.2
|
|
|
37.3
|
|
|
40.1
|
|
|||||
Subtotal nonredeemable preferred stocks
|
108.2
|
|
|
1,019.1
|
|
|
53.3
|
|
|
1,180.6
|
|
|
1,205.4
|
|
|||||
Common equities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stocks
|
3,170.1
|
|
|
0
|
|
|
0
|
|
|
3,170.1
|
|
|
1,128.5
|
|
|||||
Other risk investments
|
0
|
|
|
0
|
|
|
0.3
|
|
|
0.3
|
|
|
0.3
|
|
|||||
Subtotal common equities
|
3,170.1
|
|
|
0
|
|
|
0.3
|
|
|
3,170.4
|
|
|
1,128.8
|
|
|||||
Total equity securities
|
3,278.3
|
|
|
1,019.1
|
|
|
53.6
|
|
|
4,351.0
|
|
|
2,334.2
|
|
|||||
Total portfolio
|
$
|
16,993.8
|
|
|
$
|
26,730.5
|
|
|
$
|
53.6
|
|
|
$
|
43,777.9
|
|
|
$
|
40,502.6
|
|
Debt
|
$
|
0
|
|
|
$
|
6,664.3
|
|
|
$
|
0
|
|
|
$
|
6,664.3
|
|
|
$
|
5,394.7
|
|
|
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
|
|
|||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government obligations
|
$
|
13,251.1
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
13,251.1
|
|
|
$
|
13,100.7
|
|
State and local government obligations
|
0
|
|
|
1,713.3
|
|
|
0
|
|
|
1,713.3
|
|
|
1,686.0
|
|
|||||
Corporate debt securities
|
0
|
|
|
7,067.7
|
|
|
0
|
|
|
7,067.7
|
|
|
6,860.3
|
|
|||||
Subtotal
|
13,251.1
|
|
|
8,781.0
|
|
|
0
|
|
|
22,032.1
|
|
|
21,647.0
|
|
|||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage-backed
|
0
|
|
|
627.5
|
|
|
0
|
|
|
627.5
|
|
|
625.0
|
|
|||||
Commercial mortgage-backed
|
0
|
|
|
5,076.2
|
|
|
0
|
|
|
5,076.2
|
|
|
5,020.7
|
|
|||||
Other asset-backed
|
0
|
|
|
5,179.5
|
|
|
0
|
|
|
5,179.5
|
|
|
5,164.7
|
|
|||||
Subtotal asset-backed securities
|
0
|
|
|
10,883.2
|
|
|
0
|
|
|
10,883.2
|
|
|
10,810.4
|
|
|||||
Redeemable preferred stocks:
|
|
|
|
|
|
|
|
|
|
||||||||||
Financials
|
0
|
|
|
51.7
|
|
|
0
|
|
|
51.7
|
|
|
51.5
|
|
|||||
Utilities
|
0
|
|
|
11.1
|
|
|
0
|
|
|
11.1
|
|
|
10.0
|
|
|||||
Industrials
|
11.1
|
|
|
121.1
|
|
|
0
|
|
|
132.2
|
|
|
124.2
|
|
|||||
Subtotal redeemable preferred stocks
|
11.1
|
|
|
183.9
|
|
|
0
|
|
|
195.0
|
|
|
185.7
|
|
|||||
Total fixed maturities
|
13,262.2
|
|
|
19,848.1
|
|
|
0
|
|
|
33,110.3
|
|
|
32,643.1
|
|
|||||
Short-term investments
|
1,797.4
|
|
|
1.4
|
|
|
0
|
|
|
1,798.8
|
|
|
1,798.8
|
|
|||||
Total available-for-sale securities
|
15,059.6
|
|
|
19,849.5
|
|
|
0
|
|
|
34,909.1
|
|
|
34,441.9
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonredeemable preferred stocks:
|
|
|
|
|
|
|
|
|
|
||||||||||
Financials
|
77.4
|
|
|
850.7
|
|
|
27.1
|
|
|
955.2
|
|
|
891.3
|
|
|||||
Utilities
|
0
|
|
|
42.3
|
|
|
0
|
|
|
42.3
|
|
|
39.9
|
|
|||||
Industrials
|
0
|
|
|
25.4
|
|
|
16.0
|
|
|
41.4
|
|
|
40.1
|
|
|||||
Subtotal nonredeemable preferred stocks
|
77.4
|
|
|
918.4
|
|
|
43.1
|
|
|
1,038.9
|
|
|
971.3
|
|
|||||
Common equities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stocks
|
3,306.0
|
|
|
0
|
|
|
0
|
|
|
3,306.0
|
|
|
1,125.2
|
|
|||||
Other risk investments
|
0
|
|
|
0
|
|
|
0.3
|
|
|
0.3
|
|
|
0.3
|
|
|||||
Subtotal common equities
|
3,306.0
|
|
|
0
|
|
|
0.3
|
|
|
3,306.3
|
|
|
1,125.5
|
|
|||||
Total equity securities
|
3,383.4
|
|
|
918.4
|
|
|
43.4
|
|
|
4,345.2
|
|
|
2,096.8
|
|
|||||
Total portfolio
|
$
|
18,443.0
|
|
|
$
|
20,767.9
|
|
|
$
|
43.4
|
|
|
$
|
39,254.3
|
|
|
$
|
36,538.7
|
|
Debt
|
$
|
0
|
|
|
$
|
5,119.6
|
|
|
$
|
0
|
|
|
$
|
5,119.6
|
|
|
$
|
4,407.1
|
|
|
Level 3 Fair Value
|
|||||||||||||||||||||||
(millions)
|
Fair Value at March 31, 2020
|
|
Calls/
Maturities/
Paydowns
|
|
Purchases
|
|
Sales
|
|
Net Realized
(Gain)/Loss
on Sales
|
|
Change in
Valuation
|
|
Net
Transfers
In (Out)
|
|
Fair Value at June 30, 2020
|
|
||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Nonredeemable preferred stocks:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Financials
|
$
|
13.1
|
|
$
|
0
|
|
$
|
25.0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
38.1
|
|
Industrials
|
15.2
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
15.2
|
|
||||||||
Common equities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other risk investments
|
0.3
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0.3
|
|
||||||||
Total Level 3 securities
|
$
|
28.6
|
|
$
|
0
|
|
$
|
25.0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
53.6
|
|
|
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 December 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, 2020
|
|
||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Nonredeemable preferred stocks:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Financials
|
$
|
27.1
|
|
$
|
0
|
|
$
|
25.0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
(14.0
|
)
|
$
|
0
|
|
$
|
38.1
|
|
Industrials
|
16.0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
(0.8
|
)
|
0
|
|
15.2
|
|
||||||||
Common equities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other risk investments
|
0.3
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0.3
|
|
||||||||
Total Level 3 securities
|
$
|
43.4
|
|
$
|
0
|
|
$
|
25.0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
(14.8
|
)
|
$
|
0
|
|
$
|
53.6
|
|
|
Level 3 Fair Value
|
|||||||||||||||||||||||
(millions)
|
Fair Value at December 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
|
|
|
Quantitative Information about Level 3 Fair Value Measurements
|
||||||
($ in millions)
|
Fair Value at June 30, 2020
|
|
Valuation Technique
|
Unobservable Input
|
Unobservable Input Assumption
|
|
|
Equity securities:
|
|
|
|
|
|||
Nonredeemable preferred stocks:
|
|
|
|
|
|||
Financials
|
$
|
13.1
|
|
Guideline public company method
|
Weighted average capitalization %
|
(51.5
|
)
|
Financials1
|
25.0
|
|
Internal price
|
Unadjusted purchase price per share
|
3.7
|
|
|
Industrials
|
15.2
|
|
Guideline public company method
|
Weighted average capitalization %
|
(19.2
|
)
|
|
Subtotal Level 3 securities
|
53.3
|
|
|
|
|
||
Pricing exemption securities
|
0.3
|
|
|
|
|
||
Total Level 3 securities
|
$
|
53.6
|
|
|
|
|
|
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
|
|
Industrials
|
5.0
|
|
Internal price
|
Price-to-sales ratio
|
5.5
|
|
|
Subtotal Level 3 securities
|
32.1
|
|
|
|
|
||
Pricing exemption securities
|
0.3
|
|
|
|
|
||
Total Level 3 securities
|
$
|
32.4
|
|
|
|
|
|
Quantitative Information about Level 3 Fair Value Measurements
|
||||||
($ in millions)
|
Fair Value at December 31, 2019
|
|
Valuation Technique
|
Unobservable Input
|
Unobservable Input Assumption
|
|
|
Equity securities:
|
|
|
|
|
|||
Nonredeemable preferred stocks:
|
|
|
|
|
|||
Financials
|
$
|
27.1
|
|
Pricing firm
|
Recent transaction price per share
|
9.0
|
|
Industrials
|
6.0
|
|
Pricing firm
|
Performance-based transaction price adjustment per share
|
4.8
|
|
|
Industrials1
|
10.0
|
|
Internal price
|
Unadjusted purchase price per share
|
4.9
|
|
|
Subtotal Level 3 securities
|
43.1
|
|
|
|
|
||
Pricing exemption securities
|
0.3
|
|
|
|
|
||
Total Level 3 securities
|
$
|
43.4
|
|
|
|
|
|
June 30, 2020
|
|
June 30, 2019
|
|
December 31, 2019
|
||||||||||||||||||
(millions)
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
||||||||||||
3.75% Senior Notes due 2021
|
$
|
499.6
|
|
|
$
|
519.0
|
|
|
$
|
499.2
|
|
|
$
|
516.5
|
|
|
$
|
499.4
|
|
|
$
|
515.6
|
|
2.45% Senior Notes due 2027
|
497.1
|
|
|
533.7
|
|
|
496.7
|
|
|
494.7
|
|
|
496.9
|
|
|
501.5
|
|
||||||
6 5/8% Senior Notes due 2029
|
296.8
|
|
|
420.7
|
|
|
296.5
|
|
|
385.7
|
|
|
296.6
|
|
|
392.5
|
|
||||||
4.00% Senior Notes due 2029
|
545.2
|
|
|
654.2
|
|
|
544.8
|
|
|
608.9
|
|
|
545.0
|
|
|
614.3
|
|
||||||
3.20% Senior Notes due 2030
|
496.0
|
|
|
567.6
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
6.25% Senior Notes due 2032
|
395.8
|
|
|
569.6
|
|
|
395.6
|
|
|
531.3
|
|
|
395.7
|
|
|
552.6
|
|
||||||
4.35% Senior Notes due 2044
|
346.7
|
|
|
444.9
|
|
|
346.6
|
|
|
392.5
|
|
|
346.7
|
|
|
417.0
|
|
||||||
3.70% Senior Notes due 2045
|
395.5
|
|
|
471.4
|
|
|
395.4
|
|
|
411.1
|
|
|
395.4
|
|
|
434.2
|
|
||||||
4.125% Senior Notes due 2047
|
841.6
|
|
|
1,080.8
|
|
|
841.5
|
|
|
943.0
|
|
|
841.6
|
|
|
986.1
|
|
||||||
4.20% Senior Notes due 2048
|
589.9
|
|
|
773.8
|
|
|
589.7
|
|
|
671.5
|
|
|
589.8
|
|
|
705.8
|
|
||||||
3.95% Senior Notes due 2050
|
490.5
|
|
|
628.6
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
Total
|
$
|
5,394.7
|
|
|
$
|
6,664.3
|
|
|
$
|
4,406.0
|
|
|
$
|
4,955.2
|
|
|
$
|
4,407.1
|
|
|
$
|
5,119.6
|
|
|
June 30,
|
||||||
(millions)
|
2020
|
|
2019
|
||||
Balance at January 1
|
$
|
18,105.4
|
|
|
$
|
15,400.8
|
|
Less reinsurance recoverables on unpaid losses
|
3,212.2
|
|
|
2,572.7
|
|
||
Net balance at January 1
|
14,893.2
|
|
|
12,828.1
|
|
||
Incurred related to:
|
|
|
|
||||
Current year
|
11,360.5
|
|
|
11,687.1
|
|
||
Prior years
|
116.1
|
|
|
210.0
|
|
||
Total incurred
|
11,476.6
|
|
|
11,897.1
|
|
||
Paid related to:
|
|
|
|
||||
Current year
|
6,180.4
|
|
|
6,407.5
|
|
||
Prior years
|
5,180.1
|
|
|
4,664.1
|
|
||
Total paid
|
11,360.5
|
|
|
11,071.6
|
|
||
Net balance at June 30
|
15,009.3
|
|
|
13,653.6
|
|
||
Plus reinsurance recoverables on unpaid losses
|
3,502.7
|
|
|
2,915.0
|
|
||
Balance at June 30
|
$
|
18,512.0
|
|
|
$
|
16,568.6
|
|
•
|
Approximately 68% of the unfavorable prior year reserve development was attributable to accident year 2018, while only 1% was attributable to accident year 2019, with the remainder related to 2017 and prior accident years. During the second quarter 2020, we experienced favorable development on accident year 2019, primarily due to higher than anticipated salvage and subrogation recoveries, which almost fully offset the unfavorable development from accident year 2019 we experienced during the first quarter 2020.
|
•
|
Our personal auto products incurred about $37 million of unfavorable loss and loss adjustment expense (LAE) reserve development, with about two thirds attributable to the Agency business. The unfavorable LAE development was primarily attributable to revised estimates of our per claim settlement costs taken during the first quarter. We also experienced higher than anticipated frequency of reopened personal injury protection (PIP) claims, primarily in Florida, and late reported losses occurring toward the end 2019 but not reported until 2020, which was significantly offset by higher than anticipated salvage and subrogation recoveries.
|
•
|
Our Commercial Lines business experienced about $98 million of unfavorable development, primarily due to increased injury severity and the emergence of large injury claims at rates higher than originally anticipated.
|
•
|
Our special lines and Property businesses experienced about $15 million and $4 million, respectively, of favorable development.
|
•
|
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 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 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.
|
|
Six Months Ended June 30,
|
||||||
(millions)
|
2020
|
|
|
2019
|
|
||
Income taxes
|
$
|
18.0
|
|
|
$
|
592.8
|
|
Interest
|
94.1
|
|
|
90.9
|
|
||
Operating lease liabilities
|
44.7
|
|
|
37.4
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||||||||||||||||||
(millions)
|
Revenues
|
|
Pretax
Profit (Loss)
|
|
Revenues
|
|
Pretax
Profit (Loss)
|
|
Revenues
|
|
Pretax Profit (Loss)
|
|
Revenues
|
|
Pretax Profit (Loss)
|
||||||||||||||||
Personal Lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency
|
$
|
3,919.0
|
|
|
$
|
550.6
|
|
|
$
|
3,639.6
|
|
|
$
|
434.7
|
|
|
$
|
7,747.7
|
|
|
$
|
1,152.2
|
|
|
$
|
7,148.1
|
|
|
$
|
887.7
|
|
Direct
|
4,167.9
|
|
|
647.2
|
|
|
3,733.4
|
|
|
326.6
|
|
|
8,160.3
|
|
|
1,120.2
|
|
|
7,309.7
|
|
|
648.5
|
|
||||||||
Total Personal Lines1
|
8,086.9
|
|
|
1,197.8
|
|
|
7,373.0
|
|
|
761.3
|
|
|
15,908.0
|
|
|
2,272.4
|
|
|
14,457.8
|
|
|
1,536.2
|
|
||||||||
Commercial Lines
|
1,129.0
|
|
|
179.8
|
|
|
1,070.5
|
|
|
124.4
|
|
|
2,318.0
|
|
|
292.3
|
|
|
2,083.5
|
|
|
291.0
|
|
||||||||
Property2
|
432.7
|
|
|
(188.7
|
)
|
|
381.2
|
|
|
(34.4
|
)
|
|
853.3
|
|
|
(139.5
|
)
|
|
743.2
|
|
|
(26.7
|
)
|
||||||||
Total underwriting operations
|
9,648.6
|
|
|
1,188.9
|
|
|
8,824.7
|
|
|
851.3
|
|
|
19,079.3
|
|
|
2,425.2
|
|
|
17,284.5
|
|
|
1,800.5
|
|
||||||||
Fees and other revenues3
|
129.5
|
|
|
NA
|
|
|
134.8
|
|
|
NA
|
|
|
283.0
|
|
|
NA
|
|
|
265.0
|
|
|
NA
|
|
||||||||
Service businesses
|
59.0
|
|
|
6.2
|
|
|
50.0
|
|
|
4.7
|
|
|
110.6
|
|
|
10.3
|
|
|
92.6
|
|
|
9.2
|
|
||||||||
Investments4
|
1,134.6
|
|
|
1,130.1
|
|
|
441.2
|
|
|
435.0
|
|
|
822.2
|
|
|
812.4
|
|
|
1,108.6
|
|
|
1,096.2
|
|
||||||||
Interest expense
|
NA
|
|
|
(56.4
|
)
|
|
NA
|
|
|
(47.4
|
)
|
|
NA
|
|
|
(104.4
|
)
|
|
NA
|
|
|
(94.8
|
)
|
||||||||
Consolidated total
|
$
|
10,971.7
|
|
|
$
|
2,268.8
|
|
|
$
|
9,450.7
|
|
|
$
|
1,243.6
|
|
|
$
|
20,295.1
|
|
|
$
|
3,143.5
|
|
|
$
|
18,750.7
|
|
|
$
|
2,811.1
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|||||||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|||||||||||||
|
Under-writing
Margin |
|
Combined
Ratio
|
|
Under-writing
Margin |
|
Combined
Ratio
|
|
Under-writing
Margin |
|
Combined
Ratio
|
|
Under-writing
Margin |
|
Combined
Ratio
|
|||||
Personal Lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Agency
|
14.0
|
%
|
|
86.0
|
|
11.9
|
%
|
|
88.1
|
|
|
14.9
|
%
|
|
85.1
|
|
12.4
|
%
|
|
87.6
|
Direct
|
15.5
|
|
|
84.5
|
|
8.7
|
|
|
91.3
|
|
|
13.7
|
|
|
86.3
|
|
8.9
|
|
|
91.1
|
Total Personal Lines
|
14.8
|
|
|
85.2
|
|
10.3
|
|
|
89.7
|
|
|
14.3
|
|
|
85.7
|
|
10.6
|
|
|
89.4
|
Commercial Lines
|
15.9
|
|
|
84.1
|
|
11.6
|
|
|
88.4
|
|
|
12.6
|
|
|
87.4
|
|
14.0
|
|
|
86.0
|
Property1
|
(43.6
|
)
|
|
143.6
|
|
(9.0
|
)
|
|
109.0
|
|
|
(16.3
|
)
|
|
116.3
|
|
(3.6
|
)
|
|
103.6
|
Total underwriting operations
|
12.3
|
|
|
87.7
|
|
9.6
|
|
|
90.4
|
|
|
12.7
|
|
|
87.3
|
|
10.4
|
|
|
89.6
|
(millions, except per share amounts)
|
Amount
|
||||||
Declared
|
Payable
|
Per Share
|
|
Accrued1
|
|
||
Common - Quarterly Dividends:
|
|
|
|
||||
May 2020
|
July 2020
|
$
|
0.10
|
|
$
|
58.5
|
|
February 2020
|
April 2020
|
0.10
|
|
58.5
|
|
||
December 2019
|
January 2020
|
0.10
|
|
58.5
|
|
||
May 2019
|
July 2019
|
0.10
|
|
58.4
|
|
||
February 2019
|
April 2019
|
0.10
|
|
58.4
|
|
||
Common - Annual Variable Dividends:
|
|
|
|
||||
December 2019
|
January 2020
|
2.25
|
|
1,316.9
|
|
||
December 2018
|
February 2019
|
2.5140
|
|
1,467.9
|
|
||
Preferred Dividends:
|
|
|
|
||||
February 2020
|
March 2020
|
26.875
|
|
13.4
|
|
||
February 2019
|
March 2019
|
26.875
|
|
13.4
|
|
|
|
|
|
|
|
|
Components of Changes in
Accumulated Other
Comprehensive Income (after tax)
|
||||||||||||||||
(millions)
|
Pretax total
accumulated
other
comprehensive
income (loss)
|
|
|
Total tax
(provision)
benefit
|
|
|
After tax total
accumulated
other
comprehensive
income (loss)
|
|
|
Total net
unrealized
gains
(losses)
on securities
|
|
|
Net
unrealized
gains
(losses) on
forecasted
transactions
|
|
|
(Income) loss attributable to NCI
|
|
||||||
Balance at March 31, 2020
|
$
|
514.9
|
|
|
$
|
(110.7
|
)
|
|
$
|
404.2
|
|
|
$
|
423.6
|
|
|
$
|
(16.2
|
)
|
|
$
|
(3.2
|
)
|
Reclassification of disproportionate amounts1
|
4.0
|
|
|
(0.8
|
)
|
|
3.2
|
|
|
0
|
|
|
0
|
|
|
3.2
|
|
||||||
Adjusted balance at March 31, 2020
|
518.9
|
|
|
(111.5
|
)
|
|
407.4
|
|
|
423.6
|
|
|
(16.2
|
)
|
|
0
|
|
||||||
Other comprehensive income (loss) before reclassifications:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment securities
|
966.2
|
|
|
(202.9
|
)
|
|
763.3
|
|
|
763.3
|
|
|
0
|
|
|
0
|
|
||||||
Loss attributable to noncontrolling interest (NCI)
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
Total other comprehensive income (loss) before reclassifications
|
966.2
|
|
|
(202.9
|
)
|
|
763.3
|
|
|
763.3
|
|
|
0
|
|
|
0
|
|
||||||
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net realized gains (losses) on securities
|
248.0
|
|
|
(52.1
|
)
|
|
195.9
|
|
|
195.9
|
|
|
0
|
|
|
0
|
|
||||||
Interest expense
|
(0.2
|
)
|
|
0
|
|
|
(0.2
|
)
|
|
0
|
|
|
(0.2
|
)
|
|
0
|
|
||||||
Total reclassification adjustment for amounts realized in net income
|
247.8
|
|
|
(52.1
|
)
|
|
195.7
|
|
|
195.9
|
|
|
(0.2
|
)
|
|
0
|
|
||||||
Total other comprehensive income (loss)
|
718.4
|
|
|
(150.8
|
)
|
|
567.6
|
|
|
567.4
|
|
|
0.2
|
|
|
0
|
|
||||||
Balance at June 30, 2020
|
$
|
1,237.3
|
|
|
$
|
(262.3
|
)
|
|
$
|
975.0
|
|
|
$
|
991.0
|
|
|
$
|
(16.0
|
)
|
|
$
|
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, 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, 2019
|
$
|
435.7
|
|
|
$
|
(94.0
|
)
|
|
$
|
341.7
|
|
|
$
|
360.8
|
|
|
$
|
(16.4
|
)
|
|
$
|
(2.7
|
)
|
Reclassification of disproportionate amounts1
|
3.4
|
|
|
(0.7
|
)
|
|
2.7
|
|
|
0
|
|
|
0
|
|
|
2.7
|
|
||||||
Adjusted balance at December 31, 2019
|
439.1
|
|
|
(94.7
|
)
|
|
344.4
|
|
|
360.8
|
|
|
(16.4
|
)
|
|
0
|
|
||||||
Other comprehensive income (loss) before reclassifications:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment securities
|
1,284.4
|
|
|
(269.7
|
)
|
|
1,014.7
|
|
|
1,014.7
|
|
|
0
|
|
|
0
|
|
||||||
Loss attributable to noncontrolling interest (NCI)
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||||
Total other comprehensive income (loss) before reclassifications
|
1,284.4
|
|
|
(269.7
|
)
|
|
1,014.7
|
|
|
1,014.7
|
|
|
0
|
|
|
0
|
|
||||||
Less: Reclassification adjustment for amounts realized in net income by income statement line item:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net realized gains (losses) on securities
|
486.7
|
|
|
(102.2
|
)
|
|
384.5
|
|
|
384.5
|
|
|
0
|
|
|
0
|
|
||||||
Interest expense
|
(0.5
|
)
|
|
0.1
|
|
|
(0.4
|
)
|
|
0
|
|
|
(0.4
|
)
|
|
0
|
|
||||||
Total reclassification adjustment for amounts realized in net income
|
486.2
|
|
|
(102.1
|
)
|
|
384.1
|
|
|
384.5
|
|
|
(0.4
|
)
|
|
0
|
|
||||||
Total other comprehensive income (loss)
|
798.2
|
|
|
(167.6
|
)
|
|
630.6
|
|
|
630.2
|
|
|
0.4
|
|
|
0
|
|
||||||
Balance at June 30, 2020
|
$
|
1,237.3
|
|
|
$
|
(262.3
|
)
|
|
$
|
975.0
|
|
|
$
|
991.0
|
|
|
$
|
(16.0
|
)
|
|
$
|
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
|
)
|
|
Six Months Ended June 30,
|
|
Year Ended
|
||||||||
(millions)
|
2020
|
|
2019
|
|
December 31, 2019
|
|
|||||
Balance, beginning of period
|
$
|
225.6
|
|
|
$
|
214.5
|
|
|
$
|
214.5
|
|
Net income attributable to NCI
|
0
|
|
|
4.0
|
|
|
9.7
|
|
|||
Other comprehensive income (loss) attributable to NCI1
|
0
|
|
|
4.9
|
|
|
4.6
|
|
|||
Exercise of employee stock options
|
16.0
|
|
|
7.7
|
|
|
7.7
|
|
|||
Purchase/change of ARX minority shares
|
(241.6
|
)
|
|
(11.2
|
)
|
|
(11.2
|
)
|
|||
Change in redemption value of NCI
|
0
|
|
|
0.2
|
|
|
0.3
|
|
|||
Balance, end of period
|
$
|
0
|
|
|
$
|
220.1
|
|
|
$
|
225.6
|
|
(millions)
|
June 30, 2020
|
|
|
June 30, 2019
|
|
|
December 31, 2019
|
|
|||
Intangible assets subject to amortization
|
$
|
187.3
|
|
|
$
|
246.3
|
|
|
$
|
215.9
|
|
Indefinite-lived intangible assets1
|
12.4
|
|
|
12.4
|
|
|
12.4
|
|
|||
Total
|
$
|
199.7
|
|
|
$
|
258.7
|
|
|
$
|
228.3
|
|
(millions)
|
June 30, 2020
|
|
June 30, 2019
|
|
December 31, 2019
|
||||||||||||||||||||||||
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
|
|
$
|
192.2
|
|
$
|
64.0
|
|
|
$
|
256.2
|
|
$
|
155.6
|
|
$
|
100.6
|
|
|
$
|
256.2
|
|
$
|
173.9
|
|
$
|
82.3
|
|
Agency relationships
|
159.2
|
|
59.7
|
|
99.5
|
|
|
159.2
|
|
48.3
|
|
110.9
|
|
|
159.2
|
|
54.0
|
|
105.2
|
|
|||||||||
Software rights
|
69.1
|
|
45.3
|
|
23.8
|
|
|
79.1
|
|
45.4
|
|
33.7
|
|
|
79.1
|
|
50.7
|
|
28.4
|
|
|||||||||
Trade name
|
0
|
|
0
|
|
0
|
|
|
34.8
|
|
33.7
|
|
1.1
|
|
|
34.8
|
|
34.8
|
|
0
|
|
|||||||||
Total
|
$
|
484.5
|
|
$
|
297.2
|
|
$
|
187.3
|
|
|
$
|
529.3
|
|
$
|
283.0
|
|
$
|
246.3
|
|
|
$
|
529.3
|
|
$
|
313.4
|
|
$
|
215.9
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||||||||||||||
|
Underwriting
Profit (Loss)
|
|
Underwriting
Profit (Loss)
|
|
Underwriting
Profit (Loss)
|
|
Underwriting
Profit (Loss)
|
||||||||||||||||||||
($ in millions)
|
$
|
|
Margin
|
|
$
|
|
Margin
|
|
$
|
|
Margin
|
|
$
|
|
Margin
|
||||||||||||
Personal Lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Agency
|
$
|
550.6
|
|
|
14.0
|
%
|
|
$
|
434.7
|
|
|
11.9
|
%
|
|
$
|
1,152.2
|
|
|
14.9
|
%
|
|
$
|
887.7
|
|
|
12.4
|
%
|
Direct
|
647.2
|
|
|
15.5
|
|
|
326.6
|
|
|
8.7
|
|
|
1,120.2
|
|
|
13.7
|
|
|
648.5
|
|
|
8.9
|
|
||||
Total Personal Lines
|
1,197.8
|
|
|
14.8
|
|
|
761.3
|
|
|
10.3
|
|
|
2,272.4
|
|
|
14.3
|
|
|
1,536.2
|
|
|
10.6
|
|
||||
Commercial Lines
|
179.8
|
|
|
15.9
|
|
|
124.4
|
|
|
11.6
|
|
|
292.3
|
|
|
12.6
|
|
|
291.0
|
|
|
14.0
|
|
||||
Property1
|
(188.7
|
)
|
|
(43.6
|
)
|
|
(34.4
|
)
|
|
(9.0
|
)
|
|
(139.5
|
)
|
|
(16.3
|
)
|
|
(26.7
|
)
|
|
(3.6
|
)
|
||||
Total underwriting operations
|
$
|
1,188.9
|
|
|
12.3
|
%
|
|
$
|
851.3
|
|
|
9.6
|
%
|
|
$
|
2,425.2
|
|
|
12.7
|
%
|
|
$
|
1,800.5
|
|
|
10.4
|
%
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||
Underwriting Performance1
|
2020
|
|
|
2019
|
|
|
Change
|
|
|
2020
|
|
|
2019
|
|
|
Change
|
|
Personal Lines—Agency
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss & loss adjustment expense ratio
|
53.2
|
|
|
68.9
|
|
|
(15.7
|
)
|
|
58.8
|
|
|
68.3
|
|
|
(9.5
|
)
|
Underwriting expense ratio
|
32.8
|
|
|
19.2
|
|
|
13.6
|
|
|
26.3
|
|
|
19.3
|
|
|
7.0
|
|
Combined ratio
|
86.0
|
|
|
88.1
|
|
|
(2.1
|
)
|
|
85.1
|
|
|
87.6
|
|
|
(2.5
|
)
|
Personal Lines—Direct
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss & loss adjustment expense ratio
|
50.3
|
|
|
70.1
|
|
|
(19.8
|
)
|
|
57.9
|
|
|
70.0
|
|
|
(12.1
|
)
|
Underwriting expense ratio
|
34.2
|
|
|
21.2
|
|
|
13.0
|
|
|
28.4
|
|
|
21.1
|
|
|
7.3
|
|
Combined ratio
|
84.5
|
|
|
91.3
|
|
|
(6.8
|
)
|
|
86.3
|
|
|
91.1
|
|
|
(4.8
|
)
|
Total Personal Lines
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss & loss adjustment expense ratio
|
51.7
|
|
|
69.5
|
|
|
(17.8
|
)
|
|
58.3
|
|
|
69.2
|
|
|
(10.9
|
)
|
Underwriting expense ratio
|
33.5
|
|
|
20.2
|
|
|
13.3
|
|
|
27.4
|
|
|
20.2
|
|
|
7.2
|
|
Combined ratio
|
85.2
|
|
|
89.7
|
|
|
(4.5
|
)
|
|
85.7
|
|
|
89.4
|
|
|
(3.7
|
)
|
Commercial Lines
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss & loss adjustment expense ratio
|
57.3
|
|
|
67.3
|
|
|
(10.0
|
)
|
|
62.9
|
|
|
65.0
|
|
|
(2.1
|
)
|
Underwriting expense ratio
|
26.8
|
|
|
21.1
|
|
|
5.7
|
|
|
24.5
|
|
|
21.0
|
|
|
3.5
|
|
Combined ratio
|
84.1
|
|
|
88.4
|
|
|
(4.3
|
)
|
|
87.4
|
|
|
86.0
|
|
|
1.4
|
|
Property
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss & loss adjustment expense ratio
|
114.0
|
|
|
77.7
|
|
|
36.3
|
|
|
86.5
|
|
|
73.0
|
|
|
13.5
|
|
Underwriting expense ratio2
|
29.6
|
|
|
31.3
|
|
|
(1.7
|
)
|
|
29.8
|
|
|
30.6
|
|
|
(0.8
|
)
|
Combined ratio2
|
143.6
|
|
|
109.0
|
|
|
34.6
|
|
|
116.3
|
|
|
103.6
|
|
|
12.7
|
|
Total Underwriting Operations
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss & loss adjustment expense ratio
|
55.2
|
|
|
69.6
|
|
|
(14.4
|
)
|
|
60.2
|
|
|
68.8
|
|
|
(8.6
|
)
|
Underwriting expense ratio
|
32.5
|
|
|
20.8
|
|
|
11.7
|
|
|
27.1
|
|
|
20.8
|
|
|
6.3
|
|
Combined ratio
|
87.7
|
|
|
90.4
|
|
|
(2.7
|
)
|
|
87.3
|
|
|
89.6
|
|
|
(2.3
|
)
|
Accident year — Loss & loss adjustment expense ratio3
|
55.5
|
|
|
68.8
|
|
|
(13.3
|
)
|
|
59.6
|
|
|
67.6
|
|
|
(8.0
|
)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(millions)
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
||||
Increase (decrease) in net loss and LAE reserves
|
$
|
146.5
|
|
|
$
|
485.4
|
|
|
$
|
116.1
|
|
|
$
|
825.5
|
|
Paid losses and LAE
|
5,174.9
|
|
|
5,652.7
|
|
|
11,360.5
|
|
|
11,071.6
|
|
||||
Total incurred losses and LAE
|
$
|
5,321.4
|
|
|
$
|
6,138.1
|
|
|
$
|
11,476.6
|
|
|
$
|
11,897.1
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Personal Lines
|
$
|
164.7
|
|
|
$
|
125.0
|
|
|
$
|
201.9
|
|
|
$
|
169.8
|
|
Commercial Lines
|
6.3
|
|
|
4.8
|
|
|
7.6
|
|
|
6.3
|
|
||||
Property
|
|
|
|
|
|
|
|
||||||||
Property business, net of reinsurance (excluding ASL)
|
247.9
|
|
|
131.4
|
|
|
289.7
|
|
|
193.0
|
|
||||
Reinsurance recoverable on ASL1
|
(13.1
|
)
|
|
(49.5
|
)
|
|
(13.0
|
)
|
|
(85.5
|
)
|
||||
Property business, net
|
234.8
|
|
|
81.9
|
|
|
276.7
|
|
|
107.5
|
|
||||
Total net catastrophe losses incurred
|
$
|
405.8
|
|
|
$
|
211.7
|
|
|
$
|
486.2
|
|
|
$
|
283.6
|
|
Combined ratio effect
|
4.2
|
pts.
|
|
2.4
|
pts.
|
|
2.5
|
pts.
|
|
1.6
|
pts.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Reinsurance recoverable on ASL, beginning of period
|
$
|
69.7
|
|
|
$
|
52.2
|
|
|
$
|
69.7
|
|
|
$
|
12.5
|
|
Reinsurance recoverables recognized on losses
|
|
|
|
|
|
|
|
||||||||
Accident year:
|
|
|
|
|
|
|
|
||||||||
2019
|
11.8
|
|
|
37.1
|
|
|
10.9
|
|
|
$
|
73.4
|
|
|||
2018
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
2017
|
1.3
|
|
|
12.4
|
|
|
2.1
|
|
|
12.1
|
|
||||
Total
|
13.1
|
|
|
49.5
|
|
|
13.0
|
|
|
85.5
|
|
||||
Reinsurance recoverables recognized on ALAE
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accident year:
|
|
|
|
|
|
|
|
||||||||
2019
|
1.3
|
|
|
4.9
|
|
|
1.4
|
|
|
8.1
|
|
||||
2018
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
2017
|
0.2
|
|
|
(0.7
|
)
|
|
0.2
|
|
|
(0.2
|
)
|
||||
Total
|
1.5
|
|
|
4.2
|
|
|
1.6
|
|
|
7.9
|
|
||||
Total reinsurance recoverables recognized
|
|
|
|
|
|
|
|
||||||||
Accident year:
|
|
|
|
|
|
|
|
||||||||
2019
|
13.1
|
|
|
42.0
|
|
|
12.3
|
|
|
81.5
|
|
||||
2018
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
2017
|
1.5
|
|
|
11.7
|
|
|
2.3
|
|
|
11.9
|
|
||||
Total
|
14.6
|
|
|
53.7
|
|
|
14.6
|
|
|
93.4
|
|
||||
Reinsurance recoverable on ASL, end of period
|
$
|
84.3
|
|
|
$
|
105.9
|
|
|
$
|
84.3
|
|
|
$
|
105.9
|
|
•
|
Primarily due to an older aged mix of claims inventory and an increase in the number of claims reopened during the first six months of 2020 personal injury protection (PIP) increased about 30% and 20% for the second quarter and first six months of 2020, respectively, bodily injury increased about 11% and 10%, and auto property damage increased about 13% and 14%.
|
•
|
Collision decreased about 8% during the second quarter and was flat during the first six months of 2020, in part due to a mix in the timing of salvage and subrogation collections.
|
•
|
PIP decreased about 45% and 33% for the second quarter and first six months of 2020, respectively.
|
•
|
Auto property damage decreased about 42% for the quarter and 30% for the first six months.
|
•
|
Bodily injury decreased about 42% for the quarter and 28% for the first six months.
|
•
|
Collision decreased about 36% for the quarter and 30% for the first six months.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
($ in millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
ACTUARIAL ADJUSTMENTS
|
|
|
|
|
|
|
|
||||||||
Reserve decrease (increase)
|
|
|
|
|
|
|
|
||||||||
Prior accident years
|
$
|
(2.7
|
)
|
|
$
|
(45.8
|
)
|
|
$
|
(12.2
|
)
|
|
$
|
(62.5
|
)
|
Current accident year
|
28.6
|
|
|
(16.3
|
)
|
|
30.2
|
|
|
(3.0
|
)
|
||||
Calendar year actuarial adjustment
|
$
|
25.9
|
|
|
$
|
(62.1
|
)
|
|
$
|
18.0
|
|
|
$
|
(65.5
|
)
|
PRIOR ACCIDENT YEARS DEVELOPMENT
|
|
|
|
|
|
|
|
||||||||
Favorable (unfavorable)
|
|
|
|
|
|
|
|
||||||||
Actuarial adjustment
|
$
|
(2.7
|
)
|
|
$
|
(45.8
|
)
|
|
$
|
(12.2
|
)
|
|
$
|
(62.5
|
)
|
All other development
|
30.7
|
|
|
(21.6
|
)
|
|
(103.9
|
)
|
|
(147.5
|
)
|
||||
Total development
|
$
|
28.0
|
|
|
$
|
(67.4
|
)
|
|
$
|
(116.1
|
)
|
|
$
|
(210.0
|
)
|
(Increase) decrease to calendar year combined ratio
|
0.3
|
pts.
|
|
(0.8
|
) pts.
|
|
(0.6
|
) pts.
|
|
(1.2
|
) pts.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||
($ in millions)
|
2020
|
|
2019
|
|
% Growth
|
|
2020
|
|
2019
|
|
% Growth
|
||||||||||
NET PREMIUMS WRITTEN
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Personal Lines
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
$
|
4,104.7
|
|
|
$
|
3,775.5
|
|
|
9
|
%
|
|
$
|
8,131.2
|
|
|
$
|
7,541.9
|
|
|
8
|
%
|
Direct
|
4,326.8
|
|
|
3,709.8
|
|
|
17
|
|
|
8,624.2
|
|
|
7,665.9
|
|
|
13
|
|
||||
Total Personal Lines
|
8,431.5
|
|
|
7,485.3
|
|
|
13
|
|
|
16,755.4
|
|
|
15,207.8
|
|
|
10
|
|
||||
Commercial Lines
|
1,195.1
|
|
|
1,182.7
|
|
|
1
|
|
|
2,339.2
|
|
|
2,347.9
|
|
|
0
|
|
||||
Property
|
513.4
|
|
|
458.5
|
|
|
12
|
|
|
916.7
|
|
|
810.7
|
|
|
13
|
|
||||
Total underwriting operations
|
$
|
10,140.0
|
|
|
$
|
9,126.5
|
|
|
11
|
%
|
|
$
|
20,011.3
|
|
|
$
|
18,366.4
|
|
|
9
|
%
|
NET PREMIUMS EARNED
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Personal Lines
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
$
|
3,919.0
|
|
|
$
|
3,639.6
|
|
|
8
|
%
|
|
$
|
7,747.7
|
|
|
$
|
7,148.1
|
|
|
8
|
%
|
Direct
|
4,167.9
|
|
|
3,733.4
|
|
|
12
|
|
|
8,160.3
|
|
|
7,309.7
|
|
|
12
|
|
||||
Total Personal Lines
|
8,086.9
|
|
|
7,373.0
|
|
|
10
|
|
|
15,908.0
|
|
|
14,457.8
|
|
|
10
|
|
||||
Commercial Lines
|
1,129.0
|
|
|
1,070.5
|
|
|
5
|
|
|
2,318.0
|
|
|
2,083.5
|
|
|
11
|
|
||||
Property
|
432.7
|
|
|
381.2
|
|
|
14
|
|
|
853.3
|
|
|
743.2
|
|
|
15
|
|
||||
Total underwriting operations
|
$
|
9,648.6
|
|
|
$
|
8,824.7
|
|
|
9
|
%
|
|
$
|
19,079.3
|
|
|
$
|
17,284.5
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
June 30,
|
||||||||||||||
(thousands)
|
|
|
|
|
|
|
2020
|
|
2019
|
|
% Growth
|
||||||||||
POLICIES IN FORCE
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency auto
|
|
|
|
|
|
|
7,362.5
|
|
|
6,783.7
|
|
|
9
|
%
|
|||||||
Direct auto
|
|
|
|
|
|
|
8,507.6
|
|
|
7,528.4
|
|
|
13
|
|
|||||||
Total auto
|
|
|
|
|
|
|
15,870.1
|
|
|
14,312.1
|
|
|
11
|
|
|||||||
Special lines1
|
|
|
|
|
|
|
4,790.5
|
|
|
4,510.2
|
|
|
6
|
|
|||||||
Personal Lines — total
|
|
|
|
|
|
|
20,660.6
|
|
|
18,822.3
|
|
|
10
|
|
|||||||
Commercial Lines
|
|
|
|
|
|
|
775.8
|
|
|
734.2
|
|
|
6
|
|
|||||||
Property
|
|
|
|
|
|
|
2,336.1
|
|
|
2,071.6
|
|
|
13
|
|
|||||||
Companywide total
|
|
|
|
|
|
|
23,772.5
|
|
|
21,628.1
|
|
|
10
|
%
|
|
Growth Over Prior Year
|
||||||||
|
Quarter
|
|
Year-to-date
|
||||||
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
Applications
|
|
|
|
|
|
||||
New
|
2
|
%
|
5
|
%
|
|
2
|
%
|
6
|
%
|
Renewal
|
12
|
|
11
|
|
|
11
|
|
11
|
|
Written premium per policy - Auto
|
0
|
|
2
|
|
|
0
|
|
3
|
|
Policy life expectancy - Auto
|
|
|
|
|
|
||||
Trailing 3-months
|
NM
|
|
1
|
|
|
|
|
||
Trailing 12-months
|
7
|
|
(2
|
)
|
|
|
|
||
|
|
|
|
|
|
||||
NM = Not meaningful
|
|
|
|
|
|
|
Growth Over Prior Year
|
||||||||
|
Quarter
|
|
Year-to-date
|
||||||
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
Applications - Auto
|
|
|
|
|
|
||||
New
|
(13
|
)%
|
6
|
%
|
|
(8
|
)%
|
7
|
%
|
Renewal
|
11
|
|
11
|
|
|
10
|
|
11
|
|
Written premium per policy - Auto
|
1
|
|
3
|
|
|
1
|
|
3
|
|
Policy life expectancy - Auto
|
|
|
|
|
|
||||
Trailing 3-months
|
NM
|
|
4
|
|
|
|
|
||
Trailing 12-months
|
9
|
|
0
|
|
|
|
|
||
|
|
|
|
|
|
||||
NM = Not meaningful
|
|
|
|
|
|
|
Growth Over Prior Year
|
||||||||
|
Quarter
|
|
Year-to-date
|
||||||
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
Applications - Auto
|
|
|
|
|
|
||||
New
|
4
|
%
|
6
|
%
|
|
5
|
%
|
7
|
%
|
Renewal
|
15
|
|
15
|
|
|
13
|
|
16
|
|
Written premium per policy - Auto
|
0
|
|
2
|
|
|
0
|
|
2
|
|
Policy life expectancy - Auto
|
|
|
|
|
|
||||
Trailing 3-months
|
NM
|
|
(2
|
)
|
|
|
|
||
Trailing 12-months
|
5
|
|
(4
|
)
|
|
|
|
||
|
|
|
|
|
|
||||
NM = Not meaningful
|
|
|
|
|
|
|
Growth Over Prior Year
|
||||||||
|
Quarter
|
|
Year-to-date
|
||||||
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
Applications - Auto
|
|
|
|
|
|
||||
New
|
(10
|
)%
|
11
|
%
|
|
(3
|
)%
|
11
|
%
|
Renewal
|
7
|
|
7
|
|
|
8
|
|
8
|
|
Written premium per policy - Auto
|
(1
|
)
|
10
|
|
|
2
|
|
12
|
|
Policy life expectancy - Auto - trailing 12-months
|
6
|
|
(7
|
)
|
|
|
|
||
|
|
|
|
|
|
||||
Note: Table excludes our transportation network company business.
|
|
|
|
|
|
|
Growth Over Prior Year
|
||||||||
|
Quarter
|
|
Year-to-date
|
||||||
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
Applications
|
|
|
|
|
|
||||
New
|
4
|
%
|
(6
|
)%
|
|
5
|
%
|
(2
|
)%
|
Renewal
|
15
|
|
23
|
|
|
16
|
|
24
|
|
Written premium per policy
|
0
|
|
3
|
|
|
0
|
|
2
|
|
|
Three Months
|
|
Six Months
|
||||||||
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Pretax recurring investment book yield (annualized)
|
2.5
|
%
|
|
3.2
|
%
|
|
2.6
|
%
|
|
3.1
|
%
|
Weighted average FTE book yield (annualized)
|
2.6
|
|
|
3.2
|
|
|
2.6
|
|
|
3.2
|
|
FTE total return:
|
|
|
|
|
|
|
|
||||
Fixed-income securities
|
3.4
|
|
|
2.1
|
|
|
4.6
|
|
|
4.4
|
|
Common stocks
|
21.5
|
|
|
4.0
|
|
|
(3.4
|
)
|
|
17.9
|
|
Total portfolio
|
4.5
|
|
|
2.2
|
|
|
3.9
|
|
|
5.5
|
|
|
Three Months
|
|
Six Months
|
||||||||
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
Fixed-income securities:
|
|
|
|
|
|
|
|
||||
U.S. Treasury Notes
|
0.7
|
%
|
|
2.3
|
%
|
|
7.0
|
%
|
|
3.9
|
%
|
Municipal bonds
|
3.8
|
|
|
1.8
|
|
|
6.6
|
|
|
3.7
|
|
Corporate bonds
|
6.3
|
|
|
2.6
|
|
|
5.5
|
|
|
6.3
|
|
Residential mortgage-backed securities
|
4.3
|
|
|
1.1
|
|
|
1.4
|
|
|
2.0
|
|
Commercial mortgage-backed securities
|
4.0
|
|
|
2.2
|
|
|
1.0
|
|
|
4.7
|
|
Other asset-backed securities
|
2.3
|
|
|
1.1
|
|
|
1.8
|
|
|
2.1
|
|
Preferred stocks
|
9.2
|
|
|
2.1
|
|
|
(4.1
|
)
|
|
8.5
|
|
Short-term investments
|
0.4
|
|
|
0.6
|
|
|
0.8
|
|
|
1.3
|
|
Common stocks:
|
|
|
|
|
|
|
|
||||
Indexed
|
21.5
|
|
|
4.0
|
|
|
(3.4
|
)
|
|
17.9
|
|
Actively managed
|
NA
|
|
|
5.0
|
|
|
NA
|
|
|
17.6
|
|
($ in millions)
|
Fair
Value
|
|
|
% of
Total
Portfolio
|
|
|
Duration
(years)
|
|
|
Rating1
|
|
June 30, 2020
|
|
|
|
|
|
|
|
||||
U.S. government obligations
|
$
|
9,277.8
|
|
|
21.2
|
%
|
|
3.8
|
|
|
AAA
|
State and local government obligations
|
3,574.3
|
|
|
8.2
|
|
|
4.5
|
|
|
AA+
|
|
Corporate debt securities
|
11,062.5
|
|
|
25.3
|
|
|
4.0
|
|
|
BBB+
|
|
Residential mortgage-backed securities
|
543.0
|
|
|
1.2
|
|
|
0.8
|
|
|
AA
|
|
Commercial mortgage-backed securities
|
5,761.8
|
|
|
13.2
|
|
|
2.7
|
|
|
AA
|
|
Other asset-backed securities
|
4,354.9
|
|
|
9.9
|
|
|
1.0
|
|
|
AAA-
|
|
Preferred stocks
|
1,332.7
|
|
|
3.0
|
|
|
3.2
|
|
|
BBB-
|
|
Short-term investments
|
4,700.5
|
|
|
10.8
|
|
|
0.1
|
|
|
BBB+
|
|
Total fixed-income securities
|
40,607.5
|
|
|
92.8
|
|
|
3.0
|
|
|
AA-
|
|
Common equities
|
3,170.4
|
|
|
7.2
|
|
|
na
|
|
|
na
|
|
Total portfolio2,3
|
$
|
43,777.9
|
|
|
100.0
|
%
|
|
3.0
|
|
|
AA-
|
June 30, 2019
|
|
|
|
|
|
|
|
||||
U.S. government obligations
|
$
|
12,379.4
|
|
|
33.6
|
%
|
|
3.7
|
|
|
AAA
|
State and local government obligations
|
1,589.7
|
|
|
4.3
|
|
|
2.9
|
|
|
AA+
|
|
Corporate debt securities
|
7,385.7
|
|
|
20.1
|
|
|
3.0
|
|
|
BBB
|
|
Residential mortgage-backed securities
|
665.2
|
|
|
1.8
|
|
|
1.1
|
|
|
AA-
|
|
Commercial mortgage-backed securities
|
4,441.9
|
|
|
12.1
|
|
|
2.5
|
|
|
AA-
|
|
Other asset-backed securities
|
4,497.2
|
|
|
12.2
|
|
|
0.9
|
|
|
AAA-
|
|
Preferred stocks
|
1,359.1
|
|
|
3.7
|
|
|
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-
|
December 31, 2019
|
|
|
|
|
|
|
|
||||
U.S. government obligations
|
$
|
13,251.1
|
|
|
33.7
|
%
|
|
4.9
|
|
|
AAA
|
State and local government obligations
|
1,713.3
|
|
|
4.4
|
|
|
3.1
|
|
|
AA+
|
|
Corporate debt securities
|
7,067.7
|
|
|
18.0
|
|
|
2.7
|
|
|
BBB
|
|
Residential mortgage-backed securities
|
627.5
|
|
|
1.6
|
|
|
0.9
|
|
|
AA
|
|
Commercial mortgage-backed securities
|
5,076.2
|
|
|
12.9
|
|
|
2.0
|
|
|
AA
|
|
Other asset-backed securities
|
5,179.5
|
|
|
13.2
|
|
|
0.8
|
|
|
AAA-
|
|
Preferred stocks
|
1,233.9
|
|
|
3.2
|
|
|
2.6
|
|
|
BBB-
|
|
Short-term investments
|
1,798.8
|
|
|
4.6
|
|
|
0.1
|
|
|
AA-
|
|
Total fixed-income securities
|
35,948.0
|
|
|
91.6
|
|
|
3.0
|
|
|
AA
|
|
Common equities
|
3,306.3
|
|
|
8.4
|
|
|
na
|
|
|
na
|
|
Total portfolio2,3
|
$
|
39,254.3
|
|
|
100.0
|
%
|
|
3.0
|
|
|
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, 2020
|
|
June 30, 2019
|
|
December 31, 2019
|
||||||||||||
($ 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
|
$
|
368.6
|
|
0.8
|
%
|
|
$
|
489.5
|
|
1.3
|
%
|
|
$
|
327.2
|
|
0.8
|
%
|
Redeemable preferred stocks1
|
76.0
|
|
0.2
|
|
|
133.7
|
|
0.4
|
|
|
117.6
|
|
0.3
|
|
|||
Nonredeemable preferred stocks
|
1,180.6
|
|
2.7
|
|
|
1,130.0
|
|
3.1
|
|
|
1,038.9
|
|
2.7
|
|
|||
Common equities
|
3,170.4
|
|
7.2
|
|
|
3,135.5
|
|
8.5
|
|
|
3,306.3
|
|
8.4
|
|
|||
Total Group I securities
|
4,795.6
|
|
10.9
|
|
|
4,888.7
|
|
13.3
|
|
|
4,790.0
|
|
12.2
|
|
|||
Group II securities:
|
|
|
|
|
|
|
|
|
|||||||||
Other fixed maturities
|
34,281.8
|
|
78.3
|
|
|
30,565.0
|
|
83.0
|
|
|
32,665.5
|
|
83.2
|
|
|||
Short-term investments
|
4,700.5
|
|
10.8
|
|
|
1,360.9
|
|
3.7
|
|
|
1,798.8
|
|
4.6
|
|
|||
Total Group II securities
|
38,982.3
|
|
89.1
|
|
|
31,925.9
|
|
86.7
|
|
|
34,464.3
|
|
87.8
|
|
|||
Total portfolio
|
$
|
43,777.9
|
|
100.0
|
%
|
|
$
|
36,814.6
|
|
100.0
|
%
|
|
$
|
39,254.3
|
|
100.0
|
%
|
(millions)
|
Gross Holding Period Gains
|
|
Gross Holding Period Losses
|
|
Net Holding Period Gains (Losses)
|
|
|||
Beginning of period
|
|
|
|
||||||
Hybrid fixed-maturity securities
|
$
|
7.8
|
|
$
|
0
|
|
$
|
7.8
|
|
Equity securities
|
2,263.9
|
|
(15.5
|
)
|
2,248.4
|
|
|||
Balance at December 31, 2019
|
2,271.7
|
|
(15.5
|
)
|
2,256.2
|
|
|||
Year-to-date change in fair value
|
|
|
|
|
|
|
|||
Hybrid fixed-maturity securities
|
(4.6
|
)
|
(1.8
|
)
|
(6.4
|
)
|
|||
Equity securities
|
(186.5
|
)
|
(45.1
|
)
|
(231.6
|
)
|
|||
Total holding period gains (losses) during the period
|
(191.1
|
)
|
(46.9
|
)
|
(238.0
|
)
|
|||
End of period
|
|
|
|
|
|
|
|||
Hybrid fixed-maturity securities
|
3.2
|
|
(1.8
|
)
|
1.4
|
|
|||
Equity securities
|
2,077.4
|
|
(60.6
|
)
|
2,016.8
|
|
|||
Balance at June 30, 2020
|
$
|
2,080.6
|
|
$
|
(62.4
|
)
|
$
|
2,018.2
|
|
•
|
Interest rate risk - our duration of 3.0 years at June 30, 2020, fell within our acceptable range.
|
◦
|
The duration distribution of our fixed-income portfolio, excluding short-term investments, represented by the interest rate sensitivity of the comparable benchmark U.S. Treasury Notes, was:
|
Duration Distribution
|
June 30, 2020
|
|
|
June 30, 2019
|
|
|
December 31, 2019
|
|
1 year
|
25.5
|
%
|
|
24.1
|
%
|
|
23.9
|
%
|
2 years
|
14.1
|
|
|
20.6
|
|
|
11.8
|
|
3 years
|
21.3
|
|
|
20.1
|
|
|
20.6
|
|
5 years
|
20.1
|
|
|
19.8
|
|
|
23.1
|
|
7 years
|
10.4
|
|
|
12.3
|
|
|
15.1
|
|
10 years
|
8.6
|
|
|
3.1
|
|
|
5.5
|
|
Total fixed-income portfolio
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
•
|
Credit risk - our credit quality rating was above our minimum threshold during the second quarter 2020.
|
◦
|
The credit quality distribution of the fixed-income portfolio was:
|
Rating
|
June 30, 2020
|
|
|
June 30, 2019
|
|
|
December 31, 2019
|
|
AAA
|
45.6
|
%
|
|
58.0
|
%
|
|
60.8
|
%
|
AA
|
8.9
|
|
|
10.4
|
|
|
9.9
|
|
A
|
14.5
|
|
|
8.4
|
|
|
7.9
|
|
BBB
|
29.4
|
|
|
20.4
|
|
|
19.5
|
|
Non-investment grade/non-rated1
|
|
|
|
|
|
|||
BB
|
1.2
|
|
|
1.9
|
|
|
1.4
|
|
B
|
0.2
|
|
|
0.6
|
|
|
0.3
|
|
CCC and lower
|
0
|
|
|
0.1
|
|
|
0
|
|
Non-rated
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
Total fixed-income portfolio
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
•
|
Concentration risk - we did not have any investments in a single issuer, either overall or in the context of individual assets classes and sectors, that exceeded our thresholds during the second quarter 2020.
|
•
|
Prepayment and extension risk - we did not experience significant adverse prepayment or extension of principal relative to our cash flow expectations in the portfolio during the second quarter 2020.
|
•
|
Liquidity risk - our overall portfolio remains very liquid and we believe that it is sufficient to meet expected near-term liquidity requirements.
|
◦
|
The short-to-intermediate duration of our portfolio provides a source of liquidity, as we expect approximately $3.1 billion, or 11.5%, of principal repayment from our fixed-income portfolio, excluding U.S. Treasury Notes and short-term investments, during the remainder of 2020. Cash from interest and dividend payments provides an additional source of recurring liquidity.
|
◦
|
The duration of our U.S. government obligations, which are included in the fixed-income portfolio, was comprised of the following at June 30, 2020:
|
($ in millions)
|
Fair
Value
|
|
|
Duration
(years)
|
|
|
U.S. Treasury Notes
|
|
|
|
|||
Less than one year
|
$
|
442.3
|
|
|
0.8
|
|
One to two years
|
1,350.0
|
|
|
1.6
|
|
|
Two to three years
|
2,424.1
|
|
|
2.6
|
|
|
Three to five years
|
2,461.0
|
|
|
4.1
|
|
|
Five to seven years
|
1,940.7
|
|
|
5.7
|
|
|
Seven to ten years
|
659.7
|
|
|
8.3
|
|
|
Total U.S. Treasury Notes
|
$
|
9,277.8
|
|
|
3.8
|
|
($ in millions)
|
Fair
Value
|
|
|
Net Unrealized
Gains (Losses)
|
|
|
% of Asset-
Backed
Securities
|
|
|
Duration
(years)
|
|
|
Rating
(at period end)1 |
||
June 30, 2020
|
|
|
|
|
|
|
|
|
|
||||||
Residential mortgage-backed securities
|
$
|
543.0
|
|
|
$
|
2.0
|
|
|
5.1
|
%
|
|
0.8
|
|
|
AA
|
Commercial mortgage-backed securities
|
5,761.8
|
|
|
33.3
|
|
|
54.0
|
|
|
2.7
|
|
|
AA
|
||
Other asset-backed securities
|
4,354.9
|
|
|
41.6
|
|
|
40.9
|
|
|
1.0
|
|
|
AAA-
|
||
Total asset-backed securities
|
$
|
10,659.7
|
|
|
$
|
76.9
|
|
|
100.0
|
%
|
|
1.9
|
|
|
AA+
|
June 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||
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
|
4,497.2
|
|
|
18.9
|
|
|
46.8
|
|
|
0.9
|
|
|
AAA-
|
||
Total asset-backed securities
|
$
|
9,604.3
|
|
|
$
|
104.4
|
|
|
100.0
|
%
|
|
1.6
|
|
|
AA
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||
Residential mortgage-backed securities
|
$
|
627.5
|
|
|
$
|
2.5
|
|
|
5.8
|
%
|
|
0.9
|
|
|
AA
|
Commercial mortgage-backed securities
|
5,076.2
|
|
|
55.5
|
|
|
46.6
|
|
|
2.0
|
|
|
AA
|
||
Other asset-backed securities
|
5,179.5
|
|
|
14.8
|
|
|
47.6
|
|
|
0.8
|
|
|
AAA-
|
||
Total asset-backed securities
|
$
|
10,883.2
|
|
|
$
|
72.8
|
|
|
100.0
|
%
|
|
1.4
|
|
|
AA+
|
Residential Mortgage-Backed Securities (at June 30, 2020)
|
||||||||||||||
Non-Agency
|
|
|
Government/GSE2
|
|
|
Total
|
|
% of Total
|
|
|||||
AAA
|
$
|
378.2
|
|
|
$
|
2.0
|
|
|
$
|
380.2
|
|
|
70.0
|
%
|
AA
|
65.8
|
|
|
0.6
|
|
|
66.4
|
|
|
12.2
|
|
|||
A
|
24.0
|
|
|
0
|
|
|
24.0
|
|
|
4.4
|
|
|||
BBB
|
12.3
|
|
|
0
|
|
|
12.3
|
|
|
2.3
|
|
|||
Non-investment grade/non-rated:
|
|
|
|
|
|
|
|
|
|
|||||
BB
|
0.5
|
|
|
0
|
|
|
0.5
|
|
|
0.1
|
|
|||
B
|
16.4
|
|
|
0
|
|
|
16.4
|
|
|
3.0
|
|
|||
CCC and lower
|
11.9
|
|
|
0
|
|
|
11.9
|
|
|
2.2
|
|
|||
Non-rated
|
31.3
|
|
|
0
|
|
|
31.3
|
|
|
5.8
|
|
|||
Total fair value
|
$
|
540.4
|
|
|
$
|
2.6
|
|
|
$
|
543.0
|
|
|
100.0
|
%
|
Increase (decrease) in value
|
0.3
|
%
|
|
8.0
|
%
|
|
0.4
|
%
|
|
|
Commercial Mortgage-Backed Securities (at June 30, 2020)
|
||||||||||||||
($ in millions)
Rating1
|
Multi-Borrower
|
|
|
Single-Borrower
|
|
|
Total
|
|
% of Total
|
|
||||
AAA
|
$
|
312.4
|
|
|
$
|
2,789.7
|
|
|
$
|
3,102.1
|
|
|
53.9
|
%
|
AA
|
3.4
|
|
|
1,366.9
|
|
|
1,370.3
|
|
|
23.8
|
|
|||
A
|
0
|
|
|
783.4
|
|
|
783.4
|
|
|
13.6
|
|
|||
BBB
|
33.2
|
|
|
447.7
|
|
|
480.9
|
|
|
8.3
|
|
|||
Non-investment grade/non-rated:
|
|
|
|
|
|
|
|
|||||||
BB
|
0
|
|
|
24.6
|
|
|
24.6
|
|
|
0.4
|
|
|||
B
|
0.5
|
|
|
0
|
|
|
0.5
|
|
|
0
|
|
|||
Total fair value
|
$
|
349.5
|
|
|
$
|
5,412.3
|
|
|
$
|
5,761.8
|
|
|
100.0
|
%
|
Increase (decrease) in value
|
1.3
|
%
|
|
0.5
|
%
|
|
0.6
|
%
|
|
|
Other Asset-Backed Securities (at June 30, 2020)
|
|||||||||||||||||||||||
($ in millions)
Rating
|
Automobile
|
|
Credit Card
|
|
Student Loan
|
|
Whole Business Securitizations
|
|
Equipment
|
|
Other
|
|
Total
|
|
% of
Total
|
|
|||||||
AAA
|
$
|
1,745.0
|
|
$
|
400.7
|
|
$
|
284.6
|
|
$
|
0
|
|
$
|
1,100.2
|
|
$
|
134.0
|
|
$
|
3,664.5
|
|
84.2
|
%
|
AA
|
64.4
|
|
0
|
|
36.3
|
|
0
|
|
77.6
|
|
10.0
|
|
188.3
|
|
4.3
|
|
|||||||
A
|
32.2
|
|
0
|
|
10.3
|
|
0
|
|
113.0
|
|
37.0
|
|
192.5
|
|
4.4
|
|
|||||||
BBB
|
0
|
|
0
|
|
0
|
|
309.6
|
|
0
|
|
0
|
|
309.6
|
|
7.1
|
|
|||||||
Total fair value
|
$
|
1,841.6
|
|
$
|
400.7
|
|
$
|
331.2
|
|
$
|
309.6
|
|
$
|
1,290.8
|
|
$
|
181.0
|
|
$
|
4,354.9
|
|
100.0
|
%
|
Increase (decrease) in value
|
0.9
|
%
|
0.9
|
%
|
1.0
|
%
|
2.1
|
%
|
1.1
|
%
|
(0.8
|
)%
|
1.0
|
%
|
|
Municipal Securities (at June 30, 2020)
|
|||||||||||
(millions)
Rating
|
General
Obligations
|
|
|
Revenue
Bonds
|
|
|
Total
|
|
|||
AAA
|
$
|
775.0
|
|
|
$
|
690.9
|
|
|
$
|
1,465.9
|
|
AA
|
559.1
|
|
|
1,169.7
|
|
|
1,728.8
|
|
|||
A
|
0
|
|
|
375.1
|
|
|
375.1
|
|
|||
BBB
|
2.9
|
|
|
1.6
|
|
|
4.5
|
|
|||
Total
|
$
|
1,337.0
|
|
|
$
|
2,237.3
|
|
|
$
|
3,574.3
|
|
Corporate Securities (at June 30, 2020)
|
||||||||||||||||||||||||
(millions)
Rating
|
Consumer
|
|
Industrial
|
|
Communication
|
|
Financial Services
|
|
Technology
|
|
Basic Materials
|
|
Energy
|
|
Total
|
|
||||||||
AAA
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
30.1
|
|
$
|
0
|
|
$
|
0
|
|
$
|
0
|
|
$
|
30.1
|
|
AA
|
159.1
|
|
0
|
|
0
|
|
278.2
|
|
61.0
|
|
0
|
|
11.5
|
|
509.8
|
|
||||||||
A
|
1,000.3
|
|
179.0
|
|
317.6
|
|
1,125.6
|
|
319.3
|
|
107.3
|
|
93.5
|
|
3,142.6
|
|
||||||||
BBB
|
2,885.3
|
|
1,486.0
|
|
149.6
|
|
1,345.6
|
|
410.7
|
|
43.9
|
|
714.6
|
|
7,035.7
|
|
||||||||
Non-investment grade/non-rated:
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
BB
|
45.1
|
|
98.9
|
|
65.0
|
|
11.8
|
|
46.3
|
|
0
|
|
27.5
|
|
294.6
|
|
||||||||
B
|
49.7
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
49.7
|
|
||||||||
Total fair value
|
$
|
4,139.5
|
|
$
|
1,763.9
|
|
$
|
532.2
|
|
$
|
2,791.3
|
|
$
|
837.3
|
|
$
|
151.2
|
|
$
|
847.1
|
|
$
|
11,062.5
|
|
Preferred Stocks (at June 30, 2020)
|
|||||||||||||||||||||
|
Financial Services
|
|
|
|
|||||||||||||||||
(millions)
Rating
|
U.S. Banks
|
|
Foreign Banks
|
|
Insurance
|
|
Other
|
|
Industrials
|
|
Utilities
|
|
Total
|
|
|||||||
A
|
$
|
47.5
|
|
$
|
0
|
|
$
|
0
|
|
$
|
8.9
|
|
$
|
0
|
|
$
|
0
|
|
$
|
56.4
|
|
BBB
|
825.4
|
|
0
|
|
98.2
|
|
24.9
|
|
90.2
|
|
10.8
|
|
1,049.5
|
|
|||||||
Non-investment grade/non-rated:
|
|
|
|
|
|
|
|
|
|||||||||||||
BB
|
20.3
|
|
87.5
|
|
0
|
|
0
|
|
22.1
|
|
38.7
|
|
168.6
|
|
|||||||
B
|
0
|
|
0
|
|
0
|
|
4.9
|
|
0
|
|
0
|
|
4.9
|
|
|||||||
Non-rated
|
0
|
|
0
|
|
0
|
|
38.1
|
|
15.2
|
|
0
|
|
53.3
|
|
|||||||
Total fair value
|
$
|
893.2
|
|
$
|
87.5
|
|
$
|
98.2
|
|
$
|
76.8
|
|
$
|
127.5
|
|
$
|
49.5
|
|
$
|
1,332.7
|
|
($ in millions)
|
June 30, 2020
|
|
June 30, 2019
|
|
December 31, 2019
|
|||||||||||||||
Indexed common stocks
|
$
|
3,170.1
|
|
|
100.0
|
%
|
|
$
|
2,958.4
|
|
|
94.4
|
%
|
|
$
|
3,306.0
|
|
|
100.0
|
%
|
Managed common stocks
|
0
|
|
|
0
|
|
|
176.8
|
|
|
5.6
|
|
|
0
|
|
|
0
|
|
|||
Total common stocks
|
3,170.1
|
|
|
100.0
|
|
|
3,135.2
|
|
|
100.0
|
|
|
3,306.0
|
|
|
100.0
|
|
|||
Other risk investments
|
0.3
|
|
|
0
|
|
|
0.3
|
|
|
0
|
|
|
0.3
|
|
|
0
|
|
|||
Total common equities
|
$
|
3,170.4
|
|
|
100.0
|
%
|
|
$
|
3,135.5
|
|
|
100.0
|
%
|
|
$
|
3,306.3
|
|
|
100.0
|
%
|
•
|
our ability to underwrite and price risks accurately and to charge adequate rates to policyholders;
|
•
|
our ability to establish accurate loss reserves;
|
•
|
the impact of severe weather, other catastrophe events and climate change;
|
•
|
the effectiveness of our reinsurance programs;
|
•
|
the highly competitive nature of property-casualty insurance markets;
|
•
|
whether we innovate effectively and respond to our competitors’ initiatives;
|
•
|
whether we effectively manage complexity as we develop and deliver products and customer experiences;
|
•
|
how intellectual property rights could affect our competitiveness and our business operations;
|
•
|
whether we adjust claims accurately;
|
•
|
our ability to maintain a recognized and trusted brand;
|
•
|
our ability to attract, develop and retain talent and maintain appropriate staffing levels;
|
•
|
compliance with complex laws and regulations;
|
•
|
litigation challenging our business practices, and those of our competitors and other companies;
|
•
|
the impacts of a security breach or other attack involving our computer systems or the systems of one or more of our vendors;
|
•
|
the secure and uninterrupted operation of the facilities, systems, and business functions that are critical to our business;
|
•
|
the success of our efforts to develop new products or enter into new areas of business and navigate related risks;
|
•
|
our continued ability to send and accept electronic payments;
|
•
|
the possible impairment of our goodwill or intangible assets;
|
•
|
the performance of our fixed-income and equity investment portfolios;
|
•
|
the potential elimination of, or change in, the London Interbank Offered Rate;
|
•
|
our continued ability to access our cash accounts and/or convert securities into cash on favorable terms;
|
•
|
the impact if one or more parties with which we enter into significant contracts or transact business fail to perform;
|
•
|
legal restrictions on our insurance subsidiaries’ ability to pay dividends to The Progressive Corporation;
|
•
|
limitations on our ability to pay dividends on our common shares under the terms of our outstanding preferred shares;
|
•
|
our ability to obtain capital when necessary to support our business and potential growth;
|
•
|
evaluations by credit rating and other rating agencies;
|
•
|
the variable nature of our common share dividend policy;
|
•
|
whether our investments in certain tax-advantaged projects generate the anticipated returns;
|
•
|
the impact from not managing to short-term earnings expectations in light of our goal to maximize the long-term value of the enterprise;
|
•
|
impacts from the outbreak of the novel coronavirus, or COVID-19, and the restrictions put in place to help slow and/or stop the spread of the virus; and
|
•
|
other matters described from time to time in our releases and publications, and in our periodic reports and other documents filed with the United States Securities and Exchange Commission, including, without limitation, the Risk Factors section of our Annual Report on Form 10-K for the year ending December 31, 2019, and our Quarterly Report on Form 10-Q for the period ending March 31, 2020.
|
ISSUER PURCHASES OF EQUITY SECURITIES
|
||||||||||||
2020
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
|
1,153
|
|
|
$
|
71.91
|
|
|
1,140,410
|
|
|
23,859,590
|
|
May
|
28,197
|
|
|
76.34
|
|
|
1,168,607
|
|
|
23,831,393
|
|
|
June
|
4,412
|
|
|
77.96
|
|
|
1,173,019
|
|
|
23,826,981
|
|
|
Total
|
33,762
|
|
|
$
|
76.40
|
|
|
|
|
|
|
|
|
|
THE PROGRESSIVE CORPORATION
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
Date:
|
August 4, 2020
|
|
|
By: /s/ John P. Sauerland
|
|
|
|
|
John P. Sauerland
|
|
|
|
|
Vice President and Chief Financial Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A.
|
Discretionary Line Documents. The “Discretionary Line Documents” that are the subject of this Amendment include the following (as each of such documents has been amended, modified or otherwise supplemented previously)
|
C.
|
Conditions to Effectiveness of Amendment. The Bank’s willingness to agree to the amendments set forth in this Amendment is subject to the execution by all parties and delivery to the Bank of this Amendment.
|
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.
|