☒ | 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, | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
(millions — except per share amounts) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Net premiums earned | $ | 12,147.9 | $ | 10,982.3 | $ | 23,950.8 | $ | 21,402.5 | |||||||||||||||
Investment income | 292.4 | 210.7 | 534.6 | 430.9 | |||||||||||||||||||
Net realized gains (losses) on securities: | |||||||||||||||||||||||
Net realized gains (losses) on security sales | 546.6 | 410.1 | 492.1 | 553.9 | |||||||||||||||||||
Net holding period gains (losses) on securities | (1,722.2) | 54.2 | (2,110.8) | 495.7 | |||||||||||||||||||
Net impairment losses recognized in earnings | (2.1) | (2.5) | (4.3) | (2.5) | |||||||||||||||||||
Total net realized gains (losses) on securities | (1,177.7) | 461.8 | (1,623.0) | 1,047.1 | |||||||||||||||||||
Fees and other revenues | 176.5 | 176.2 | 350.5 | 341.9 | |||||||||||||||||||
Service revenues | 80.1 | 74.5 | 147.8 | 128.3 | |||||||||||||||||||
Total revenues | 11,519.2 | 11,905.5 | 23,360.7 | 23,350.7 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Losses and loss adjustment expenses | 9,421.1 | 8,406.4 | 18,279.5 | 15,516.9 | |||||||||||||||||||
Policy acquisition costs | 933.6 | 928.8 | 1,897.0 | 1,803.2 | |||||||||||||||||||
Other underwriting expenses | 1,431.2 | 1,440.5 | 2,937.5 | 2,921.6 | |||||||||||||||||||
Investment expenses | 5.9 | 6.3 | 11.6 | 11.9 | |||||||||||||||||||
Service expenses | 75.5 | 67.9 | 138.7 | 117.2 | |||||||||||||||||||
Interest expense | 63.0 | 56.4 | 117.3 | 112.8 | |||||||||||||||||||
Goodwill impairment1 | 224.8 | 0 | 224.8 | 0 | |||||||||||||||||||
Total expenses | 12,155.1 | 10,906.3 | 23,606.4 | 20,483.6 | |||||||||||||||||||
Net Income (Loss) | |||||||||||||||||||||||
Income (loss) before income taxes | (635.9) | 999.2 | (245.7) | 2,867.1 | |||||||||||||||||||
Provision (benefit) for income taxes | (93.0) | 209.1 | (16.7) | 597.0 | |||||||||||||||||||
Net income (loss) | (542.9) | 790.1 | (229.0) | 2,270.1 | |||||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Changes in: | |||||||||||||||||||||||
Total net unrealized gains (losses) on fixed-maturity securities | (822.8) | 91.1 | (2,249.7) | (448.5) | |||||||||||||||||||
Net unrealized losses on forecasted transactions | 0 | 0.3 | 0.2 | 0.5 | |||||||||||||||||||
Foreign currency translation adjustment | (0.4) | (0.5) | (0.2) | (0.5) | |||||||||||||||||||
Other comprehensive income (loss) | (823.2) | 90.9 | (2,249.7) | (448.5) | |||||||||||||||||||
Comprehensive income (loss) | $ | (1,366.1) | $ | 881.0 | $ | (2,478.7) | $ | 1,821.6 | |||||||||||||||
Computation of Earnings Per Common Share | |||||||||||||||||||||||
Net income (loss) | $ | (542.9) | $ | 790.1 | $ | (229.0) | $ | 2,270.1 | |||||||||||||||
Less: Preferred share dividends | 6.7 | 6.7 | 13.4 | 13.4 | |||||||||||||||||||
Net income (loss) available to common shareholders | $ | (549.6) | $ | 783.4 | $ | (242.4) | $ | 2,256.7 | |||||||||||||||
Average common shares outstanding - Basic | 584.3 | 584.6 | 584.3 | 584.7 | |||||||||||||||||||
Net effect of dilutive stock-based compensation | 2.2 | 2.2 | 2.1 | 2.1 | |||||||||||||||||||
Total average equivalent common shares - Diluted | 586.5 | 586.8 | 586.4 | 586.8 | |||||||||||||||||||
Basic: Earnings per common share | $ | (0.94) | $ | 1.34 | $ | (0.41) | $ | 3.86 | |||||||||||||||
Diluted: Earnings per common share | $ | (0.94) | $ | 1.34 | $ | (0.41) | $ | 3.85 | |||||||||||||||
June 30, | December 31, | ||||||||||||||||
(millions — except per share amounts) | 2022 | 2021 | 2021 | ||||||||||||||
Assets | |||||||||||||||||
Available-for-sale securities, at fair value: | |||||||||||||||||
Fixed maturities (amortized cost: $46,028.8, $42,378.0, and $43,794.2) | $ | 43,172.5 | $ | 43,031.0 | $ | 43,873.1 | |||||||||||
Short-term investments (amortized cost: $4,611.8, $1,710.6, and $942.6) | 4,611.8 | 1,710.6 | 942.6 | ||||||||||||||
Total available-for-sale securities | 47,784.3 | 44,741.6 | 44,815.7 | ||||||||||||||
Equity securities, at fair value: | |||||||||||||||||
Nonredeemable preferred stocks (cost: $1,522.5, $1,511.2, and $1,571.8) | 1,360.5 | 1,609.8 | 1,639.9 | ||||||||||||||
Common equities (cost: $783.6, $1,238.4, and $1,264.1) | 2,784.7 | 4,591.4 | 5,058.5 | ||||||||||||||
Total equity securities | 4,145.2 | 6,201.2 | 6,698.4 | ||||||||||||||
Total investments | 51,929.5 | 50,942.8 | 51,514.1 | ||||||||||||||
Cash and cash equivalents | 226.1 | 99.5 | 187.1 | ||||||||||||||
Restricted cash and cash equivalents | 14.4 | 15.1 | 15.0 | ||||||||||||||
Total cash, cash equivalents, restricted cash, and restricted cash equivalents | 240.5 | 114.6 | 202.1 | ||||||||||||||
Accrued investment income | 216.7 | 179.3 | 181.7 | ||||||||||||||
Premiums receivable, net of allowance for credit losses of $265.8, $245.2, and $280.4 | 10,561.8 | 9,436.2 | 9,399.5 | ||||||||||||||
Reinsurance recoverables | 4,961.2 | 4,709.1 | 4,980.5 | ||||||||||||||
Prepaid reinsurance premiums | 464.3 | 620.0 | 457.6 | ||||||||||||||
Deferred acquisition costs | 1,498.4 | 1,360.6 | 1,355.6 | ||||||||||||||
Property and equipment, net of accumulated depreciation of $1,512.6, $1,396.5, and $1,407.4 | 1,124.7 | 1,086.4 | 1,137.3 | ||||||||||||||
Goodwill | 227.9 | 452.7 | 452.7 | ||||||||||||||
Intangible assets, net of accumulated amortization of $147.7, $354.6, and $383.8 | 97.2 | 146.5 | 117.3 | ||||||||||||||
Net federal deferred income taxes | 955.6 | 0 | 0 | ||||||||||||||
Other assets | 779.4 | 776.1 | 1,333.9 | ||||||||||||||
Total assets | $ | 73,057.2 | $ | 69,824.3 | $ | 71,132.3 | |||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||
Unearned premiums | $ | 17,274.8 | $ | 15,555.9 | $ | 15,615.8 | |||||||||||
Loss and loss adjustment expense reserves | 27,812.0 | 23,895.6 | 26,164.1 | ||||||||||||||
Net federal deferred income taxes | 0 | 219.4 | 152.9 | ||||||||||||||
Accounts payable, accrued expenses, and other liabilities | 5,931.2 | 6,080.3 | 6,069.1 | ||||||||||||||
Debt1 | 6,386.5 | 5,397.5 | 4,898.8 | ||||||||||||||
Total liabilities | 57,404.5 | 51,148.7 | 52,900.7 | ||||||||||||||
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 797.6, including treasury shares of 212.7, 212.4, and 213.2) | 584.9 | 585.2 | 584.4 | ||||||||||||||
Paid-in capital | 1,815.2 | 1,712.3 | 1,772.9 | ||||||||||||||
Retained earnings | 14,967.7 | 15,401.0 | 15,339.7 | ||||||||||||||
Accumulated other comprehensive income (loss): | |||||||||||||||||
Net unrealized gains (losses) on fixed-maturity securities | (2,193.5) | 498.8 | 56.2 | ||||||||||||||
Net unrealized losses on forecasted transactions | (14.7) | (15.1) | (14.9) | ||||||||||||||
Foreign currency translation adjustment | (0.8) | (0.5) | (0.6) | ||||||||||||||
Total accumulated other comprehensive income (loss) | (2,209.0) | 483.2 | 40.7 | ||||||||||||||
Total shareholders’ equity | 15,652.7 | 18,675.6 | 18,231.6 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 73,057.2 | $ | 69,824.3 | $ | 71,132.3 |
Three Months | Six Months | ||||||||||||||||||||||
Periods Ended June 30, | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
(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 | 584.9 | 585.2 | 584.4 | 585.2 | |||||||||||||||||||
Treasury shares purchased | 0 | (0.2) | (0.3) | (1.1) | |||||||||||||||||||
Net restricted equity awards issued/vested | 0 | 0.2 | 0.8 | 1.1 | |||||||||||||||||||
Balance, end of period | 584.9 | 585.2 | 584.9 | 585.2 | |||||||||||||||||||
Paid-In Capital | |||||||||||||||||||||||
Balance, beginning of period | 1,788.6 | 1,685.5 | 1,772.9 | 1,672.9 | |||||||||||||||||||
Amortization of equity-based compensation | 26.4 | 26.9 | 43.7 | 42.7 | |||||||||||||||||||
Treasury shares purchased | (0.1) | (0.3) | (0.9) | (3.0) | |||||||||||||||||||
Net restricted equity awards issued/vested | 0 | (0.2) | (0.8) | (1.1) | |||||||||||||||||||
Reinvested dividends on restricted stock units | 0.3 | 0.4 | 0.3 | 0.8 | |||||||||||||||||||
Balance, end of period | 1,815.2 | 1,712.3 | 1,815.2 | 1,712.3 | |||||||||||||||||||
Retained Earnings | |||||||||||||||||||||||
Balance, beginning of period | 15,569.6 | 14,679.6 | 15,339.7 | 13,354.9 | |||||||||||||||||||
Net income (loss) | (542.9) | 790.1 | (229.0) | 2,270.1 | |||||||||||||||||||
Treasury shares purchased | (0.7) | (10.1) | (28.3) | (91.3) | |||||||||||||||||||
Cash dividends declared on common shares ($0.10, $0.10, $0.20, and $0.20 per share) | (58.4) | (58.4) | (116.8) | (116.8) | |||||||||||||||||||
Reinvested dividends on restricted stock units | (0.3) | (0.4) | (0.3) | (0.8) | |||||||||||||||||||
Other, net | 0.4 | 0.2 | 2.4 | (15.1) | |||||||||||||||||||
Balance, end of period | 14,967.7 | 15,401.0 | 14,967.7 | 15,401.0 | |||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Balance, beginning of period | (1,385.8) | 392.3 | 40.7 | 931.7 | |||||||||||||||||||
Other comprehensive income (loss) | (823.2) | 90.9 | (2,249.7) | (448.5) | |||||||||||||||||||
Balance, end of period | (2,209.0) | 483.2 | (2,209.0) | 483.2 | |||||||||||||||||||
Total shareholders’ equity | $ | 15,652.7 | $ | 18,675.6 | $ | 15,652.7 | $ | 18,675.6 |
Six Months Ended June 30, | 2022 | 2021 | |||||||||
(millions) | |||||||||||
Cash Flows From Operating Activities | |||||||||||
Net income (loss) | $ | (229.0) | $ | 2,270.1 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation | 149.6 | 129.4 | |||||||||
Amortization of intangible assets | 20.1 | 28.5 | |||||||||
Net amortization of fixed-income securities | 29.2 | 62.1 | |||||||||
Amortization of equity-based compensation | 43.7 | 42.7 | |||||||||
Net realized (gains) losses on securities | 1,623.0 | (1,047.1) | |||||||||
Net (gains) losses on disposition of property and equipment | 2.0 | 0.5 | |||||||||
Goodwill impairment | 224.8 | 0 | |||||||||
Changes in: | |||||||||||
Premiums receivable | (1,162.3) | (1,183.5) | |||||||||
Reinsurance recoverables | 19.3 | (237.3) | |||||||||
Prepaid reinsurance premiums | (6.7) | (244.6) | |||||||||
Deferred acquisition costs | (142.8) | (123.4) | |||||||||
Income taxes | (377.2) | (81.0) | |||||||||
Unearned premiums | 1,659.0 | 2,051.5 | |||||||||
Loss and loss adjustment expense reserves | 1,647.9 | 2,481.0 | |||||||||
Accounts payable, accrued expenses, and other liabilities | 436.5 | 717.8 | |||||||||
Other, net | (45.2) | 71.7 | |||||||||
Net cash provided by operating activities | 3,891.9 | 4,938.4 | |||||||||
Cash Flows From Investing Activities | |||||||||||
Purchases: | |||||||||||
Fixed maturities | (14,332.3) | (18,364.5) | |||||||||
Equity securities | (91.1) | (416.1) | |||||||||
Sales: | |||||||||||
Fixed maturities | 9,378.7 | 8,703.2 | |||||||||
Equity securities | 1,350.3 | 590.2 | |||||||||
Maturities, paydowns, calls, and other: | |||||||||||
Fixed maturities | 2,409.1 | 3,898.2 | |||||||||
Equity securities | 39.3 | 67.1 | |||||||||
Net (purchases) sales of short-term investments | (3,665.1) | 3,587.0 | |||||||||
Net unsettled security transactions | (143.4) | 316.6 | |||||||||
Acquisition of Protective Insurance Corporation, net of cash, cash equivalents, and restricted cash acquired | 0 | (313.2) | |||||||||
Purchases of property and equipment | (136.7) | (98.5) | |||||||||
Sales of property and equipment | 11.6 | 11.5 | |||||||||
Net cash used in investing activities | (5,179.6) | (2,018.5) | |||||||||
Cash Flows From Financing Activities | |||||||||||
Dividends paid to common shareholders | (117.0) | (2,753.0) | |||||||||
Dividends paid to preferred shareholders | (13.4) | (13.4) | |||||||||
Acquisition of treasury shares for restricted stock tax liabilities | (29.5) | (30.4) | |||||||||
Acquisition of treasury shares acquired in open market | 0 | (65.0) | |||||||||
Net proceeds from debt issuances | 1,486.0 | 0 | |||||||||
Payment of acquired company debt | 0 | (20.0) | |||||||||
Net cash provided by (used in) financing activities | 1,326.1 | (2,881.8) | |||||||||
Increase in cash, cash equivalents, restricted cash, and restricted cash equivalents | 38.4 | 38.1 | |||||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents – January 1 | 202.1 | 76.5 | |||||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents – June 30 | $ | 240.5 | $ | 114.6 |
Three Months | Six Months | ||||||||||||||||
Periods Ended June 30, | 2022 | 2021 | 2022 | 2021 | |||||||||||||
(millions) | |||||||||||||||||
Allowance for credit losses, beginning of period | $ | 276.2 | $ | 265.3 | $ | 280.4 | $ | 356.2 | |||||||||
Allowance acquired during period1 | 0 | 3.5 | 0 | 3.5 | |||||||||||||
Increase in allowance2 | 95.8 | 87.4 | 189.7 | 148.3 | |||||||||||||
Write-offs3 | (106.2) | (111.0) | (204.3) | (262.8) | |||||||||||||
Allowance for credit losses, end of period | $ | 265.8 | $ | 245.2 | $ | 265.8 | $ | 245.2 |
($ in millions) | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Net Holding Period Gains (Losses) | Fair Value | % of Total Fair Value | |||||||||||||||||||||||||||||
June 30, 2022 | |||||||||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||
U.S. government obligations | $ | 19,832.3 | $ | 3.7 | $ | (1,116.8) | $ | 0 | $ | 18,719.2 | 36.0 | % | |||||||||||||||||||||||
State and local government obligations | 2,281.9 | 0.6 | (147.1) | 0 | 2,135.4 | 4.1 | |||||||||||||||||||||||||||||
Foreign government obligations | 17.7 | 0 | (1.3) | 0 | 16.4 | 0.1 | |||||||||||||||||||||||||||||
Corporate debt securities | 10,869.6 | 1.6 | (655.0) | (48.4) | 10,167.8 | 19.6 | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | 826.5 | 0.5 | (10.7) | (17.0) | 799.3 | 1.5 | |||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 6,739.4 | 1.2 | (646.0) | 0 | 6,094.6 | 11.7 | |||||||||||||||||||||||||||||
Other asset-backed securities | 5,239.4 | 0.1 | (201.7) | (1.8) | 5,036.0 | 9.7 | |||||||||||||||||||||||||||||
Redeemable preferred stocks | 222.0 | 0 | (5.5) | (12.7) | 203.8 | 0.4 | |||||||||||||||||||||||||||||
Total fixed maturities | 46,028.8 | 7.7 | (2,784.1) | (79.9) | 43,172.5 | 83.1 | |||||||||||||||||||||||||||||
Short-term investments | 4,611.8 | 0 | 0 | 0 | 4,611.8 | 8.9 | |||||||||||||||||||||||||||||
Total available-for-sale securities | 50,640.6 | 7.7 | (2,784.1) | (79.9) | 47,784.3 | 92.0 | |||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||
Nonredeemable preferred stocks | 1,522.5 | 0 | 0 | (162.0) | 1,360.5 | 2.6 | |||||||||||||||||||||||||||||
Common equities | 783.6 | 0 | 0 | 2,001.1 | 2,784.7 | 5.4 | |||||||||||||||||||||||||||||
Total equity securities | 2,306.1 | 0 | 0 | 1,839.1 | 4,145.2 | 8.0 | |||||||||||||||||||||||||||||
Total portfolio1 | $ | 52,946.7 | $ | 7.7 | $ | (2,784.1) | $ | 1,759.2 | $ | 51,929.5 | 100.0 | % |
($ in millions) | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Net Holding Period Gains (Losses) | Fair Value | % of Total Fair Value | |||||||||||||||||||||||||||||
June 30, 2021 | |||||||||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||
U.S. government obligations | $ | 19,339.3 | $ | 171.3 | $ | (72.9) | $ | 0 | $ | 19,437.7 | 38.1 | % | |||||||||||||||||||||||
State and local government obligations | 2,379.1 | 64.7 | (3.3) | 0 | 2,440.5 | 4.8 | |||||||||||||||||||||||||||||
Foreign government obligations | 12.7 | 0 | 0 | 0 | 12.7 | 0.1 | |||||||||||||||||||||||||||||
Corporate debt securities | 10,314.8 | 372.1 | (9.9) | 1.2 | 10,678.2 | 20.9 | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | 666.9 | 4.6 | (1.1) | 0.9 | 671.3 | 1.3 | |||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 5,628.2 | 91.4 | (11.5) | 0 | 5,708.1 | 11.2 | |||||||||||||||||||||||||||||
Other asset-backed securities | 3,865.9 | 34.6 | (1.5) | 0 | 3,899.0 | 7.7 | |||||||||||||||||||||||||||||
Redeemable preferred stocks | 171.1 | 1.7 | (1.4) | 12.1 | 183.5 | 0.4 | |||||||||||||||||||||||||||||
Total fixed maturities | 42,378.0 | 740.4 | (101.6) | 14.2 | 43,031.0 | 84.5 | |||||||||||||||||||||||||||||
Short-term investments | 1,710.6 | 0 | 0 | 0 | 1,710.6 | 3.3 | |||||||||||||||||||||||||||||
Total available-for-sale securities | 44,088.6 | 740.4 | (101.6) | 14.2 | 44,741.6 | 87.8 | |||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||
Nonredeemable preferred stocks | 1,511.2 | 0 | 0 | 98.6 | 1,609.8 | 3.2 | |||||||||||||||||||||||||||||
Common equities | 1,238.4 | 0 | 0 | 3,353.0 | 4,591.4 | 9.0 | |||||||||||||||||||||||||||||
Total equity securities | 2,749.6 | 0 | 0 | 3,451.6 | 6,201.2 | 12.2 | |||||||||||||||||||||||||||||
Total portfolio1 | $ | 46,838.2 | $ | 740.4 | $ | (101.6) | $ | 3,465.8 | $ | 50,942.8 | 100.0 | % |
($ in millions) | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Net Holding Period Gains (Losses) | Fair Value | % of Total Fair Value | |||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||||||||
U.S. government obligations | $ | 18,586.1 | $ | 92.9 | $ | (190.8) | $ | 0 | $ | 18,488.2 | 35.9 | % | |||||||||||||||||||||||
State and local government obligations | 2,162.6 | 36.7 | (14.0) | 0 | 2,185.3 | 4.2 | |||||||||||||||||||||||||||||
Foreign government obligations | 17.9 | 0 | 0 | 0 | 17.9 | 0.1 | |||||||||||||||||||||||||||||
Corporate debt securities | 10,526.2 | 202.6 | (33.4) | (3.3) | 10,692.1 | 20.7 | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | 787.7 | 2.3 | (0.6) | 0.6 | 790.0 | 1.5 | |||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 6,561.0 | 38.9 | (64.3) | 0 | 6,535.6 | 12.7 | |||||||||||||||||||||||||||||
Other asset-backed securities | 4,981.8 | 13.3 | (12.4) | (0.4) | 4,982.3 | 9.7 | |||||||||||||||||||||||||||||
Redeemable preferred stocks | 170.9 | 0.7 | (0.5) | 10.6 | 181.7 | 0.4 | |||||||||||||||||||||||||||||
Total fixed maturities | 43,794.2 | 387.4 | (316.0) | 7.5 | 43,873.1 | 85.2 | |||||||||||||||||||||||||||||
Short-term investments | 942.6 | 0 | 0 | 0 | 942.6 | 1.8 | |||||||||||||||||||||||||||||
Total available-for-sale securities | 44,736.8 | 387.4 | (316.0) | 7.5 | 44,815.7 | 87.0 | |||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||
Nonredeemable preferred stocks | 1,571.8 | 0 | 0 | 68.1 | 1,639.9 | 3.2 | |||||||||||||||||||||||||||||
Common equities | 1,264.1 | 0 | 0 | 3,794.4 | 5,058.5 | 9.8 | |||||||||||||||||||||||||||||
Total equity securities | 2,835.9 | 0 | 0 | 3,862.5 | 6,698.4 | 13.0 | |||||||||||||||||||||||||||||
Total portfolio1 | $ | 47,572.7 | $ | 387.4 | $ | (316.0) | $ | 3,870.0 | $ | 51,514.1 | 100.0 | % |
June 30, | |||||||||||||||||
(millions) | 2022 | 2021 | December 31, 2021 | ||||||||||||||
Fixed Maturities: | |||||||||||||||||
Corporate debt securities | $ | 513.8 | $ | 296.7 | $ | 479.1 | |||||||||||
Residential mortgage-backed securities | 604.3 | 163.1 | 536.2 | ||||||||||||||
Other asset-backed securities | 62.3 | 66.9 | 89.2 | ||||||||||||||
Redeemable preferred stocks | 136.3 | 132.2 | 130.8 | ||||||||||||||
Total hybrid securities | $ | 1,316.7 | $ | 658.9 | $ | 1,235.3 |
(millions) | Cost | Fair Value | |||||||||
Less than one year | $ | 5,294.8 | $ | 5,210.9 | |||||||
One to five years | 27,925.6 | 26,532.2 | |||||||||
Five to ten years | 12,763.0 | 11,389.5 | |||||||||
Ten years or greater | 45.4 | 39.9 | |||||||||
Total | $ | 46,028.8 | $ | 43,172.5 |
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, 2022 | ||||||||||||||||||||||||||||||||
U.S. government obligations | 140 | $ | 17,907.2 | $ | (1,116.8) | 114 | $ | 15,254.3 | $ | (874.0) | 26 | $ | 2,652.9 | $ | (242.8) | |||||||||||||||||
State and local government obligations | 331 | 1,954.9 | (147.1) | 318 | 1,816.1 | (126.1) | 13 | 138.8 | (21.0) | |||||||||||||||||||||||
Foreign government obligations | 1 | 16.4 | (1.3) | 1 | 16.4 | (1.3) | 0 | 0 | 0 | |||||||||||||||||||||||
Corporate debt securities | 466 | 9,174.2 | (655.0) | 435 | 8,843.2 | (612.0) | 31 | 331.0 | (43.0) | |||||||||||||||||||||||
Residential mortgage-backed securities | 39 | 183.7 | (10.7) | 32 | 172.1 | (8.8) | 7 | 11.6 | (1.9) | |||||||||||||||||||||||
Commercial mortgage-backed securities | 254 | 6,058.4 | (646.0) | 234 | 5,624.1 | (569.8) | 20 | 434.3 | (76.2) | |||||||||||||||||||||||
Other asset-backed securities | 289 | 4,915.7 | (201.7) | 269 | 4,611.8 | (188.9) | 20 | 303.9 | (12.8) | |||||||||||||||||||||||
Redeemable preferred stocks | 5 | 67.5 | (5.5) | 4 | 56.7 | (3.8) | 1 | 10.8 | (1.7) | |||||||||||||||||||||||
Total fixed maturities | 1,525 | $ | 40,278.0 | $ | (2,784.1) | 1,407 | $ | 36,394.7 | $ | (2,384.7) | 118 | $ | 3,883.3 | $ | (399.4) |
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, 2021 | ||||||||||||||||||||||||||||||||
U.S. government obligations | 59 | $ | 10,629.4 | $ | (72.9) | 55 | $ | 10,162.4 | $ | (66.8) | 4 | $ | 467.0 | $ | (6.1) | |||||||||||||||||
State and local government obligations | 81 | 436.2 | (3.3) | 72 | 400.0 | (2.6) | 9 | 36.2 | (0.7) | |||||||||||||||||||||||
Corporate debt securities | 292 | 1,142.5 | (9.9) | 288 | 1,065.2 | (9.5) | 4 | 77.3 | (0.4) | |||||||||||||||||||||||
Residential mortgage-backed securities | 77 | 192.2 | (1.1) | 64 | 172.4 | (0.7) | 13 | 19.8 | (0.4) | |||||||||||||||||||||||
Commercial mortgage-backed securities | 68 | 1,272.0 | (11.5) | 61 | 1,006.9 | (10.5) | 7 | 265.1 | (1.0) | |||||||||||||||||||||||
Other asset-backed securities | 119 | 1,073.6 | (1.5) | 113 | 1,043.7 | (1.3) | 6 | 29.9 | (0.2) | |||||||||||||||||||||||
Redeemable preferred stocks | 1 | 11.1 | (1.4) | 0 | 0 | 0 | 1 | 11.1 | (1.4) | |||||||||||||||||||||||
Total fixed maturities | 697 | $ | 14,757.0 | $ | (101.6) | 653 | $ | 13,850.6 | $ | (91.4) | 44 | $ | 906.4 | $ | (10.2) |
Total No. of Sec. | Total Fair Value | Gross Unrealized Losses | Less than 12 Months | 12 Months or Greater | ||||||||||||||||||||||||||||
($ in millions) | No. of Sec. | Fair Value | Unrealized Losses | No. of Sec. | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||
U.S. government obligations | 92 | $ | 14,745.8 | $ | (190.8) | 85 | $ | 13,790.8 | $ | (158.5) | 7 | $ | 955.0 | $ | (32.3) | |||||||||||||||||
State and local government obligations | 127 | 954.2 | (14.0) | 122 | 927.3 | (13.1) | 5 | 26.9 | (0.9) | |||||||||||||||||||||||
Corporate debt securities | 220 | 3,496.6 | (33.4) | 219 | 3,491.7 | (33.3) | 1 | 4.9 | (0.1) | |||||||||||||||||||||||
Residential mortgage-backed securities | 20 | 138.6 | (0.6) | 14 | 135.4 | (0.5) | 6 | 3.2 | (0.1) | |||||||||||||||||||||||
Commercial mortgage-backed securities | 168 | 4,315.4 | (64.3) | 165 | 4,295.0 | (63.9) | 3 | 20.4 | (0.4) | |||||||||||||||||||||||
Other asset-backed securities | 178 | 3,204.7 | (12.4) | 176 | 3,200.6 | (12.3) | 2 | 4.1 | (0.1) | |||||||||||||||||||||||
Redeemable preferred stocks | 1 | 12.0 | (0.5) | 0 | 0 | 0 | 1 | 12.0 | (0.5) | |||||||||||||||||||||||
Total fixed maturities | 806 | $ | 26,867.3 | $ | (316.0) | 781 | $ | 25,840.8 | $ | (281.6) | 25 | $ | 1,026.5 | $ | (34.4) |
Three Months | Six Months | ||||||||||||||||||||||
(millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Gross realized gains on security sales | |||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||
U.S. government obligations | $ | 1.3 | $ | 11.3 | $ | 4.6 | $ | 77.9 | |||||||||||||||
State and local government obligations | 0 | 14.1 | 0 | 44.3 | |||||||||||||||||||
Corporate and other debt securities | 2.0 | 40.1 | 6.5 | 60.8 | |||||||||||||||||||
Residential mortgage-backed securities | 0.6 | 0.3 | 0.7 | 0.3 | |||||||||||||||||||
Commercial mortgage-backed securities | 0 | 9.5 | 0 | 39.3 | |||||||||||||||||||
Other asset-backed securities | 0 | 0 | 0.1 | 0.7 | |||||||||||||||||||
Redeemable preferred stocks | 0 | 1.5 | 0 | 1.5 | |||||||||||||||||||
Total available-for-sale securities | 3.9 | 76.8 | 11.9 | 224.8 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||
Nonredeemable preferred stocks | 0.2 | 6.4 | 17.5 | 23.7 | |||||||||||||||||||
Common equities | 830.6 | 345.0 | 831.1 | 346.1 | |||||||||||||||||||
Total equity securities | 830.8 | 351.4 | 848.6 | 369.8 | |||||||||||||||||||
Subtotal gross realized gains on security sales | 834.7 | 428.2 | 860.5 | 594.6 | |||||||||||||||||||
Gross realized losses on security sales | |||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||
U.S. government obligations | (164.3) | (6.9) | (233.5) | (26.5) | |||||||||||||||||||
State and local government obligations | 0 | (2.8) | (1.0) | (3.0) | |||||||||||||||||||
Corporate and other debt securities | (30.1) | (3.3) | (37.8) | (5.4) | |||||||||||||||||||
Commercial mortgage-backed securities | (13.8) | (0.5) | (13.8) | (1.1) | |||||||||||||||||||
Other asset-backed securities | (2.0) | (0.3) | (2.1) | (0.4) | |||||||||||||||||||
Short-term investments | (0.3) | 0 | (0.3) | 0 | |||||||||||||||||||
Total available-for-sale securities | (210.5) | (13.8) | (288.5) | (36.4) | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||
Nonredeemable preferred stocks | (0.2) | (0.4) | (1.9) | (0.4) | |||||||||||||||||||
Common equities | (77.4) | (3.9) | (78.0) | (3.9) | |||||||||||||||||||
Total equity securities | (77.6) | (4.3) | (79.9) | (4.3) | |||||||||||||||||||
Subtotal gross realized losses on security sales | (288.1) | (18.1) | (368.4) | (40.7) | |||||||||||||||||||
Net realized gains (losses) on security sales | |||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||
U.S. government obligations | (163.0) | 4.4 | (228.9) | 51.4 | |||||||||||||||||||
State and local government obligations | 0 | 11.3 | (1.0) | 41.3 | |||||||||||||||||||
Corporate and other debt securities | (28.1) | 36.8 | (31.3) | 55.4 | |||||||||||||||||||
Residential mortgage-backed securities | 0.6 | 0.3 | 0.7 | 0.3 | |||||||||||||||||||
Commercial mortgage-backed securities | (13.8) | 9.0 | (13.8) | 38.2 | |||||||||||||||||||
Other asset-backed securities | (2.0) | (0.3) | (2.0) | 0.3 | |||||||||||||||||||
Redeemable preferred stocks | 0 | 1.5 | 0 | 1.5 | |||||||||||||||||||
Short-term investments | (0.3) | 0 | (0.3) | 0 | |||||||||||||||||||
Total available-for-sale securities | (206.6) | 63.0 | (276.6) | 188.4 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||
Nonredeemable preferred stocks | 0 | 6.0 | 15.6 | 23.3 | |||||||||||||||||||
Common equities | 753.2 | 341.1 | 753.1 | 342.2 | |||||||||||||||||||
Total equity securities | 753.2 | 347.1 | 768.7 | 365.5 | |||||||||||||||||||
Subtotal net realized gains (losses) on security sales | 546.6 | 410.1 | 492.1 | 553.9 | |||||||||||||||||||
Net holding period gains (losses) | |||||||||||||||||||||||
Hybrid securities | (48.4) | 9.9 | (87.4) | (1.0) | |||||||||||||||||||
Equity securities | (1,673.8) | 44.3 | (2,023.4) | 496.7 | |||||||||||||||||||
Subtotal net holding period gains (losses) | (1,722.2) | 54.2 | (2,110.8) | 495.7 | |||||||||||||||||||
Other asset impairment | (2.1) | (2.5) | (4.3) | (2.5) | |||||||||||||||||||
Total net realized gains (losses) on securities | $ | (1,177.7) | $ | 461.8 | $ | (1,623.0) | $ | 1,047.1 |
Three Months | Six Months | ||||||||||||||||
(millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||
Total net gains (losses) recognized during the period on equity securities | $ | (920.6) | $ | 391.4 | $ | (1,254.7) | $ | 862.2 | |||||||||
Less: Net gains (losses) recognized on equity securities sold during the period | 753.2 | 347.1 | 768.7 | 365.5 | |||||||||||||
Net holding period gains (losses) recognized during the period on equity securities held at period end | $ | (1,673.8) | $ | 44.3 | $ | (2,023.4) | $ | 496.7 |
Three Months | Six Months | ||||||||||||||||
(millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||
Available-for-sale securities: | |||||||||||||||||
Fixed maturities: | |||||||||||||||||
U.S. government obligations | $ | 67.9 | $ | 37.4 | $ | 119.3 | $ | 67.8 | |||||||||
State and local government obligations | 10.3 | 11.5 | 19.5 | 24.9 | |||||||||||||
Foreign government obligations | 0 | 0 | 0.1 | 0 | |||||||||||||
Corporate debt securities | 75.5 | 73.2 | 143.6 | 158.4 | |||||||||||||
Residential mortgage-backed securities | 9.6 | 2.8 | 14.4 | 6.2 | |||||||||||||
Commercial mortgage-backed securities | 46.5 | 34.4 | 89.8 | 70.2 | |||||||||||||
Other asset-backed securities | 39.3 | 15.1 | 64.4 | 31.0 | |||||||||||||
Redeemable preferred stocks | 3.0 | 2.3 | 5.5 | 4.8 | |||||||||||||
Total fixed maturities | 252.1 | 176.7 | 456.6 | 363.3 | |||||||||||||
Short-term investments | 4.4 | 0.7 | 4.8 | 2.2 | |||||||||||||
Total available-for-sale securities | 256.5 | 177.4 | 461.4 | 365.5 | |||||||||||||
Equity securities: | |||||||||||||||||
Nonredeemable preferred stocks | 18.1 | 17.3 | 36.3 | 35.2 | |||||||||||||
Common equities | 17.8 | 16.0 | 36.9 | 30.2 | |||||||||||||
Total equity securities | 35.9 | 33.3 | 73.2 | 65.4 | |||||||||||||
Investment income | 292.4 | 210.7 | 534.6 | 430.9 | |||||||||||||
Investment expenses | (5.9) | (6.3) | (11.6) | (11.9) | |||||||||||||
Net investment income | $ | 286.5 | $ | 204.4 | $ | 523.0 | $ | 419.0 |
Fair Value | |||||||||||||||||||||||||||||
(millions) | Level 1 | Level 2 | Level 3 | Total | Cost | ||||||||||||||||||||||||
June 30, 2022 | |||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||
U.S. government obligations | $ | 18,719.2 | $ | 0 | $ | 0 | $ | 18,719.2 | $ | 19,832.3 | |||||||||||||||||||
State and local government obligations | 0 | 2,135.4 | 0 | 2,135.4 | 2,281.9 | ||||||||||||||||||||||||
Foreign government obligations | 0 | 16.4 | 0 | 16.4 | 17.7 | ||||||||||||||||||||||||
Corporate debt securities | 0 | 10,167.8 | 0 | 10,167.8 | 10,869.6 | ||||||||||||||||||||||||
Subtotal | 18,719.2 | 12,319.6 | 0 | 31,038.8 | 33,001.5 | ||||||||||||||||||||||||
Asset-backed securities: | |||||||||||||||||||||||||||||
Residential mortgage-backed | 0 | 799.3 | 0 | 799.3 | 826.5 | ||||||||||||||||||||||||
Commercial mortgage-backed | 0 | 6,094.6 | 0 | 6,094.6 | 6,739.4 | ||||||||||||||||||||||||
Other asset-backed | 0 | 5,036.0 | 0 | 5,036.0 | 5,239.4 | ||||||||||||||||||||||||
Subtotal asset-backed securities | 0 | 11,929.9 | 0 | 11,929.9 | 12,805.3 | ||||||||||||||||||||||||
Redeemable preferred stocks: | |||||||||||||||||||||||||||||
Financials | 0 | 58.7 | 0 | 58.7 | 62.5 | ||||||||||||||||||||||||
Utilities | 0 | 8.8 | 0 | 8.8 | 10.5 | ||||||||||||||||||||||||
Industrials | 9.9 | 126.4 | 0 | 136.3 | 149.0 | ||||||||||||||||||||||||
Subtotal redeemable preferred stocks | 9.9 | 193.9 | 0 | 203.8 | 222.0 | ||||||||||||||||||||||||
Total fixed maturities | 18,729.1 | 24,443.4 | 0 | 43,172.5 | 46,028.8 | ||||||||||||||||||||||||
Short-term investments | 4,549.8 | 62.0 | 0 | 4,611.8 | 4,611.8 | ||||||||||||||||||||||||
Total available-for-sale securities | 23,278.9 | 24,505.4 | 0 | 47,784.3 | 50,640.6 | ||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||
Nonredeemable preferred stocks: | |||||||||||||||||||||||||||||
Financials | 87.8 | 1,099.7 | 64.9 | 1,252.4 | 1,402.5 | ||||||||||||||||||||||||
Utilities | 0 | 67.3 | 0 | 67.3 | 79.9 | ||||||||||||||||||||||||
Industrials | 0 | 23.8 | 17.0 | 40.8 | 40.1 | ||||||||||||||||||||||||
Subtotal nonredeemable preferred stocks | 87.8 | 1,190.8 | 81.9 | 1,360.5 | 1,522.5 | ||||||||||||||||||||||||
Common equities: | |||||||||||||||||||||||||||||
Common stocks | 2,716.8 | 49.4 | 0 | 2,766.2 | 765.1 | ||||||||||||||||||||||||
Other risk investments | 0 | 0 | 18.5 | 18.5 | 18.5 | ||||||||||||||||||||||||
Subtotal common equities | 2,716.8 | 49.4 | 18.5 | 2,784.7 | 783.6 | ||||||||||||||||||||||||
Total equity securities | 2,804.6 | 1,240.2 | 100.4 | 4,145.2 | 2,306.1 | ||||||||||||||||||||||||
Total portfolio | $ | 26,083.5 | $ | 25,745.6 | $ | 100.4 | $ | 51,929.5 | $ | 52,946.7 | |||||||||||||||||||
Debt | $ | 0 | $ | 6,028.9 | $ | 0 | $ | 6,028.9 | $ | 6,386.5 |
Fair Value | |||||||||||||||||||||||||||||
(millions) | Level 1 | Level 2 | Level 3 | Total | Cost | ||||||||||||||||||||||||
June 30, 2021 | |||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||
U.S. government obligations | $ | 19,437.7 | $ | 0 | $ | 0 | $ | 19,437.7 | $ | 19,339.3 | |||||||||||||||||||
State and local government obligations | 0 | 2,440.5 | 0 | 2,440.5 | 2,379.1 | ||||||||||||||||||||||||
Foreign government obligations | 0 | 12.7 | 0 | 12.7 | 12.7 | ||||||||||||||||||||||||
Corporate debt securities | 0 | 10,678.2 | 0 | 10,678.2 | 10,314.8 | ||||||||||||||||||||||||
Subtotal | 19,437.7 | 13,131.4 | 0 | 32,569.1 | 32,045.9 | ||||||||||||||||||||||||
Asset-backed securities: | |||||||||||||||||||||||||||||
Residential mortgage-backed | 0 | 671.3 | 0 | 671.3 | 666.9 | ||||||||||||||||||||||||
Commercial mortgage-backed | 0 | 5,708.1 | 0 | 5,708.1 | 5,628.2 | ||||||||||||||||||||||||
Other asset-backed | 0 | 3,899.0 | 0 | 3,899.0 | 3,865.9 | ||||||||||||||||||||||||
Subtotal asset-backed securities | 0 | 10,278.4 | 0 | 10,278.4 | 10,161.0 | ||||||||||||||||||||||||
Redeemable preferred stocks: | |||||||||||||||||||||||||||||
Financials | 0 | 51.3 | 0 | 51.3 | 50.9 | ||||||||||||||||||||||||
Utilities | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Industrials | 10.8 | 121.4 | 0 | 132.2 | 120.2 | ||||||||||||||||||||||||
Subtotal redeemable preferred stocks | 10.8 | 172.7 | 0 | 183.5 | 171.1 | ||||||||||||||||||||||||
Total fixed maturities | 19,448.5 | 23,582.5 | 0 | 43,031.0 | 42,378.0 | ||||||||||||||||||||||||
Short-term investments | 1,679.8 | 30.8 | 0 | 1,710.6 | 1,710.6 | ||||||||||||||||||||||||
Total available-for-sale securities | 21,128.3 | 23,613.3 | 0 | 44,741.6 | 44,088.6 | ||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||
Nonredeemable preferred stocks: | |||||||||||||||||||||||||||||
Financials | 98.4 | 1,332.5 | 76.4 | 1,507.3 | 1,431.2 | ||||||||||||||||||||||||
Utilities | 0 | 42.5 | 0 | 42.5 | 39.9 | ||||||||||||||||||||||||
Industrials | 0 | 25.6 | 34.4 | 60.0 | 40.1 | ||||||||||||||||||||||||
Subtotal nonredeemable preferred stocks | 98.4 | 1,400.6 | 110.8 | 1,609.8 | 1,511.2 | ||||||||||||||||||||||||
Common equities: | |||||||||||||||||||||||||||||
Common stocks | 4,527.3 | 0 | 52.5 | 4,579.8 | 1,226.8 | ||||||||||||||||||||||||
Other risk investments | 0 | 0 | 11.6 | 11.6 | 11.6 | ||||||||||||||||||||||||
Subtotal common equities | 4,527.3 | 0 | 64.1 | 4,591.4 | 1,238.4 | ||||||||||||||||||||||||
Total equity securities | 4,625.7 | 1,400.6 | 174.9 | 6,201.2 | 2,749.6 | ||||||||||||||||||||||||
Total portfolio | $ | 25,754.0 | $ | 25,013.9 | $ | 174.9 | $ | 50,942.8 | $ | 46,838.2 | |||||||||||||||||||
Debt | $ | 0 | $ | 6,446.7 | $ | 0 | $ | 6,446.7 | $ | 5,397.5 |
Fair Value | |||||||||||||||||||||||||||||
(millions) | Level 1 | Level 2 | Level 3 | Total | Cost | ||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||
U.S. government obligations | $ | 18,488.2 | $ | 0 | $ | 0 | $ | 18,488.2 | $ | 18,586.1 | |||||||||||||||||||
State and local government obligations | 0 | 2,185.3 | 0 | 2,185.3 | 2,162.6 | ||||||||||||||||||||||||
Foreign government obligations | 0 | 17.9 | 0 | 17.9 | 17.9 | ||||||||||||||||||||||||
Corporate debt securities | 0 | 10,692.1 | 0 | 10,692.1 | 10,526.2 | ||||||||||||||||||||||||
Subtotal | 18,488.2 | 12,895.3 | 0 | 31,383.5 | 31,292.8 | ||||||||||||||||||||||||
Asset-backed securities: | |||||||||||||||||||||||||||||
Residential mortgage-backed | 0 | 790.0 | 0 | 790.0 | 787.7 | ||||||||||||||||||||||||
Commercial mortgage-backed | 0 | 6,535.6 | 0 | 6,535.6 | 6,561.0 | ||||||||||||||||||||||||
Other asset-backed | 0 | 4,982.3 | 0 | 4,982.3 | 4,981.8 | ||||||||||||||||||||||||
Subtotal asset-backed securities | 0 | 12,307.9 | 0 | 12,307.9 | 12,330.5 | ||||||||||||||||||||||||
Redeemable preferred stocks: | |||||||||||||||||||||||||||||
Financials | 0 | 50.9 | 0 | 50.9 | 50.7 | ||||||||||||||||||||||||
Utilities | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Industrials | 10.7 | 120.1 | 0 | 130.8 | 120.2 | ||||||||||||||||||||||||
Subtotal redeemable preferred stocks | 10.7 | 171.0 | 0 | 181.7 | 170.9 | ||||||||||||||||||||||||
Total fixed maturities | 18,498.9 | 25,374.2 | 0 | 43,873.1 | 43,794.2 | ||||||||||||||||||||||||
Short-term investments | 942.4 | 0.2 | 0 | 942.6 | 942.6 | ||||||||||||||||||||||||
Total available-for-sale securities | 19,441.3 | 25,374.4 | 0 | 44,815.7 | 44,736.8 | ||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||
Nonredeemable preferred stocks: | |||||||||||||||||||||||||||||
Financials | 115.3 | 1,305.7 | 76.4 | 1,497.4 | 1,451.7 | ||||||||||||||||||||||||
Utilities | 0 | 82.9 | 0 | 82.9 | 80.0 | ||||||||||||||||||||||||
Industrials | 0 | 25.2 | 34.4 | 59.6 | 40.1 | ||||||||||||||||||||||||
Subtotal nonredeemable preferred stocks | 115.3 | 1,413.8 | 110.8 | 1,639.9 | 1,571.8 | ||||||||||||||||||||||||
Common equities: | |||||||||||||||||||||||||||||
Common stocks | 4,991.6 | 50.0 | 0 | 5,041.6 | 1,247.2 | ||||||||||||||||||||||||
Other risk investments | 0 | 0 | 16.9 | 16.9 | 16.9 | ||||||||||||||||||||||||
Subtotal common equities | 4,991.6 | 50.0 | 16.9 | 5,058.5 | 1,264.1 | ||||||||||||||||||||||||
Total equity securities | 5,106.9 | 1,463.8 | 127.7 | 6,698.4 | 2,835.9 | ||||||||||||||||||||||||
Total portfolio | $ | 24,548.2 | $ | 26,838.2 | $ | 127.7 | $ | 51,514.1 | $ | 47,572.7 | |||||||||||||||||||
Debt | $ | 0 | $ | 5,857.4 | $ | 0 | $ | 5,857.4 | $ | 4,898.8 |
Level 3 Fair Value | ||||||||||||||||||||||||||
(millions) | Fair Value at March 31, 2022 | Calls/ Maturities/ Paydowns/Other | Purchases | Sales | Net Realized (Gain)/Loss on Sales | Change in Valuation | Net Transfers In (Out) | Fair Value at June 30, 2022 | ||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||
Nonredeemable preferred stocks: | ||||||||||||||||||||||||||
Financials | $ | 61.4 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 3.5 | $ | 0 | $ | 64.9 | ||||||||||
Industrials | 33.9 | 0 | 0 | 0 | 0 | (16.9) | 0 | 17.0 | ||||||||||||||||||
Common equities: | ||||||||||||||||||||||||||
Other risk investments | 20.1 | (1.6) | 0 | 0 | 0 | 0 | 0 | 18.5 | ||||||||||||||||||
Total Level 3 securities | $ | 115.4 | $ | (1.6) | $ | 0 | $ | 0 | $ | 0 | $ | (13.4) | $ | 0 | $ | 100.4 | ||||||||||
Level 3 Fair Value | ||||||||||||||||||||||||||
(millions) | Fair Value at March 31, 2021 | Calls/ Maturities/ Paydowns/Other | Purchases | Sales | Net Realized (Gain)/Loss on Sales | Change in Valuation | Net Transfers In (Out) | Fair Value at June 30, 2021 | ||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||
Nonredeemable preferred stocks: | ||||||||||||||||||||||||||
Financials | $ | 10.0 | $ | 0 | $ | 60.2 | $ | 0 | $ | 0 | $ | 6.2 | $ | 0 | $ | 76.4 | ||||||||||
Industrials | 16.6 | 0 | 5.0 | (5.0) | (4.5) | 22.3 | 0 | 34.4 | ||||||||||||||||||
Common equities: | ||||||||||||||||||||||||||
Common stocks | 25.0 | 0 | 0 | 0 | 0 | 27.5 | 0 | 52.5 | ||||||||||||||||||
Other risk investments | 3.2 | 8.4 | 0 | 0 | 0 | 0 | 0 | 11.6 | ||||||||||||||||||
Total Level 3 securities | $ | 54.8 | $ | 8.4 | $ | 65.2 | $ | (5.0) | $ | (4.5) | $ | 56.0 | $ | 0 | $ | 174.9 | ||||||||||
Level 3 Fair Value | ||||||||||||||||||||||||||
(millions) | Fair Value at Dec. 31, 2021 | Calls/ Maturities/ Paydowns/Other | Purchases | Sales | Net Realized (Gain)/Loss on Sales | Change in Valuation | Net Transfers In (Out) | Fair Value at June 30, 2022 | ||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||
Nonredeemable preferred stocks: | ||||||||||||||||||||||||||
Financials | $ | 76.4 | $ | 0 | $ | 0 | $ | (15.0) | $ | (17.2) | $ | 20.7 | $ | 0 | $ | 64.9 | ||||||||||
Industrials | 34.4 | (0.5) | 0 | 0 | 0 | (16.9) | 0 | 17.0 | ||||||||||||||||||
Common equities: | ||||||||||||||||||||||||||
Other risk investments | 16.9 | 1.6 | 0 | 0 | 0 | 0 | 0 | 18.5 | ||||||||||||||||||
Total Level 3 securities | $ | 127.7 | $ | 1.1 | $ | 0 | $ | (15.0) | $ | (17.2) | $ | 3.8 | $ | 0 | $ | 100.4 | ||||||||||
Level 3 Fair Value | ||||||||||||||||||||||||||
(millions) | Fair Value at Dec. 31, 2020 | Calls/ Maturities/ Paydowns/Other | Purchases | Sales | Net Realized (Gain)/Loss on Sales | Change in Valuation | Net Transfers In (Out) | Fair Value at June 30, 2021 | ||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||
Nonredeemable preferred stocks: | ||||||||||||||||||||||||||
Financials | $ | 10.0 | $ | 0 | $ | 60.2 | $ | 0 | $ | 0 | $ | 6.2 | $ | 0 | $ | 76.4 | ||||||||||
Industrials | 16.7 | 0 | 5.0 | (5.0) | (4.5) | 22.2 | 0 | 34.4 | ||||||||||||||||||
Common equities: | ||||||||||||||||||||||||||
Common stocks | 25.0 | 0 | 0 | 0 | 0 | 27.5 | 0 | 52.5 | ||||||||||||||||||
Other risk investments | 3.1 | 8.5 | 0 | 0 | 0 | 0 | 0 | 11.6 | ||||||||||||||||||
Total Level 3 securities | $ | 54.8 | $ | 8.5 | $ | 65.2 | $ | (5.0) | $ | (4.5) | $ | 55.9 | $ | 0 | $ | 174.9 | ||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||
($ in millions) | Fair Value at June 30, 2022 | Valuation Technique | Unobservable Input | Range of Input Values Increase (Decrease) | Weighted Average Increase (Decrease) | ||||||||||||
Equity securities: | |||||||||||||||||
Nonredeemable preferred stocks | $ | 81.9 | Market comparables | Weighted average market capitalization price change % | (47.3)% to (2.2)% | (13.3) | % | ||||||||||
Subtotal Level 3 securities | 81.9 | ||||||||||||||||
Pricing exemption securities | 18.5 | ||||||||||||||||
Total Level 3 securities | $ | 100.4 |
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||
($ in millions) | Fair Value at June 30, 2021 | Valuation Technique | Unobservable Input | Range of Input Values Increase (Decrease) | Weighted Average Increase (Decrease) | ||||||||||||
Equity securities: | |||||||||||||||||
Nonredeemable preferred stocks | $ | 110.8 | Market comparables | Weighted average market capitalization price change % | (8.0)% to 9.9% | 4.2 | % | ||||||||||
Common stocks | 52.5 | Market comparables | Weighted average market capitalization price change % | (12.1)% to 24.5% | 12.1 | % | |||||||||||
Subtotal Level 3 securities | 163.3 | ||||||||||||||||
Pricing exemption securities | 11.6 | ||||||||||||||||
Total Level 3 securities | $ | 174.9 |
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||
($ in millions) | Fair Value at Dec. 31, 2021 | Valuation Technique | Unobservable Input | Range of Input Values Increase (Decrease) | Weighted Average Increase (Decrease) | ||||||||||||
Equity securities: | |||||||||||||||||
Nonredeemable preferred stocks | $ | 110.8 | Market comparables | Weighted average market capitalization price change % | (20.2)% to (2.3)% | (7.7)% | |||||||||||
Subtotal Level 3 securities | 110.8 | ||||||||||||||||
Pricing exemption securities | 16.9 | ||||||||||||||||
Total Level 3 securities | $ | 127.7 |
June 30, 2022 | June 30, 2021 | December 31, 2021 | |||||||||||||||||||||||||||||||||
(millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||||||||
3.75% Senior Notes due 2021 (issued: $500.0, August 2011) | $ | 0 | $ | 0 | $ | 499.9 | $ | 502.5 | $ | 0 | $ | 0 | |||||||||||||||||||||||
2.45% Senior Notes due 2027 (issued: $500.0, August 2016) | 497.9 | 471.3 | 497.5 | 529.9 | 497.7 | 517.9 | |||||||||||||||||||||||||||||
2.50% Senior Notes due 2027 (issued: $500.0, March 2022) | 497.2 | 472.6 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||
6 5/8% Senior Notes due 2029 (issued: $300.0, March 1999) | 297.3 | 340.6 | 297.0 | 396.1 | 297.2 | 388.2 | |||||||||||||||||||||||||||||
4.00% Senior Notes due 2029 (issued: $550.0, October 2018) | 546.2 | 543.3 | 545.7 | 631.5 | 545.9 | 621.0 | |||||||||||||||||||||||||||||
3.20% Senior Notes due 2030 (issued: $500.0, March 2020) | 496.7 | 463.0 | 496.3 | 549.0 | 496.5 | 536.3 | |||||||||||||||||||||||||||||
3.00% Senior Notes due 2032 (issued: $500.0, March 2022) | 495.7 | 448.3 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||
6.25% Senior Notes due 2032 (issued: $400.0, November 2002) | 396.3 | 459.2 | 396.1 | 553.7 | 396.2 | 547.9 | |||||||||||||||||||||||||||||
4.35% Senior Notes due 2044 (issued: $350.0, April 2014) | 346.9 | 324.6 | 346.8 | 434.8 | 346.8 | 428.4 | |||||||||||||||||||||||||||||
3.70% Senior Notes due 2045 (issued: $400.0, January 2015) | 395.7 | 332.4 | 395.6 | 458.1 | 395.6 | 447.1 | |||||||||||||||||||||||||||||
4.125% Senior Notes due 2047 (issued: $850.0, April 2017) | 842.0 | 769.3 | 841.8 | 1,041.4 | 841.9 | 1,029.3 | |||||||||||||||||||||||||||||
4.20% Senior Notes due 2048 (issued: $600.0, March 2018) | 590.3 | 550.5 | 590.1 | 747.0 | 590.2 | 741.3 | |||||||||||||||||||||||||||||
3.95% Senior Notes due 2050 (issued: $500.0, March 2020) | 490.9 | 437.8 | 490.7 | 602.7 | 490.8 | 600.0 | |||||||||||||||||||||||||||||
3.70% Senior Notes due 2052 (issued: $500.0, March 2022) | 493.4 | 416.0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||
Total | $ | 6,386.5 | $ | 6,028.9 | $ | 5,397.5 | $ | 6,446.7 | $ | 4,898.8 | $ | 5,857.4 |
June 30, | |||||||||||
(millions) | 2022 | 2021 | |||||||||
Balance at January 1 | $ | 26,164.1 | $ | 20,265.8 | |||||||
Less reinsurance recoverables on unpaid losses | 4,733.6 | 3,798.2 | |||||||||
Net balance at January 1 | 21,430.5 | 16,467.6 | |||||||||
Net loss and loss adjustment expense reserves acquired1 | 0 | 732.5 | |||||||||
Total beginning reserves | 21,430.5 | 17,200.1 | |||||||||
Incurred related to: | |||||||||||
Current year | 18,134.6 | 15,319.9 | |||||||||
Prior years | 144.9 | 197.0 | |||||||||
Total incurred | 18,279.5 | 15,516.9 | |||||||||
Paid related to: | |||||||||||
Current year | 9,298.3 | 7,849.6 | |||||||||
Prior years | 7,284.3 | 5,436.7 | |||||||||
Total paid | 16,582.6 | 13,286.3 | |||||||||
Net balance at June 30 | 23,127.4 | 19,430.7 | |||||||||
Plus reinsurance recoverables on unpaid losses | 4,684.6 | 4,464.9 | |||||||||
Balance at June 30 | $ | 27,812.0 | $ | 23,895.6 |
Six Months Ended June 30, | |||||||||||
(millions) | 2022 | 2021 | |||||||||
Common share dividends1 | $ | 58.5 | $ | 58.5 | |||||||
Operating lease liabilities2 | 22.5 | 55.9 |
Six Months Ended June 30, | |||||||||||
(millions) | 2022 | 2021 | |||||||||
Income taxes | $ | 363.2 | $ | 574.1 | |||||||
Interest | 102.6 | 112.0 | |||||||||
Operating lease liabilities | 41.8 | 44.8 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
(millions) | Revenues | Pretax Profit (Loss) | Revenues | Pretax Profit (Loss) | Revenues | Pretax Profit (Loss) | Revenues | Pretax Profit (Loss) | |||||||||||||||||||||||||||||||||||||||
Personal Lines | |||||||||||||||||||||||||||||||||||||||||||||||
Agency | $ | 4,366.5 | $ | 260.3 | $ | 4,220.3 | $ | 207.5 | $ | 8,689.8 | $ | 548.9 | $ | 8,318.5 | $ | 755.0 | |||||||||||||||||||||||||||||||
Direct | 4,905.9 | 198.4 | 4,633.9 | 128.4 | 9,699.5 | 348.8 | 9,065.6 | 543.0 | |||||||||||||||||||||||||||||||||||||||
Total Personal Lines1 | 9,272.4 | 458.7 | 8,854.2 | 335.9 | 18,389.3 | 897.7 | 17,384.1 | 1,298.0 | |||||||||||||||||||||||||||||||||||||||
Commercial Lines | 2,304.4 | 243.0 | 1,621.8 | 130.1 | 4,431.6 | 445.4 | 3,039.6 | 358.6 | |||||||||||||||||||||||||||||||||||||||
Property2 | 570.5 | (156.9) | 502.3 | (83.3) | 1,128.6 | (148.6) | 974.8 | (154.0) | |||||||||||||||||||||||||||||||||||||||
Other indemnity3 | 0.6 | (6.3) | 4.0 | 0.1 | 1.3 | (7.2) | 4.0 | 0.1 | |||||||||||||||||||||||||||||||||||||||
Total underwriting operations | 12,147.9 | 538.5 | 10,982.3 | 382.8 | 23,950.8 | 1,187.3 | 21,402.5 | 1,502.7 | |||||||||||||||||||||||||||||||||||||||
Fees and other revenues4 | 176.5 | NA | 176.2 | NA | 350.5 | NA | 341.9 | NA | |||||||||||||||||||||||||||||||||||||||
Service businesses | 80.1 | 4.6 | 74.5 | 6.6 | 147.8 | 9.1 | 128.3 | 11.1 | |||||||||||||||||||||||||||||||||||||||
Investments5 | (885.3) | (891.2) | 672.5 | 666.2 | (1,088.4) | (1,100.0) | 1,478.0 | 1,466.1 | |||||||||||||||||||||||||||||||||||||||
Interest expense | NA | (63.0) | NA | (56.4) | NA | (117.3) | NA | (112.8) | |||||||||||||||||||||||||||||||||||||||
Property - Goodwill impairment2 | NA | (224.8) | NA | 0 | NA | (224.8) | NA | 0 | |||||||||||||||||||||||||||||||||||||||
Consolidated total | $ | 11,519.2 | $ | (635.9) | $ | 11,905.5 | $ | 999.2 | $ | 23,360.7 | $ | (245.7) | $ | 23,350.7 | $ | 2,867.1 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Under-writing Margin | Combined Ratio | Under-writing Margin | Combined Ratio | Under-writing Margin | Combined Ratio | Under-writing Margin | Combined Ratio | ||||||||||||||||||||||||||||||||||||||||
Personal Lines | |||||||||||||||||||||||||||||||||||||||||||||||
Agency | 6.0 | % | 94.0 | 4.9 | % | 95.1 | 6.3 | % | 93.7 | 9.1 | % | 90.9 | |||||||||||||||||||||||||||||||||||
Direct | 4.0 | 96.0 | 2.8 | 97.2 | 3.6 | 96.4 | 6.0 | 94.0 | |||||||||||||||||||||||||||||||||||||||
Total Personal Lines | 4.9 | 95.1 | 3.8 | 96.2 | 4.9 | 95.1 | 7.5 | 92.5 | |||||||||||||||||||||||||||||||||||||||
Commercial Lines | 10.5 | 89.5 | 8.0 | 92.0 | 10.1 | 89.9 | 11.8 | 88.2 | |||||||||||||||||||||||||||||||||||||||
Property1 | (27.5) | 127.5 | (16.6) | 116.6 | (13.2) | 113.2 | (15.8) | 115.8 | |||||||||||||||||||||||||||||||||||||||
Total underwriting operations | 4.4 | 95.6 | 3.5 | 96.5 | 5.0 | 95.0 | 7.0 | 93.0 |
(millions, except per share amounts) | Amount | ||||||||||
Declared | Payable | Per Share | Accrued/Paid1 | ||||||||
Common - Quarterly Dividends: | |||||||||||
May 2022 | July 2022 | $ | 0.10 | $ | 58.5 | ||||||
March 2022 | April 2022 | 0.10 | 58.5 | ||||||||
December 2021 | January 2022 | 0.10 | 58.5 | ||||||||
May 2021 | July 2021 | 0.10 | 58.5 | ||||||||
March 2021 | April 2021 | 0.10 | 58.5 | ||||||||
December 2020 | January 2021 | 0.10 | 58.6 | ||||||||
Common - Annual Variable Dividends: | |||||||||||
December 2020 | January 2021 | 4.50 | 2,635.9 | ||||||||
Preferred Dividends: | |||||||||||
December 2021 | March 2022 | 26.875 | 13.4 | ||||||||
December 2020 | March 2021 | 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 | Foreign currency translation adjustment | ||||||||||||||
Balance at March 31, 2022 | $ | (1,753.4) | $ | 367.6 | $ | (1,385.8) | $ | (1,370.7) | $ | (14.7) | $ | (0.4) | ||||||||
Other comprehensive income (loss) before reclassifications: | ||||||||||||||||||||
Investment securities | (1,246.7) | 261.8 | (984.9) | (984.9) | 0 | 0 | ||||||||||||||
Foreign currency translation adjustment | (0.5) | 0.1 | (0.4) | 0 | 0 | (0.4) | ||||||||||||||
Total other comprehensive income (loss) before reclassifications | (1,247.2) | 261.9 | (985.3) | (984.9) | 0 | (0.4) | ||||||||||||||
Less: Reclassification adjustment for amounts realized in net income by income statement line item: | ||||||||||||||||||||
Net realized gains (losses) on securities | (205.1) | 43.0 | (162.1) | (162.1) | 0 | 0 | ||||||||||||||
Interest expense | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Total reclassification adjustment for amounts realized in net income | (205.1) | 43.0 | (162.1) | (162.1) | 0 | 0 | ||||||||||||||
Total other comprehensive income (loss) | (1,042.1) | 218.9 | (823.2) | (822.8) | 0 | (0.4) | ||||||||||||||
Balance at June 30, 2022 | $ | (2,795.5) | $ | 586.5 | $ | (2,209.0) | $ | (2,193.5) | $ | (14.7) | $ | (0.8) | ||||||||
Components of Changes in Accumulated Other Comprehensive Income (after tax) | ||||||||||||||||||||
(millions) | Pretax total accumulated other comprehensive income (loss) | Total tax (provision) benefit | After tax total accumulated other comprehensive income (loss) | Total net unrealized gains (losses) on securities | Net unrealized gains (losses) on forecasted transactions | Foreign currency translation adjustment | ||||||||||||||
Balance at March 31, 2021 | $ | 504.6 | $ | (112.3) | $ | 392.3 | $ | 407.7 | $ | (15.4) | $ | 0 | ||||||||
Other comprehensive income (loss) before reclassifications: | ||||||||||||||||||||
Investment securities | 174.7 | (36.7) | 138.0 | 138.0 | 0 | 0 | ||||||||||||||
Foreign currency translation adjustment | (0.6) | 0.1 | (0.5) | 0 | 0 | (0.5) | ||||||||||||||
Total other comprehensive income (loss) before reclassifications | 174.1 | (36.6) | 137.5 | 138.0 | 0 | (0.5) | ||||||||||||||
Less: Reclassification adjustment for amounts realized in net income by income statement line item: | ||||||||||||||||||||
Net realized gains (losses) on securities | 59.4 | (12.5) | 46.9 | 46.9 | 0 | 0 | ||||||||||||||
Interest expense | (0.3) | 0 | (0.3) | 0 | (0.3) | 0 | ||||||||||||||
Total reclassification adjustment for amounts realized in net income | 59.1 | (12.5) | 46.6 | 46.9 | (0.3) | 0 | ||||||||||||||
Total other comprehensive income (loss) | 115.0 | (24.1) | 90.9 | 91.1 | 0.3 | (0.5) | ||||||||||||||
Balance at June 30, 2021 | $ | 619.6 | $ | (136.4) | $ | 483.2 | $ | 498.8 | $ | (15.1) | $ | (0.5) | ||||||||
Components of Changes in Accumulated Other Comprehensive Income (after tax) | ||||||||||||||||||||
(millions) | Pretax total accumulated other comprehensive income (loss) | Total tax (provision) benefit | After tax total accumulated other comprehensive income (loss) | Total net unrealized gains (losses) on securities | Net unrealized gains (losses) on forecasted transactions | Foreign currency translation adjustment | ||||||||||||||
Balance at December 31, 2021 | $ | 52.3 | $ | (11.6) | $ | 40.7 | $ | 56.2 | $ | (14.9) | $ | (0.6) | ||||||||
Other comprehensive income (loss) before reclassifications: | ||||||||||||||||||||
Investment securities | (3,098.4) | 650.7 | (2,447.7) | (2,447.7) | 0 | 0 | ||||||||||||||
Foreign currency translation adjustment | (0.2) | 0 | (0.2) | 0 | 0 | (0.2) | ||||||||||||||
Total other comprehensive income (loss) before reclassifications | (3,098.6) | 650.7 | (2,447.9) | (2,447.7) | 0 | (0.2) | ||||||||||||||
Less: Reclassification adjustment for amounts realized in net income by income statement line item: | ||||||||||||||||||||
Net realized gains (losses) on securities | (250.6) | 52.6 | (198.0) | (198.0) | 0 | 0 | ||||||||||||||
Interest expense | (0.2) | 0 | (0.2) | 0 | (0.2) | 0 | ||||||||||||||
Total reclassification adjustment for amounts realized in net income | (250.8) | 52.6 | (198.2) | (198.0) | (0.2) | 0 | ||||||||||||||
Total other comprehensive income (loss) | (2,847.8) | 598.1 | (2,249.7) | (2,249.7) | 0.2 | (0.2) | ||||||||||||||
Balance at June 30, 2022 | $ | (2,795.5) | $ | 586.5 | $ | (2,209.0) | $ | (2,193.5) | $ | (14.7) | $ | (0.8) | ||||||||
Components of Changes in Accumulated Other Comprehensive Income (after tax) | ||||||||||||||||||||
(millions) | Pretax total accumulated other comprehensive income (loss) | Total tax (provision) benefit | After tax total accumulated other comprehensive income (loss) | Total net unrealized gains (losses) on securities | Net unrealized gains (losses) on forecasted transactions | Foreign currency translation adjustment | ||||||||||||||
Balance at December 31, 2020 | $ | 1,187.4 | $ | (255.7) | $ | 931.7 | $ | 947.3 | $ | (15.6) | $ | 0 | ||||||||
Other comprehensive income (loss) before reclassifications: | ||||||||||||||||||||
Investment securities | (376.7) | 79.1 | (297.6) | (297.6) | 0 | 0 | ||||||||||||||
Foreign currency translation adjustment | (0.6) | 0.1 | (0.5) | 0 | 0 | (0.5) | ||||||||||||||
Total other comprehensive income (loss) before reclassifications | (377.3) | 79.2 | (298.1) | (297.6) | 0 | (0.5) | ||||||||||||||
Less: Reclassification adjustment for amounts realized in net income by income statement line item: | ||||||||||||||||||||
Net realized gains (losses) on securities | 191.1 | (40.2) | 150.9 | 150.9 | 0 | 0 | ||||||||||||||
Interest expense | (0.6) | 0.1 | (0.5) | 0 | (0.5) | 0 | ||||||||||||||
Total reclassification adjustment for amounts realized in net income | 190.5 | (40.1) | 150.4 | 150.9 | (0.5) | 0 | ||||||||||||||
Total other comprehensive income (loss) | (567.8) | 119.3 | (448.5) | (448.5) | 0.5 | (0.5) | ||||||||||||||
Balance at June 30, 2021 | $ | 619.6 | $ | (136.4) | $ | 483.2 | $ | 498.8 | $ | (15.1) | $ | (0.5) |
(millions) | June 30, 2022 | June 30, 2021 | December 31, 2021 | ||||||||||||||
Intangible assets subject to amortization | $ | 84.8 | $ | 134.1 | $ | 104.9 | |||||||||||
Indefinite-lived intangible assets1 | 12.4 | 12.4 | 12.4 | ||||||||||||||
Total | $ | 97.2 | $ | 146.5 | $ | 117.3 |
(millions) | June 30, 2022 | June 30, 2021 | December 31, 2021 | ||||||||||||||||||||||||||||||||
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 | $ | 0 | $ | 0 | $ | 0 | $ | 256.2 | $ | 228.7 | $ | 27.5 | $ | 256.2 | $ | 247.1 | $ | 9.1 | |||||||||||||||||
Agency relationships | 159.2 | 82.5 | 76.7 | 159.2 | 71.1 | 88.1 | 159.2 | 76.8 | 82.4 | ||||||||||||||||||||||||||
Software rights | 69.1 | 62.6 | 6.5 | 69.1 | 54.0 | 15.1 | 69.1 | 58.3 | 10.8 | ||||||||||||||||||||||||||
Trade name | 3.6 | 2.0 | 1.6 | 3.6 | 0.2 | 3.4 | 3.6 | 1.0 | 2.6 | ||||||||||||||||||||||||||
Total | $ | 231.9 | $ | 147.1 | $ | 84.8 | $ | 488.1 | $ | 354.0 | $ | 134.1 | $ | 488.1 | $ | 383.2 | $ | 104.9 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Personal Lines | |||||||||||||||||||||||
Agency | 36 | % | 38 | % | 35 | % | 38 | % | |||||||||||||||
Direct | 40 | 40 | 40 | 41 | |||||||||||||||||||
Total Personal Lines1 | 76 | 78 | 75 | 79 | |||||||||||||||||||
Commercial Lines | 19 | 17 | 20 | 16 | |||||||||||||||||||
Property | 5 | 5 | 5 | 5 | |||||||||||||||||||
Total underwriting operations | 100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Underwriting Profit (Loss) | Underwriting Profit (Loss) | Underwriting Profit (Loss) | Underwriting Profit (Loss) | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | $ | Margin | $ | Margin | $ | Margin | $ | Margin | |||||||||||||||||||||||||||||||||||||||
Personal Lines | |||||||||||||||||||||||||||||||||||||||||||||||
Agency | $ | 260.3 | 6.0 | % | $ | 207.5 | 4.9 | % | $ | 548.9 | 6.3 | % | $ | 755.0 | 9.1 | % | |||||||||||||||||||||||||||||||
Direct | 198.4 | 4.0 | 128.4 | 2.8 | 348.8 | 3.6 | 543.0 | 6.0 | |||||||||||||||||||||||||||||||||||||||
Total Personal Lines | 458.7 | 4.9 | 335.9 | 3.8 | 897.7 | 4.9 | 1,298.0 | 7.5 | |||||||||||||||||||||||||||||||||||||||
Commercial Lines | 243.0 | 10.5 | 130.1 | 8.0 | 445.4 | 10.1 | 358.6 | 11.8 | |||||||||||||||||||||||||||||||||||||||
Property1 | (156.9) | (27.5) | (83.3) | (16.6) | (148.6) | (13.2) | (154.0) | (15.8) | |||||||||||||||||||||||||||||||||||||||
Other indemnity2 | (6.3) | NM | 0.1 | NM | (7.2) | NM | 0.1 | NM | |||||||||||||||||||||||||||||||||||||||
Total underwriting operations | $ | 538.5 | 4.4 | % | $ | 382.8 | 3.5 | % | $ | 1,187.3 | 5.0 | % | $ | 1,502.7 | 7.0 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
Underwriting Performance1 | 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||
Personal Lines – Agency | |||||||||||||||||||||||||||||||||||
Loss & loss adjustment expense ratio | 77.3 | 76.5 | 0.8 | 76.3 | 72.2 | 4.1 | |||||||||||||||||||||||||||||
Underwriting expense ratio | 16.7 | 18.6 | (1.9) | 17.4 | 18.7 | (1.3) | |||||||||||||||||||||||||||||
Combined ratio | 94.0 | 95.1 | (1.1) | 93.7 | 90.9 | 2.8 | |||||||||||||||||||||||||||||
Personal Lines – Direct | |||||||||||||||||||||||||||||||||||
Loss & loss adjustment expense ratio | 77.9 | 77.0 | 0.9 | 77.5 | 72.8 | 4.7 | |||||||||||||||||||||||||||||
Underwriting expense ratio | 18.1 | 20.2 | (2.1) | 18.9 | 21.2 | (2.3) | |||||||||||||||||||||||||||||
Combined ratio | 96.0 | 97.2 | (1.2) | 96.4 | 94.0 | 2.4 | |||||||||||||||||||||||||||||
Total Personal Lines | |||||||||||||||||||||||||||||||||||
Loss & loss adjustment expense ratio | 77.7 | 76.8 | 0.9 | 76.9 | 72.5 | 4.4 | |||||||||||||||||||||||||||||
Underwriting expense ratio | 17.4 | 19.4 | (2.0) | 18.2 | 20.0 | (1.8) | |||||||||||||||||||||||||||||
Combined ratio | 95.1 | 96.2 | (1.1) | 95.1 | 92.5 | 2.6 | |||||||||||||||||||||||||||||
Commercial Lines | |||||||||||||||||||||||||||||||||||
Loss & loss adjustment expense ratio | 70.4 | 71.8 | (1.4) | 70.6 | 67.9 | 2.7 | |||||||||||||||||||||||||||||
Underwriting expense ratio | 19.1 | 20.2 | (1.1) | 19.3 | 20.3 | (1.0) | |||||||||||||||||||||||||||||
Combined ratio | 89.5 | 92.0 | (2.5) | 89.9 | 88.2 | 1.7 | |||||||||||||||||||||||||||||
Property | |||||||||||||||||||||||||||||||||||
Loss & loss adjustment expense ratio | 101.7 | 87.5 | 14.2 | 86.4 | 86.2 | 0.2 | |||||||||||||||||||||||||||||
Underwriting expense ratio2 | 25.8 | 29.1 | (3.3) | 26.8 | 29.6 | (2.8) | |||||||||||||||||||||||||||||
Combined ratio2 | 127.5 | 116.6 | 10.9 | 113.2 | 115.8 | (2.6) | |||||||||||||||||||||||||||||
Total Underwriting Operations | |||||||||||||||||||||||||||||||||||
Loss & loss adjustment expense ratio | 77.4 | 76.5 | 0.9 | 76.2 | 72.5 | 3.7 | |||||||||||||||||||||||||||||
Underwriting expense ratio | 18.2 | 20.0 | (1.8) | 18.8 | 20.5 | (1.7) | |||||||||||||||||||||||||||||
Combined ratio | 95.6 | 96.5 | (0.9) | 95.0 | 93.0 | 2.0 | |||||||||||||||||||||||||||||
Accident year – Loss & loss adjustment expense ratio3 | 77.8 | 75.8 | 2.0 | 75.6 | 71.6 | 4.0 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Change in net loss and LAE reserves | $ | 1,131.6 | $ | 1,603.1 | $ | 1,696.9 | $ | 2,230.6 | |||||||||||||||
Paid losses and LAE | 8,289.5 | 6,803.3 | 16,582.6 | 13,286.3 | |||||||||||||||||||
Total incurred losses and LAE | $ | 9,421.1 | $ | 8,406.4 | $ | 18,279.5 | $ | 15,516.9 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | $ | Point | $ | Point | $ | Point | $ | Point | |||||||||||||||||||||||||||||||||||||||
Personal Lines | $ | 285.2 | 3.1 | $ | 211.8 | 2.4 | $ | 329.7 | 1.8 | $ | 276.9 | 1.6 | |||||||||||||||||||||||||||||||||||
Commercial Lines | 9.6 | 0.4 | 6.6 | 0.4 | 12.4 | 0.3 | 8.4 | 0.3 | |||||||||||||||||||||||||||||||||||||||
Property | 233.5 | 40.9 | 128.0 | 25.5 | 332.8 | 29.5 | 272.6 | 28.0 | |||||||||||||||||||||||||||||||||||||||
Total net catastrophe losses incurred | $ | 528.3 | 4.3 | $ | 346.4 | 3.2 | $ | 674.9 | 2.8 | $ | 557.9 | 2.6 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
($ in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
ACTUARIAL ADJUSTMENTS | |||||||||||||||||||||||
Reserve decrease (increase) | |||||||||||||||||||||||
Prior accident years | $ | (65.5) | $ | (22.1) | $ | (50.4) | $ | (44.2) | |||||||||||||||
Current accident year | (14.4) | 15.5 | (53.2) | 18.4 | |||||||||||||||||||
Calendar year actuarial adjustments | $ | (79.9) | $ | (6.6) | $ | (103.6) | $ | (25.8) | |||||||||||||||
PRIOR ACCIDENT YEARS DEVELOPMENT | |||||||||||||||||||||||
Favorable (unfavorable) | |||||||||||||||||||||||
Actuarial adjustments | $ | (65.5) | $ | (22.1) | $ | (50.4) | $ | (44.2) | |||||||||||||||
All other development | 111.4 | (50.5) | (94.5) | (152.8) | |||||||||||||||||||
Total development | $ | 45.9 | $ | (72.6) | $ | (144.9) | $ | (197.0) | |||||||||||||||
(Increase) decrease to calendar year combined ratio | 0.4 | pts. | (0.7) | pts. | (0.6) | pts. | (0.9) | pts. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
($ in millions) | 2022 | 2021 | % Growth | 2022 | 2021 | % Growth | |||||||||||||||||||||||||||||
NET PREMIUMS WRITTEN | |||||||||||||||||||||||||||||||||||
Personal Lines | |||||||||||||||||||||||||||||||||||
Agency | $ | 4,493.6 | $ | 4,326.1 | 4 | % | $ | 9,010.0 | $ | 8,784.8 | 3 | % | |||||||||||||||||||||||
Direct | 4,978.9 | 4,574.1 | 9 | 10,181.4 | 9,576.8 | 6 | |||||||||||||||||||||||||||||
Total Personal Lines | 9,472.5 | 8,900.2 | 6 | 19,191.4 | 18,361.6 | 5 | |||||||||||||||||||||||||||||
Commercial Lines | 2,308.8 | 1,986.3 | 16 | 5,234.5 | 3,780.4 | 38 | |||||||||||||||||||||||||||||
Property | 639.6 | 590.9 | 8 | 1,175.7 | 1,064.5 | 10 | |||||||||||||||||||||||||||||
Other indemnity1 | 1.2 | 2.9 | (59) | 1.5 | 2.9 | (48) | |||||||||||||||||||||||||||||
Total underwriting operations | $ | 12,422.1 | $ | 11,480.3 | 8 | % | $ | 25,603.1 | $ | 23,209.4 | 10 | % | |||||||||||||||||||||||
NET PREMIUMS EARNED | |||||||||||||||||||||||||||||||||||
Personal Lines | |||||||||||||||||||||||||||||||||||
Agency | $ | 4,366.5 | $ | 4,220.3 | 3 | % | $ | 8,689.8 | $ | 8,318.5 | 4 | % | |||||||||||||||||||||||
Direct | 4,905.9 | 4,633.9 | 6 | 9,699.5 | 9,065.6 | 7 | |||||||||||||||||||||||||||||
Total Personal Lines | 9,272.4 | 8,854.2 | 5 | 18,389.3 | 17,384.1 | 6 | |||||||||||||||||||||||||||||
Commercial Lines | 2,304.4 | 1,621.8 | 42 | 4,431.6 | 3,039.6 | 46 | |||||||||||||||||||||||||||||
Property | 570.5 | 502.3 | 14 | 1,128.6 | 974.8 | 16 | |||||||||||||||||||||||||||||
Other indemnity1 | 0.6 | 4.0 | (85) | 1.3 | 4.0 | (68) | |||||||||||||||||||||||||||||
Total underwriting operations | $ | 12,147.9 | $ | 10,982.3 | 11 | % | $ | 23,950.8 | $ | 21,402.5 | 12 | % | |||||||||||||||||||||||
1 Represents Protective Insurance’s run-off business. | |||||||||||||||||||||||||||||||||||
June 30, | |||||||||||||||||||||||||||||||||||
(thousands) | 2022 | 2021 | % Growth | ||||||||||||||||||||||||||||||||
POLICIES IN FORCE | |||||||||||||||||||||||||||||||||||
Personal Lines | |||||||||||||||||||||||||||||||||||
Agency auto | 7,619.5 | 8,014.2 | (5) | % | |||||||||||||||||||||||||||||||
Direct auto | 9,557.0 | 9,581.3 | 0 | ||||||||||||||||||||||||||||||||
Total auto | 17,176.5 | 17,595.5 | (2) | ||||||||||||||||||||||||||||||||
Special lines1 | 5,485.0 | 5,211.7 | 5 | ||||||||||||||||||||||||||||||||
Personal Lines — total | 22,661.5 | 22,807.2 | (1) | ||||||||||||||||||||||||||||||||
Commercial Lines | 1,024.6 | 916.6 | 12 | ||||||||||||||||||||||||||||||||
Property | 2,823.0 | 2,655.5 | 6 | ||||||||||||||||||||||||||||||||
Companywide total | 26,509.1 | 26,379.3 | 0 | % |
Growth Over Prior Year | |||||||||||||||||
Quarter | Year-to-date | ||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||
Applications | |||||||||||||||||
New | (13) | % | 7 | % | (18) | % | 11 | % | |||||||||
Renewal | 2 | 9 | 4 | 11 | |||||||||||||
Written premium per policy - Auto | 11 | (2) | 8 | (3) | |||||||||||||
Policy life expectancy - Auto | |||||||||||||||||
Trailing 3 months | (32) | NM | |||||||||||||||
Trailing 12 months | (11) | 3 |
Growth Over Prior Year | |||||||||||||||||
Quarter | Year-to-date | ||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||
Applications - Auto | |||||||||||||||||
New | (20) | % | 9 | % | (24) | % | 7 | % | |||||||||
Renewal | (2) | 6 | (1) | 9 | |||||||||||||
Written premium per policy - Auto | 12 | (1) | 10 | (1) | |||||||||||||
Policy life expectancy - Auto | |||||||||||||||||
Trailing 3 months | (34) | NM | |||||||||||||||
Trailing 12 months | (13) | 3 |
Growth Over Prior Year | |||||||||||||||||
Quarter | Year-to-date | ||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||
Applications - Auto | |||||||||||||||||
New | (11) | % | 10 | % | (19) | % | 13 | % | |||||||||
Renewal | 4 | 12 | 6 | 15 | |||||||||||||
Written premium per policy - Auto | 10 | (4) | 7 | (4) | |||||||||||||
Policy life expectancy - Auto | |||||||||||||||||
Trailing 3 months | (29) | NM | |||||||||||||||
Trailing 12 months | (9) | 3 |
Growth Over Prior Year | |||||||||||||||||
Quarter | Year-to-date | ||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||
Applications | |||||||||||||||||
New | (6) | % | 52 | % | 1 | % | 40 | % | |||||||||
Renewal | 15 | 8 | 14 | 10 | |||||||||||||
Written premium per policy | 14 | 20 | 17 | 16 | |||||||||||||
Policy life expectancy - Trailing 12 months | 1 | 5 |
Growth Over Prior Year | |||||||||||||||||
Quarter | Year-to-date | ||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||
Applications | |||||||||||||||||
New | (5) | % | 29 | % | (6) | % | 28 | % | |||||||||
Renewal | 8 | 8 | 9 | 10 | |||||||||||||
Written premium per policy | 4 | 0 | 4 | 0 | |||||||||||||
Policy life expectancy - Trailing 12 months | (8) | (6) |
Three Months | Six Months | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Pretax recurring investment book yield (annualized) | 2.3 | % | 1.9 | % | 2.1 | % | 2.0 | % | |||||||||||||||
FTE total return: | |||||||||||||||||||||||
Fixed-income securities | (2.4) | 1.1 | (5.9) | 0.2 | |||||||||||||||||||
Common stocks | (16.3) | 7.3 | (20.4) | 20.7 | |||||||||||||||||||
Total portfolio | (3.6) | 1.7 | (7.2) | 1.9 |
Three Months | Six Months | |||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||
Fixed-income securities: | ||||||||||||||||||||
U.S. Treasury Notes | (1.7) | % | 0.4 | % | (5.8) | % | (0.7) | % | ||||||||||||
Municipal bonds | (1.9) | 1.4 | (6.7) | 0.4 | ||||||||||||||||
Corporate bonds | (3.1) | 1.3 | (6.7) | (0.3) | ||||||||||||||||
Residential mortgage-backed securities | (0.6) | 0.5 | (1.5) | 0.9 | ||||||||||||||||
Commercial mortgage-backed securities | (3.6) | 1.8 | (7.7) | 1.0 | ||||||||||||||||
Other asset-backed securities | (1.2) | 0.5 | (2.7) | 0.7 | ||||||||||||||||
Preferred stocks | (8.1) | 6.2 | (10.9) | 6.1 | ||||||||||||||||
Short-term investments | 0.1 | 0 | 0.2 | 0.1 |
($ in millions) | Fair Value | % of Total Portfolio | Duration (years) | Rating1 | |||||||||||||||||||
June 30, 2022 | |||||||||||||||||||||||
U.S. government obligations | $ | 18,719.2 | 36.0 | % | 3.7 | AAA | |||||||||||||||||
State and local government obligations | 2,135.4 | 4.1 | 3.7 | AA+ | |||||||||||||||||||
Foreign government obligations | 16.4 | 0.1 | 4.0 | AAA | |||||||||||||||||||
Corporate debt securities | 10,167.8 | 19.6 | 3.0 | BBB | |||||||||||||||||||
Residential mortgage-backed securities | 799.3 | 1.5 | 0.4 | A | |||||||||||||||||||
Commercial mortgage-backed securities | 6,094.6 | 11.7 | 2.7 | A+ | |||||||||||||||||||
Other asset-backed securities | 5,036.0 | 9.7 | 1.1 | AA | |||||||||||||||||||
Preferred stocks | 1,564.3 | 3.0 | 3.0 | BBB- | |||||||||||||||||||
Short-term investments | 4,611.8 | 8.9 | <0.1 | AA | |||||||||||||||||||
Total fixed-income securities | 49,144.8 | 94.6 | 2.8 | AA- | |||||||||||||||||||
Common equities | 2,784.7 | 5.4 | na | na | |||||||||||||||||||
Total portfolio2 | $ | 51,929.5 | 100.0 | % | 2.8 | AA- | |||||||||||||||||
June 30, 2021 | |||||||||||||||||||||||
U.S. government obligations | $ | 19,437.7 | 38.1 | % | 3.4 | AAA | |||||||||||||||||
State and local government obligations | 2,440.5 | 4.8 | 3.8 | AA | |||||||||||||||||||
Foreign government obligations | 12.7 | 0.1 | 1.6 | AA+ | |||||||||||||||||||
Corporate debt securities | 10,678.2 | 20.9 | 3.3 | BBB | |||||||||||||||||||
Residential mortgage-backed securities | 671.3 | 1.3 | 1.2 | AA- | |||||||||||||||||||
Commercial mortgage-backed securities | 5,708.1 | 11.2 | 3.6 | A+ | |||||||||||||||||||
Other asset-backed securities | 3,899.0 | 7.7 | 1.3 | AA | |||||||||||||||||||
Preferred stocks | 1,793.3 | 3.6 | 3.6 | BBB- | |||||||||||||||||||
Short-term investments | 1,710.6 | 3.3 | 0.1 | A+ | |||||||||||||||||||
Total fixed-income securities | 46,351.4 | 91.0 | 3.1 | AA- | |||||||||||||||||||
Common equities | 4,591.4 | 9.0 | na | na | |||||||||||||||||||
Total portfolio2 | $ | 50,942.8 | 100.0 | % | 3.1 | AA- | |||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
U.S. government obligations | $ | 18,488.2 | 35.9 | % | 3.6 | AAA | |||||||||||||||||
State and local government obligations | 2,185.3 | 4.2 | 3.6 | AA+ | |||||||||||||||||||
Foreign government obligations | 17.9 | 0.1 | 4.5 | AAA | |||||||||||||||||||
Corporate debt securities | 10,692.1 | 20.7 | 2.9 | BBB | |||||||||||||||||||
Residential mortgage-backed securities | 790.0 | 1.5 | 0.4 | A- | |||||||||||||||||||
Commercial mortgage-backed securities | 6,535.6 | 12.7 | 3.2 | A+ | |||||||||||||||||||
Other asset-backed securities | 4,982.3 | 9.7 | 1.2 | AA | |||||||||||||||||||
Preferred stocks | 1,821.6 | 3.6 | 3.6 | BBB- | |||||||||||||||||||
Short-term investments | 942.6 | 1.8 | 0.2 | AA | |||||||||||||||||||
Total fixed-income securities | 46,455.6 | 90.2 | 3.0 | AA- | |||||||||||||||||||
Common equities | 5,058.5 | 9.8 | na | na | |||||||||||||||||||
Total portfolio2 | $ | 51,514.1 | 100.0 | % | 3.0 | AA- | |||||||||||||||||
na = not applicable |
June 30, 2022 | June 30, 2021 | December 31, 2021 | ||||||||||||||||||||||||
($ 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 | $ | 1,648.7 | 3.2 | % | $ | 1,834.2 | 3.6 | % | $ | 2,032.4 | 3.9 | % | ||||||||||||||
Redeemable preferred stocks1 | 101.9 | 0.2 | 91.7 | 0.2 | 90.9 | 0.2 | ||||||||||||||||||||
Nonredeemable preferred stocks | 1,360.5 | 2.6 | 1,609.8 | 3.2 | 1,639.9 | 3.2 | ||||||||||||||||||||
Common equities | 2,784.7 | 5.4 | 4,591.4 | 9.0 | 5,058.5 | 9.8 | ||||||||||||||||||||
Total Group I securities | 5,895.8 | 11.4 | 8,127.1 | 16.0 | 8,821.7 | 17.1 | ||||||||||||||||||||
Group II securities: | ||||||||||||||||||||||||||
Other fixed maturities | 41,421.9 | 79.7 | 41,105.1 | 80.7 | 41,749.8 | 81.1 | ||||||||||||||||||||
Short-term investments | 4,611.8 | 8.9 | 1,710.6 | 3.3 | 942.6 | 1.8 | ||||||||||||||||||||
Total Group II securities | 46,033.7 | 88.6 | 42,815.7 | 84.0 | 42,692.4 | 82.9 | ||||||||||||||||||||
Total portfolio | $ | 51,929.5 | 100.0 | % | $ | 50,942.8 | 100.0 | % | $ | 51,514.1 | 100.0 | % |
(millions) | Gross Holding Period Gains | Gross Holding Period Losses | Net Holding Period Gains (Losses) | ||||||||
Balance at December 31, 2021 | |||||||||||
Hybrid fixed-maturity securities | $ | 13.0 | $ | (5.5) | $ | 7.5 | |||||
Equity securities | 3,877.2 | (14.7) | 3,862.5 | ||||||||
Total holding period securities | 3,890.2 | (20.2) | 3,870.0 | ||||||||
Current year change in holding period securities | |||||||||||
Hybrid fixed-maturity securities | (13.0) | (74.4) | (87.4) | ||||||||
Equity securities | (1,859.8) | (163.6) | (2,023.4) | ||||||||
Total changes in holding period securities | (1,872.8) | (238.0) | (2,110.8) | ||||||||
Balance at June 30, 2022 | |||||||||||
Hybrid fixed-maturity securities | 0 | (79.9) | (79.9) | ||||||||
Equity securities | 2,017.4 | (178.3) | 1,839.1 | ||||||||
Total holding period securities | $ | 2,017.4 | $ | (258.2) | $ | 1,759.2 |
Duration Distribution | June 30, 2022 | June 30, 2021 | December 31, 2021 | ||||||||||||||
1 year | 18.4 | % | 21.9 | % | 22.0 | % | |||||||||||
2 years | 17.9 | 18.5 | 18.8 | ||||||||||||||
3 years | 23.6 | 24.4 | 23.5 | ||||||||||||||
5 years | 20.8 | 17.1 | 17.6 | ||||||||||||||
7 years | 14.3 | 12.2 | 13.1 | ||||||||||||||
10 years | 5.0 | 5.9 | 5.0 | ||||||||||||||
Total fixed-income portfolio | 100.0 | % | 100.0 | % | 100.0 | % |
Rating | June 30, 2022 | June 30, 2021 | December 31, 2021 | ||||||||||||||
AAA | 57.7 | % | 55.8 | % | 54.7 | % | |||||||||||
AA | 8.5 | 7.5 | 8.7 | ||||||||||||||
A | 8.4 | 9.3 | 8.6 | ||||||||||||||
BBB | 21.0 | 22.1 | 21.7 | ||||||||||||||
Non-investment grade/non-rated1 | |||||||||||||||||
BB | 3.5 | 4.3 | 4.8 | ||||||||||||||
B | 0.6 | 0.5 | 1.1 | ||||||||||||||
CCC and lower | 0.1 | 0.1 | 0.1 | ||||||||||||||
Non-rated | 0.2 | 0.4 | 0.3 | ||||||||||||||
Total fixed-income portfolio | 100.0 | % | 100.0 | % | 100.0 | % |
($ in millions) | Fair Value | Duration (years) | |||||||||
U.S. Treasury Notes | |||||||||||
Less than one year | $ | 219.5 | 0.5 | ||||||||
One to two years | 4,094.7 | 1.6 | |||||||||
Two to three years | 4,102.8 | 2.5 | |||||||||
Three to five years | 5,235.1 | 4.0 | |||||||||
Five to seven years | 3,946.2 | 5.8 | |||||||||
Seven to ten years | 1,120.9 | 8.3 | |||||||||
Total U.S. Treasury Notes | $ | 18,719.2 | 3.7 | ||||||||
($ in millions) | Fair Value | Net Unrealized Gains (Losses) | % of Asset- Backed Securities | Duration (years) | Rating (at period end)1 | ||||||||||||||||||||||||
June 30, 2022 | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | $ | 799.3 | $ | (10.2) | 6.7 | % | 0.4 | A | |||||||||||||||||||||
Commercial mortgage-backed securities | 6,094.6 | (644.8) | 51.1 | 2.7 | A+ | ||||||||||||||||||||||||
Other asset-backed securities | 5,036.0 | (201.6) | 42.2 | 1.1 | AA | ||||||||||||||||||||||||
Total asset-backed securities | $ | 11,929.9 | $ | (856.6) | 100.0 | % | 1.9 | AA- | |||||||||||||||||||||
June 30, 2021 | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | $ | 671.3 | $ | 3.5 | 6.5 | % | 1.2 | AA- | |||||||||||||||||||||
Commercial mortgage-backed securities | 5,708.1 | 79.9 | 55.6 | 3.6 | A+ | ||||||||||||||||||||||||
Other asset-backed securities | 3,899.0 | 33.1 | 37.9 | 1.3 | AA | ||||||||||||||||||||||||
Total asset-backed securities | $ | 10,278.4 | $ | 116.5 | 100.0 | % | 2.6 | AA- | |||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | $ | 790.0 | $ | 1.7 | 6.4 | % | 0.4 | A- | |||||||||||||||||||||
Commercial mortgage-backed securities | 6,535.6 | (25.4) | 53.1 | 3.2 | A+ | ||||||||||||||||||||||||
Other asset-backed securities | 4,982.3 | 0.9 | 40.5 | 1.2 | AA | ||||||||||||||||||||||||
Total asset-backed securities | $ | 12,307.9 | $ | (22.8) | 100.0 | % | 2.2 | AA- |
Residential Mortgage-Backed Securities (at June 30, 2022) | |||||||||||||||||||||||
($ in millions) Rating1 | Non-Agency | Government/GSE2 | Total | % of Total | |||||||||||||||||||
AAA | $ | 138.4 | $ | 1.3 | $ | 139.7 | 17.5 | % | |||||||||||||||
AA | 34.6 | 0.4 | 35.0 | 4.4 | |||||||||||||||||||
A | 400.1 | 0 | 400.1 | 50.0 | |||||||||||||||||||
BBB | 213.0 | 0 | 213.0 | 26.6 | |||||||||||||||||||
Non-investment grade/non-rated: | |||||||||||||||||||||||
BB | 0.6 | 0 | 0.6 | 0.1 | |||||||||||||||||||
B | 0 | 0 | 0 | 0 | |||||||||||||||||||
CCC and lower | 3.2 | 0 | 3.2 | 0.4 | |||||||||||||||||||
Non-rated | 7.7 | 0 | 7.7 | 1.0 | |||||||||||||||||||
Total fair value | $ | 797.6 | $ | 1.7 | $ | 799.3 | 100.0 | % | |||||||||||||||
Increase (decrease) in value | (3.3) | % | 0.7 | % | (3.3) | % |
Commercial Mortgage-Backed Securities (at June 30, 2022) | |||||||||||||||||||||||
($ in millions) Rating1 | Multi-Borrower | Single-Borrower | Total | % of Total | |||||||||||||||||||
AAA | $ | 246.5 | $ | 1,536.0 | $ | 1,782.5 | 29.2 | % | |||||||||||||||
AA | 0 | 1,754.5 | 1,754.5 | 28.9 | |||||||||||||||||||
A | 0 | 1,034.8 | 1,034.8 | 17.0 | |||||||||||||||||||
BBB | 0 | 1,026.2 | 1,026.2 | 16.8 | |||||||||||||||||||
Non-investment grade/non-rated: | |||||||||||||||||||||||
BB | 0 | 496.4 | 496.4 | 8.1 | |||||||||||||||||||
B | 0.2 | 0 | 0.2 | 0 | |||||||||||||||||||
Total fair value | $ | 246.7 | $ | 5,847.9 | $ | 6,094.6 | 100.0 | % | |||||||||||||||
Increase (decrease) in value | (3.4) | % | (9.8) | % | (9.6) | % |
Municipal Securities (at June 30, 2022) | |||||||||||||||||
(millions) Rating | General Obligations | Revenue Bonds | Total | ||||||||||||||
AAA | $ | 629.2 | $ | 248.4 | $ | 877.6 | |||||||||||
AA | 506.0 | 709.8 | 1,215.8 | ||||||||||||||
A | 0 | 41.1 | 41.1 | ||||||||||||||
BBB | 0 | 0.7 | 0.7 | ||||||||||||||
Non-rated | 0 | 0.2 | 0.2 | ||||||||||||||
Total | $ | 1,135.2 | $ | 1,000.2 | $ | 2,135.4 |
Corporate Securities (at June 30, 2022) | ||||||||||||||||||||||||||
(millions) Rating | Consumer | Industrial | Communication | Financial Services | Technology | Basic Materials | Energy | Total | ||||||||||||||||||
AA | $ | 22.5 | $ | 0 | $ | 0 | $ | 223.1 | $ | 13.6 | $ | 0 | $ | 43.0 | $ | 302.2 | ||||||||||
A | 325.7 | 271.4 | 203.6 | 1,093.2 | 44.8 | 114.7 | 183.5 | 2,236.9 | ||||||||||||||||||
BBB | 2,305.8 | 1,314.2 | 123.3 | 1,040.5 | 618.0 | 12.8 | 912.0 | 6,326.6 | ||||||||||||||||||
Non-investment grade/non-rated: | ||||||||||||||||||||||||||
BB | 362.7 | 195.9 | 195.1 | 96.5 | 37.7 | 30.8 | 60.0 | 978.7 | ||||||||||||||||||
B | 245.8 | 24.7 | 0 | 8.9 | 0 | 0 | 0 | 279.4 | ||||||||||||||||||
CCC and lower | 44.0 | 0 | 0 | 0 | 0 | 0 | 0 | 44.0 | ||||||||||||||||||
Total fair value | $ | 3,306.5 | $ | 1,806.2 | $ | 522.0 | $ | 2,462.2 | $ | 714.1 | $ | 158.3 | $ | 1,198.5 | $ | 10,167.8 |
Preferred Stocks (at June 30, 2022) | |||||||||||||||||||||||
Financial Services | |||||||||||||||||||||||
(millions) Rating | U.S. Banks | Foreign Banks | Insurance | Other Financial | Industrials | Utilities | Total | ||||||||||||||||
BBB | $ | 874.7 | $ | 33.6 | $ | 111.2 | $ | 37.6 | $ | 136.3 | $ | 41.7 | $ | 1,235.1 | |||||||||
Non-investment grade/non-rated: | |||||||||||||||||||||||
BB | 151.4 | 37.7 | 0 | 0 | 23.8 | 34.4 | 247.3 | ||||||||||||||||
Non-rated | 0 | 0 | 43.8 | 21.1 | 17.0 | 0 | 81.9 | ||||||||||||||||
Total fair value | $ | 1,026.1 | $ | 71.3 | $ | 155.0 | $ | 58.7 | $ | 177.1 | $ | 76.1 | $ | 1,564.3 |
($ in millions) | June 30, 2022 | June 30, 2021 | December 31, 2021 | ||||||||||||||||||||||||||||||||
Common stocks | $ | 2,766.2 | 99.3 | % | $ | 4,579.8 | 99.7 | % | $ | 5,041.6 | 99.7 | % | |||||||||||||||||||||||
Other risk investments | 18.5 | 0.7 | 11.6 | 0.3 | 16.9 | 0.3 | |||||||||||||||||||||||||||||
Total common equities | $ | 2,784.7 | 100.0 | % | $ | 4,591.4 | 100.0 | % | $ | 5,058.5 | 100.0 | % |
ISSUER PURCHASES OF EQUITY SECURITIES | |||||||||||||||||||||||
2022 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 | 3,486 | $ | 112.36 | 1,770,572 | 23,229,428 | ||||||||||||||||||
May - prior authorization | 2,529 | 109.01 | 1,773,101 | — | |||||||||||||||||||
May - current authorization | — | — | — | 25,000,000 | |||||||||||||||||||
June | 1,169 | 117.42 | 1,169 | 24,998,831 | |||||||||||||||||||
Total | 7,184 | $ | 112.00 |
THE PROGRESSIVE CORPORATION | ||||||||||||||
(Registrant) | ||||||||||||||
Date: | August 2, 2022 | By: /s/ John P. Sauerland | ||||||||||||
John P. Sauerland | ||||||||||||||
Vice President and Chief Financial Officer | ||||||||||||||
[Participant] | |||||
THE PROGRESSIVE CORPORATION | |||||
By: | |||||
Daniel P. Mascaro | |||||
Vice President & Secretary |