Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 15, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-33245 | |
Entity Registrant Name | EMPLOYERS HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 04-3850065 | |
Entity Address, Address Line One | 10375 Professional Circle | |
Entity Address, City or Town | Reno, | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89521 | |
City Area Code | 888 | |
Local Phone Number | 682-6671 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | EIG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,291,782 | |
Entity Central Index Key | 0001379041 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Investments: | ||
Fixed maturity securities at fair value (amortized cost $2,307.2 at June 30, 2021 and $2,333.6 at December 31, 2020, net of CECL allowance of $0.1 at June 30, 2021 and $0.7 at December 31, 2020) | $ 2,418.3 | $ 2,479.2 |
Equity securities at fair value (cost $153.9 at June 30, 2021 and $112.4 at December 31, 2020) | 257 | 208.5 |
Equity securities at cost | 6.7 | 6.7 |
Other invested assets (cost $45.8 at June 30, 2021 and $36.8 at December 31, 2020) | 45.8 | 36.2 |
Short-term investments at fair value (amortized cost $0.3 at June 30, 2021 and $26.5 at December 31, 2020) | 0.3 | 26.6 |
Total investments | 2,728.1 | 2,757.2 |
Cash and cash equivalents | 107.6 | 160.4 |
Restricted cash and cash equivalents | 0.2 | 0.2 |
Accrued investment income | 15.5 | 15.3 |
Premiums receivable (less CECL allowance of $11.6 at June 30, 2021 and $10.8 at December 31, 2020) | 251.3 | 232.1 |
Reinsurance recoverable for: | ||
Paid losses | 6.9 | 7.6 |
Unpaid losses (less CECL allowance of $0.6 at June 30, 2021 and $0.4 at December 31, 2020) | 482.9 | 496.6 |
Deferred policy acquisition costs | 45.9 | 43.2 |
Property and equipment, net | 16.6 | 19.1 |
Operating lease right-of-use assets | 15.8 | 17.4 |
Intangible assets, net | 13.6 | 13.6 |
Goodwill | 36.2 | 36.2 |
Contingent commission receivable—LPT Agreement | 13.4 | 13.4 |
Cloud computing arrangements | 49 | 50.2 |
Other assets | 53.7 | 60.1 |
Total assets | 3,836.7 | 3,922.6 |
Liabilities and stockholders’ equity | ||
Unpaid losses and loss adjustment expenses | 2,007.6 | 2,069.4 |
Unearned premiums | 315.7 | 299.1 |
Commissions and premium taxes payable | 39.2 | 43 |
Accounts payable and accrued expenses | 23.9 | 22.9 |
Deferred reinsurance gain—LPT Agreement | 121.3 | 125.4 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | 0 | 20 |
Deferred Tax Liabilities, Tax Deferred Income | 9.7 | 15.5 |
Operating lease liability | 18.4 | 19.9 |
Non-cancellable obligations | 23.8 | 24.1 |
Other liabilities | 73.5 | 70.5 |
Total liabilities | 2,633.1 | 2,709.8 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 150,000,000 shares authorized; 57,689,672 and 57,413,806 shares issued and 28,291,782 and 28,564,798 shares outstanding at June 30, 2021 and December 31, 2020, respectively | 0.6 | 0.6 |
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued | 0 | 0 |
Additional paid-in capital | 407.4 | 404.3 |
Retained earnings | 1,283 | 1,247.9 |
Accumulated other comprehensive income, net of tax | 87.8 | 115.1 |
Treasury stock, at cost (29,397,890 shares at June 30, 2021 and 28,849,008 shares at December 31, 2020) | (575.2) | (555.1) |
Total stockholders’ equity | 1,203.6 | 1,212.8 |
Total liabilities and stockholders’ equity | $ 3,836.7 | $ 3,922.6 |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Available for sale: | ||
Debt securities, available-for-sale, amortized cost | $ 2,307.2 | $ 2,333.6 |
Equity Securities, FV-NI, Cost | 153.9 | 112.4 |
Other Investments and Securities, at Cost | 45.8 | 36.8 |
Available for sale, short-term investments, at amortized cost | 0.3 | 26.5 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0.1 | 0.7 |
Accounts Receivable, Allowance for Credit Loss, Current | 11.6 | 10.8 |
Reinsurance recoverables on unpaid losses, allowance | $ 0.6 | $ 0.4 |
Stockholders' equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 57,689,672 | 57,413,806 |
Common stock, shares outstanding (in shares) | 28,291,782 | 28,564,798 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Treasury stock, at cost (in shares) | 29,397,890 | 28,849,008 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues | ||||
Net premiums earned | $ 137 | $ 151.5 | $ 270.9 | $ 319.4 |
Net investment income | 18.2 | 19.9 | 36.6 | 39.8 |
Net realized and unrealized (losses) gains on investments | 16 | 39.7 | 26.9 | (21.4) |
Other income | 0.2 | 0.3 | 0.6 | 0.6 |
Total revenues | 171.4 | 211.4 | 335 | 338.4 |
Expenses | ||||
Losses and loss adjustment expenses | 83.7 | 73.1 | 153.3 | 177.4 |
Commission expense | 18 | 19.2 | 34.8 | 40.5 |
Underwriting and general and administrative expenses | 37 | 44.8 | 83.6 | 91.5 |
Interest and financing expenses | 0.2 | 0 | 0.3 | 0 |
Other Expenses | 0.1 | 0 | 3 | 0 |
Total expenses | 139 | 137.1 | 275 | 309.4 |
Net income before income taxes | 32.4 | 74.3 | 60 | 29 |
Income tax expense | 6 | 14.7 | 10.5 | 4.3 |
Net income | 26.4 | 59.6 | 49.5 | 24.7 |
Comprehensive income | ||||
Unrealized AFS investment gains (losses) arising during the period (net of tax (expense) benefit of $(2.7) and $(18.4) for the three months ended June 30, 2021 and 2020, respectively, and $6.7 and $(10.7) for the six months ended June 30, 2021 and 2020, respectively) | 10.4 | 69.3 | (25.1) | 40.2 |
Reclassification adjustment for realized AFS investment gains in net income (net of tax expense of $0.4 and $1.6 for the three months ended June 30, 2021 and 2020, respectively and $0.6 and $0.1 for the six months ended June 30, 2021 and 2020, respectively) | (1.6) | (5.9) | (2.2) | (0.5) |
Other comprehensive income (loss), net of tax | 8.8 | 63.4 | (27.3) | 39.7 |
Total comprehensive income | 35.2 | 123 | 22.2 | 64.4 |
Net realized and unrealized gains (losses) on investments | ||||
Net realized and unrealized gains (losses) on investments before impairments | 16 | 39.7 | 26.9 | (21.4) |
Net realized and unrealized (losses) gains on investments | $ 16 | $ 39.7 | $ 26.9 | $ (21.4) |
Earnings per common share (Note 13): | ||||
Basic | $ 0.93 | $ 1.98 | $ 1.74 | $ 0.80 |
Diluted | 0.92 | 1.97 | 1.71 | 0.80 |
Cash dividends declared per common share, RSUs and PSUs | $ 0.25 | $ 0.25 | $ 0.50 | $ 0.50 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement Parenthetical [Abstract] | ||||
Other comprehensive income (loss), unrealized holding gain (loss) on securities arising during period, tax | $ (2.7) | $ (18.4) | $ 6.7 | $ (10.7) |
Other comprehensive income (loss), reclassification adjustment for sale of securities included in net income, tax | $ 0.4 | $ 1.6 | $ 0.6 | $ 0.1 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders Equity Statement - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income, Net | Treasury Stock [Member] |
Stockholders' equity, shares at Dec. 31, 2019 | 57,184,370 | |||||
Stockholders' equity, value at Dec. 31, 2019 | $ 1,165.8 | $ 0.6 | $ 396.4 | $ 1,158.8 | $ 65.3 | $ (455.3) |
Stock-based obligations, shares | 0 | |||||
Stock-based obligations, value | $ 4.6 | $ 0 | 4.6 | 0 | 0 | 0 |
Stock-options exercised, shares | 38,500 | 38,500 | ||||
Stock-options exercised, value | $ 0.9 | $ 0 | 0.9 | 0 | 0 | 0 |
Vesting of RSUs and PSUs, net of shares withheld to satisfy minimum tax withholding, shares | 165,645 | |||||
Vesting of RSUs and PSUs, net of shares withheld to satisfy minimum tax withholding, value | (2.7) | $ 0 | (2.7) | 0 | 0 | 0 |
Acquisition of common stock, shares | 0 | |||||
Acquisition of common stock, value | (73.3) | $ 0 | 0 | 0 | (73.3) | |
Dividends declared, shares | 0 | |||||
Dividends declared, value | (15.8) | $ 0 | 0 | (15.8) | 0 | 0 |
Net income | 24.7 | 0 | 0 | 24.7 | 0 | 0 |
Change in net unrealized gains in investments, net of tax | 39.7 | $ 0 | 0 | 0 | 39.7 | 0 |
Stockholders' equity, shares at Jun. 30, 2020 | 57,388,515 | |||||
Stockholders' equity, value at Jun. 30, 2020 | 1,144 | $ 0.6 | 399.2 | 1,167.8 | 105 | (528.6) |
Stockholders' equity, shares at Dec. 31, 2019 | 57,184,370 | |||||
Stockholders' equity, value at Dec. 31, 2019 | $ 1,165.8 | $ 0.6 | 396.4 | 1,158.8 | 65.3 | (455.3) |
Stock-options exercised, shares | 40,800 | |||||
Stockholders' equity, shares at Dec. 31, 2020 | 57,413,806 | 57,413,806 | ||||
Stockholders' equity, value at Dec. 31, 2020 | $ 1,212.8 | $ 0.6 | 404.3 | 1,247.9 | 115.1 | (555.1) |
Stockholders' equity, shares at Mar. 31, 2020 | 57,375,585 | |||||
Stockholders' equity, value at Mar. 31, 2020 | 1,057.3 | $ 0.6 | 397 | 1,115.9 | 41.6 | (497.8) |
Stock-based obligations, shares | 0 | |||||
Stock-based obligations, value | 2.2 | $ 0 | 2.2 | 0 | 0 | 0 |
Stock-options exercised, shares | 2,000 | |||||
Stock-options exercised, value | 0 | $ 0 | 0 | 0 | 0 | 0 |
Vesting of RSUs and PSUs, net of shares withheld to satisfy minimum tax withholding, shares | 10,930 | |||||
Vesting of RSUs and PSUs, net of shares withheld to satisfy minimum tax withholding, value | 0 | $ 0 | 0 | 0 | 0 | 0 |
Acquisition of common stock, shares | 0 | |||||
Acquisition of common stock, value | (30.8) | $ 0 | 0 | 0 | (30.8) | |
Dividends declared, shares | 0 | |||||
Dividends declared, value | (7.8) | $ 0 | 0 | (7.8) | 0 | 0 |
Net income | 59.6 | 0 | 0 | 59.6 | 0 | 0 |
Change in net unrealized gains in investments, net of tax | 63.4 | $ 0 | 0 | 0 | 63.4 | 0 |
Stockholders' equity, shares at Jun. 30, 2020 | 57,388,515 | |||||
Stockholders' equity, value at Jun. 30, 2020 | $ 1,144 | $ 0.6 | 399.2 | 1,167.8 | 105 | (528.6) |
Stockholders' equity, shares at Dec. 31, 2020 | 57,413,806 | 57,413,806 | ||||
Stockholders' equity, value at Dec. 31, 2020 | $ 1,212.8 | $ 0.6 | 404.3 | 1,247.9 | 115.1 | (555.1) |
Stock-based obligations, shares | 0 | |||||
Stock-based obligations, value | $ 5.7 | $ 0 | 5.7 | 0 | 0 | 0 |
Stock-options exercised, shares | 48,051 | 48,051 | ||||
Stock-options exercised, value | $ 1.1 | $ 0 | 1.1 | 0 | 0 | 0 |
Vesting of RSUs and PSUs, net of shares withheld to satisfy minimum tax withholding, shares | 227,815 | |||||
Vesting of RSUs and PSUs, net of shares withheld to satisfy minimum tax withholding, value | (3.7) | $ 0 | (3.7) | 0 | 0 | 0 |
Acquisition of common stock, shares | 0 | |||||
Acquisition of common stock, value | (20.1) | $ 0 | 0 | 0 | (20.1) | |
Dividends declared, shares | 0 | |||||
Dividends declared, value | (14.3) | $ 0 | 0 | (14.3) | 0 | 0 |
Net income | 49.5 | 0 | 0 | 49.5 | 0 | 0 |
Change in net unrealized gains in investments, net of tax | $ (27.3) | $ 0 | 0 | 0 | (27.3) | 0 |
Stockholders' equity, shares at Jun. 30, 2021 | 57,689,672 | 57,689,672 | ||||
Stockholders' equity, value at Jun. 30, 2021 | $ 1,203.6 | $ 0.6 | 407.4 | 1,283 | 87.8 | (575.2) |
Stockholders' equity, shares at Mar. 31, 2021 | 57,625,808 | |||||
Stockholders' equity, value at Mar. 31, 2021 | 1,186.6 | $ 0.6 | 407.9 | 1,263.8 | 79 | (564.7) |
Stock-based obligations, shares | 0 | |||||
Stock-based obligations, value | 0.5 | $ 0 | 0.5 | 0 | 0 | 0 |
Stock-options exercised, shares | 6,200 | |||||
Stock-options exercised, value | 0.2 | $ 0 | 0.2 | 0 | 0 | 0 |
Vesting of RSUs and PSUs, net of shares withheld to satisfy minimum tax withholding, shares | 57,664 | |||||
Vesting of RSUs and PSUs, net of shares withheld to satisfy minimum tax withholding, value | (1.2) | $ 0 | (1.2) | 0 | 0 | 0 |
Acquisition of common stock, shares | 0 | |||||
Acquisition of common stock, value | (10.4) | $ 0 | 0 | 0 | 0 | (10.4) |
Dividends declared, shares | 0 | |||||
Dividends declared, value | (7.1) | $ 0 | 0 | (7.1) | 0 | 0 |
Net income | 26.4 | 0 | 0 | 26.4 | 0 | 0 |
Change in net unrealized gains in investments, net of tax | $ 8.8 | $ 0 | 0 | 0 | 8.8 | 0 |
Stockholders' equity, shares at Jun. 30, 2021 | 57,689,672 | 57,689,672 | ||||
Stockholders' equity, value at Jun. 30, 2021 | $ 1,203.6 | $ 0.6 | $ 407.4 | $ 1,283 | $ 87.8 | $ (575.2) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders Equity (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Change in net unrealized (losses) gains on investments, net of tax | $ (2.3) | $ (16.8) | $ 7.3 | $ (10.6) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Operating activities | ||||||
Net income | $ 26.4 | $ 59.6 | $ 49.5 | $ 24.7 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 3.8 | 4.4 | ||||
Stock-based compensation | 5.7 | 4.6 | ||||
Amortization of cloud computing arrangements | 3.1 | 6.2 | 3.4 | $ 9 | ||
Amortization of premium on investments, net | 4.1 | 5.3 | ||||
Allowance for expected credit losses | 1 | 3.9 | ||||
Deferred income tax expense | 1.5 | (10.6) | ||||
Net realized and unrealized (gains) losses on investments | (26.9) | 21.4 | ||||
Change in operating assets and liabilities: | ||||||
Premiums receivable | (20) | (2) | ||||
Reinsurance recoverable on paid and unpaid losses | 14.2 | 8.5 | ||||
Cloud computing arrangements | (5) | (8.7) | ||||
Operating lease right-of-use-assets | 1.6 | (4.5) | ||||
Current federal income taxes | (7.8) | 14.5 | ||||
Unpaid losses and loss adjustment expenses | 61.8 | 22.1 | ||||
Unearned premiums | 16.6 | 4.4 | ||||
Accounts payable, accrued expenses and other liabilities | 2 | (5.5) | ||||
Deferred reinsurance gain—LPT Agreement | (4.1) | (4.9) | ||||
Operating lease liabilities | (1.5) | 4.4 | ||||
Non-cancellable obligations | (0.3) | (3.6) | ||||
Other | (4.1) | (9.5) | ||||
Net cash (used in) provided by operating activities | (25.3) | 28.1 | ||||
Investing activities | ||||||
Purchases of fixed maturity securities | (338.3) | (324.9) | ||||
Purchases of equity securities | (109.7) | (150.1) | ||||
Purchases of short-term investments | (2) | (118.5) | ||||
Purchases of other invested assets | (9) | (4.9) | ||||
Proceeds from sale of fixed maturity securities | 84.2 | 29.6 | 158.2 | 249.8 | ||
Proceeds from sale of equity securities | 84.9 | 169.3 | ||||
Proceeds from maturities and redemptions of fixed maturity securities | 205.3 | 154.6 | ||||
Proceeds from maturities of short-term investments | 28.3 | 75.8 | ||||
Net change in unsettled investment purchases and sales | 13.8 | (42.9) | ||||
Capital expenditures and other | (1.4) | (3.8) | ||||
Net cash provided by investing activities | 30.1 | 4.4 | ||||
Financing activities | ||||||
Acquisition of common stock | (20.5) | (72.9) | ||||
Cash transactions related to stock-based compensation | (2.7) | (1.8) | ||||
Dividends paid to stockholders | (14.3) | (15.8) | ||||
Proceeds from FHLBank Borrowings, Financing Activities | 0 | 35 | ||||
Repayments of FHLBank Advance, Investing Activities | 15 | $ 5 | 20 | 0 | 15 | |
Proceeds from Lines of Credit | 15 | 27 | 0 | |||
Repayments on line of credit | 15 | 27 | 0 | |||
Payments on capital leases | 0.1 | 0.1 | ||||
Net cash used in financing activities | (57.6) | (55.6) | ||||
Net decrease in cash, cash equivalents and restricted cash | (52.8) | (23.1) | ||||
Cash, cash equivalents, restricted cash and restricted cash equivalents at the beginning of the period | $ 160.6 | 160.6 | 155.2 | 155.2 | ||
Cash, cash equivalents, restricted cash and restricted cash equivalents at the end of the period | 107.8 | 132.1 | 107.8 | 132.1 | 160.6 | |
Cash and cash equivalents | 107.6 | 107.6 | 160.4 | |||
Restricted cash and cash equivalents | 0.2 | 0.2 | 0.2 | |||
Total cash, cash equivalents, restricted cash | $ 107.8 | $ 132.1 | $ 107.8 | $ 132.1 | $ 160.6 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation | Basis of Presentation and Summary of Operations Employers Holdings, Inc. (EHI) is a Nevada holding company. Through its wholly owned insurance subsidiaries, Employers Insurance Company of Nevada (EICN), Employers Compensation Insurance Company (ECIC), Employers Preferred Insurance Company (EPIC), Employers Assurance Company (EAC), and Cerity Insurance Company (CIC), EHI is engaged in the commercial property and casualty insurance industry, specializing in workers’ compensation products and services. Unless otherwise indicated, all references to the “Company” refer to EHI, together with its subsidiaries. In 1999, the Nevada State Industrial Insurance System (the Fund) entered into a retroactive 100% quota share reinsurance agreement (the LPT Agreement) through a loss portfolio transfer transaction with third party reinsurers. The LPT Agreement commenced on June 30, 1999 and will remain in effect until: (i) all claims under the covered policies have closed; (ii) the LPT Agreement is commuted or terminated, upon the mutual agreement of the parties; or (iii) the reinsurers’ aggregate maximum limit of liability is exhausted, whichever occurs first. The LPT Agreement does not provide for any additional termination terms. On January 1, 2000, EICN assumed all of the assets, liabilities and operations of the Fund, including the Fund’s rights and obligations associated with the LPT Agreement (See Note 9). The Company accounts for the LPT Agreement as retroactive reinsurance. Upon entry into the LPT Agreement, an initial deferred reinsurance gain (the Deferred Gain) was recorded as a liability on the Company’s Consolidated Balance Sheets. The Company is entitled to receive a contingent profit commission under the LPT Agreement. The contingent profit commission is estimated based on both actual paid results to date and projections of expected paid losses under the LPT Agreement and is recorded as an asset on the Company’s Consolidated Balance Sheets. The accompanying consolidated financial statements have been prepared in accordance with United States (U.S.) generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934, as amended. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) necessary for a fair presentation of the Company’s consolidated financial position and results of operations for the periods presented have been included. The results of operations for an interim period are not necessarily indicative of the results for an entire year. These financial statements have been prepared consistent with the accounting policies described in the Company’s Form 10-K for the year ended December 31, 2020 (Annual Report). The Company operates through two reportable segments: Employers and Cerity . Each of the segments represents a separate and distinct underwriting platform through which the Company conducts insurance business. This presentation allows the reader, as well as the Company's chief operating decision makers, to objectively analyze the business originated through each of the Company's underwriting platforms. Detailed financial information about the Company's operating segments is presented in Note 14. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. As a result, actual results could differ from these estimates. The most significant areas that require management judgment are the estimate of unpaid losses and loss adjustment expenses (LAE), evaluation of reinsurance recoverables, recognition of premium revenue, recoverability of deferred income taxes, and valuation of investments. |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2021 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | New Accounting Standards Recently Issued Accounting Standards In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848) . This update provides optional transition guidance to ease the potential accounting burden associated with transitioning away from the London Interbank Offered Rate (LIBOR), with optional expedients and exceptions related to the application of US GAAP to contracts, hedging relationships and other transactions affected by reference rate reform. Companies can apply this ASU immediately, but early adoption is only available through December 31, 2022 when this ASU becomes effective. The Company is evaluating the impact of LIBOR on its existing contracts and investments, but does not expect that this update will have a material impact on its consolidated financial condition or results of operations. Recently Adopted Accounting Standards In October 2020, the FASB issued ASU 2020-10, Codification Improvements . This update ensures all disclosure guidance that requires or provides an option for an entity to provide notes to the financial statements is included in the Disclosure Section (Section 50) of the Codification. This update also provides codification where the original guidance was unclear. The Company adopted this standard and there was no impact to its consolidated financial condition or results of operations. In October 2020, the FASB issued ASU 2020-08 , Codification Improvements to Subtopic 310-20, Receivable-Nonrefundable Fees and Other Costs . The amendments in this update shortened the amortization period for certain purchased callable debt securities held at a premium by requiring that entities amortize the premium associated with those callable debt securities within the scope of paragraph 310-20-25-33 to the earliest call date. The amendments affect the guidance in ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities . The Company adopted this standard and there was no impact to its consolidated financial condition or results of operations. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740). This update simplifies the accounting for income taxes within Accounting Standards Codification (ASC) topic 740 by removing certain exceptions and clarifies existing guidance. The Company adopted this standard and there was no impact to its consolidated financial condition or results of operations. |
Valuation of Financial Instrume
Valuation of Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | Valuation of Financial Instruments Financial Instruments Carried at Fair Value The carrying value and the estimated fair value of the Company’s financial instruments at fair value were as follows: June 30, 2021 December 31, 2020 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (in millions) Financial assets Total investments at fair value $ 2,675.6 $ 2,675.6 $ 2,714.3 $ 2,714.3 Cash and cash equivalents 107.6 107.6 160.4 160.4 Restricted cash and cash equivalents 0.2 0.2 0.2 0.2 Assets and liabilities recorded at fair value on the Company’s Consolidated Balance Sheets are categorized based upon the levels of judgment associated with the inputs used to measure their fair value. Level inputs are defined as follows: • Level 1 - Inputs are unadjusted quoted market prices for identical assets or liabilities in active markets at the measurement date. • Level 2 - Inputs other than Level 1 prices that are observable for similar assets or liabilities through corroboration with market data at the measurement date. • Level 3 - Inputs that are unobservable that reflect management’s best estimate of what willing market participants would use in pricing the assets or liabilities at the measurement date. The Company uses third party pricing services to assist with its investment accounting function. The ultimate pricing source varies depending on the investment security and pricing service used, but investment securities valued on the basis of observable inputs (Levels 1 and 2) are generally assigned values on the basis of actual transactions. Securities valued on the basis of pricing models with significant unobservable inputs or non-binding broker quotes are classified as Level 3. The Company performs quarterly analyses on the prices it receives from third parties to determine whether the prices are reasonable estimates of fair value, including confirming the fair values of these securities through observable market prices using an alternative pricing source, as it is ultimately management’s responsibility to ensure that the fair values reflected in the Company’s consolidated financial statements are appropriate. If differences are noted in these analyses, the Company may obtain additional information from other pricing services to validate the quoted price. The Company bases all of its estimates of fair value for assets on the bid prices, when available, as they represent what a third-party market participant would be willing to pay in an arm’s length transaction. For securities not actively traded, third party pricing services may use quoted market prices of similar instruments or discounted cash flow analyses, incorporating inputs that are currently observable in the markets for similar securities. Inputs that are often used in the valuation methodologies include, but are not limited to, broker quotes, benchmark yields, credit spreads, default rates, and prepayment speed assumptions. There were no material adjustments to the valuation methodology utilized by third party pricing services as of June 30, 2021 and December 31, 2020. These methods of valuation only produce an estimate of fair value if there is objectively verifiable information to produce a valuation. If objectively verifiable information is not available, the Company would be required to produce an estimate of fair value using some of the same methodologies, making assumptions for market-based inputs that are unavailable. The following table presents the Company’s investments at fair value and the corresponding fair value measurements. June 30, 2021 December 31, 2020 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in millions) Fixed maturity securities: U.S. Treasuries $ — $ 69.5 $ — $ — $ 78.3 $ — U.S. Agencies — 3.0 — — 3.1 — States and municipalities — 427.3 — — 482.7 — Corporate securities — 1,119.7 — — 1,046.4 — Residential mortgage-backed securities — 384.9 — — 461.0 — Commercial mortgage-backed securities — 92.2 — — 102.4 — Asset-backed securities — 48.0 — — 42.6 — Collateralized loan obligations — 85.4 — — 83.6 — Foreign government securities — 12.6 — — 8.2 — Other securities — 175.7 — — 170.9 — Total fixed maturity securities $ — $ 2,418.3 $ — $ — $ 2,479.2 $ — Equity securities at fair value: Industrial and miscellaneous $ 226.3 $ — $ — $ 179.1 $ — $ — Other 30.7 — — 29.4 — — Total equity securities at fair value $ 257.0 $ — $ — $ 208.5 $ — $ — Short-term investments $ — $ 0.3 $ — $ 4.0 $ 22.6 $ — Total investments at fair value $ 257.0 $ 2,418.6 $ — $ 212.5 $ 2,501.8 $ — Financial Instruments Carried at Cost EICN, ECIC, EPIC, and EAC are members of the Federal Home Loan Bank of San Francisco (FHLB). Members are required to purchase stock in the FHLB in addition to maintaining collateral deposits that back any funds advanced. The Company’s investment in FHLB stock is recorded at cost, which approximates fair value, as purchases and sales of these securities are at par value with the issuer. FHLB stock is considered a restricted security and is periodically evaluated by the Company for impairment based on the ultimate recovery of par value. The Company also has investments in convertible preferred shares of real estate investment trusts which are carried at cost and approximate fair value. Financial Instruments Carried at Net Asset Value (NAV) The Company has investments in private equity limited partnership interests that are included in Other invested assets on the Company’s Consolidated Balance Sheets. These investments do not have readily determinable fair values and are carried at NAV and therefore are excluded from the fair value hierarchy. The Company initially estimates the value of these investments using the transaction price. In subsequent periods, the Company measures these investments using NAV per share provided quarterly by the general partner, based on financial statements that are audited annually. These investments are generally not redeemable by the investees and cannot be sold without approval of the general partner. These investments have a fund term of 10 to 12 years, subject to two or three one year extensions at the general partner’s discretion. The Company will receive distributions of proceeds from dividends and interest from fund investments, as well as from the disposition of a fund investment, or portion thereof. The Company expects these distributions from time-to-time during the full course of the fund term. As of June 30, 2021, the Company had unfunded commitments to these private equity limited partnerships totaling $54.4 million. Additionally, certain cash equivalents, principally money market securities, are measured using NAV, which approximates fair value. The following table presents cash and investments carried at NAV on the Company’s Consolidated Balance Sheets. June 30, 2021 December 31, 2020 (in millions) Cash equivalents carried at NAV $ 75.6 $ 58.7 Other invested assets carried at NAV 25.8 16.2 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2021 | |
Investments [Abstract] | |
Investments | Investments The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the Company’s available-for-sale (AFS) investments were as follows: Amortized Gross Gross Estimated (in millions) At June 30, 2021 Fixed maturity securities U.S. Treasuries $ 67.1 $ 2.4 $ — $ 69.5 U.S. Agencies 2.8 0.2 — 3.0 States and municipalities 399.6 27.7 — 427.3 Corporate securities 1,053.9 66.6 (0.8) 1,119.7 Residential mortgage-backed securities 377.3 10.1 (2.5) 384.9 Commercial mortgage-backed securities 86.3 6.0 (0.1) 92.2 Asset-backed securities 47.3 1.0 (0.3) 48.0 Collateralized loan obligations 85.4 0.1 (0.1) 85.4 Foreign government securities 12.8 — (0.2) 12.6 Other securities 174.7 1.5 (0.5) 175.7 Total fixed maturity securities $ 2,307.2 $ 115.6 $ (4.5) $ 2,418.3 Short-term investments 0.3 — — 0.3 Total AFS investments $ 2,307.5 $ 115.6 $ (4.5) $ 2,418.6 At December 31, 2020 Fixed maturity securities U.S. Treasuries $ 74.3 $ 4.0 $ — $ 78.3 U.S. Agencies 2.8 0.3 — 3.1 States and municipalities 449.4 33.3 — 482.7 Corporate securities 963.5 83.2 (0.3) 1,046.4 Residential mortgage-backed securities 444.6 16.7 (0.3) 461.0 Commercial mortgage-backed securities 94.7 7.8 (0.1) 102.4 Asset-backed securities 42.0 0.9 (0.3) 42.6 Collateralized loan obligations 84.4 — (0.8) 83.6 Foreign government securities 8.0 0.2 — 8.2 Other securities 169.9 1.5 (0.5) 170.9 Total fixed maturity securities $ 2,333.6 $ 147.9 $ (2.3) $ 2,479.2 Short-term investments 26.5 0.1 — 26.6 Total AFS investments $ 2,360.1 $ 148.0 $ (2.3) $ 2,505.8 The cost and estimated fair value of the Company’s equity securities recorded at fair value at June 30, 2021 and December 31, 2020 were as follows: Cost Estimated Fair Value (in millions) At June 30, 2021 Equity securities at fair value Industrial and miscellaneous $ 135.3 $ 226.3 Other 18.6 30.7 Total equity securities at fair value $ 153.9 $ 257.0 At December 31, 2020 Equity securities at fair value Industrial and miscellaneous $ 94.1 $ 179.1 Other 18.3 29.4 Total equity securities at fair value $ 112.4 $ 208.5 The Company had Other invested assets totaling $45.8 million and $36.2 million at June 30, 2021 and December 31, 2020, respectively. These investments consisted of: (i) private equity limited partnerships that totaled $25.8 million and $16.2 million (initial cost of $25.8 million and $16.8 million) at June 30, 2021 and December 31, 2020, respectively, which are carried at NAV based on information provided by the general partner; and (ii) convertible preferred shares of real estate investment trusts that totaled $20.0 million at each of June 30, 2021 and December 31, 2020, which are carried at cost and approximate fair value. These investments are non-redeemable until conversion and are periodically evaluated by the Company for impairment based on the ultimate recovery of the investment. Changes in the value of these investments are recorded through net realized and unrealized gains and losses on the Company’s Consolidated Statements of Comprehensive Income. The amortized cost and estimated fair value of the Company’s fixed maturity securities at June 30, 2021, by contractual maturity, are shown below. Expected maturities differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Estimated Fair Value (in millions) Due in one year or less $ 98.3 $ 99.3 Due after one year through five years 706.9 746.7 Due after five years through ten years 804.2 853.9 Due after ten years 101.5 107.9 Mortgage and asset-backed securities 596.3 610.5 Total $ 2,307.2 $ 2,418.3 The following is a summary of AFS investments that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or greater as of June 30, 2021 and December 31, 2020. June 30, 2021 December 31, 2020 Estimated Fair Value Gross Number of Issues Estimated Fair Value Gross Number of Issues (dollars in millions) Less than 12 months: Fixed maturity securities Corporate securities $ 46.1 $ (0.8) 65 $ 9.7 $ (0.3) 10 Residential mortgage-backed securities 140.5 (2.5) 43 47.4 (0.3) 13 Commercial mortgage-backed securities 2.6 (0.1) 1 5.5 (0.1) 6 Asset-backed securities 16.5 (0.3) 7 7.8 (0.3) 6 Collateralized loan obligations — — — 74.6 (0.8) 18 Foreign government securities 7.8 (0.2) 1 — — — Other securities 66.2 (0.4) 163 60.4 (0.5) 146 Total fixed maturity securities 279.7 (4.3) 280 205.4 (2.3) 199 Total less than 12 months $ 279.7 $ (4.3) 280 $ 205.4 $ (2.3) 199 12 months or greater: Fixed maturity securities Collateralized loan obligations $ 24.7 $ (0.1) 6 $ — $ — — Other securities 8.2 (0.1) 28 — — — Total fixed maturity securities 32.9 (0.2) 34 — — — Total 12 months or greater $ 32.9 $ (0.2) 34 $ — $ — — As of June 30, 2021 and December 31, 2020, the Company had an allowance for current expected credit losses (CECL) on AFS debt securities of $0.1 million and $0.7 million, respectively (See Note 5). Those fixed maturity securities whose total fair value was less than amortized cost at June 30, 2021 and December 31, 2020, were those in which the Company had no intent, need or requirement to sell at an amount less than their amortized cost. Realized gains and losses on investments include the gain or loss on a security at the time of sale compared to its original or adjusted cost (equity securities) or amortized cost (fixed maturity securities). Realized losses on fixed maturity securities are also recognized when securities are written down as a result of an other-than-temporary impairment or for changes in the expected credit loss allowance. Net realized gains and losses on investments and the change in unrealized gains and losses on the Company’s investments recorded at fair value are determined on a specific-identification basis and were as follows: Gross Realized Gains Gross Realized Losses Net Change in CECL Allowance Change in Net Unrealized Gains Changes in Fair Value Reflected in Earnings Changes in Fair Value Reflected in AOCI, before tax (in millions) Three Months Ended June 30, 2021 Fixed maturity securities $ 2.2 $ (0.3) $ 0.1 $ 11.1 $ 2.0 $ 11.1 Equity securities 17.5 (1.6) — (1.8) 14.1 — Other invested assets — — — (0.1) (0.1) — Total investments $ 19.7 $ (1.9) $ 0.1 $ 9.2 $ 16.0 $ 11.1 Six Months Ended June 30, 2021 Fixed maturity securities $ 2.9 $ (0.7) $ 0.6 $ (34.5) $ 2.8 $ (34.5) Equity securities 18.4 (1.9) — 7.0 23.5 — Other invested assets — — — 0.6 0.6 — Short-term investments — — — (0.1) — (0.1) Total investments $ 21.3 $ (2.6) $ 0.6 $ (27.0) $ 26.9 $ (34.6) Three Months Ended June 30, 2020 Fixed maturity securities $ 0.6 $ (2.6) $ 9.5 $ 79.8 $ 7.5 $ 79.8 Equity securities 1.7 (11.5) — 42.3 32.5 — Other invested assets — — — (0.3) (0.3) — Short-term investments — — — 0.4 — 0.4 Total investments $ 2.3 $ (14.1) $ 9.5 $ 122.2 $ 39.7 $ 80.2 Six Months Ended June 30, 2020 Fixed maturity securities $ 4.7 $ (2.9) $ (1.2) $ 49.9 $ 0.6 $ 49.9 Equity securities 24.4 (18.8) — (26.9) (21.3) — Other invested assets — — — (0.7) (0.7) — Short-term investments — — — 0.4 — 0.4 Total investments $ 29.1 $ (21.7) $ (1.2) $ 22.7 $ (21.4) $ 50.3 Proceeds from the sales of fixed maturity securities were $84.2 million and $158.2 million for the three and six months ended June 30, 2021, respectively, compared to $29.6 million and $249.8 million for the three and six months ended June 30, 2020, respectively. Net investment income was as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in millions) Fixed maturity securities $ 18.5 $ 18.7 $ 36.7 $ 38.0 Equity securities 0.9 1.1 1.8 2.4 Other invested assets 0.3 0.7 0.5 1.3 Short-term investments — 0.3 0.2 0.4 Cash equivalents and restricted cash — 0.2 — 0.4 Gross investment income 19.7 21.0 39.2 42.5 Investment expenses (1.5) (1.1) (2.6) (2.7) Net investment income $ 18.2 $ 19.9 $ 36.6 $ 39.8 |
Current Expected Credit Losses
Current Expected Credit Losses | 6 Months Ended |
Jun. 30, 2021 | |
Credit Loss [Abstract] | |
Credit Losses | Current Expected Credit Losses Premiums Receivable Premiums receivable balances are all due within one year or less. The Company currently determines the allowance for premiums receivable based on an internal aging schedule using collectability and historical payment patterns, as well as current and expected future market conditions to determine the appropriateness of the allowance. Historical payment patterns and future market conditions provide the basis for the estimation along with similar risk characteristics and the Company's business strategy, which have not changed significantly over time. As a result of the COVID-19 pandemic, unemployment rates and the temporary and permanent closures of small businesses have increased the risk of collections, however, the Company anticipates this trend will improve as businesses return to more normalized operations. Based on our past experience with generally similar conditions, the Company will continually assess the historical payment patterns and aging schedule to reflect the differences in our current conditions and future forecasted changes. Changes in the allowance for credit losses are recorded through underwriting and general and administrative expenses. The table below shows the changes in the allowance for expected credit losses on premiums receivable. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in millions) Beginning balance of the allowance for expected credit losses on premiums receivable $ 12.2 $ 3.9 $ 10.8 $ 4.6 Current period provision for expected credit losses 1.9 4.3 5.2 8.3 Write-offs charged against the allowance (0.1) (0.1) (0.2) (4.8) Recoveries collected (2.4) — (4.2) — Ending balance of the allowance for expected credit losses on premiums receivable $ 11.6 $ 8.1 $ 11.6 $ 8.1 Reinsurance Recoverable In assessing an allowance for reinsurance assets, which includes reinsurance recoverables and contingent commission receivables, the Company considers historical information, financial strength of reinsurers, collateralization amounts, and ratings to determine the appropriateness of the allowance. Historically, the Company has not experienced a credit loss from reinsurance transactions. In assessing future default, the Company evaluated the CECL allowance under the ratings-based method using the A.M. Best Average Cumulative Net Impairment Rates. Reinsurer ratings are also assessed through this process. Changes in the allowance for credit losses are recorded through underwriting and general and administrative expenses. The table below shows the changes in the allowance for expected credit losses on reinsurance recoverables. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in millions) Beginning balance of the allowance for expected credit losses on reinsurance recoverables $ 0.4 $ 0.4 $ 0.4 $ — Current period provision for expected credit losses 0.2 — 0.2 0.4 Ending balance of the allowance for expected credit losses on reinsurance recoverables $ 0.6 $ 0.4 $ 0.6 $ 0.4 Investments The Company assesses all AFS debt securities in an unrealized loss position for expected credit losses. The Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria is met, the security's amortized cost basis is written down to its fair value. For AFS debt securities that do not meet either criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. Any impairment that has not been recorded through an allowance for credit losses is recognized in Accumulated other comprehensive income on the Company's Consolidated Balance Sheets. Changes in the allowance for credit losses are recorded through realized capital losses. As of June 30, 2021, the Company established an aggregate allowance for credit losses in the amount of $0.1 million. For the Company’s investments in fixed-income debt securities, the allowance for credit losses was determined by: (i) observing the credit characteristics of those debt securities that may have demonstrated a credit loss as of that date and by comparing the present value of cash flows expected to be collected to its amortized cost basis; and (ii) observing the credit characteristics of those debt securities that are expected to demonstrate a credit loss in the future by comparing the present value of cash flows expected to be collected to its amortized cost basis. The expected present value of cash flows are calculated using scenario based credit loss models derived from the discounted cash flows under the Comprehensive Capital Analysis Review (CCAR) framework, which is adopted by the Federal Reserve. As of June 30, 2021, the Company did not intend to sell any of its AFS debt securities in which its amortized cost exceeded its fair value. Accrued interest receivable on AFS debt securities totaled $15.5 million at June 30, 2021 and is excluded from the estimate of credit losses based on historically timely payments. The table below shows the changes in the allowance for expected credit losses on available-for-sale securities. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in millions) Beginning balance of the allowance for expected credit losses on AFS securities $ 0.2 $ 10.7 $ 0.7 $ — Current period provision for expected credit losses — (7.4) — 3.3 Reductions in allowance from disposals — (2.1) (0.2) (2.1) Recoveries of amounts previously written off (0.1) — (0.4) — Ending balance of the allowance for expected credit losses on AFS securities $ 0.1 $ 1.2 $ 0.1 $ 1.2 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Property and Equipment Property and equipment consists of the following: As of June 30, As of December 31, 2021 2020 (in millions) Furniture and equipment $ 3.2 $ 3.4 Leasehold improvements 5.5 5.5 Computers and software 51.3 53.3 Automobiles 0.8 0.8 Property and equipment, gross 60.8 63.0 Accumulated depreciation (44.2) (43.9) Property and equipment, net $ 16.6 $ 19.1 Depreciation expenses related to property and equipment for the three and six months ended June 30, 2021 were $1.9 million and $3.8 million, respectively, and $8.2 million for the year ended December 31, 2020. Internally developed software costs of $0.7 million and $1.2 million were capitalized during the three and six months ended June 30, 2021, respectively, and $3.2 million in internally developed software costs were capitalized during the year ended December 31, 2020. Cloud Computing Arrangements The Company’s capitalized costs associated with cloud computing arrangements totaled $49.0 million and $50.2 million, which were comprised of service contract fees and implementation costs associated with hosting arrangements as of June 30, 2021 and December 31, 2020, respectively. Total amortization for hosting arrangements was $3.1 million and $6.2 million for the three and six months ended June 30, 2021, respectively, and $9.0 million for the year ended December 31, 2020. Leases The Company determines if an arrangement is a lease at the inception of the transaction. Operating leases for offices are presented as a right-of-use asset (ROU asset) and lease liability on the Company’s Consolidated Balance Sheets. Financing leases for automobiles are included in property and equipment and other liabilities on the Company’s Consolidated Balance Sheets. ROU assets represent the right to use an underlying asset for the lease term and the lease liability represents the obligation to make lease payments arising from the lease transaction. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of the lease payments over the lease term. The Company uses collateralized incremental borrowing rates to determine the present value of lease payments. The ROU assets also include lease payments less any lease incentives within a lease agreement. The Company’s lease terms may include options to extend or terminate a lease. Lease expense for lease payments is recognized on a straight-line basis over the lease term. As of June 30, 2021, the Company’s operating leases have remaining terms of 1 year to 8 years, with options to extend up to 9 years with no termination provision. The Company’s finance leases have an option to terminate after 1 year. Components of lease expense were as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in millions) Operating lease expense $ 0.9 $ 1.1 $ 2.1 $ 2.4 Finance lease expense: Finance lease expense — — 0.1 0.1 Total lease expense $ 0.9 $ 1.1 $ 2.2 $ 2.5 As of June 30, 2021 , the weighted average remaining lease term for o perating leases was 5.8 years and for finance leases was 4.1 years. The weighted average dis cou nt rate was 2.2% and 7.7% for operating and finance leases, respectively . Maturities of lease liabilities were as follows: As of June 30, 2021 Operating Leases Finance Leases (in millions) 2021 $ 2.0 $ 0.1 2022 3.3 0.1 2023 3.3 0.2 2024 3.2 0.1 2025 3.1 0.1 Thereafter 4.7 — Total lease payments 19.6 0.6 Less: imputed interest (1.2) — Total $ 18.4 $ 0.6 Supplemental balance sheet information related to leases was as follows: As of June 30, As of December 31, 2021 2020 (in millions) Operating leases: Operating lease right-of-use asset $ 15.8 $ 17.4 Operating lease liability 18.4 19.9 Finance leases: Property and equipment, gross 0.8 0.8 Accumulated depreciation (0.2) (0.5) Property and equipment, net 0.6 0.3 Other liabilities $ 0.6 $ 0.4 Supplemental cash flow information related to leases was as follows: Six Months Ended June 30, 2021 2020 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 1.9 $ 2.4 Financing cash flows used for finance leases 0.1 0.1 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | Income TaxesThe Company’s effective tax rates were 18.5% and 17.5% for the three and six months ended June 30, 2021, respectively, compared to 19.8% and 14.8% for the corresponding periods of 2020. The effective rates during each of the periods presented included income tax benefits associated with tax-advantaged investment income, LPT adjustments, and deferred gain amortization. |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expenses | 6 Months Ended |
Jun. 30, 2021 | |
Liability for Unpaid Losses and Loss Adjustment Expenses [Abstract] | |
Liability for Unpaid Losses and Loss Adjustment Expenses | Liability for Unpaid Losses and Loss Adjustment Expenses The following table represents a reconciliation of changes in the liability for unpaid losses and LAE. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in millions) Unpaid losses and LAE at beginning of period $ 2,034.1 $ 2,191.7 $ 2,069.4 $ 2,192.8 Less reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE 492.3 527.0 497.0 532.5 Net unpaid losses and LAE at beginning of period 1,541.8 1,664.7 1,572.4 1,660.3 Losses and LAE, net of reinsurance, incurred during the period related to: Current period 87.3 99.2 172.9 209.4 Prior periods (1.6) (23.6) (15.5) (27.1) Total net losses and LAE incurred during the period 85.7 75.6 157.4 182.3 Paid losses and LAE, net of reinsurance, related to: Current period 15.9 17.1 20.6 24.0 Prior periods 87.5 76.1 185.1 171.5 Total net paid losses and LAE during the period 103.4 93.2 205.7 195.5 Ending unpaid losses and LAE, net of reinsurance 1,524.1 1,647.1 1,524.1 1,647.1 Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE 483.5 523.6 483.5 523.6 Unpaid losses and LAE at end of period $ 2,007.6 $ 2,170.7 $ 2,007.6 $ 2,170.7 Total net losses and LAE included in the above table exclude amortization of the deferred reinsurance gain—LPT Agreement, which totaled $2.0 million and $2.5 million for the three months ended June 30, 2021 and 2020, respectively, and $4.1 million and $4.9 million for the six months ended June 30, 2021 and 2020, respectively (See Note 9). The change in incurred losses and LAE attributable to prior periods for the three and six months ended June 30, 2021 included $1.6 million and $15.0 million of net favorable development on the Company’s voluntary risk business, respectively, and $0.5 million of favorable development on the Company’s assigned risk business for the six months ended June 30, 2021. The three months ended June 30, 2021 included unfavorable development of $8.0 million in accident year 2020, almost entirely related to two catastrophic non-COVID claims, offset by favorable prior year loss development of $9.6 million, primarily in accident years 2017 and prior. |
LPT Agreement
LPT Agreement | 6 Months Ended |
Jun. 30, 2021 | |
LPT Agreement [Abstract] | |
LPT Agreement | LPT AgreementThe Company is party to the LPT Agreement under which $1.5 billion in liabilities for losses and LAE related to claims incurred by the Fund prior to July 1, 1995 were reinsured for consideration of $775.0 million. The LPT Agreement provides coverage up to $2.0 billion. The Company records its estimate of contingent profit commission in the accompanying Consolidated Balance Sheets as Contingent commission receivable–LPT Agreement and a corresponding liability is recorded in the accompanying Consolidated Balance Sheets in Deferred reinsurance gain–LPT Agreement. The Deferred Gain is being amortized using the recovery method. Amortization is determined by the proportion of actual reinsurance recoveries to total estimated recoveries over the life of the LPT Agreement, except for the contingent profit commission, which is amortized through June 30, 2024, the date through which the Company is entitled to receive a contingent profit commission under the LPT Agreement. The amortization is recorded in losses and LAE incurred in the accompanying consolidated statements of comprehensive income. Any adjustments to the Deferred Gain are recorded in losses and LAE incurred in the accompanying consolidated statements of comprehensive income.The Company amortized $2.0 million and $2.5 million of the Deferred Gain for the three months ended June 30, 2021 and 2020, respectively, and $4.1 million and $4.9 million for the six months ended June 30, 2021 and 2020, respectively. The remaining Deferred Gain was $121.3 million and $125.4 million as of June 30, 2021 and December 31, 2020, respectively. The estimated remaining liabilities subject to the LPT Agreement were $343.7 million and $353.5 million as of June 30, 2021 and December 31, 2020, respectively. Losses and LAE paid with respect to the LPT Agreement totaled $828.7 million and $818.9 million from inception through June 30, 2021 and December 31, 2020, respectively. |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2021 | |
Notes Payable [Abstract] | |
Debt Disclosure [Text Block] | FHLB Advances, Notes Payable and Other Financing Arrangements On December 15, 2020, the Company entered into a Credit Agreement (the Credit Agreement) with a syndicate of financial institutions. The Credit Agreement provides for a $75.0 million three-year revolving credit facility and is guaranteed by certain of the Company’s wholly owned subsidiaries (Employers Group, Inc. and Cerity Group, Inc.). Borrowings under the Credit Agreement may be used for working capital and general corporate purposes of the Company and its subsidiaries. Pursuant to the Credit Agreement, the Company also has an option to request an increase of the credit available under the facility up to a maximum facility amount of $125.0 million, subject to the consent of lenders and the satisfaction of certain conditions. The interest rates applicable to loans under the Credit Agreement are generally based on a base rate plus a specified margin, ranging from 0.25% to 1.25%, or the Eurodollar rate (which will convert to an alternative reference rate once LIBOR is discontinued), plus a specified margin, ranging from 1.25% to 2.25%. In addition, the Company will pay a fee on each lender’s commitment, ranging from 0.20% to 0.50%, irrespective of usage. The applicable margin and the amount of such commitment fee vary based upon the financial strength rating of the Company’s insurance subsidiaries as most recently announced by A.M. Best or the Company’s debt to total capitalization ratio if such financial strength rating is not available. Interest paid during the three and six months ended June 30, 2021 totaled $0.1 million and $0.2 million, respectively. The Credit Agreement contains covenants that require the Company and its consolidated subsidiaries to maintain: (i) a minimum consolidated net worth of no less than 70% of the Company’s stockholders’ equity as of September 30, 2020, plus 50% of the Company’s aggregate net income thereafter; and (ii) a debt to total capitalization ratio of no more than 35%, in each case as determined in accordance with the Credit Agreement. At June 30, 2021, the Company was in compliance with all debt covenants. The Company incurred $0.7 million in debt issuance costs, which are being amortized over the three-year life of the facility in Interest and Financing expenses. The annual commitment and administrative fee on the unused portion of the facility is 0.30%, for a maximum of $225,000, and an annual agency fee of $25,000. Advances can be repaid at any time without prepayment penalties or additional fees. The Company borrowed and subsequently repaid $15.0 million and $27.0 million under the credit facility during the three and six months ended June 30, 2021, respectively. As of June 30, 2021, the Company had no outstanding borrowings on the credit facility. Other financing arrangements are comprised of the following: EICN, ECIC, EPIC, and EAC are members of the FHLB. Membership allows the insurance subsidiaries access to collateralized advances, which may be used to support and enhance liquidity management. The amount of advances that may be taken is dependent on statutory admitted assets on a per company basis. During the second quarter of 2020, the FHLB announced its Zero Interest Recovery Advance program (the FHLB Advance Program). The FHLB Advance Program is a zero percent interest, six-month or one-year credit product that members can use to provide immediate relief to property owners, businesses, and other customers from the effects of the COVID-19 pandemic. Each member was allocated up to $10.0 million in advances under the FHLB Advance Program. On May 11, 2020, the Company's insurance subsidiaries received a total of $35.0 million of advances under the Advance Program. The advances were secured by collateral previously pledged to the FHLB by the Company’s insurance subsidiaries in support of their existing collateralized advance facility, which has been reduced by the amount of these outstanding advances. The Company repaid $15.0 million on November 4, 2020, $5.0 million on March 31, 2021, and the remaining $15.0 million on May 4, 2021. As of June 30, 2021, the Company has no outstanding advances. FHLB membership also allows the Company’s insurance subsidiaries access to standby letters of credit (Letter of Credit Agreements). On January 26, 2021, the Company chose to amend its existing Letter of Credit Agreements among the FHLB, EPIC and EAC to decrease their respective letter of credit amounts. The current Letter of Credit Agreements, as amended, are in the amounts of $50.0 million for EAC, $70.0 million for ECIC, and $10.0 million for EPIC. The amended Letter of Credit Agreements will expire on March 31, 2022, and will remain evergreen with automatic one-year extensions unless the FHLB notifies the beneficiary at least 60 days prior to the then applicable expiration date of its election not to renew. The Letter of Credit Agreements may only be used to satisfy, in whole or in part, insurance deposit requirements with the State of California and are fully secured with eligible collateral at all times. The Letter of Credit Agreements are subject to annual maintenance charges and a fee of 15 basis points on issued amounts. As of June 30, 2021 and December 31, 2020, letters of credit totaling $130.0 million and $275.0 million, respectively, were issued in lieu of securities on deposit with the State of California under these Letter of Credit Agreements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income, Net | Accumulated Other Comprehensive Income Accumulated other comprehensive income is comprised of unrealized gains on investments classified as AFS, net of deferred tax expense. The following table summarizes the components of accumulated other comprehensive income: June 30, 2021 December 31, 2020 (in millions) Net unrealized gains on investments, before taxes $ 111.1 $ 145.7 Deferred tax expense on net unrealized gains (23.3) (30.6) Total accumulated other comprehensive income $ 87.8 $ 115.1 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Stock-Based Compensation [Abstract] | |
Stock-Based compensation | Stock-Based Compensation The Company awarded restricted stock units (RSUs) and performance share units (PSUs) to certain employees and non-employee Directors of the Company as follows: Number Awarded Weighted Average Fair Value on Date of Grant Aggregate Fair Value on Date of Grant (in millions) March 2021 RSUs (1) 66,560 $ 37.54 $ 2.5 PSUs (2) 77,320 37.54 2.9 April 2021 PSUs (2) 980 $ 43.29 $ — May 2021 RSUs (3) 15,093 $ 40.75 $ 0.6 (1) The RSUs awarded in March 2021 were awarded to certain employees of the Company and vest 25% on March 15, 2022, and each of the subsequent three anniversaries of that date. The RSUs are subject to accelerated vesting in certain circumstances, including but not limited to: death, disability, retirement, or in connection with a change of control of the Company. (2) The PSUs awarded in March 2021 and April 2021 were awarded to certain employees of the Company and have a performance period of two years followed by an additional one year vesting period. The PSU awards are subject to certain performance goals with payouts that range from 0% to 200% of the target awards. The value shown in the table represents the aggregate number of PSUs awarded at the target level. (3) The RSUs awarded in May 2021 were awarded to non-employee Directors of the Company and vest in full on May 27, 2022. Employees who were awarded RSUs and PSUs are entitled to receive dividend equivalents for eligible awards, payable in cash, when the underlying award vests and becomes payable. If the underlying award does not vest or is forfeited, dividend equivalents with respect to the underlying award will also fail to become payable and will be forfeited. Stock options exercised totaled 48,051 for the six months ended June 30, 2021, 38,500 for the six months ended June 30, 2020, and 40,800 for the year ended December 31, 2020. As of June 30, 2021, the Company had 65,165 options, 199,178 RSUs, and 183,981 PSUs (based on target number awarded) outstanding. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Common Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilutive impact of all common stock equivalents on earnings per share. Diluted earnings per share includes common shares assumed issued under the “treasury stock method,” which reflects the potential dilution that would occur if outstanding RSUs and PSUs vested and stock options were to be exercised. RSUs and PSUs are entitled to receive dividend equivalents on awards that fully vest or become payable. The dividend equivalents are reflected in the Company’s net income; therefore, these awards are not considered participating securities for the purposes of determining earnings per share. The following table presents the net income and the weighted average number of shares outstanding used in the earnings per common share calculations. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in millions, except share data) Net income $ 26.4 $ 59.6 $ 49.5 $ 24.7 Weighted average number of shares outstanding—basic 28,478,788 30,043,900 28,497,654 30,697,975 Effect of dilutive securities: PSUs 242,861 144,710 293,738 238,258 Stock options 26,819 25,524 30,675 45,031 RSUs 60,873 15,419 66,668 38,864 Dilutive potential shares 330,553 185,653 391,081 322,153 Weighted average number of shares outstanding—diluted 28,809,341 30,229,553 28,888,735 31,020,128 Diluted earnings per share excludes outstanding options and other common stock equivalents in periods where the inclusion of such options and common stock equivalents would be anti-dilutive. The following table presents options, PSUs, and RSUs that were excluded from diluted earnings per share. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in millions, except share data) Options, PSUs, and RSUs excluded under the treasury method, as the potential proceeds on settlement or exercise was greater than the value of shares acquired — 168,390 — 84,195 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segment Reporting The Company has determined that it has two reportable segments: Employers and Cerity. Each of these segments represents a separate and distinct underwriting platform through which the Company conducts insurance business. The nature and composition of each reportable segment and its Corporate and Other activities are as follows: The Employers segment represents the traditional business offered through the EMPLOYERS brand name (Employers) through its agents, including business originated from the Company's strategic partnerships and alliances. The Cerity segment represents the business offered under the Cerity brand name, which includes the Company's direct-to-customer business. Corporate and Other activities consist of those holding company expenses that are not considered to be underwriting in nature, the financial impact of the LPT agreement, and legacy business assumed and ceded by CIC. These expenses are not considered to be part of a reportable segment and are not otherwise allocated to a reportable segment. The Company has determined that it is not practicable to report identifiable assets by segment since certain assets are used interchangeably among the segments. The following table summarizes the Company's written premium and components of net income before income taxes by reportable segment. Employers Cerity Corporate and Other Total (in millions) Three Months Ended June 30, 2021 Gross premiums written $ 146.8 $ 0.3 $ — $ 147.1 Net premiums written 145.7 0.3 — 146.0 Net premiums earned 136.8 0.2 — 137.0 Net investment income 17.4 0.7 0.1 18.2 Net realized and unrealized gains on investments 15.8 0.2 — 16.0 Other income 0.2 — — 0.2 Total revenues 170.2 1.1 0.1 171.4 Losses and loss adjustment expenses 85.6 0.1 (2.0) 83.7 Commission expense 18.0 — — 18.0 Underwriting and general and administrative expenses 31.5 2.6 2.9 37.0 Interest and financing expenses — — 0.2 0.2 Other expenses 0.1 — — 0.1 Total expenses 135.2 2.7 1.1 139.0 Net income (loss) before income taxes $ 35.0 $ (1.6) $ (1.0) $ 32.4 Three Months Ended June 30, 2020 Gross premiums written $ 140.2 $ — $ — $ 140.2 Net premiums written 139.0 — — 139.0 Net premiums earned 151.4 0.1 — 151.5 Net investment income 18.8 0.9 0.2 19.9 Net realized and unrealized gains on investments 38.2 1.3 0.2 39.7 Other income 0.3 — — 0.3 Total revenues 208.7 2.3 0.4 211.4 Losses and loss adjustment expenses 75.6 — (2.5) 73.1 Commission expense 19.2 — — 19.2 Underwriting and general and administrative expenses 38.4 4.3 2.1 44.8 Total expenses 133.2 4.3 (0.4) 137.1 Net income (loss) before income taxes $ 75.5 $ (2.0) $ 0.8 $ 74.3 Employers Cerity Corporate and Other Total (in millions) Six Months Ended June 30, 2021 Gross premiums written $ 294.8 $ 0.6 $ — $ 295.4 Net premiums written 292.3 0.6 — 292.9 Net premiums earned 270.7 0.2 — 270.9 Net investment income 35.1 1.4 0.1 36.6 Net realized and unrealized gains on investments 26.6 0.3 — 26.9 Other income 0.6 — — 0.6 Total revenues 333.0 1.9 0.1 335.0 Losses and loss adjustment expenses 157.3 0.1 (4.1) 153.3 Commission expense 34.8 — — 34.8 Underwriting and general and administrative expenses 68.8 6.4 8.4 83.6 Interest and financing expenses — — 0.3 0.3 Other expenses 3.0 — — 3.0 Total expenses 263.9 6.5 4.6 275.0 Net income (loss) before income taxes $ 69.1 $ (4.6) $ (4.5) $ 60.0 Six Months Ended June 30, 2020 Gross premiums written $ 324.9 $ — $ — $ 324.9 Net premiums written 322.4 — — 322.4 Net premiums earned 319.3 0.1 — 319.4 Net investment income 37.4 1.7 0.7 39.8 Net realized and unrealized losses on investments (19.1) (0.4) (1.9) (21.4) Other income 0.6 — — 0.6 Total revenues 338.2 1.4 (1.2) 338.4 Losses and loss adjustment expenses 182.3 — (4.9) 177.4 Commission expense 40.5 — — 40.5 Underwriting and general and administrative expenses 77.6 8.1 5.8 91.5 Total expenses 300.4 8.1 0.9 309.4 Net income (loss) before income taxes $ 37.8 $ (6.7) $ (2.1) $ 29.0 Entity-Wide Disclosures The Company operates solely within the U.S. and does not have revenue from transactions with a single policyholder accounting for 10% or more of its revenues. The following table shows the Company's in-force premiums and number of policies in-force for each state of our largest states and all other states combined for the periods presented: June 30, 2021 December 31, 2020 June 30, 2020 December 31, 2019 State In-force Premiums Policies In-force Premiums Policies In-force Policies In-force Policies (dollars in millions) California $ 251.9 39,656 $ 262.0 39,610 $ 292.9 42,705 $ 329.8 43,079 Florida 39.1 7,633 37.9 6,898 37.1 6,406 36.3 5,822 New York 25.2 7,033 26.7 6,657 30.1 6,753 31.7 5,679 Other (43 states and D.C.) 242.9 52,992 251.3 50,341 263.3 48,710 266.8 44,104 Total $ 559.1 107,314 $ 577.9 103,506 $ 623.4 104,574 $ 664.6 98,684 |
Valuation of Financial Instru_2
Valuation of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value of Financial Instruments [Abstract] | |
Estimated fair value of financial instruments table | The carrying value and the estimated fair value of the Company’s financial instruments at fair value were as follows: June 30, 2021 December 31, 2020 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (in millions) Financial assets Total investments at fair value $ 2,675.6 $ 2,675.6 $ 2,714.3 $ 2,714.3 Cash and cash equivalents 107.6 107.6 160.4 160.4 Restricted cash and cash equivalents 0.2 0.2 0.2 0.2 |
Fair value, assets and liabilities measured on recurring basis table | The following table presents the Company’s investments at fair value and the corresponding fair value measurements. June 30, 2021 December 31, 2020 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in millions) Fixed maturity securities: U.S. Treasuries $ — $ 69.5 $ — $ — $ 78.3 $ — U.S. Agencies — 3.0 — — 3.1 — States and municipalities — 427.3 — — 482.7 — Corporate securities — 1,119.7 — — 1,046.4 — Residential mortgage-backed securities — 384.9 — — 461.0 — Commercial mortgage-backed securities — 92.2 — — 102.4 — Asset-backed securities — 48.0 — — 42.6 — Collateralized loan obligations — 85.4 — — 83.6 — Foreign government securities — 12.6 — — 8.2 — Other securities — 175.7 — — 170.9 — Total fixed maturity securities $ — $ 2,418.3 $ — $ — $ 2,479.2 $ — Equity securities at fair value: Industrial and miscellaneous $ 226.3 $ — $ — $ 179.1 $ — $ — Other 30.7 — — 29.4 — — Total equity securities at fair value $ 257.0 $ — $ — $ 208.5 $ — $ — Short-term investments $ — $ 0.3 $ — $ 4.0 $ 22.6 $ — Total investments at fair value $ 257.0 $ 2,418.6 $ — $ 212.5 $ 2,501.8 $ — |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Table Text Block] | Financial Instruments Carried at Net Asset Value (NAV) The Company has investments in private equity limited partnership interests that are included in Other invested assets on the Company’s Consolidated Balance Sheets. These investments do not have readily determinable fair values and are carried at NAV and therefore are excluded from the fair value hierarchy. The Company initially estimates the value of these investments using the transaction price. In subsequent periods, the Company measures these investments using NAV per share provided quarterly by the general partner, based on financial statements that are audited annually. These investments are generally not redeemable by the investees and cannot be sold without approval of the general partner. These investments have a fund term of 10 to 12 years, subject to two or three one year extensions at the general partner’s discretion. The Company will receive distributions of proceeds from dividends and interest from fund investments, as well as from the disposition of a fund investment, or portion thereof. The Company expects these distributions from time-to-time during the full course of the fund term. As of June 30, 2021, the Company had unfunded commitments to these private equity limited partnerships totaling $54.4 million. Additionally, certain cash equivalents, principally money market securities, are measured using NAV, which approximates fair value. The following table presents cash and investments carried at NAV on the Company’s Consolidated Balance Sheets. June 30, 2021 December 31, 2020 (in millions) Cash equivalents carried at NAV $ 75.6 $ 58.7 Other invested assets carried at NAV 25.8 16.2 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments [Abstract] | |
Available-for-sale securities table | The amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of the Company’s available-for-sale (AFS) investments were as follows: Amortized Gross Gross Estimated (in millions) At June 30, 2021 Fixed maturity securities U.S. Treasuries $ 67.1 $ 2.4 $ — $ 69.5 U.S. Agencies 2.8 0.2 — 3.0 States and municipalities 399.6 27.7 — 427.3 Corporate securities 1,053.9 66.6 (0.8) 1,119.7 Residential mortgage-backed securities 377.3 10.1 (2.5) 384.9 Commercial mortgage-backed securities 86.3 6.0 (0.1) 92.2 Asset-backed securities 47.3 1.0 (0.3) 48.0 Collateralized loan obligations 85.4 0.1 (0.1) 85.4 Foreign government securities 12.8 — (0.2) 12.6 Other securities 174.7 1.5 (0.5) 175.7 Total fixed maturity securities $ 2,307.2 $ 115.6 $ (4.5) $ 2,418.3 Short-term investments 0.3 — — 0.3 Total AFS investments $ 2,307.5 $ 115.6 $ (4.5) $ 2,418.6 At December 31, 2020 Fixed maturity securities U.S. Treasuries $ 74.3 $ 4.0 $ — $ 78.3 U.S. Agencies 2.8 0.3 — 3.1 States and municipalities 449.4 33.3 — 482.7 Corporate securities 963.5 83.2 (0.3) 1,046.4 Residential mortgage-backed securities 444.6 16.7 (0.3) 461.0 Commercial mortgage-backed securities 94.7 7.8 (0.1) 102.4 Asset-backed securities 42.0 0.9 (0.3) 42.6 Collateralized loan obligations 84.4 — (0.8) 83.6 Foreign government securities 8.0 0.2 — 8.2 Other securities 169.9 1.5 (0.5) 170.9 Total fixed maturity securities $ 2,333.6 $ 147.9 $ (2.3) $ 2,479.2 Short-term investments 26.5 0.1 — 26.6 Total AFS investments $ 2,360.1 $ 148.0 $ (2.3) $ 2,505.8 |
Equity securities table | The cost and estimated fair value of the Company’s equity securities recorded at fair value at June 30, 2021 and December 31, 2020 were as follows: Cost Estimated Fair Value (in millions) At June 30, 2021 Equity securities at fair value Industrial and miscellaneous $ 135.3 $ 226.3 Other 18.6 30.7 Total equity securities at fair value $ 153.9 $ 257.0 At December 31, 2020 Equity securities at fair value Industrial and miscellaneous $ 94.1 $ 179.1 Other 18.3 29.4 Total equity securities at fair value $ 112.4 $ 208.5 |
Other invested assets | The Company had Other invested assets totaling $45.8 million and $36.2 million at June 30, 2021 and December 31, 2020, respectively. These investments consisted of: (i) private equity limited partnerships that totaled $25.8 million and $16.2 million (initial cost of $25.8 million and $16.8 million) at June 30, 2021 and December 31, 2020, respectively, which are carried at NAV based on information provided by the general partner; and (ii) convertible preferred shares of real estate investment trusts that totaled $20.0 million at each of June 30, 2021 and December 31, 2020, which are carried at cost and approximate fair value. These investments are non-redeemable until conversion and are periodically evaluated by the Company for impairment based on the ultimate recovery of the investment. Changes in the value of these investments are recorded through net realized and unrealized gains and losses on the Company’s Consolidated Statements of Comprehensive Income. |
Investments classified by contractual maturity date table | The amortized cost and estimated fair value of the Company’s fixed maturity securities at June 30, 2021, by contractual maturity, are shown below. Expected maturities differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Estimated Fair Value (in millions) Due in one year or less $ 98.3 $ 99.3 Due after one year through five years 706.9 746.7 Due after five years through ten years 804.2 853.9 Due after ten years 101.5 107.9 Mortgage and asset-backed securities 596.3 610.5 Total $ 2,307.2 $ 2,418.3 |
Unrealized loss on investments table | The following is a summary of AFS investments that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or greater as of June 30, 2021 and December 31, 2020. June 30, 2021 December 31, 2020 Estimated Fair Value Gross Number of Issues Estimated Fair Value Gross Number of Issues (dollars in millions) Less than 12 months: Fixed maturity securities Corporate securities $ 46.1 $ (0.8) 65 $ 9.7 $ (0.3) 10 Residential mortgage-backed securities 140.5 (2.5) 43 47.4 (0.3) 13 Commercial mortgage-backed securities 2.6 (0.1) 1 5.5 (0.1) 6 Asset-backed securities 16.5 (0.3) 7 7.8 (0.3) 6 Collateralized loan obligations — — — 74.6 (0.8) 18 Foreign government securities 7.8 (0.2) 1 — — — Other securities 66.2 (0.4) 163 60.4 (0.5) 146 Total fixed maturity securities 279.7 (4.3) 280 205.4 (2.3) 199 Total less than 12 months $ 279.7 $ (4.3) 280 $ 205.4 $ (2.3) 199 12 months or greater: Fixed maturity securities Collateralized loan obligations $ 24.7 $ (0.1) 6 $ — $ — — Other securities 8.2 (0.1) 28 — — — Total fixed maturity securities 32.9 (0.2) 34 — — — Total 12 months or greater $ 32.9 $ (0.2) 34 $ — $ — — |
Unrealized gain (loss) on investments | Net realized gains and losses on investments and the change in unrealized gains and losses on the Company’s investments recorded at fair value are determined on a specific-identification basis and were as follows: Gross Realized Gains Gross Realized Losses Net Change in CECL Allowance Change in Net Unrealized Gains Changes in Fair Value Reflected in Earnings Changes in Fair Value Reflected in AOCI, before tax (in millions) Three Months Ended June 30, 2021 Fixed maturity securities $ 2.2 $ (0.3) $ 0.1 $ 11.1 $ 2.0 $ 11.1 Equity securities 17.5 (1.6) — (1.8) 14.1 — Other invested assets — — — (0.1) (0.1) — Total investments $ 19.7 $ (1.9) $ 0.1 $ 9.2 $ 16.0 $ 11.1 Six Months Ended June 30, 2021 Fixed maturity securities $ 2.9 $ (0.7) $ 0.6 $ (34.5) $ 2.8 $ (34.5) Equity securities 18.4 (1.9) — 7.0 23.5 — Other invested assets — — — 0.6 0.6 — Short-term investments — — — (0.1) — (0.1) Total investments $ 21.3 $ (2.6) $ 0.6 $ (27.0) $ 26.9 $ (34.6) Three Months Ended June 30, 2020 Fixed maturity securities $ 0.6 $ (2.6) $ 9.5 $ 79.8 $ 7.5 $ 79.8 Equity securities 1.7 (11.5) — 42.3 32.5 — Other invested assets — — — (0.3) (0.3) — Short-term investments — — — 0.4 — 0.4 Total investments $ 2.3 $ (14.1) $ 9.5 $ 122.2 $ 39.7 $ 80.2 Six Months Ended June 30, 2020 Fixed maturity securities $ 4.7 $ (2.9) $ (1.2) $ 49.9 $ 0.6 $ 49.9 Equity securities 24.4 (18.8) — (26.9) (21.3) — Other invested assets — — — (0.7) (0.7) — Short-term investments — — — 0.4 — 0.4 Total investments $ 29.1 $ (21.7) $ (1.2) $ 22.7 $ (21.4) $ 50.3 |
Investment income table | Net investment income was as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in millions) Fixed maturity securities $ 18.5 $ 18.7 $ 36.7 $ 38.0 Equity securities 0.9 1.1 1.8 2.4 Other invested assets 0.3 0.7 0.5 1.3 Short-term investments — 0.3 0.2 0.4 Cash equivalents and restricted cash — 0.2 — 0.4 Gross investment income 19.7 21.0 39.2 42.5 Investment expenses (1.5) (1.1) (2.6) (2.7) Net investment income $ 18.2 $ 19.9 $ 36.6 $ 39.8 |
Current Expected Credit Losses
Current Expected Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Credit Loss [Abstract] | |
Premium Receivable, Allowance for Credit Loss [Table Text Block] | The table below shows the changes in the allowance for expected credit losses on premiums receivable. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in millions) Beginning balance of the allowance for expected credit losses on premiums receivable $ 12.2 $ 3.9 $ 10.8 $ 4.6 Current period provision for expected credit losses 1.9 4.3 5.2 8.3 Write-offs charged against the allowance (0.1) (0.1) (0.2) (4.8) Recoveries collected (2.4) — (4.2) — Ending balance of the allowance for expected credit losses on premiums receivable $ 11.6 $ 8.1 $ 11.6 $ 8.1 |
Reinsurance Recoverable, Allowance for Credit Loss [Table Text Block] | The table below shows the changes in the allowance for expected credit losses on reinsurance recoverables. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in millions) Beginning balance of the allowance for expected credit losses on reinsurance recoverables $ 0.4 $ 0.4 $ 0.4 $ — Current period provision for expected credit losses 0.2 — 0.2 0.4 Ending balance of the allowance for expected credit losses on reinsurance recoverables $ 0.6 $ 0.4 $ 0.6 $ 0.4 |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Table Text Block] | The table below shows the changes in the allowance for expected credit losses on available-for-sale securities. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in millions) Beginning balance of the allowance for expected credit losses on AFS securities $ 0.2 $ 10.7 $ 0.7 $ — Current period provision for expected credit losses — (7.4) — 3.3 Reductions in allowance from disposals — (2.1) (0.2) (2.1) Recoveries of amounts previously written off (0.1) — (0.4) — Ending balance of the allowance for expected credit losses on AFS securities $ 0.1 $ 1.2 $ 0.1 $ 1.2 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment [Table Text Block] | Property and equipment consists of the following: As of June 30, As of December 31, 2021 2020 (in millions) Furniture and equipment $ 3.2 $ 3.4 Leasehold improvements 5.5 5.5 Computers and software 51.3 53.3 Automobiles 0.8 0.8 Property and equipment, gross 60.8 63.0 Accumulated depreciation (44.2) (43.9) Property and equipment, net $ 16.6 $ 19.1 |
Lease, Cost [Table Text Block] | Components of lease expense were as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in millions) Operating lease expense $ 0.9 $ 1.1 $ 2.1 $ 2.4 Finance lease expense: Finance lease expense — — 0.1 0.1 Total lease expense $ 0.9 $ 1.1 $ 2.2 $ 2.5 |
Lessee, Operating and Finance Lease Liability Maturity [Table Text Block] | Maturities of lease liabilities were as follows: As of June 30, 2021 Operating Leases Finance Leases (in millions) 2021 $ 2.0 $ 0.1 2022 3.3 0.1 2023 3.3 0.2 2024 3.2 0.1 2025 3.1 0.1 Thereafter 4.7 — Total lease payments 19.6 0.6 Less: imputed interest (1.2) — Total $ 18.4 $ 0.6 |
Supplemental Balance Sheet Information related to Leases [Table Text Block] | Supplemental balance sheet information related to leases was as follows: As of June 30, As of December 31, 2021 2020 (in millions) Operating leases: Operating lease right-of-use asset $ 15.8 $ 17.4 Operating lease liability 18.4 19.9 Finance leases: Property and equipment, gross 0.8 0.8 Accumulated depreciation (0.2) (0.5) Property and equipment, net 0.6 0.3 Other liabilities $ 0.6 $ 0.4 |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Supplemental cash flow information related to leases was as follows: Six Months Ended June 30, 2021 2020 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 1.9 $ 2.4 Financing cash flows used for finance leases 0.1 0.1 |
Liability for Unpaid Losses a_2
Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Liability for Unpaid Losses and Loss Adjustment Expenses [Abstract] | |
Changes in the liability for unpaid losses and LAE table | The following table represents a reconciliation of changes in the liability for unpaid losses and LAE. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in millions) Unpaid losses and LAE at beginning of period $ 2,034.1 $ 2,191.7 $ 2,069.4 $ 2,192.8 Less reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE 492.3 527.0 497.0 532.5 Net unpaid losses and LAE at beginning of period 1,541.8 1,664.7 1,572.4 1,660.3 Losses and LAE, net of reinsurance, incurred during the period related to: Current period 87.3 99.2 172.9 209.4 Prior periods (1.6) (23.6) (15.5) (27.1) Total net losses and LAE incurred during the period 85.7 75.6 157.4 182.3 Paid losses and LAE, net of reinsurance, related to: Current period 15.9 17.1 20.6 24.0 Prior periods 87.5 76.1 185.1 171.5 Total net paid losses and LAE during the period 103.4 93.2 205.7 195.5 Ending unpaid losses and LAE, net of reinsurance 1,524.1 1,647.1 1,524.1 1,647.1 Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE 483.5 523.6 483.5 523.6 Unpaid losses and LAE at end of period $ 2,007.6 $ 2,170.7 $ 2,007.6 $ 2,170.7 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of accumulated other comprehensive income (loss) table | The following table summarizes the components of accumulated other comprehensive income: June 30, 2021 December 31, 2020 (in millions) Net unrealized gains on investments, before taxes $ 111.1 $ 145.7 Deferred tax expense on net unrealized gains (23.3) (30.6) Total accumulated other comprehensive income $ 87.8 $ 115.1 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stock-Based Compensation [Abstract] | |
Share-based compensation arrangements by share-based payment award table | The Company awarded restricted stock units (RSUs) and performance share units (PSUs) to certain employees and non-employee Directors of the Company as follows: Number Awarded Weighted Average Fair Value on Date of Grant Aggregate Fair Value on Date of Grant (in millions) March 2021 RSUs (1) 66,560 $ 37.54 $ 2.5 PSUs (2) 77,320 37.54 2.9 April 2021 PSUs (2) 980 $ 43.29 $ — May 2021 RSUs (3) 15,093 $ 40.75 $ 0.6 (1) The RSUs awarded in March 2021 were awarded to certain employees of the Company and vest 25% on March 15, 2022, and each of the subsequent three anniversaries of that date. The RSUs are subject to accelerated vesting in certain circumstances, including but not limited to: death, disability, retirement, or in connection with a change of control of the Company. (2) The PSUs awarded in March 2021 and April 2021 were awarded to certain employees of the Company and have a performance period of two years followed by an additional one year vesting period. The PSU awards are subject to certain performance goals with payouts that range from 0% to 200% of the target awards. The value shown in the table represents the aggregate number of PSUs awarded at the target level. (3) The RSUs awarded in May 2021 were awarded to non-employee Directors of the Company and vest in full on May 27, 2022. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net income and weighted average common shares outstanding used in earnings per share calculations table | The following table presents the net income and the weighted average number of shares outstanding used in the earnings per common share calculations. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in millions, except share data) Net income $ 26.4 $ 59.6 $ 49.5 $ 24.7 Weighted average number of shares outstanding—basic 28,478,788 30,043,900 28,497,654 30,697,975 Effect of dilutive securities: PSUs 242,861 144,710 293,738 238,258 Stock options 26,819 25,524 30,675 45,031 RSUs 60,873 15,419 66,668 38,864 Dilutive potential shares 330,553 185,653 391,081 322,153 Weighted average number of shares outstanding—diluted 28,809,341 30,229,553 28,888,735 31,020,128 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Diluted earnings per share excludes outstanding options and other common stock equivalents in periods where the inclusion of such options and common stock equivalents would be anti-dilutive. The following table presents options, PSUs, and RSUs that were excluded from diluted earnings per share. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in millions, except share data) Options, PSUs, and RSUs excluded under the treasury method, as the potential proceeds on settlement or exercise was greater than the value of shares acquired — 168,390 — 84,195 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Net Income before income taxes by segment [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Employers Cerity Corporate and Other Total (in millions) Three Months Ended June 30, 2021 Gross premiums written $ 146.8 $ 0.3 $ — $ 147.1 Net premiums written 145.7 0.3 — 146.0 Net premiums earned 136.8 0.2 — 137.0 Net investment income 17.4 0.7 0.1 18.2 Net realized and unrealized gains on investments 15.8 0.2 — 16.0 Other income 0.2 — — 0.2 Total revenues 170.2 1.1 0.1 171.4 Losses and loss adjustment expenses 85.6 0.1 (2.0) 83.7 Commission expense 18.0 — — 18.0 Underwriting and general and administrative expenses 31.5 2.6 2.9 37.0 Interest and financing expenses — — 0.2 0.2 Other expenses 0.1 — — 0.1 Total expenses 135.2 2.7 1.1 139.0 Net income (loss) before income taxes $ 35.0 $ (1.6) $ (1.0) $ 32.4 Three Months Ended June 30, 2020 Gross premiums written $ 140.2 $ — $ — $ 140.2 Net premiums written 139.0 — — 139.0 Net premiums earned 151.4 0.1 — 151.5 Net investment income 18.8 0.9 0.2 19.9 Net realized and unrealized gains on investments 38.2 1.3 0.2 39.7 Other income 0.3 — — 0.3 Total revenues 208.7 2.3 0.4 211.4 Losses and loss adjustment expenses 75.6 — (2.5) 73.1 Commission expense 19.2 — — 19.2 Underwriting and general and administrative expenses 38.4 4.3 2.1 44.8 Total expenses 133.2 4.3 (0.4) 137.1 Net income (loss) before income taxes $ 75.5 $ (2.0) $ 0.8 $ 74.3 Employers Cerity Corporate and Other Total (in millions) Six Months Ended June 30, 2021 Gross premiums written $ 294.8 $ 0.6 $ — $ 295.4 Net premiums written 292.3 0.6 — 292.9 Net premiums earned 270.7 0.2 — 270.9 Net investment income 35.1 1.4 0.1 36.6 Net realized and unrealized gains on investments 26.6 0.3 — 26.9 Other income 0.6 — — 0.6 Total revenues 333.0 1.9 0.1 335.0 Losses and loss adjustment expenses 157.3 0.1 (4.1) 153.3 Commission expense 34.8 — — 34.8 Underwriting and general and administrative expenses 68.8 6.4 8.4 83.6 Interest and financing expenses — — 0.3 0.3 Other expenses 3.0 — — 3.0 Total expenses 263.9 6.5 4.6 275.0 Net income (loss) before income taxes $ 69.1 $ (4.6) $ (4.5) $ 60.0 Six Months Ended June 30, 2020 Gross premiums written $ 324.9 $ — $ — $ 324.9 Net premiums written 322.4 — — 322.4 Net premiums earned 319.3 0.1 — 319.4 Net investment income 37.4 1.7 0.7 39.8 Net realized and unrealized losses on investments (19.1) (0.4) (1.9) (21.4) Other income 0.6 — — 0.6 Total revenues 338.2 1.4 (1.2) 338.4 Losses and loss adjustment expenses 182.3 — (4.9) 177.4 Commission expense 40.5 — — 40.5 Underwriting and general and administrative expenses 77.6 8.1 5.8 91.5 Total expenses 300.4 8.1 0.9 309.4 Net income (loss) before income taxes $ 37.8 $ (6.7) $ (2.1) $ 29.0 |
Revenue from External Customers by Geographic Areas [Table Text Block] | June 30, 2021 December 31, 2020 June 30, 2020 December 31, 2019 State In-force Premiums Policies In-force Premiums Policies In-force Policies In-force Policies (dollars in millions) California $ 251.9 39,656 $ 262.0 39,610 $ 292.9 42,705 $ 329.8 43,079 Florida 39.1 7,633 37.9 6,898 37.1 6,406 36.3 5,822 New York 25.2 7,033 26.7 6,657 30.1 6,753 31.7 5,679 Other (43 states and D.C.) 242.9 52,992 251.3 50,341 263.3 48,710 266.8 44,104 Total $ 559.1 107,314 $ 577.9 103,506 $ 623.4 104,574 $ 664.6 98,684 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Reportable Segments | 2 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total investments at fair value | $ 2,675.6 | $ 2,714.3 |
Total Investments at fair value, estimated fair value | 2,675.6 | 2,714.3 |
Cash and cash equivalents | 107.6 | 160.4 |
Cash and cash equivalents, estimated fair value | 107.6 | 160.4 |
Restricted cash and cash equivalents | 0.2 | 0.2 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted cash and cash equivalents | $ 0.2 | $ 0.2 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments, Fair Value Inputs (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | $ 2,418.3 | $ 2,479.2 |
Equity Securities, FV-NI | 257 | 208.5 |
Short-term investments at fair value (amortized cost $0.3 at June 30, 2021 and $26.5 at December 31, 2020) | 0.3 | 26.6 |
Investments | 2,728.1 | 2,757.2 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities, FV-NI | 257 | 208.5 |
Short-term investments at fair value (amortized cost $0.3 at June 30, 2021 and $26.5 at December 31, 2020) | 0 | 4 |
Investments | 257 | 212.5 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities, FV-NI | 0 | 0 |
Short-term investments at fair value (amortized cost $0.3 at June 30, 2021 and $26.5 at December 31, 2020) | 0.3 | 22.6 |
Investments | 2,418.6 | 2,501.8 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities, FV-NI | 0 | 0 |
Short-term investments at fair value (amortized cost $0.3 at June 30, 2021 and $26.5 at December 31, 2020) | 0 | 0 |
Investments | 0 | 0 |
Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 2,418.3 | 2,479.2 |
Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 69.5 | 78.3 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 69.5 | 78.3 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
US Government Agencies Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 3 | 3.1 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 3 | 3.1 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 427.3 | 482.7 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 427.3 | 482.7 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 1,119.7 | 1,046.4 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 1,119.7 | 1,046.4 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
Residential Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 384.9 | 461 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 384.9 | 461 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
Commercial Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 92.2 | 102.4 |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 92.2 | 102.4 |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 48 | 42.6 |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 48 | 42.6 |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
Foreign Government Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 12.6 | 8.2 |
Foreign Government Debt | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
Foreign Government Debt | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 12.6 | 8.2 |
Foreign Government Debt | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
Collateralized Loan Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 85.4 | 83.6 |
Collateralized Loan Obligations [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
Collateralized Loan Obligations [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 85.4 | 83.6 |
Collateralized Loan Obligations [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
Other Debt Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 175.7 | 170.9 |
Other Debt Obligations [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
Other Debt Obligations [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 175.7 | 170.9 |
Other Debt Obligations [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, fair value | 0 | 0 |
Industrial and Miscellaneous [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities, FV-NI | 226.3 | 179.1 |
Industrial and Miscellaneous [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities, FV-NI | 226.3 | 179.1 |
Industrial and Miscellaneous [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities, FV-NI | 0 | 0 |
Industrial and Miscellaneous [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities, FV-NI | 0 | 0 |
Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities, FV-NI | 30.7 | 29.4 |
Other [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities, FV-NI | 30.7 | 29.4 |
Other [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities, FV-NI | 0 | 0 |
Other [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities, FV-NI | $ 0 | $ 0 |
Valuation of Financial Instru_3
Valuation of Financial Instruments Investments at NAV (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Investments at NAV [Abstract] | ||
Fair value investments entities that calculate net asset value per share liquidating investment original expected lives increments | 1 year | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | $ 54.4 | |
Cash Equivalents Measured at Net Asset Value | 75.6 | $ 58.7 |
Other invested assets at NAV | $ 25.8 | $ 16.2 |
Maximum [Member] | ||
Investments at NAV [Abstract] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 12 years | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 12 years | |
Minimum [Member] | ||
Investments at NAV [Abstract] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 10 years | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Liquidating Investment, Remaining Period | 10 years |
Investments Available for Sale
Investments Available for Sale Securities (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt securities, available-for-sale, amortized cost | $ 2,307.2 | $ 2,333.6 | ||||
Debt securities, available-for-sale, gross unrealized gain | 115.6 | 147.9 | ||||
Debt securities, available-for-sale, gross unrealized loss | (4.5) | (2.3) | ||||
Fixed maturity securities, fair value | 2,418.3 | 2,479.2 | ||||
Total AFS, amortized cost | 2,307.5 | 2,360.1 | ||||
Total AFS, gross unrealized gain | 115.6 | 148 | ||||
Total AFS, gross unrealized loss | 4.5 | 2.3 | ||||
Short-term investments at fair value (amortized cost $0.3 at June 30, 2021 and $26.5 at December 31, 2020) | 0.3 | 26.6 | ||||
Total AFS investments | 2,418.6 | 2,505.8 | ||||
Other invested assets (cost $45.8 at June 30, 2021 and $36.8 at December 31, 2020) | 45.8 | 36.2 | ||||
Other invested assets at NAV | 25.8 | 16.2 | ||||
Investment Owned, at Cost | 25.8 | 16.8 | ||||
Real Estate Investments, Unconsolidated Real Estate and Other Joint Ventures | 20 | 20 | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0.1 | $ 0.2 | 0.7 | $ 1.2 | $ 10.7 | $ 0 |
US Treasury Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt securities, available-for-sale, amortized cost | 67.1 | 74.3 | ||||
Debt securities, available-for-sale, gross unrealized gain | 2.4 | 4 | ||||
Debt securities, available-for-sale, gross unrealized loss | 0 | 0 | ||||
Fixed maturity securities, fair value | 69.5 | 78.3 | ||||
US Government Agencies Debt Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt securities, available-for-sale, amortized cost | 2.8 | 2.8 | ||||
Debt securities, available-for-sale, gross unrealized gain | 0.2 | 0.3 | ||||
Debt securities, available-for-sale, gross unrealized loss | 0 | 0 | ||||
Fixed maturity securities, fair value | 3 | 3.1 | ||||
US States and Political Subdivisions Debt Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt securities, available-for-sale, amortized cost | 399.6 | 449.4 | ||||
Debt securities, available-for-sale, gross unrealized gain | 27.7 | 33.3 | ||||
Debt securities, available-for-sale, gross unrealized loss | 0 | 0 | ||||
Fixed maturity securities, fair value | 427.3 | 482.7 | ||||
Corporate Debt Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt securities, available-for-sale, amortized cost | 1,053.9 | 963.5 | ||||
Debt securities, available-for-sale, gross unrealized gain | 66.6 | 83.2 | ||||
Debt securities, available-for-sale, gross unrealized loss | (0.8) | (0.3) | ||||
Fixed maturity securities, fair value | 1,119.7 | 1,046.4 | ||||
Residential Mortgage Backed Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt securities, available-for-sale, amortized cost | 377.3 | 444.6 | ||||
Debt securities, available-for-sale, gross unrealized gain | 10.1 | 16.7 | ||||
Debt securities, available-for-sale, gross unrealized loss | (2.5) | (0.3) | ||||
Fixed maturity securities, fair value | 384.9 | 461 | ||||
Commercial Mortgage Backed Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt securities, available-for-sale, amortized cost | 86.3 | 94.7 | ||||
Debt securities, available-for-sale, gross unrealized gain | 6 | 7.8 | ||||
Debt securities, available-for-sale, gross unrealized loss | (0.1) | (0.1) | ||||
Fixed maturity securities, fair value | 92.2 | 102.4 | ||||
Asset-backed Securities [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt securities, available-for-sale, amortized cost | 47.3 | 42 | ||||
Debt securities, available-for-sale, gross unrealized gain | 1 | 0.9 | ||||
Debt securities, available-for-sale, gross unrealized loss | (0.3) | (0.3) | ||||
Fixed maturity securities, fair value | 48 | 42.6 | ||||
Foreign Government Debt | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt securities, available-for-sale, amortized cost | 12.8 | 8 | ||||
Debt securities, available-for-sale, gross unrealized gain | 0 | 0.2 | ||||
Debt securities, available-for-sale, gross unrealized loss | (0.2) | 0 | ||||
Fixed maturity securities, fair value | 12.6 | 8.2 | ||||
Collateralized Loan Obligations [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt securities, available-for-sale, amortized cost | 85.4 | 84.4 | ||||
Debt securities, available-for-sale, gross unrealized gain | 0.1 | 0 | ||||
Debt securities, available-for-sale, gross unrealized loss | (0.1) | (0.8) | ||||
Fixed maturity securities, fair value | 85.4 | 83.6 | ||||
Other Debt Obligations [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Debt securities, available-for-sale, amortized cost | 174.7 | 169.9 | ||||
Debt securities, available-for-sale, gross unrealized gain | 1.5 | 1.5 | ||||
Debt securities, available-for-sale, gross unrealized loss | (0.5) | (0.5) | ||||
Fixed maturity securities, fair value | 175.7 | 170.9 | ||||
Short-term Investments [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Total AFS, amortized cost | 0.3 | 26.5 | ||||
Total AFS, gross unrealized gain | 0 | 0.1 | ||||
Total AFS, gross unrealized loss | $ 0 | $ 0 |
Investments Equity Securities (
Investments Equity Securities (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of Equity Securities and Other [Line Items] | ||
Equity Securities, FV-NI, Cost | $ 153.9 | $ 112.4 |
Equity Securities, FV-NI | 257 | 208.5 |
Industrial and Miscellaneous [Member] | ||
Schedule of Equity Securities and Other [Line Items] | ||
Equity Securities, FV-NI, Cost | 135.3 | 94.1 |
Equity Securities, FV-NI | 226.3 | 179.1 |
Other [Member] | ||
Schedule of Equity Securities and Other [Line Items] | ||
Equity Securities, FV-NI, Cost | 18.6 | 18.3 |
Equity Securities, FV-NI | $ 30.7 | $ 29.4 |
Investments Other Invested Asse
Investments Other Invested Assets (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Other Invest Assets [Abstract] | ||
Other invested assets at NAV | $ 25.8 | $ 16.2 |
Investment Owned, at Cost | 25.8 | 16.8 |
Total other invested assets | 45.8 | 36.2 |
Real Estate Investments, Unconsolidated Real Estate and Other Joint Ventures | $ 20 | $ 20 |
Investments, Amortized Cost and
Investments, Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due in one year or less, amortized cost | $ 98.3 | |
Due after one year through five years, amortized cost | 706.9 | |
Due after five years through ten years, amortized cost | 804.2 | |
Due after ten years, amortized cost | 101.5 | |
Mortgage and asset-backed securities, amortized cost | 596.3 | |
Total, amortized cost | 2,307.2 | $ 2,333.6 |
Estimated Fair Value | ||
Due in one year or less, fair value | 99.3 | |
Due after one year through five years, fair value | 746.7 | |
Due after five years through ten years, fair value | 853.9 | |
Due after ten years, fair value | 107.9 | |
Mortgage and asset-backed securities, fair value | 610.5 | |
Total, fair value | $ 2,418.3 | $ 2,479.2 |
Investments, Continuous Loss Po
Investments, Continuous Loss Position (Details) $ in Millions | Jun. 30, 2021USD ($)sharesshares | Dec. 31, 2020USD ($)shares |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 279.7 | $ 205.4 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 32.9 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (4.3) | (2.3) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ (0.2) | $ 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Debt Securities, number of issues in loss position, less than 12 months | shares | 280 | 199 |
Debt Securities, number of issues in loss position, 12 months or greater | 34 | 0 |
Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 279.7 | $ 205.4 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 32.9 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (4.3) | (2.3) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ (0.2) | $ 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Debt Securities, number of issues in loss position, less than 12 months | shares | 280 | 199 |
Debt Securities, number of issues in loss position, 12 months or greater | shares | 34 | 0 |
Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 46.1 | $ 9.7 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ (0.8) | $ (0.3) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Debt Securities, number of issues in loss position, less than 12 months | shares | 65 | 10 |
Residential Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 140.5 | $ 47.4 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ (2.5) | $ (0.3) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Debt Securities, number of issues in loss position, less than 12 months | shares | 43 | 13 |
Commercial Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 2.6 | $ 5.5 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ (0.1) | $ (0.1) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Debt Securities, number of issues in loss position, less than 12 months | shares | 1 | 6 |
Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 16.5 | $ 7.8 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ (0.3) | $ (0.3) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Debt Securities, number of issues in loss position, less than 12 months | shares | 7 | 6 |
Collateralized Loan Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 0 | $ 74.6 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 24.7 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (0.8) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ (0.1) | $ 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Debt Securities, number of issues in loss position, less than 12 months | shares | 0 | 18 |
Debt Securities, number of issues in loss position, 12 months or greater | shares | 6 | 0 |
Other Debt Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 66.2 | $ 60.4 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 8.2 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (0.4) | (0.5) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ (0.1) | $ 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Debt Securities, number of issues in loss position, less than 12 months | shares | 163 | 146 |
Debt Securities, number of issues in loss position, 12 months or greater | shares | 28 | 0 |
Foreign Government Debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 7.8 | $ 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ (0.2) | $ 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | ||
Debt Securities, number of issues in loss position, less than 12 months | shares | 1 | 0 |
Investments Investments, Net Re
Investments Investments, Net Realized Gains and Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Equity securities: | ||||
Equity Securities, FV-NI, Realized Gain | $ 17.5 | $ 1.7 | $ 18.4 | $ 24.4 |
Equity Securities, FV-NI, Realized Loss | 1.6 | 11.5 | 1.9 | 18.8 |
AFS, change in unrealized gains (losses) | ||||
AFS, change unrealized gains (losses) on fixed maturity and equity securities reflected in AOCI | 11.1 | 80.2 | (34.6) | 50.3 |
AFS, net realized gains (losses) | ||||
Net realized and unrealized (losses) gains on investments | 16 | 39.7 | 26.9 | (21.4) |
Total gross realized gains | 19.7 | 2.3 | 21.3 | 29.1 |
Investments, Gross Realized Losses | (1.9) | (14.1) | (2.6) | (21.7) |
Total change in net unrealized gains (losses) | 9.2 | 122.2 | (27) | 22.7 |
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||||
Equity Securities, FV-NI, Unrealized Gain (Loss) | (1.8) | 42.3 | 7 | (26.9) |
Proceeds from sale of fixed maturity securities | 84.2 | 29.6 | 158.2 | 249.8 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Period Increase (Decrease) | 0.1 | 9.5 | 0.6 | (1.2) |
Debt Securities [Member] | ||||
AFS, change in unrealized gains (losses) | ||||
AFS, change unrealized gains (losses) on fixed maturity and equity securities reflected in AOCI | 11.1 | 79.8 | (34.5) | 49.9 |
AFS, net realized gains (losses) | ||||
AFS, Gross gains from sales | 2.2 | 0.6 | 2.9 | 4.7 |
AFS, Gross losses from sales | (0.3) | (2.6) | (0.7) | (2.9) |
Net realized and unrealized (losses) gains on investments | 2 | 7.5 | 2.8 | 0.6 |
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Period Increase (Decrease) | 0.1 | 9.5 | 0.6 | (1.2) |
Equity Securities [Member] | ||||
AFS, change in unrealized gains (losses) | ||||
AFS, change unrealized gains (losses) on fixed maturity and equity securities reflected in AOCI | 0 | 0 | 0 | 0 |
AFS, net realized gains (losses) | ||||
Net realized and unrealized (losses) gains on investments | 14.1 | 32.5 | 23.5 | (21.3) |
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Period Increase (Decrease) | 0 | 0 | 0 | 0 |
Other Investments [Member] | ||||
AFS, change in unrealized gains (losses) | ||||
AFS, change unrealized gains (losses) on fixed maturity and equity securities reflected in AOCI | 0 | 0 | 0 | 0 |
AFS, net realized gains (losses) | ||||
Net realized and unrealized (losses) gains on investments | (0.1) | (0.3) | 0.6 | (0.7) |
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||||
Trading Securities, Realized Gain | 0 | 0 | 0 | 0 |
Trading Securities, Realized Loss | 0 | 0 | 0 | 0 |
Trading Securities, Change in Unrealized Holding Gain (Loss) | (0.1) | (0.3) | 0.6 | (0.7) |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Period Increase (Decrease) | $ 0 | 0 | 0 | 0 |
Short-term investments at fair value (amortized cost $0.3 at June 30, 2021 and $26.5 at December 31, 2020) | ||||
AFS, change in unrealized gains (losses) | ||||
AFS, change unrealized gains (losses) on fixed maturity and equity securities reflected in AOCI | 0.4 | (0.1) | 0.4 | |
AFS, net realized gains (losses) | ||||
Net realized and unrealized (losses) gains on investments | 0 | 0 | 0 | |
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract] | ||||
Trading Securities, Realized Gain | 0 | 0 | 0 | |
Trading Securities, Realized Loss | 0 | 0 | 0 | |
Trading Securities, Change in Unrealized Holding Gain (Loss) | 0.4 | (0.1) | 0.4 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Period Increase (Decrease) | $ 0 | $ 0 | $ 0 |
Net Investment Income (Details)
Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 19.7 | $ 21 | $ 39.2 | $ 42.5 |
Investment expenses | 1.5 | 1.1 | 2.6 | 2.7 |
Net investment income | 18.2 | 19.9 | 36.6 | 39.8 |
Debt Securities [Member] | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income | 18.5 | 18.7 | 36.7 | 38 |
Equity Securities [Member] | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income | 0.9 | 1.1 | 1.8 | 2.4 |
Other Investments [Member] | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income | 0.3 | 0.7 | 0.5 | 1.3 |
Short-term Investments [Member] | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income | 0 | 0.3 | 0.2 | 0.4 |
Cash and Cash Equivalents [Member] | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Investment income | $ 0 | $ 0.2 | $ 0 | $ 0.4 |
Investments Investments, Held i
Investments Investments, Held in Trust or on Deposit (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Other invested assets (cost $45.8 at June 30, 2021 and $36.8 at December 31, 2020) | $ 45.8 | $ 36.2 |
Deposit Assets [Abstract] | ||
Investments | 2,728.1 | 2,757.2 |
Assets Held-in-trust [Abstract] | ||
Funds Held under Reinsurance Agreements, Asset | 3.1 | 3.2 |
Federal Home Loan Bank [Member] | ||
Deposit Assets [Abstract] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 130 | 275 |
Required by various state laws and regulations to hold securities or letters of credit in depository account [Member] | ||
Deposit Assets [Abstract] | ||
Investments | $ 929.2 | $ 768.7 |
Current Expected Credit Losse_2
Current Expected Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Current Expected Credit Losses [Abstract] | ||||||||
Premium Receivable, Allowance for Credit Loss | $ 11.6 | $ 8.1 | $ 11.6 | $ 8.1 | $ 12.2 | $ 10.8 | $ 3.9 | $ 4.6 |
Premium Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 1.9 | 4.3 | 5.2 | 8.3 | ||||
Premium Receivable, Allowance for Credit Loss, Writeoff | 0.1 | 0.1 | 0.2 | 4.8 | ||||
Premium Receivable, Allowance for Credit Loss, Recovery | 2.4 | 0 | 4.2 | 0 | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0.1 | 1.2 | 0.1 | 1.2 | 0.2 | 0.7 | 10.7 | 0 |
Reinsurance recoverables on unpaid losses, allowance | 0.6 | 0.4 | 0.6 | 0.4 | $ 0.4 | 0.4 | $ 0.4 | $ 0 |
Reinsurance Recoverable, Allowance for Credit Loss, Period Increase (Decrease) | 0.2 | 0 | 0.2 | 0.4 | ||||
Accrued investment income | 15.5 | 15.5 | $ 15.3 | |||||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Securities Sold | 0 | (2.1) | (0.2) | (2.1) | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Recovery | (0.1) | 0 | (0.4) | 0 | ||||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Writeoff | $ 0 | $ (7.4) | $ 0 | $ 3.3 |
Property and Equipment Property
Property and Equipment Property and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Property and Equipment [Line Items] | ||||
Property and equipment, gross | $ 60.8 | $ 60.8 | $ 63 | |
Accumulated depreciation, depletion and amortization, property and equipment | (44.2) | (44.2) | (43.9) | |
Property and equipment, net | 16.6 | 16.6 | 19.1 | |
Utilities operating expense, depreciation and amortization | 1.9 | 3.8 | 8.2 | |
Payments to develop software | 0.7 | 1.2 | 3.2 | |
Cloud computing arrangements | 49 | 49 | 50.2 | |
Amortization of cloud computing arrangements | 3.1 | 6.2 | $ 3.4 | 9 |
Furniture and equipment | ||||
Property and Equipment [Line Items] | ||||
Property and equipment, gross | 3.2 | 3.2 | 3.4 | |
Leasehold improvements | ||||
Property and Equipment [Line Items] | ||||
Property and equipment, gross | 5.5 | 5.5 | 5.5 | |
Computer and software | ||||
Property and Equipment [Line Items] | ||||
Property and equipment, gross | 51.3 | 51.3 | 53.3 | |
Automobiles | ||||
Property and Equipment [Line Items] | ||||
Property and equipment, gross | $ 0.8 | $ 0.8 | $ 0.8 |
Property and Equipment Leases (
Property and Equipment Leases (Details) | Jun. 30, 2021 |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, remaining lease term | 1 year |
Lessee, Finance Lease, Term of Contract | 1 year |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, remaining lease term | 8 years |
Lessee, operating lease, renewal term | 9 years |
Property and Equipment Leases,
Property and Equipment Leases, Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Components of Lease Expense [Abstract] | ||||
Operating lease expense | $ 0.9 | $ 1.1 | $ 2.1 | $ 2.4 |
Finance lease expense | 0 | 0 | 0.1 | 0.1 |
Total lease expense | $ 0.9 | $ 1.1 | $ 2.2 | $ 2.5 |
Property and Equipment Leases_2
Property and Equipment Leases, Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Lessee, operating lease liabilities due | ||
Operating lease liabilities due next twelve months | $ 2 | |
Operating lease liabilities due year two | 3.3 | |
Operating lease liabilities due year three | 3.3 | |
Operating lease liabilities due year four | 3.2 | |
Operating lease liabilities due year five | 3.1 | |
Operating lease liabilities due after year five | 4.7 | |
Operating lease liabilities due | 19.6 | |
Less: inputed interest, Operating lease liability | (1.2) | |
Operating lease liability | $ 18.4 | $ 19.9 |
Operating lease, weighted average remaining lease term | 5 years 9 months 18 days | |
Operating lease, weighted average discount rate, percent | 2.20% | |
Lessee, finance lease liabilities due | ||
Finance lease liabilities due next twelve months | $ 0.1 | |
Finance lease liabilities due year two | 0.1 | |
Finance lease liabilities due year three | 0.2 | |
Finance lease liabilities due year four | 0.1 | |
Finance lease liabilities due year five | 0.1 | |
Finance lease liabilities due after year five | 0 | |
Finance lease liabilities due | 0.6 | |
Less: inputed interest, finance lease | 0 | |
Finance lease, liability | $ 0.6 | $ 0.4 |
Finance lease, weighted average remaining lease term | 4 years 1 month 6 days | |
Finance lease, weighted average discount rate, percent | 7.70% |
Property and Equipment Leases_3
Property and Equipment Leases, Supplement Balance Sheet Information (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | ||
Operating lease right-of-use assets | $ 15.8 | $ 17.4 |
Operating lease liability | 18.4 | 19.9 |
Property and equipment, gross | 60.8 | 63 |
Accumulated depreciation, depletion and amortization, property and equipment | (44.2) | (43.9) |
Property and equipment, net | 16.6 | 19.1 |
Other liabilities | 73.5 | 70.5 |
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, before Accumulated Depreciation and Amortization | 0.8 | 0.8 |
Finance Lease, Right-of-Use Asset, Accumulated Amortization | 0.2 | 0.5 |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | 0.6 | 0.3 |
Finance lease, liability | $ 0.6 | $ 0.4 |
Property and Equipment Leases_4
Property and Equipment Leases, Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Leases, Supplement Balance Sheet Information [Abstract] | ||
Operating cash flows from operating leases | $ 1.9 | $ 2.4 |
Financing cash flows from finance leases | $ 0.1 | $ 0.1 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ||||
Effective tax rate | 18.50% | 19.80% | 17.50% | 14.80% |
Liability for Unpaid Losses a_3
Liability for Unpaid Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Unpaid losses and LAE at beginning of period | $ 2,034.1 | $ 2,191.7 | $ 2,069.4 | $ 2,192.8 |
Less reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE | 492.3 | 527 | 497 | 532.5 |
Net unpaid losses and LAE at beginning of period | 1,541.8 | 1,664.7 | 1,572.4 | 1,660.3 |
Losses and LAE, net of reinsurance, incurred during the period related to: | ||||
Current period | 87.3 | 99.2 | 172.9 | 209.4 |
Prior periods | (1.6) | (23.6) | (15.5) | (27.1) |
Total net losses and LAE incurred during the period | 85.7 | 75.6 | 157.4 | 182.3 |
Deduct payments for losses and LAE, net of reinsurance, related to: | ||||
Current period | 15.9 | 17.1 | 20.6 | 24 |
Prior periods | 87.5 | 76.1 | 185.1 | 171.5 |
Total net paid losses and LAE during the period | 103.4 | 93.2 | 205.7 | 195.5 |
Ending unpaid losses and LAE, net of reinsurance | 1,524.1 | 1,647.1 | 1,524.1 | 1,647.1 |
Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE | 483.5 | 523.6 | 483.5 | 523.6 |
Unpaid losses and LAE at end of period | 2,007.6 | 2,170.7 | 2,007.6 | 2,170.7 |
Impact of the LPT Agreement | 2 | 2.5 | 4.1 | 4.9 |
Short-Duration Insurance Contract, Accident Year 2020 | ||||
Losses and LAE, net of reinsurance, incurred during the period related to: | ||||
Prior periods | 8 | |||
Short-duration Insurance Contracts, Accident Year 2017 | ||||
Losses and LAE, net of reinsurance, incurred during the period related to: | ||||
Prior periods | (9.6) | |||
Involuntary Assigned Risk Business [Member] | ||||
Losses and LAE, net of reinsurance, incurred during the period related to: | ||||
Prior periods | (0.1) | (0.5) | (0.6) | |
Voluntary Risk Business [Member] | ||||
Losses and LAE, net of reinsurance, incurred during the period related to: | ||||
Prior periods | $ (1.6) | $ (23.5) | $ (15) | $ (26.5) |
LPT Agreement (Details)
LPT Agreement (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Reinsurance Agreement [Line Items] | |||||
Liabilities for the incurred but unpaid losses and LAE related to claims prior to July 1, 1995 | $ 1,500 | $ 1,500 | |||
Ceded premiums written | 775 | ||||
Amortization of deferred gain | 2 | $ 2.5 | 4.1 | $ 4.9 | |
Net income | 26.4 | 59.6 | 49.5 | 24.7 | |
Deferred reinsurance gain—LPT Agreement | 121.3 | 121.3 | $ 125.4 | ||
Estimated remaining liabilities - LPT Agreement | 343.7 | 343.7 | 353.5 | ||
Paid losses and LAE claims related to LPT | 828.7 | 828.7 | $ 818.9 | ||
Impact of the LPT Agreement | 2 | $ 2.5 | 4.1 | $ 4.9 | |
Indemnification Agreement [Member] | |||||
Reinsurance Agreement [Line Items] | |||||
Coverage provided under LPT Agreement | $ 2,000 | $ 2,000 |
Notes Payable Letters of Credit
Notes Payable Letters of Credit (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Letters of Credit Facilities [Line Items] | ||||||
Letters of credit, unused capacity, commitment fee percentage | 15.00% | |||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 0 | $ 0 | $ 20,000 | |||
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available | 10,000 | 10,000 | ||||
Line of Credit Facility, Current Borrowing Capacity | 75,000 | $ 75,000 | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.30% | |||||
Repayments on line of credit | 15,000 | $ 27,000 | $ 0 | |||
Interest and financing expenses | 200 | $ 0 | 300 | 0 | ||
Line of Credit Facility, Commitment Fee Amount | 25 | |||||
Debt Issuance Costs, Gross | 700 | $ 700 | ||||
Debt Instrument, Covenant Description | a minimum consolidated net worth of no less than 70% of the Company’s stockholders’ equity as of September 30, 2020, plus 50% of the Company’s aggregate net income thereafter | |||||
Line of Credit Facility, Covenant Terms | a debt to total capitalization ratio of no more than 35%, in each case as determined in accordance with the Credit Agreement | |||||
Proceeds from FHLBank Advance, Investing Activities | 35,000 | |||||
Repayments of FHLBank Advance, Investing Activities | 15,000 | $ 5,000 | $ 20,000 | 0 | 15,000 | |
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | 0 | ||||
Proceeds from Lines of Credit | 15,000 | 27,000 | $ 0 | |||
Line of Credit Facility, Periodic Payment, Interest | 100 | 200 | ||||
Maximum [Member] | ||||||
Letters of Credit Facilities [Line Items] | ||||||
Line of Credit Facility, Current Borrowing Capacity | $ 125,000 | $ 125,000 | ||||
Line of Credit Facility, Interest Rate at Period End | 1.25% | 1.25% | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | 2.25% | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.50% | |||||
Line of Credit Facility, Commitment Fee Amount | $ 225 | |||||
Minimum [Member] | ||||||
Letters of Credit Facilities [Line Items] | ||||||
Line of Credit Facility, Interest Rate at Period End | 0.25% | 0.25% | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | 1.25% | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.20% | |||||
Federal Home Loan Bank [Member] | ||||||
Letters of Credit Facilities [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 130,000 | $ 130,000 | 275,000 | |||
Letters of credit collateral amount | 315,000 | 315,000 | $ 385,600 | |||
Federal Home Loan Bank [Member] | EAC | ||||||
Letters of Credit Facilities [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 50,000 | 50,000 | ||||
Federal Home Loan Bank [Member] | ECIC | ||||||
Letters of Credit Facilities [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 70,000 | 70,000 | ||||
Federal Home Loan Bank [Member] | EPIC | ||||||
Letters of Credit Facilities [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10,000 | $ 10,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Accumulated Other Comprehensive Income [Abstract] | ||
Net unrealized gains on investments, before taxes | $ 111.1 | $ 145.7 |
Deferred tax expense on net unrealized gains | (23.3) | (30.6) |
Total accumulated other comprehensive income | $ 87.8 | $ 115.1 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-options exercised | 48,051 | 38,500 | 40,800 | |
Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of outstanding options or share units | 65,165 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation award, shares issued | [1] | 15,093 | ||
Share-based compensation options, exercise price on grant date | [1] | $ 40.75 | ||
Fair value of awards awarded on grant date | [1] | $ 0.6 | ||
Number of outstanding options or share units | 199,178 | |||
Restricted Stock Units (RSUs) [Member] | Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation award, shares issued | [2] | 66,560 | ||
Share-based compensation options, exercise price on grant date | [2] | $ 37.54 | ||
Fair value of awards awarded on grant date | [2] | $ 2.5 | ||
Vesting rights for RSUs awarded | vest 25% on March 15, 2022, and each of the subsequent three anniversaries of that date | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation award, shares issued | [3] | 980 | ||
Share-based compensation options, exercise price on grant date | [3] | $ 43.29 | ||
Fair value of awards awarded on grant date | [3] | $ 0 | ||
Number of outstanding options or share units | 183,981 | |||
Performance Shares [Member] | Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation award, shares issued | [3] | 77,320 | ||
Share-based compensation options, exercise price on grant date | [3] | $ 37.54 | ||
Fair value of awards awarded on grant date | [3] | $ 2.9 | ||
Performance share awards performance period | two years | |||
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year | |||
Performance share awards, minimum payout | 0.00% | |||
Performance share awards, maximum payout | 200.00% | |||
[1] | The RSUs awarded in May 2021 were awarded to non-employee Directors of the Company and vest in full on May 27, 2022. | |||
[2] | The RSUs awarded in March 2021 were awarded to certain employees of the Company and vest 25% on March 15, 2022, and each of the subsequent three anniversaries of that date. The RSUs are subject to accelerated vesting in certain circumstances, including but not limited to: death, disability, retirement, or in connection with a change of control of the Company. | |||
[3] | The PSUs awarded in March 2021 and April 2021 were awarded to certain employees of the Company and have a performance period of two years followed by an additional one year vesting period. The PSU awards are subject to certain performance goals with payouts that range from 0% to 200% of the target awards. The value shown in the table represents the aggregate number of PSUs awarded at the target level. (3) The RSUs awarded in May 2021 were awarded to non-employee Directors of the Company and vest in full on May 27, 2022. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Net income available to stockholders - basic and diluted | $ 26.4 | $ 59.6 | $ 49.5 | $ 24.7 |
Weighted average number of shares outstanding - basic | 28,478,788 | 30,043,900 | 28,497,654 | 30,697,975 |
Effect of dilutive securities: | ||||
Dilutive securities | 330,553 | 185,653 | 391,081 | 322,153 |
Weighted average number of shares outstanding - diluted | 28,809,341 | 30,229,553 | 28,888,735 | 31,020,128 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 168,390 | 0 | 84,195 |
Performance Shares [Member] | ||||
Effect of dilutive securities: | ||||
Dilutive securities | 242,861 | 144,710 | 293,738 | 238,258 |
Stock Option [Member] | ||||
Effect of dilutive securities: | ||||
Dilutive securities | 26,819 | 25,524 | 30,675 | 45,031 |
Restricted Stock Units (RSUs) [Member] | ||||
Effect of dilutive securities: | ||||
Dilutive securities | 60,873 | 15,419 | 66,668 | 38,864 |
Segment Reporting Segment Net I
Segment Reporting Segment Net Income Before Taxes (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of Reportable Segments | 2 | |||
Premiums Written, Gross | $ 147.1 | $ 140.2 | $ 295.4 | $ 324.9 |
Premiums Written, Net | 146 | 139 | 292.9 | 322.4 |
Net premiums earned | 137 | 151.5 | 270.9 | 319.4 |
Net investment income | 18.2 | 19.9 | 36.6 | 39.8 |
Net realized and unrealized (losses) gains on investments | 16 | 39.7 | 26.9 | (21.4) |
Other income | 0.2 | 0.3 | 0.6 | 0.6 |
Revenues | 171.4 | 211.4 | 335 | 338.4 |
Losses and loss adjustment expenses | 83.7 | 73.1 | 153.3 | 177.4 |
Commission expense | 18 | 19.2 | 34.8 | 40.5 |
Underwriting and general and administrative expenses | 37 | 44.8 | 83.6 | 91.5 |
Interest and financing expenses | 0.2 | 0 | 0.3 | 0 |
Other Expenses | 0.1 | 0 | 3 | 0 |
Operating Expenses | 139 | 137.1 | 275 | 309.4 |
Net (loss) income before income taxes | 32.4 | 74.3 | 60 | 29 |
Employers Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Premiums Written, Gross | 146.8 | 140.2 | 294.8 | 324.9 |
Premiums Written, Net | 145.7 | 139 | 292.3 | 322.4 |
Net premiums earned | 136.8 | 151.4 | 270.7 | 319.3 |
Net investment income | 17.4 | 18.8 | 35.1 | 37.4 |
Net realized and unrealized (losses) gains on investments | 15.8 | 38.2 | 26.6 | (19.1) |
Other income | 0.2 | 0.3 | 0.6 | 0.6 |
Revenues | 170.2 | 208.7 | 333 | 338.2 |
Losses and loss adjustment expenses | 85.6 | 75.6 | 157.3 | 182.3 |
Commission expense | 18 | 19.2 | 34.8 | 40.5 |
Underwriting and general and administrative expenses | 31.5 | 38.4 | 68.8 | 77.6 |
Interest and financing expenses | 0 | 0 | ||
Other Expenses | 0.1 | 3 | ||
Operating Expenses | 135.2 | 133.2 | 263.9 | 300.4 |
Net (loss) income before income taxes | 35 | 75.5 | 69.1 | 37.8 |
Cerity Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Premiums Written, Gross | 0.3 | 0 | 0.6 | 0 |
Premiums Written, Net | 0.3 | 0 | 0.6 | 0 |
Net premiums earned | 0.2 | 0.1 | 0.2 | 0.1 |
Net investment income | 0.7 | 0.9 | 1.4 | 1.7 |
Net realized and unrealized (losses) gains on investments | 0.2 | 1.3 | 0.3 | (0.4) |
Other income | 0 | 0 | 0 | 0 |
Revenues | 1.1 | 2.3 | 1.9 | 1.4 |
Losses and loss adjustment expenses | 0.1 | 0 | 0.1 | 0 |
Commission expense | 0 | 0 | 0 | 0 |
Underwriting and general and administrative expenses | 2.6 | 4.3 | 6.4 | 8.1 |
Interest and financing expenses | 0 | 0 | ||
Other Expenses | 0 | 0 | ||
Operating Expenses | 2.7 | 4.3 | 6.5 | 8.1 |
Net (loss) income before income taxes | (1.6) | (2) | (4.6) | (6.7) |
Corporate Segment | ||||
Segment Reporting Information [Line Items] | ||||
Premiums Written, Gross | 0 | 0 | 0 | 0 |
Premiums Written, Net | 0 | 0 | 0 | 0 |
Net premiums earned | 0 | 0 | 0 | 0 |
Net investment income | 0.1 | 0.2 | 0.1 | 0.7 |
Net realized and unrealized (losses) gains on investments | 0 | 0.2 | 0 | (1.9) |
Other income | 0 | 0 | 0 | 0 |
Revenues | 0.1 | 0.4 | 0.1 | (1.2) |
Losses and loss adjustment expenses | (2) | (2.5) | (4.1) | (4.9) |
Commission expense | 0 | 0 | 0 | 0 |
Underwriting and general and administrative expenses | 2.9 | 2.1 | 8.4 | 5.8 |
Interest and financing expenses | 0.2 | 0.3 | ||
Other Expenses | 0 | 0 | ||
Operating Expenses | 1.1 | (0.4) | 4.6 | 0.9 |
Net (loss) income before income taxes | $ (1) | $ 0.8 | $ (4.5) | $ (2.1) |
Segment Reporting Geographic In
Segment Reporting Geographic Information (Details) $ in Millions | 6 Months Ended | |||
Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Revenue, Major Customer [Line Items] | ||||
Segment Reporting, Disclosure of Major Customers | 10 | |||
CALIFORNIA | ||||
Revenue, Major Customer [Line Items] | ||||
Premiums In Force | $ 251.9 | $ 262 | $ 292.9 | $ 329.8 |
Policies In force | 39,656 | 39,610 | 42,705 | 43,079 |
FLORIDA | ||||
Revenue, Major Customer [Line Items] | ||||
Premiums In Force | $ 39.1 | $ 37.9 | $ 37.1 | $ 36.3 |
Policies In force | 7,633 | 6,898 | 6,406 | 5,822 |
NEW YORK | ||||
Revenue, Major Customer [Line Items] | ||||
Premiums In Force | $ 25.2 | $ 26.7 | $ 30.1 | $ 31.7 |
Policies In force | 7,033 | 6,657 | 6,753 | 5,679 |
AllOtherStates [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Premiums In Force | $ 242.9 | $ 251.3 | $ 263.3 | $ 266.8 |
Policies In force | 52,992 | 50,341 | 48,710 | 44,104 |
UNITED STATES | ||||
Revenue, Major Customer [Line Items] | ||||
Premiums In Force | $ 559.1 | $ 577.9 | $ 623.4 | $ 664.6 |
Policies In force | 107,314 | 103,506 | 104,574 | 98,684 |