x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
|
|
95-4255452
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(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
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200 E. Randolph Street, Suite 3300, Chicago, Illinois
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|
60601
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(Address of principal executive offices)
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|
(Zip Code)
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Title of each class
|
|
Name of each exchange on which registered
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Common Stock, $0.10 par value per share
|
|
New York Stock Exchange
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7.375% Subordinated Debentures due 2054
|
|
New York Stock Exchange
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|
|
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Caution Regarding Forward-Looking Statements
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||
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Part I
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Item 1.
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Business
|
|
Item 1A.
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Risk Factors
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Item 1B.
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Unresolved Staff Comments
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Item 2.
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Properties
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Item 3.
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Legal Proceedings
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Item 4.
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Mine Safety Disclosures
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|
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Part II
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Item 5.
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Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
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Item 6.
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Selected Financial Data
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Item 7.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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Item 7A.
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Quantitative and Qualitative Disclosures About Market Risk
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Item 8.
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Financial Statements and Supplementary Data
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Item 9.
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
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Item 9A.
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Controls and Procedures
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Item 9B.
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Other Information
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Part III
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|
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Item 10.
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Directors, Executive Officers and Corporate Governance
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Item 11.
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Executive Compensation
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Item 12.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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Item 13.
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Certain Relationships and Related Transactions, and Director Independence
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Item 14.
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Principal Accounting Fees and Services
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Part IV
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|
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Item 15.
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Exhibits, Financial Statement Schedules
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Item 16.
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Form 10-K Summary
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|
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Exhibit Index
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||
Power of Attorney
|
||
Signatures
|
||
Financial Statement Schedules:
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Schedule 1 - Investments Other than Investments in Related Parties
|
||
Schedule 2 - Parent Company Financial Statements
|
||
Schedule 3 - Supplementary Insurance Information
|
||
Schedule 4 - Reinsurance Schedule
|
•
|
Evolving practices and interpretations by regulators and courts that increase operating costs and potential liabilities, particularly any that involve retroactive application of new requirements, including, but not limited to, state initiatives related to unclaimed property laws or claims handling practices with respect to life insurance policies and the proactive use of death verification databases;
|
•
|
Adverse outcomes in litigation or other legal or regulatory proceedings involving Kemper or its subsidiaries or affiliates;
|
•
|
Governmental actions, including, but not limited to, implementation of new federal and state laws and regulations, and court decisions interpreting existing laws and regulations or policy provisions;
|
•
|
Uncertainties related to regulatory approval of insurance rates, policy forms, insurance products, license applications, dividends from insurance subsidiaries, acquisitions of businesses and other matters within the purview of state insurance regulators;
|
•
|
The incidence, frequency and severity of catastrophes occurring in any particular reporting period or geographic area, including natural disasters, pandemics and terrorist attacks or other man-made events;
|
•
|
The number and severity of insurance claims (including those associated with catastrophe losses);
|
•
|
Changes in facts and circumstances affecting assumptions used in determining loss and loss adjustment expenses (“LAE”) reserves, including, but not limited to, the number and severity of insurance claims, changes in claims handling procedures and closure patterns and development patterns;
|
•
|
The impact of inflation on insurance claims, including, but not limited to, the effects on personal injury claims of increasing medical costs and the effects on property claims attributed to scarcity of resources available to rebuild damaged structures, including labor and materials and the amount of salvage value recovered for damaged property;
|
•
|
Developments related to insurance policy claims and coverage issues, including, but not limited to, interpretations or decisions by courts or regulators that may govern or influence losses incurred in connection with hurricanes and other catastrophes;
|
•
|
Orders, interpretations or other actions by regulators that impact the reporting, adjustment and payment of claims;
|
•
|
Changes in the pricing or availability of reinsurance, or in the financial condition of reinsurers and amounts recoverable therefrom;
|
•
|
Changes in the ratings by rating agencies of Kemper and/or its insurance company subsidiaries with regard to credit, financial strength, claims paying ability and other areas on which the Company is rated;
|
•
|
The level of success and costs incurred in realizing or maintaining economies of scale, integrating acquired businesses and implementing significant business initiatives, including, but not limited to, those related to expense and claims savings, consolidations, reorganizations and technology;
|
•
|
Absolute and relative performance of the Company’s products and services, including, but not limited to, the level of success achieved in designing and introducing new insurance products;
|
•
|
The ability of the Company to maintain the availability of critical systems and manage technology initiatives cost-effectively to address insurance industry developments and regulatory requirements;
|
•
|
Heightened competition, including, with respect to pricing, consolidations of existing competitors or entry of new competitors and alternate distribution channels, introduction of new technologies, emergence of telematics, refinements of existing products and development of new products by current or future competitors;
|
•
|
Expected benefits and synergies from mergers, acquisitions and/or divestitures that may not be realized to the extent anticipated, within expected time frames or at all, due to a number of factors including, but not limited to, the loss of key agents/brokers, customers or employees, increased costs, fees, expenses and related charges and delays caused by factors outside of the Company’s control;
|
•
|
Changes in general economic conditions, including, but not limited to, performance of financial markets, interest rates, inflation, unemployment rates and fluctuating values of particular investments held by the Company;
|
•
|
Absolute and relative performance of investments held by the Company;
|
•
|
Changes in insurance industry trends and significant industry developments;
|
•
|
Changes in consumer trends and significant consumer or product developments;
|
•
|
Changes in capital requirements, including the calculations thereof, used by regulators and rating agencies;
|
•
|
Regulatory, accounting or tax changes that may affect the cost of, or demand for, the Company’s products or services or after-tax returns from the Company’s investments;
|
•
|
The impact of required participation in windpools and joint underwriting associations, residual market assessments and assessments for insurance industry insolvencies;
|
•
|
Changes in distribution channels, methods or costs resulting from changes in laws or regulations, lawsuits or market forces;
|
•
|
Increased costs and risks related to cybersecurity that could materially affect the Company’s operations, including, but not limited to, data breaches, cyber-attacks, virus or malware installation or other system hazards or infiltrations affecting system integrity, availability and performance, and actions taken to minimize and remediate the risks thereof; and
|
State
|
|
Percentage of Total Premiums
|
|
California
|
|
22
|
%
|
New York
|
|
17
|
%
|
Texas
|
|
15
|
%
|
North Carolina
|
|
10
|
%
|
Illinois
|
|
4
|
%
|
State
|
|
Percentage of Total Premiums
|
|
California
|
|
73
|
%
|
Texas
|
|
10
|
%
|
Florida
|
|
9
|
%
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
||||
Business Segments:
|
|
|
|
|
||||
Preferred Property & Casualty Insurance
|
|
$
|
452.9
|
|
|
$
|
461.9
|
|
Specialty Property & Casualty Insurance
|
|
1,387.0
|
|
|
514.4
|
|
||
Life & Health Insurance
|
|
4.4
|
|
|
4.1
|
|
||
Total Business Segments
|
|
1,844.3
|
|
|
980.4
|
|
||
Discontinued Operations
|
|
27.4
|
|
|
33.1
|
|
||
Unallocated Reserves
|
|
3.2
|
|
|
3.3
|
|
||
Total Property & Casualty Insurance Reserves
|
|
$
|
1,874.9
|
|
|
$
|
1,016.8
|
|
DOLLARS IN MILLIONS
|
|
Favorable (Adverse) Development
|
||||||||||
2018
|
|
2017
|
|
2016
|
||||||||
Continuing Operations:
|
|
|
|
|
|
|
||||||
Preferred Property & Casualty Insurance
|
|
$
|
8.3
|
|
|
$
|
(15.7
|
)
|
|
$
|
23.4
|
|
Specialty Property & Casualty Insurance
|
|
(1.7
|
)
|
|
(3.8
|
)
|
|
(9.1
|
)
|
|||
Life & Health Insurance
|
|
(1.4
|
)
|
|
(0.9
|
)
|
|
0.1
|
|
|||
Total Favorable (Adverse) Development from Continuing Operations, Net
|
|
5.2
|
|
|
(20.4
|
)
|
|
14.4
|
|
|||
Discontinued Operations
|
|
2.2
|
|
|
1.5
|
|
|
6.3
|
|
|||
Total Favorable (Adverse) Development, Net
|
|
$
|
7.4
|
|
|
$
|
(18.9
|
)
|
|
$
|
20.7
|
|
|
|
Catastrophe Losses
and LAE |
|
Combined Percentage
of Coverage
|
|||||||
DOLLARS IN MILLIONS
|
|
In Excess of
|
|
Up to
|
|
||||||
Retained
|
|
$
|
—
|
|
|
$
|
50.0
|
|
|
—
|
%
|
1st Layer of Coverage
|
|
50.0
|
|
|
150.0
|
|
|
95.0
|
|
||
2nd Layer of Coverage
|
|
150.0
|
|
|
250.0
|
|
|
95.0
|
|
||
3rd Layer of Coverage
|
|
250.0
|
|
|
275.0
|
|
|
95.0
|
|
|
|
Aggregate Catastrophe
Losses and LAE |
||||||
DOLLARS IN MILLIONS
|
|
In Excess of
|
|
Up to
|
||||
Retained
|
|
$
|
—
|
|
|
$
|
60.0
|
|
Coverage
|
|
60.0
|
|
|
110.0
|
|
|
|
Ordinal
|
|
Percentile
|
|
Measurement
|
|
Rank
|
|
Rank
|
|
Net Admitted Assets
|
|
63
|
|
94
|
%
|
Net Written Premiums
|
|
30
|
|
97
|
|
Capital and Surplus
|
|
71
|
|
93
|
|
State
|
|
Percentage of Total Premiums
|
|
Texas
|
|
19
|
%
|
Louisiana
|
|
11
|
|
Alabama
|
|
7
|
|
Mississippi
|
|
6
|
|
Florida
|
|
5
|
|
|
|
Ordinal
|
|
Percentile
|
|
Measurement
|
|
Rank
|
|
Rank
|
|
Net Admitted Assets
|
|
90
|
|
77
|
%
|
Net Written Premiums
|
|
91
|
|
77
|
|
Capital and Surplus
|
|
96
|
|
75
|
|
•
|
Competitiveness of prices charged for insurance policies;
|
•
|
Sophistication of pricing segmentation;
|
•
|
Design and introduction of insurance products to meet emerging consumer trends;
|
•
|
Selection and retention of agents and other business partners;
|
•
|
Compensation paid to agents;
|
•
|
Underwriting discipline;
|
•
|
Selectiveness of sales markets;
|
•
|
Effectiveness of marketing materials and name recognition;
|
•
|
Product and technological innovation;
|
•
|
Ability to settle claims timely and efficiently;
|
•
|
Ability to detect and prevent fraudulent insurance claims;
|
•
|
Effectiveness of deployment and use of information technology across all aspects of operations;
|
•
|
Ability to control operating expenses;
|
•
|
Financial strength ratings; and
|
•
|
Quality of services provided to, and ease of doing business with, independent agents and brokers or policyholders.
|
Item 5.
|
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
|
DOLLARS PER SHARE
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||||||
Mar 31,
2018 |
|
Jun 30,
2018 |
|
Sep 30,
2018 |
|
Dec 31,
2018 |
|
Dec 31,
2018 |
||||||||||||
Cash Dividends Paid to Shareholders (per share)
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
|
$
|
0.96
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||||||
DOLLARS PER SHARE
|
|
Mar 31,
2017 |
|
Jun 30,
2017 |
|
Sep 30,
2017 |
|
Dec 31,
2017 |
|
Dec 31,
2017 |
||||||||||
Cash Dividends Paid to Shareholders (per share)
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
|
$
|
0.96
|
|
Company / Index
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|||||||||||
Kemper Corporation
|
|
$
|
100.00
|
|
|
$
|
90.69
|
|
|
$
|
96.00
|
|
|
$
|
117.47
|
|
|
186.46
|
|
|
$
|
182.07
|
|
S&P MidCap 400 Index
|
|
100.00
|
|
|
109.77
|
|
|
107.38
|
|
|
129.65
|
|
|
150.71
|
|
|
134.01
|
|
|||||
S&P Supercomposite Insurance Index
|
|
100.00
|
|
|
108.71
|
|
|
112.67
|
|
|
133.93
|
|
|
155.34
|
|
|
140.32
|
|
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
FOR THE YEAR
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earned Premiums
|
|
$
|
3,384.4
|
|
|
$
|
2,350.0
|
|
|
$
|
2,220.0
|
|
|
$
|
2,009.6
|
|
|
$
|
1,862.2
|
|
Net Investment Income
|
|
340.9
|
|
|
327.2
|
|
|
298.3
|
|
|
302.6
|
|
|
309.1
|
|
|||||
Other Income
|
|
42.2
|
|
|
4.0
|
|
|
3.2
|
|
|
3.7
|
|
|
1.4
|
|
|||||
Loss from Change in Fair value of Equity and Convertible Securities
|
|
(64.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net Realized Gains on Sales of Investments
|
|
26.4
|
|
|
56.5
|
|
|
33.1
|
|
|
52.1
|
|
|
39.1
|
|
|||||
Net Impairment Losses Recognized in Earnings
|
|
(4.5
|
)
|
|
(14.3
|
)
|
|
(32.7
|
)
|
|
(27.2
|
)
|
|
(15.2
|
)
|
|||||
Total Revenues
|
|
$
|
3,725.1
|
|
|
$
|
2,723.4
|
|
|
$
|
2,521.9
|
|
|
$
|
2,340.8
|
|
|
$
|
2,196.6
|
|
Income from Continuing Operations
|
|
$
|
188.4
|
|
|
$
|
119.9
|
|
|
$
|
12.7
|
|
|
$
|
80.2
|
|
|
$
|
112.6
|
|
Income from Discontinued Operations
|
|
1.7
|
|
|
1.0
|
|
|
4.1
|
|
|
5.5
|
|
|
1.9
|
|
|||||
Net Income
|
|
$
|
190.1
|
|
|
$
|
120.9
|
|
|
$
|
16.8
|
|
|
$
|
85.7
|
|
|
$
|
114.5
|
|
Per Unrestricted Share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from Continuing Operations
|
|
$
|
3.22
|
|
|
$
|
2.32
|
|
|
$
|
0.25
|
|
|
$
|
1.55
|
|
|
$
|
2.08
|
|
Income from Discontinued Operations
|
|
0.03
|
|
|
0.02
|
|
|
0.08
|
|
|
0.10
|
|
|
0.04
|
|
|||||
Net Income
|
|
$
|
3.25
|
|
|
$
|
2.34
|
|
|
$
|
0.33
|
|
|
$
|
1.65
|
|
|
$
|
2.12
|
|
Per Unrestricted Share Assuming Dilution:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from Continuing Operations
|
|
$
|
3.19
|
|
|
$
|
2.31
|
|
|
$
|
0.25
|
|
|
$
|
1.55
|
|
|
$
|
2.08
|
|
Income from Discontinued Operations
|
|
0.03
|
|
|
0.02
|
|
|
0.08
|
|
|
0.10
|
|
|
0.04
|
|
|||||
Net Income
|
|
$
|
3.22
|
|
|
$
|
2.33
|
|
|
$
|
0.33
|
|
|
$
|
1.65
|
|
|
$
|
2.12
|
|
Dividends Paid to Shareholders Per Share
|
|
$
|
0.96
|
|
|
$
|
0.96
|
|
|
$
|
0.96
|
|
|
$
|
0.96
|
|
|
$
|
0.96
|
|
AT YEAR END
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Assets
|
|
$
|
11,544.9
|
|
|
$
|
8,376.2
|
|
|
$
|
8,210.5
|
|
|
$
|
8,036.1
|
|
|
$
|
7,833.4
|
|
Insurance Reserves
|
|
$
|
5,433.6
|
|
|
$
|
4,537.8
|
|
|
$
|
4,406.7
|
|
|
$
|
4,203.8
|
|
|
$
|
4,007.6
|
|
Unearned Premiums
|
|
1,424.3
|
|
|
653.9
|
|
|
618.7
|
|
|
613.1
|
|
|
536.9
|
|
|||||
Long-term Debt, Current and Non-current
|
|
909.0
|
|
|
592.3
|
|
|
751.6
|
|
|
750.6
|
|
|
752.1
|
|
|||||
All Other Liabilities
|
|
727.9
|
|
|
476.6
|
|
|
458.3
|
|
|
476.2
|
|
|
446.1
|
|
|||||
Total Liabilities
|
|
8,494.8
|
|
|
6,260.6
|
|
|
6,235.3
|
|
|
6,043.7
|
|
|
5,742.7
|
|
|||||
Shareholders’ Equity
|
|
3,050.1
|
|
|
2,115.6
|
|
|
1,975.2
|
|
|
1,992.4
|
|
|
2,090.7
|
|
|||||
Total Liabilities and Shareholders’ Equity
|
|
$
|
11,544.9
|
|
|
$
|
8,376.2
|
|
|
$
|
8,210.5
|
|
|
$
|
8,036.1
|
|
|
$
|
7,833.4
|
|
Book Value Per Share
|
|
$
|
47.10
|
|
|
$
|
41.11
|
|
|
$
|
38.52
|
|
|
$
|
38.82
|
|
|
$
|
39.88
|
|
|
|
Summary of Results
|
|
Catastrophes
|
|
Loss and LAE Reserve Development
|
|
Non-GAAP Financial Measures
|
|
Preferred Property & Casualty Insurance
|
|
Specialty Property & Casualty Insurance
|
|
Life & Health Insurance
|
|
Investment Results
|
|
Investment Quality and Concentrations
|
|
Investments in Limited Liability Companies and Limited Partnerships
|
|
Expenses
|
|
Income Taxes
|
|
Liquidity and Capital Resources
|
|
Off-Balance Sheet Arrangements
|
|
Contractual Obligations
|
|
Critical Accounting Estimates
|
|
Recently Issued Accounting Pronouncements
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
Increase
(Decrease) in Income from 2017 to 2018 |
|
2016
|
|
Increase
(Decrease) in Income from 2016 to 2017 |
||||||||||
Net Income
|
|
$
|
190.1
|
|
|
120.9
|
|
|
69.2
|
|
|
16.8
|
|
|
104.1
|
|
||||
Less Income from Discontinued Operations
|
|
1.7
|
|
|
1.0
|
|
|
0.7
|
|
|
4.1
|
|
|
(3.1
|
)
|
|||||
Income from Continuing Operations
|
|
188.4
|
|
|
119.9
|
|
|
68.5
|
|
|
12.7
|
|
|
107.2
|
|
|||||
Less Net Income (Loss) from:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Change in Fair Value of Equity and Convertible Securities
|
|
(50.8
|
)
|
|
—
|
|
|
(50.8
|
)
|
|
—
|
|
|
—
|
|
|||||
Net Realized Gains on Sales of Investments
|
|
20.9
|
|
|
36.7
|
|
|
(15.8
|
)
|
|
21.5
|
|
|
15.2
|
|
|||||
Net Impairment Losses Recognized in Earnings
|
|
(3.6
|
)
|
|
(9.3
|
)
|
|
5.7
|
|
|
(21.2
|
)
|
|
11.9
|
|
|||||
Acquisition Related Transaction, Integration and Other Costs
|
|
(36.5
|
)
|
|
—
|
|
|
(36.5
|
)
|
|
—
|
|
|
—
|
|
|||||
Adjusted Consolidated Net Operating Income
|
|
258.4
|
|
|
92.5
|
|
|
165.9
|
|
|
12.4
|
|
|
80.1
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Components of Adjusted Consolidated Net Operating Income:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment Net Operating Income (Loss) From:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred Property & Casualty Insurance
|
|
$
|
25.7
|
|
|
$
|
(45.4
|
)
|
|
$
|
71.1
|
|
|
$
|
15.6
|
|
|
$
|
(61.0
|
)
|
Specialty Property & Casualty Insurance
|
|
115.8
|
|
|
56.3
|
|
|
59.5
|
|
|
(14.5
|
)
|
|
70.8
|
|
|||||
Life & Health Insurance
|
|
91.5
|
|
|
91.9
|
|
|
(0.4
|
)
|
|
31.0
|
|
|
60.9
|
|
|||||
Segment Net Operating Income
|
|
233.0
|
|
|
102.8
|
|
|
130.2
|
|
|
32.1
|
|
|
70.7
|
|
|||||
Corporate and Other Net Operating Income (Loss) From:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Effects of Tax Law Changes
|
|
26.4
|
|
|
7.4
|
|
|
19.0
|
|
|
—
|
|
|
7.4
|
|
|||||
Partial Satisfaction of Judgment
|
|
28.2
|
|
|
—
|
|
|
28.2
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
|
(29.2
|
)
|
|
(17.7
|
)
|
|
(11.5
|
)
|
|
(19.7
|
)
|
|
2.0
|
|
|||||
Corporate and Other Net Operating Income (Loss)
|
|
25.4
|
|
|
(10.3
|
)
|
|
35.7
|
|
|
(19.7
|
)
|
|
9.4
|
|
|||||
Adjusted Consolidated Net Operating Income
|
|
$
|
258.4
|
|
|
$
|
92.5
|
|
|
$
|
165.9
|
|
|
12.4
|
|
|
$
|
80.1
|
|
|
|
Year Ended
|
|||||||||||||||||||
|
|
Dec 31, 2018
|
|
Dec 31, 2017
|
|
Dec 31, 2016
|
|||||||||||||||
DOLLARS IN MILLIONS
|
|
Number of Events
|
|
Losses and LAE
|
|
Number of Events
|
|
Losses and LAE
|
|
Number of Events
|
|
Losses and LAE
|
|||||||||
Range of Losses and LAE Per Event:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Below $5
|
|
45
|
|
|
$
|
34.7
|
|
|
39
|
|
|
$
|
61.3
|
|
|
39
|
|
|
$
|
37.6
|
|
$5 - $10
|
|
4
|
|
|
27.6
|
|
|
1
|
|
|
5.3
|
|
|
2
|
|
|
13.5
|
|
|||
$10 - $15
|
|
—
|
|
|
—
|
|
|
2
|
|
|
21.4
|
|
|
—
|
|
|
—
|
|
|||
$15 - $20
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
$20 - $25
|
|
—
|
|
|
—
|
|
|
1
|
|
|
24.4
|
|
|
—
|
|
|
—
|
|
|||
Greater Than $25
|
|
1
|
|
|
33.7
|
|
|
2
|
|
|
72.5
|
|
|
2
|
|
|
64.0
|
|
|||
Total
|
|
50
|
|
|
$
|
96.0
|
|
|
45
|
|
|
$
|
184.9
|
|
|
43
|
|
|
$
|
115.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Preferred Property & Casualty Insurance
|
|
|
|
$
|
87.3
|
|
|
|
|
$
|
173.5
|
|
|
|
|
$
|
103.1
|
|
|||
Specialty Property & Casualty Insurance
|
|
|
|
4.7
|
|
|
|
|
5.5
|
|
|
|
|
6.5
|
|
||||||
Life & Health Insurance
|
|
|
|
4.0
|
|
|
|
|
5.9
|
|
|
|
|
5.5
|
|
||||||
Total Catastrophe Losses and LAE
|
|
|
|
$
|
96.0
|
|
|
|
|
$
|
184.9
|
|
|
|
|
$
|
115.1
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Preferred Property & Casualty Insurance:
|
|
|
|
|
|
|
||||||
Non-catastrophe
|
|
$
|
(0.1
|
)
|
|
$
|
20.4
|
|
|
$
|
(4.4
|
)
|
Catastrophe
|
|
(8.2
|
)
|
|
(4.7
|
)
|
|
(19.0
|
)
|
|||
Total
|
|
(8.3
|
)
|
|
15.7
|
|
|
(23.4
|
)
|
|||
Specialty Property & Casualty Insurance:
|
|
|
|
|
|
|
||||||
Non-catastrophe
|
|
2.0
|
|
|
4.1
|
|
|
9.3
|
|
|||
Catastrophe
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.2
|
)
|
|||
Total
|
|
1.7
|
|
|
3.8
|
|
|
9.1
|
|
|||
Life & Health Insurance:
|
|
|
|
|
|
|
||||||
Non-catastrophe
|
|
1.3
|
|
|
0.4
|
|
|
—
|
|
|||
Catastrophe
|
|
0.1
|
|
|
0.5
|
|
|
(0.1
|
)
|
|||
Total
|
|
1.4
|
|
|
0.9
|
|
|
(0.1
|
)
|
|||
Increase (Decrease) in Total Loss and LAE Reserves Related to Prior Years:
|
|
|
|
|
|
|
||||||
Non-catastrophe
|
|
3.2
|
|
|
24.9
|
|
|
4.9
|
|
|||
Catastrophe
|
|
(8.4
|
)
|
|
(4.5
|
)
|
|
(19.3
|
)
|
|||
Increase (Decrease) in Total Loss and LAE Reserves Related to Prior Years
|
|
$
|
(5.2
|
)
|
|
$
|
20.4
|
|
|
$
|
(14.4
|
)
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net Premiums Written
|
|
$
|
748.8
|
|
|
$
|
726.1
|
|
|
$
|
737.3
|
|
Earned Premiums
|
|
$
|
730.7
|
|
|
$
|
730.3
|
|
|
$
|
741.5
|
|
Net Investment Income
|
|
61.8
|
|
|
58.9
|
|
|
48.6
|
|
|||
Total Revenues
|
|
792.5
|
|
|
789.2
|
|
|
790.1
|
|
|||
Incurred Losses and LAE related to:
|
|
|
|
|
|
|
||||||
Current Year:
|
|
|
|
|
|
|
||||||
Non-catastrophe Losses and LAE
|
|
459.4
|
|
|
460.3
|
|
|
465.6
|
|
|||
Catastrophe Losses and LAE
|
|
87.3
|
|
|
173.5
|
|
|
103.1
|
|
|||
Prior Years:
|
|
|
|
|
|
|
||||||
Non-catastrophe Losses and LAE
|
|
(0.1
|
)
|
|
20.4
|
|
|
(4.4
|
)
|
|||
Catastrophe Losses and LAE
|
|
(8.2
|
)
|
|
(4.7
|
)
|
|
(19.0
|
)
|
|||
Total Incurred Losses and LAE
|
|
538.4
|
|
|
649.5
|
|
|
545.3
|
|
|||
Insurance Expenses
|
|
225.5
|
|
|
217.8
|
|
|
229.0
|
|
|||
Operating Profit (Loss)
|
|
28.6
|
|
|
(78.1
|
)
|
|
15.8
|
|
|||
Income Tax Benefit (Expense)
|
|
(2.9
|
)
|
|
32.7
|
|
|
(0.2
|
)
|
|||
Segment Net Operating Income (Loss)
|
|
$
|
25.7
|
|
|
$
|
(45.4
|
)
|
|
$
|
15.6
|
|
|
|
|
|
|
|
|
||||||
Ratios Based On Earned Premiums
|
|
|
|
|
|
|
||||||
Current Year Non-catastrophe Losses and LAE Ratio
|
|
62.9
|
%
|
|
62.9
|
%
|
|
62.8
|
%
|
|||
Current Year Catastrophe Losses and LAE Ratio
|
|
11.9
|
|
|
23.8
|
|
|
13.9
|
|
|||
Prior Years Non-catastrophe Losses and LAE Ratio
|
|
—
|
|
|
2.8
|
|
|
(0.6
|
)
|
|||
Prior Years Catastrophe Losses and LAE Ratio
|
|
(1.1
|
)
|
|
(0.6
|
)
|
|
(2.6
|
)
|
|||
Total Incurred Loss and LAE Ratio
|
|
73.7
|
|
|
88.9
|
|
|
73.5
|
|
|||
Insurance Expense Ratio
|
|
30.9
|
|
|
29.8
|
|
|
30.9
|
|
|||
Combined Ratio
|
|
104.6
|
%
|
|
118.7
|
%
|
|
104.4
|
%
|
|||
Underlying Combined Ratio
|
|
|
|
|
|
|
||||||
Current Year Non-catastrophe Losses and LAE Ratio
|
|
62.9
|
%
|
|
62.9
|
%
|
|
62.8
|
%
|
|||
Insurance Expense Ratio
|
|
30.9
|
|
|
29.8
|
|
|
30.9
|
|
|||
Underlying Combined Ratio
|
|
93.8
|
%
|
|
92.7
|
%
|
|
93.7
|
%
|
|||
Non-GAAP Measure Reconciliation
|
|
|
|
|
|
|
||||||
Combined Ratio
|
|
104.6
|
%
|
|
118.7
|
%
|
|
104.4
|
%
|
|||
Less:
|
|
|
|
|
|
|
||||||
Current Year Catastrophe Losses and LAE Ratio
|
|
11.9
|
|
|
23.8
|
|
|
13.9
|
|
|||
Prior Years Non-catastrophe Losses and LAE Ratio
|
|
—
|
|
|
2.8
|
|
|
(0.6
|
)
|
|||
Prior Years Catastrophe Losses and LAE Ratio
|
|
(1.1
|
)
|
|
(0.6
|
)
|
|
(2.6
|
)
|
|||
Underlying Combined Ratio
|
|
93.8
|
%
|
|
92.7
|
%
|
|
93.7
|
%
|
|
|
Dec 31, 2018
|
|
Dec 31, 2017
|
||||||||||
DOLLARS IN MILLIONS
|
|
Number of Events
|
|
Losses and LAE
|
|
Number of Events
|
|
Losses and LAE
|
||||||
Range of Losses and LAE Per Event:
|
|
|
|
|
|
|
|
|
||||||
Below $5
|
|
45
|
|
|
$
|
32.9
|
|
|
39
|
|
|
$
|
53.2
|
|
$5 - $10
|
|
3
|
|
|
21.3
|
|
|
2
|
|
|
14.4
|
|
||
$10 - $15
|
|
—
|
|
|
—
|
|
|
1
|
|
|
10.0
|
|
||
$15 - $20
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
$20 - $25
|
|
—
|
|
|
—
|
|
|
1
|
|
|
24.3
|
|
||
Greater Than $25
|
|
1
|
|
|
33.1
|
|
|
2
|
|
|
71.6
|
|
||
Total
|
|
49
|
|
|
$
|
87.3
|
|
|
45
|
|
|
$
|
173.5
|
|
DOLLARS IN MILLIONS
|
|
Dec 31,
2018 |
|
Dec 31,
2017 |
||||
Insurance Reserves:
|
|
|
|
|
||||
Preferred Automobile
|
|
$
|
270.0
|
|
|
$
|
285.6
|
|
Homeowners
|
|
147.9
|
|
|
139.7
|
|
||
Other
|
|
35.0
|
|
|
36.6
|
|
||
Insurance Reserves
|
|
$
|
452.9
|
|
|
$
|
461.9
|
|
Insurance Reserves:
|
|
|
|
|
||||
Loss Reserves:
|
|
|
|
|
||||
Case
|
|
$
|
312.5
|
|
|
$
|
336.2
|
|
Incurred But Not Reported
|
|
110.0
|
|
|
95.3
|
|
||
Total Loss Reserves
|
|
422.5
|
|
|
431.5
|
|
||
LAE Reserves
|
|
30.4
|
|
|
30.4
|
|
||
Insurance Reserves
|
|
$
|
452.9
|
|
|
$
|
461.9
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net Premiums Written
|
|
$
|
462.1
|
|
|
$
|
424.4
|
|
|
$
|
426.1
|
|
Earned Premiums
|
|
$
|
440.2
|
|
|
$
|
422.8
|
|
|
$
|
424.6
|
|
Incurred Losses and LAE related to:
|
|
|
|
|
|
|
||||||
Current Year:
|
|
|
|
|
|
|
||||||
Non-catastrophe Losses and LAE
|
|
308.8
|
|
|
309.0
|
|
|
308.0
|
|
|||
Catastrophe Losses and LAE
|
|
7.2
|
|
|
11.3
|
|
|
11.6
|
|
|||
Prior Years:
|
|
|
|
|
|
|
||||||
Non-catastrophe Losses and LAE
|
|
(5.7
|
)
|
|
19.5
|
|
|
4.9
|
|
|||
Catastrophe Losses and LAE
|
|
(0.1
|
)
|
|
(0.2
|
)
|
|
(0.3
|
)
|
|||
Total Incurred Losses and LAE
|
|
$
|
310.2
|
|
|
$
|
339.6
|
|
|
$
|
324.2
|
|
Ratios Based On Earned Premiums
|
|
|
|
|
|
|
||||||
Current Year Non-catastrophe Losses and LAE Ratio
|
|
70.2
|
%
|
|
73.0
|
%
|
|
72.6
|
%
|
|||
Current Year Catastrophe Losses and LAE Ratio
|
|
1.6
|
|
|
2.7
|
|
|
2.7
|
|
|||
Prior Years Non-catastrophe Losses and LAE Ratio
|
|
(1.3
|
)
|
|
4.6
|
|
|
1.2
|
|
|||
Prior Years Catastrophe Losses and LAE Ratio
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|||
Total Incurred Loss and LAE Ratio
|
|
70.5
|
%
|
|
80.3
|
%
|
|
76.4
|
%
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net Premiums Written
|
|
$
|
247.3
|
|
|
$
|
260.5
|
|
|
$
|
267.4
|
|
Earned Premiums
|
|
$
|
250.1
|
|
|
$
|
264.8
|
|
|
$
|
271.9
|
|
Incurred Losses and LAE related to:
|
|
|
|
|
|
|
||||||
Current Year:
|
|
|
|
|
|
|
||||||
Non-catastrophe Losses and LAE
|
|
131.5
|
|
|
129.5
|
|
|
135.5
|
|
|||
Catastrophe Losses and LAE
|
|
75.2
|
|
|
157.3
|
|
|
89.0
|
|
|||
Prior Years:
|
|
|
|
|
|
|
||||||
Non-catastrophe Losses and LAE
|
|
10.4
|
|
|
4.7
|
|
|
(3.2
|
)
|
|||
Catastrophe Losses and LAE
|
|
(7.2
|
)
|
|
(3.7
|
)
|
|
(16.8
|
)
|
|||
Total Incurred Losses and LAE
|
|
$
|
209.9
|
|
|
$
|
287.8
|
|
|
$
|
204.5
|
|
Ratios Based On Earned Premiums
|
|
|
|
|
|
|
||||||
Current Year Non-catastrophe Losses and LAE Ratio
|
|
52.5
|
%
|
|
48.9
|
%
|
|
49.9
|
%
|
|||
Current Year Catastrophe Losses and LAE Ratio
|
|
30.1
|
|
|
59.4
|
|
|
32.7
|
|
|||
Prior Years Non-catastrophe Losses and LAE Ratio
|
|
4.2
|
|
|
1.8
|
|
|
(1.2
|
)
|
|||
Prior Years Catastrophe Losses and LAE Ratio
|
|
(2.9
|
)
|
|
(1.4
|
)
|
|
(6.2
|
)
|
|||
Total Incurred Loss and LAE Ratio
|
|
83.9
|
%
|
|
108.7
|
%
|
|
75.2
|
%
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net Premiums Written
|
|
$
|
39.4
|
|
|
$
|
41.2
|
|
|
$
|
43.8
|
|
Earned Premiums
|
|
$
|
40.4
|
|
|
$
|
42.7
|
|
|
$
|
45.0
|
|
Incurred Losses and LAE related to:
|
|
|
|
|
|
|
||||||
Current Year:
|
|
|
|
|
|
|
||||||
Non-catastrophe Losses and LAE
|
|
19.1
|
|
|
21.8
|
|
|
22.1
|
|
|||
Catastrophe Losses and LAE
|
|
4.9
|
|
|
4.9
|
|
|
2.5
|
|
|||
Prior Years:
|
|
|
|
|
|
|
||||||
Non-catastrophe Losses and LAE
|
|
(4.8
|
)
|
|
(3.8
|
)
|
|
(6.1
|
)
|
|||
Catastrophe Losses and LAE
|
|
(0.9
|
)
|
|
(0.8
|
)
|
|
(1.9
|
)
|
|||
Total Incurred Losses and LAE
|
|
$
|
18.3
|
|
|
$
|
22.1
|
|
|
$
|
16.6
|
|
Ratios Based On Earned Premiums
|
|
|
|
|
|
|
||||||
Current Year Non-catastrophe Losses and LAE Ratio
|
|
47.3
|
%
|
|
51.1
|
%
|
|
49.1
|
%
|
|||
Current Year Catastrophe Losses and LAE Ratio
|
|
12.1
|
|
|
11.5
|
|
|
5.6
|
|
|||
Prior Years Non-catastrophe Losses and LAE Ratio
|
|
(11.9
|
)
|
|
(8.9
|
)
|
|
(13.6
|
)
|
|||
Prior Years Catastrophe Losses and LAE Ratio
|
|
(2.2
|
)
|
|
(1.9
|
)
|
|
(4.2
|
)
|
|||
Total Incurred Loss and LAE Ratio
|
|
45.3
|
%
|
|
51.8
|
%
|
|
36.9
|
%
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net Premiums Written
|
|
$
|
2,067.4
|
|
|
$
|
1,043.5
|
|
|
$
|
883.6
|
|
Earned Premiums
|
|
$
|
2,027.4
|
|
|
$
|
1,005.7
|
|
|
$
|
873.3
|
|
Net Investment Income
|
|
63.4
|
|
|
39.2
|
|
|
29.1
|
|
|||
Other Income
|
|
2.4
|
|
|
1.1
|
|
|
0.5
|
|
|||
Total Revenues
|
|
2,093.2
|
|
|
1,046.0
|
|
|
902.9
|
|
|||
Incurred Losses and LAE related to:
|
|
|
|
|
|
|
||||||
Current Year:
|
|
|
|
|
|
|
||||||
Non-catastrophe Losses and LAE
|
|
1,517.4
|
|
|
791.2
|
|
|
758.3
|
|
|||
Catastrophe Losses and LAE
|
|
4.7
|
|
|
5.5
|
|
|
6.5
|
|
|||
Prior Years:
|
|
|
|
|
|
|
||||||
Non-catastrophe Losses and LAE
|
|
2.0
|
|
|
4.1
|
|
|
9.3
|
|
|||
Catastrophe Losses and LAE
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.2
|
)
|
|||
Total Incurred Losses and LAE
|
|
1,523.8
|
|
|
800.5
|
|
|
773.9
|
|
|||
Insurance Expenses
|
|
421.7
|
|
|
165.0
|
|
|
156.7
|
|
|||
Other Expenses
|
|
2.1
|
|
|
—
|
|
|
—
|
|
|||
Operating Profit (Loss)
|
|
145.6
|
|
|
80.5
|
|
|
(27.7
|
)
|
|||
Income Tax Benefit (Expense)
|
|
(29.8
|
)
|
|
(24.2
|
)
|
|
13.2
|
|
|||
Segment Net Operating Income (Loss)
|
|
$
|
115.8
|
|
|
$
|
56.3
|
|
|
$
|
(14.5
|
)
|
|
|
|
|
|
|
|
||||||
Ratios Based On Earned Premiums
|
|
|
|
|
|
|
||||||
Current Year Non-catastrophe Losses and LAE Ratio
|
|
74.9
|
%
|
|
78.7
|
%
|
|
86.8
|
%
|
|||
Current Year Catastrophe Losses and LAE Ratio
|
|
0.2
|
|
|
0.5
|
|
|
0.7
|
|
|||
Prior Years Non-catastrophe Losses and LAE Ratio
|
|
0.1
|
|
|
0.4
|
|
|
1.1
|
|
|||
Prior Years Catastrophe Losses and LAE Ratio
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total Incurred Loss and LAE Ratio
|
|
75.2
|
|
|
79.6
|
|
|
88.6
|
|
|||
Insurance Expense Ratio
|
|
20.8
|
|
|
16.4
|
|
|
17.9
|
|
|||
Combined Ratio
|
|
96.0
|
%
|
|
96.0
|
%
|
|
106.5
|
%
|
|||
Underlying Combined Ratio
|
|
|
|
|
|
|
||||||
Current Year Non-catastrophe Losses and LAE Ratio
|
|
74.9
|
%
|
|
78.7
|
%
|
|
86.8
|
%
|
|||
Insurance Expense Ratio
|
|
20.8
|
|
|
16.4
|
|
|
17.9
|
|
|||
Underlying Combined Ratio
|
|
95.7
|
%
|
|
95.1
|
%
|
|
104.7
|
%
|
|||
Non-GAAP Measure Reconciliation
|
|
|
|
|
|
|
||||||
Combined Ratio
|
|
96.0
|
%
|
|
96.0
|
%
|
|
106.5
|
%
|
|||
Less:
|
|
|
|
|
|
|
||||||
Current Year Catastrophe Losses and LAE Ratio
|
|
0.2
|
|
|
0.5
|
|
|
0.7
|
|
|||
Prior Years Non-catastrophe Losses and LAE Ratio
|
|
0.1
|
|
|
0.4
|
|
|
1.1
|
|
|||
Prior Years Catastrophe Losses and LAE Ratio
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Underlying Combined Ratio
|
|
95.7
|
%
|
|
95.1
|
%
|
|
104.7
|
%
|
DOLLARS IN MILLIONS
|
|
Dec 31,
2018 |
|
Dec 31,
2017 |
||||
Insurance Reserves:
|
|
|
|
|
||||
Non-Standard Automobile
|
|
$
|
1,177.2
|
|
|
$
|
452.3
|
|
Commercial Automobile
|
|
209.8
|
|
|
62.1
|
|
||
Insurance Reserves
|
|
$
|
1,387.0
|
|
|
$
|
514.4
|
|
Insurance Reserves:
|
|
|
|
|
||||
Loss Reserves:
|
|
|
|
|
||||
Case
|
|
$
|
692.8
|
|
|
$
|
325.1
|
|
Incurred But Not Reported
|
|
556.2
|
|
|
144.0
|
|
||
Total Loss Reserves
|
|
1,249.0
|
|
|
469.1
|
|
||
LAE Reserves
|
|
138.0
|
|
|
45.3
|
|
||
Insurance Reserves
|
|
$
|
1,387.0
|
|
|
$
|
514.4
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net Premiums Written
|
|
$
|
1,927.9
|
|
|
$
|
992.3
|
|
|
$
|
832.6
|
|
Earned Premiums
|
|
$
|
1,889.5
|
|
|
$
|
954.3
|
|
|
$
|
820.0
|
|
Incurred Losses and LAE related to:
|
|
|
|
|
|
|
||||||
Current Year:
|
|
|
|
|
|
|
||||||
Non-catastrophe Losses and LAE
|
|
$
|
1,418.2
|
|
|
$
|
750.4
|
|
|
$
|
714.3
|
|
Catastrophe Losses and LAE
|
|
3.9
|
|
|
4.8
|
|
|
5.7
|
|
|||
Prior Years:
|
|
|
|
|
|
|
||||||
Non-catastrophe Losses and LAE
|
|
5.7
|
|
|
3.1
|
|
|
6.8
|
|
|||
Catastrophe Losses and LAE
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(0.1
|
)
|
|||
Total Incurred Losses and LAE
|
|
$
|
1,427.6
|
|
|
$
|
758.1
|
|
|
$
|
726.7
|
|
Ratios Based On Earned Premiums
|
|
|
|
|
|
|
||||||
Current Year Non-catastrophe Losses and LAE Ratio
|
|
75.1
|
%
|
|
78.6
|
%
|
|
87.1
|
%
|
|||
Current Year Catastrophe Losses and LAE Ratio
|
|
0.2
|
|
|
0.5
|
|
|
0.7
|
|
|||
Prior Years Non-catastrophe Losses and LAE Ratio
|
|
0.3
|
|
|
0.3
|
|
|
0.8
|
|
|||
Prior Years Catastrophe Losses and LAE Ratio
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total Incurred Loss and LAE Ratio
|
|
75.6
|
%
|
|
79.4
|
%
|
|
88.6
|
%
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net Premiums Written
|
|
$
|
139.5
|
|
|
$
|
51.2
|
|
|
$
|
51.0
|
|
Earned Premiums
|
|
$
|
137.9
|
|
|
$
|
51.4
|
|
|
$
|
53.3
|
|
Incurred Losses and LAE related to:
|
|
|
|
|
|
|
||||||
Current Year:
|
|
|
|
|
|
|
||||||
Non-catastrophe Losses and LAE
|
|
$
|
99.2
|
|
|
$
|
40.8
|
|
|
$
|
44.0
|
|
Catastrophe Losses and LAE
|
|
0.8
|
|
|
0.7
|
|
|
0.8
|
|
|||
Prior Years:
|
|
|
|
|
|
|
||||||
Non-catastrophe Losses and LAE
|
|
(3.7
|
)
|
|
1.0
|
|
|
2.5
|
|
|||
Catastrophe Losses and LAE
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|||
Total Incurred Losses and LAE
|
|
$
|
96.2
|
|
|
$
|
42.4
|
|
|
$
|
47.2
|
|
Ratios Based On Earned Premiums
|
|
|
|
|
|
|
||||||
Current Year Non-catastrophe Losses and LAE Ratio
|
|
72.0
|
%
|
|
79.4
|
%
|
|
82.6
|
%
|
|||
Current Year Catastrophe Losses and LAE Ratio
|
|
0.6
|
|
|
1.4
|
|
|
1.5
|
|
|||
Prior Years Non-catastrophe Losses and LAE Ratio
|
|
(2.7
|
)
|
|
1.9
|
|
|
4.7
|
|
|||
Prior Years Catastrophe Losses and LAE Ratio
|
|
(0.1
|
)
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|||
Total Incurred Loss and LAE Ratio
|
|
69.8
|
%
|
|
82.5
|
%
|
|
88.6
|
%
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Earned Premiums:
|
|
|
|
|
|
|
||||||
Life
|
|
$
|
378.4
|
|
|
$
|
379.7
|
|
|
$
|
381.6
|
|
Accident and Health
|
|
177.5
|
|
|
161.7
|
|
|
149.4
|
|
|||
Property
|
|
70.4
|
|
|
72.6
|
|
|
74.2
|
|
|||
Total Earned Premiums
|
|
626.3
|
|
|
614.0
|
|
|
605.2
|
|
|||
Net Investment Income
|
|
210.9
|
|
|
223.2
|
|
|
214.2
|
|
|||
Other Income
|
|
4.0
|
|
|
2.6
|
|
|
2.8
|
|
|||
Total Revenues
|
|
841.2
|
|
|
839.8
|
|
|
822.2
|
|
|||
Policyholders’ Benefits and Incurred Losses and LAE
|
|
404.2
|
|
|
387.4
|
|
|
461.6
|
|
|||
Insurance Expenses
|
|
321.1
|
|
|
312.2
|
|
|
313.9
|
|
|||
Operating Profit
|
|
115.9
|
|
|
140.2
|
|
|
46.7
|
|
|||
Income Tax Expense
|
|
(24.4
|
)
|
|
(48.3
|
)
|
|
(15.7
|
)
|
|||
Segment Net Operating Income
|
|
$
|
91.5
|
|
|
$
|
91.9
|
|
|
$
|
31.0
|
|
DOLLARS IN MILLIONS
|
|
Dec 31,
2018 |
|
Dec 31,
2017 |
||||
Insurance Reserves:
|
|
|
|
|
||||
Future Policyholder Benefits
|
|
$
|
3,400.4
|
|
|
$
|
3,357.5
|
|
Incurred Losses and LAE Reserves:
|
|
|
|
|
||||
Life
|
|
130.5
|
|
|
140.0
|
|
||
Accident and Health
|
|
27.8
|
|
|
23.5
|
|
||
Property
|
|
4.4
|
|
|
4.1
|
|
||
Total Incurred Losses and LAE Reserves
|
|
162.7
|
|
|
167.6
|
|
||
Insurance Reserves
|
|
$
|
3,563.1
|
|
|
$
|
3,525.1
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Earned Premiums
|
|
$
|
378.4
|
|
|
$
|
379.7
|
|
|
381.6
|
|
|
Net Investment Income
|
|
202.6
|
|
|
216.0
|
|
|
207.3
|
|
|||
Other Income
|
|
3.5
|
|
|
2.4
|
|
|
2.3
|
|
|||
Total Revenues
|
|
584.5
|
|
|
598.1
|
|
|
591.2
|
|
|||
Policyholders’ Benefits and Incurred Losses and LAE
|
|
279.4
|
|
|
274.1
|
|
|
356.3
|
|
|||
Insurance Expenses
|
|
207.7
|
|
|
207.9
|
|
|
211.3
|
|
|||
Operating Profit
|
|
97.4
|
|
|
116.1
|
|
|
23.6
|
|
|||
Income Tax Expense
|
|
(20.7
|
)
|
|
(39.9
|
)
|
|
(7.8
|
)
|
|||
Total Product Line Net Operating Income
|
|
$
|
76.7
|
|
|
$
|
76.2
|
|
|
$
|
15.8
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Earned Premiums
|
|
$
|
177.5
|
|
|
$
|
161.7
|
|
|
$
|
149.4
|
|
Net Investment Income
|
|
6.1
|
|
|
5.2
|
|
|
5.4
|
|
|||
Other Income
|
|
0.5
|
|
|
0.2
|
|
|
0.5
|
|
|||
Total Revenues
|
|
184.1
|
|
|
167.1
|
|
|
155.3
|
|
|||
Policyholders’ Benefits and Incurred Losses and LAE
|
|
98.9
|
|
|
88.7
|
|
|
80.3
|
|
|||
Insurance Expenses
|
|
82.2
|
|
|
71.7
|
|
|
67.6
|
|
|||
Operating Profit
|
|
3.0
|
|
|
6.7
|
|
|
7.4
|
|
|||
Income Tax Expense
|
|
(0.6
|
)
|
|
(2.5
|
)
|
|
(2.5
|
)
|
|||
Total Product Line Net Operating Income
|
|
$
|
2.4
|
|
|
$
|
4.2
|
|
|
$
|
4.9
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Earned Premiums
|
|
$
|
70.4
|
|
|
$
|
72.6
|
|
|
$
|
74.2
|
|
Net Investment Income
|
|
2.2
|
|
|
2.0
|
|
|
1.5
|
|
|||
Total Revenues
|
|
72.6
|
|
|
74.6
|
|
|
75.7
|
|
|||
Incurred Losses and LAE related to:
|
|
|
|
|
|
|
||||||
Current Year:
|
|
|
|
|
|
|
||||||
Non-catastrophe Losses and LAE
|
|
20.5
|
|
|
17.8
|
|
|
19.6
|
|
|||
Catastrophe Losses and LAE
|
|
4.0
|
|
|
5.9
|
|
|
5.5
|
|
|||
Prior Years:
|
|
|
|
|
|
|
||||||
Non-catastrophe Losses and LAE
|
|
1.3
|
|
|
0.4
|
|
|
—
|
|
|||
Catastrophe Losses and LAE
|
|
0.1
|
|
|
0.5
|
|
|
(0.1
|
)
|
|||
Total Incurred Losses and LAE
|
|
25.9
|
|
|
24.6
|
|
|
25.0
|
|
|||
Insurance Expenses
|
|
31.2
|
|
|
32.6
|
|
|
35.0
|
|
|||
Operating Profit
|
|
15.5
|
|
|
17.4
|
|
|
15.7
|
|
|||
Income Tax Expense
|
|
(3.1
|
)
|
|
(5.9
|
)
|
|
(5.4
|
)
|
|||
Total Product Line Net Operating Income
|
|
$
|
12.4
|
|
|
$
|
11.5
|
|
|
$
|
10.3
|
|
Ratios Based On Earned Premiums
|
|
|
|
|
|
|
||||||
Current Year Non-catastrophe Losses and LAE Ratio
|
|
29.2
|
%
|
|
24.5
|
%
|
|
26.4
|
%
|
|||
Current Year Catastrophe Losses and LAE Ratio
|
|
5.7
|
|
|
8.1
|
|
|
7.4
|
|
|||
Prior Years Non-catastrophe Losses and LAE Ratio
|
|
1.8
|
|
|
0.6
|
|
|
—
|
|
|||
Prior Years Catastrophe Losses and LAE Ratio
|
|
0.1
|
|
|
0.7
|
|
|
(0.1
|
)
|
|||
Total Incurred Loss and LAE Ratio
|
|
36.8
|
%
|
|
33.9
|
%
|
|
33.7
|
%
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Investment Income (Loss):
|
|
|
|
|
|
|
||||||
Interest on Fixed Maturities
|
|
$
|
268.9
|
|
|
$
|
246.6
|
|
|
$
|
242.7
|
|
Dividends on Equity Securities Excluding Alternative Investments
|
|
13.6
|
|
|
9.3
|
|
|
11.8
|
|
|||
Alternative Investments:
|
|
|
|
|
|
|
||||||
Equity Method Limited Liability Investments
|
|
11.0
|
|
|
24.8
|
|
|
7.5
|
|
|||
Fair Value Option Investments
|
|
—
|
|
|
1.3
|
|
|
(1.9
|
)
|
|||
Limited Liability Investments Included in Equity Securities
|
|
26.4
|
|
|
28.6
|
|
|
22.0
|
|
|||
Total Alternative Investments
|
|
37.4
|
|
|
54.7
|
|
|
27.6
|
|
|||
Short-term Investments
|
|
7.0
|
|
|
1.6
|
|
|
0.5
|
|
|||
Loans to Policyholders
|
|
22.5
|
|
|
21.6
|
|
|
21.6
|
|
|||
Real Estate
|
|
9.6
|
|
|
10.7
|
|
|
11.8
|
|
|||
Other
|
|
0.9
|
|
|
0.5
|
|
|
0.3
|
|
|||
Total Investment Income
|
|
359.9
|
|
|
345.0
|
|
|
316.3
|
|
|||
Investment Expenses:
|
|
|
|
|
|
|
||||||
Real Estate
|
|
9.7
|
|
|
10.5
|
|
|
11.0
|
|
|||
Other Investment Expenses
|
|
9.3
|
|
|
7.3
|
|
|
7.0
|
|
|||
Total Investment Expenses
|
|
19.0
|
|
|
17.8
|
|
|
18.0
|
|
|||
Net Investment Income
|
|
$
|
340.9
|
|
|
$
|
327.2
|
|
|
$
|
298.3
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Recognized in Consolidated Statements of Income:
|
|
|
|
|
|
|
||||||
Loss from Change in Fair Value of Equity and Convertible Securities
|
|
$
|
(64.3
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Gains on Sales
|
|
37.6
|
|
|
56.9
|
|
|
38.0
|
|
|||
Losses on Sales
|
|
(11.2
|
)
|
|
(1.0
|
)
|
|
(5.1
|
)
|
|||
Net Impairment Losses Recognized in Earnings
|
|
(4.5
|
)
|
|
(14.3
|
)
|
|
(32.7
|
)
|
|||
Net Gains (Losses) on Trading Securities
|
|
—
|
|
|
0.6
|
|
|
0.2
|
|
|||
Net Gain (Loss) Recognized in Consolidated Statements of Income
|
|
(42.4
|
)
|
|
42.2
|
|
|
0.4
|
|
|||
Recognized in Other Comprehensive Income (Loss)
|
|
(235.8
|
)
|
|
85.5
|
|
|
(2.5
|
)
|
|||
Total Comprehensive Investment Gains (Losses)
|
|
$
|
(278.2
|
)
|
|
$
|
127.7
|
|
|
$
|
(2.1
|
)
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Fixed Maturities:
|
|
|
|
|
|
|
||||||
Gains on Sales
|
|
$
|
25.3
|
|
|
$
|
8.4
|
|
|
$
|
17.0
|
|
Losses on Sales
|
|
(11.1
|
)
|
|
(0.9
|
)
|
|
(4.6
|
)
|
|||
Equity Securities:
|
|
|
|
|
|
|
||||||
Gains on Sales
|
|
12.3
|
|
|
42.0
|
|
|
19.9
|
|
|||
Losses on Sales
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|||
Real Estate:
|
|
|
|
|
|
|
||||||
Gains on Sales
|
|
—
|
|
|
6.4
|
|
|
1.1
|
|
|||
Other Investments:
|
|
|
|
|
|
|
||||||
Gains on Sales
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|||
Losses on Sales
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(0.2
|
)
|
|||
Net Gains on Trading Securities
|
|
—
|
|
|
0.6
|
|
|
0.2
|
|
|||
Net Realized Gains on Sales of Investments
|
|
$
|
26.4
|
|
|
$
|
56.5
|
|
|
$
|
33.1
|
|
Gross Gains on Sales
|
|
$
|
37.6
|
|
|
$
|
56.9
|
|
|
$
|
38.0
|
|
Gross Losses on Sales
|
|
(11.2
|
)
|
|
(1.0
|
)
|
|
(5.1
|
)
|
|||
Net Gains on Trading Securities
|
|
—
|
|
|
0.6
|
|
|
0.2
|
|
|||
Net Realized Gains on Sales of Investments
|
|
$
|
26.4
|
|
|
$
|
56.5
|
|
|
$
|
33.1
|
|
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
DOLLARS IN MILLIONS
|
|
Amount
|
|
Number of Issuers/
Properties
|
|
Amount
|
|
Number of Issuers/
Properties
|
|
Amount
|
|
Number of Issuers/
Properties
|
|||||||||
Fixed Maturities
|
|
$
|
(2.0
|
)
|
|
24
|
|
$
|
(12.1
|
)
|
|
10
|
|
$
|
(26.6
|
)
|
|
12
|
|||
Equity Securities
|
|
(2.5
|
)
|
|
5
|
|
(2.2
|
)
|
|
5
|
|
(5.6
|
)
|
|
14
|
||||||
Real Estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
1
|
|
|||
Net Impairment Losses Recognized in Earnings
|
|
$
|
(4.5
|
)
|
|
|
|
|
$
|
(14.3
|
)
|
|
|
|
|
$
|
(32.7
|
)
|
|
|
|
|
|
Dec 31, 2018
|
|
Dec 31, 2017
|
||||||||||
DOLLARS IN MILLIONS
|
|
Fair Value
|
|
Percentage
of Total
Investments
|
|
Fair Value
|
|
Percentage
of Total
Investments
|
||||||
U.S. Government and Government Agencies and Authorities
|
|
$
|
865.7
|
|
|
10.7
|
%
|
|
$
|
556.1
|
|
|
8.2
|
%
|
States and Political Subdivisions:
|
|
|
|
|
|
|
|
|
||||||
States
|
|
479.7
|
|
|
5.9
|
|
|
594.0
|
|
|
8.7
|
|
||
Political Subdivisions
|
|
147.8
|
|
|
1.8
|
|
|
171.1
|
|
|
2.5
|
|
||
Revenue Bonds
|
|
991.6
|
|
|
12.3
|
|
|
936.7
|
|
|
13.8
|
|
||
Foreign Governments
|
|
5.9
|
|
|
0.1
|
|
|
3.2
|
|
|
—
|
|
||
Total Investments in Governmental Fixed Maturities
|
|
$
|
2,490.7
|
|
|
30.8
|
%
|
|
$
|
2,261.1
|
|
|
33.2
|
%
|
|
|
Dec 31, 2018
|
|
Dec 31, 2017
|
||||||||||
DOLLARS IN MILLIONS
|
|
Fair Value
|
|
Percentage
of Total
Investments
|
|
Fair Value
|
|
Percentage
of Total
Investments
|
||||||
Manufacturing
|
|
$
|
1,270.0
|
|
|
15.7
|
%
|
|
$
|
1,168.8
|
|
|
17.2
|
%
|
Finance, Insurance and Real Estate
|
|
1,269.3
|
|
|
15.7
|
|
|
780.2
|
|
|
11.5
|
|
||
Services
|
|
516.4
|
|
|
6.4
|
|
|
453.3
|
|
|
6.7
|
|
||
Transportation, Communication and Utilities
|
|
449.0
|
|
|
5.6
|
|
|
353.7
|
|
|
5.2
|
|
||
Retail Trade
|
|
164.8
|
|
|
2.0
|
|
|
102.6
|
|
|
1.5
|
|
||
Mining
|
|
158.6
|
|
|
2.0
|
|
|
163.5
|
|
|
2.4
|
|
||
Wholesale Trade
|
|
78.4
|
|
|
1.0
|
|
|
81.3
|
|
|
1.2
|
|
||
Agriculture, Forestry and Fishing
|
|
13.7
|
|
|
0.2
|
|
|
14.5
|
|
|
0.2
|
|
||
Other
|
|
13.3
|
|
|
0.2
|
|
|
3.7
|
|
|
0.1
|
|
||
Total Investments in Non-governmental Fixed Maturities
|
|
$
|
3,933.5
|
|
|
48.8
|
%
|
|
$
|
3,121.6
|
|
|
46.0
|
%
|
DOLLARS IN MILLIONS
|
|
Number of Issuers
|
|
Aggregate Fair Value
|
|||
Below $5
|
|
478
|
|
|
$
|
1,129.2
|
|
$5 -$10
|
|
149
|
|
|
1,083.5
|
|
|
$10 - $20
|
|
95
|
|
|
1,338.2
|
|
|
$20 - $30
|
|
16
|
|
|
352.5
|
|
|
Greater Than $30
|
|
1
|
|
|
30.1
|
|
|
Total
|
|
739
|
|
|
$
|
3,933.5
|
|
DOLLARS IN MILLIONS
|
|
Fair
Value
|
|
Percentage
of Total
Investments
|
|||||
Fixed Maturities:
|
|
|
|
|
|||||
States including their Political Subdivisions:
|
|
|
|
|
|||||
Texas
|
|
$
|
132.9
|
|
|
1.6
|
%
|
||
Georgia
|
|
89.1
|
|
|
1.1
|
|
|||
Michigan
|
|
81.7
|
|
|
1.0
|
|
|||
Colorado
|
|
80.8
|
|
|
1.0
|
|
|||
Louisiana
|
|
71.7
|
|
|
0.9
|
|
|||
Virginia
|
|
62.9
|
|
|
0.8
|
|
|||
California
|
|
62.1
|
|
|
0.8
|
|
|||
Washington
|
|
58.1
|
|
|
0.7
|
|
|||
Equity Securities at Fair Value
—
Other Equity Interests:
|
|
|
|
|
|||||
Vanguard World Stock ETF
|
|
77.6
|
|
|
1.0
|
|
|||
iShares
®
Core MSCI Total International Stock ETF
|
|
68.9
|
|
|
0.9
|
|
|||
Total
|
|
$
|
785.8
|
|
|
9.8
|
%
|
|
|
Unfunded
Commitment
in Millions
|
|
Reported Value in Millions
|
||||||||
Asset Class
|
|
Dec 31,
2018 |
|
Dec 31,
2018 |
|
Dec 31,
2017 |
||||||
Reported as Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings:
|
|
|
|
|
|
|
||||||
Mezzanine Debt
|
|
$
|
71.3
|
|
|
$
|
99.6
|
|
|
$
|
73.0
|
|
Senior Debt
|
|
22.4
|
|
|
15.4
|
|
|
4.8
|
|
|||
Distressed Debt
|
|
—
|
|
|
34.5
|
|
|
47.5
|
|
|||
Secondary Transactions
|
|
18.7
|
|
|
21.2
|
|
|
20.6
|
|
|||
Leveraged Buyout
|
|
—
|
|
|
4.2
|
|
|
3.3
|
|
|||
Growth Equity
|
|
—
|
|
|
5.4
|
|
|
5.7
|
|
|||
Other
|
|
—
|
|
|
6.7
|
|
|
6.1
|
|
|||
Total Equity Method Limited Liability Investments
|
|
112.4
|
|
|
187.0
|
|
|
161.0
|
|
|||
Reported as Equity Securities at Fair Value:
|
|
|
|
|
|
|
||||||
Mezzanine Debt
|
|
93.1
|
|
|
111.7
|
|
|
102.2
|
|
|||
Senior Debt
|
|
33.4
|
|
|
34.3
|
|
|
35.5
|
|
|||
Distressed Debt
|
|
2.2
|
|
|
14.5
|
|
|
16.6
|
|
|||
Secondary Transactions
|
|
10.3
|
|
|
6.7
|
|
|
8.9
|
|
|||
Hedge Funds
|
|
—
|
|
|
14.7
|
|
|
—
|
|
|||
Leveraged Buyout
|
|
2.9
|
|
|
4.2
|
|
|
6.3
|
|
|||
Other
|
|
6.3
|
|
|
5.9
|
|
|
33.4
|
|
|||
Total Reported as Other Equity Interests at Fair Value
|
|
148.2
|
|
|
192.0
|
|
|
202.9
|
|
|||
Reported as Equity Securities at Modified Cost:
|
|
|
|
|
|
|
||||||
Mezzanine Debt
|
|
—
|
|
|
1.5
|
|
|
—
|
|
|||
Other
|
|
0.1
|
|
|
22.1
|
|
|
—
|
|
|||
Total Reported as Equity Securities at Modified Cost
|
|
0.1
|
|
|
23.6
|
|
|
—
|
|
|||
Reported as Fair Value Option Investments:
|
|
|
|
|
|
|
||||||
Hedge Fund
|
|
—
|
|
|
—
|
|
|
77.5
|
|
|||
Total Investments in Limited Liability Companies and Limited Partnerships
|
|
$
|
260.7
|
|
|
$
|
402.6
|
|
|
$
|
441.4
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Insurance Expenses:
|
|
|
|
|
|
|
||||||
Commissions
|
|
$
|
558.7
|
|
|
$
|
425.6
|
|
|
$
|
399.2
|
|
General Expenses
|
|
229.7
|
|
|
194.1
|
|
|
209.0
|
|
|||
Taxes, Licenses and Fees
|
|
73.2
|
|
|
52.8
|
|
|
48.8
|
|
|||
Total Costs Incurred
|
|
861.6
|
|
|
672.5
|
|
|
657.0
|
|
|||
Policy Acquisition Costs:
|
|
|
|
|
|
|
||||||
Deferred
|
|
(481.5
|
)
|
|
(351.6
|
)
|
|
(314.9
|
)
|
|||
Amortized
|
|
377.1
|
|
|
318.3
|
|
|
299.3
|
|
|||
Net Policy Acquisition Costs Deferred
|
|
(104.4
|
)
|
|
(33.3
|
)
|
|
(15.6
|
)
|
|||
Amortization of VOBA
|
|
143.3
|
|
|
5.1
|
|
|
5.9
|
|
|||
Insurance Expenses
|
|
900.5
|
|
|
644.3
|
|
|
647.3
|
|
|||
Interest Expense
|
|
43.4
|
|
|
34.9
|
|
|
44.4
|
|
|||
Other Expenses:
|
|
|
|
|
|
|
||||||
Curtailment Gains, Net
|
|
—
|
|
|
—
|
|
|
(2.6
|
)
|
|||
Loss on Cash Flow Hedge
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|||
Acquisition Related Transaction, Integration and Other Costs
|
|
44.7
|
|
|
—
|
|
|
—
|
|
|||
Other
|
|
70.9
|
|
|
44.6
|
|
|
48.5
|
|
|||
Other Expenses
|
|
115.6
|
|
|
45.7
|
|
|
45.9
|
|
|||
Interest and Other Expenses
|
|
159.0
|
|
|
80.6
|
|
|
90.3
|
|
|||
Total Expenses
|
|
$
|
1,059.5
|
|
|
$
|
724.9
|
|
|
$
|
737.6
|
|
DOLLARS IN MILLIONS
|
|
Jan 1, 2019
to
Dec 31, 2019
|
|
Jan 1, 2020
to
Dec 31, 2021
|
|
Jan 1, 2022
to
Dec 31, 2023
|
|
After
Dec 31, 2023
|
|
Total
|
||||||||||
Long Term Debt Obligations
|
|
$
|
10.0
|
|
|
$
|
35.0
|
|
|
$
|
275.0
|
|
|
$
|
600.0
|
|
|
$
|
920.0
|
|
Capital Lease Obligations
|
|
0.7
|
|
|
1.0
|
|
|
0.2
|
|
|
—
|
|
|
1.9
|
|
|||||
Operating Lease Obligations
|
|
20.5
|
|
|
35.3
|
|
|
27.5
|
|
|
27.1
|
|
|
110.4
|
|
|||||
Purchase Obligations
|
|
20.2
|
|
|
20.8
|
|
|
2.2
|
|
|
—
|
|
|
43.2
|
|
|||||
Life and Health Insurance Policy Benefits
|
|
295.0
|
|
|
478.2
|
|
|
457.3
|
|
|
6,847.2
|
|
|
8,077.7
|
|
|||||
Property and Casualty Insurance Reserves
|
|
1,114.8
|
|
|
573.1
|
|
|
109.8
|
|
|
77.2
|
|
|
1,874.9
|
|
|||||
Other Contractual Obligations Reflected in Long Term Liabilities on the Consolidated Balance Sheet under GAAP
|
|
49.7
|
|
|
100.1
|
|
|
102.7
|
|
|
452.2
|
|
|
704.7
|
|
|||||
Total Contractual Obligations
|
|
$
|
1,510.9
|
|
|
$
|
1,243.5
|
|
|
$
|
974.7
|
|
|
$
|
8,003.7
|
|
|
$
|
11,732.8
|
|
•
|
The financial condition, credit rating and prospects of the issuer;
|
•
|
The length of time and magnitude of the unrealized loss;
|
•
|
The ability of the issuer to make scheduled principal and interest payments;
|
•
|
The volatility of the investment;
|
•
|
Opinions of the Company’s external investment managers;
|
•
|
The financial condition and prospects of the issuer;
|
•
|
Current market conditions;
|
•
|
Changes in credit ratings; and
|
•
|
Changes in the regulatory environment.
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
||||
Business Segments:
|
|
|
|
|
||||
Preferred Property & Casualty Insurance
|
|
$
|
452.9
|
|
|
$
|
461.9
|
|
Specialty Property & Casualty Insurance
|
|
1,387.0
|
|
|
514.4
|
|
||
Life & Health Insurance
|
|
4.4
|
|
|
4.1
|
|
||
Total Business Segments
|
|
1,844.3
|
|
|
980.4
|
|
||
Discontinued Operations
|
|
27.4
|
|
|
33.1
|
|
||
Unallocated Reserves
|
|
3.2
|
|
|
3.3
|
|
||
Total Property and Casualty Insurance Reserves
|
|
$
|
1,874.9
|
|
|
$
|
1,016.8
|
|
•
|
Incurred Loss Development Methodology;
|
•
|
Paid Loss Development Methodology;
|
•
|
Bornhuetter-Ferguson Incurred Loss Methodology;
|
•
|
Bornhuetter-Ferguson Paid Loss Methodology; and
|
•
|
Frequency and Severity Methodology.
|
•
|
Changes in the level of minimum case reserves, and the automatic aging of those minimum case reserves;
|
•
|
Changes to claims practices, including, but not limited to, changes in the reporting and impact of large losses, timing of reported claims, changes in claims closing and re-opening patterns, adequacy of case reserves, implementation of new systems for handling claims, turnover of claims department staffs, timing and depth of the audit review of claims handling procedures;
|
•
|
Changes in underwriting practices;
|
•
|
Changes in the mix of business by state, class and policy limit within product line;
|
•
|
Growth in new lines of business;
|
•
|
Changes in the attachment points of the Company’s reinsurance programs;
|
•
|
Medical costs, including, but not limited to, the ability to assess the extent of injuries and the impact of inflation;
|
•
|
Repair costs, including, but not limited to, the impact of inflation and the availability of labor and materials;
|
•
|
Changes in the judicial environment, including, but not limited to, the interpretation of policy provisions, the impact of jury awards and changes in case law; and
|
•
|
Changes in state regulatory requirements.
|
DOLLARS IN MILLIONS
|
|
Favorable (Adverse) Development
|
||||||||||
2018
|
|
2017
|
|
2016
|
||||||||
Continuing Operations:
|
|
|
|
|
|
|
||||||
Preferred Property & Casualty Insurance:
|
|
|
|
|
|
|
||||||
Preferred Personal Automobile Insurance
|
|
$
|
5.8
|
|
|
$
|
(19.3
|
)
|
|
$
|
(4.6
|
)
|
Homeowners Insurance
|
|
(3.2
|
)
|
|
(1.0
|
)
|
|
20.0
|
|
|||
Other Personal Lines
|
|
5.7
|
|
|
4.6
|
|
|
8.0
|
|
|||
Specialty Property & Casualty Insurance:
|
|
|
|
|
|
|
||||||
Specialty Personal Automobile Insurance
|
|
(5.5
|
)
|
|
(2.9
|
)
|
|
(6.7
|
)
|
|||
Commercial Automobile Insurance
|
|
3.8
|
|
|
(0.9
|
)
|
|
(2.4
|
)
|
|||
Life & Health Insurance:
|
|
|
|
|
|
|
||||||
Property
|
|
(1.4
|
)
|
|
(0.9
|
)
|
|
0.1
|
|
|||
Total Favorable (Adverse) Development from Continuing Operations, Net
|
|
5.2
|
|
|
(20.4
|
)
|
|
14.4
|
|
|||
Discontinued Operations
|
|
2.2
|
|
|
1.5
|
|
|
6.3
|
|
|||
Total Favorable (Adverse) Development, Net
|
|
$
|
7.4
|
|
|
$
|
(18.9
|
)
|
|
$
|
20.7
|
|
•
|
Estimated mortality of the participants and beneficiaries eligible for benefits;
|
•
|
Estimated expected long-term rates of returns on investments; and
|
•
|
Estimated rate used to discount the expected benefit payment to a present value.
|
1.
|
Investments in Fixed Maturities;
|
2.
|
Investments in Equity Securities at Fair Value; and
|
3.
|
Debt.
|
DOLLARS IN MILLIONS
|
|
Fair Value
|
|
Pro Forma Increase (Decrease)
|
||||||||||||
Interest
Rate Risk
|
|
Equity
Price Risk
|
|
Total
Market Risk
|
||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
||||||||
Investments in Fixed Maturities
|
|
$
|
6,424.2
|
|
|
$
|
(393.5
|
)
|
|
$
|
—
|
|
|
$
|
(393.5
|
)
|
Investments in Equity Securities
|
|
684.4
|
|
|
(7.4
|
)
|
|
(175.6
|
)
|
|
(183.0
|
)
|
||||
LIABILITIES
|
|
|
|
|
|
|
|
|
||||||||
Debt
|
|
$
|
911.2
|
|
|
$
|
34.3
|
|
|
$
|
—
|
|
|
$
|
34.3
|
|
DOLLARS IN MILLIONS
|
|
Fair Value
|
|
Pro Forma Increase (Decrease)
|
||||||||||||
Interest
Rate Risk
|
|
Equity
Price Risk
|
|
Total
Market Risk
|
||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
||||||||
Investments in Fixed Maturities
|
|
$
|
5,382.7
|
|
|
$
|
(322.4
|
)
|
|
$
|
—
|
|
|
$
|
(322.4
|
)
|
Investments in Equity Securities
|
|
526.0
|
|
|
(6.3
|
)
|
|
(134.9
|
)
|
|
(141.2
|
)
|
||||
Fair Value Option Investments
|
|
77.5
|
|
|
—
|
|
|
(1.4
|
)
|
|
(1.4
|
)
|
||||
LIABILITIES
|
|
|
|
|
|
|
|
|
||||||||
Debt
|
|
$
|
614.6
|
|
|
$
|
30.1
|
|
|
$
|
—
|
|
|
$
|
30.1
|
|
|
|
For the Years Ended December 31,
|
||||||||||
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||
Earned Premiums
|
|
$
|
3,384.4
|
|
|
$
|
2,350.0
|
|
|
$
|
2,220.0
|
|
Net Investment Income
|
|
340.9
|
|
|
327.2
|
|
|
298.3
|
|
|||
Other Income
|
|
42.2
|
|
|
4.0
|
|
|
3.2
|
|
|||
Loss from Change in Fair Value of Equity and Convertible Securities
|
|
(64.3
|
)
|
|
—
|
|
|
—
|
|
|||
Net Realized Gains on Sales of Investments
|
|
26.4
|
|
|
56.5
|
|
|
33.1
|
|
|||
Other-than-temporary Impairment Losses:
|
|
|
|
|
|
|
||||||
Total Other-than-temporary Impairment Losses
|
|
(4.5
|
)
|
|
(14.4
|
)
|
|
(33.0
|
)
|
|||
Portion of Losses Recognized in Other Comprehensive Income
|
|
—
|
|
|
0.1
|
|
|
0.3
|
|
|||
Net Impairment Losses Recognized in Earnings
|
|
(4.5
|
)
|
|
(14.3
|
)
|
|
(32.7
|
)
|
|||
Total Revenues
|
|
3,725.1
|
|
|
2,723.4
|
|
|
2,521.9
|
|
|||
Expenses:
|
|
|
|
|
|
|
||||||
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses
|
|
2,466.5
|
|
|
1,837.4
|
|
|
1,780.8
|
|
|||
Insurance Expenses
|
|
900.5
|
|
|
644.3
|
|
|
647.3
|
|
|||
Interest and Other Expenses
|
|
159.0
|
|
|
80.6
|
|
|
90.3
|
|
|||
Total Expenses
|
|
3,526.0
|
|
|
2,562.3
|
|
|
2,518.4
|
|
|||
Income from Continuing Operations before Income Taxes
|
|
199.1
|
|
|
161.1
|
|
|
3.5
|
|
|||
Income Tax Benefit (Expense)
|
|
(10.7
|
)
|
|
(41.2
|
)
|
|
9.2
|
|
|||
Income from Continuing Operations
|
|
188.4
|
|
|
119.9
|
|
|
12.7
|
|
|||
Income from Discontinued Operations
|
|
1.7
|
|
|
1.0
|
|
|
4.1
|
|
|||
Net Income
|
|
$
|
190.1
|
|
|
$
|
120.9
|
|
|
$
|
16.8
|
|
Income from Continuing Operations Per Unrestricted Share:
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
3.22
|
|
|
$
|
2.32
|
|
|
$
|
0.25
|
|
Diluted
|
|
$
|
3.19
|
|
|
$
|
2.31
|
|
|
$
|
0.25
|
|
Net Income Per Unrestricted Share:
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
3.25
|
|
|
$
|
2.34
|
|
|
$
|
0.33
|
|
Diluted
|
|
$
|
3.22
|
|
|
$
|
2.33
|
|
|
$
|
0.33
|
|
|
|
For The Years Ended December 31,
|
||||||||||
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net Income
|
|
$
|
190.1
|
|
|
$
|
120.9
|
|
|
$
|
16.8
|
|
|
|
|
|
|
|
|
||||||
Other Comprehensive Income (Loss) Before Income Taxes:
|
|
|
|
|
|
|
||||||
Unrealized Holding Gains (Losses)
|
|
(236.1
|
)
|
|
83.8
|
|
|
(2.2
|
)
|
|||
Foreign Currency Translation Adjustments
|
|
0.3
|
|
|
1.7
|
|
|
(0.3
|
)
|
|||
Decrease (Increase) in Net Unrecognized Postretirement Benefit Costs
|
|
(6.9
|
)
|
|
3.3
|
|
|
20.5
|
|
|||
Gain (Loss) on Cash Flow Hedge
|
|
1.2
|
|
|
(6.7
|
)
|
|
1.6
|
|
|||
Other Comprehensive Income (Loss) Before Income Taxes
|
|
(241.5
|
)
|
|
82.1
|
|
|
19.6
|
|
|||
Other Comprehensive Income Tax Benefit (Expense)
|
|
50.7
|
|
|
(24.7
|
)
|
|
(6.9
|
)
|
|||
Other Comprehensive Income (Loss)
|
|
(190.8
|
)
|
|
57.4
|
|
|
12.7
|
|
|||
Total Comprehensive Income (Loss)
|
|
$
|
(0.7
|
)
|
|
$
|
178.3
|
|
|
$
|
29.5
|
|
|
December 31,
|
||||||
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
|
2018
|
|
2017
|
||||
Assets:
|
|
|
|
||||
Investments:
|
|
|
|
||||
Fixed Maturities at Fair Value (Amortized Cost: 2018 - $6,284.5; 2017 - $5,021.6)
|
$
|
6,424.2
|
|
|
$
|
5,382.7
|
|
Equity Securities at Fair Value
|
684.4
|
|
|
526.0
|
|
||
Equity Securities at Modified Cost
|
41.5
|
|
|
—
|
|
||
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings
|
187.0
|
|
|
161.0
|
|
||
Convertible Securities at Fair Value
|
31.5
|
|
|
—
|
|
||
Fair Value Option Investments
|
—
|
|
|
77.5
|
|
||
Short-term Investments at Cost which Approximates Fair Value
|
286.1
|
|
|
235.5
|
|
||
Other Investments
|
414.8
|
|
|
422.2
|
|
||
Total Investments
|
8,069.5
|
|
|
6,804.9
|
|
||
Cash
|
75.1
|
|
|
45.7
|
|
||
Receivables from Policyholders
|
1,007.1
|
|
|
366.0
|
|
||
Other Receivables
|
245.4
|
|
|
194.3
|
|
||
Deferred Policy Acquisition Costs
|
470.0
|
|
|
365.3
|
|
||
Goodwill
|
1,112.4
|
|
|
323.0
|
|
||
Current Income Tax Assets
|
38.9
|
|
|
6.1
|
|
||
Other Assets
|
526.5
|
|
|
270.9
|
|
||
Total Assets
|
$
|
11,544.9
|
|
|
$
|
8,376.2
|
|
Liabilities and Shareholders’ Equity:
|
|
|
|
||||
Insurance Reserves:
|
|
|
|
||||
Life and Health
|
$
|
3,558.7
|
|
|
$
|
3,521.0
|
|
Property and Casualty
|
1,874.9
|
|
|
1,016.8
|
|
||
Total Insurance Reserves
|
5,433.6
|
|
|
4,537.8
|
|
||
Unearned Premiums
|
1,424.3
|
|
|
653.9
|
|
||
Deferred Income Tax Liabilities
|
26.2
|
|
|
14.8
|
|
||
Liabilities for Unrecognized Tax Benefits
|
4.4
|
|
|
8.1
|
|
||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2018 - $911.2; 2017 - $614.6)
|
909.0
|
|
|
592.3
|
|
||
Accrued Expenses and Other Liabilities
|
697.3
|
|
|
453.7
|
|
||
Total Liabilities
|
8,494.8
|
|
|
6,260.6
|
|
||
Shareholders’ Equity:
|
|
|
|
||||
Common Stock, $0.10 Par Value Per Share, 100 Million Shares Authorized; 64,756,833 Shares Issued and Outstanding at December 31, 2018 and 51,462,405 Shares Issued and Outstanding at December 31, 2017
|
6.5
|
|
|
5.1
|
|
||
Paid-in Capital
|
1,666.3
|
|
|
673.1
|
|
||
Retained Earnings
|
1,355.5
|
|
|
1,243.0
|
|
||
Accumulated Other Comprehensive Income
|
21.8
|
|
|
194.4
|
|
||
Total Shareholders’ Equity
|
3,050.1
|
|
|
2,115.6
|
|
||
Total Liabilities and Shareholders’ Equity
|
$
|
11,544.9
|
|
|
$
|
8,376.2
|
|
|
For The Years Ended December 31,
|
||||||||||
DOLLARS IN MILLIONS
|
2018
|
|
2017
|
|
2016
|
||||||
Operating Activities:
|
|
|
|
|
|
||||||
Net Income
|
$
|
190.1
|
|
|
$
|
120.9
|
|
|
$
|
16.8
|
|
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
|
|
|
|
|
|
||||||
Increase in Deferred Policy Acquisition Costs
|
(104.6
|
)
|
|
(33.3
|
)
|
|
(15.6
|
)
|
|||
Amortization of Intangible Assets Acquired
|
156.3
|
|
|
5.1
|
|
|
5.9
|
|
|||
Equity in Earnings of Equity Method Limited Liability Investments
|
(11.0
|
)
|
|
(24.8
|
)
|
|
(7.5
|
)
|
|||
Distribution of Accumulated Earnings of Equity Method Limited Liability Investments
|
13.9
|
|
|
19.6
|
|
|
15.7
|
|
|||
Decrease (Increase) in Value of Fair Value Option Investments reported in Investment Income
|
—
|
|
|
(1.3
|
)
|
|
1.9
|
|
|||
Decrease in Value of Equity and Convertible Securities at Fair Value
|
64.3
|
|
|
—
|
|
|
—
|
|
|||
Amortization of Investment Securities and Depreciation of Investment Real Estate
|
7.7
|
|
|
16.7
|
|
|
16.2
|
|
|||
Net Realized Gains on Sales of Investments
|
(26.4
|
)
|
|
(56.5
|
)
|
|
(33.1
|
)
|
|||
Net Impairment Losses Recognized in Earnings
|
4.5
|
|
|
14.3
|
|
|
32.7
|
|
|||
Depreciation of Property and Equipment
|
15.6
|
|
|
13.1
|
|
|
13.6
|
|
|||
Increase in Other Receivables
|
(80.7
|
)
|
|
(29.2
|
)
|
|
(11.0
|
)
|
|||
Increase in Insurance Reserves
|
183.2
|
|
|
131.1
|
|
|
201.8
|
|
|||
Increase in Unearned Premiums
|
54.7
|
|
|
35.2
|
|
|
5.6
|
|
|||
Change in Income Taxes
|
13.1
|
|
|
28.9
|
|
|
(6.5
|
)
|
|||
Increase in Accrued Expenses and Other Liabilities
|
49.9
|
|
|
2.9
|
|
|
3.3
|
|
|||
Other, Net
|
8.6
|
|
|
(2.1
|
)
|
|
0.7
|
|
|||
Net Cash Provided by Operating Activities
|
539.2
|
|
|
240.6
|
|
|
240.5
|
|
|||
Investing Activities:
|
|
|
|
|
|
||||||
Sales, Paydowns and Maturities of Fixed Maturities
|
2,643.3
|
|
|
528.2
|
|
|
532.3
|
|
|||
Purchases of Fixed Maturities
|
(2,413.2
|
)
|
|
(710.1
|
)
|
|
(850.3
|
)
|
|||
Sales of Equity Securities
|
351.9
|
|
|
342.0
|
|
|
158.9
|
|
|||
Purchases of Equity Securities
|
(478.5
|
)
|
|
(342.7
|
)
|
|
(90.1
|
)
|
|||
Acquisition and Improvements of Investment Real Estate
|
(1.5
|
)
|
|
(1.5
|
)
|
|
(2.2
|
)
|
|||
Sales of Investment Real Estate
|
—
|
|
|
26.7
|
|
|
7.5
|
|
|||
Sales of and Return of Investment of Equity Method Limited Liability Investments
|
14.1
|
|
|
48.1
|
|
|
41.0
|
|
|||
Acquisitions of Equity Method Limited Liability Investments
|
(43.1
|
)
|
|
(27.9
|
)
|
|
(34.6
|
)
|
|||
Sales of Fair Value Option Investments
|
—
|
|
|
42.2
|
|
|
72.2
|
|
|||
Purchases of Fair Value Option Investments
|
—
|
|
|
(7.0
|
)
|
|
(21.0
|
)
|
|||
Decrease (Increase) in Short-term Investments
|
52.7
|
|
|
39.4
|
|
|
(18.0
|
)
|
|||
Acquisition of Businesses, Net of Cash Acquired
|
(560.6
|
)
|
|
—
|
|
|
—
|
|
|||
Increase in Other Investments
|
(2.0
|
)
|
|
(4.5
|
)
|
|
(5.7
|
)
|
|||
Purchase of Corporate-owned Life Insurance
|
—
|
|
|
—
|
|
|
(7.5
|
)
|
|||
Acquisition of Software and Long-lived Assets
|
(65.3
|
)
|
|
(35.5
|
)
|
|
(17.6
|
)
|
|||
Other, Net
|
4.6
|
|
|
(2.8
|
)
|
|
(3.0
|
)
|
|||
Net Cash Used by Investing Activities
|
(497.6
|
)
|
|
(105.4
|
)
|
|
(238.1
|
)
|
|||
Financing Activities:
|
|
|
|
|
|
||||||
Net Proceeds from Issuances of Debt
|
249.4
|
|
|
200.2
|
|
|
—
|
|
|||
Repayments of Debt
|
(215.0
|
)
|
|
(360.0
|
)
|
|
—
|
|
|||
Proceeds from Advances from FHLB
|
10.0
|
|
|
—
|
|
|
—
|
|
|||
Common Stock Repurchases
|
—
|
|
|
—
|
|
|
(3.8
|
)
|
|||
Dividends and Dividend Equivalents Paid
|
(56.4
|
)
|
|
(49.5
|
)
|
|
(49.2
|
)
|
|||
Cash Exercise of Stock Options
|
0.9
|
|
|
4.0
|
|
|
3.5
|
|
|||
Other, Net
|
(1.1
|
)
|
|
0.1
|
|
|
1.1
|
|
|||
Net Cash Used by Financing Activities
|
(12.2
|
)
|
|
(205.2
|
)
|
|
(48.4
|
)
|
|||
Increase (Decrease) in Cash
|
29.4
|
|
|
(70.0
|
)
|
|
(46.0
|
)
|
|||
Cash, Beginning of Year
|
45.7
|
|
|
115.7
|
|
|
161.7
|
|
|||
Cash, End of Year
|
$
|
75.1
|
|
|
$
|
45.7
|
|
|
$
|
115.7
|
|
DOLLARS AND SHARES IN MILLIONS,
EXCEPT PER SHARE AMOUNTS
|
|
For the Years Ended December 31, 2018, 2017 and 2016
|
|||||||||||||||||||||
Number of
Shares
|
|
Common
Stock
|
|
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income
|
|
Total
Shareholders’
Equity
|
|||||||||||||
BALANCE, DECEMBER 31, 2015
|
|
51.3
|
|
|
$
|
5.1
|
|
|
$
|
654.0
|
|
|
$
|
1,209.0
|
|
|
$
|
124.3
|
|
|
$
|
1,992.4
|
|
Net Income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16.8
|
|
|
—
|
|
|
16.8
|
|
|||||
Other Comprehensive Income (Note 12)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.7
|
|
|
12.7
|
|
|||||
Cash Dividends and Dividend Equivalents to Shareholders ($0.96 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(49.2
|
)
|
|
—
|
|
|
(49.2
|
)
|
|||||
Repurchases of Common Stock
|
|
(0.1
|
)
|
|
—
|
|
|
(1.8
|
)
|
|
(2.0
|
)
|
|
—
|
|
|
(3.8
|
)
|
|||||
Equity-based Compensation Cost (Note 10)
|
|
—
|
|
|
—
|
|
|
4.7
|
|
|
—
|
|
|
—
|
|
|
4.7
|
|
|||||
Equity-based Awards, Net of Shares Exchanged (Note 10)
|
|
0.1
|
|
|
—
|
|
|
3.4
|
|
|
(1.8
|
)
|
|
—
|
|
|
1.6
|
|
|||||
BALANCE, DECEMBER 31, 2016
|
|
51.3
|
|
|
$
|
5.1
|
|
|
$
|
660.3
|
|
|
$
|
1,172.8
|
|
|
$
|
137.0
|
|
|
$
|
1,975.2
|
|
Cumulative Effect of Adoption of New Accounting Standards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|||||
Net Income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
120.9
|
|
|
—
|
|
|
120.9
|
|
|||||
Other Comprehensive Income (Note 12)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57.4
|
|
|
57.4
|
|
|||||
Cash Dividends and Dividend Equivalents to Shareholders ($0.96 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(49.5
|
)
|
|
—
|
|
|
(49.5
|
)
|
|||||
Equity-based Compensation Cost (Note 10)
|
|
—
|
|
|
—
|
|
|
9.4
|
|
|
—
|
|
|
—
|
|
|
9.4
|
|
|||||
Equity-based Awards, Net of Shares Exchanged (Note 10)
|
|
0.2
|
|
|
—
|
|
|
3.4
|
|
|
(1.7
|
)
|
|
—
|
|
|
1.7
|
|
|||||
BALANCE, DECEMBER 31, 2017 As Reported
|
|
51.5
|
|
|
$
|
5.1
|
|
|
$
|
673.1
|
|
|
$
|
1,243.0
|
|
|
$
|
194.4
|
|
|
$
|
2,115.6
|
|
Cumulative Effect of Adoption of New Accounting Standards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18.2
|
)
|
|
18.2
|
|
|
—
|
|
|||||
BALANCE, JANUARY 1, 2018 As Adjusted
|
|
51.5
|
|
|
$
|
5.1
|
|
|
$
|
673.1
|
|
|
$
|
1,224.8
|
|
|
$
|
212.6
|
|
|
$
|
2,115.6
|
|
Net Income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
190.1
|
|
|
—
|
|
|
190.1
|
|
|||||
Other Comprehensive Loss (Note 12)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(190.8
|
)
|
|
(190.8
|
)
|
|||||
Cash Dividends and Dividend Equivalents to Shareholders ($0.96 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(56.4
|
)
|
|
—
|
|
|
(56.4
|
)
|
|||||
Issuances of Common Stock (Note 3)
|
|
13.1
|
|
|
1.4
|
|
|
977.2
|
|
|
—
|
|
|
—
|
|
|
978.6
|
|
|||||
Equity-based Compensation Cost (Note 10)
|
|
—
|
|
|
—
|
|
|
18.6
|
|
|
—
|
|
|
—
|
|
|
18.6
|
|
|||||
Equity-based Awards, Net of Shares Exchanged (Note 10)
|
|
0.1
|
|
|
—
|
|
|
(2.6
|
)
|
|
(3.0
|
)
|
|
—
|
|
|
(5.6
|
)
|
|||||
BALANCE, DECEMBER 31, 2018
|
|
64.7
|
|
|
$
|
6.5
|
|
|
$
|
1,666.3
|
|
|
$
|
1,355.5
|
|
|
$
|
21.8
|
|
|
$
|
3,050.1
|
|
•
|
Level 1 — Quoted prices in an active market for identical assets or liabilities;
|
•
|
Level 2 — Observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and
|
•
|
Level 3 — Significant unobservable inputs for the asset or liability being measured.
|
DOLLARS IN MILLIONS
|
|
|
||
Investments
|
|
$
|
1,569.3
|
|
Short Term Investments
|
|
98.8
|
|
|
Cash
|
|
4.0
|
|
|
Receivables from Policyholders
|
|
583.4
|
|
|
Other Receivables
|
|
31.7
|
|
|
Value of Intangible Assets Acquired (Reported in Other Assets)
|
|
262.7
|
|
|
Current Income Tax Assets
|
|
0.8
|
|
|
Goodwill
1
|
|
789.4
|
|
|
Other Assets
|
|
102.1
|
|
|
Property and Casualty Insurance Reserves
|
|
(713.6
|
)
|
|
Unearned Premiums
|
|
(715.6
|
)
|
|
Debt
|
|
(282.1
|
)
|
|
Deferred Income Tax Liabilities
|
|
(11.3
|
)
|
|
Accrued Expenses and Other Liabilities
|
|
(170.9
|
)
|
|
Total Purchase Price
|
|
$
|
1,548.7
|
|
|
|
|
||
1
Non-deductible for tax-purposes.
|
|
|
|
|
For The Years Ended December 31,
|
||||||
DOLLARS IN MILLIONS
|
|
2018 (Unaudited)
|
|
2017 (Unaudited)
|
||||
Total Revenues
|
|
$
|
4,452.9
|
|
|
$
|
4,239.0
|
|
Total Expenses
|
|
$
|
4,133.7
|
|
|
$
|
4,095.1
|
|
Income from Continuing Operations before Income Taxes
|
|
$
|
319.2
|
|
|
$
|
143.9
|
|
Net Income
|
|
$
|
285.6
|
|
|
$
|
89.0
|
|
DOLLARS IN MILLIONS
|
|
Amortized
Cost
|
|
Gross Unrealized
|
|
Fair Value
|
||||||||||
Gains
|
|
Losses
|
|
|||||||||||||
U.S. Government and Government Agencies and Authorities
|
|
$
|
865.9
|
|
|
$
|
14.8
|
|
|
$
|
(15.0
|
)
|
|
$
|
865.7
|
|
States and Political Subdivisions
|
|
$
|
1,553.7
|
|
|
$
|
74.0
|
|
|
(8.6
|
)
|
|
1,619.1
|
|
||
Foreign Governments
|
|
6.5
|
|
|
—
|
|
|
(0.6
|
)
|
|
5.9
|
|
||||
Corporate Securities:
|
|
|
|
|
|
|
|
|
||||||||
Bonds and Notes
|
|
3,307.8
|
|
|
135.1
|
|
|
(49.1
|
)
|
|
3,393.8
|
|
||||
Collateralized Loan Obligations
|
|
535.7
|
|
|
1.5
|
|
|
(13.2
|
)
|
|
524.0
|
|
||||
Other Mortgage- and Asset-backed
|
|
14.9
|
|
|
0.9
|
|
|
(0.1
|
)
|
|
15.7
|
|
||||
Investments in Fixed Maturities
|
|
$
|
6,284.5
|
|
|
$
|
226.3
|
|
|
$
|
(86.6
|
)
|
|
$
|
6,424.2
|
|
|
|
Amortized
Cost
|
|
Gross Unrealized
|
|
Fair Value
|
||||||||||
DOLLARS IN MILLIONS
|
|
Gains
|
|
Losses
|
|
|||||||||||
U.S. Government and Government Agencies and Authorities
|
|
$
|
542.7
|
|
|
$
|
19.6
|
|
|
$
|
(6.2
|
)
|
|
$
|
556.1
|
|
States and Political Subdivisions
|
|
1,595.5
|
|
|
108.6
|
|
|
(2.3
|
)
|
|
1,701.8
|
|
||||
Foreign Governments
|
|
3.0
|
|
|
0.2
|
|
|
—
|
|
|
3.2
|
|
||||
Corporate Securities:
|
|
|
|
|
|
|
|
|
||||||||
Bonds and Notes
|
|
2,745.8
|
|
|
245.8
|
|
|
(11.0
|
)
|
|
2,980.6
|
|
||||
Redeemable Preferred Stocks
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||
Collateralized Loan Obligations
|
|
134.1
|
|
|
5.7
|
|
|
—
|
|
|
139.8
|
|
||||
Other Mortgage- and Asset-backed
|
|
0.4
|
|
|
0.7
|
|
|
—
|
|
|
1.1
|
|
||||
Investments in Fixed Maturities
|
|
$
|
5,021.6
|
|
|
$
|
380.6
|
|
|
$
|
(19.5
|
)
|
|
$
|
5,382.7
|
|
DOLLARS IN MILLIONS
|
|
Amortized Cost
|
|
Fair Value
|
||||
Due in One Year or Less
|
|
$
|
130.3
|
|
|
$
|
131.0
|
|
Due after One Year to Five Years
|
|
914.3
|
|
|
917.7
|
|
||
Due after Five Years to Ten Years
|
|
1,816.8
|
|
|
1,842.5
|
|
||
Due after Ten Years
|
|
2,234.8
|
|
|
2,358.9
|
|
||
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date
|
|
1,188.3
|
|
|
1,174.1
|
|
||
Investments in Fixed Maturities
|
|
$
|
6,284.5
|
|
|
$
|
6,424.2
|
|
DOLLARS IN MILLIONS
|
|
Less Than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|||||||||||||
Fixed Maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government and Government Agencies and Authorities
|
|
$
|
401.1
|
|
|
$
|
(7.6
|
)
|
|
$
|
79.0
|
|
|
$
|
(7.4
|
)
|
|
$
|
480.1
|
|
|
$
|
(15.0
|
)
|
States and Political Subdivisions
|
|
299.4
|
|
|
(5.0
|
)
|
|
102.6
|
|
|
(3.6
|
)
|
|
402.0
|
|
|
(8.6
|
)
|
||||||
Foreign Governments
|
|
4.9
|
|
|
(0.6
|
)
|
|
—
|
|
|
—
|
|
|
4.9
|
|
|
(0.6
|
)
|
||||||
Corporate Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Bonds and Notes
|
|
1,326.0
|
|
|
(38.2
|
)
|
|
116.8
|
|
|
(10.9
|
)
|
|
1,442.8
|
|
|
(49.1
|
)
|
||||||
Collateralized Loan Obligations
|
|
439.2
|
|
|
(13.2
|
)
|
|
—
|
|
|
—
|
|
|
439.2
|
|
|
(13.2
|
)
|
||||||
Other Mortgage- and Asset-backed
|
|
0.2
|
|
|
—
|
|
|
4.5
|
|
|
(0.1
|
)
|
|
4.7
|
|
|
(0.1
|
)
|
||||||
Total Fixed Maturities
|
|
2,470.8
|
|
|
(64.6
|
)
|
|
302.9
|
|
|
(22.0
|
)
|
|
2,773.7
|
|
|
(86.6
|
)
|
DOLLARS IN MILLIONS
|
|
Less Than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|||||||||||||
Fixed Maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government and Government Agencies and Authorities
|
|
$
|
140.0
|
|
|
$
|
(1.1
|
)
|
|
$
|
103.4
|
|
|
$
|
(5.1
|
)
|
|
$
|
243.4
|
|
|
$
|
(6.2
|
)
|
States and Political Subdivisions
|
|
57.0
|
|
|
(0.3
|
)
|
|
124.2
|
|
|
(2.0
|
)
|
|
181.2
|
|
|
(2.3
|
)
|
||||||
Corporate Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Bonds and Notes
|
|
283.1
|
|
|
(4.2
|
)
|
|
208.9
|
|
|
(6.8
|
)
|
|
492.0
|
|
|
(11.0
|
)
|
||||||
Collateralized Loan Obligations
|
|
2.8
|
|
|
—
|
|
|
2.4
|
|
|
—
|
|
|
5.2
|
|
|
—
|
|
||||||
Total Fixed Maturities
|
|
$
|
482.9
|
|
|
$
|
(5.6
|
)
|
|
$
|
438.9
|
|
|
$
|
(13.9
|
)
|
|
$
|
921.8
|
|
|
$
|
(19.5
|
)
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Cumulative Balance of Pre-tax Credit Losses Recognized in Retained Earnings at Beginning of Year
|
|
$
|
1.6
|
|
|
$
|
1.4
|
|
|
$
|
5.1
|
|
Pre-tax Credit Losses on Fixed Maturities without Pre-tax Credit Losses Included in Cumulative Balance at Beginning of Year
|
|
—
|
|
|
1.2
|
|
|
2.7
|
|
|||
Reductions for Change in Impairment Status:
|
|
|
|
|
|
|
||||||
From Status of Credit Loss to Status of Intent-to-sell or Required-to-sell
|
|
(0.5
|
)
|
|
(0.7
|
)
|
|
(6.3
|
)
|
|||
Reductions for Investments Sold During Year
|
|
—
|
|
|
(0.3
|
)
|
|
(0.1
|
)
|
|||
Balance at End of Year
|
|
$
|
1.1
|
|
|
$
|
1.6
|
|
|
$
|
1.4
|
|
DOLLARS IN MILLIONS
|
|
Cost
|
|
Gross Unrealized
|
|
Fair Value
|
||||||||||
Gains
|
|
Losses
|
|
|||||||||||||
Preferred Stocks:
|
|
|
|
|
|
|
|
|
||||||||
Finance, Insurance and Real Estate
|
|
$
|
51.1
|
|
|
$
|
4.6
|
|
|
$
|
—
|
|
|
$
|
55.7
|
|
Other Industries
|
|
17.1
|
|
|
6.0
|
|
|
—
|
|
|
23.1
|
|
||||
Common Stocks:
|
|
|
|
|
|
|
|
|
||||||||
Finance, Insurance and Real Estate
|
|
5.5
|
|
|
1.7
|
|
|
(0.1
|
)
|
|
7.1
|
|
||||
Other Industries
|
|
10.0
|
|
|
8.1
|
|
|
(0.4
|
)
|
|
17.7
|
|
||||
Other Equity Interests:
|
|
|
|
|
|
|
|
|
||||||||
Exchange Traded Funds
|
|
207.6
|
|
|
11.9
|
|
|
—
|
|
|
219.5
|
|
||||
Limited Liability Companies and Limited Partnerships
|
|
184.9
|
|
|
23.9
|
|
|
(5.9
|
)
|
|
202.9
|
|
||||
Investments in Equity Securities at Fair Value
|
|
$
|
476.2
|
|
|
$
|
56.2
|
|
|
$
|
(6.4
|
)
|
|
$
|
526.0
|
|
|
|
Less Than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
DOLLARS IN MILLIONS
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
Preferred Stocks:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Finance, Insurance and Real Estate
|
|
0.3
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
||||||
Other Industries
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
||||||
Common Stocks:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Finance, Insurance and Real Estate
|
|
1.6
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
1.6
|
|
|
(0.1
|
)
|
||||||
Other Industries
|
|
0.4
|
|
|
(0.3
|
)
|
|
0.5
|
|
|
(0.1
|
)
|
|
0.9
|
|
|
(0.4
|
)
|
||||||
Other Equity Interests:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Limited Liability Companies and Limited Partnerships
|
|
48.4
|
|
|
(2.1
|
)
|
|
7.7
|
|
|
(3.8
|
)
|
|
56.1
|
|
|
(5.9
|
)
|
||||||
Investments in Equity Securities at Fair Value
|
|
$
|
50.9
|
|
|
$
|
(2.5
|
)
|
|
$
|
8.6
|
|
|
$
|
(3.9
|
)
|
|
$
|
59.5
|
|
|
$
|
(6.4
|
)
|
•
|
The financial condition and prospects of the issuer;
|
•
|
The length of time and magnitude of the unrealized loss;
|
•
|
The volatility of the investment;
|
•
|
Analyst recommendations and near term price targets;
|
•
|
Opinions of the Company’s external investment managers;
|
•
|
Market liquidity;
|
•
|
Debt-like characteristics of perpetual preferred stocks and issuer ratings; and
|
•
|
The Company’s intentions to sell or ability to hold the investments until recovery.
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
||||
Loans to Policyholders at Unpaid Principal
|
|
$
|
300.6
|
|
|
$
|
298.6
|
|
Real Estate at Depreciated Cost
|
|
114.2
|
|
|
116.8
|
|
||
Trading Securities at Fair Value
|
|
—
|
|
|
6.7
|
|
||
Other
|
|
—
|
|
|
0.1
|
|
||
Total
|
|
$
|
414.8
|
|
|
$
|
422.2
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
||||
Preferred Property & Casualty Insurance
|
|
$
|
49.6
|
|
|
$
|
49.6
|
|
Specialty Property & Casualty Insurance
|
|
843.4
|
|
|
54.0
|
|
||
Life & Health Insurance
|
|
219.4
|
|
|
219.4
|
|
||
Total
|
|
$
|
1,112.4
|
|
|
$
|
323.0
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
||||
Definite Lived Intangible Assets:
|
|
|
|
|
||||
Value of Business Acquired
|
|
$
|
30.2
|
|
|
$
|
26.0
|
|
Customer Relationships
|
|
6.7
|
|
|
7.3
|
|
||
Agent Relationships
|
|
68.0
|
|
|
15.6
|
|
||
Trade Names
|
|
7.0
|
|
|
1.4
|
|
||
Internal-Use Software
|
|
149.1
|
|
|
82.9
|
|
||
Total Definite Lived Intangible Assets
|
|
261.0
|
|
|
133.2
|
|
||
Indefinite Lived Intangible Assets:
|
|
|
|
|
||||
Trade Names
|
|
5.2
|
|
|
5.2
|
|
||
Insurance Licenses
|
|
42.6
|
|
|
34.6
|
|
||
Total Indefinite Lived Intangible Assets
|
|
47.8
|
|
|
39.8
|
|
||
Total Intangible Assets
|
|
$
|
308.8
|
|
|
$
|
173.0
|
|
DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS
|
|
As of December 31, 2018
|
|||||||||||||||||||||||||
|
|
Incurred Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,
|
|
Total of IBNR Liabilities Plus Expected Development on Reported Claims
|
|
Cumulative Number of Reported Claims
|
|||||||||||||||||||||
Accident Year
|
|
2014
(Unaudited) |
|
2015
(Unaudited) |
|
2016
(Unaudited) |
|
2017
(Unaudited) |
|
2018
|
|
|
|||||||||||||||
2014
|
|
$
|
202.1
|
|
|
$
|
198.3
|
|
|
$
|
200.2
|
|
|
$
|
202.8
|
|
|
$
|
203.5
|
|
|
$
|
0.4
|
|
|
46,268
|
|
2015
|
|
168.3
|
|
|
171.8
|
|
|
176.5
|
|
|
177.6
|
|
|
1.0
|
|
|
39,037
|
|
|||||||||
2016
|
|
162.1
|
|
|
174.5
|
|
|
179.1
|
|
|
4.8
|
|
|
36,778
|
|
||||||||||||
2017
|
|
164.4
|
|
|
157.8
|
|
|
9.1
|
|
|
33,525
|
|
|||||||||||||||
2018
|
|
157.6
|
|
|
43.4
|
|
|
29,665
|
|
||||||||||||||||||
Total
|
|
875.6
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
|
|
|
|
|
|||||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
|
|
|
|||||||||||||||||||||
Accident Year
|
|
2014
(Unaudited) |
|
2015
(Unaudited) |
|
2016
(Unaudited) |
|
2017
(Unaudited) |
|
2018
|
|
|
|
|
|||||||||||||
2014
|
|
$
|
85.8
|
|
|
$
|
143.3
|
|
|
$
|
168.8
|
|
|
$
|
188.3
|
|
|
$
|
197.7
|
|
|
|
|
|
|||
2015
|
|
73.1
|
|
|
122.4
|
|
|
147.5
|
|
|
163.1
|
|
|
|
|
|
|||||||||||
2016
|
|
61.2
|
|
|
114.6
|
|
|
145.6
|
|
|
|
|
|
||||||||||||||
2017
|
|
59.2
|
|
|
108.9
|
|
|
|
|
|
|||||||||||||||||
2018
|
|
55.5
|
|
|
|
|
|
||||||||||||||||||||
Total
|
|
670.8
|
|
|
|
|
|
||||||||||||||||||||
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2014, Net of Reinsurance
|
|
13.2
|
|
|
|
|
|
||||||||||||||||||||
Loss and Allocated LAE Reserves, Net of Reinsurance
|
|
$
|
218.0
|
|
|
|
|
|
DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS
|
|
As of December 31, 2018
|
|||||||||||||||||||||||||
|
|
Incurred Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,
|
|
Total of IBNR Liabilities Plus Expected Development on Reported Claims
|
|
Cumulative Number of Reported Claims
|
|||||||||||||||||||||
Accident Year
|
|
2014
(Unaudited) |
|
2015
(Unaudited) |
|
2016
(Unaudited) |
|
2017
(Unaudited) |
|
2018
|
|
|
|||||||||||||||
2014
|
|
$
|
122.0
|
|
|
$
|
121.6
|
|
|
$
|
121.4
|
|
|
$
|
121.4
|
|
|
$
|
121.4
|
|
|
$
|
—
|
|
|
85,373
|
|
2015
|
|
101.2
|
|
|
100.7
|
|
|
100.6
|
|
|
100.6
|
|
|
—
|
|
|
68,486
|
|
|||||||||
2016
|
|
106.6
|
|
|
106.6
|
|
|
106.3
|
|
|
(0.1
|
)
|
|
69,633
|
|
||||||||||||
2017
|
|
109.2
|
|
|
105.8
|
|
|
(0.5
|
)
|
|
66,083
|
|
|||||||||||||||
2018
|
|
113.9
|
|
|
(1.7
|
)
|
|
59,795
|
|
||||||||||||||||||
Total
|
|
548.0
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
|
|
|
|
|
|||||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
|
|
|
|||||||||||||||||||||
Accident Year
|
|
2014
(Unaudited) |
|
2015
(Unaudited) |
|
2016
(Unaudited) |
|
2017
(Unaudited) |
|
2018
|
|
|
|
|
|||||||||||||
2014
|
|
$
|
121.0
|
|
|
$
|
121.8
|
|
|
$
|
121.5
|
|
|
$
|
121.5
|
|
|
$
|
121.5
|
|
|
|
|
|
|||
2015
|
|
100.1
|
|
|
101.0
|
|
|
100.7
|
|
|
100.6
|
|
|
|
|
|
|||||||||||
2016
|
|
105.2
|
|
|
106.9
|
|
|
106.3
|
|
|
|
|
|
||||||||||||||
2017
|
|
104.4
|
|
|
106.1
|
|
|
|
|
|
|||||||||||||||||
2018
|
|
107.2
|
|
|
|
|
|
||||||||||||||||||||
Total
|
|
541.7
|
|
|
|
|
|
||||||||||||||||||||
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2014, Net of Reinsurance
|
|
(0.1
|
)
|
|
|
|
|
||||||||||||||||||||
Loss and Allocated LAE Reserves, Net of Reinsurance
|
|
$
|
6.2
|
|
|
|
|
|
DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS
|
|
As of December 31, 2018
|
|||||||||||||||||||||||||
|
|
Incurred Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,
|
|
Total of IBNR Liabilities Plus Expected Development on Reported Claims
|
|
Cumulative Number of Reported Claims
|
|||||||||||||||||||||
Accident Year
|
|
2014
(Unaudited) |
|
2015
(Unaudited) |
|
2016
(Unaudited) |
|
2017
(Unaudited) |
|
2018
|
|
|
|||||||||||||||
2014
|
|
$
|
211.1
|
|
|
$
|
208.5
|
|
|
$
|
205.0
|
|
|
$
|
204.8
|
|
|
$
|
204.6
|
|
|
$
|
0.1
|
|
|
21,959
|
|
2015
|
|
178.9
|
|
|
164.9
|
|
|
163.2
|
|
|
164.3
|
|
|
(0.4
|
)
|
|
17,296
|
|
|||||||||
2016
|
|
200.3
|
|
|
201.7
|
|
|
204.2
|
|
|
1.4
|
|
|
18,146
|
|
||||||||||||
2017
|
|
261.2
|
|
|
259.5
|
|
|
7.4
|
|
|
18,610
|
|
|||||||||||||||
2018
|
|
185.9
|
|
|
21.4
|
|
|
13,725
|
|
||||||||||||||||||
Total
|
|
1,018.5
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
|
|
|
|
|
|||||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
|
|
|
|||||||||||||||||||||
Accident Year
|
|
2014
(Unaudited) |
|
2015
(Unaudited) |
|
2016
(Unaudited) |
|
2017
(Unaudited) |
|
2018
|
|
|
|
|
|||||||||||||
2014
|
|
$
|
149.2
|
|
|
$
|
194.4
|
|
|
$
|
200.1
|
|
|
$
|
202.8
|
|
|
$
|
203.2
|
|
|
|
|
|
|||
2015
|
|
116.9
|
|
|
154.4
|
|
|
158.0
|
|
|
161.3
|
|
|
|
|
|
|||||||||||
2016
|
|
141.2
|
|
|
190.1
|
|
|
195.8
|
|
|
|
|
|
||||||||||||||
2017
|
|
165.8
|
|
|
242.5
|
|
|
|
|
|
|||||||||||||||||
2018
|
|
127.4
|
|
|
|
|
|
||||||||||||||||||||
Total
|
|
930.2
|
|
|
|
|
|
||||||||||||||||||||
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2014, Net of Reinsurance
|
|
5.8
|
|
|
|
|
|
||||||||||||||||||||
Loss and Allocated LAE Reserves, Net of Reinsurance
|
|
$
|
94.1
|
|
|
|
|
|
DOLLARS IN MILLIONS
|
|
2018
|
||
Property and Casualty Insurance Reserves, Net of Reinsurance:
|
|
|
||
Preferred Personal Automobile Insurance—Liability
|
|
$
|
218.0
|
|
Preferred Personal Automobile Insurance—Physical Damage
|
|
6.2
|
|
|
Specialty Personal Automobile Insurance—Liability
|
|
1,006.7
|
|
|
Specialty Personal Automobile Insurance—Physical Damage
|
|
35.5
|
|
|
Commercial Automobile Insurance - Liability
|
|
175.6
|
|
|
Commercial Automobile Insurance - Physical Damage
|
|
1.9
|
|
|
Homeowners Insurance
|
|
94.1
|
|
|
Other
|
|
63.2
|
|
|
Total
|
|
1,601.2
|
|
|
Reinsurance Recoverables on Unpaid Losses and Allocated LAE:
|
|
|
||
Preferred Personal Automobile Insurance—Liability
|
|
26.9
|
|
|
Preferred Personal Automobile Insurance—Physical Damage
|
|
0.1
|
|
|
Specialty Personal Automobile Insurance—Liability
|
|
9.2
|
|
|
Specialty Personal Automobile Insurance—Physical Damage
|
|
—
|
|
|
Commercial Automobile Insurance - Liability
|
|
13.1
|
|
|
Commercial Automobile Insurance - Physical Damage
|
|
—
|
|
|
Homeowners Insurance
|
|
42.7
|
|
|
Other
|
|
9.9
|
|
|
Total
|
|
101.9
|
|
|
Unallocated LAE
|
|
171.8
|
|
|
Property and Casualty Insurance Reserves, Gross of Reinsurance and Indemnification
|
|
$
|
1,874.9
|
|
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance and Indemnification (Unaudited)
|
|||||||||||||||
Years
|
|
1
|
|
2
|
|
3
|
|
4
|
|
5
|
|||||
Preferred Personal Automobile Insurance—Liability
|
|
38.0
|
%
|
|
68.1
|
%
|
|
82.4
|
%
|
|
92.2
|
%
|
|
97.1
|
%
|
Preferred Personal Automobile Insurance—Physical Damage
|
|
98.2
|
%
|
|
100.4
|
%
|
|
100.1
|
%
|
|
100.0
|
%
|
|
100.1
|
%
|
Specialty Personal Automobile Insurance—Liability
|
|
44.7
|
%
|
|
81.4
|
%
|
|
92.3
|
%
|
|
96.2
|
%
|
|
97.8
|
%
|
Specialty Personal Automobile Insurance—Physical Damage
|
|
94.3
|
%
|
|
100.7
|
%
|
|
100.2
|
%
|
|
100.1
|
%
|
|
100.3
|
%
|
Commercial Automobile Insurance - Liability
|
|
30.9
|
%
|
|
61.8
|
%
|
|
78.6
|
%
|
|
88.6
|
%
|
|
97.0
|
%
|
Commercial Automobile Insurance - Physical Damage
|
|
93.5
|
%
|
|
100.1
|
%
|
|
100.2
|
%
|
|
100.3
|
%
|
|
100.0
|
%
|
Homeowners Insurance
|
|
69.1
|
%
|
|
93.9
|
%
|
|
96.6
|
%
|
|
98.6
|
%
|
|
99.3
|
%
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Beginning Property and Casualty Insurance Reserves:
|
|
|
|
|
|
|
||||||
Gross of Reinsurance and Indemnification at Beginning of Year
|
|
$
|
1,016.8
|
|
|
$
|
931.4
|
|
|
$
|
862.8
|
|
Less Reinsurance Recoverables and Indemnification at Beginning of Year
|
|
53.1
|
|
|
50.2
|
|
|
52.0
|
|
|||
Property and Casualty Insurance Reserves, Net of Reinsurance at Beginning of Year
|
|
963.7
|
|
|
881.2
|
|
|
810.8
|
|
|||
Property and Casualty Insurance Reserves Acquired, Net of Reinsurance
|
|
695.1
|
|
|
—
|
|
|
—
|
|
|||
Incurred Losses and LAE related to:
|
|
|
|
|
|
|
||||||
Current Year:
|
|
|
|
|
|
|
||||||
Continuing Operations
|
|
2,093.4
|
|
|
1,454.1
|
|
|
1,358.6
|
|
|||
Prior Years:
|
|
|
|
|
|
|
||||||
Continuing Operations
|
|
(5.2
|
)
|
|
20.4
|
|
|
(14.4
|
)
|
|||
Discontinued Operations
|
|
(2.2
|
)
|
|
(1.5
|
)
|
|
(6.3
|
)
|
|||
Total Incurred Losses and LAE related to Prior Years
|
|
(7.4
|
)
|
|
18.9
|
|
|
(20.7
|
)
|
|||
Total Incurred Losses and LAE
|
|
2,086.0
|
|
|
1,473.0
|
|
|
1,337.9
|
|
|||
Paid Losses and LAE related to:
|
|
|
|
|
|
|
||||||
Current Year:
|
|
|
|
|
|
|
||||||
Continuing Operations
|
|
1,300.8
|
|
|
868.1
|
|
|
831.0
|
|
|||
Prior Years:
|
|
|
|
|
|
|
||||||
Continuing Operations
|
|
668.2
|
|
|
518.5
|
|
|
431.9
|
|
|||
Discontinued Operations
|
|
2.8
|
|
|
3.9
|
|
|
4.6
|
|
|||
Total Paid Losses and LAE related to Prior Years
|
|
671.0
|
|
|
522.4
|
|
|
436.5
|
|
|||
Total Paid Losses and LAE
|
|
1,971.8
|
|
|
1,390.5
|
|
|
1,267.5
|
|
|||
Property and Casualty Insurance Reserves, Net of Reinsurance at End of Year
|
|
1,773.0
|
|
|
963.7
|
|
|
881.2
|
|
|||
Plus Reinsurance Recoverables at End of Year
|
|
101.9
|
|
|
53.1
|
|
|
50.2
|
|
|||
Property and Casualty Insurance Reserves, Gross of Reinsurance at End of Year
|
|
$
|
1,874.9
|
|
|
$
|
1,016.8
|
|
|
$
|
931.4
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
||||
Term Loan due June 29, 2020
|
|
$
|
34.9
|
|
|
$
|
—
|
|
5.00% Infinity Senior Notes due September 19, 2022
|
|
281.5
|
|
|
—
|
|
||
4.35% Senior Notes due February 15, 2025
|
|
448.4
|
|
|
448.1
|
|
||
7.375% Subordinated Debentures due February 27, 2054
|
|
144.2
|
|
|
144.2
|
|
||
Total Long-term Debt Outstanding
|
|
$
|
909.0
|
|
|
$
|
592.3
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Minimum Rental Expense
|
|
$
|
30.7
|
|
|
$
|
20.5
|
|
|
$
|
21.2
|
|
Less Sublease Rental Income
|
|
(0.4
|
)
|
|
(1.6
|
)
|
|
(1.6
|
)
|
|||
Net Rental Expense
|
|
$
|
30.3
|
|
|
$
|
18.9
|
|
|
$
|
19.6
|
|
DOLLARS IN MILLIONS
|
|
Capital
Leases
|
|
Operating
Leases
|
||||
2019
|
|
$
|
0.7
|
|
|
$
|
20.5
|
|
2020
|
|
0.7
|
|
|
18.4
|
|
||
2021
|
|
0.3
|
|
|
16.9
|
|
||
2022
|
|
0.2
|
|
|
15.0
|
|
||
2023
|
|
—
|
|
|
12.5
|
|
||
2024 and Thereafter
|
|
—
|
|
|
27.1
|
|
||
Total Future Payments
|
|
$
|
1.9
|
|
|
$
|
110.4
|
|
Less Imputed Interest
|
|
—
|
|
|
|
|||
Present Value of Minimum Capital Lease Payments
|
|
$
|
1.9
|
|
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||||||||
RANGE OF VALUATION ASSUMPTIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Expected Volatility
|
|
27.31
|
%
|
-
|
32.15
|
%
|
|
26.17
|
%
|
-
|
30.39
|
%
|
|
25.85
|
%
|
-
|
42.19
|
%
|
Risk-free Interest Rate
|
|
2.44
|
|
-
|
3.00
|
|
|
1.59
|
|
-
|
2.25
|
|
|
0.77
|
|
-
|
2.01
|
|
Expected Dividend Yield
|
|
1.16
|
|
-
|
1.72
|
|
|
1.39
|
|
-
|
2.43
|
|
|
2.22
|
|
-
|
3.41
|
|
WEIGHTED-AVERAGE EXPECTED LIFE IN YEARS
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Employee Grants
|
|
4
|
|
-
|
6
|
|
4
|
|
-
|
6.5
|
|
1
|
|
-
|
6.5
|
|||
Director Grants
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
Shares
Subject to
Awards
|
|
Weighted-
average
Exercise Price
Per Share ($)
|
|
Weighted-
average
Remaining
Contractual
Life (in Years)
|
|
Aggregate
Intrinsic
Value
($ In Millions)
|
|||||
Outstanding at Beginning of the Year
|
|
1,012,279
|
|
|
$
|
37.45
|
|
|
|
|
|
||
Granted
|
|
576,681
|
|
|
60.98
|
|
|
|
|
|
|||
Exercised
|
|
(107,536
|
)
|
|
36.74
|
|
|
|
|
|
|||
Forfeited or Expired
|
|
(47,151
|
)
|
|
52.06
|
|
|
|
|
|
|||
Outstanding at December 31, 2018
|
|
1,434,273
|
|
|
46.48
|
|
|
7.86
|
|
$
|
28.8
|
|
|
Vested and Expected to Vest at December 31, 2018
|
|
1,359,250
|
|
|
$
|
46.22
|
|
|
7.82
|
|
$
|
27.7
|
|
Exercisable at December 31, 2018
|
|
586,600
|
|
|
$
|
36.18
|
|
|
6.71
|
|
$
|
17.7
|
|
|
|
|
|
Outstanding
|
|
Exercisable
|
||||||||||||||||
Range of Exercise Prices ($)
|
|
Shares
Subject to
Awards
|
|
Weighted-
average
Exercise Price
Per Share ($)
|
|
Weighted-
average
Remaining
Contractual
Life (in Years)
|
|
Shares
Subject to
Awards
|
|
Weighted-
average
Exercise Price
Per Share ($)
|
||||||||||||
$
|
10.01
|
|
-
|
$
|
20.00
|
|
|
4,000
|
|
|
$
|
16.48
|
|
|
0.35
|
|
4,000
|
|
|
$
|
16.48
|
|
20.01
|
|
-
|
30.00
|
|
|
187,410
|
|
|
27.77
|
|
|
6.22
|
|
140,206
|
|
|
27.79
|
|
||||
30.01
|
|
-
|
40.00
|
|
|
249,202
|
|
|
34.89
|
|
|
6.51
|
|
206,760
|
|
|
34.76
|
|
||||
40.01
|
|
-
|
50.00
|
|
|
431,888
|
|
|
42.57
|
|
|
7.81
|
|
231,473
|
|
|
42.34
|
|
||||
50.01
|
|
-
|
60.00
|
|
|
489,797
|
|
|
59.90
|
|
|
9.08
|
|
244
|
|
|
54.50
|
|
||||
60.01
|
|
-
|
70.00
|
|
|
58,875
|
|
|
67.09
|
|
|
9.14
|
|
3,917
|
|
|
66.35
|
|
||||
70.01
|
|
-
|
80.00
|
|
|
10,310
|
|
|
77.76
|
|
|
9.49
|
|
—
|
|
|
—
|
|
||||
80.01
|
|
-
|
90.00
|
|
|
2,791
|
|
|
82.10
|
|
|
9.68
|
|
—
|
|
|
—
|
|
||||
10.01
|
|
-
|
90.00
|
|
|
1,434,273
|
|
|
46.48
|
|
|
7.86
|
|
586,600
|
|
|
36.18
|
|
|
Time-based Restricted Stock Unit Awards
|
|||||
|
Number of Restricted Stock Units
|
|
Weighted-
average
Grant-date
Fair Value
Per Unit
|
|||
Nonvested Balance at Beginning of the Year
|
130,247
|
|
|
$
|
40.34
|
|
Granted
|
249,422
|
|
|
73.94
|
|
|
Vested
|
(51,647
|
)
|
|
49.76
|
|
|
Forfeited
|
(11,781
|
)
|
|
38.71
|
|
|
Nonvested Balance at December 31, 2018
|
316,241
|
|
|
$
|
65.36
|
|
•
|
exceeds the “target” performance level, all of the PSUs will vest and additional shares of stock will be issued to the award recipient;
|
•
|
is below the “target” performance level, but at or above a “minimum” performance level, only a portion of the PSUs originally issued to the award recipient will vest; or
|
•
|
is below a “minimum” performance level, none of the PSUs originally issued to the award recipient will vest.
|
|
PSU Awards
|
|||||
|
Number of PSUs
|
|
Weighted-
average
Grant-date
Fair Value
Per PSU
|
|||
Nonvested Balance at Beginning of the Year
|
225,983
|
|
|
$
|
36.90
|
|
Granted
|
191,292
|
|
|
56.88
|
|
|
Vested
|
(77,244
|
)
|
|
37.63
|
|
|
Forfeited
|
(12,731
|
)
|
|
47.71
|
|
|
Nonvested Balance at December 31, 2018
|
327,300
|
|
|
$
|
47.14
|
|
|
|
Number of DSUs
|
|
Weighted-
average
Grant-date
Fair Value
Per DSU
|
|||
Vested Balance at Beginning of the Year
|
|
44,560
|
|
|
$
|
35.54
|
|
Granted and Vested
|
|
12,780
|
|
|
77.50
|
|
|
Vested Balance at December 31, 2018
|
|
57,340
|
|
|
$
|
44.89
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
DOLLARS IN MILLIONS
|
|
|
|
|
|
|
||||||
Income from Continuing Operations
|
|
$
|
188.4
|
|
|
$
|
119.9
|
|
|
$
|
12.7
|
|
Less Income (Loss) from Continuing Operations Attributed to Participating Awards
|
|
1.0
|
|
|
0.8
|
|
|
(0.2
|
)
|
|||
Income from Continuing Operations Attributed to Unrestricted Shares
|
|
187.4
|
|
|
119.1
|
|
|
12.9
|
|
|||
Dilutive Effect on Income of Equity-based Compensation Equivalent Shares
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Diluted Income from Continuing Operations Attributed to Unrestricted Shares
|
|
$
|
187.4
|
|
|
$
|
119.1
|
|
|
$
|
12.9
|
|
SHARES IN THOUSANDS
|
|
|
|
|
|
|
||||||
Weighted-average Unrestricted Shares Outstanding
|
|
58,149.4
|
|
|
51,345.6
|
|
|
51,156.1
|
|
|||
Equity-based Compensation Equivalent Shares
|
|
602.5
|
|
|
232.3
|
|
|
58.6
|
|
|||
Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution
|
|
58,751.9
|
|
|
51,577.9
|
|
|
51,214.7
|
|
|||
PER UNRESTRICTED SHARE IN WHOLE DOLLARS
|
|
|
|
|
|
|
||||||
Basic Income from Continuing Operations Per Unrestricted Share
|
|
$
|
3.22
|
|
|
$
|
2.32
|
|
|
$
|
0.25
|
|
Diluted Income from Continuing Operations Per Unrestricted Share
|
|
$
|
3.19
|
|
|
$
|
2.31
|
|
|
$
|
0.25
|
|
SHARES IN THOUSANDS
|
|
2018
|
|
2017
|
|
2016
|
|||
Equity-based Compensation Equivalent Shares
|
|
231.3
|
|
|
346.6
|
|
|
959.9
|
|
Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution
|
|
231.3
|
|
|
346.6
|
|
|
959.9
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Other Comprehensive Income (Loss) Before Income Taxes:
|
|
|
|
|
|
|
||||||
Unrealized Holding Gains (Losses) Arising During the Year Before Reclassification Adjustment
|
|
$
|
(214.2
|
)
|
|
$
|
119.1
|
|
|
$
|
(2.4
|
)
|
Reclassification Adjustment for Amounts Included in Net Income
|
|
(21.9
|
)
|
|
(35.3
|
)
|
|
0.2
|
|
|||
Unrealized Holding Gains (Losses)
|
|
(236.1
|
)
|
|
83.8
|
|
|
(2.2
|
)
|
|||
Foreign Currency Translation Adjustments Arising During the Year Before Reclassification Adjustment
|
|
—
|
|
|
1.7
|
|
|
(0.3
|
)
|
|||
Reclassification Adjustment for Amounts Included in Net Income
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|||
Foreign Currency Translation Adjustments
|
|
0.3
|
|
|
1.7
|
|
|
(0.3
|
)
|
|||
Net Unrecognized Postretirement Benefit Costs Arising During the Year
|
|
(8.0
|
)
|
|
3.9
|
|
|
14.2
|
|
|||
Reclassification Adjustments for Amounts Included in Net Income:
|
|
|
|
|
|
|
||||||
Curtailment Cost Recognized
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|||
Amortization of Net Unrecognized Postretirement Benefit Costs
|
|
1.1
|
|
|
(0.6
|
)
|
|
5.3
|
|
|||
Total Reclassification Adjustments for Amounts Included in Net Income
|
|
1.1
|
|
|
(0.6
|
)
|
|
6.3
|
|
|||
Net Unrecognized Postretirement Benefit Costs
|
|
(6.9
|
)
|
|
3.3
|
|
|
20.5
|
|
|||
Gains (Losses) on Cash Flow Hedges During the Year Before Reclassification Adjustment
|
|
0.9
|
|
|
(8.0
|
)
|
|
1.6
|
|
|||
Reclassification Adjustment for Amounts Included in Net Income
|
|
0.3
|
|
|
1.3
|
|
|
—
|
|
|||
Gain (Loss) on Cash Flow Hedges
|
|
1.2
|
|
|
(6.7
|
)
|
|
1.6
|
|
|||
Other Comprehensive Income (Loss) Before Income Taxes
|
|
$
|
(241.5
|
)
|
|
$
|
82.1
|
|
|
$
|
19.6
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Income Tax Benefit (Expense):
|
|
|
|
|
|
|
||||||
Unrealized Holding Gains and Losses Arising During the Year Before Reclassification Adjustment
|
|
$
|
45.0
|
|
|
$
|
(38.2
|
)
|
|
$
|
1.0
|
|
Reclassification Adjustment for Amounts Included in Net Income
|
|
4.6
|
|
|
12.3
|
|
|
(0.1
|
)
|
|||
Unrealized Holding Gains and Losses
|
|
49.6
|
|
|
(25.9
|
)
|
|
0.9
|
|
|||
Foreign Currency Translation Adjustments Arising During the Year Before Reclassification Adjustment
|
|
—
|
|
|
(0.6
|
)
|
|
0.1
|
|
|||
Reclassification Adjustment for Amounts Included in Net Income
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|||
Foreign Currency Translation Adjustment
|
|
(0.1
|
)
|
|
(0.6
|
)
|
|
0.1
|
|
|||
Net Unrecognized Postretirement Benefit Costs Arising During the Year
|
|
1.7
|
|
|
(0.8
|
)
|
|
(5.0
|
)
|
|||
Reclassification Adjustments for Amounts Included in Net Income:
|
|
|
|
|
|
|
||||||
Curtailment Cost Recognized
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|||
Amortization of Net Unrecognized Postretirement Benefit Costs
|
|
(0.2
|
)
|
|
0.2
|
|
|
(1.9
|
)
|
|||
Total Reclassification Adjustments for Amounts Included in Net Income
|
|
(0.2
|
)
|
|
0.2
|
|
|
(2.3
|
)
|
|||
Net Unrecognized Postretirement Benefit Costs
|
|
1.5
|
|
|
(0.6
|
)
|
|
(7.3
|
)
|
|||
Gains and Losses on Cash Flow Hedges During the Year Before Reclassification Adjustment
|
|
(0.2
|
)
|
|
2.8
|
|
|
(0.6
|
)
|
|||
Reclassification Adjustment for Amounts Included in Net Income
|
|
(0.1
|
)
|
|
(0.4
|
)
|
|
—
|
|
|||
Gains and Losses on Cash Flow Hedges
|
|
(0.3
|
)
|
|
2.4
|
|
|
(0.6
|
)
|
|||
Other Comprehensive Income Tax Benefit (Expense)
|
|
$
|
50.7
|
|
|
$
|
(24.7
|
)
|
|
$
|
(6.9
|
)
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
||||
Net Unrealized Gains on Investments, Net of Income Taxes:
|
|
|
|
|
||||
Available for Sale Fixed Maturities with Portion of OTTI Recognized in Earnings
|
|
$
|
—
|
|
|
$
|
0.2
|
|
Other Net Unrealized Gains on Investments
|
|
119.3
|
|
|
269.5
|
|
||
Foreign Currency Translation Adjustments, Net of Income Taxes
|
|
—
|
|
|
0.2
|
|
||
Net Unrecognized Postretirement Benefit Costs, Net of Income Taxes
|
|
(94.5
|
)
|
|
(72.2
|
)
|
||
Gain (Loss) on Cash Flow Hedges, Net of Income Taxes
|
|
(3.0
|
)
|
|
(3.3
|
)
|
||
Accumulated Other Comprehensive Income
|
|
$
|
21.8
|
|
|
$
|
194.4
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Reclassification of AOCI from Net Unrealized Gains and Losses on Available For Sale Securities to:
|
|
|
|
|
|
|
||||||
Net Realized Gains on Sales of Investments
|
|
$
|
26.4
|
|
|
$
|
49.6
|
|
|
$
|
32.0
|
|
Net Impairment Losses Recognized in Earnings
|
|
(4.5
|
)
|
|
(14.3
|
)
|
|
(32.2
|
)
|
|||
Total Before Income Taxes
|
|
21.9
|
|
|
35.3
|
|
|
(0.2
|
)
|
|||
Income Tax Benefit (Expense)
|
|
(4.6
|
)
|
|
(12.3
|
)
|
|
0.1
|
|
|||
Reclassification from AOCI, Net of Income Taxes
|
|
17.3
|
|
|
23.0
|
|
|
(0.1
|
)
|
|||
Reclassification of AOCI Unrecognized Postretirement Benefit Costs to:
|
|
|
|
|
|
|
||||||
Interest and Other Expenses
|
|
(1.1
|
)
|
|
0.6
|
|
|
(6.3
|
)
|
|||
Income Tax Benefit (Expense)
|
|
0.2
|
|
|
(0.2
|
)
|
|
2.3
|
|
|||
Reclassification from AOCI, Net of Income Taxes
|
|
(0.9
|
)
|
|
0.4
|
|
|
(4.0
|
)
|
|||
Reclassification of AOCI from Loss on Cash Flow Hedges to:
|
|
|
|
|
|
|
||||||
Interest and Other Expenses
|
|
(0.3
|
)
|
|
(1.3
|
)
|
|
—
|
|
|||
Income Tax Benefit
|
|
0.1
|
|
|
0.4
|
|
|
—
|
|
|||
Reclassification from AOCI, Net of Income Taxes
|
|
(0.2
|
)
|
|
(0.9
|
)
|
|
—
|
|
|||
Total Reclassification from AOCI to Net Income
|
|
$
|
16.2
|
|
|
$
|
22.5
|
|
|
$
|
(4.1
|
)
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Investment Income:
|
|
|
|
|
|
|
||||||
Interest on Fixed Income Securities
|
|
$
|
268.9
|
|
|
$
|
246.6
|
|
|
$
|
242.7
|
|
Dividends on Equity Securities Excluding Alternative Investments
|
|
13.6
|
|
|
9.3
|
|
|
11.8
|
|
|||
Alternative Investments:
|
|
|
|
|
|
|
||||||
Equity Method Limited Liability Investments
|
|
11.0
|
|
|
24.8
|
|
|
7.5
|
|
|||
Fair Value Option Investments
|
|
—
|
|
|
1.3
|
|
|
(1.9
|
)
|
|||
Limited Liability Investments Included in Equity Securities
|
|
26.4
|
|
|
28.6
|
|
|
22.0
|
|
|||
Total Alternative Investments
|
|
37.4
|
|
|
54.7
|
|
|
27.6
|
|
|||
Short-term Investments
|
|
7.0
|
|
|
1.6
|
|
|
0.5
|
|
|||
Loans to Policyholders
|
|
22.5
|
|
|
21.6
|
|
|
21.6
|
|
|||
Real Estate
|
|
9.6
|
|
|
10.7
|
|
|
11.8
|
|
|||
Other
|
|
0.9
|
|
|
0.5
|
|
|
0.3
|
|
|||
Total Investment Income
|
|
359.9
|
|
|
345.0
|
|
|
316.3
|
|
|||
Investment Expenses:
|
|
|
|
|
|
|
||||||
Real Estate
|
|
9.7
|
|
|
10.5
|
|
|
11.0
|
|
|||
Other Investment Expenses
|
|
9.3
|
|
|
7.3
|
|
|
7.0
|
|
|||
Total Investment Expenses
|
|
19.0
|
|
|
17.8
|
|
|
18.0
|
|
|||
Net Investment Income
|
|
$
|
340.9
|
|
|
$
|
327.2
|
|
|
$
|
298.3
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Fixed Maturities:
|
|
|
|
|
|
|
||||||
Gains on Sales
|
|
$
|
25.3
|
|
|
$
|
8.4
|
|
|
$
|
17.0
|
|
Losses on Sales
|
|
(11.1
|
)
|
|
(0.9
|
)
|
|
(4.6
|
)
|
|||
Equity Securities:
|
|
|
|
|
|
|
||||||
Gains on Sales
|
|
12.3
|
|
|
42.0
|
|
|
19.9
|
|
|||
Losses on Sales
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|||
Real Estate:
|
|
|
|
|
|
|
||||||
Gains on Sales
|
|
—
|
|
|
6.4
|
|
|
1.1
|
|
|||
Other Investments:
|
|
|
|
|
|
|
||||||
Gains on Other Sales
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|||
Losses on Sales
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(0.2
|
)
|
|||
Net Gains on Trading Securities
|
|
—
|
|
|
0.6
|
|
|
0.2
|
|
|||
Net Realized Gains on Sales of Investments
|
|
$
|
26.4
|
|
|
$
|
56.5
|
|
|
$
|
33.1
|
|
|
|
|
|
|
|
|
||||||
Gross Gains on Sales
|
|
$
|
37.6
|
|
|
$
|
56.9
|
|
|
$
|
38.0
|
|
Gross Losses on Sales
|
|
(11.2
|
)
|
|
(1.0
|
)
|
|
(5.1
|
)
|
|||
Net Gains on Trading Securities
|
|
—
|
|
|
0.6
|
|
|
0.2
|
|
|||
Net Realized Gains on Sales of Investments
|
|
$
|
26.4
|
|
|
$
|
56.5
|
|
|
$
|
33.1
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Fixed Maturities
|
|
$
|
(2.0
|
)
|
|
$
|
(12.1
|
)
|
|
$
|
(26.6
|
)
|
Equity Securities
|
|
(2.5
|
)
|
|
(2.2
|
)
|
|
(5.6
|
)
|
|||
Real Estate
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|||
Net Impairment Losses Recognized in Earnings
|
|
$
|
(4.5
|
)
|
|
$
|
(14.3
|
)
|
|
$
|
(32.7
|
)
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Commissions
|
|
$
|
558.7
|
|
|
$
|
425.6
|
|
|
$
|
399.2
|
|
General Expenses
|
|
229.7
|
|
|
194.1
|
|
|
209.0
|
|
|||
Taxes, Licenses and Fees
|
|
73.2
|
|
|
52.8
|
|
|
48.8
|
|
|||
Total Costs Incurred
|
|
861.6
|
|
|
672.5
|
|
|
657.0
|
|
|||
Policy Acquisition Costs:
|
|
|
|
|
|
|
||||||
Deferred
|
|
(481.5
|
)
|
|
(351.6
|
)
|
|
(314.9
|
)
|
|||
Amortized
|
|
377.1
|
|
|
318.3
|
|
|
299.3
|
|
|||
Net Policy Acquisition Costs Deferred
|
|
(104.4
|
)
|
|
(33.3
|
)
|
|
(15.6
|
)
|
|||
Amortization of VOBA
|
|
143.3
|
|
|
5.1
|
|
|
5.9
|
|
|||
Insurance Expenses
|
|
$
|
900.5
|
|
|
$
|
644.3
|
|
|
$
|
647.3
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
||||
Deferred Income Tax Assets:
|
|
|
|
|
||||
Insurance Reserves
|
|
$
|
17.0
|
|
|
$
|
55.7
|
|
Unearned Premium Reserves
|
|
59.1
|
|
|
26.7
|
|
||
Tax Capitalization of Policy Acquisition Costs
|
|
44.0
|
|
|
41.9
|
|
||
Payroll and Employee Benefit Accruals
|
|
49.6
|
|
|
37.2
|
|
||
Net Operating Loss Carryforwards
|
|
5.5
|
|
|
31.8
|
|
||
Other
|
|
11.2
|
|
|
3.7
|
|
||
Total Deferred Income Tax Assets
|
|
186.4
|
|
|
197.0
|
|
||
Deferred Income Tax Liabilities:
|
|
|
|
|
||||
Investments
|
|
33.2
|
|
|
90.6
|
|
||
Deferred Policy Acquisition Costs
|
|
98.7
|
|
|
76.8
|
|
||
Life VIF and P&C Customer Relationships
|
|
6.0
|
|
|
6.9
|
|
||
Goodwill and Other Intangible Assets Acquired
|
|
45.2
|
|
|
22.3
|
|
||
Depreciable Assets
|
|
27.1
|
|
|
12.1
|
|
||
Other
|
|
2.4
|
|
|
3.1
|
|
||
Total Deferred Income Tax Liabilities
|
|
212.6
|
|
|
211.8
|
|
||
Net Deferred Income Tax Assets (Liabilities)
|
|
$
|
(26.2
|
)
|
|
$
|
(14.8
|
)
|
DOLLARS IN MILLIONS
|
|
NOL Carry-forwards
|
|
Deferred Tax Asset
|
||||
Expiring in:
|
|
|
|
|
||||
2026
|
|
$
|
3.9
|
|
|
$
|
0.8
|
|
2027
|
|
17.8
|
|
|
3.8
|
|
||
2028
|
|
4.4
|
|
|
0.9
|
|
||
Total All Years
|
|
$
|
26.1
|
|
|
$
|
5.5
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Current Income Tax Benefit (Expense)
|
|
$
|
32.2
|
|
|
$
|
(23.1
|
)
|
|
$
|
8.2
|
|
Deferred Income Tax Benefit (Expense)
|
|
(46.5
|
)
|
|
(15.1
|
)
|
|
2.3
|
|
|||
(Increase) Decrease Unrecognized Tax Benefits
|
|
3.6
|
|
|
(3.0
|
)
|
|
(1.3
|
)
|
|||
Income Tax Benefit (Expense)
|
|
$
|
(10.7
|
)
|
|
$
|
(41.2
|
)
|
|
$
|
9.2
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Income Tax Benefit (Expense):
|
|
|
|
|
|
|
||||||
Continuing Operations
|
|
$
|
(10.7
|
)
|
|
$
|
(41.2
|
)
|
|
$
|
9.2
|
|
Discontinued Operations
|
|
(0.6
|
)
|
|
(0.5
|
)
|
|
(2.2
|
)
|
|||
Unrealized Depreciation (Appreciation) on Securities
|
|
49.6
|
|
|
(25.9
|
)
|
|
0.9
|
|
|||
Foreign Currency Translation Adjustments on Investments
|
|
(0.1
|
)
|
|
(0.6
|
)
|
|
0.1
|
|
|||
Tax Effects from Postretirement Benefit Plans
|
|
1.5
|
|
|
(0.6
|
)
|
|
(7.3
|
)
|
|||
Tax Effects from Cash Flow Hedge
|
|
(0.3
|
)
|
|
2.4
|
|
|
(0.6
|
)
|
|||
Tax Effects from Long-term Equity-based Compensation included in Paid-in Capital
|
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
|||
Comprehensive Income Tax Benefit (Expense)
|
|
$
|
39.4
|
|
|
$
|
(66.4
|
)
|
|
$
|
(1.0
|
)
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
||||
Fair Value of Plan Assets at Beginning of Year
|
|
$
|
579.8
|
|
|
$
|
520.9
|
|
Actual Return on Plan Assets
|
|
(32.1
|
)
|
|
86.4
|
|
||
Employer Contributions
|
|
5.1
|
|
|
—
|
|
||
Benefits Paid
|
|
(27.5
|
)
|
|
(27.5
|
)
|
||
Fair Value of Plan Assets at End of Year
|
|
525.3
|
|
|
579.8
|
|
||
Projected Benefit Obligation at Beginning of Year
|
|
637.2
|
|
|
593.6
|
|
||
Interest Cost
|
|
20.3
|
|
|
20.6
|
|
||
Benefits Paid
|
|
(27.5
|
)
|
|
(27.5
|
)
|
||
Actuarial (Gains) Losses
|
|
(49.5
|
)
|
|
50.5
|
|
||
Projected Benefit Obligation at End of Year
|
|
580.5
|
|
|
637.2
|
|
||
Funded Status—Plan Assets in Deficit of Projected Benefit Obligation
|
|
$
|
(55.2
|
)
|
|
$
|
(57.4
|
)
|
Unamortized Amount Reported in AOCI at End of Year
|
|
$
|
(144.4
|
)
|
|
$
|
(137.2
|
)
|
Accumulated Benefit Obligation at End of Year
|
|
$
|
580.3
|
|
|
$
|
637.0
|
|
|
|
2018
|
|
2017
|
||
Discount Rate
|
|
4.28
|
%
|
|
3.63
|
%
|
Rate of Increase in Future Compensation Levels
|
|
3.40
|
|
|
3.40
|
|
ASSET CATEGORY
|
|
2018
|
|
2017
|
||
Cash and Short-term Investments
|
|
1
|
%
|
|
2
|
%
|
Corporate Bonds and Notes
|
|
41
|
|
|
31
|
|
Common and Preferred Stocks
|
|
37
|
|
|
50
|
|
Exchange Traded Funds
|
|
6
|
|
|
1
|
|
Other Assets
|
|
15
|
|
|
16
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
DOLLARS IN MILLIONS
|
|
Quoted Prices
in Active Markets
for Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Measured at Net Asset Value
|
|
Fair Value
|
||||||||||
Fixed Maturities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government and Government Agencies and Authorities
|
|
$
|
110.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
110.9
|
|
States and Political Subdivisions
|
|
—
|
|
|
2.1
|
|
|
—
|
|
|
—
|
|
|
2.1
|
|
|||||
Corporate Bonds and Notes
|
|
—
|
|
|
103.4
|
|
|
—
|
|
|
—
|
|
|
103.4
|
|
|||||
Equity Securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred Stocks:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Finance, Insurance and Real Estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Common Stocks:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Manufacturing
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other Industries
|
|
106.0
|
|
|
17.4
|
|
|
—
|
|
|
—
|
|
|
123.4
|
|
|||||
Other Equity Interests:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Collective Investment Funds
|
|
—
|
|
|
—
|
|
|
—
|
|
|
68.6
|
|
|
68.6
|
|
|||||
Exchange Traded Funds
|
|
34.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34.1
|
|
|||||
Limited Liability Companies and Limited Partnerships
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77.1
|
|
|
77.1
|
|
|||||
Short-term Investments
|
|
4.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.4
|
|
|||||
Receivables and Other
|
|
1.0
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
1.3
|
|
|||||
Total
|
|
$
|
256.4
|
|
|
$
|
122.9
|
|
|
$
|
0.3
|
|
|
$
|
145.7
|
|
|
$
|
525.3
|
|
DOLLARS IN MILLIONS
|
|
Quoted Prices
in Active Markets
for Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Measured at Net Asset Value
|
|
Fair Value
|
||||||||||
Fixed Maturities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government and Government Agencies and Authorities
|
|
$
|
56.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
56.7
|
|
|
States and Political Subdivisions
|
|
—
|
|
|
2.2
|
|
|
—
|
|
|
—
|
|
|
2.2
|
|
|||||
Corporate Bonds and Notes
|
|
—
|
|
|
122.0
|
|
|
—
|
|
|
—
|
|
|
122.0
|
|
|||||
Equity Securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred Stocks:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Finance, Insurance and Real Estate
|
|
—
|
|
|
4.9
|
|
|
—
|
|
|
—
|
|
|
4.9
|
|
|||||
Common Stocks:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Manufacturing
|
|
86.8
|
|
|
15.3
|
|
|
—
|
|
|
—
|
|
|
102.1
|
|
|||||
Other Industries
|
|
99.6
|
|
|
4.7
|
|
|
—
|
|
|
—
|
|
|
104.3
|
|
|||||
Other Equity Interests:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Collective Investment Funds
|
|
—
|
|
|
—
|
|
|
—
|
|
|
79.2
|
|
|
79.2
|
|
|||||
Exchange Traded Funds
|
|
5.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.1
|
|
|||||
Limited Liability Companies and Limited Partnerships
|
|
—
|
|
|
—
|
|
|
—
|
|
|
95.9
|
|
|
95.9
|
|
|||||
Short-term Investments
|
|
9.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.0
|
|
|||||
Receivables and Other
|
|
(1.9
|
)
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
(1.6
|
)
|
|||||
Total
|
|
$
|
255.3
|
|
|
$
|
149.1
|
|
|
$
|
0.3
|
|
|
$
|
175.1
|
|
|
$
|
579.8
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Service Cost Earned During the Year
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4.8
|
|
Interest Cost on Projected Benefit Obligation
|
|
20.3
|
|
|
20.6
|
|
|
20.1
|
|
|||
Expected Return on Plan Assets
|
|
(28.9
|
)
|
|
(30.9
|
)
|
|
(32.7
|
)
|
|||
Amortization of Actuarial Loss
|
|
4.3
|
|
|
2.6
|
|
|
6.6
|
|
|||
Curtailment Gain
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|||
Pension Expense (Income) Recognized in Consolidated Statements of Income
|
|
(4.3
|
)
|
|
(7.7
|
)
|
|
(1.5
|
)
|
|||
Unrecognized Pension Gain (Loss) Arising During the Year
|
|
11.5
|
|
|
(4.9
|
)
|
|
(0.7
|
)
|
|||
Amortization of Accumulated Unrecognized Pension Loss
|
|
(4.3
|
)
|
|
(2.6
|
)
|
|
(6.3
|
)
|
|||
Comprehensive Pension Expense (Income)
|
|
$
|
2.9
|
|
|
$
|
(15.2
|
)
|
|
$
|
(8.5
|
)
|
|
|
Year Ended
|
|
|
|
|
||||||
|
|
December 31, 2018
|
|
December 31, 2017
|
|
5/13/16 to 12/31/16
|
|
1/1/16 to 5/12/16
|
||||
Weighted-average Discount Rate
|
|
3.63
|
%
|
|
4.19
|
%
|
|
3.94
|
%
|
|
4.47
|
%
|
Service Cost Discount Rate
|
|
3.61
|
|
|
4.15
|
|
|
4.22
|
|
|
4.78
|
|
Interest Cost Discount Rate
|
|
3.26
|
|
|
3.52
|
|
|
3.18
|
|
|
3.69
|
|
Rate of Increase in Future Compensation Levels
|
|
3.40
|
|
|
2.56
|
|
|
3.15
|
|
|
3.15
|
|
Expected Long Term Rate of Return on Plan Assets
|
|
5.35
|
|
|
5.80
|
|
|
6.25
|
|
|
6.25
|
|
DOLLARS IN MILLIONS
|
|
Years Ending December 31,
|
||||||||||||||||||||||
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024-2028
|
||||||||||||||
Estimated Pension Benefit Payments
|
|
$
|
30.4
|
|
|
$
|
30.7
|
|
|
$
|
31.9
|
|
|
$
|
32.9
|
|
|
$
|
33.7
|
|
|
$
|
175.7
|
|
DOLLARS IN MILLIONS
|
|
|
||||||
2018
|
|
2017
|
||||||
Fair Value of Plans’ Assets at Beginning of Year
|
|
$
|
—
|
|
|
$
|
—
|
|
Employer Contributions
|
|
1.1
|
|
|
0.9
|
|
||
Plan Participants’ Contributions
|
|
0.3
|
|
|
0.5
|
|
||
Benefits Paid
|
|
(1.4
|
)
|
|
(1.4
|
)
|
||
Fair Value of Plan Assets at End of Year
|
|
—
|
|
|
—
|
|
||
Accumulated Postretirement Benefit Obligation at Beginning of Year
|
|
14.4
|
|
|
15.1
|
|
||
Obligation from Acquisition of Infinity
|
|
3.9
|
|
|
—
|
|
||
Service Cost
|
|
0.2
|
|
|
0.1
|
|
||
Interest Cost
|
|
0.4
|
|
|
0.4
|
|
||
Plan Participants’ Contributions
|
|
0.3
|
|
|
0.5
|
|
||
Benefits Paid
|
|
(1.4
|
)
|
|
(1.4
|
)
|
||
Medicare Part D Subsidy Received
|
|
0.2
|
|
|
0.2
|
|
||
Actuarial Gain
|
|
(3.0
|
)
|
|
(0.5
|
)
|
||
Accumulated Postretirement Benefit Obligation at End of Year
|
|
15.0
|
|
|
14.4
|
|
||
Funded Status—Accumulated Postretirement Benefit Obligation in Excess of Plans’ Assets
|
|
$
|
(15.0
|
)
|
|
$
|
(14.4
|
)
|
|
|
|
|
|
||||
Unamortized Actuarial Gain Reported in AOCI at End of Year
|
|
$
|
24.9
|
|
|
$
|
25.0
|
|
|
|
2018
|
|
2017
|
||
Discount Rate
|
|
4.02
|
%
|
|
3.36
|
%
|
Rate of Increase in Future Compensation Levels
|
|
2.20
|
|
|
2.20
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Service Cost Earned During the Year
|
|
$
|
0.2
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
Interest Cost on Accumulated Postretirement Benefit Obligation
|
|
0.4
|
|
|
0.4
|
|
|
0.8
|
|
|||
Amortization of Prior Service Credit
|
|
(1.3
|
)
|
|
—
|
|
|
—
|
|
|||
Amortization of Accumulated Unrecognized OPEB Gain
|
|
(1.8
|
)
|
|
(1.8
|
)
|
|
(1.4
|
)
|
|||
OPEB Income Recognized in Consolidated Statements of Income
|
|
(2.5
|
)
|
|
(1.3
|
)
|
|
(0.5
|
)
|
|||
Unrecognized OPEB Loss (Gain) Arising During the Year
|
|
(3.0
|
)
|
|
(0.5
|
)
|
|
(1.3
|
)
|
|||
Prior Service Credit Arising During the Year from Plan Amendments
|
|
—
|
|
|
(1.3
|
)
|
|
(11.0
|
)
|
|||
Amortization of Prior Service Credit
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|||
Amortization of Accumulated Unrecognized OPEB Gain
|
|
1.8
|
|
|
1.8
|
|
|
1.4
|
|
|||
Comprehensive OPEB Expense (Income)
|
|
$
|
(2.4
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
(11.4
|
)
|
|
|
2018
|
|
2017
|
|
2016
|
|||
Weighted-average Discount Rate
|
|
3.36
|
%
|
|
3.61
|
%
|
|
3.70
|
%
|
Service Cost Discount Rate
|
|
3.52
|
|
|
3.79
|
|
|
4.21
|
|
Interest Cost Discount Rate
|
|
2.96
|
|
|
2.92
|
|
|
2.90
|
|
Rate of Increase in Future Compensation Levels
|
|
2.20
|
|
|
2.60
|
|
|
2.64
|
|
DOLLARS IN MILLIONS
|
|
Years Ending December 31,
|
||||||||||||||||||||||
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024-2028
|
||||||||||||||
Estimated Benefit Payments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Excluding Medicare Part D Subsidy
|
|
$
|
1.7
|
|
|
$
|
1.6
|
|
|
$
|
1.5
|
|
|
$
|
1.6
|
|
|
$
|
1.5
|
|
|
$
|
6.2
|
|
Expected Medicare Part D Subsidy
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net Estimated Benefit Payments
|
|
$
|
1.7
|
|
|
$
|
1.6
|
|
|
$
|
1.5
|
|
|
$
|
1.6
|
|
|
$
|
1.5
|
|
|
$
|
6.2
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
||||
Preferred Property & Casualty Insurance
|
|
$
|
1,567.7
|
|
|
$
|
1,567.6
|
|
Specialty Property & Casualty Insurance
|
|
3,541.0
|
|
|
1,327.3
|
|
||
Life & Health Insurance
|
|
5,117.2
|
|
|
5,079.3
|
|
||
Corporate and Other, Net
|
|
1,319.0
|
|
|
402.0
|
|
||
Total Assets
|
|
$
|
11,544.9
|
|
|
$
|
8,376.2
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Preferred Property & Casualty Insurance:
|
|
|
|
|
|
|
||||||
Preferred Automobile
|
|
$
|
440.2
|
|
|
$
|
422.8
|
|
|
$
|
424.6
|
|
Homeowners
|
|
250.1
|
|
|
264.8
|
|
|
271.9
|
|
|||
Other Personal Lines
|
|
40.4
|
|
|
42.7
|
|
|
45.0
|
|
|||
Specialty Property & Casualty Insurance:
|
|
|
|
|
|
|
||||||
Specialty Automobile
|
|
1,889.5
|
|
|
954.3
|
|
|
820.0
|
|
|||
Commercial Automobile
|
|
137.9
|
|
|
51.4
|
|
|
53.3
|
|
|||
Life & Health Insurance:
|
|
|
|
|
|
|
||||||
Life
|
|
378.4
|
|
|
379.7
|
|
|
381.6
|
|
|||
Accident & Health
|
|
177.5
|
|
|
161.7
|
|
|
149.4
|
|
|||
Property
|
|
70.4
|
|
|
72.6
|
|
|
74.2
|
|
|||
Total Earned Premiums
|
|
$
|
3,384.4
|
|
|
$
|
2,350.0
|
|
|
$
|
2,220.0
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Segment Revenues:
|
|
|
|
|
|
|
||||||
Preferred Property & Casualty Insurance:
|
|
|
|
|
|
|
||||||
Earned Premiums
|
|
$
|
730.7
|
|
|
730.3
|
|
|
741.5
|
|
||
Net Investment Income
|
|
61.8
|
|
|
58.9
|
|
|
48.6
|
|
|||
Total Preferred Property & Casualty Insurance
|
|
792.5
|
|
|
789.2
|
|
|
790.1
|
|
|||
Specialty Property & Casualty Insurance:
|
|
|
|
|
|
|
||||||
Earned Premiums
|
|
2,027.4
|
|
|
1,005.7
|
|
|
873.3
|
|
|||
Net Investment Income
|
|
63.4
|
|
|
39.2
|
|
|
29.1
|
|
|||
Other Income
|
|
2.4
|
|
|
1.1
|
|
|
0.5
|
|
|||
Total Specialty Property & Casualty Insurance
|
|
2,093.2
|
|
|
1,046.0
|
|
|
902.9
|
|
|||
Life & Health Insurance:
|
|
|
|
|
|
|
||||||
Earned Premiums
|
|
626.3
|
|
|
614.0
|
|
|
605.2
|
|
|||
Net Investment Income
|
|
210.9
|
|
|
223.2
|
|
|
214.2
|
|
|||
Other Income
|
|
4.0
|
|
|
2.6
|
|
|
2.8
|
|
|||
Total Life & Health Insurance
|
|
841.2
|
|
|
839.8
|
|
|
822.2
|
|
|||
Total Segment Revenues
|
|
3,726.9
|
|
|
2,675.0
|
|
|
2,515.2
|
|
|||
Loss from Change in Fair Value of Equity and Convertible Securities
|
|
(64.3
|
)
|
|
—
|
|
|
—
|
|
|||
Net Realized Gains on the Sales of Investments
|
|
26.4
|
|
|
56.5
|
|
|
33.1
|
|
|||
Net Impairment Losses Recognized in Earnings
|
|
(4.5
|
)
|
|
(14.3
|
)
|
|
(32.7
|
)
|
|||
Other
|
|
40.6
|
|
|
6.2
|
|
|
6.3
|
|
|||
Total Revenues
|
|
$
|
3,725.1
|
|
|
$
|
2,723.4
|
|
|
$
|
2,521.9
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Segment Operating Profit (Loss):
|
|
|
|
|
|
|
||||||
Preferred Property & Casualty Insurance
|
|
$
|
28.6
|
|
|
$
|
(78.1
|
)
|
|
$
|
15.8
|
|
Specialty Property & Casualty Insurance
|
|
145.6
|
|
|
80.5
|
|
|
(27.7
|
)
|
|||
Life & Health Insurance
|
|
115.9
|
|
|
140.2
|
|
|
46.7
|
|
|||
Total Segment Operating Profit
|
|
290.1
|
|
|
142.6
|
|
|
34.8
|
|
|||
Corporate and Other Operating Loss
|
|
(3.9
|
)
|
|
(23.7
|
)
|
|
(31.7
|
)
|
|||
Adjusted Consolidated Operating Profit
|
|
286.2
|
|
|
118.9
|
|
|
3.1
|
|
|||
Loss from Change in Fair Value of Equity and Convertible Securities
|
|
(64.3
|
)
|
|
—
|
|
|
—
|
|
|||
Net Realized Gains on Sales of Investments
|
|
26.4
|
|
|
56.5
|
|
|
33.1
|
|
|||
Net Impairment Losses Recognized in Earnings
|
|
(4.5
|
)
|
|
(14.3
|
)
|
|
(32.7
|
)
|
|||
Acquisition Related Transaction, Integration and Other Costs
|
|
(44.7
|
)
|
|
—
|
|
|
—
|
|
|||
Income from Continuing Operations before Income Taxes
|
|
$
|
199.1
|
|
|
$
|
161.1
|
|
|
$
|
3.5
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Preferred Property & Casualty Insurance
|
|
$
|
117.2
|
|
|
$
|
114.6
|
|
|
$
|
115.3
|
|
Specialty Property & Casualty Insurance
|
|
202.0
|
|
|
150.2
|
|
|
136.8
|
|
|||
Life & Health Insurance
|
|
57.9
|
|
|
53.5
|
|
|
47.2
|
|
|||
Total Amortization
|
|
$
|
377.1
|
|
|
$
|
318.3
|
|
|
$
|
299.3
|
|
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Income from Discontinued Operations before Income Taxes:
|
|
|
|
|
|
|
||||||
Change in Estimate of Retained Liabilities Arising from Discontinued Operations
|
|
$
|
2.4
|
|
|
$
|
1.5
|
|
|
$
|
6.3
|
|
Income Tax Expense
|
|
(0.7
|
)
|
|
(0.5
|
)
|
|
(2.2
|
)
|
|||
Income from Discontinued Operations
|
|
$
|
1.7
|
|
|
$
|
1.0
|
|
|
$
|
4.1
|
|
|
|
|
|
|
|
|
||||||
Income from Discontinued Operations Per Unrestricted Share:
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
0.03
|
|
|
$
|
0.02
|
|
|
$
|
0.08
|
|
Diluted
|
|
$
|
0.03
|
|
|
$
|
0.02
|
|
|
$
|
0.08
|
|
DOLLARS IN MILLIONS
|
|
Catastrophe Losses and
LAE
|
|
Percentage
of Coverage
|
|||||||
In Excess of
|
|
Up to
|
|
||||||||
Retained
|
|
$
|
—
|
|
|
$
|
50.0
|
|
|
—
|
%
|
1st Layer of Coverage
|
|
50.0
|
|
|
150.0
|
|
|
95.0
|
|
||
2nd Layer of Coverage
|
|
150.0
|
|
|
250.0
|
|
|
63.3
|
|
||
2nd Layer of Coverage
|
|
150.0
|
|
|
350.0
|
|
|
31.7
|
|
DOLLARS IN MILLIONS
|
|
Catastrophe Losses and
LAE
|
|
Percentage
of Coverage
|
|||||||
In Excess of
|
|
Up to
|
|
||||||||
Retained
|
|
$
|
—
|
|
|
$
|
50.0
|
|
|
—
|
%
|
1st Layer of Coverage
|
|
50.0
|
|
|
150.0
|
|
|
95.0
|
|
||
2nd Layer of Coverage
|
|
150.0
|
|
|
250.0
|
|
|
31.7
|
|
||
2nd Layer of Coverage
|
|
150.0
|
|
|
350.0
|
|
|
63.3
|
|
DOLLARS IN MILLIONS
|
|
Catastrophe Losses and
LAE
|
|
Percentage
of Coverage
|
|||||||
In Excess of
|
|
Up to
|
|
||||||||
Retained
|
|
$
|
—
|
|
|
$
|
50.0
|
|
|
—
|
%
|
1st Layer of Coverage
|
|
50.0
|
|
|
150.0
|
|
|
95.0
|
|
||
2nd Layer of Coverage
|
|
150.0
|
|
|
350.0
|
|
|
95.0
|
|
|
|
Aggregate Catastrophe
Losses and LAE |
||||||
DOLLARS IN MILLIONS
|
|
In Excess of
|
|
Up to
|
||||
Retained
|
|
$
|
—
|
|
|
$
|
60.0
|
|
Coverage
|
|
60.0
|
|
|
110.0
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Preferred Property & Casualty Insurance
|
|
$
|
17.8
|
|
|
$
|
10.8
|
|
|
$
|
11.8
|
|
Specialty Property & Casualty Insurance
|
|
2.6
|
|
|
0.1
|
|
|
0.1
|
|
|||
Life & Health Insurance
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|||
Total Ceded Catastrophe Reinsurance Premiums
|
|
$
|
20.5
|
|
|
$
|
11.0
|
|
|
$
|
12.0
|
|
DOLLARS IN MILLIONS
|
|
2018
|
|
2017
|
|
2016
|
||||||
Preferred Property & Casualty Insurance
|
|
$
|
79.1
|
|
|
$
|
168.8
|
|
|
$
|
84.1
|
|
Specialty Property & Casualty Insurance
|
|
4.4
|
|
|
5.2
|
|
|
6.3
|
|
|||
Life & Health Insurance
|
|
4.1
|
|
|
6.4
|
|
|
5.4
|
|
|||
Total Catastrophe Losses and LAE
|
|
$
|
87.6
|
|
|
$
|
180.4
|
|
|
$
|
95.8
|
|
DOLLARS IN MILLIONS
|
|
Fair Value Measurements
|
|
|
|
Fair Value
|
||||||||||||||
Quoted Prices
in Active Markets
for Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Measured at Net Asset Value
|
|
|||||||||||||
Fixed Maturities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government and Government Agencies and Authorities
|
|
$
|
156.5
|
|
|
$
|
709.2
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
865.7
|
|
|
States and Political Subdivisions
|
|
—
|
|
|
1,619.1
|
|
|
—
|
|
|
—
|
|
|
1,619.1
|
|
|||||
Foreign Governments
|
|
—
|
|
|
5.9
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
|||||
Corporate Securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bonds and Notes
|
|
—
|
|
|
3,011.2
|
|
|
382.6
|
|
|
—
|
|
|
3,393.8
|
|
|||||
Collateralized Loan Obligations
|
|
—
|
|
|
19.1
|
|
|
504.9
|
|
|
—
|
|
|
524.0
|
|
|||||
Other Mortgage- and Asset-backed
|
|
—
|
|
|
5.8
|
|
|
9.9
|
|
|
—
|
|
|
15.7
|
|
|||||
Total Investments in Fixed Maturities
|
|
156.5
|
|
|
5,370.3
|
|
|
897.4
|
|
|
—
|
|
|
6,424.2
|
|
|||||
Equity Securities at Fair Value:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred Stocks:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Finance, Insurance and Real Estate
|
|
—
|
|
|
41.2
|
|
|
—
|
|
|
—
|
|
|
41.2
|
|
|||||
Other Industries
|
|
—
|
|
|
13.0
|
|
|
—
|
|
|
—
|
|
|
13.0
|
|
|||||
Common Stocks:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Finance, Insurance and Real Estate
|
|
10.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.2
|
|
|||||
Other Industries
|
|
0.2
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|||||
Other Equity Interests:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Exchange Traded Funds
|
|
427.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
427.3
|
|
|||||
Limited Liability Companies and Limited Partnerships
|
|
—
|
|
|
—
|
|
|
—
|
|
|
192.0
|
|
|
192.0
|
|
|||||
Total Investments in Equity Securities at Fair Value
|
|
437.7
|
|
|
54.7
|
|
|
—
|
|
|
192.0
|
|
|
684.4
|
|
|||||
Convertible Securities at Fair Value
|
|
—
|
|
|
31.5
|
|
|
—
|
|
|
—
|
|
|
31.5
|
|
|||||
Total
|
|
$
|
594.2
|
|
|
$
|
5,456.5
|
|
|
$
|
897.4
|
|
|
$
|
192.0
|
|
|
$
|
7,140.1
|
|
DOLLARS IN MILLIONS
|
|
Fair Value Measurements
|
|
Fair Value
|
||||||||||||||||
Quoted Prices
in Active Markets
for Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Measured at Net Asset Value
|
|
|||||||||||||
Fixed Maturities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government and Government Agencies and Authorities
|
|
$
|
115.8
|
|
|
$
|
440.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
556.1
|
|
States and Political Subdivisions
|
|
—
|
|
|
1,701.8
|
|
|
—
|
|
|
—
|
|
|
1,701.8
|
|
|||||
Foreign Governments
|
|
—
|
|
|
3.2
|
|
|
—
|
|
|
—
|
|
|
3.2
|
|
|||||
Corporate Securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bonds and Notes
|
|
—
|
|
|
2,579.1
|
|
|
401.5
|
|
|
—
|
|
|
2,980.6
|
|
|||||
Redeemable Preferred Stocks
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|||||
Collateralized Loan Obligations
|
|
—
|
|
|
46.6
|
|
|
93.2
|
|
|
—
|
|
|
139.8
|
|
|||||
Other Mortgage- and Asset-backed
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|||||
Total Investments in Fixed Maturities
|
|
115.8
|
|
|
4,772.1
|
|
|
494.8
|
|
|
—
|
|
|
5,382.7
|
|
|||||
Equity Securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred Stocks:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Finance, Insurance and Real Estate
|
|
—
|
|
|
55.7
|
|
|
—
|
|
|
—
|
|
|
55.7
|
|
|||||
Other Industries
|
|
—
|
|
|
12.3
|
|
|
10.8
|
|
|
—
|
|
|
23.1
|
|
|||||
Common Stocks:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Finance, Insurance and Real Estate
|
|
7.0
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
7.1
|
|
|||||
Other Industries
|
|
0.7
|
|
|
0.4
|
|
|
16.6
|
|
|
—
|
|
|
17.7
|
|
|||||
Other Equity Interests:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Exchange Traded Funds
|
|
219.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
219.5
|
|
|||||
Limited Liability Companies and Limited Partnerships
|
|
—
|
|
|
—
|
|
|
34.4
|
|
|
168.5
|
|
|
202.9
|
|
|||||
Total Investments in Equity Securities
|
|
227.2
|
|
|
68.5
|
|
|
61.8
|
|
|
168.5
|
|
|
526.0
|
|
|||||
Fair Value Option Investments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Limited Liability Companies and Limited Partnerships Hedge Funds
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77.5
|
|
|
77.5
|
|
|||||
Other Investments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading Securities
|
|
6.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.7
|
|
|||||
Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative Instrument Classified as Cash Flow Hedge
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|||||
Total
|
|
$
|
349.7
|
|
|
$
|
4,839.8
|
|
|
$
|
556.6
|
|
|
$
|
246.0
|
|
|
$
|
5,992.1
|
|
DOLLARS IN MILLIONS
|
|
Unobservable Input
|
|
Total Fair Value
|
|
Range of Unobservable Inputs
|
|
Weighted Average Yield
|
|||||||
Investment-grade
|
|
Market Yield
|
|
$
|
146.7
|
|
|
3.7
|
%
|
-
|
10.9
|
%
|
|
5.2
|
%
|
Non-investment-grade:
|
|
|
|
|
|
|
|
|
|
|
|||||
Senior Debt
|
|
Market Yield
|
|
142.3
|
|
|
4.8
|
|
-
|
30.0
|
|
|
11.5
|
|
|
Junior Debt
|
|
Market Yield
|
|
87.6
|
|
|
11.0
|
|
-
|
28.5
|
|
|
14.2
|
|
|
Collateralized Loan Obligations (investment-grade and non-investment-grade)
|
|
Market Yield
|
|
504.9
|
|
|
4.1
|
|
-
|
13.4
|
|
|
6.1
|
|
|
Other
|
|
Various
|
|
15.9
|
|
|
|
|
|
|
|
||||
Total Fixed Maturity Investments in Corporate Securities
|
|
|
|
$
|
897.4
|
|
|
|
|
|
|
|
DOLLARS IN MILLIONS
|
|
Unobservable Input
|
|
Total Fair Value
|
|
Range of Unobservable Inputs
|
|
Weighted Average Yield
|
|||||||
Investment-grade
|
|
Market Yield
|
|
$
|
96.2
|
|
|
3.0
|
%
|
-
|
6.7
|
%
|
|
3.8
|
%
|
Non-investment-grade:
|
|
|
|
|
|
|
|
|
|
|
|||||
Senior Debt
|
|
Market Yield
|
|
138.1
|
|
|
4.5
|
|
-
|
15.7
|
|
|
10.0
|
|
|
Junior Debt
|
|
Market Yield
|
|
154.1
|
|
|
9.6
|
|
-
|
24.3
|
|
|
12.9
|
|
|
Collateralized Loan Obligations
|
|
Market Yield
|
|
93.2
|
|
|
4.3
|
|
-
|
10.6
|
|
|
7.8
|
|
|
Other
|
|
Various
|
|
13.2
|
|
|
|
|
|
|
|
||||
Total Fixed Maturity Investments in Corporate Securities
|
|
|
|
$
|
494.8
|
|
|
|
|
|
|
|
DOLLARS IN MILLIONS
|
|
Fixed Maturities
|
|
Equity Securities
|
|
|
||||||||||||||||||||||||||
|
Corporate
Bonds and Notes |
|
States and Political Sub-divisions
|
|
Redeemable
Preferred
Stocks
|
|
Collateralized Loan Obligations
|
|
Other Mortgage-
and Asset-
backed
|
|
Preferred
and Common Stocks |
|
Other
Equity
Interests
|
|
Total
|
|||||||||||||||||
Balance at Beginning of Year
|
|
$
|
401.5
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
93.2
|
|
|
$
|
—
|
|
|
$
|
27.4
|
|
|
$
|
34.4
|
|
|
$
|
556.6
|
|
Total Gains (Losses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Included in Consolidated Statements of Income
|
|
4.4
|
|
|
—
|
|
|
(0.1
|
)
|
|
2.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.0
|
|
||||||||
Included in Other Comprehensive Income
|
|
(2.2
|
)
|
|
—
|
|
|
—
|
|
|
(16.3
|
)
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
(18.4
|
)
|
||||||||
Purchases
|
|
201.8
|
|
|
1.8
|
|
|
—
|
|
|
449.7
|
|
|
10.0
|
|
|
—
|
|
|
—
|
|
|
663.3
|
|
||||||||
Settlements
|
|
(108.1
|
)
|
|
—
|
|
|
—
|
|
|
(58.3
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
(166.6
|
)
|
||||||||
Sales
|
|
(109.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(109.5
|
)
|
||||||||
Transfers into Level 3
|
|
2.4
|
|
|
—
|
|
|
—
|
|
|
33.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36.3
|
|
||||||||
Transfers out of Level 3
|
|
(7.7
|
)
|
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.4
|
)
|
|
(34.4
|
)
|
|
(71.3
|
)
|
||||||||
Balance at End of Year
|
|
$
|
382.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
504.9
|
|
|
$
|
9.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
897.4
|
|
DOLLARS IN MILLIONS
|
|
Fixed Maturities
|
|
Equity Securities
|
|
Total
|
||||||||||||||||||||||||||
Corporate
Bonds and
Notes
|
|
States and Political Sub-divisions
|
|
Redeemable
Preferred
Stocks
|
|
Collateralized Loan Obligations
|
|
Other Mortgage-
and Asset- backed |
|
Preferred
and
Common
Stocks
|
|
Other
Equity
Interests
|
|
|||||||||||||||||||
Balance at Beginning of Year
|
|
$
|
403.2
|
|
|
$
|
3.8
|
|
|
$
|
0.6
|
|
|
$
|
103.5
|
|
|
$
|
—
|
|
|
$
|
29.7
|
|
|
$
|
40.9
|
|
|
$
|
581.7
|
|
Total Gains (Losses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Included in Consolidated Statement of Income
|
|
(5.7
|
)
|
|
(1.2
|
)
|
|
0.1
|
|
|
1.5
|
|
|
—
|
|
|
1.4
|
|
|
4.0
|
|
|
0.1
|
|
||||||||
Included in Other Comprehensive Income
|
|
4.9
|
|
|
0.1
|
|
|
(0.1
|
)
|
|
2.4
|
|
|
—
|
|
|
3.4
|
|
|
(4.8
|
)
|
|
5.9
|
|
||||||||
Purchases
|
|
171.0
|
|
|
—
|
|
|
—
|
|
|
34.0
|
|
|
—
|
|
|
4.6
|
|
|
3.1
|
|
|
212.7
|
|
||||||||
Settlements
|
|
(110.6
|
)
|
|
(2.6
|
)
|
|
(0.5
|
)
|
|
(33.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(147.2
|
)
|
||||||||
Sales
|
|
(40.8
|
)
|
|
—
|
|
|
—
|
|
|
(7.9
|
)
|
|
—
|
|
|
(8.2
|
)
|
|
(8.8
|
)
|
|
(65.7
|
)
|
||||||||
Transfers into Level 3
|
|
8.1
|
|
|
1.4
|
|
|
—
|
|
|
5.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14.5
|
|
||||||||
Transfers out of Level 3
|
|
(28.6
|
)
|
|
(1.5
|
)
|
|
—
|
|
|
(11.8
|
)
|
|
—
|
|
|
(3.5
|
)
|
|
—
|
|
|
(45.4
|
)
|
||||||||
Balance at End of Year
|
|
$
|
401.5
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
93.2
|
|
|
$
|
—
|
|
|
$
|
27.4
|
|
|
$
|
34.4
|
|
|
$
|
556.6
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
(Dollars in Millions)
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
||||||||
Loans to Policyholders
|
|
$
|
300.6
|
|
|
$
|
542.6
|
|
|
$
|
298.6
|
|
|
$
|
560.3
|
|
Short-term Investments
|
|
286.1
|
|
|
286.1
|
|
|
235.5
|
|
|
235.5
|
|
||||
Financial Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Debt
|
|
909.0
|
|
|
911.2
|
|
|
592.3
|
|
|
614.6
|
|
||||
Collateralized Borrowings (Included in Other Liabilities)
|
|
10.0
|
|
|
10.0
|
|
|
—
|
|
|
—
|
|
|
|
Three Months Ended (Unaudited)
|
|
Year Ended
|
||||||||||||||||
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
|
|
Mar 31,
2018 |
|
Jun 30,
2018 |
|
Sep 30,
2018 |
|
Dec 31,
2018 |
|
Dec 31,
2018 |
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earned Premiums
|
|
$
|
609.8
|
|
|
$
|
658.1
|
|
|
$
|
1,052.9
|
|
|
$
|
1,063.6
|
|
|
$
|
3,384.4
|
|
Net Investment Income
|
|
79.2
|
|
|
78.4
|
|
|
92.0
|
|
|
91.3
|
|
|
340.9
|
|
|||||
Other Income
|
|
1.2
|
|
|
1.2
|
|
|
37.8
|
|
|
2.0
|
|
|
42.2
|
|
|||||
Income (Loss) from Changes in Fair Value of Equity and Convertible Securities
|
|
0.7
|
|
|
0.4
|
|
|
11.0
|
|
|
(76.4
|
)
|
|
(64.3
|
)
|
|||||
Net Realized Gains on Sales of Investments
|
|
2.6
|
|
|
3.8
|
|
|
3.6
|
|
|
16.4
|
|
|
26.4
|
|
|||||
Other-than-temporary Impairment Losses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Other-than-temporary Impairment Losses
|
|
(0.5
|
)
|
|
—
|
|
|
(1.8
|
)
|
|
(2.2
|
)
|
|
(4.5
|
)
|
|||||
Portion of Losses Recognized in Other Comprehensive Income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net Impairment Losses Recognized in Earnings
|
|
(0.5
|
)
|
|
—
|
|
|
(1.8
|
)
|
|
(2.2
|
)
|
|
(4.5
|
)
|
|||||
Total Revenues
|
|
693.0
|
|
|
741.9
|
|
|
1,195.5
|
|
|
1,094.7
|
|
|
3,725.1
|
|
|||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses
|
|
436.9
|
|
|
499.5
|
|
|
757.3
|
|
|
772.8
|
|
|
2,466.5
|
|
|||||
Insurance Expenses
|
|
160.1
|
|
|
171.2
|
|
|
296.0
|
|
|
273.2
|
|
|
900.5
|
|
|||||
Interest and Other Expenses
|
|
29.0
|
|
|
25.7
|
|
|
61.7
|
|
|
42.6
|
|
|
159.0
|
|
|||||
Total Expenses
|
|
626.0
|
|
|
696.4
|
|
|
1,115.0
|
|
|
1,088.6
|
|
|
3,526.0
|
|
|||||
Income (Loss) from Continuing Operations before Income Taxes
|
|
67.0
|
|
|
45.5
|
|
|
80.5
|
|
|
6.1
|
|
|
199.1
|
|
|||||
Income Tax Benefit (Expense)
|
|
(13.4
|
)
|
|
(8.0
|
)
|
|
11.8
|
|
|
(1.1
|
)
|
|
(10.7
|
)
|
|||||
Income (Loss) from Continuing Operations
|
|
53.6
|
|
|
37.5
|
|
|
92.3
|
|
|
5.0
|
|
|
188.4
|
|
|||||
Income (Loss) from Discontinued Operations
|
|
0.2
|
|
|
0.1
|
|
|
(0.1
|
)
|
|
1.5
|
|
|
1.7
|
|
|||||
Net Income (Loss)
|
|
$
|
53.8
|
|
|
$
|
37.6
|
|
|
$
|
92.2
|
|
|
$
|
6.5
|
|
|
$
|
190.1
|
|
Income (Loss) from Continuing Operations Per Unrestricted Share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
$
|
1.03
|
|
|
$
|
0.73
|
|
|
$
|
1.42
|
|
|
$
|
0.08
|
|
|
$
|
3.22
|
|
Diluted
|
|
$
|
1.02
|
|
|
$
|
0.73
|
|
|
$
|
1.40
|
|
|
$
|
0.08
|
|
|
$
|
3.19
|
|
Net Income (Loss) Per Unrestricted Share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
$
|
1.03
|
|
|
$
|
0.73
|
|
|
$
|
1.42
|
|
|
$
|
0.10
|
|
|
$
|
3.25
|
|
Diluted
|
|
$
|
1.02
|
|
|
$
|
0.73
|
|
|
$
|
1.40
|
|
|
$
|
0.10
|
|
|
$
|
3.22
|
|
Dividends Paid to Shareholders Per Share
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
|
$
|
0.96
|
|
|
|
Three Months Ended (Unaudited)
|
|
Year Ended
|
||||||||||||||||
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
|
|
Mar 31,
2017 |
|
Jun 30,
2017 |
|
Sep 30,
2017 |
|
Dec 31,
2017 |
|
Dec 31,
2017 |
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earned Premiums
|
|
$
|
563.4
|
|
|
$
|
582.5
|
|
|
$
|
598.2
|
|
|
$
|
605.9
|
|
|
$
|
2,350.0
|
|
Net Investment Income
|
|
81.6
|
|
|
77.1
|
|
|
85.9
|
|
|
82.6
|
|
|
327.2
|
|
|||||
Other Income
|
|
0.9
|
|
|
1.0
|
|
|
1.0
|
|
|
1.1
|
|
|
4.0
|
|
|||||
Net Realized Gains on Sales of Investments
|
|
10.5
|
|
|
26.4
|
|
|
8.1
|
|
|
11.5
|
|
|
56.5
|
|
|||||
Other-than-temporary Impairment Losses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Other-than-temporary Impairment Losses
|
|
(5.2
|
)
|
|
(2.6
|
)
|
|
(2.9
|
)
|
|
(3.7
|
)
|
|
(14.4
|
)
|
|||||
Portion of Losses Recognized in Other Comprehensive Income
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
0.1
|
|
|||||
Net Impairment Losses Recognized in Earnings
|
|
(5.0
|
)
|
|
(2.6
|
)
|
|
(2.9
|
)
|
|
(3.8
|
)
|
|
(14.3
|
)
|
|||||
Total Revenues
|
|
651.4
|
|
|
684.4
|
|
|
690.3
|
|
|
697.3
|
|
|
2,723.4
|
|
|||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses
|
|
477.4
|
|
|
447.4
|
|
|
440.1
|
|
|
472.5
|
|
|
1,837.4
|
|
|||||
Insurance Expenses
|
|
158.0
|
|
|
163.5
|
|
|
163.7
|
|
|
159.1
|
|
|
644.3
|
|
|||||
Interest and Other Expenses
|
|
19.5
|
|
|
21.4
|
|
|
18.2
|
|
|
21.5
|
|
|
80.6
|
|
|||||
Total Expenses
|
|
654.9
|
|
|
632.3
|
|
|
622.0
|
|
|
653.1
|
|
|
2,562.3
|
|
|||||
Income (Loss) from Continuing Operations before Income Taxes
|
|
(3.5
|
)
|
|
52.1
|
|
|
68.3
|
|
|
44.2
|
|
|
161.1
|
|
|||||
Income Tax Benefit (Expense)
|
|
3.1
|
|
|
(15.5
|
)
|
|
(20.5
|
)
|
|
(8.3
|
)
|
|
(41.2
|
)
|
|||||
Income from Continuing Operations
|
|
(0.4
|
)
|
|
36.6
|
|
|
47.8
|
|
|
35.9
|
|
|
119.9
|
|
|||||
Income (Loss) from Discontinued Operations
|
|
0.1
|
|
|
—
|
|
|
(0.1
|
)
|
|
1.0
|
|
|
1.0
|
|
|||||
Net Income
|
|
$
|
(0.3
|
)
|
|
$
|
36.6
|
|
|
$
|
47.7
|
|
|
$
|
36.9
|
|
|
$
|
120.9
|
|
Income from Continuing Operations Per Unrestricted Share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
$
|
(0.01
|
)
|
|
$
|
0.71
|
|
|
$
|
0.92
|
|
|
$
|
0.69
|
|
|
$
|
2.32
|
|
Diluted
|
|
$
|
(0.01
|
)
|
|
$
|
0.71
|
|
|
$
|
0.92
|
|
|
$
|
0.69
|
|
|
$
|
2.31
|
|
Net Income Per Unrestricted Share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
$
|
(0.01
|
)
|
|
$
|
0.71
|
|
|
$
|
0.92
|
|
|
$
|
0.71
|
|
|
$
|
2.34
|
|
Diluted
|
|
$
|
(0.01
|
)
|
|
$
|
0.71
|
|
|
$
|
0.92
|
|
|
$
|
0.71
|
|
|
$
|
2.33
|
|
Dividends Paid to Shareholders Per Share
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
|
$
|
0.96
|
|
•
|
Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
|
•
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
|
•
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.
|
|
|
|
||
/S/ JOSEPH P. LACHER, JR.
|
|
|
|
/S/ JAMES J. MCKINNEY
|
Joseph P. Lacher, Jr.
|
|
|
|
James J. McKinney
|
President and Chief Executive Officer
|
|
|
|
Senior Vice President and Chief Financial Officer
|
Kemper Corporation
|
|
|
|
Kemper Corporation
|
Plan Category
|
|
Number of Securities
to be Issued Upon
Exercise of
Outstanding Options,
Warrants and Rights
|
|
Weighted-Average
Exercise Price of
Outstanding Options,
Warrants and Rights
|
|
Number of Securities
Remaining Available
for Future Issuance
Under Equity
Compensation Plans
or Programs (1)
|
||||
Equity Compensation Plans Approved by Security Holders
|
|
1,434,273
|
|
|
$
|
46.48
|
|
|
4,510,504
|
|
Equity Compensation Plans Not Approved by Security Holders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
|
1,434,273
|
|
|
$
|
46.48
|
|
|
4,510,504
|
|
1.
|
Financial Statements. The consolidated balance sheets of Kemper and subsidiaries as of
December 31, 2018
and
2017
, and the consolidated statements of income, comprehensive income (loss), cash flows and shareholders’ equity for the years ended
December 31, 2018
,
2017
and
2016
, together with the notes thereto and the report of Deloitte & Touche LLP thereon appearing in Item 8 are included in this
2018
Annual Report.
|
2.
|
Financial Statement Schedules. The following four financial statement schedules are included on the pages immediately following the signature pages hereof. Schedules not listed here have been omitted because they are not applicable or not material or the required information is included in the Consolidated Financial Statements.
|
3.
|
Exhibits. An Exhibit Index has been filed as part of this report on pages 144 through 148.
|
(b)
|
Exhibits. Included in Item 15(a)3 above
|
(c)
|
Financial Statement Schedules. Included in Item 15(a)2 above
|
|
|
|
|
Incorporated by Reference
|
|
|
|||||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
File Number
|
|
Exhibit
|
|
Filing Date
|
|
Filed or Furnished Herewith
|
|
|
|
8-K
|
|
001-18298
|
|
2.1
|
|
|
February 14, 2018
|
|
|
||
|
|
8-K
|
|
001-18298
|
|
3.2
|
|
|
August 8, 2014
|
|
|
||
|
|
8-K
|
|
001-18298
|
|
3.3
|
|
|
August 8, 2014
|
|
|
||
|
|
8-K
|
|
001-18298
|
|
4.1
|
|
|
February 27, 2014
|
|
|
||
|
|
8-K
|
|
001-18298
|
|
4.2
|
|
|
February 27, 2014
|
|
|
||
|
|
8-K
|
|
001-18298
|
|
4.2
|
|
|
February 24, 2015
|
|
|
||
|
|
|
S-3
|
|
333-168605
|
|
4.4
|
|
|
August 6, 2010
|
|
|
|
|
|
8-K
|
|
000-50167
|
|
4.1
|
|
|
September 17, 2012
|
|
|
||
|
|
8-K
|
|
001-18298
|
|
4.1
|
|
|
December 3, 2018
|
|
|
||
|
|
|
|
|
|
|
|
|
|
X
|
|||
|
|
8-K
|
|
001-18298
|
|
10.1
|
|
|
June 12, 2018
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.2
|
|
|
February 14, 2014
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
|||||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
File Number
|
|
Exhibit
|
|
Filing Date
|
|
Filed or Furnished Herewith
|
|
|
|
8-K
|
|
001-18298
|
|
10.1
|
|
|
March 21, 2014
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.3
|
|
|
February 14, 2014
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.5
|
|
|
February 13, 2017
|
|
|
||
|
|
10-Q
|
|
001-18298
|
|
10.3
|
|
|
May 5, 2016
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.2
|
|
|
February 4, 2009
|
|
|
||
|
|
10-Q
|
|
001-18298
|
|
10.6
|
|
|
May 4, 2011
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.7
|
|
|
February 4, 2009
|
|
|
||
|
|
10-Q
|
|
001-18298
|
|
10.2
|
|
|
May 4, 2011
|
|
|
||
|
|
10-Q
|
|
001-18298
|
|
10.8
|
|
|
May 4, 2011
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.4
|
|
|
February 4, 2009
|
|
|
||
|
|
10-Q
|
|
001-18298
|
|
10.9
|
|
|
May 4, 2011
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.9
|
|
|
February 3, 2011
|
|
|
||
|
|
10-Q
|
|
001-18298
|
|
10.1
|
|
|
October 31, 2013
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.17
|
|
|
February 13, 2017
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.13
|
|
|
February 17, 2012
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.24
|
|
|
February 15, 2013
|
|
|
||
|
|
10-Q
|
|
001-18298
|
|
10.1
|
|
|
May 2, 2013
|
|
|
||
|
|
10-Q
|
|
001-18298
|
|
10.2
|
|
|
May 2, 2013
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
|||||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
File Number
|
|
Exhibit
|
|
Filing Date
|
|
Filed or Furnished Herewith
|
|
|
|
10-K
|
|
001-18298
|
|
10.24
|
|
|
February 14, 2014
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.25
|
|
|
February 14, 2014
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.26
|
|
|
February 14, 2014
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.27
|
|
|
February 14, 2014
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.28
|
|
|
February 14, 2014
|
|
|
||
|
|
10-Q
|
|
001-18298
|
|
10.1
|
|
|
May 5, 2016
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.29
|
|
|
February 13, 2017
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.30
|
|
|
February 13, 2017
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.31
|
|
|
February 13, 2017
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.33
|
|
|
February 13, 2017
|
|
|
||
10.31
*
|
|
|
10-K
|
|
001-18298
|
|
10.31
|
|
|
February 13, 2018
|
|
|
|
|
|
10-K
|
|
001-18298
|
|
10.32
|
|
|
February 13, 2018
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.33
|
|
|
February 13, 2018
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.34
|
|
|
February 13, 2018
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.35
|
|
|
February 13, 2018
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
|||||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
File Number
|
|
Exhibit
|
|
Filing Date
|
|
Filed or Furnished Herewith
|
|
|
|
10-K
|
|
001-18298
|
|
10.36
|
|
|
February 13, 2018
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.37
|
|
|
February 13, 2018
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.38
|
|
|
February 13, 2018
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.39
|
|
|
February 13, 2018
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.32
|
|
|
February 14, 2014
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.34
|
|
|
February 14, 2014
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.35
|
|
|
February 14, 2014
|
|
|
||
|
|
10-Q
|
|
001-18298
|
|
10.2
|
|
|
July 30, 2018
|
|
|
||
|
|
8-K
|
|
001-18298
|
|
10.25
|
|
|
February 6, 2012
|
|
|
||
|
|
10-K
|
|
001-18298
|
|
10.42
|
|
|
February 13, 2017
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Joseph P. Lacher, Jr. (President and Chief Executive Officer)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
John M. Boschelli (Senior Vice President and Chief Investment Officer)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charles T. Brooks (Senior Vice President, Operations & Systems)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C. Thomas Evans, Jr. (Senior Vice President, Secretary & General Counsel)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark A. Green (Senior Vice President and President, Life & Health Division)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kimberly A. Holmes (Senior Vice President, Chief Actuary and Strategic Analytics Officer)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
James J. McKinney (Senior Vice President and Chief Financial Officer)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Christine F. Mullins (Senior Vice President, Chief Human Resources Officer)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Richard Roeske (Vice President and Chief Accounting Officer)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
|||||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
File Number
|
|
Exhibit
|
|
Filing Date
|
|
Filed or Furnished Herewith
|
|
|
|
Duane A. Sanders (Senior Vice President and President, Property & Casualty Division)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Each of the foregoing agreements is identical except that the multipliers for benefits related to bonus, severance, life insurance and health insurance are 150%, 3 years, 3 years and 36 months, respectively, for Mr. Lacher and 110%, 2 years, 2 years and 24 months, respectively, for the other officers.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
|||
|
|
|
|
|
|
|
|
|
|
X
|
|||
|
|
|
|
|
|
|
|
|
|
X
|
|||
|
|
|
|
|
|
|
|
|
|
X
|
|||
|
|
|
|
|
|
|
|
|
|
X
|
|||
|
|
|
|
|
|
|
|
|
|
X
|
|||
|
|
|
|
|
|
|
|
|
|
X
|
|||
101.1
|
|
XBRL Instance
|
|
|
|
|
|
|
|
|
|
X
|
|
101.2
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
|
|
|
|
X
|
|
101.3
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
|
101.4
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
|
101.5
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
|
101.6
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
KEMPER CORPORATION
(Registrant)
|
||
|
|
|
By:
|
|
/S/ JOSEPH P. LACHER, JR.
|
|
|
Joseph P. Lacher, Jr.
|
|
|
President, Chief Executive Officer and Director
|
|
|
|
Signature
|
|
Title
|
/S/ ROBERT J. JOYCE
|
|
Chairman of the Board and Director
|
Robert J. Joyce
|
|
|
|
|
|
/S/ JOSEPH P. LACHER, JR.
|
|
President, Chief Executive Officer and Director (principal executive officer)
|
Joseph P. Lacher, Jr.
|
|
|
|
|
|
/S/ JAMES J. MCKINNEY
|
|
Senior Vice President and Chief Financial Officer (principal financial officer)
|
James J. McKinney
|
|
|
|
|
|
/S/ RICHARD ROESKE
|
|
Vice President and Chief Accounting Officer (principal accounting officer)
|
Richard Roeske
|
|
|
|
|
|
/S/ TERESA A. CANIDA
|
|
Director
|
Teresa A. Canida
|
|
|
|
|
|
/S/ GEORGE N. COCHRAN
|
|
Director
|
George N. Cochran
|
|
|
|
|
|
/S/ KATHLEEN M. CRONIN
|
|
Director
|
Kathleen M. Cronin
|
|
|
|
|
|
/S/ DOUGLAS G. GEOGA
|
|
Director
|
Douglas G. Geoga
|
|
|
|
|
|
/S/ LACY M. JOHNSON
|
|
Director
|
Lacy M. Johnson
|
|
|
|
|
|
/S/ CHRISTOPHER B. SAROFIM
|
|
Director
|
Christopher B. Sarofim
|
|
|
|
|
|
/S/ DAVID P. STORCH
|
|
Director
|
David P. Storch
|
|
|
|
|
|
/S/ SUSAN D. WHITING
|
|
Director
|
Susan D. Whiting
|
|
|
|
|
Amortized
Cost
|
|
Fair Value
|
|
Amount
Carried in
Balance Sheet
|
||||||
Fixed Maturities:
|
|
|
|
|
|
|
||||||
Bonds and Notes:
|
|
|
|
|
|
|
||||||
United States Government and Government Agencies and Authorities
|
|
$
|
865.9
|
|
|
$
|
865.7
|
|
|
$
|
865.7
|
|
States and Political Subdivisions
|
|
1,553.7
|
|
|
1,619.1
|
|
|
1,619.1
|
|
|||
Foreign Governments
|
|
6.5
|
|
|
5.9
|
|
|
5.9
|
|
|||
Corporate Securities:
|
|
|
|
|
|
|
||||||
Other Bonds and Notes
|
|
3,307.8
|
|
|
3,393.8
|
|
|
3,393.8
|
|
|||
Collateralized Loan Obligations
|
|
535.7
|
|
|
524.0
|
|
|
524.0
|
|
|||
Other Mortgage- and Asset-backed
|
|
14.9
|
|
|
15.7
|
|
|
15.7
|
|
|||
Total Investments in Fixed Maturities
|
|
6,284.5
|
|
|
6,424.2
|
|
|
6,424.2
|
|
|||
Equity Securities at Fair Value:
|
|
|
|
|
|
|
||||||
Preferred Stocks
|
|
54.2
|
|
|
54.2
|
|
|
54.2
|
|
|||
Common Stocks
|
|
10.9
|
|
|
10.9
|
|
|
10.9
|
|
|||
Other Equity Interests
|
|
619.3
|
|
|
619.3
|
|
|
619.3
|
|
|||
Total Investments in Equity Securities
|
|
684.4
|
|
|
684.4
|
|
|
684.4
|
|
|||
Equity Securities at Modified Cost
|
|
41.5
|
|
|
XXX.X
|
|
|
41.5
|
|
|||
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings
|
|
187.0
|
|
|
XXX.X
|
|
|
187.0
|
|
|||
Convertible Securities at Fair Value
|
|
31.5
|
|
|
31.5
|
|
|
31.5
|
|
|||
Loans, Real Estate and Other Investments
|
|
414.8
|
|
|
XXX.X
|
|
|
414.8
|
|
|||
Short-term Investments
|
|
286.1
|
|
|
XXX.X
|
|
|
286.1
|
|
|||
Total Investments
|
|
$
|
7,929.8
|
|
|
|
|
$
|
8,069.5
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
ASSETS
|
|
|
|
|
||||
Investments in Subsidiaries
|
|
$
|
3,736.0
|
|
|
$
|
2,646.0
|
|
Fixed Maturities at Fair Value (Amortized Cost: 2018 – $12.6; 2017 – $0.3)
|
|
12.6
|
|
|
0.3
|
|
||
Equity Securities at Fair Value
|
|
20.4
|
|
|
6.7
|
|
||
Fair Value Option Investments
|
|
—
|
|
|
77.5
|
|
||
Short-term Investments
|
|
64.6
|
|
|
104.4
|
|
||
Cash
|
|
2.9
|
|
|
8.4
|
|
||
Other Receivables
|
|
5.7
|
|
|
3.8
|
|
||
Other Assets
|
|
14.4
|
|
|
5.8
|
|
||
Total Assets
|
|
$
|
3,856.6
|
|
|
$
|
2,852.9
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
||||
Term Loan due June 29, 2020 (Fair Value: 2018 – $35.0; 2017 – $0.0)
|
|
34.9
|
|
|
—
|
|
||
Senior Notes Payable, 4.35% due 2025 (Fair Value: 2018 – $444.2; 2017 – $458.1)
|
|
448.4
|
|
|
448.1
|
|
||
Subordinated Debentures due 2054 (Fair Value: 2018 – $151.1; 2017 – $156.5)
|
|
144.2
|
|
|
144.2
|
|
||
Current Income Tax Liability
|
|
40.5
|
|
|
14.0
|
|
||
Deferred Income Tax Liability
|
|
20.2
|
|
|
16.9
|
|
||
Liabilities for Benefit Plans
|
|
98.2
|
|
|
104.9
|
|
||
Accrued Expenses and Other Liabilities
|
|
20.1
|
|
|
9.2
|
|
||
Total Liabilities
|
|
806.5
|
|
|
737.3
|
|
||
Shareholders’ Equity:
|
|
|
|
|
||||
Common Stock
|
|
6.5
|
|
|
5.1
|
|
||
Additional Paid-in Capital
|
|
1,666.3
|
|
|
673.1
|
|
||
Retained Earnings
|
|
1,355.5
|
|
|
1,243.0
|
|
||
Accumulated Other Comprehensive Income
|
|
21.8
|
|
|
194.4
|
|
||
Total Shareholders’ Equity
|
|
3,050.1
|
|
|
2,115.6
|
|
||
Total Liabilities and Shareholders’ Equity
|
|
$
|
3,856.6
|
|
|
$
|
2,852.9
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net Investment Income
|
|
$
|
2.5
|
|
|
$
|
3.0
|
|
|
$
|
2.0
|
|
Income from Change in Fair Value of Equity Securities
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|||
Net Realized Gains (Losses) on Sales of Investments
|
|
(0.7
|
)
|
|
0.6
|
|
|
0.1
|
|
|||
Total Revenues
|
|
3.2
|
|
|
3.6
|
|
|
2.1
|
|
|||
Interest Expense
|
|
37.6
|
|
|
36.6
|
|
|
45.2
|
|
|||
Other Operating (Benefits) Expenses
|
|
26.3
|
|
|
(5.1
|
)
|
|
(6.1
|
)
|
|||
Total Operating Expenses
|
|
63.9
|
|
|
31.5
|
|
|
39.1
|
|
|||
Loss before Income Taxes and Equity in Net Income of Subsidiaries
|
|
(60.7
|
)
|
|
(27.9
|
)
|
|
(37.0
|
)
|
|||
Income Tax Benefit
|
|
12.2
|
|
|
21.2
|
|
|
13.4
|
|
|||
Loss before Equity in Net Income of Subsidiaries
|
|
(48.5
|
)
|
|
(6.7
|
)
|
|
(23.6
|
)
|
|||
Equity in Net Income of Subsidiaries
|
|
238.6
|
|
|
127.6
|
|
|
40.4
|
|
|||
Net Income
|
|
$
|
190.1
|
|
|
$
|
120.9
|
|
|
$
|
16.8
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net Income
|
|
$
|
190.1
|
|
|
$
|
120.9
|
|
|
$
|
16.8
|
|
Other Comprehensive Income (Loss):
|
|
|
|
|
|
|
||||||
Unrealized Holding Gains (Losses) Arising During the Year:
|
|
|
|
|
|
|
||||||
Securities Held by Subsidiaries
|
|
(214.1
|
)
|
|
119.5
|
|
|
(2.6
|
)
|
|||
Securities Held by Parent
|
|
(0.1
|
)
|
|
(0.4
|
)
|
|
0.2
|
|
|||
Reclassification Adjustment for Amounts Included in Net Income:
|
|
|
|
|
|
|
||||||
Securities Held by Subsidiaries
|
|
(21.9
|
)
|
|
(35.3
|
)
|
|
0.2
|
|
|||
Securities Held by Parent
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Unrealized Holding Gains (Losses)
|
|
(236.1
|
)
|
|
83.8
|
|
|
(2.2
|
)
|
|||
Unrecognized Postretirement Benefit Costs Arising During the Year
|
|
(8.0
|
)
|
|
3.9
|
|
|
14.2
|
|
|||
Reclassification Adjustments for Amounts Included in Net Income:
|
|
|
|
|
|
|
||||||
Curtailment Cost Recognized
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|||
Amortization of Unrecognized Postretirement Benefit Costs
|
|
1.1
|
|
|
(0.6
|
)
|
|
5.3
|
|
|||
Total Reclassification Adjustments for Amounts Included in Net Income
|
|
1.1
|
|
|
(0.6
|
)
|
|
6.3
|
|
|||
Net Unrecognized Postretirement Benefit Costs
|
|
(6.9
|
)
|
|
3.3
|
|
|
20.5
|
|
|||
Foreign Currency Translation Adjustments on Investments Held by Subsidiaries
|
|
0.3
|
|
|
1.7
|
|
|
(0.3
|
)
|
|||
Gain on Cash Flow Hedge
|
|
1.2
|
|
|
(6.7
|
)
|
|
1.6
|
|
|||
Other Comprehensive Income (Loss) before Income Taxes
|
|
(241.5
|
)
|
|
82.1
|
|
|
19.6
|
|
|||
Income Tax Benefit (Expense):
|
|
|
|
|
|
|
||||||
Unrealized Holding Gains and Losses Arising During the Year:
|
|
|
|
|
|
|
||||||
Securities Held by Subsidiaries
|
|
45.0
|
|
|
(38.3
|
)
|
|
1.1
|
|
|||
Securities Held by Parent
|
|
—
|
|
|
0.1
|
|
|
(0.1
|
)
|
|||
Reclassification Adjustment for Amounts Included in Net Income:
|
|
|
|
|
|
|
||||||
Securities Held by Subsidiaries
|
|
4.6
|
|
|
12.3
|
|
|
(0.1
|
)
|
|||
Unrealized Holding Gains and Losses
|
|
49.6
|
|
|
(25.9
|
)
|
|
0.9
|
|
|||
Unrecognized Postretirement Benefit Costs Arising During the Year
|
|
1.7
|
|
|
(0.8
|
)
|
|
(5.0
|
)
|
|||
Reclassification Adjustments for Amounts Included in Net Income:
|
|
|
|
|
|
|
||||||
Curtailment Cost Recognized
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|||
Amortization of Unrecognized Postretirement Benefit Costs
|
|
(0.2
|
)
|
|
0.2
|
|
|
(1.9
|
)
|
|||
Total Reclassification Adjustments for Amounts Included in Net Income
|
|
(0.2
|
)
|
|
0.2
|
|
|
(2.3
|
)
|
|||
Net Unrecognized Postretirement Benefit Costs
|
|
1.5
|
|
|
(0.6
|
)
|
|
(7.3
|
)
|
|||
Foreign Currency Translation Adjustments on Investments Held by Subsidiaries
|
|
(0.1
|
)
|
|
(0.6
|
)
|
|
0.1
|
|
|||
Gain on Cash Flow Hedge
|
|
(0.3
|
)
|
|
2.4
|
|
|
(0.6
|
)
|
|||
Income Tax Benefit (Expense)
|
|
50.7
|
|
|
(24.7
|
)
|
|
(6.9
|
)
|
|||
Other Comprehensive Income (Loss)
|
|
(190.8
|
)
|
|
57.4
|
|
|
12.7
|
|
|||
Total Comprehensive Income (Loss)
|
|
$
|
(0.7
|
)
|
|
$
|
178.3
|
|
|
$
|
29.5
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Operating Activities:
|
|
|
|
|
|
|
||||||
Net Income
|
|
$
|
190.1
|
|
|
$
|
120.9
|
|
|
$
|
16.8
|
|
Adjustment Required to Reconcile Net Income to Net Cash Provided by Operations:
|
|
|
|
|
|
|
||||||
Equity in Net Income of Subsidiaries
|
|
(238.6
|
)
|
|
(127.6
|
)
|
|
(40.4
|
)
|
|||
Cash Dividends from Subsidiaries
|
|
130.4
|
|
|
108.1
|
|
|
77.7
|
|
|||
Cash Received for Benefit Plan from Subsidiary
|
|
—
|
|
|
—
|
|
|
1.4
|
|
|||
Cash Contribution to Defined Benefit Plan
|
|
(5.0
|
)
|
|
—
|
|
|
(9.0
|
)
|
|||
Increase in Value of Equity Securities at Fair Value
|
|
(1.4
|
)
|
|
—
|
|
|
—
|
|
|||
Net Realized (Gains) Losses on Sales of Investments
|
|
0.7
|
|
|
(0.6
|
)
|
|
(0.1
|
)
|
|||
Other, Net
|
|
29.6
|
|
|
0.7
|
|
|
(9.3
|
)
|
|||
Net Cash Provided by Operating Activities
|
|
105.8
|
|
|
101.5
|
|
|
37.1
|
|
|||
Investing Activities:
|
|
|
|
|
|
|
||||||
Capital Contributed to Subsidiaries
|
|
(20.0
|
)
|
|
—
|
|
|
(52.9
|
)
|
|||
Capital Distribution from Subsidiary
|
|
176.0
|
|
|
—
|
|
|
—
|
|
|||
Sales, Paydowns and Maturities of Fixed Maturities
|
|
(0.2
|
)
|
|
45.7
|
|
|
73.5
|
|
|||
Purchases of Fixed Maturities
|
|
—
|
|
|
—
|
|
|
(77.9
|
)
|
|||
Purchases of Equity Securities
|
|
(2.3
|
)
|
|
—
|
|
|
—
|
|
|||
Sales of Equity Securities
|
|
67.5
|
|
|
—
|
|
|
3.5
|
|
|||
Sales of Fair Value Option Investments
|
|
—
|
|
|
42.2
|
|
|
72.2
|
|
|||
Purchases of Fair Value Option Investments
|
|
—
|
|
|
(7.0
|
)
|
|
(21.0
|
)
|
|||
Acquisition of Business
|
|
(564.6
|
)
|
|
—
|
|
|
—
|
|
|||
Change in Short-term Investments
|
|
253.4
|
|
|
15.6
|
|
|
14.8
|
|
|||
Net Cash Provided (Used) by Investing Activities
|
|
(90.2
|
)
|
|
96.5
|
|
|
12.2
|
|
|||
Financing Activities:
|
|
|
|
|
|
|
||||||
Net Proceeds from Issuance of Debt
|
|
249.4
|
|
|
200.2
|
|
|
—
|
|
|||
Repayments of Debt
|
|
(215.0
|
)
|
|
(360.0
|
)
|
|
—
|
|
|||
Cash Dividends Paid
|
|
(56.4
|
)
|
|
(49.5
|
)
|
|
(49.2
|
)
|
|||
Common Stock Repurchases
|
|
—
|
|
|
—
|
|
|
(3.8
|
)
|
|||
Cash Exercise of Stock Options
|
|
0.9
|
|
|
4.0
|
|
|
3.5
|
|
|||
Net Cash Used by Financing Activities
|
|
(21.1
|
)
|
|
(205.3
|
)
|
|
(49.5
|
)
|
|||
Decrease in Cash
|
|
(5.5
|
)
|
|
(7.3
|
)
|
|
(0.2
|
)
|
|||
Cash, Beginning of Year
|
|
8.4
|
|
|
15.7
|
|
|
15.9
|
|
|||
Cash, End of Year
|
|
$
|
2.9
|
|
|
$
|
8.4
|
|
|
$
|
15.7
|
|
|
|
Year Ended December 31,
|
|
At December 31
|
||||||||||||||||||||||||||||||||||||
Earned Premiums
|
|
Premiums
Written
|
|
Other
Income
|
|
Net
Investment
Income
|
|
Insurance
Claims
and
Policy-
holders’
Benefits
|
|
Amortization
Of Deferred
Policy
Acquisition
Costs
|
|
Other
Insurance
Expenses
|
|
Deferred
Policy
Acquisition
Costs
|
|
Insurance
Reserves
|
|
Unearned
Premiums
|
||||||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Preferred Property & Casualty Insurance
|
|
730.7
|
|
|
$
|
748.8
|
|
|
$
|
—
|
|
|
$
|
61.8
|
|
|
$
|
538.4
|
|
|
$
|
117.2
|
|
|
$
|
108.3
|
|
|
$
|
58.4
|
|
|
$
|
452.9
|
|
|
$
|
374.3
|
|
|
Specialty Property & Casualty Insurance
|
|
2,027.4
|
|
|
2,067.4
|
|
|
2.4
|
|
|
63.4
|
|
|
1,523.8
|
|
|
202.0
|
|
|
219.7
|
|
|
121.4
|
|
|
1,387.0
|
|
|
1,025.0
|
|
||||||||||
Life & Health Insurance (1)
|
|
626.3
|
|
|
N/A
|
|
|
4.0
|
|
|
210.9
|
|
|
404.2
|
|
|
57.9
|
|
|
263.2
|
|
|
290.2
|
|
|
3,563.1
|
|
|
25.0
|
|
||||||||||
Other
|
|
—
|
|
|
N/A
|
|
|
35.8
|
|
|
4.8
|
|
|
0.1
|
|
|
—
|
|
|
(67.8
|
)
|
|
—
|
|
|
30.6
|
|
|
—
|
|
||||||||||
Total
|
|
$
|
3,384.4
|
|
|
N/A
|
|
|
$
|
42.2
|
|
|
$
|
340.9
|
|
|
$
|
2,466.5
|
|
|
$
|
377.1
|
|
|
$
|
523.4
|
|
|
$
|
470.0
|
|
|
$
|
5,433.6
|
|
|
$
|
1,424.3
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Preferred Property & Casualty Insurance
|
|
$
|
730.3
|
|
|
$
|
726.1
|
|
|
$
|
—
|
|
|
$
|
58.9
|
|
|
$
|
649.5
|
|
|
$
|
114.6
|
|
|
$
|
103.2
|
|
|
$
|
56.0
|
|
|
$
|
461.9
|
|
|
$
|
356.3
|
|
Specialty Property & Casualty Insurance
|
|
1,005.7
|
|
|
1,043.5
|
|
|
1.1
|
|
|
39.2
|
|
|
800.5
|
|
|
150.2
|
|
|
14.8
|
|
|
40.2
|
|
|
514.4
|
|
|
269.3
|
|
||||||||||
Life & Health Insurance (1)
|
|
614.0
|
|
|
N/A
|
|
|
2.6
|
|
|
223.2
|
|
|
387.4
|
|
|
53.5
|
|
|
258.7
|
|
|
269.1
|
|
|
3,525.1
|
|
|
28.3
|
|
||||||||||
Other
|
|
—
|
|
|
N/A
|
|
|
0.3
|
|
|
5.9
|
|
|
—
|
|
|
—
|
|
|
(50.7
|
)
|
|
—
|
|
|
36.4
|
|
|
—
|
|
||||||||||
Total
|
|
$
|
2,350.0
|
|
|
N/A
|
|
|
$
|
4.0
|
|
|
$
|
327.2
|
|
|
$
|
1,837.4
|
|
|
$
|
318.3
|
|
|
$
|
326.0
|
|
|
$
|
365.3
|
|
|
$
|
4,537.8
|
|
|
$
|
653.9
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Preferred Property & Casualty Insurance
|
|
$
|
741.5
|
|
|
$
|
737.3
|
|
|
$
|
—
|
|
|
$
|
48.6
|
|
|
$
|
545.3
|
|
|
$
|
115.3
|
|
|
$
|
113.7
|
|
|
|
|
|
|
|
||||||
Specialty Property & Casualty Insurance
|
|
873.3
|
|
|
883.6
|
|
|
0.5
|
|
|
29.1
|
|
|
773.9
|
|
|
136.8
|
|
|
19.9
|
|
|
|
|
|
|
|
|||||||||||||
Life & Health Insurance (1)
|
|
605.2
|
|
|
N/A
|
|
|
2.8
|
|
|
214.2
|
|
|
461.6
|
|
|
47.2
|
|
|
266.7
|
|
|
|
|
|
|
|
|||||||||||||
Other
|
|
—
|
|
|
N/A
|
|
|
(0.1
|
)
|
|
6.4
|
|
|
—
|
|
|
—
|
|
|
(52.3
|
)
|
|
|
|
|
|
|
|||||||||||||
Total
|
|
$
|
2,220.0
|
|
|
N/A
|
|
|
$
|
3.2
|
|
|
$
|
298.3
|
|
|
$
|
1,780.8
|
|
|
$
|
299.3
|
|
|
$
|
348.0
|
|
|
|
|
|
|
|
(1)
|
The Company’s Life & Health Insurance employee-agents also market certain property and casualty insurance products under common management. Accordingly, the Company includes the results of these property and casualty insurance products in its Life & Health Insurance segment.
|
|
|
Gross
Amount
|
|
Ceded to
Other
Companies
|
|
Assumed
from Other
Companies
|
|
Net
Amount
|
|
Percentage
of Amount
Assumed to
Net
|
|||||||||
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life Insurance in Force
|
|
$
|
19,435.1
|
|
|
$
|
436.4
|
|
|
$
|
172.7
|
|
|
$
|
19,171.4
|
|
|
0.9
|
%
|
Premiums:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life Insurance
|
|
$
|
378.2
|
|
|
$
|
1.2
|
|
|
$
|
1.0
|
|
|
$
|
378.0
|
|
|
0.3
|
%
|
Accident and Health Insurance
|
|
174.3
|
|
|
1.7
|
|
|
5.3
|
|
|
177.9
|
|
|
3.0
|
%
|
||||
Property and Liability Insurance
|
|
2,778.3
|
|
|
28.7
|
|
|
78.9
|
|
|
2,828.5
|
|
|
2.8
|
%
|
||||
Total Premiums
|
|
$
|
3,330.8
|
|
|
$
|
31.6
|
|
|
$
|
85.2
|
|
|
$
|
3,384.4
|
|
|
2.5
|
%
|
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life Insurance in Force
|
|
$
|
19,208.7
|
|
|
$
|
455.2
|
|
|
$
|
184.0
|
|
|
$
|
18,937.5
|
|
|
1.0
|
%
|
Premiums:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life Insurance
|
|
$
|
366.8
|
|
|
$
|
1.4
|
|
|
$
|
1.1
|
|
|
$
|
366.5
|
|
|
0.3
|
%
|
Accident and Health Insurance
|
|
171.0
|
|
|
1.5
|
|
|
5.4
|
|
|
174.9
|
|
|
3.1
|
%
|
||||
Property and Liability Insurance
|
|
1,757.5
|
|
|
15.3
|
|
|
66.4
|
|
|
1,808.6
|
|
|
3.7
|
%
|
||||
Total Premiums
|
|
$
|
2,295.3
|
|
|
$
|
18.2
|
|
|
$
|
72.9
|
|
|
$
|
2,350.0
|
|
|
3.1
|
%
|
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life Insurance in Force
|
|
$
|
20,889.0
|
|
|
$
|
486.9
|
|
|
$
|
195.0
|
|
|
$
|
20,597.1
|
|
|
0.9
|
%
|
Premiums:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life Insurance
|
|
$
|
381.4
|
|
|
$
|
1.4
|
|
|
$
|
1.3
|
|
|
$
|
381.3
|
|
|
0.3
|
%
|
Accident and Health Insurance
|
|
144.9
|
|
|
0.5
|
|
|
5.3
|
|
|
149.7
|
|
|
3.5
|
%
|
||||
Property and Liability Insurance
|
|
1,645.4
|
|
|
17.1
|
|
|
60.7
|
|
|
1,689.0
|
|
|
3.6
|
%
|
||||
Total Premiums
|
|
$
|
2,171.7
|
|
|
$
|
19.0
|
|
|
$
|
67.3
|
|
|
$
|
2,220.0
|
|
|
3.0
|
%
|
|
|
/S/ JOSEPH P. LACHER, JR.
|
|
Joseph P. Lacher, Jr.
|
|
President and Chief Executive Officer
|
|
|
|
/S/ JAMES J. MCKINNEY
|
|
James J. McKinney
|
|
Senior Vice President and Chief Financial Officer
|
|
|
|
|
|
|
|
/S/ JOSEPH P. LACHER, JR.
|
|
Name:
|
|
Joseph P. Lacher, Jr.
|
|
Title:
|
|
President and Chief Executive Officer
|
|
Date:
|
|
February 20, 2019
|
|
|
|
|
|
|
|
/S/ JAMES J. MCKINNEY
|
|
Name:
|
|
James J. McKinney
|
|
Title:
|
|
Senior Vice President and Chief Financial Officer
|
|
Date:
|
|
February 20, 2019
|
|