Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 31, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-09518 | ||
Entity Registrant Name | PROGRESSIVE CORP/OH/ | ||
Entity Incorporation, State or Country Code | OH | ||
Entity Tax Identification Number | 34-0963169 | ||
Entity Address, Address Line One | 6300 Wilson Mills Road, | ||
Entity Address, City or Town | Mayfield Village, | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 44143 | ||
City Area Code | 440 | ||
Local Phone Number | 461-5000 | ||
Title of 12(b) Security | Common Shares, $1.00 Par Value | ||
Trading Symbol | PGR | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 46,424,173,990 | ||
Entity Common Stock, Shares Outstanding | 585,747,728 | ||
Entity Central Index Key | 0000080661 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Amendment Flag | false | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s Proxy Statement for the Annual Meeting of Shareholders to be held on May 7, 2021, and the Annual Report to Shareholders of The Progressive Corporation and subsidiaries for the year ended December 31, 2020, included as Exhibit 13 to this Form 10-K, are incorporated by reference in Parts I, II, III, and IV hereof. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||
Net premiums earned | $ 39,261.6 | $ 36,192.4 | $ 30,933.3 |
Investment income | 936.6 | 1,042 | 820.5 |
Net realized gains (losses) on securities: | |||
Net realized gains (losses) on security sales | 914.7 | 334.6 | 170.7 |
Net holding period gains (losses) on securities | 715.3 | 757.9 | (507.9) |
Net impairment losses recognized in earnings | 0 | (63.3) | (68.3) |
Total net realized gains (losses) on securities | 1,630 | 1,029.2 | (405.5) |
Fees and other revenues | 603.5 | 563.7 | 472.2 |
Service revenues | 226.4 | 195 | 158.5 |
Total revenues | 42,658.1 | 39,022.3 | 31,979 |
Expenses | |||
Losses and loss adjustment expenses | 25,121.8 | 25,470.5 | 21,721 |
Policy acquisition costs | 3,273.2 | 3,023.2 | 2,573.7 |
Other underwriting expenses | 5,570 | 4,975.1 | 4,195.8 |
Policyholder credit expense | 1,077.4 | 0 | 0 |
Investment expenses | 20 | 24.6 | 24.3 |
Service expenses | 205.5 | 178.9 | 134.1 |
Interest expense | 217 | 189.7 | 166.5 |
Total expenses | 35,484.9 | 33,862 | 28,815.4 |
Net Income | |||
Income before income taxes | 7,173.2 | 5,160.3 | 3,163.6 |
Provision for income taxes | 1,468.6 | 1,180.3 | 542.6 |
Net income | 5,704.6 | 3,980 | 2,621 |
Net income attributable to noncontrolling interest (NCI) | 0 | (9.7) | (5.7) |
Net income attributable to Progressive | 5,704.6 | 3,970.3 | 2,615.3 |
Changes in: | |||
Total net unrealized gains (losses) on fixed-maturity securities | 586.5 | 466.4 | (99.3) |
Net unrealized losses on forecasted transactions | 0.8 | 0.8 | 0.8 |
Other comprehensive income (loss) | 587.3 | 467.2 | (98.5) |
Other comprehensive (income) loss attributable to NCI | 0 | (4.6) | 3.3 |
Comprehensive income attributable to Progressive | 6,291.9 | 4,432.9 | 2,520.1 |
Computation of Earnings Per Common Share | |||
Net income attributable to Progressive | 5,704.6 | 3,970.3 | 2,615.3 |
Less: Preferred share dividends | 26.9 | 26.9 | 21.4 |
Net income available to common shareholders | $ 5,677.7 | $ 3,943.4 | $ 2,593.9 |
Average common shares outstanding - Basic | 584.9 | 583.8 | 582.4 |
Net effect of dilutive stock-based compensation | 2.7 | 3.4 | 4.3 |
Total average equivalent common shares - Diluted | 587.6 | 587.2 | 586.7 |
Basic: Earnings per share (usd per share) | $ 9.71 | $ 6.75 | $ 4.45 |
Diluted: Earnings per share (usd per share) | $ 9.66 | $ 6.72 | $ 4.42 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets | |||
Fixed maturities (amortized cost: $35,589.1 and $32,643.1) | $ 36,810.9 | $ 33,110.3 | |
Short-term investments (amortized cost: $5,218.5 and $1,798.8) | 5,218.5 | 1,798.8 | |
Total available-for-sale securities | 42,029.4 | 34,909.1 | |
Nonredeemable preferred stocks | 1,447.9 | 1,038.9 | |
Common equities | 4,053 | 3,306.3 | |
Total equity securities | 5,500.9 | 4,345.2 | |
Total investments | 47,530.3 | 39,254.3 | |
Cash and cash equivalents | 76.5 | 226.2 | |
Restricted cash | 0 | 1.2 | |
Total cash, cash equivalents, and restricted cash | 76.5 | 227.4 | |
Accrued investment income | 176.4 | 181.3 | |
Premiums receivable, net of allowance for credit losses of $356.2 and $283.2 | 8,160.1 | 7,507.3 | |
Reinsurance recoverables | 4,019.4 | 3,378.9 | |
Prepaid reinsurance premiums | 368.1 | 626.5 | |
Deferred acquisition costs | 1,237.2 | 1,056.5 | |
Property and equipment, net of accumulated depreciation of $1,291.4 and $1,138.1 | 1,106 | 1,213.7 | |
Goodwill | 452.7 | 452.7 | |
Intangible assets, net of accumulated amortization of $326.1 and $314.0 | 171.4 | 228.3 | |
Other assets | 800.2 | 783.6 | |
Total assets | 64,098.3 | 54,910.5 | |
Liabilities | |||
Unearned premiums | 13,437.5 | 12,388.8 | |
Loss and loss adjustment expense reserves | 20,265.8 | 18,105.4 | |
Deferred Tax Liability, Federal Tax | 310 | 118 | |
Dividends payable on common shares | 2,694.5 | 1,375.4 | |
Accounts payable, accrued expenses, and other liabilities1 | [1] | 4,955.8 | 4,617 |
Debt | [2] | 5,396.1 | 4,407.1 |
Total liabilities | 47,059.7 | 41,011.7 | |
Redeemable noncontrolling interest (NCI) | [3] | 0 | 225.6 |
Shareholders’ Equity | |||
Serial Preferred Shares, Series B, no par value (cumulative, liquidation preference of $1,000 per share) (authorized, issued, and outstanding 0.5) | 493.9 | 493.9 | |
Common shares, $1.00 par value (authorized 900.0; issued 797.5, including treasury shares of 212.3 and 212.9) | 585.2 | 584.6 | |
Paid-in capital | 1,672.9 | 1,573.4 | |
Retained earnings | 13,354.9 | 10,679.6 | |
Accumulated other comprehensive income (loss): | |||
Net unrealized gains (losses) on fixed-maturity securities | 947.3 | 360.8 | |
Net unrealized losses on forecasted transactions | (15.6) | (16.4) | |
Accumulated other comprehensive income attributable to NCI | 0 | (2.7) | |
Total accumulated other comprehensive income (loss) attributable to Progressive | 931.7 | 341.7 | |
Total shareholders’ equity | 17,038.6 | 13,673.2 | |
Total liabilities, redeemable NCI, and shareholders’ equity | $ 64,098.3 | $ 54,910.5 | |
[1] | See Note 1 – Reporting and Accounting Policies for Commitments and Contingencies and Note 12 – Litigation | ||
[2] | Consists of both short-term and long-term debt. See Note 4 – Debt for further discussion . | ||
[3] | See Note 15 – Redeemable Noncontrolling Interest for further discussion . |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fixed maturities, amortized cost | $ 35,589.1 | $ 32,643.1 |
Short-term investments, amortized cost | 5,218.5 | 1,798.8 |
Nonredeemable preferred stocks, cost | 1,358.7 | 971.3 |
Equity Securities Common Equities Cost | 1,187.3 | 1,125.5 |
Premium receivable, allowance for credit loss | 356.2 | 283.2 |
Property and equipment, accumulated depreciation | 1,291.4 | 1,138.1 |
Intangible assets, accumulated amortization | $ 326.1 | $ 314 |
Common Shares, par value (USD per share) | $ 1 | $ 1 |
Common Shares, authorized (shares) | 900,000,000 | 900,000,000 |
Common Shares, issued (shares) | 797,500,000 | 797,500,000 |
Common Shares, treasury shares (shares) | 212,300,000 | 212,900,000 |
Serial Preferred Stock | ||
Preferred shares, authorized (in shares) | 20,000,000 | 20,000,000 |
Series B Preferred Stock | Serial Preferred Stock | ||
Preferred shares, authorized (in shares) | 500,000 | 500,000 |
Preferred stock, par value | $ 0 | $ 0 |
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | $ 1,000 |
Preferred shares, issued (in shares) | 500,000 | 500,000 |
Preferred Stock, Shares Outstanding | 500,000 | 500,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Millions | Total | Voting Preferred Stock | Preferred Shares, No Par Value | Common Shares, $1.00 Par Value | Paid-In Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) Attributable to Progressive | Accumulated Other Comprehensive Income (Loss) Attributable to ProgressiveCumulative Effect, Period of Adoption, Adjustment | Serial Preferred Stock | Serial Preferred StockSeries B Preferred Stock | |
Reclassification of disproportionate tax effects | $ (7.7) | |||||||||||
Balance, beginning of year at Dec. 31, 2017 | $ 0 | $ 581.7 | $ 1,389.2 | $ 6,031.7 | $ 1,282.2 | |||||||
Issuance of Serial Preferred Shares, Series B | 493.9 | |||||||||||
Treasury shares purchased | (1.4) | (3.3) | (74.3) | |||||||||
Net restricted equity awards issued/vested | 2.9 | (2.9) | ||||||||||
Amortization of equity-based compensation | 76.2 | |||||||||||
Reinvested dividends on restricted stock units | 12.2 | (12.2) | ||||||||||
Adjustment to carrying amount of redeemable noncontrolling interest | (2.8) | 7.6 | ||||||||||
Net income attributable to Progressive | 2,615.3 | 2,615.3 | ||||||||||
Cash dividends declared on common shares ($4.90, $2.65, and $2.5140 per share)1 | [1] | (1,466) | ||||||||||
Cash dividends declared on Serial Preferred Shares, Series B ($80.625, $53.75, and $27.024 per share)1 | [1] | (13.5) | ||||||||||
Other, net | 1.1 | |||||||||||
Attributable to noncontrolling interest | 3.3 | (0.1) | ||||||||||
Other comprehensive income (loss) | (98.5) | |||||||||||
Balance, end of year at Dec. 31, 2018 | $ 10,821.8 | 493.9 | 583.2 | 1,479 | 8,386.6 | (120.9) | ||||||
Balance, end of year (Accounting Standards Update 2016-01) at Dec. 31, 2018 | $ 1,300.2 | $ (1,300.2) | ||||||||||
Common shares, dividends declared (USD per share) | $ 2.5140 | |||||||||||
Preferred shares, dividends declared (USD per share) | $ 27.024 | |||||||||||
Reclassification of disproportionate tax effects | Accounting Standards Update 2018-02 | 4.3 | (4.3) | ||||||||||
Preferred shares, authorized (in shares) | 5,000,000 | |||||||||||
Preferred shares, issued (in shares) | 0 | |||||||||||
Issuance of Serial Preferred Shares, Series B | 0 | |||||||||||
Treasury shares purchased | (1.3) | (3.2) | (86.8) | |||||||||
Net restricted equity awards issued/vested | 2.7 | (2.7) | ||||||||||
Amortization of equity-based compensation | 90.1 | |||||||||||
Reinvested dividends on restricted stock units | 10.6 | (10.6) | ||||||||||
Adjustment to carrying amount of redeemable noncontrolling interest | $ 0.3 | (0.4) | ||||||||||
Net income attributable to Progressive | 3,970.3 | 3,970.3 | ||||||||||
Cash dividends declared on common shares ($4.90, $2.65, and $2.5140 per share)1 | [1] | (1,548.4) | ||||||||||
Cash dividends declared on Serial Preferred Shares, Series B ($80.625, $53.75, and $27.024 per share)1 | [1] | (26.8) | ||||||||||
Other, net | (4.7) | |||||||||||
Attributable to noncontrolling interest | (4.6) | (4.6) | ||||||||||
Other comprehensive income (loss) | 467.2 | |||||||||||
Balance, end of year at Dec. 31, 2019 | $ 13,673.2 | 493.9 | 584.6 | 1,573.4 | 10,679.6 | 341.7 | ||||||
Balance, end of year (Accounting Standards Update 2016-01) at Dec. 31, 2019 | 0 | 0 | ||||||||||
Common shares, dividends declared (USD per share) | $ 2.65 | |||||||||||
Preferred shares, dividends declared (USD per share) | 53.75 | |||||||||||
Reclassification of disproportionate tax effects | $ 2.7 | |||||||||||
Reclassification of disproportionate tax effects | Accounting Standards Update 2018-02 | 0 | 0 | ||||||||||
Preferred stock, par value | $ 0 | |||||||||||
Common Shares, par value (USD per share) | $ 1 | |||||||||||
Preferred shares, authorized (in shares) | 5,000,000 | 20,000,000 | 500,000 | |||||||||
Preferred shares, issued (in shares) | 0 | 500,000 | ||||||||||
Issuance of Serial Preferred Shares, Series B | 0 | |||||||||||
Treasury shares purchased | (1.3) | (3.6) | (106.7) | |||||||||
Net restricted equity awards issued/vested | 1.9 | (1.9) | ||||||||||
Amortization of equity-based compensation | 89.4 | |||||||||||
Reinvested dividends on restricted stock units | 18.2 | (18.2) | ||||||||||
Adjustment to carrying amount of redeemable noncontrolling interest | $ 0 | (2.6) | ||||||||||
Net income attributable to Progressive | 5,704.6 | 5,704.6 | ||||||||||
Cash dividends declared on common shares ($4.90, $2.65, and $2.5140 per share)1 | [1] | (2,865.9) | ||||||||||
Cash dividends declared on Serial Preferred Shares, Series B ($80.625, $53.75, and $27.024 per share)1 | [1] | (40.2) | ||||||||||
Other, net | 1.7 | |||||||||||
Attributable to noncontrolling interest | 0 | 2.7 | ||||||||||
Other comprehensive income (loss) | 587.3 | |||||||||||
Balance, end of year at Dec. 31, 2020 | $ 17,038.6 | $ 493.9 | $ 585.2 | $ 1,672.9 | 13,354.9 | 931.7 | ||||||
Balance, end of year (Accounting Standards Update 2016-01) at Dec. 31, 2020 | $ 0 | $ 0 | ||||||||||
Common shares, dividends declared (USD per share) | $ 4.90 | |||||||||||
Preferred shares, dividends declared (USD per share) | $ 80.625 | |||||||||||
Reclassification of disproportionate tax effects | Accounting Standards Update 2018-02 | $ 0 | $ 0 | ||||||||||
Preferred stock, par value | $ 0 | |||||||||||
Common Shares, par value (USD per share) | $ 1 | |||||||||||
Preferred shares, authorized (in shares) | 5,000,000 | 20,000,000 | 500,000 | |||||||||
Preferred shares, issued (in shares) | 0 | 500,000 | ||||||||||
[1] | See Note 14 – Dividends for further discussion. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Cash Flows [Abstract] | |||
Net income | $ 5,704.6 | $ 3,980 | $ 2,621 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 274.9 | 239.8 | 190.4 |
Amortization of intangible assets | 56.9 | 66.3 | 72 |
Net amortization of fixed-income securities | 100.9 | 33.3 | 34.3 |
Amortization of equity-based compensation | 89.4 | 90.2 | 77.2 |
Net realized (gains) losses on securities | (1,630) | (1,029.2) | 405.5 |
Net (gains) losses on disposition of property and equipment | 12.5 | 11 | 32.1 |
Changes in: | |||
Premiums receivable | (652.8) | (1,010.2) | (1,074.6) |
Reinsurance recoverables | (640.5) | (682.8) | (422.7) |
Prepaid reinsurance premiums | 258.4 | (316.8) | (106.4) |
Deferred acquisition costs | (180.7) | (104.9) | (171.1) |
Income taxes | (23.1) | 227.2 | (158.7) |
Unearned premiums | 1,048.7 | 1,702.3 | 1,783 |
Loss and loss adjustment expense reserves | 2,160.4 | 2,704.6 | 2,313.9 |
Accounts payable, accrued expenses, and other liabilities | 328.9 | 611.6 | 746.6 |
Other, net | (2.9) | (260.8) | (57.7) |
Net cash provided by operating activities | 6,905.6 | 6,261.6 | 6,284.8 |
Purchases: | |||
Fixed maturities | (32,037.5) | (28,765.2) | (21,153) |
Equity securities | (951.2) | (379.9) | (538.8) |
Sales: | |||
Fixed maturities | 22,727.2 | 18,412.7 | 7,835.6 |
Equity securities | 431.8 | 471.4 | 823.5 |
Maturities, paydowns, calls, and other: | |||
Fixed maturities | 7,109.4 | 6,145.5 | 5,099.8 |
Equity securities | 113.8 | 49.9 | 26.6 |
Net (purchases) sales of short-term investments | (3,393.2) | 31.5 | 1,116.3 |
Net unsettled security transactions | 83.6 | 6 | 11.7 |
Purchases of property and equipment | (223.5) | (363.5) | (266) |
Sales of property and equipment | 21.9 | 53.3 | 9.4 |
Net cash used in investing activities | (6,117.7) | (4,338.3) | (7,034.9) |
Cash Flows From Financing Activities | |||
Dividends paid to common shareholders | (1,551) | (1,643.2) | (654.9) |
Dividends paid to preferred shareholders | (26.8) | (26.8) | (13.5) |
Acquisition of treasury shares for restricted stock tax liabilities | (68.7) | (84.4) | (78.6) |
Acquisition of treasury shares acquired in open market | (42.9) | (6.9) | (0.4) |
Acquisition of additional shares of ARX Holding Corp. | (243) | (11.2) | (296.9) |
Net proceeds from debt issuance | 986.3 | 0 | 1,134 |
Proceeds from exercise of equity options | 7.3 | 1.6 | 3.3 |
Net proceeds from issuance of Serial Preferred Shares, Series B | 0 | 0 | 493.9 |
Payments of debt | 0 | 0 | (37.1) |
Net cash provided by (used in) financing activities | (938.8) | (1,770.9) | 549.8 |
Increase (decrease) in cash, cash equivalents, and restricted cash | (150.9) | 152.4 | (200.3) |
Cash, cash equivalents, and restricted cash - beginning of year | 227.4 | 75 | 275.3 |
Cash, cash equivalents, and restricted cash - end of year | $ 76.5 | $ 227.4 | $ 75 |
SCHEDULE I - Summary Of Investm
SCHEDULE I - Summary Of Investments - Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
SCHEDULE I - Summary Of Investments - Other Than Investments In Related Parties | SCHEDULE I — SUMMARY OF INVESTMENTS — OTHER THAN INVESTMENTS IN RELATED PARTIES THE PROGRESSIVE CORPORATION AND SUBSIDIARIES (millions) December 31, 2020 Type of Investment Cost Fair Value Amount At Fixed maturities: Bonds: United States Government and government agencies and authorities $ 12,437.9 $ 12,740.0 $ 12,740.0 States, municipalities, and political subdivisions 3,099.4 3,221.8 3,221.8 Public utilities 577.8 619.9 619.9 Corporate and other debt securities 9,001.9 9,565.3 9,565.3 Asset-backed securities 10,290.9 10,469.2 10,469.2 Redeemable preferred stocks 181.2 194.7 194.7 Total fixed maturities 35,589.1 36,810.9 36,810.9 Equity securities: Common stocks: Public utilities 73.5 164.0 164.0 Banks, trusts, and insurance companies 220.1 658.3 658.3 Industrial, miscellaneous, and all other 893.7 3,230.7 3,230.7 Nonredeemable preferred stocks 1,358.7 1,447.9 1,447.9 Total equity securities 2,546.0 5,500.9 5,500.9 Short-term investments 5,218.5 5,218.5 5,218.5 Total investments $ 43,353.6 $ 47,530.3 $ 47,530.3 Progressive did not have any securities of any one issuer, excluding U.S. government obligations, with an aggregate cost or fair value exceeding 10% of total shareholders’ equity at December 31, 2020. |
SCHEDULE II - Condensed Financi
SCHEDULE II - Condensed Financial Information Of Registrant | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
SCHEDULE II - Condensed Financial Information Of Registrant | SCHEDULE II — CONDENSED FINANCIAL INFORMATION OF REGISTRANT CONDENSED STATEMENTS OF COMPREHENSIVE INCOME THE PROGRESSIVE CORPORATION (PARENT COMPANY) (millions) Years Ended December 31, 2020 2019 2018 Revenues Dividends from subsidiaries $ 4,096.5 $ 2,277.9 $ 939.1 Undistributed income from subsidiaries 1,774.4 1,821.3 1,770.7 Equity in net income of subsidiaries 5,870.9 4,099.2 2,709.8 Intercompany investment income 16.5 31.1 39.4 Total revenues 5,887.4 4,130.3 2,749.2 Expenses Interest expense 218.1 190.4 166.8 Deferred compensation 1 33.9 16.6 7.5 Other operating costs and expenses 7.2 5.5 5.1 Total expenses 259.2 212.5 179.4 Income before income taxes 5,628.2 3,917.8 2,569.8 Benefit for income taxes 76.4 52.5 45.5 Net income attributable to Progressive 5,704.6 3,970.3 2,615.3 Other comprehensive income (loss) 587.3 462.6 (95.2) Comprehensive income attributable to Progressive $ 6,291.9 $ 4,432.9 $ 2,520.1 1 See Note 4 – Employee Benefit Plans in these condensed financial statements. See notes to condensed financial statements. CONDENSED BALANCE SHEETS THE PROGRESSIVE CORPORATION (PARENT COMPANY) (millions) December 31, 2020 2019 Assets Investment in affiliate $ 5.0 $ 5.0 Investment in subsidiaries 18,895.9 16,186.8 Receivable from investment subsidiary 5,901.7 2,912.0 Intercompany receivable 473.8 678.6 Net federal deferred income taxes 86.9 70.3 Other assets 270.9 303.8 Total assets $ 25,634.2 $ 20,156.5 Liabilities Accounts payable, accrued expenses, and other liabilities $ 505.0 $ 475.2 Dividends payable on common shares 2,694.5 1,375.4 Debt 1 5,396.1 4,407.1 Total liabilities 8,595.6 6,257.7 Redeemable noncontrolling interest (NCI) 0 225.6 Shareholders’ Equity Serial Preferred Shares (authorized 20.0) Serial Preferred Shares, Series B, no par value (cumulative, liquidation preference of $1,000 per share) (authorized, issued, and outstanding 0.5) 493.9 493.9 Common shares, $1.00 par value (authorized 900.0; issued 797.5, including treasury shares of 212.3 and 212.9) 585.2 584.6 Paid-in capital 1,672.9 1,573.4 Retained earnings 13,354.9 10,679.6 Total accumulated other comprehensive income attributable to Progressive 931.7 341.7 Total shareholders’ equity 17,038.6 13,673.2 Total liabilities, redeemable NCI, and shareholders’ equity $ 25,634.2 $ 20,156.5 1 Consists of both short-term and long-term debt. See Note 4 – Debt in our Annual Report for further discussion. See notes to condensed financial statements. CONDENSED STATEMENTS OF CASH FLOWS THE PROGRESSIVE CORPORATION (PARENT COMPANY) (millions) Years Ended December 31, 2020 2019 2018 Cash Flows From Operating Activities: Net income attributable to Progressive $ 5,704.6 $ 3,970.3 $ 2,615.3 Adjustments to reconcile net income attributable to Progressive to net cash provided by operating activities: Undistributed income from subsidiaries (1,774.4) (1,821.3) (1,770.7) Amortization of equity-based compensation 2.9 2.9 2.4 Changes in: Intercompany receivable (20.2) (14.1) 77.5 Accounts payable, accrued expenses, and other liabilities 52.0 47.1 (29.6) Income taxes (52.2) 175.5 (14.2) Other, net 40.4 (179.8) 47.8 Net cash provided by operating activities 3,953.1 2,180.6 928.5 Cash Flows From Investing Activities: Additional investments in equity securities of consolidated subsidiaries (27.1) (152.8) (178.3) Acquisition of additional shares - ARX (233.2) (5.4) (287.9) (Paid to) received from investment subsidiary (2,989.7) (253.1) (1,192.8) Net cash used in investing activities (3,250.0) (411.3) (1,659.0) Cash Flows From Financing Activities: Net proceeds from debt issuance 986.3 0 1,134.0 Net proceeds from preferred stock issuance 0 0 493.9 Dividends paid to common shareholders (1,551.0) (1,643.2) (654.9) Dividends paid to preferred shareholders (26.8) (26.8) (13.5) Acquisition of treasury shares for restricted stock tax liabilities (68.7) (84.4) (78.6) Acquisition of treasury shares acquired in open market (42.9) (6.9) (0.4) Loan to ARX Holding Corp. 0 (8.0) (150.0) Net cash provided by (used in) financing activities (703.1) (1,769.3) 730.5 Change in cash, cash equivalents, and restricted cash 0 0 0 Cash, cash equivalents, restricted cash - beginning of year 0 0 0 Cash, cash equivalents, restricted cash - end of year $ 0 $ 0 $ 0 See notes to condensed financial statements. NOTES TO CONDENSED FINANCIAL STATEMENTS The accompanying condensed financial statements of The Progressive Corporation (parent company) should be read in conjunction with the consolidated financial statements and notes thereto in the Annual Report to Shareholders of The Progressive Corporation and its subsidiaries, which is included as Exhibit 13 to this Form 10-K. Note 1. Statements of Cash Flows — For the purpose of the Statements of Cash Flows, cash includes only bank demand deposits. The Progressive Corporation does not hold any cash but has unrestricted access to funds maintained in a non-insurance investment subsidiary to meet its holding company obligations; at December 31, 2020, 2019, and 2018, $6.2 billion, $3.2 billion, and $2.9 billion, respectively, of marketable securities were available in this subsidiary. For the year ended December 31, 2020, non-cash activity includes declared but unpaid common share dividends of $2,694.5 million and preferred share dividends of $13.4 million, and $225.0 million of loans made by The Progressive Corporation to ARX Holding Corp.(ARX) that were converted to a capital contribution upon acquisition of the remaining outstanding stock of ARX; see Note 14 – Dividends and Note 15 – Redeemable Noncontrolling Interest in the Annual Report for further discussion. For the years ended December 31, The Progressive Corporation paid the following: (millions) 2020 2019 2018 Income taxes $ 1,411.0 $ 925.0 $ 679.2 Interest 206.0 184.9 153.6 Note 2. Income Taxes — The Progressive Corporation files a consolidated federal income tax return with its subsidiaries and acts as an agent for the consolidated tax group when making payments to the Internal Revenue Service. The Progressive Corporation consolidated group’s net income taxes currently payable/recoverable are included in other liabilities/assets, respectively, in the accompanying Condensed Balance Sheets based on the balance at the end of the year. The Progressive Corporation and its eligible subsidiaries have adopted, pursuant to a written agreement, a method of allocating consolidated federal income taxes. Amounts allocated to the eligible subsidiaries under the written agreement are included in “Intercompany Receivable” in the accompanying Condensed Balance Sheets. Note 3. Debt — The information relating to debt is incorporated by reference from Note 4 – Debt in our Annual Report. Note 4. Employee Benefit Plans — The information relating to incentive compensation and deferred compensation plans is incorporated by reference from Note 9 – Employee Benefit Plans in our Annual Report. Note 5. Other Comprehensive Income — On the condensed Statements of Comprehensive Income, other comprehensive income represents activity of the subsidiaries of The Progressive Corporation and includes net unrealized gains (losses) on securities and net unrealized gains on forecasted transactions. Note 6. Dividends — The information relating to our dividend policy is incorporated by reference from Note 14 – Dividends |
SCHEDULE III - Supplementary In
SCHEDULE III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
SCHEDULE III - Supplementary Insurance Information | SCHEDULE III — SUPPLEMENTARY INSURANCE INFORMATION THE PROGRESSIVE CORPORATION AND SUBSIDIARIES (millions) Segment Deferred 1 Future 1 Unearned premiums 1 Other 1 Premium revenue Net 1,2 Benefits, Amortization Other 1 Net premiums Year ended December 31, 2020: Personal Lines 3 $ 32,620.1 $ 20,611.7 $ 2,437.3 $ 5,762.0 $ 33,342.6 Commercial Lines 4,875.8 3,146.0 525.7 647.5 5,315.3 Property 1,765.7 1,364.1 310.2 237.9 1,910.8 Other indemnity 0 0 0 0 0 Total $ 1,237.2 $ 20,265.8 $ 13,437.5 $ 0 $ 39,261.6 $ 916.6 $ 25,121.8 $ 3,273.2 $ 6,647.4 $ 40,568.7 Year ended December 31, 2019: Personal Lines $ 30,210.0 $ 21,329.7 $ 2,273.6 $ 4,227.6 $ 31,102.2 Commercial Lines 4,427.6 3,034.8 481.2 523.5 4,791.8 Property 1,554.8 1,106.0 268.4 224.0 1,683.9 Other indemnity 0 0 0 0 0 Total $ 1,056.5 $ 18,105.4 $ 12,388.8 $ 0 $ 36,192.4 $ 1,017.4 $ 25,470.5 $ 3,023.2 $ 4,975.1 $ 37,577.9 Year ended December 31, 2018: Personal Lines $ 26,034.7 $ 18,389.8 $ 1,964.4 $ 3,563.3 $ 27,157.6 Commercial Lines 3,610.9 2,394.0 396.0 396.0 3,996.4 Property 1,287.7 937.0 213.3 237.2 1,455.9 Other indemnity 0 0.2 0 (0.7) 0 Total $ 951.6 $ 15,400.8 $ 10,686.5 $ 0 $ 30,933.3 $ 796.2 $ 21,721.0 $ 2,573.7 $ 4,195.8 $ 32,609.9 1 Progressive does not allocate assets, liabilities, or investment income to operating segments. Expense allocations are based on certain assumptions and estimates primarily related to revenue and volume; stated segment operating results would change if different methods were applied. 2 Excludes total net realized gains (losses) on securities. 3 Other operating expenses includes $1,077.4 million of policyholder credits issued to personal auto customers. |
SCHEDULE IV - Reinsurance
SCHEDULE IV - Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
Text Block [Abstract] | |
SCHEDULE IV - Reinsurance | SCHEDULE IV — REINSURANCE THE PROGRESSIVE CORPORATION AND SUBSIDIARIES (millions) Year Ended: Gross Amount Ceded to Assumed Net Amount Percentage December 31, 2020 Premiums earned: Property and liability insurance $ 40,687.7 $ 1,426.1 $ 0 $ 39,261.6 0 % December 31, 2019 Premiums earned: Property and liability insurance $ 37,519.7 $ 1,327.3 $ 0 $ 36,192.4 0 % December 31, 2018 Premiums earned: Property and liability insurance $ 31,970.2 $ 1,036.9 $ 0 $ 30,933.3 0 % |
Reporting and Accounting Polici
Reporting and Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Reporting and Accounting Policies | REPORTING AND ACCOUNTING POLICIES Nature of Operations The Progressive insurance organization began business in 1937. The financial results of The Progressive Corporation include its subsidiaries and affiliates (references to “subsidiaries” in these notes include affiliates as well). Our insurance subsidiaries provide personal and commercial auto insurance, personal residential and commercial property insurance, general liability insurance, and other specialty property-casualty insurance and related services. Our Personal Lines segment writes insurance for personal autos and recreational vehicles, which we refer to as our special lines products. Our Commercial Lines segment writes auto-related primary liability and physical damage insurance, and general liability and property insurance, predominately for small businesses. Our Property segment writes residential property insurance for homeowners, other property owners, and renters. We operate our businesses throughout the United States through both the independent agency and direct channels. Basis of Consolidation and Reporting The accompanying consolidated financial statements include the accounts of The Progressive Corporation, our wholly owned insurance and non-insurance subsidiaries, and affiliates, in which we have a controlling financial interest. All intercompany accounts and transactions are eliminated in consolidation. All revenues are generated from external customers and we do not have a reliance on any major customer. Estimates We are required to make estimates and assumptions when preparing our financial statements and accompanying notes in conformity with accounting principles generally accepted in the United States of America (GAAP). As estimates develop into fact, results may, and will likely, differ from those estimates. Investments Our fixed-maturity securities and short-term investments are accounted for on an available-for-sale basis. Fixed-maturity securities include debt securities and redeemable preferred stocks, which may have fixed or variable principal payment schedules, may be held for indefinite periods of time, and may be used as a part of our asset/liability strategy or sold in response to changes in interest rates, anticipated prepayments, risk/reward characteristics, liquidity needs, or other economic factors. These securities are carried at fair value with the corresponding unrealized gains (losses), net of deferred income taxes, reported in accumulated other comprehensive income. Short-term investments may include Eurodollar deposits, commercial paper, repurchase transactions, and other securities expected to mature within one year. From time to time, we may also invest in municipal bonds that have maturity dates that are longer than one year but have either liquidity facilities or mandatory put features within one year. Equity securities include common stocks, nonredeemable preferred stocks, and other risk investments. These securities are carried at fair value, with the changes in fair value reported as a component of net holding period gains (losses) on securities reported in net income. Derivative instruments may include futures, options, forward positions, interest rate swap agreements, and credit default swaps and may be used in the portfolio for general investment purposes or to hedge the exposure to variable cash flows of a forecasted transaction (cash flow hedge). We did not have any derivatives outstanding at December 31, 2020 or 2019. To the extent we have derivatives held for general investment purposes, these derivative instruments would be recognized as either assets or liabilities and measured at fair value, with changes in fair value recognized in net income as a component of net holding period gains (losses) on securities. Derivatives designated as hedges are required to be evaluated on established criteria to determine the effectiveness of their correlation to, and ability to reduce the designated risk of, specific securities or transactions. Effectiveness is required to be reassessed regularly. For cash flow hedges that are deemed to be effective, the changes in fair value of the hedge would be reported as a component of accumulated other comprehensive income and subsequently amortized into earnings over the life of the hedged transaction. If a hedge is deemed to become ineffective or discontinued, changes in fair value of the derivative instrument would be reported in income for the current period. For derivatives settled through a clearinghouse, collateral is required to post initial margin and is subject to increases in margin beyond changes in fair value. Exposure to credit risk is limited to the carrying value; collateral may be required to limit credit risk. For bi-lateral derivative positions, net cash requirements are limited to changes in fair values, which may vary as a result of changes in interest rates, currency exchange rates, and other factors. We have elected not to offset fair value amounts that arise from derivative positions with the same counterparty under a master netting arrangement. Investment securities are exposed to various risks such as interest rate, market, credit, and liquidity risk. Fair values of securities fluctuate based on the nature and magnitude of changing market conditions; significant changes in market conditions could materially affect the portfolio’s value in the near term. We routinely monitor our fixed-maturity portfolio for pricing changes that might indicate potential credit losses exist and perform detailed reviews of securities with unrealized losses. For an unrealized loss that we determined to be related to current market conditions, we will not record an allowance for credit losses or a write-off of the fair value for securities we do not intend to sell. We will continue to monitor these securities to determine if the unrealized loss is due to credit deterioration. If we believe that a potential credit loss exists, we will record an allowance for the credit loss and recognize the realized loss as a component of realized gains and losses in the income statement. Once a credit loss allowance has been established, we will continue to evaluate the security, at least quarterly, to determine if changes in conditions have created the need to either increase, or decrease, the allowance recorded. If we determine that a security with a credit loss allowance, previously recorded, is likely to be sold prior to the potential recovery of the credit loss or if we determine that the loss is uncollectible, we will reverse the allowance and write-off the security to its fair value. Investment income consists of interest, dividends, and accretion (net of amortization). Interest is recognized on an accrual basis using the effective yield method, except for asset-backed securities, discussed below. Depending on the nature of the equity instruments, dividends are recorded at either the ex-dividend date or on an accrual basis. Asset-backed securities, which are included in our fixed-maturity portfolio, are generally accounted for under the retrospective method. The retrospective method recalculates yield assumptions (based on changes in interest rates or cash flow expectations) historically to the inception of the investment holding period, and applies the required adjustment, if any, to the cost basis, with the offset recorded to investment income. The prospective method is used primarily for interest-only securities, asset-backed securities below high investment-grade status (i.e., below AA-), and certain asset-backed securities with sub-prime loan exposure or where there is a greater risk of non-performance and where it is possible the initial investment may not be substantially recovered. The prospective method requires a calculation of expected future repayments and resets the yield to allow for future period adjustments; no current period impact to investment income or the security’s cost is made based on the cash flow update. Prepayment assumptions are updated quarterly. Realized gains (losses) on securities are computed based on the first-in first-out method. Realized gains (losses) also includes holding period valuation changes on equity securities, hybrid instruments (e.g., securities with embedded options, where the option is a feature of the overall change in the value of the instrument), and derivatives, as well as initial credit allowance losses, subsequent changes in credit loss allowances, and write-offs for losses deemed uncollectible or securities in a loss position that are expected to be sold prior to the recovery of the credit loss. Insurance Premiums and Receivables Insurance premiums written are earned into income on a pro rata basis over the period of risk, based on a daily earnings convention. Accordingly, unearned premiums represent the portion of premiums written that are applicable to the unexpired risk. We provide insurance and related services to individuals and commercial accounts and offer a variety of payment plans. Generally, premiums are collected prior to providing risk coverage, minimizing our exposure to credit risk. For our Personal Lines and Commercial Lines businesses, we perform a policy level evaluation to determine the extent to which the premiums receivable balance exceeds the unearned premiums balance. We then age this exposure to establish an allowance for credit losses based on prior experience. For our Property business, the risk of uncollectibility is relatively low. If premiums are unpaid by the policy due date, we provide advance notice of cancellation in accordance with each state’s requirements and, if the premiums remain unpaid after receipt of notice, cancel the policy and write off any remaining balance. To determine an allowance for credit losses, we evaluate the collectibility of premiums receivables based on historical and current collections experience using actuarial analysis. Our estimate of the future recoverability of our projected ultimate at-risk exposures also takes into consideration any unusual circumstances that we may encounter, such as moratoriums or other programs that may suspend collections. The following table summarizes changes in our allowance for credit loss exposure on our premium receivables: (millions) 2020 2019 Balance at January 1 $ 283.2 $ 252.1 Increase in allowance 1 472.0 433.5 Write-offs 2 (399.0) (402.4) Balance at December 31 $ 356.2 $ 283.2 1 Represents the incremental increase in other underwriting expenses. 2 Represents the portion of allowance that is reversed when premium receivables are written off. Premiums receivable balances are written off once we have exhausted our collection efforts. The increase in the allowance during 2020 in part reflects the greater potential for credit losses due to financial hardships of policyholders as a result of the economic impacts related to the spread of the novel coronavirus, COVID-19. Deferred Acquisition Costs Deferred acquisition costs include commissions, premium taxes, and other variable underwriting and direct sales costs incurred in connection with the successful acquisition or renewal of insurance contracts. These acquisition costs, net of ceding allowances, are deferred and amortized over the policy period in which the related premiums are earned. We consider anticipated investment income in determining the recoverability of these costs. Management believes these costs will be fully recoverable in the near term. We do not defer any advertising costs. Total advertising costs, which are expensed as incurred, for the years ended December 31, were: (millions) Advertising Costs 2020 $ 2,175.7 2019 1,837.3 2018 1,422.4 Loss and Loss Adjustment Expense Reserves Loss reserves represent the estimated liability on claims reported to us, plus reserves for losses incurred but not recorded (IBNR). These estimates are reported net of amounts estimated to be recoverable from salvage and subrogation. Loss adjustment expense reserves represent the estimated expenses required to settle these claims. The methods of making estimates and establishing these reserves are reviewed regularly, and resulting adjustments are reflected in income in the current period. Such loss and loss adjustment expense reserves are susceptible to change in the near term. Reinsurance Our reinsurance activity includes transactions which are categorized as Regulated and Non-Regulated. Regulated refers to plans in which we participate that are governed by insurance regulations and include state-provided reinsurance facilities (e.g., Michigan Catastrophic Claims Association, North Carolina Reinsurance Facility, Florida Hurricane Catastrophe Fund), as well as state-mandated involuntary plans for commercial vehicles (Commercial Automobile Insurance Procedures/Plans – CAIP) and federally regulated plans for flood (National Flood Insurance Program – NFIP); we act as a servicing agent for CAIP and as a participant in the “Write Your Own” program for the NFIP. Non-Regulated includes voluntary contractual arrangements primarily related to our Property business and to the transportation network company business written by our Commercial Lines segment. Prepaid reinsurance premiums are earned on a pro rata basis over the period of risk, based on a daily earnings convention, which is consistent with premiums earned. See Note 7 – Reinsurance for further discussion. We routinely monitor changes in the credit quality and concentration risks of the reinsurers who are counter parties to our reinsurance recoverables to determine if an allowance for credit losses should be established. Income Taxes The income tax provision is calculated under the balance sheet approach. Deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax bases of assets and liabilities at the enacted tax rates. The principal items giving rise to such differences are investment securities (e.g., net unrealized gains (losses), net holding period gains (losses) on securities, write-downs on securities determined to be other-than-temporarily impaired), loss and loss adjustment expense reserves, unearned premiums reserves, deferred acquisition costs, property and equipment, intangible assets, and non-deductible accruals. We review our deferred tax assets regularly for recoverability. See Note 5 – Income Taxes for further discussion. Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is recognized over the estimated useful lives of the assets using accelerated methods for computer equipment and the straight-line method for all other fixed assets. We evaluate impairment whenever events or circumstances warrant such a review and write-off the impaired assets if appropriate. The cost and useful lives for property and equipment at December 31, were: ($ in millions) 2020 2019 Useful Lives Land $ 151.6 $ 161.6 NA Buildings, improvements, and integrated components 872.7 927.1 7-40 years Capitalized software 392.6 367.1 3-10 years Software licenses (internal use) 335.5 286.8 1-5 years Computer equipment 253.8 223.3 3 years All other property and equipment 391.2 385.9 3-10 years Total cost 2,397.4 2,351.8 Accumulated depreciation (1,291.4) (1,138.1) Balance at end of year $ 1,106.0 $ 1,213.7 NA = Not applicable; land is not a depreciable asset. Included in other assets in the consolidated balance sheets are “held for sale” property, which represents the fair value of these properties less the estimated costs to sell, of $56.6 million and $32.9 million at December 31, 2020 and 2019, respectively, and capitalized cloud computing arrangement implementation costs, net of amortization, of $25.3 million at December 31, 2020. We adopted the new accounting standard for cloud computing arrangements in January 2020; see New Accounting Standards below in this Note 1 for further discussion. Goodwill and Intangible Assets Goodwill is the excess of the purchase price over the estimated fair value of the assets and liabilities acquired and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Intangible assets are non-financial assets lacking physical substance, such as customer and agency relationships and software rights, and represent the future economic benefit of those acquired assets. See Note 16 – Goodwill and Intangible Assets for further discussion. We evaluate our goodwill for impairment at least annually using a qualitative approach. If events or changes in circumstances indicate that the carrying value of goodwill or intangible assets may not be recoverable, we will evaluate such items for impairment using a quantitative approach. Guaranty Fund Assessments We are subject to state guaranty fund assessments, which provide for the payment of covered claims or other insurance obligations of insurance companies deemed insolvent. These assessments are accrued after a formal determination of insolvency has occurred, and we have written the premiums on which the assessments will be based. Assessments that are available for recoupment from policyholders are capitalized when incurred; all other assessments are expensed. Fees and Other Revenues Fees and other revenues primarily represent fees collected from policyholders relating to installment charges in accordance with our bill plans, as well as late payment and insufficient funds fees and revenue from ceding commissions. Fees and other revenues are generally earned when invoiced, except for excess ceding commissions, which are earned over the policy period. Service Revenues and Expenses Our service businesses provide insurance-related services. Service revenues and expenses from our commission-based businesses are recorded in the period in which they are earned or incurred. Service revenues generated from processing business for involuntary CAIP plans are earned on a pro rata basis over the term of the related policies. Service expenses related to these CAIP plans are expensed as incurred. Equity-Based Compensation We issue time-based and performance-based restricted stock unit awards to key members of management as our form of equity compensation, and time-based restricted stock awards to non-employee directors. Collectively, we refer to these awards as “restricted equity awards.” Compensation expense for time-based restricted equity awards with installment vesting is recognized over each respective vesting period. For performance-based restricted equity awards, compensation expense is recognized over the estimated vesting periods. Dividend equivalent units are credited to outstanding restricted stock unit awards, both time-based and performance-based, at the time a dividend is paid to shareholders and paid upon vesting of the underlying award. We record an estimate for expected forfeitures of restricted equity awards based on our historical forfeiture rates. The total compensation expense recognized for equity-based compensation for the years ended December 31, was: (millions) 2020 2019 2018 Pretax expense $ 89.4 $ 90.2 $ 77.2 Tax benefit 18.8 18.9 16.2 Earnings Per Common Share Net income attributable to Progressive is reduced by preferred share dividends to determine net income available to common shareholders, and is used in our calculation of the per common share amounts. Basic earnings per common share is computed using the weighted average number of common shares outstanding during the reporting period, excluding unvested time-based restricted stock awards. Diluted earnings per common share includes common stock equivalents assumed outstanding during the period. Our common stock equivalents include the incremental shares assumed to be issued for: • earned but unvested time-based restricted equity awards, and • performance-based restricted equity awards that satisfied certain contingency conditions for unvested common stock equivalents during the period and are highly likely to continue to satisfy the conditions until the date of vesting. Supplemental Cash Flow Information Cash and cash equivalents include bank demand deposits and daily overnight reverse repurchase commitments of funds held in bank demand deposit accounts by certain subsidiaries, and are not considered part of the investment portfolio. The amount of reverse repurchase commitments held by these subsidiaries at December 31, 2020, 2019, and 2018, were $93.5 million, $46.3 million, and $117.3 million, respectively. Restricted cash on our consolidated balance sheets represents cash that is restricted to pay flood claims under the NFIP’s “Write Your Own” program, for which certain subsidiaries are administrators. For the year ended December 31, 2020, non-cash activity includes declared but unpaid common share dividends of $2,694.5 million and preferred share dividends of $13.4 million, and operating lease liabilities arising from obtaining right-of-use assets of $60.3 million (see Note 13 – Leases and Note 14 – Dividends for further discussion). For the years ended December 31, we paid the following: (millions) 2020 2019 2018 Income taxes $ 1,446.3 $ 954.3 $ 702.6 Interest 206.0 184.9 154.0 Operating lease liabilities 86.5 84.0 NA NA = Not applicable prior to the adoption of the new accounting standard in 2019. Commitments and Contingencies We have certain noncancelable purchase obligations for goods and services with minimum commitments of $830.4 million at December 31, 2020, primarily consisting of software licenses, maintenance on information technology equipment, and media placements. In addition, we have several multiple-layer property catastrophe reinsurance contracts with various reinsurers with terms ranging from one New Accounting Standards On January 1, 2020, we adopted the following new Accounting Standards Updates (ASU). Cloud Computing Arrangements This ASU, which provides guidance on the requirements for capitalizing and amortizing implementation costs incurred in a cloud computing arrangement that does not include a software license, was adopted on a prospective basis. See the Property and Equipment discussion above for the cloud computing arrangement implementation cost capitalized at December 31, 2020. Fair Value Measurements We early adopted a portion of this ASU in 2018 and the remaining provisions in 2020. This ASU amended the disclosure requirements for fair value measurements to require companies to disclose the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and removed current disclosure requirements for the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. The adoption of this ASU had no impact on our financial condition, cash flows, or results of operations. Goodwill Impairment Test Simplification The ASU eliminated the requirement to determine the implied fair value of goodwill in measuring an impairment loss and now requires the measurement of a goodwill impairment to represent the excess of the reporting unit’s carrying value over fair value, limited to the carrying value of goodwill. The adoption of this ASU had no impact on our financial condition, cash flows, or results of operations. Measurement of Credit Losses on Financial Instruments This ASU modified the existing accounting guidance related to the impairment evaluation for our available-for-sale debt securities, reinsurance recoverables, and premiums receivable. The ASU is intended to improve the timing, and enhance the accounting and disclosure, of credit losses on financial assets. To the extent a credit loss is determined to exist, an allowance for credit losses would be required to be recorded as a contra asset, with changes to the credit loss allowance recorded prospectively. Based on our analysis for available-for-sale debt securities and reinsurance recoverables as described in Note 2– Investments and Note 7– Reinsurance , respectively, no adjustment to the beginning balance of retained earnings was required upon adoption. See the Insurance Premiums and Receivables discussion above for changes in the allowance for credit losses related to the premiums receivable balance. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS The following tables present the composition of our investment portfolio by major security type, consistent with our classification of how we manage, monitor, and measure the portfolio. Our securities are reported in our consolidated balance sheets at fair value. The changes in fair value for our fixed-maturity securities (other than hybrid securities) are reported as a component of accumulated other comprehensive income, net of deferred income taxes, in our consolidated balance sheets. The net holding period gains (losses) reported below represent the inception-to-date changes in fair value of the securities. The changes in the net holding period gains (losses) between periods for the hybrid securities and equity securities are recorded as a component of net realized gains (losses) on securities in our consolidated statements of comprehensive income. ($ in millions) Cost Gross Unrealized Gains Gross Unrealized Losses Net Holding Period Gains (Losses) Fair Value % of Total Fair Value December 31, 2020 Available-for-sale securities: Fixed maturities: U.S. government obligations $ 12,437.9 $ 305.8 $ (3.7) $ 0 $ 12,740.0 26.8 % State and local government obligations 3,099.4 123.1 (0.7) 0 3,221.8 6.8 Corporate debt securities 9,579.7 601.7 (0.1) 3.9 10,185.2 21.4 Residential mortgage-backed securities 503.3 7.1 (0.9) 0 509.5 1.1 Commercial mortgage-backed securities 6,042.6 142.5 (10.0) 0 6,175.1 13.0 Other asset-backed securities 3,745.0 40.1 (0.5) 0 3,784.6 7.9 Redeemable preferred stocks 181.2 3.6 (1.4) 11.3 194.7 0.4 Total fixed maturities 35,589.1 1,223.9 (17.3) 15.2 36,810.9 77.4 Short-term investments 5,218.5 0 0 0 5,218.5 11.0 Total available-for-sale securities 40,807.6 1,223.9 (17.3) 15.2 42,029.4 88.4 Equity securities: Nonredeemable preferred stocks 1,358.7 0 0 89.2 1,447.9 3.1 Common equities 1,187.3 0 0 2,865.7 4,053.0 8.5 Total equity securities 2,546.0 0 0 2,954.9 5,500.9 11.6 Total portfolio 1 $ 43,353.6 $ 1,223.9 $ (17.3) $ 2,970.1 $ 47,530.3 100.0 % ($ in millions) Cost Gross Unrealized Gains Gross Unrealized Losses Net Holding Period Gains (Losses) Fair Value % of Total Fair Value December 31, 2019 Available-for-sale securities: Fixed maturities: U.S. government obligations $ 13,100.7 $ 194.1 $ (43.7) $ 0 $ 13,251.1 33.7 % State and local government obligations 1,686.0 30.0 (2.7) 0 1,713.3 4.4 Corporate debt securities 6,860.3 206.6 (0.5) 1.3 7,067.7 18.0 Residential mortgage-backed securities 625.0 4.5 (2.0) 0 627.5 1.6 Commercial mortgage-backed securities 5,020.7 61.5 (6.0) 0 5,076.2 12.9 Other asset-backed securities 5,164.7 16.2 (1.4) 0 5,179.5 13.2 Redeemable preferred stocks 185.7 4.1 (1.3) 6.5 195.0 0.5 Total fixed maturities 32,643.1 517.0 (57.6) 7.8 33,110.3 84.3 Short-term investments 1,798.8 0 0 0 1,798.8 4.6 Total available-for-sale securities 34,441.9 517.0 (57.6) 7.8 34,909.1 88.9 Equity securities: Nonredeemable preferred stocks 971.3 0 0 67.6 1,038.9 2.7 Common equities 1,125.5 0 0 2,180.8 3,306.3 8.4 Total equity securities 2,096.8 0 0 2,248.4 4,345.2 11.1 Total portfolio 1 $ 36,538.7 $ 517.0 $ (57.6) $ 2,256.2 $ 39,254.3 100.0 % 1 Our portfolio reflects the effect of net unsettled security transactions; at December 31, 2020, $95.5 million was included in “other liabilities,” compared to $11.9 million at December 31, 2019. The total fair value of the portfolio at December 31, 2020 and 2019 included $6.2 billion and $3.2 billion, respectively, of securities held in a consolidated, non-insurance subsidiary of the holding company, net of any unsettled security transactions. A portion of these investments were sold and proceeds used to pay our common share dividends; see Note 14 – Dividends for additional information. At December 31, 2020, bonds and certificates of deposit in the principal amount of $298.2 million were on deposit to meet state insurance regulatory requirements. We did not hold any securities of any one issuer, excluding U.S. government obligations, with an aggregate cost or fair value exceeding 10% of total shareholders’ equity at December 31, 2020 or 2019. At December 31, 2020, we did not hold any debt securities that were non-income producing during the preceding 12 months. Short-Term Investments Our short-term investments may include commercial paper and other investments that are expected to mature or are redeemable within one year. We invested in repurchase and reverse repurchase transactions during 2020 and 2019, but did not have any open positions at December 31, 2020 or 2019. To the extent we enter into repurchase or reverse repurchase transactions, consistent with past practice, we would elect not to offset these transactions and would report them on a gross basis on our consolidated balance sheets, despite the option to elect to offset these transactions as long as they were with the same counterparty and subject to an enforceable master netting arrangement. Hybrid Securities Certain securities in our fixed maturities portfolio are accounted for as hybrid securities because they contain embedded derivatives that are not deemed to be clearly and closely related to the host investments. These securities are reported at fair value at December 31: (millions) 2020 2019 Fixed Maturities: State and local government obligations $ 0 $ 3.5 Corporate debt securities 188.4 91.2 Other asset-backed securities 34.8 2.6 Redeemable preferred stocks 131.4 92.1 Total hybrid securities $ 354.6 $ 189.4 Since the embedded derivatives (e.g., change-in-control put option, debt-to-equity conversion, or any other feature unrelated to the credit quality or risk of default of the issuer that could impact the amount or timing of our expected future cash flows) do not have observable intrinsic values, we have elected to record the changes in fair value of these securities through income as a component of net realized gains or losses. Fixed Maturities The composition of fixed maturities by maturity at December 31, 2020, was: (millions) Cost Fair Value Less than one year $ 5,734.9 $ 5,765.4 One to five years 20,769.2 21,377.3 Five to ten years 8,939.8 9,512.2 Ten years or greater 145.2 156.0 Total $ 35,589.1 $ 36,810.9 Asset-backed securities are classified in the maturity distribution table based upon their projected cash flows. All other securities that do not have a single maturity date are reported based upon expected average maturity. Contractual maturities may differ from expected maturities because the issuers of the securities may have the right to call or prepay obligations. Gross Unrealized Losses The following tables show the composition of gross unrealized losses by major security type and by the length of time that individual securities have been in a continuous unrealized loss position: Total No. of Sec. Total Gross Unrealized Losses Less than 12 Months 12 Months or Greater ($ in millions) No. of Sec. Fair Unrealized Losses No. of Sec. Fair Unrealized Losses December 31, 2020 U.S. government obligations 9 $ 1,511.0 $ (3.7) 9 $ 1,511.0 $ (3.7) 0 $ 0 $ 0 State and local government obligations 30 208.7 (0.7) 30 208.7 (0.7) 0 0 0 Corporate debt securities 7 129.4 (0.1) 7 129.4 (0.1) 0 0 0 Residential mortgage-backed securities 21 44.4 (0.9) 0 0 0 21 44.4 (0.9) Commercial mortgage-backed securities 43 893.3 (10.0) 9 93.6 (0.3) 34 799.7 (9.7) Other asset-backed securities 22 183.7 (0.5) 9 74.4 (0.1) 13 109.3 (0.4) Redeemable preferred stocks 1 11.0 (1.4) 0 0 0 1 11.0 (1.4) Total fixed maturities 133 $ 2,981.5 $ (17.3) 64 $ 2,017.1 $ (4.9) 69 $ 964.4 $ (12.4) Total No. of Sec. Total Gross Less than 12 Months 12 Months or Greater ($ in millions) No. of Sec. Fair Unrealized No. of Sec. Fair Unrealized December 31, 2019 U.S. government obligations 23 $ 5,152.4 $ (43.7) 19 $ 5,057.2 $ (43.6) 4 $ 95.2 $ (0.1) State and local government obligations 67 314.3 (2.7) 52 287.5 (2.6) 15 26.8 (0.1) Corporate debt securities 16 247.6 (0.5) 12 191.4 (0.5) 4 56.2 0 Residential mortgage-backed securities 41 292.8 (2.0) 12 163.7 (0.9) 29 129.1 (1.1) Commercial mortgage-backed securities 98 1,742.4 (6.0) 79 1,400.0 (5.3) 19 342.4 (0.7) Other asset-backed securities 61 1,000.6 (1.4) 43 938.5 (0.9) 18 62.1 (0.5) Redeemable preferred stocks 1 11.2 (1.3) 0 0 0 1 11.2 (1.3) Total fixed maturities 307 $ 8,761.3 $ (57.6) 217 $ 8,038.3 $ (53.8) 90 $ 723.0 $ (3.8) During 2020, we had seven securities that had their credit ratings downgraded, with a combined fair value of $65.0 million and an unrealized loss of $1.6 million as of December 31, 2020, comprised of residential and commercial mortgage-backed securities. A review of the securities in an unrealized loss position indicated that the issuers were current with respect to their interest obligations and that there was no evidence of deterioration of the current cash flow projections that would indicate we would not receive the remaining principal at maturity. Allowance For Credit and Uncollectible Losses We are required to measure the amount of potential credit losses for all fixed-maturity securities in an unrealized loss position. We did not record any allowances for credit losses or any write-offs for amounts deemed to be uncollectible during 2020 and did not have a credit loss allowance balance as of December 31, 2020. We considered several factors and inputs related to the individual securities as part of our analysis. The methodology and significant inputs used to measure the amount of credit losses in our portfolio included: • current performance indicators on the business model or underlying assets (e.g., delinquency rates, foreclosure rates, and default rates); • credit support (via current levels of subordination); • historical credit ratings; and • updated cash flow expectations based upon these performance indicators. In order to determine the amount of credit loss, if any, we initially reviewed securities in a loss position to determine whether it was likely that we would be required, or intended, to sell any of the securities prior to the recovery of their respective cost bases (which could be maturity). If we were likely to, or intended to, sell prior to a potential recovery, we would write off the unrealized loss. For those securities that we determined we were not likely to, or did not intend to, sell prior to a potential recovery, we calculated the net present value (NPV) of the cash flows expected (i.e., expected recovery value) using the current book yield for each security. The NPV was then compared to the security’s current amortized value to determine if a credit loss existed. In the event that the NPV was below the amortized value, and the amount was determined to be material individually, or in aggregate, a credit loss would be deemed to exist, and either an allowance for credit losses would be created, or if an allowance currently existed, either a recovery of the previous allowance, or an incremental loss, would be recorded to net realized gains (losses) on securities. As of December 31, 2020, we believe none of the unrealized losses relate to material credit losses on any specific securities, or in the aggregate, based on our review. We continue to expect all the securities in our portfolio to pay their principal and interest obligations. In addition, we reviewed our accrued investment income outstanding on those securities in an unrealized loss position at December 31, 2020, to determine if the accrued interest amounts were determined to be uncollectible. Based on our analysis, we believe the issuers have sufficient liquidity and capital reserves to meet their current interest, and future principal, obligations and, therefore, did not write off any accrued income as uncollectible at December 31, 2020. Realized Gains (Losses) The components of net realized gains (losses) for the years ended December 31, were: (millions) 2020 2019 2018 Gross realized gains on security sales Available-for-sale securities: U.S. government obligations $ 612.5 $ 164.4 $ 6.7 State and local government obligations 102.4 6.1 9.5 Corporate and other debt securities 161.9 100.1 2.4 Residential mortgage-backed securities 0 0.2 0 Commercial mortgage-backed securities 23.7 8.1 2.0 Other asset-backed securities 0.2 0.8 0.1 Redeemable preferred stocks 0 2.2 4.5 Total available-for-sale securities 900.7 281.9 25.2 Equity securities: Nonredeemable preferred stocks 24.4 36.2 4.1 Common equities 88.6 61.7 286.6 Total equity securities 113.0 97.9 290.7 Subtotal gross realized gains on security sales 1,013.7 379.8 315.9 Gross realized losses on security sales Available-for-sale securities: U.S. government obligations (9.6) (20.4) (98.7) State and local government obligations (0.7) (0.7) (2.9) Corporate and other debt securities (6.5) (7.9) (10.4) Residential mortgage-backed securities 0 (2.3) (0.1) Commercial mortgage-backed securities (12.8) (2.2) (6.3) Other asset-backed securities 0 (0.1) (1.1) Redeemable preferred stocks 0 (0.4) (0.1) Total available-for-sale securities (29.6) (34.0) (119.6) Equity securities: Nonredeemable preferred stocks (8.7) (3.2) (3.9) Common equities (60.7) (8.0) (21.7) Total equity securities (69.4) (11.2) (25.6) Subtotal gross realized losses on security sales (99.0) (45.2) (145.2) Net realized gains (losses) on security sales Available-for-sale securities: U.S. government obligations 602.9 144.0 (92.0) State and local government obligations 101.7 5.4 6.6 Corporate and other debt securities 155.4 92.2 (8.0) Residential mortgage-backed securities 0 (2.1) (0.1) Commercial mortgage-backed securities 10.9 5.9 (4.3) Other asset-backed securities 0.2 0.7 (1.0) Redeemable preferred stocks 0 1.8 4.4 Total available-for-sale securities 871.1 247.9 (94.4) Equity securities: Nonredeemable preferred stocks 15.7 33.0 0.2 Common equities 27.9 53.7 264.9 Total equity securities 43.6 86.7 265.1 Subtotal net realized gains (losses) on security sales 914.7 334.6 170.7 Net holding period gains (losses) Hybrid securities 7.4 18.0 (10.4) Equity securities 706.5 739.9 (497.5) Derivatives 1.4 0 0 Subtotal net holding period gains (losses) 715.3 757.9 (507.9) Other-than-temporary impairment losses Other asset impairment 0 (63.3) (68.3) Subtotal other-than-temporary impairment losses 0 (63.3) (68.3) Total net realized gains (losses) on securities $ 1,630.0 $ 1,029.2 $ (405.5) Realized gains (losses) on securities sold are computed using the first-in-first-out method. During 2020, we sold U.S. Treasury securities in order to selectively increase holdings across the remainder of the portfolio, predominantly in our corporate debt securities. For 2019 and 2018, the other asset impairment losses related to federal renewable energy tax credit fund investments, which were reported in other assets on the consolidated balance sheets, and are based on an analysis that our investments in those funds will not generate the cash flows that we anticipated. The following table reflects our holding period realized gains (losses) on equity securities recognized for the respective years ended December 31, for equity securities held at the respective year end: (millions) 2020 2019 2018 Total net gains (losses) recognized during the period on equity securities $ 750.1 $ 826.6 $ (232.4) Less: Net gains (losses) recognized on equity securities sold during the period 43.6 86.7 265.1 Net holding period gains (losses) recognized during the period on equity securities held at period end $ 706.5 $ 739.9 $ (497.5) Net Investment Income The components of net investment income for the years ended December 31, were: (millions) 2020 2019 2018 Available-for-sale securities: Fixed maturities: U.S. government obligations $ 166.3 $ 268.6 $ 196.8 State and local government obligations 62.7 36.5 37.7 Corporate debt securities 284.0 268.9 217.9 Residential mortgage-backed securities 11.8 21.6 27.6 Commercial mortgage-backed securities 152.9 150.1 93.9 Other asset-backed securities 96.7 117.3 75.7 Redeemable preferred stocks 14.9 19.0 12.3 Total fixed maturities 789.3 882.0 661.9 Short-term investments 29.0 41.7 52.9 Total available-for-sale securities 818.3 923.7 714.8 Equity securities: Nonredeemable preferred stocks 60.6 61.8 45.9 Common equities 57.7 56.5 59.8 Total equity securities 118.3 118.3 105.7 Investment income 936.6 1,042.0 820.5 Investment expenses (20.0) (24.6) (24.3) Net investment income $ 916.6 $ 1,017.4 $ 796.2 |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE We have categorized our financial instruments, based on the degree of subjectivity inherent in the method by which they are valued, into a fair value hierarchy of three levels, as follows: • Level 1 : Inputs are unadjusted, quoted prices in active markets for identical instruments at the measurement date (e.g., U.S. government obligations, which are continually priced on a daily basis, active exchange-traded equity securities, and certain short-term securities). • Level 2 : Inputs (other than quoted prices included within Level 1) that are observable for the instrument either directly or indirectly (e.g., certain corporate and municipal bonds and certain preferred stocks). This includes: (i) quoted prices for similar instruments in active markets, (ii) quoted prices for identical or similar instruments in markets that are not active, (iii) inputs other than quoted prices that are observable for the instruments, and (iv) inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 : Inputs that are unobservable. Unobservable inputs reflect our subjective evaluation about the assumptions market participants would use in pricing the financial instrument (e.g., certain structured securities and privately held investments). Determining the fair value of the investment portfolio is the responsibility of management. As part of the responsibility, we evaluate whether a market is distressed or inactive in determining the fair value for our portfolio. We review certain market level inputs to evaluate whether sufficient activity, volume, and new issuances exist to create an active market. Based on this evaluation, we concluded that there was sufficient activity related to the sectors and securities for which we obtained valuations. The composition of the investment portfolio by major security type and our outstanding debt was: Fair Value (millions) Level 1 Level 2 Level 3 Total Cost December 31, 2020 Fixed maturities: U.S. government obligations $ 12,740.0 $ 0 $ 0 $ 12,740.0 $ 12,437.9 State and local government obligations 0 3,221.8 0 3,221.8 3,099.4 Corporate debt securities 0 10,185.2 0 10,185.2 9,579.7 Subtotal 12,740.0 13,407.0 0 26,147.0 25,117.0 Asset-backed securities: Residential mortgage-backed 0 509.5 0 509.5 503.3 Commercial mortgage-backed 0 6,175.1 0 6,175.1 6,042.6 Other asset-backed 0 3,784.6 0 3,784.6 3,745.0 Subtotal asset-backed securities 0 10,469.2 0 10,469.2 10,290.9 Redeemable preferred stocks: Financials 0 51.6 0 51.6 51.1 Utilities 0 11.7 0 11.7 10.0 Industrials 10.8 120.6 0 131.4 120.1 Subtotal redeemable preferred stocks 10.8 183.9 0 194.7 181.2 Total fixed maturities 12,750.8 24,060.1 0 36,810.9 35,589.1 Short-term investments 4,704.9 513.6 0 5,218.5 5,218.5 Total available-for-sale securities 17,455.7 24,573.7 0 42,029.4 40,807.6 Equity securities: Nonredeemable preferred stocks: Financials 117.7 1,212.3 35.0 1,365.0 1,278.6 Utilities 0 41.9 0 41.9 40.0 Industrials 0 24.3 16.7 41.0 40.1 Subtotal nonredeemable preferred stocks 117.7 1,278.5 51.7 1,447.9 1,358.7 Common equities: Common stocks 4,049.9 0 0 4,049.9 1,184.2 Other risk investments 0 0 3.1 3.1 3.1 Subtotal common equities 4,049.9 0 3.1 4,053.0 1,187.3 Total equity securities 4,167.6 1,278.5 54.8 5,500.9 2,546.0 Total portfolio $ 21,623.3 $ 25,852.2 $ 54.8 $ 47,530.3 $ 43,353.6 Debt $ 0 $ 6,793.5 $ 0 $ 6,793.5 $ 5,396.1 Fair Value (millions) Level 1 Level 2 Level 3 Total Cost December 31, 2019 Fixed maturities: U.S. government obligations $ 13,251.1 $ 0 $ 0 $ 13,251.1 $ 13,100.7 State and local government obligations 0 1,713.3 0 1,713.3 1,686.0 Corporate debt securities 0 7,067.7 0 7,067.7 6,860.3 Subtotal 13,251.1 8,781.0 0 22,032.1 21,647.0 Asset-backed securities: Residential mortgage-backed 0 627.5 0 627.5 625.0 Commercial mortgage-backed 0 5,076.2 0 5,076.2 5,020.7 Other asset-backed 0 5,179.5 0 5,179.5 5,164.7 Subtotal asset-backed securities 0 10,883.2 0 10,883.2 10,810.4 Redeemable preferred stocks: Financials 0 51.7 0 51.7 51.5 Utilities 0 11.1 0 11.1 10.0 Industrials 11.1 121.1 0 132.2 124.2 Subtotal redeemable preferred stocks 11.1 183.9 0 195.0 185.7 Total fixed maturities 13,262.2 19,848.1 0 33,110.3 32,643.1 Short-term investments 1,797.4 1.4 0 1,798.8 1,798.8 Total fixed maturities and short-term 15,059.6 19,849.5 0 34,909.1 34,441.9 Equity securities: Nonredeemable preferred stocks: Financials 77.4 850.7 27.1 955.2 891.3 Utilities 0 42.3 0 42.3 39.9 Industrials 0 25.4 16.0 41.4 40.1 Subtotal nonredeemable preferred stocks 77.4 918.4 43.1 1,038.9 971.3 Common equities: Common stocks 3,306.0 0 0 3,306.0 1,125.2 Other risk investments 0 0 0.3 0.3 0.3 Subtotal common equities 3,306.0 0 0.3 3,306.3 1,125.5 Total equity securities 3,383.4 918.4 43.4 4,345.2 2,096.8 Total available-for-sale portfolio $ 18,443.0 $ 20,767.9 $ 43.4 $ 39,254.3 $ 36,538.7 Debt $ 0 $ 5,119.6 $ 0 $ 5,119.6 $ 4,407.1 Our portfolio valuations, excluding short-term investments, classified as either Level 1 or Level 2 in the above tables are priced exclusively by external sources, including: pricing vendors, dealers/market makers, and exchange-quoted prices. Our short-term investments classified as Level 1 are highly liquid, actively marketed, and have a very short duration, primarily 90 days or less to redemption. These securities are held at their original cost, adjusted for any accretion of discount, since that value very closely approximates what an active market participant would be willing to pay for such securities. The remainder of our short-term investments are classified as Level 2 and are not priced externally since these securities continually trade at par value. These securities are classified as Level 2 since they are primarily longer-dated securities issued by municipalities that contain either liquidity facilities or mandatory put features within one year. At December 31, 2020, vendor-quoted prices represented 76% of our Level 1 classifications (excluding short-term investments), compared to 80% at December 31, 2019. The securities quoted by vendors in Level 1 primarily represent our holdings in U.S. Treasury Notes, which are frequently traded and the quotes are considered similar to exchange-traded quotes. The balance of our Level 1 pricing comes from quotes obtained directly from trades made on active exchanges. At both December 31, 2020 and 2019, vendor-quoted prices comprised 99% of our Level 2 classifications (excluding short-term investments), while dealer-quoted prices represented 1%. In our process for selecting a source (e.g., dealer or pricing service) to provide pricing for securities in our portfolio, we reviewed documentation from the sources that detailed the pricing techniques and methodologies used by these sources and determined if their policies adequately considered market activity, either based on specific transactions for the particular security type or based on modeling of securities with similar credit quality, duration, yield, and structure that were recently transacted. Once a source is chosen, we continue to monitor any changes or modifications to their processes by reviewing their documentation on internal controls for pricing and market reviews. We review quality control measures of our sources as they become available to determine if any significant changes have occurred from period to period that might indicate issues or concerns regarding their evaluation or market coverage. As part of our pricing procedures, we obtain quotes from more than one source to help us fully evaluate the market price of securities. However, our internal pricing policy is to use a consistent source for individual securities in order to maintain the integrity of our valuation process. Quotes obtained from the sources are not considered binding offers to transact. Under our policy, when a review of the valuation received from our selected source appears to be outside of what is considered market level activity (which is defined as trading at spreads or yields significantly different than those of comparable securities or outside the general sector level movement without a reasonable explanation), we may use an alternate source’s price. To the extent we determine that it may be prudent to substitute one source’s price for another, we will contact the initial source to obtain an understanding of the factors that may be contributing to the significant price variance. To allow us to determine if our initial source is providing a price that is outside of a reasonable range, we review our portfolio pricing on a weekly basis. When necessary, we challenge prices from our sources when a price provided does not match our expectations based on our evaluation of market trends and activity. Initially, we perform a review of our portfolio by sector to identify securities whose prices appear outside of a reasonable range. We then perform a more detailed review of fair values for securities disclosed as Level 2. We review dealer bids and quotes for these and/or similar securities to determine the market level context for our valuations. We then evaluate inputs relevant for each class of securities disclosed in the preceding hierarchy tables. For our structured debt securities, including commercial, residential, and other asset-backed securities, we evaluate available market-related data for these and similar securities related to collateral, delinquencies, and defaults for historical trends and reasonably estimable projections, as well as historical prepayment rates and current prepayment assumptions and cash flow estimates. We further stratify each class of our structured debt securities into more finite sectors (e.g., planned amortization class, first pay, second pay, senior, subordinated, etc.) and use duration, credit quality, and coupon to determine if the fair value is appropriate. For our corporate debt and preferred stock (redeemable and nonredeemable) portfolios, as well as the notes issued by The Progressive Corporation (see Note 4 – Debt ), we review securities by duration, coupon, and credit quality, as well as changes in interest rate and credit spread movements within that stratification. The review also includes recent trades, including: volume traded at various levels that establish a market; issuer specific fundamentals; and industry specific economic news as it comes to light. For our municipal securities (e.g., general obligations, revenue, and housing), we stratify the portfolio to evaluate securities by type, coupon, credit quality, and duration to review price changes relative to credit spread and interest rate changes. Additionally, we look to economic data as it relates to geographic location as an indication of price-to-call or maturity predictors. For municipal housing securities, we look to changes in cash flow projections, both historical and reasonably estimable projections, to understand yield changes and their effect on valuation. Lastly, for our short-term securities, we look at acquisition price relative to the coupon or yield. Since our short-term securities are typically 90 days or less to maturity, with the majority listed in Level 2 being 30 days or less to redemption, we believe that acquisition price is the best estimate of fair value. We also review data assumptions as supplied by our sources to determine if that data is relevant to current market conditions. In addition, we independently review each sector for transaction volumes, new issuances, and changes in spreads, as well as the overall movement of interest rates along the yield curve to determine if sufficient activity and liquidity exists to provide a credible source for our market valuations. During each valuation period, we create internal estimations of portfolio valuation (performance returns), based on current market-related activity (i.e., interest rate and credit spread movements and other credit-related factors) within each major sector of our portfolio. We compare our internally generated portfolio results with those generated based on quotes we receive externally and research material valuation differences. We compare our results to index returns for each major sector adjusting for duration and credit quality differences to better understand our portfolio’s results. Additionally, we review on a monthly basis our external sales transactions and compare the actual final market sales prices to previous market valuation prices. This review provides us further validation that our pricing sources are providing market level prices, since we are able to explain significant price changes (i.e., greater than 2%) as known events occur in the marketplace and affect a particular security’s price at sale. This analysis provides us with additional comfort regarding the source’s process, the quality of its review, and its willingness to improve its analysis based on feedback from clients. We believe this effort helps ensure that we are reporting the most representative fair values for our securities. Except as described below, our Level 3 securities are also priced externally; however, due to several factors (e.g., nature of the securities, level of activity, and lack of similar securities trading to obtain observable market level inputs), these valuations are more subjective in nature. Certain private equity investments included in the Level 3 category are valued using external pricing supplemented by internal review and analysis. After all the valuations are received and our review is complete, if the inputs used by vendors are determined to not contain sufficient observable market information, we will reclassify the affected security valuations to Level 3. At December 31, 2020 and 2019, we did not have any securities in our fixed-maturity portfolio listed as Level 3. At December 31, 2020, we owned four private nonredeemable preferred securities that were priced internally or by a pricing firm, and we held three private nonredeemable preferred securities at December 31, 2019. At December 31, 2020, we held two Level 3 other risk investments that were priced using the cost method, compared to one Level 3 other risk investment at December 31, 2019. To the extent we receive prices from external sources for the Level 3 securities, we would review those prices for reasonableness using internally developed assumptions and then compare our derived prices to the prices we received. During 2020 or 2019, there were no material assets or liabilities measured at fair value on a nonrecurring basis. Based on our review, all prices received from external sources remained unadjusted. Due to the relative size of the Level 3 securities’ fair values compared to the total portfolio’s fair value, any changes in pricing methodology would not have a significant change in valuation that would materially impact net or comprehensive income. The following tables provide a summary of changes in fair value associated with Level 3 assets for the years ended December 31, 2020 and 2019: Level 3 Fair Value (millions) Fair Value at Dec. 31, 2019 Calls/ Purchases Sales Net Realized Change in Net Transfers In (Out) Fair Value at Dec. 31, 2020 Equity securities: Nonredeemable preferred stocks: Financials $ 27.1 $ (27.1) $ 35.0 $ 0 $ 0 $ 0 $ 0 $ 35.0 Industrials 16.0 0 0 0 0 0.7 0 16.7 Common equities: Other risk investments 0.3 0 2.8 0 0 0 0 3.1 Total Level 3 securities $ 43.4 $ (27.1) $ 37.8 $ 0 $ 0 $ 0.7 $ 0 $ 54.8 Level 3 Fair Value (millions) Fair Value at Dec. 31, 2018 Calls/ Purchases Sales Net Realized Change in Net Fair Value at Dec. 31, 2019 Equity securities: Nonredeemable preferred stocks: Financials $ 25.1 $ 0 $ 2.0 $ 0 $ 0 $ 0 $ 0 $ 27.1 Industrials 5.0 0 10.0 0 0 1.0 0 16.0 Common equities: Other risk investments 0.3 0 0 0 0 0 0 0.3 Total Level 3 securities $ 30.4 $ 0 $ 12.0 $ 0 $ 0 $ 1.0 $ 0 $ 43.4 The following tables provide a summary of the quantitative information about Level 3 fair value measurements for our applicable securities at December 31: Quantitative Information about Level 3 Fair Value Measurements ($ in millions) Fair Value at Dec. 31, 2020 Valuation Technique Unobservable Input Unobservable Input Assumption Equity securities: Nonredeemable preferred stocks: Financials 1 $ 25.0 Internal price Unadjusted purchase price per share 3.7 Financials 2 10.0 Internal price Unadjusted purchase price per share 16.9 Industrials 6.9 Pricing firm Market Approach (Guideline Public Company Method) 5.4 Industrials 9.8 Pricing firm Market Approach (Guideline Public Company Method) 4.8 Subtotal Level 3 securities 51.7 Pricing exemption securities 3.1 Total Level 3 securities $ 54.8 1 This security was purchased in May 2020. 2 This security was purchased in November 2020. Quantitative Information about Level 3 Fair Value Measurements ($ in millions) Fair Value at Dec. 31, 2019 Valuation Technique Unobservable Input Unobservable Input Assumption Equity securities: Nonredeemable preferred stocks: Financials $ 27.1 Pricing firm Recent transaction price per share 9.0 Industrials 6.0 Pricing firm Performance-based transaction price adjustment per share 4.8 Industrials 1 10.0 Internal price Unadjusted purchase price per share 4.9 Subtotal Level 3 securities 43.1 Pricing exemption securities 0.3 Total Level 3 securities $ 43.4 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt at December 31, consisted of: 2020 2019 (millions) Carrying Fair Carrying Fair 3.75% Senior Notes due 2021 (issued: $500.0, August 2011) $ 499.8 $ 510.9 $ 499.4 $ 515.6 2.45% Senior Notes due 2027 (issued: $500.0, August 2016) 497.3 541.1 496.9 501.5 6 5/8% Senior Notes due 2029 (issued: $300.0, March 1999) 296.9 409.4 296.6 392.5 4.00% Senior Notes due 2029 (issued: $550.0, October 2018) 545.5 660.4 545.0 614.3 3.20% Senior Notes due 2030 (issued: $500.0, March 2020) 496.1 575.5 0 0 6.25% Senior Notes due 2032 (issued: $400.0, November 2002) 396.0 582.0 395.7 552.6 4.35% Senior Notes due 2044 (issued: $350.0, April 2014) 346.7 459.7 346.7 417.0 3.70% Senior Notes due 2045 (issued: $400.0, January 2015) 395.5 481.0 395.4 434.2 4.125% Senior Notes due 2047 (issued: $850.0, April 2017) 841.7 1,113.1 841.6 986.1 4.20% Senior Notes due 2048 (issued: $600.0, March 2018) 590.0 806.7 589.8 705.8 3.95% Senior Notes due 2050 (issued: $500.0, March 2020) 490.6 653.7 0 0 Total $ 5,396.1 $ 6,793.5 $ 4,407.1 $ 5,119.6 All of the outstanding debt was issued by The Progressive Corporation and includes amounts that were borrowed and contributed to the capital of its insurance subsidiaries or used, or made available for use, for other business purposes. Fair values for these debt instruments are obtained from external sources. There are no restrictive financial covenants or credit rating triggers on the outstanding debt. Interest on all debt is payable semiannually at the stated rates. All principal is due at the stated maturity. Each note is redeemable, in whole or in part, at any time; however, the redemption price will equal the greater of the principal amount of the note or a “make whole” amount calculated by reference to the present values of remaining scheduled principal and interest payments under the note. We issued $500 million of 3.20% Senior Notes due 2030 and $500 million of 3.95% Senior Notes due 2050 in March 2020, in an underwritten public offering. The net proceeds from these issuances, after deducting underwriters’ discounts, commissions, and other issuance costs, were approximately $986.3 million in aggregate. Aggregate required principal payments on debt outstanding at December 31, 2020, were as follows: (millions) Year Payments 2021 $ 500 2022 0 2023 0 2024 0 2025 0 Thereafter 4,950 Total $ 5,450 Prior to certain issuances of our debt securities, we entered into forecasted transactions to hedge against possible rises in interest rates. When the contracts were closed upon the issuance of the applicable debt securities, we recognized the unrealized gains (losses) on these contracts as part of accumulated other comprehensive income (see Note 1 – Reporting and Accounting Policies for further discussion). These unrealized gains (losses) are being amortized as adjustments to interest expense over the life of the related notes. The following table shows the original gain (loss) recognized at debt issuance and the unamortized balance at December 31, 2020, on a pretax basis: (millions) Unrealized Unamortized 3.75% Senior Notes $ (5.1) $ (0.4) 6 5/8% Senior Notes (4.2) (2.2) 6.25% Senior Notes 5.1 3.2 4.35% Senior Notes (1.6) (1.4) 3.70% Senior Notes (12.9) (11.4) 4.125% Senior Notes (8.0) (7.5) We reclassified $1.1 million in 2020, and $1.0 million in 2019 and 2018, of net unrealized losses from accumulated other comprehensive income to interest expense on our closed debt issuance cash flow hedges. During 2020, we renewed the line of credit with PNC Bank, National Association (PNC), in the maximum principal amount of $250 million. Subject to the terms and conditions of the line of credit documents, advances under the line of credit (if any) will bear interest at a variable rate equal to the higher of PNC’s Prime Rate or the sum of the Federal Funds Open Rate plus 175 basis points. Each advance must be repaid on the 30th day after the advance or, if earlier, on April 30, 2021, the expiration date of the line of credit. Prepayments are permitted without penalty. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of our income tax provision for the years ended December 31, were as follows: (millions) 2020 2019 2018 Current tax provision Federal $ 1,395.7 $ 1,133.2 $ 673.1 State 35.6 27.3 21.5 Deferred tax expense (benefit) Federal 35.8 16.8 (145.9) State 1.5 3.0 (6.1) Total income tax provision $ 1,468.6 $ 1,180.3 $ 542.6 The provision for income taxes in the accompanying consolidated statements of comprehensive income differed from the statutory rate for the years ended December 31, as follows: (millions) 2020 2019 2018 Income before income taxes $ 7,173.2 $ 5,160.3 $ 3,163.6 Tax at statutory federal rate $ 1,506.4 21 % $ 1,083.7 21 % $ 664.4 21 % Tax effect of: Reversal of prior year tax credits 0 0 163.2 3 0 0 Tax credits 1 (5.4) 0 (43.9) (1) (76.3) (2) Stock-based compensation (22.7) (1) (25.9) (1) (25.1) (1) Tax-deductible dividends (25.1) (1) (14.6) 0 (14.6) 0 Tax-preferenced investment income (15.2) 0 (14.0) 0 (15.6) (1) Nondeductible compensation expense 6.4 0 8.1 0 (0.2) 0 State income taxes, net of federal taxes 29.3 1 24.0 1 12.2 0 Other items, net (5.1) 0 (0.3) 0 (2.2) 0 Total income tax provision $ 1,468.6 20 % $ 1,180.3 23 % $ 542.6 17 % 1 Includes $0, $38.1 million, and $71.0 million for 2020, 2019, and 2018, respectively, of benefits on investments in federal renewable energy tax credit funds. In late December 2018, we learned of allegations of potential fraudulent conduct by the sponsor of three tax credit fund investments we made from 2016 through 2018, including information about ongoing federal investigations. Based on our investigations and other information that became available to us, we concluded the sponsor had committed fraud through these tax credit funds and that all the tax credits and other tax benefits related to those investments were not valid. As a result, during 2019, we increased our provision for income taxes by $163.2 million ($252.0 million current income taxes payable, offset by $88.8 million reduction of deferred tax liability), principally reflecting the total reversal of the tax credits and other tax benefits previously recognized from certain renewable energy investments, plus interest. In addition, we paid $100.0 million related to the 2018 tax year, which reduced net taxes payable, and made protective deposits of $152.1 million for tax years 2017 and 2016. During 2020, $48.8 million of this deposit was applied against our 2016 tax liability, including interest. The remaining protective deposit of $103.3 million is included in other assets on our consolidated balance sheets. The principals of the sponsor and various other individuals have pleaded guilty to federal criminal charges relating to the fraudulent tax credit funds. Deferred income taxes reflect the effect for financial statement reporting purposes of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities. The following table shows the components of the net deferred tax asset (liability) at December 31, 2020 and 2019, respectively. (millions) 2020 2019 Federal deferred income tax assets: Unearned premiums reserve $ 552.5 $ 498.2 Non-deductible accruals 238.2 181.8 Loss and loss adjustment expense reserves 170.0 153.3 Operating lease liabilities 37.4 42.3 Investment basis difference 18.6 27.4 Hedges on forecasted transactions 4.1 4.4 Other 25.8 15.3 Federal deferred income tax liabilities: Net holding period gains on equity securities (620.5) (472.2) Deferred acquisition costs (259.8) (221.9) Net unrealized gains on fixed-maturity securities (253.4) (96.5) Property and equipment (105.6) (108.6) Loss and loss adjustment expense reserve transition adjustment (39.3) (47.2) Operating lease assets (37.4) (42.3) Intangible assets (27.6) (38.9) Prepaid expenses (5.5) (4.8) Other (7.5) (8.3) Net federal deferred income taxes (310.0) (118.0) State deferred income tax assets 1 11.9 15.2 State deferred income tax liabilities 1 (4.0) (1.2) Total $ (302.1) $ (104.0) 1 Recorded in “other assets” and “accounts payable, accrued expenses, and other liabilities,” respectively, on the consolidated balance sheets; the prior year amounts were reclassified into these line items from “net federal deferred income taxes” to conform to the current year presentation. Although realization of the deferred tax assets is not assured, management believes that it is more likely than not that the deferred tax assets will be realized based on our expectation that we will be able to fully utilize the deductions that are ultimately recognized for tax purposes and, therefore, no valuation allowance was needed at December 31, 2020 or 2019. At December 31, 2020 and 2019, we had $163.5 million and $224.0 million, respectively, of net taxes payable (included in other liabilities on our consolidated balance sheets). Net taxes payable included the impact from the reversal of the tax credit benefits for 2017 and 2016. The Progressive Corporation and its subsidiaries file a consolidated federal income tax return. Effective April 2018, we acquired additional shares of ARX Holding Corp. (“ARX”) to increase our ownership above 80%. As a result, ARX and its subsidiaries were first included in The Progressive Corporation consolidated federal income tax return for the period from April 2018 to December 31, 2018. ARX filed a final consolidated federal income tax return with its subsidiaries for the period from January to March 2018. The Progressive Corporation and its eligible subsidiaries participated in the Compliance Assurance Program (CAP) from 2007 through 2018. Under CAP, the IRS begins its examination process for the tax year before the tax return is filed, by examining significant transactions and events as they occur; however, a CAP examination does not include equity investments in pass-through entities in which the taxpayer owns less than 100% (e.g., partnerships, joint ventures, etc.). The goal of the CAP program is to expedite the exam process and to reduce the level of uncertainty regarding a taxpayer’s tax filing positions. All federal income tax years prior to 2017 are closed to examination for The Progressive Corporation. The IRS CAP exams for 2017 and 2018 for The Progressive Corporation have been completed and the returns were accepted as filed. We consider these years to be effectively settled (other than with respect to equity investments in pass-through entities). The 2019 and 2020 tax years remain open to examination. For the tax year ended March 2018, and for 2017 and prior years, ARX and its eligible subsidiaries filed their own consolidated federal income tax returns. All tax years prior to 2017 are closed and the 2017 and short 2018 tax years remain open to examination. The statute of limitations for state income tax purposes generally remains open for three to four years from the return filing date, depending upon the jurisdiction. There has been no significant state income tax audit activity. |
Loss And Loss Adjustment Expens
Loss And Loss Adjustment Expense Reserves | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Loss And Loss Adjustment Expense Reserves | LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES We write personal and commercial auto insurance, residential property insurance, and other specialty property-casualty insurance and related services throughout the United States. As a property-casualty insurance company, we are exposed to hurricanes or other catastrophes. We are unable to predict the frequency or severity of any such events that may occur in the near term or thereafter. To help mitigate this risk in our Property business, we currently maintain excess of loss reinsurance coverage, both on an aggregate and a per occurrence basis, and had aggregate stop-loss reinsurance coverage covering accident years 2017 to 2019. As we are primarily an insurer of motor vehicles and residential property, we have limited exposure to environmental, asbestos, and general liability claims. We have established reserves for such exposures, which represent about 0.1% of our total loss and loss adjustment expense reserves. We believe these reserves to be adequate based on information currently known. These claims are not expected to have a material effect on our liquidity, financial condition, cash flows, or results of operations. Loss and Loss Adjustment Expense Reserves Loss and loss adjustment expense (LAE) reserves represent our best estimate of our ultimate liability for losses and LAE relating to events that occurred prior to the end of any given accounting period but have not yet been paid. For our Personal and Commercial Lines vehicle businesses, which represent about 94% of our total carried reserves, we establish loss and LAE reserves after completing reviews at a disaggregated level of grouping. Progressive’s actuarial staff reviews over 400 subsets of business data, which are at a combined state, product, and line coverage level, to calculate the needed loss and LAE reserves. During a reserve review, ultimate loss amounts are estimated using several industry standard actuarial projection methods. These methods take into account historical comparable loss data at the subset level and estimate the impact of various loss development factors, such as the frequency (number of losses per earned car year), severity (dollars of loss per each claim), and average premium (dollars of premium per earned car year), as well as the frequency and severity of loss adjustment expense costs. We begin our review of a set of data by producing multiple estimates of needed reserves, using both paid and incurred data, to determine if a reserve change is required. In the event of a wide variation among results generated by the different projections, our actuarial group will further analyze the data using additional quantitative analysis. Each review develops a point estimate for a relatively small subset of the business, which allows us to establish meaningful reserve levels for that subset. We believe our comprehensive process of reviewing at a subset level provides us more meaningful estimates of our aggregate loss reserves. The actuarial staff completes separate projections of needed case and incurred but not recorded (IBNR) reserves. Since a large majority of the parties involved in an accident report their claims within a short time period after the occurrence, we do not carry a significant amount of IBNR reserves for older accident years. Based on the methodology we use to estimate case reserves for our vehicle businesses, we do not have expected development on reported claims included in our IBNR reserves. We do, however, include anticipated salvage and subrogation recoveries in our IBNR reserves, which could result in negative carried IBNR reserves, primarily in our physical damage reserves. Changes from historical data may reduce the predictiveness of our projected future loss costs. Internal considerations that are process-related, which generally result from changes in our claims organization’s activities, include claim closure rates, the number of claims that are closed without payment, and the level of the claims representatives’ estimates of the needed case reserve for each claim. These changes and their effect on the historical data are studied at the state level versus on a larger, less indicative, countrywide basis. External items considered include the litigation atmosphere, state-by-state changes in medical costs, and the availability of services to resolve claims. These also are better understood at the state level versus at a more macro, countrywide level. The actuarial staff takes these changes into consideration when making their assumptions to determine needed reserve levels. Similar to our vehicle businesses, our actuarial staff analyzes loss and LAE data for our Property business on an accident period basis. Many of the methodologies and key parameters reviewed are similar. In addition, for our Property business, since claims adjusters primarily establish the case reserves, the actuarial staff includes expected development on case reserves as a component of the overall IBNR reserves. Activity in the loss and LAE reserves is summarized as follows: (millions) 2020 2019 2018 Balance at January 1 $ 18,105.4 $ 15,400.8 $ 13,086.9 Less reinsurance recoverables on unpaid losses 3,212.2 2,572.7 2,170.1 Net balance at January 1 14,893.2 12,828.1 10,916.8 Incurred related to: Current year 24,926.5 25,238.2 21,632.5 Prior years 195.3 232.3 88.5 Total incurred 25,121.8 25,470.5 21,721.0 Paid related to: Current year 15,584.4 16,105.0 13,792.1 Prior years 7,963.0 7,300.4 6,017.6 Total paid 23,547.4 23,405.4 19,809.7 Net balance at December 31 16,467.6 14,893.2 12,828.1 Plus reinsurance recoverables on unpaid losses 3,798.2 3,212.2 2,572.7 Balance at December 31 $ 20,265.8 $ 18,105.4 $ 15,400.8 We experienced unfavorable reserve development of $195.3 million, $232.3 million, and $88.5 million in 2020, 2019, and 2018, respectively, which is reflected as “Incurred related to prior years” in the table above. 2020 • Approximately $59 million of the unfavorable prior year reserve development was attributable to accident year 2019, $107 million to accident year 2018, and the remainder to 2017 and prior accident years. • Our personal auto products incurred about $136 million of unfavorable loss and LAE reserve development, with the Agency and Direct auto businesses each contributing about half, primarily attributable to higher than anticipated frequency of reopened personal injury protection (PIP) claims, primarily in Florida, updated estimates of our per claim settlement costs, and late reported losses occurring toward the end of 2019 but not reported until 2020, which was partially offset by higher than anticipated salvage and subrogation recoveries. • Our Commercial Lines business experienced about $98 million of unfavorable development, primarily due to increased injury severity and the emergence of large injury claims at rates higher than originally anticipated. • Our special lines and Property businesses experienced about $25 million and $14 million, respectively, of favorable development driven by favorable case development across all products, as severity was lower than expected. 2019 • Approximately $131 million of the unfavorable prior year reserve development was attributable to accident year 2018, $73 million to accident year 2017, and the remainder to 2016 and prior accident years. • Our personal auto products incurred about $121 million of unfavorable loss and LAE reserve development, with the Agency and Direct auto businesses each contributing about half, primarily reflecting increased injury severity, a higher than anticipated frequency of reopened PIP claims, primarily in Florida, and late reported losses occurring late 2018 but not reported until 2019. • Our Commercial Lines business experienced about $83 million of unfavorable development, primarily due to increased injury severity and more emergence of large injury claims than originally anticipated. • Our special lines business experienced about $14 million of unfavorable development, primarily due to less salvage and subrogation recoveries than originally anticipated and increased severity of late reported claims. • Our Property businesses experienced about $12 million of unfavorable development, primarily due to higher than originally anticipated homeowner and dwelling costs and fire liability costs. 2018 • Approximately $99 million of unfavorable prior year reserve development was attributable to accident years 2017 and 2016. This unfavorable development was offset by about $10 million of favorable development attributable to accident year 2015 and prior accident years. • Our personal auto products incurred almost $85 million of unfavorable loss and LAE reserve development, with approximately 70% attributable to the Agency business and 30% attributable to the Direct business, primarily reflecting unfavorable development from reopened Florida PIP claims. • Our special lines and Property businesses experienced about $5 million and $3 million of unfavorable development, respectively, while our commercial auto products had about $4 million of favorable reserve development. Incurred and Paid Claims Development by Accident Year The following tables present our incurred, net of reinsurance, and paid claims development by accident year for the last five years, which generally represents the maximum development period for claims in any of our segments. The tables below include inception-to-date information for companies acquired and wholly exclude companies disposed of, rather than including information from the date of acquisition, or until the date of disposition. We believe the most meaningful presentation of claims development is through the retrospective approach by presenting all relevant historical information for all periods presented. We have elected to present our incurred and paid claims development consistent with our GAAP reportable segments (see Note 10 – Segment Information for a discussion of our segment reporting), with a further disaggregation of our Personal Lines and Commercial Lines claims development between liability and physical damage, since the loss patterns are significantly different between them. The other business primarily includes reserves for our run-off products, which are not considered material, and, therefore, we are not including separate claims development tables. Only 2020 is audited; all prior years are considered required supplementary information and, therefore, are unaudited. Expected development on our case reserves is excluded from the IBNR reserves on our vehicle businesses, as discussed above. For the Property business, the IBNR reserves include expected case development based on the methodology used in establishing the case reserves for that segment. The cumulative number of incurred claims are based on accident coverages (e.g., bodily injury, collision, comprehensive, personal injury protection, property damage) related to opened claims. Coverage counts related to claims closed without payment are excluded from the cumulative number of incurred claims. Personal Lines - Agency - Liability ($ in millions) As of Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2020 For the years ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Incurred Claim Counts Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 4,082.9 $ 4,130.0 $ 4,152.0 $ 4,177.3 $ 4,137.8 $ 0 740,535 2017 4,474.8 4,485.8 4,511.1 4,546.4 72.3 779,303 2018 5,141.8 5,182.1 5,192.7 100.0 856,108 2019 5,885.0 5,886.9 264.3 913,063 2020 5,433.8 926.8 750,654 Total $ 25,197.6 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the years ended December 31, Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 1,941.6 $ 3,231.5 $ 3,723.1 $ 3,969.5 $ 4,062.5 2017 2,074.0 3,478.5 4,048.5 4,285.5 2018 2,378.0 4,028.7 4,635.0 2019 2,715.2 4,533.2 2020 2,383.0 Total $ 19,899.2 All outstanding liabilities before 2016, net of reinsurance 1 80.3 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 5,378.7 1 Required supplementary information (unaudited) Personal Lines - Agency - Physical Damage ($ in millions) As of Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2020 For the years ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Incurred Claim Counts Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 2,423.4 $ 2,398.9 $ 2,401.8 $ 2,400.1 $ 2,402.8 $ 0 1,399,156 2017 2,635.5 2,638.5 2,643.5 2,640.6 (4.0) 1,514,873 2018 2,819.0 2,822.6 2,821.7 (3.4) 1,694,997 2019 3,277.9 3,254.7 (13.4) 1,876,942 2020 3,328.5 (183.4) 1,768,482 Total $ 14,448.3 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the years ended December 31, Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 2,391.0 $ 2,406.9 $ 2,402.1 $ 2,402.2 $ 2,401.8 2017 2,599.8 2,643.2 2,640.9 2,640.8 2018 2,769.1 2,827.4 2,819.9 2019 3,242.5 3,259.2 2020 3,250.1 Total $ 14,371.8 All outstanding liabilities before 2016, net of reinsurance 1 5.9 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 82.4 1 Required supplementary information (unaudited) Personal Lines - Direct - Liability ($ in millions) As of Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2020 For the years ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Incurred Claim Counts Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 3,819.0 $ 3,843.9 $ 3,871.2 $ 3,897.8 $ 3,866.1 $ 0 735,791 2017 4,209.5 4,209.9 4,229.3 4,254.4 61.3 772,986 2018 4,904.8 4,980.9 5,003.2 88.0 870,978 2019 5,756.5 5,811.7 243.5 954,209 2020 5,356.9 901.1 786,809 Total $ 24,292.3 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the years ended December 31, Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 1,780.6 $ 2,991.1 $ 3,476.9 $ 3,714.6 $ 3,799.1 2017 1,912.6 3,255.2 3,808.3 4,035.6 2018 2,235.1 3,863.5 4,481.7 2019 2,630.3 4,452.5 2020 2,301.3 Total $ 19,070.2 All outstanding liabilities before 2016, net of reinsurance 1 55.2 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 5,277.3 1 Required supplementary information (unaudited) Personal Lines - Direct - Physical Damage ($ in millions) As of Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2020 For the years ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Incurred Claim Counts Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 2,521.0 $ 2,475.4 $ 2,477.7 $ 2,475.6 $ 2,478.5 $ 0 1,676,396 2017 2,750.6 2,743.7 2,749.0 2,745.6 (5.1) 1,791,582 2018 3,202.3 3,181.9 3,182.0 (5.1) 2,069,684 2019 3,787.9 3,737.8 (22.7) 2,269,857 2020 3,775.6 (264.5) 2,137,810 Total $ 15,919.5 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the years ended December 31, Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 2,505.0 $ 2,485.8 $ 2,479.3 $ 2,478.5 $ 2,477.8 2017 2,742.1 2,753.5 2,748.4 2,747.6 2018 3,170.0 3,193.8 3,183.0 2019 3,782.6 3,751.3 2020 3,720.0 Total $ 15,879.7 All outstanding liabilities before 2016, net of reinsurance 1 0.8 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 40.6 1 Required supplementary information (unaudited) Commercial Lines - Liability ($ in millions) As of Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2020 For the years ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Incurred Claim Counts Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 1,185.8 $ 1,204.8 $ 1,231.1 $ 1,238.9 $ 1,224.9 $ 0 92,688 2017 1,374.1 1,366.6 1,393.3 1,374.6 18.3 97,448 2018 1,700.8 1,736.5 1,789.7 41.5 111,767 2019 2,103.1 2,175.6 116.3 126,959 2020 2,161.8 369.8 105,900 Total $ 8,726.6 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the years ended December 31, Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 298.6 $ 639.9 $ 886.0 $ 1,073.3 $ 1,153.4 2017 325.8 712.9 1,027.3 1,183.6 2018 382.7 913.4 1,290.5 2019 455.4 1,120.1 2020 427.6 Total $ 5,175.2 All outstanding liabilities before 2016, net of reinsurance 1 34.9 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 3,586.3 1 Required supplementary information (unaudited) Commercial Lines - Physical Damage ($ in millions) As of Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2020 For the years ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Incurred Claim Counts Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 379.6 $ 379.8 $ 378.2 $ 377.8 $ 378.1 $ 0 74,199 2017 415.4 412.1 411.0 409.9 (0.9) 77,170 2018 475.0 478.2 476.6 (1.4) 82,134 2019 577.8 574.2 (3.3) 88,897 2020 575.2 (14.1) 87,333 Total $ 2,414.0 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the years ended December 31, Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 336.7 $ 376.9 $ 376.8 $ 377.5 $ 377.6 2017 369.0 409.4 409.2 409.4 2018 426.0 475.1 475.3 2019 516.9 571.5 2020 497.9 Total $ 2,331.7 All outstanding liabilities before 2016, net of reinsurance 1 0.4 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 82.7 1 Required supplementary information (unaudited) Property Business ($ in millions) As of Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2020 For the years ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Incurred Claim Counts Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 568.6 $ 541.2 $ 537.1 $ 536.5 $ 535.5 $ 2.4 53,693 2017 672.8 680.9 683.4 681.3 1.3 74,140 2018 839.0 845.2 845.4 18.2 63,722 2019 971.7 965.2 11.7 72,396 2020 1,223.5 252.4 80,820 Total $ 4,250.9 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the years ended December 31, Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 415.2 $ 498.2 $ 516.9 $ 526.4 $ 530.8 2017 506.7 647.1 670.1 675.0 2018 595.9 781.2 812.6 2019 708.0 930.4 2020 832.5 Total $ 3,781.3 All outstanding liabilities before 2016, net of reinsurance 1 5.1 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 474.7 1 Required supplementary information (unaudited) The following table reconciles the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses: (millions) 2020 2019 Net outstanding liabilities Personal Lines Agency, Liability $ 5,378.7 $ 5,117.4 Agency, Physical Damage 82.4 32.4 Direct, Liability 5,277.3 4,936.8 Direct, Physical Damage 40.6 (7.7) Commercial Lines Liability 3,586.3 3,080.8 Physical Damage 82.7 66.6 Property 474.7 357.2 Other business 66.7 30.8 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance 14,989.4 13,614.3 Reinsurance recoverable on unpaid claims Personal Lines Agency, Liability 959.6 930.7 Agency, Physical Damage 0 0 Direct, Liability 1,475.8 1,314.1 Direct, Physical Damage 0 0 Commercial Lines Liability 758.5 482.6 Physical Damage (0.3) 0.5 Property 226.9 184.1 Other business 358.6 288.1 Total reinsurance recoverable on unpaid claims 3,779.1 3,200.1 Unallocated claims adjustment expense related to: Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance 1,478.2 1,278.9 Reinsurance recoverable on unpaid claims 19.1 12.1 Total gross liability for unpaid claims and claim adjustment expense $ 20,265.8 $ 18,105.4 The following table shows the average historical claims duration as of December 31, 2020: (Required Supplementary Information - Unaudited) Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 Personal Lines Agency, Liability 45.6% 31.2% 12.0% 5.6% 2.2% Agency, Physical Damage 98.6 1.2 (0.2) 0 0 Direct, Liability 44.7 31.7 12.6 5.7 2.2 Direct, Physical Damage 100.0 (0.1) (0.3) 0 0 Commercial Lines Liability 21.7 29.3 21.4 13.2 6.5 Physical Damage 88.9 10.0 0 0.1 0 Property 71.9 20.8 3.5 1.2 0.8 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCE The effect of reinsurance on premiums written and earned for the years ended December 31, was as follows: 2020 2019 2018 (millions) Written Earned Written Earned Written Earned Direct premiums $ 41,736.4 $ 40,687.7 $ 39,222.0 $ 37,519.7 $ 33,753.1 $ 31,970.2 Ceded premiums: Regulated (648.2) (686.5) (711.1) (670.8) (596.4) (557.5) Non-Regulated (519.5) (739.6) (933.0) (656.5) (546.8) (479.4) Total ceded premiums (1,167.7) (1,426.1) (1,644.1) (1,327.3) (1,143.2) (1,036.9) Net premiums $ 40,568.7 $ 39,261.6 $ 37,577.9 $ 36,192.4 $ 32,609.9 $ 30,933.3 Regulated refers to federal or state run plans and primarily include the following: • Federal reinsurance plan ◦ National Flood Insurance Program (NFIP) • State-provided reinsurance facilities ◦ Michigan Catastrophic Claims Association (MCCA) ◦ North Carolina Reinsurance Facility (NCRF) ◦ Florida Hurricane Catastrophe Fund (FHCF) • State-mandated involuntary plans ◦ Commercial Automobile Insurance Procedures/Plans (CAIP) Non-Regulated represents voluntary external reinsurance contracts entered into by the company. These include amounts ceded on our Commercial Lines business primarily related to transportation network company (TNC) business under quota-share reinsurance agreements and amounts ceded on our Property business under catastrophic occurrence excess of loss, aggregate excess of loss, beginning January 1, 2020, and, for accident years 2017-2019, aggregate stop-loss reinsurance agreements. At December 31, 2020, we wrote TNC business in 20 states and the District of Columbia, compared to 17 states and 4 states at year-end 2019 and 2018, respectively. While expanding our footprint in the TNC business increased our ceded written premium in 2019, during 2020 the impact of this expansion was mitigated by a significant decrease in vehicle miles driven, which was attributable to COVID-19 restrictions. Premiums written on TNC policies are estimated based on projections of miles driven during the policy term, and such estimates are revised monthly based on actual miles driven and revised estimates of miles driven for the remaining policy term. The increase in ceded earned premiums in both 2020 and 2019 reflects the growth in the TNC business. Our reinsurance recoverables and prepaid reinsurance premiums were comprised of the following at December 31: Reinsurance Recoverables Prepaid Reinsurance Premiums ($ in millions) 2020 2019 2020 2019 Regulated: MCCA $ 2,428.8 60 % $ 2,247.1 67 % $ 33.3 9 % $ 71.8 12 % CAIP 397.8 10 332.4 10 84.7 23 93.8 15 NCRF 88.6 2 84.4 2 41.9 11 33.8 5 FHCF 54.8 1 86.0 3 0 0 0 0 NFIP 24.2 1 11.6 0 60.7 17 58.7 9 Other 3.2 0 3.1 0 1.3 0 1.0 0 Total Regulated 2,997.4 74 2,764.6 82 221.9 60 259.1 41 Non-Regulated: Commercial Lines 753.2 19 459.5 14 134.5 37 352.9 56 Property 261.7 7 146.8 4 11.7 3 14.5 3 Other 7.1 0 8.0 0 0 0 0 0 Total Non-Regulated 1,022.0 26 614.3 18 146.2 40 367.4 59 Total $ 4,019.4 100 % $ 3,378.9 100 % $ 368.1 100 % $ 626.5 100 % The increase in our reinsurance recoverables on our Commercial Lines business primarily reflects the growth in the TNC business, while the decrease in the prepaid reinsurance premiums is due to the reduction of premiums written due to the COVID-19 restrictions as discussed above. Reinsurance contracts do not relieve us from our obligations to policyholders. Failure of reinsurers to honor their obligations could result in losses to us. Our exposure to losses from the failure of Regulated plans is minimal, since these plans are funded by the federal government or by mechanisms supported by insurance companies in applicable states. We evaluate the financial condition of our other reinsurers and monitor concentrations of credit risk to minimize our exposure to significant losses from reinsurer insolvencies. We routinely monitor changes in the credit quality and concentration risks of the reinsurers who are counter |
Statutory Financial Information
Statutory Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Statutory Financial Information Disclosures [Abstract] | |
Statutory Financial Information | STATUTORY FINANCIAL INFORMATION Consolidated statutory surplus was $15,194.6 million and $13,671.1 million at December 31, 2020 and 2019, respectively. Statutory net income was $4,911.4 million, $3,489.7 million, and $2,643.0 million for the years ended December 31, 2020, 2019, and 2018, respectively. At December 31, 2020, $1,142.0 million of consolidated statutory surplus represented net admitted assets of our insurance subsidiaries and affiliates that are required to meet minimum statutory surplus requirements in such entities’ states of domicile. The companies may be licensed in states other than their states of domicile, which may have higher minimum statutory surplus requirements. Generally, the net admitted assets of insurance companies that, subject to other applicable insurance laws and |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefit Plans Disclosures [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Retirement Plans Progressive has a defined contribution pension plan (401(k) Plan) that covers employees who have been employed with the company for at least 30 days. Under Progressive’s 401(k) Plan, we match up to a maximum of 6% of an employee’s eligible compensation contributed to the plan. Employee and company matching contributions are invested, at the direction of the employee, in a number of investment options available under the plan, including various mutual funds, a self-directed brokerage option, and a Progressive common stock fund. Progressive’s common stock fund is an employee stock ownership program (ESOP) within the 401(k) Plan. At December 31, 2020, the ESOP held 21.5 million of our common shares, all of which are included in shares outstanding. Dividends on these shares are reinvested in common shares or paid out in cash, at the election of the participant, and the related tax benefit is recorded as part of our tax provision. Matching contributions to these plans for the years ended December 31, 2020, 2019, and 2018 were $131.2 million, $120.8 million, and $106.8 million, respectively. Postemployment Benefits Progressive provides various postemployment benefits to former or inactive employees who meet eligibility requirements, and to their beneficiaries and covered dependents. Postemployment benefits include salary continuation and disability-related benefits, including workers’ compensation and, if elected, continuation of health-care benefits for specified limited periods. The liability for these benefits was $24.1 million and $22.2 million at December 31, 2020 and 2019, respectively. Incentive Compensation Plans – Employees Progressive’s incentive compensation programs include both non-equity incentive plans (cash) and equity incentive plans. Progressive’s cash incentive compensation included an annual cash incentive program (i.e., Gainsharing Program) for virtually all employees. Progressive’s equity incentive compensation plans provide for the granting of restricted stock unit awards to key members of management . The amounts charged to expense for incentive compensation plans for the years ended December 31, were: 2020 2019 2018 (millions) Pretax After Tax Pretax After Tax Pretax After Tax Non-equity incentive plans – cash $ 688.8 $ 544.2 $ 598.4 $ 472.7 $ 539.5 $ 426.2 Equity incentive plans: Equity awards 89.4 70.6 90.1 71.2 76.2 60.2 Liability awards 1 0 0 0.1 0.1 1.0 0.8 1 Relates to stock options granted to key employees of ARX, which were exercised in 2020. See Note 15 – Redeemable Noncontrolling Interest for further discussion. Under Progressive’s 2015 Equity Incentive Plan, which provides for the granting of equity-based compensation to officers and other key employees, 17.0 million shares, in the aggregate, were authorized for issuance. The restricted equity awards are issued as either time-based or performance-based awards. Generally, equity awards are expensed pro rata over their respective vesting periods, based on the market value of the awards at the time of grant, with accelerated expense for participants who reach qualified retirement provisions. The time-based awards vest in equal installments upon the lapse of specified periods of time, typically three four Performance-based awards that contain variable vesting criteria are expensed based on management’s expectation of the percentage of the award, if any, that will ultimately vest. These estimates can change periodically throughout the measurement period. Vesting of performance-based awards is contingent upon the achievement of pre-determined performance goals within specified time periods. The performance-based awards were granted to executives and other senior managers in 2020, in addition to their time-based awards, to provide additional incentive to achieve pre-established profitability and growth targets or relative investment performance. The targets for the performance-based awards, as well as the number of units that ultimately may vest, vary by grant. The details of the performance-based equity awards that were outstanding at December 31, 2020, are as follows: Performance Measurement Year(s) of Grant Vesting range (as a percentage of target) Growth of our personal auto and commercial auto businesses and homeowners multi-peril business, each compared to its respective market 2018-2020 0-250% Investment results relative to peer group 2018-2020 0-200% All restricted equity awards are settled at or after vesting in Progressive common shares from existing treasury shares on a one-to-one basis. A summary of all employee restricted equity award activity during the years ended December 31, follows: 2020 2019 2018 Restricted Equity Awards Number of Shares 1 Weighted Number of Shares 1 Weighted Number of Shares 1 Weighted Beginning of year 3,879,077 $ 48.28 4,856,356 $ 38.56 5,858,848 $ 30.47 Add (deduct): Granted 2 1,629,534 55.28 1,835,145 49.61 1,876,109 45.55 Vested (1,861,442) 36.19 (2,691,337) 31.85 (2,811,070) 26.41 Forfeited (76,898) 52.79 (121,087) 43.98 (67,531) 36.10 End of year 3,4 3,570,271 $ 57.68 3,879,077 $ 48.28 4,856,356 $ 38.56 1 Includes restricted stock units. All performance-based awards are included at their target amounts. 2 We reinvest dividend equivalents on restricted stock units. For 2020, 2019, and 2018, the number of units “granted” shown in the table above includes 144,389, 210,159, and 144,688 of dividend equivalent units, respectively, at a weighted average grant date fair value of $0, since the dividends were factored into the grant date fair value of the original grant. 3 At December 31, 2020, the number of shares included 707,293 performance-based units at their target amounts. We expect 1,658,308 units to vest based upon our current estimates of the likelihood of achieving the pre-determined performance goals applicable to each award. 4 At December 31, 2020, the total unrecognized compensation cost related to unvested equity awards was $102.1 million, which includes performance-based awards at their currently estimated vesting value. This compensation expense will be recognized into the consolidated statements of comprehensive income over the weighted average vesting period of 2.3 years. The aggregate fair value of the restricted equity awards that vested during the years ended December 31, 2020, 2019, and 2018, was $148.9 million, $191.6 million, and $162.7 million, respectively, based on the actual stock price on the applicable vesting date. Incentive Compensation Plans – Directors Progressive’s 2017 Directors Equity Incentive Plan, which provides for the granting of equity-based awards, including restricted stock awards, to non-employee directors, was approved by shareholders in 2017 and originally authorized awards for up to 0.5 million shares. The Progressive Corporation permits each non-employee director to indicate a preference to receive either 100% of their compensation in the form of a restricted stock award or 60% in the form of a restricted stock award and 40% in the form of cash. If the director does not state a preference, it is presumed that he or she preferred to receive 100% of their compensation in the form of restricted stock. After considering such preferences, the Compensation Committee of the Board of Directors determines the awards (restricted stock, or restricted stock and cash) for each non-employee director. The restricted stock awards are issued as time-based awards. The vesting period (i.e., requisite service period) is typically 11 months from the date of each grant. To the extent a director is newly appointed during the year, or a director’s committee assignments change, the vesting period may be shorter. Both the restricted stock awards and cash, if elected, are expensed pro rata over their respective vesting periods based on the market value of the awards at the time of grant. A summary of all directors’ restricted stock activity during the years ended December 31, follows: 2020 2019 2018 Restricted Stock Number of Weighted Number of Weighted Number of Weighted Beginning of year 38,451 $ 73.43 41,706 $ 62.23 53,284 $ 40.54 Add (deduct): Granted 39,403 74.77 38,451 73.43 41,706 62.23 Vested (38,451) 73.43 (41,706) 62.23 (53,284) 40.54 End of year 1 39,403 $ 74.77 38,451 $ 73.43 41,706 $ 62.23 1 At December 31, 2020, 2019, and 2018, the remaining unrecognized compensation cost related to restricted stock awards was $0.9 million, $0.8 million, and $0.9 million, respectively. The aggregate fair value of the restricted stock vested during the years ended December 31, 2020, 2019, and 2018, was $3.0 million, $3.0 million, and $3.2 million, respectively, based on the actual stock price at time of vesting. Deferred Compensation The Progressive Corporation Executive Deferred Compensation Plan (Deferral Plan) permits eligible Progressive executives to defer receipt of some or all of their annual incentive payments and all of their annual equity awards. Deferred cash compensation is deemed invested in one or more investment funds, including Progressive common shares, offered under the Deferral Plan and elected by the participant. All Deferral Plan distributions attributable to deferred cash compensation will be paid in cash. For all equity awards granted in or after March 2005, and deferred pursuant to the Deferral Plan, the deferred amounts are deemed invested in our common shares and are ineligible for transfer to other investment funds in the Deferral Plan; distributions of these deferred awards will be made in Progressive common shares. For all restricted stock awards granted prior to that date, the deferred amounts are eligible to be transferred to any of the investment funds in the Deferral Plan; distributions of these deferred awards will be made in cash. We reserved 11.1 million of our common shares for issuance under the Deferral Plan. An irrevocable grantor trust has been established to provide a source of funds to assist us in meeting our liabilities under the Deferral Plan. The Deferral Plan Irrevocable Grantor Trust account held the following assets at December 31: (millions) 2020 2019 Progressive common shares 1 $ 134.2 $ 121.6 Other investment funds 2 167.2 151.2 Total $ 301.4 $ 272.8 1 Included 2.8 million and 3.2 million common shares as of December 31, 2020 and 2019, respectively, to be distributed in common shares, and are reported at grant date fair value. 2 Amount is included in other assets on the consolidated balance sheets. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION We write personal and commercial auto insurance, personal residential and commercial property insurance, general liability insurance, and other specialty property-casualty insurance and related services. Our Personal Lines segment writes insurance for personal autos and recreational vehicles (our special lines products). The Personal Lines segment is comprised of both the Agency and Direct businesses. The Agency business includes business written by our network of more than 40,000 independent insurance agencies, including brokerages in New York and California, and strategic alliance business relationships (including other insurance companies, financial institutions, and national agencies). The Direct business includes business written directly by us online, by phone, or on mobile devices. We operate our Personal Lines businesses throughout the United States. Our Commercial Lines segment writes auto-related primary liability and physical damage insurance, and general liability and property insurance, predominately for small businesses. This segment operates throughout the United States and is distributed through both the independent agency and direct channels. Our Property segment writes residential property insurance for homeowners, other property owners, and renters through both the independent agency and direct channel, and writes flood insurance through the “Write Your Own” program for the National Flood Insurance Program, through the agency channel. Our Property segment operates throughout the majority of the United States. Our service businesses provide insurance-related services, including processing CAIP business and serving as an agent for homeowners, general liability, and workers’ compensation insurance, among other products, through programs in our direct Personal Lines and Commercial Lines businesses. We evaluate profitability based on pretax underwriting profit (loss) for the Personal Lines, Commercial Lines, and Property segments. Pretax underwriting profit (loss) is calculated as net premiums earned plus fees and other revenues, less: (i) losses and loss adjustment expenses; (ii) policy acquisition costs; and (iii) other underwriting expenses. Service business pretax profit (loss) is the difference between service business revenues and service business expenses. Assets and income taxes are not allocated to operating segments, as such allocation would be impractical. Expense allocations are based on certain assumptions and estimates primarily related to revenue and volume; stated segment operating results would change if different methods were applied. We do not separately identify depreciation expense by segment. Companywide depreciation expense was $274.9 million in 2020, $239.8 million in 2019, and $190.4 million in 2018. The accounting policies of the operating segments are the same as those described in Note 1 – Reporting and Accounting Policies . Following are the operating results for the years ended December 31: 2020 2019 2018 (millions) Revenues Pretax Revenues Pretax Revenues Pretax Personal Lines Agency $ 15,789.5 $ 2,236.5 $ 14,904.1 $ 1,673.2 $ 13,017.2 $ 1,435.7 Direct 16,830.6 2,076.5 15,305.9 1,181.4 13,017.5 1,088.5 Total Personal Lines 1 32,620.1 4,313.0 30,210.0 2,854.6 26,034.7 2,524.2 Commercial Lines 4,875.8 634.8 4,427.6 458.8 3,610.9 478.6 Property 2 1,765.7 (125.1) 1,554.8 (26.1) 1,287.7 (88.7) Other indemnity 0 0 0 0 0 0.9 Total underwriting operations 39,261.6 4,822.7 36,192.4 3,287.3 30,933.3 2,915.0 Fees and other revenues 3 603.5 NA 563.7 NA 472.2 NA Service businesses 226.4 20.9 195.0 16.1 158.5 24.4 Investments 4 2,566.6 2,546.6 2,071.2 2,046.6 415.0 390.7 Interest expense NA (217.0) NA (189.7) NA (166.5) Consolidated total $ 42,658.1 $ 7,173.2 $ 39,022.3 $ 5,160.3 $ 31,979.0 $ 3,163.6 NA = Not applicable 1 Personal auto insurance accounted for 94% of the total Personal Lines segment net premiums earned in 2020, 2019, and 2018; insurance for our special lines products (e.g., motorcycles, ATVs, RVs, watercraft, and snowmobiles) accounted for the balance of the Personal Lines net premiums earned. 2 During 2020, 2019, and 2018, pretax profit (loss) includes $56.9 million, $66.3 million, and $72.0 million, respectively, of amortization expense predominately associated with intangible assets. See Note 16 - Goodwill and Intangible Assets for further discussion. 3 Pretax profit (loss) for fees and other revenues is allocated to operating segments. 4 Revenues represent recurring investment income and total net realized gains (losses) on securities; pretax profit is net of investment expenses. Our management uses underwriting margin and combined ratio as primary measures of underwriting profitability, as defined above. The underwriting margin is the pretax underwriting profit (loss) expressed as a percentage of net premiums earned (i.e., revenues from underwriting operations). Combined ratio is the complement of the underwriting margin. Following are the underwriting margins and combined ratios for our underwriting operations for the years ended December 31: 2020 2019 2018 Underwriting Combined Underwriting Combined Underwriting Combined Personal Lines Agency 14.2 % 85.8 11.2 % 88.8 11.0 % 89.0 Direct 12.3 87.7 7.7 92.3 8.4 91.6 Total Personal Lines 13.2 86.8 9.5 90.5 9.7 90.3 Commercial Lines 13.0 87.0 10.4 89.6 13.3 86.7 Property 1 (7.1) 107.1 (1.7) 101.7 (6.9) 106.9 Total underwriting operations 12.3 87.7 9.1 90.9 9.4 90.6 1 Included in 2020, 2019, and 2018, are 3.2 points, 4.3 points, and 5.6 points, respectively, of amortization expense predominately associated with the acquisition of a controlling interest in ARX. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | OTHER COMPREHENSIVE INCOME (LOSS) The components of other comprehensive income (loss), including reclassification adjustments by income statement line item, for the years ended December 31, were as follows: Components of Changes in (millions) Pretax total Total tax After tax total Total net Net unrealized (Income) loss attributable to NCI Balance at December 31, 2019 $ 435.7 $ (94.0) $ 341.7 $ 360.8 $ (16.4) $ (2.7) Reclassification of disproportionate amounts 1 3.4 (0.7) 2.7 0 0 2.7 Adjusted balance at December 31, 2019 439.1 (94.7) 344.4 360.8 (16.4) 0 Other comprehensive income (loss) before reclassifications: Investment securities 1,557.2 (306.1) 1,251.1 1,251.1 0 0 Loss attributable to noncontrolling interest (NCI) 0 0 0 0 0 0 Total other comprehensive income (loss) before reclassifications 1,557.2 (306.1) 1,251.1 1,251.1 0 0 Less: Reclassification adjustment for amounts realized in net income by income statement line item: Net realized gains (losses) on securities 810.0 (145.4) 664.6 664.6 0 0 Interest expense (1.1) 0.3 (0.8) 0 (0.8) 0 Total reclassification adjustment for amounts realized in net income 808.9 (145.1) 663.8 664.6 (0.8) 0 Total other comprehensive income (loss) 748.3 (161.0) 587.3 586.5 0.8 0 Balance at December 31, 2020 $ 1,187.4 $ (255.7) $ 931.7 $ 947.3 $ (15.6) $ 0 1 Adjustment to reflect the change in value on (income) loss attributable to NCI in conjunction with the purchase transaction (See Note 15 - Redeemable Noncontrolling Interest for additional information). Components of Changes in (millions) Pretax total Total tax After tax total Total net Net unrealized (Income) loss attributable to NCI Balance at December 31, 2018 $ (153.0) $ 32.1 $ (120.9) $ (105.6) $ (17.2) $ 1.9 Other comprehensive income (loss) before reclassifications: Investment securities 825.8 (174.9) 650.9 650.9 0 0 Loss attributable to noncontrolling interest (NCI) (5.9) 1.3 (4.6) 0 0 (4.6) Total other comprehensive income (loss) before reclassifications 819.9 (173.6) 646.3 650.9 0 (4.6) Less: Reclassification adjustment for amounts realized in net income by income statement line item: Net realized gains (losses) on securities 232.2 (47.7) 184.5 184.5 0 0 Interest expense (1.0) 0.2 (0.8) 0 (0.8) 0 Total reclassification adjustment for amounts realized in net income 231.2 (47.5) 183.7 184.5 (0.8) 0 Total other comprehensive income (loss) 588.7 (126.1) 462.6 466.4 0.8 (4.6) Balance at December 31, 2019 $ 435.7 $ (94.0) $ 341.7 $ 360.8 $ (16.4) $ (2.7) Components of Changes in (millions) Pretax total Total tax After tax total Total net Net unrealized (Income) loss attributable to NCI Balance at December 31, 2017 $ 1,977.8 $ (695.6) $ 1,282.2 $ 1,295.0 $ (14.8) $ 2.0 Cumulative effect adjustment 1 (2,006.0) 705.8 (1,300.2) (1,300.2) 0 0 Reclassification of disproportionate amounts 2 (4.3) (3.4) (7.7) (1.1) (3.2) (3.4) Adjusted balance at December 31, 2017 (32.5) 6.8 (25.7) (6.3) (18.0) (1.4) Other comprehensive income (loss) before reclassifications: Investment securities (224.1) 47.0 (177.1) (177.1) 0 0 Loss attributable to noncontrolling interest (NCI) 4.3 (1.0) 3.3 0 0 3.3 Total other comprehensive income (loss) before reclassifications (219.8) 46.0 (173.8) (177.1) 0 3.3 Less: Reclassification adjustment for amounts realized in net income by income statement line item: Net realized gains (losses) on securities (98.3) 20.5 (77.8) (77.8) 0 0 Interest expense (1.0) 0.2 (0.8) 0 (0.8) 0 Total reclassification adjustment for amounts realized in net income (99.3) 20.7 (78.6) (77.8) (0.8) 0 Total other comprehensive income (loss) (120.5) 25.3 (95.2) (99.3) 0.8 3.3 Total at December 31, 2018 $ (153.0) $ 32.1 $ (120.9) $ (105.6) $ (17.2) $ 1.9 1 Reflects the fair value changes on equity securities as of December 31, 2017, which are reported as realized gains (losses) under the new accounting guidance. See Note 1 - Reporting and Accounting Policies for additional information. 2 Reflects the effect of the change in U.S. federal tax rate on our available-for-sale fixed-maturity securities and our hedges on forecasted transactions as of December 31, 2017 (see Note 1 - Reporting and Accounting Policies for additional information) and the adjustment to reflect the change in value on (income) loss attributable to NCI in conjunction with the “put” transaction (see Note 15 - Redeemable Noncontrolling Interest for additional information). In an effort to manage interest rate risk, we may enter into forecasted transactions on Progressive’s debt issuances. We expect to reclassify $0.9 million (pretax) into interest expense during the next 12 months, related to net unrealized losses on forecasted transactions (see Note 4 – Debt |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2020 | |
Litigation Disclosures [Abstract] | |
Litigation | LITIGATION The Progressive Corporation and/or its insurance subsidiaries are named as defendants in various lawsuits arising out of claims made under insurance policies written by our insurance subsidiaries in the ordinary course of business. We consider all legal actions relating to such claims in establishing our loss and loss adjustment expense reserves. In addition, The Progressive Corporation and/or its subsidiaries are named as defendants in a number of class action or individual lawsuits that challenge certain of the operations of the subsidiaries. Other insurance companies face many of these same issues. We describe litigation contingencies for which a loss is probable. In addition, we establish accruals for these lawsuits when we can reasonably estimate potential loss exposure, which may include a range of loss, and we will disclose such amount or range of loss if material. As to lawsuits for which the loss is considered probable but not estimable, we do not establish an accrual. Nevertheless, we continue to evaluate this pending litigation to determine if any losses not deemed probable and estimable become so, at which point we would establish an accrual at our best estimate of the loss or range of loss. We also describe litigation contingencies for which a loss is reasonably possible (but not probable). When disclosing reasonably possible litigation contingencies, we will disclose the amount or range of possible loss, if we are able to make that determination and if material. We review all reasonably possible losses on an ongoing basis to determine whether the likelihood of incurring a loss has become probable, or whether the circumstances have changed such that we may now reasonably estimate a range of loss. We may also be exposed to litigation contingencies that are remote. Remote litigation contingencies are those for which the likelihood of a loss is slight at period end. We do not disclose, or establish accruals for, remote litigation contingencies, but we evaluate these contingencies on an ongoing basis to determine whether the likelihood of a loss has increased. Each year, certain of our pending litigation matters are brought to conclusion. For cases that have settled, but for which settlement is not complete, an accrual is established at our best estimate of the loss exposure. We regularly review these and other accruals to ensure they are adequate. Settlements that are complete are fully reflected in our financial statements. The amounts accrued and/or paid for settlements during the periods presented were not material to our consolidated financial condition, cash flows, or results of operations. The pending lawsuits summarized below are in various stages of development, and the outcomes are uncertain or, if probable and estimable, are accrued and immaterial as of December 31, 2020. At period end, except to the extent an immaterial accrual has been established, we do not consider the losses from these pending cases to be both probable and estimable, and we are unable to estimate a range of loss at this time. It is not possible to determine loss exposure for a number of reasons, including, without limitation, one or more of the following: liability appears to be remote; putative class action lawsuits generally pose immaterial exposure until a class is actually certified, which, historically, has not been granted by courts in the vast majority of our cases in which class certification has been sought; even certified class action lawsuits are subject to decertification, denial of liability and/or appeal; class definitions are often indefinite and preclude detailed exposure analysis; and complaints rarely state an amount sought as relief, and when such amount is stated, it often is a function of pleading requirements and may be unrelated to the potential exposure. We plan to contest these suits vigorously, but may pursue settlement negotiations in some cases, as we deem appropriate. In the event that any one or more of these cases results in a substantial judgment against us, or settlement by us, or if our accruals (if any) prove to be inadequate, the resulting liability could have a material adverse effect on our consolidated financial condition, cash flows, and/or results of operations. Based on information currently known, we do not believe that the outcome of any pending cases described below will have a material impact on our consolidated financial condition, cash flows, and/or results of operations. At December 31, 2020, pending lawsuits as described above that challenge certain of the operations of our subsidiaries included: Lawsuits seeking class/collective action status: • alleging we sell or charge insureds for illusory coverage or coverage lower than amounts allowed by law for PIP coverage and pay related claims at levels lower than allowed by law. • challenging how physical damage claims are handled, adjusted, and ultimately paid, including how we value total loss claims, the payment of fees and taxes associated with total losses, and the payment of diminution damages. • challenging our practices in Florida of adjusting PIP claims. • challenging our use of used original equipment manufacturer parts in the repair of a leased vehicle. • challenging our adjustment of medical bills submitted by insureds or medical providers in medical claims. • challenging our payment and reimbursement practices to Medicare Advantage Plans on first party medical, PIP, and bodily injury claims. • challenging our acceptance of uninsured motorist rejection. • alleging we sell illusory underinsured motorist coverage. • alleging we wrongfully withheld payments owed to insureds under uninsured/underinsured motorist coverage. • alleging that we wrongly pursue subrogation of medical payments paid directly to providers and not to insureds. • alleging that we must pay an insured the pre-loss actual cash value of a totaled vehicle in addition to the value of the salvage vehicle if we take ownership of the salvage vehicle. • alleging that we improperly calculate basic economic loss as it relates to wage loss coverage. • alleging that we violated the Telephone Consumer Protection Act. • alleging that we provided an insufficient amount of premium relief to Illinois insureds in response to the COVID-19 pandemic. • challenging certain of our pay practices and overtime payment practices. • alleging that we fail to pay overtime to certain employees who we classify as exempt from overtime pay requirements. Lawsuits certified or conditionally certified as class/collective actions: • alleging we improperly sell secondary PIP coverage to Medicare and Medicaid beneficiaries in New Jersey. • challenging how we value total loss claims in Florida and Louisiana. • challenging the payment of fees and taxes associated with total losses in Florida. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | LEASES Included in our consolidated balance sheets are certain operating leases for office space, computer equipment, and vehicles that are reported as a component of other assets accounts payable, accrued expenses, and other liabilities The leased assets represent our right to use an underlying asset for the lease term and the lease liabilities represent our obligation to make lease payments arising from the lease. An incremental borrowing rate is used to calculate the present value of the remaining lease payments. Each contract is reviewed at inception to determine if it contains a lease and whether the lease qualifies as an operating or financing lease. We do not have material financing leases. Operating leases are expensed on a straight-line basis over the term of the lease. In determining the lease term, we consider the probability of exercising renewal options. We elected to account for leases with both lease and non-lease components as a single lease component and to apply a portfolio approach to account for our vehicle leases. The following table summarizes the carrying amounts of our operating leased assets and liabilities at December 31, along with key inputs used to discount our lease liabilities: (millions) 2020 2019 Operating lease assets $ 165.5 $ 188.2 Operating lease liabilities $ 179.0 $ 201.5 Weighted-average remaining term 3.0 years 3.3 years Weighted-average discount rate 2.5 % 3.0 % At December 31, 2020, the following table shows our operating lease liabilities, on an undiscounted basis for the periods indicated: (millions) Commitments 2021 $ 78.9 2022 48.7 2023 29.1 2024 18.4 2025 9.8 Thereafter 0.5 Total 185.4 Interest (6.4) Present value of lease liabilities $ 179.0 The operating lease expense for the years ended December 31, was as follows: (millions) Expense 2020 $ 95.4 2019 102.0 2018 77.3 |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2020 | |
Dividends [Abstract] | |
Dividends | DIVIDENDS Following is a summary of our common and preferred share dividends that were declared and/or paid in the last three years: (millions, except per share amounts) Amount Declared Payable Per Share Accrued 1 Common - Annual Variable Dividends: December 2020 January 2021 $ 4.50 $ 2,635.9 December 2019 January 2020 2.25 1,316.9 December 2018 February 2019 2.5140 1,467.9 December 2017 February 2018 1.1247 655.1 Common - Quarterly Dividends: December 2020 January 2021 0.10 58.6 August 2020 October 2020 0.10 58.6 May 2020 July 2020 0.10 58.5 February 2020 April 2020 0.10 58.5 December 2019 January 2020 0.10 58.5 August 2019 October 2019 0.10 58.5 May 2019 July 2019 0.10 58.4 February 2019 April 2019 0.10 58.4 Preferred Dividends: December 2020 March 2021 26.875 13.4 August 2020 September 2020 26.875 13.4 February 2020 March 2020 26.875 13.4 August 2019 September 2019 26.875 13.4 February 2019 March 2019 26.875 13.4 August 2018 September 2018 27.024 13.5 1 The accrual is based on an estimate of shares outstanding as of the record date and the common share accrual is recorded as “dividends payable on common shares” on the Consolidated Balance Sheets; the prior year common share amount was reclassified into this line item from “accounts payable, accrued expenses, and other liabilities” to conform to the current year presentation. Common Share Dividends The Board of Directors adopted a policy of declaring regular quarterly common share dividends, and on at least an annual basis, to consider declaring an additional common share dividend, which was effective beginning in 2019. Prior to 2019, we maintained a policy of paying an annual variable dividend. Under the policy, the dividend was based on a target percentage of 33-1/3%, as determined by the Board, of after-tax underwriting income multiplied by a performance factor (Gainshare factor). The Gainshare factor was 1.91 and 1.79 for the dividends declared in 2018 and 2017, respectively. Preferred Share Dividends In March 2018, we issued 500,000 Series B Fixed-to-Floating Rate Cumulative Perpetual Serial Preferred Shares, without par value (the “Series B Preferred Shares”), with a liquidation preference of $1,000 per share |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | REDEEMABLE NONCONTROLLING INTEREST In connection with the April 2015 acquisition of a controlling interest in ARX, The Progressive Corporation entered into a stockholders’ agreement with the other ARX stockholders. During 2018, minority ARX stockholders put 204,527 shares, including 5,483 shares that were issued upon the exercise of outstanding stock options. Progressive acquired these additional shares, in a cash transaction, for a total cost of $295.9 million. On April 1, 2020, Progressive purchased all remaining outstanding stock, including shares from exercised stock options, of ARX under a separately negotiated purchase agreement at a total cost of $243.0 million. Since these securities were redeemable upon the occurrence of an event that was not solely within the control of Progressive, we recorded the redeemable noncontrolling interest (NCI) as mezzanine equity on our consolidated balance sheets, representing the minority shares at the current estimated purchase price pursuant to the put and call provisions of the stockholders’ agreement. The changes in the components of redeemable NCI during the years ended December 31, were: (millions) 2020 2019 2018 Balance, beginning of year $ 225.6 $ 214.5 $ 503.7 Net income attributable to NCI 0 9.7 5.7 Other comprehensive income (loss) attributable to NCI 1 0 4.6 (3.3) Exercise of stock options 16.0 7.7 9.4 Purchase/change of ARX minority shares (241.6) (11.2) (298.2) Change in redemption value 0 0.3 (2.8) Balance, end of year $ 0 $ 225.6 $ 214.5 1 Amount represents the other comprehensive income (loss) attributable to NCI, as reflected on the consolidated statements of comprehensive income; changes in accumulated other comprehensive income (loss) attributable to NCI due to a change in the minority ownership percentage does not impact the amount of redeemable NCI . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill Goodwill recorded at December 31, 2020, and 2019, was $452.7 million. The majority of the goodwill recorded as of December 31, 2020 and 2019, relates to the April 1, 2015, acquisition of a controlling interest in ARX. No impairment losses have been recorded on any of the outstanding goodwill. Intangible Assets The following table is a summary of the net carrying amount of other intangible assets as of December 31: (millions) 2020 2019 Intangible assets subject to amortization $ 159.0 $ 215.9 Indefinite-lived intangible assets 1 12.4 12.4 Total $ 171.4 $ 228.3 1 Indefinite-lived intangible assets are comprised of state insurance and agent licenses. State insurance licenses were previously subject to amortization under superseded accounting guidance and have $0.6 million of accumulated amortization for both years presented. Intangible assets subject to amortization for the years ended December 31, consisted of the following: (millions) 2020 2019 Category Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Policies in force $ 256.2 $ 210.4 $ 45.8 $ 256.2 $ 173.9 $ 82.3 Agency relationships 159.2 65.4 93.8 159.2 54.0 105.2 Software rights 69.1 49.7 19.4 79.1 50.7 28.4 Trade name 0 0 0 34.8 34.8 0 Total $ 484.5 $ 325.5 $ 159.0 $ 529.3 $ 313.4 $ 215.9 Amortization expense was $56.9 million, $66.3 million, and $72.0 million for the years ended December 31, 2020, 2019, and 2018, respectively. During 2020, one software rights intangible asset, with a gross carrying value of $10.0 million, was fully amortized. The estimated aggregate amortization on these intangible assets for each of the next five years as of December 31, 2020, follows: (millions) Year Amortization 2021 $ 56.6 2022 29.2 2023 13.5 2024 11.4 2025 11.4 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENTOn February 16, 2021, we announced that we have entered into a definitive agreement with Protective Insurance Corporation (“Protective”) to acquire all of Protective’s outstanding Class A and Class B common shares for $23.30 per share in cash, or approximately $338 million in aggregate. This transaction is expected to close prior to the end of the third quarter 2021, subject to customary closing conditions, including the receipt of certain required regulatory approvals and approval of Protective’s Class A shareholders |
Reporting and Accounting Poli_2
Reporting and Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations The Progressive insurance organization began business in 1937. The financial results of The Progressive Corporation include its subsidiaries and affiliates (references to “subsidiaries” in these notes include affiliates as well). Our insurance subsidiaries provide personal and commercial auto insurance, personal residential and commercial property insurance, general liability insurance, and other specialty property-casualty insurance and related services. Our Personal Lines segment writes insurance for personal autos and recreational vehicles, which we refer to as our special lines products. Our Commercial Lines segment writes auto-related primary liability and physical damage insurance, and general liability and property insurance, predominately for small businesses. Our Property segment writes residential property insurance for homeowners, other property owners, and renters. We operate our businesses throughout the United States through both the independent agency and direct channels. |
Basis of Consolidation and Reporting | Basis of Consolidation and Reporting The accompanying consolidated financial statements include the accounts of The Progressive Corporation, our wholly owned insurance and non-insurance subsidiaries, and affiliates, in which we have a controlling financial interest. All intercompany accounts and transactions are eliminated in consolidation. All revenues are generated from external customers and we do not have a reliance on any major customer. |
Estimates | Estimates We are required to make estimates and assumptions when preparing our financial statements and accompanying notes in conformity with accounting principles generally accepted in the United States of America (GAAP). As estimates develop into fact, results may, and will likely, differ from those estimates. |
Investments | Investments Our fixed-maturity securities and short-term investments are accounted for on an available-for-sale basis. Fixed-maturity securities include debt securities and redeemable preferred stocks, which may have fixed or variable principal payment schedules, may be held for indefinite periods of time, and may be used as a part of our asset/liability strategy or sold in response to changes in interest rates, anticipated prepayments, risk/reward characteristics, liquidity needs, or other economic factors. These securities are carried at fair value with the corresponding unrealized gains (losses), net of deferred income taxes, reported in accumulated other comprehensive income. Short-term investments may include Eurodollar deposits, commercial paper, repurchase transactions, and other securities expected to mature within one year. From time to time, we may also invest in municipal bonds that have maturity dates that are longer than one year but have either liquidity facilities or mandatory put features within one year. Equity securities include common stocks, nonredeemable preferred stocks, and other risk investments. These securities are carried at fair value, with the changes in fair value reported as a component of net holding period gains (losses) on securities reported in net income. Derivative instruments may include futures, options, forward positions, interest rate swap agreements, and credit default swaps and may be used in the portfolio for general investment purposes or to hedge the exposure to variable cash flows of a forecasted transaction (cash flow hedge). We did not have any derivatives outstanding at December 31, 2020 or 2019. To the extent we have derivatives held for general investment purposes, these derivative instruments would be recognized as either assets or liabilities and measured at fair value, with changes in fair value recognized in net income as a component of net holding period gains (losses) on securities. Derivatives designated as hedges are required to be evaluated on established criteria to determine the effectiveness of their correlation to, and ability to reduce the designated risk of, specific securities or transactions. Effectiveness is required to be reassessed regularly. For cash flow hedges that are deemed to be effective, the changes in fair value of the hedge would be reported as a component of accumulated other comprehensive income and subsequently amortized into earnings over the life of the hedged transaction. If a hedge is deemed to become ineffective or discontinued, changes in fair value of the derivative instrument would be reported in income for the current period. For derivatives settled through a clearinghouse, collateral is required to post initial margin and is subject to increases in margin beyond changes in fair value. Exposure to credit risk is limited to the carrying value; collateral may be required to limit credit risk. For bi-lateral derivative positions, net cash requirements are limited to changes in fair values, which may vary as a result of changes in interest rates, currency exchange rates, and other factors. We have elected not to offset fair value amounts that arise from derivative positions with the same counterparty under a master netting arrangement. Investment securities are exposed to various risks such as interest rate, market, credit, and liquidity risk. Fair values of securities fluctuate based on the nature and magnitude of changing market conditions; significant changes in market conditions could materially affect the portfolio’s value in the near term. We routinely monitor our fixed-maturity portfolio for pricing changes that might indicate potential credit losses exist and perform detailed reviews of securities with unrealized losses. For an unrealized loss that we determined to be related to current market conditions, we will not record an allowance for credit losses or a write-off of the fair value for securities we do not intend to sell. We will continue to monitor these securities to determine if the unrealized loss is due to credit deterioration. If we believe that a potential credit loss exists, we will record an allowance for the credit loss and recognize the realized loss as a component of realized gains and losses in the income statement. Once a credit loss allowance has been established, we will continue to evaluate the security, at least quarterly, to determine if changes in conditions have created the need to either increase, or decrease, the allowance recorded. If we determine that a security with a credit loss allowance, previously recorded, is likely to be sold prior to the potential recovery of the credit loss or if we determine that the loss is uncollectible, we will reverse the allowance and write-off the security to its fair value. Investment income consists of interest, dividends, and accretion (net of amortization). Interest is recognized on an accrual basis using the effective yield method, except for asset-backed securities, discussed below. Depending on the nature of the equity instruments, dividends are recorded at either the ex-dividend date or on an accrual basis. Asset-backed securities, which are included in our fixed-maturity portfolio, are generally accounted for under the retrospective method. The retrospective method recalculates yield assumptions (based on changes in interest rates or cash flow expectations) historically to the inception of the investment holding period, and applies the required adjustment, if any, to the cost basis, with the offset recorded to investment income. The prospective method is used primarily for interest-only securities, asset-backed securities below high investment-grade status (i.e., below AA-), and certain asset-backed securities with sub-prime loan exposure or where there is a greater risk of non-performance and where it is possible the initial investment may not be substantially recovered. The prospective method requires a calculation of expected future repayments and resets the yield to allow for future period adjustments; no current period impact to investment income or the security’s cost is made based on the cash flow update. Prepayment assumptions are updated quarterly. Realized gains (losses) on securities are computed based on the first-in first-out method. Realized gains (losses) also includes holding period valuation changes on equity securities, hybrid instruments (e.g., securities with embedded options, where the option is a feature of the overall change in the value of the instrument), and derivatives, as well as initial credit allowance losses, subsequent changes in credit loss allowances, and write-offs for losses deemed uncollectible or securities in a loss |
Insurance Premiums and Receivables | Insurance Premiums and Receivables Insurance premiums written are earned into income on a pro rata basis over the period of risk, based on a daily earnings convention. Accordingly, unearned premiums represent the portion of premiums written that are applicable to the unexpired risk. We provide insurance and related services to individuals and commercial accounts and offer a variety of payment plans. Generally, premiums are collected prior to providing risk coverage, minimizing our exposure to credit risk. For our Personal Lines and Commercial Lines businesses, we perform a policy level evaluation to determine the extent to which the premiums receivable balance exceeds the unearned premiums balance. We then age this exposure to establish an allowance for credit losses based on prior experience. For our Property business, the risk of uncollectibility is relatively low. If premiums are unpaid by the policy due date, we provide advance notice of cancellation in accordance with each state’s requirements and, if the premiums remain unpaid after receipt of notice, cancel the policy and write off any remaining balance. |
Allowance for credit losses | To determine an allowance for credit losses, we evaluate the collectibility of premiums receivables based on historical and current collections experience using actuarial analysis. Our estimate of the future recoverability of our projected ultimate at-risk exposures also takes into consideration any unusual circumstances that we may encounter, such as moratoriums or other programs that may suspend collections. The following table summarizes changes in our allowance for credit loss exposure on our premium receivables: (millions) 2020 2019 Balance at January 1 $ 283.2 $ 252.1 Increase in allowance 1 472.0 433.5 Write-offs 2 (399.0) (402.4) Balance at December 31 $ 356.2 $ 283.2 1 Represents the incremental increase in other underwriting expenses. 2 Represents the portion of allowance that is reversed when premium receivables are written off. |
Deferred Acquisition Costs | Deferred Acquisition Costs Deferred acquisition costs include commissions, premium taxes, and other variable underwriting and direct sales costs incurred in connection with the successful acquisition or renewal of insurance contracts. These acquisition costs, net of ceding allowances, are deferred and amortized over the policy |
Loss and Loss Adjustment Expense Reserves | Loss and Loss Adjustment Expense Reserves Loss reserves represent the estimated liability on claims reported to us, plus reserves for losses incurred but not recorded (IBNR). These estimates are reported net of amounts estimated to be recoverable from salvage and subrogation. Loss adjustment expense reserves represent the estimated expenses required to settle these claims. The methods of making estimates and establishing these reserves are reviewed regularly, and resulting adjustments are reflected in income in the current period. Such loss and loss adjustment expense reserves are susceptible to change in the near term. |
Reinsurance | Reinsurance Our reinsurance activity includes transactions which are categorized as Regulated and Non-Regulated. Regulated refers to plans in which we participate that are governed by insurance regulations and include state-provided reinsurance facilities (e.g., Michigan Catastrophic Claims Association, North Carolina Reinsurance Facility, Florida Hurricane Catastrophe Fund), as well as state-mandated involuntary plans for commercial vehicles (Commercial Automobile Insurance Procedures/Plans – CAIP) and federally regulated plans for flood (National Flood Insurance Program – NFIP); we act as a servicing agent for CAIP and as a participant in the “Write Your Own” program for the NFIP. Non-Regulated includes voluntary contractual arrangements primarily related to our Property business and to the transportation network company business written by our Commercial Lines segment. Prepaid reinsurance premiums are earned on a pro rata basis over the period of risk, based on a daily earnings convention, which is consistent with premiums earned. See Note 7 – Reinsurance for further discussion. |
Income Taxes | Income Taxes The income tax provision is calculated under the balance sheet approach. Deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax bases of assets and liabilities at the enacted tax rates. The principal items giving rise to such differences are investment securities (e.g., net unrealized gains (losses), net holding period gains (losses) on securities, write-downs on securities determined to be other-than-temporarily impaired), loss and loss adjustment expense reserves, unearned premiums reserves, deferred acquisition costs, property and equipment, intangible assets, and non-deductible accruals. We review our deferred tax assets regularly for recoverability. See Note 5 – Income Taxes for further discussion. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is recognized over the estimated useful lives of the assets using accelerated methods for computer equipment and the straight-line method for all other fixed assets. We evaluate impairment whenever events or circumstances warrant such a review and write-off the impaired assets if appropriate. The cost and useful lives for property and equipment at December 31, were: ($ in millions) 2020 2019 Useful Lives Land $ 151.6 $ 161.6 NA Buildings, improvements, and integrated components 872.7 927.1 7-40 years Capitalized software 392.6 367.1 3-10 years Software licenses (internal use) 335.5 286.8 1-5 years Computer equipment 253.8 223.3 3 years All other property and equipment 391.2 385.9 3-10 years Total cost 2,397.4 2,351.8 Accumulated depreciation (1,291.4) (1,138.1) Balance at end of year $ 1,106.0 $ 1,213.7 NA = Not applicable; land is not a depreciable asset. Included in other assets in the consolidated balance sheets are “held for sale” property, which represents the fair value of these properties less the estimated costs to sell, of $56.6 million and $32.9 million at December 31, 2020 and 2019, respectively, and capitalized cloud computing arrangement implementation costs, net of amortization, of $25.3 million at December 31, 2020. We adopted the new accounting standard for cloud computing arrangements in January 2020; see New Accounting Standards below in this Note 1 for further discussion. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is the excess of the purchase price over the estimated fair value of the assets and liabilities acquired and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Intangible assets are non-financial assets lacking physical substance, such as customer and agency relationships and software rights, and represent the future economic benefit of those acquired assets. See Note 16 – Goodwill and Intangible Assets for further discussion. We evaluate our goodwill for impairment at least annually using a qualitative approach. If events or changes in circumstances indicate that the carrying value of goodwill or intangible assets may not be recoverable, we will evaluate such items for impairment using a quantitative approach. |
Guaranty Fund Assessments | Guaranty Fund Assessments We are subject to state guaranty fund assessments, which provide for the payment of covered claims or other insurance obligations of insurance companies deemed insolvent. These assessments are accrued after a formal determination of insolvency has occurred, and we have written the premiums on which the assessments will be based. Assessments that are available for recoupment from policyholders are capitalized when incurred; all other assessments are expensed. |
Fees and Other Revenues | Fees and Other Revenues Fees and other revenues primarily represent fees collected from policyholders relating to installment charges in accordance with our bill plans, as well as late payment and insufficient funds fees and revenue from ceding commissions. Fees and other revenues are generally earned when invoiced, except for excess ceding commissions, which are earned over the policy period. |
Service Revenues and Expenses | Service Revenues and Expenses Our service businesses provide insurance-related services. Service revenues and expenses from our commission-based businesses are recorded in the period in which they are earned or incurred. Service revenues generated from processing business for involuntary CAIP plans are earned on a pro rata basis over the term of the related policies. Service expenses related to these CAIP plans are expensed as incurred. |
Equity-Based Compensation | Equity-Based Compensation We issue time-based and performance-based restricted stock unit awards to key members of management as our form of equity compensation, and time-based restricted stock awards to non-employee directors. Collectively, we refer to these awards as “restricted equity awards.” Compensation expense for time-based restricted equity awards with installment vesting is recognized over each respective vesting period. For performance-based restricted equity |
Earnings Per Common Share | Earnings Per Common Share Net income attributable to Progressive is reduced by preferred share dividends to determine net income available to common shareholders, and is used in our calculation of the per common share amounts. Basic earnings per common share is computed using the weighted average number of common shares outstanding during the reporting period, excluding unvested time-based restricted stock awards. Diluted earnings per common share includes common stock equivalents assumed outstanding during the period. Our common stock equivalents include the incremental shares assumed to be issued for: • earned but unvested time-based restricted equity awards, and • performance-based restricted equity awards that satisfied certain contingency conditions for unvested common stock equivalents during the period and are highly likely to continue to satisfy the conditions until the date of vesting. |
Cash Flow Supplemental Disclosure | Supplemental Cash Flow Information Cash and cash equivalents include bank demand deposits and daily overnight reverse repurchase commitments of funds held in bank demand deposit accounts by certain subsidiaries, and are not considered part of the investment portfolio. The amount of reverse repurchase commitments held by these subsidiaries at December 31, 2020, 2019, and 2018, were $93.5 million, $46.3 million, and $117.3 million, respectively. Restricted cash on our consolidated balance sheets represents cash that is restricted to pay flood claims under the NFIP’s “Write Your Own” program, for which certain subsidiaries are administrators. For the year ended December 31, 2020, non-cash activity includes declared but unpaid common share dividends of $2,694.5 million and preferred share dividends of $13.4 million, and operating lease liabilities arising from obtaining right-of-use assets of $60.3 million (see Note 13 – Leases and Note 14 – Dividends for further discussion). For the years ended December 31, we paid the following: (millions) 2020 2019 2018 Income taxes $ 1,446.3 $ 954.3 $ 702.6 Interest 206.0 184.9 154.0 Operating lease liabilities 86.5 84.0 NA NA = Not applicable prior to the adoption of the new accounting standard in 2019. |
Commitments and Contingencies | Commitments and Contingencies We have certain noncancelable purchase obligations for goods and services with minimum commitments of $830.4 million at December 31, 2020, primarily consisting of software licenses, maintenance on information technology equipment, and media placements. In addition, we have several multiple-layer property catastrophe reinsurance contracts with various reinsurers with terms ranging from one |
New Accounting Standards | New Accounting Standards On January 1, 2020, we adopted the following new Accounting Standards Updates (ASU). Cloud Computing Arrangements This ASU, which provides guidance on the requirements for capitalizing and amortizing implementation costs incurred in a cloud computing arrangement that does not include a software license, was adopted on a prospective basis. See the Property and Equipment discussion above for the cloud computing arrangement implementation cost capitalized at December 31, 2020. Fair Value Measurements We early adopted a portion of this ASU in 2018 and the remaining provisions in 2020. This ASU amended the disclosure requirements for fair value measurements to require companies to disclose the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and removed current disclosure requirements for the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. The adoption of this ASU had no impact on our financial condition, cash flows, or results of operations. Goodwill Impairment Test Simplification The ASU eliminated the requirement to determine the implied fair value of goodwill in measuring an impairment loss and now requires the measurement of a goodwill impairment to represent the excess of the reporting unit’s carrying value over fair value, limited to the carrying value of goodwill. The adoption of this ASU had no impact on our financial condition, cash flows, or results of operations. Measurement of Credit Losses on Financial Instruments This ASU modified the existing accounting guidance related to the impairment evaluation for our available-for-sale debt securities, reinsurance recoverables, and premiums receivable. The ASU is intended to improve the timing, and enhance the accounting and disclosure, of credit losses on financial assets. To the extent a credit loss is determined to exist, an allowance for credit losses would be required to be recorded as a contra asset, with changes to the credit loss allowance recorded prospectively. Based on our analysis for available-for-sale debt securities and reinsurance recoverables as described in Note 2– Investments and Note 7– Reinsurance , respectively, no adjustment to the beginning balance of retained earnings was required upon adoption. See the Insurance Premiums and Receivables discussion above for changes in the allowance for credit losses related to the premiums receivable balance. |
Reporting and Accounting Poli_3
Reporting and Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Premium Receivable, Allowance for Credit Loss | The following table summarizes changes in our allowance for credit loss exposure on our premium receivables: (millions) 2020 2019 Balance at January 1 $ 283.2 $ 252.1 Increase in allowance 1 472.0 433.5 Write-offs 2 (399.0) (402.4) Balance at December 31 $ 356.2 $ 283.2 1 Represents the incremental increase in other underwriting expenses. 2 Represents the portion of allowance that is reversed when premium receivables are written off. |
Advertising Costs | Total advertising costs, which are expensed as incurred, for the years ended December 31, were: (millions) Advertising Costs 2020 $ 2,175.7 2019 1,837.3 2018 1,422.4 |
Property and Equipment | The cost and useful lives for property and equipment at December 31, were: ($ in millions) 2020 2019 Useful Lives Land $ 151.6 $ 161.6 NA Buildings, improvements, and integrated components 872.7 927.1 7-40 years Capitalized software 392.6 367.1 3-10 years Software licenses (internal use) 335.5 286.8 1-5 years Computer equipment 253.8 223.3 3 years All other property and equipment 391.2 385.9 3-10 years Total cost 2,397.4 2,351.8 Accumulated depreciation (1,291.4) (1,138.1) Balance at end of year $ 1,106.0 $ 1,213.7 NA = Not applicable; land is not a depreciable asset. |
Equity Based Compensation and Related Tax Benefits | The total compensation expense recognized for equity-based compensation for the years ended December 31, was: (millions) 2020 2019 2018 Pretax expense $ 89.4 $ 90.2 $ 77.2 Tax benefit 18.8 18.9 16.2 |
Supplemental Cash Flow Information | For the years ended December 31, we paid the following: (millions) 2020 2019 2018 Income taxes $ 1,446.3 $ 954.3 $ 702.6 Interest 206.0 184.9 154.0 Operating lease liabilities 86.5 84.0 NA NA = Not applicable prior to the adoption of the new accounting standard in 2019. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Portfolio by Major Security Type | The following tables present the composition of our investment portfolio by major security type, consistent with our classification of how we manage, monitor, and measure the portfolio. Our securities are reported in our consolidated balance sheets at fair value. The changes in fair value for our fixed-maturity securities (other than hybrid securities) are reported as a component of accumulated other comprehensive income, net of deferred income taxes, in our consolidated balance sheets. The net holding period gains (losses) reported below represent the inception-to-date changes in fair value of the securities. The changes in the net holding period gains (losses) between periods for the hybrid securities and equity securities are recorded as a component of net realized gains (losses) on securities in our consolidated statements of comprehensive income. ($ in millions) Cost Gross Unrealized Gains Gross Unrealized Losses Net Holding Period Gains (Losses) Fair Value % of Total Fair Value December 31, 2020 Available-for-sale securities: Fixed maturities: U.S. government obligations $ 12,437.9 $ 305.8 $ (3.7) $ 0 $ 12,740.0 26.8 % State and local government obligations 3,099.4 123.1 (0.7) 0 3,221.8 6.8 Corporate debt securities 9,579.7 601.7 (0.1) 3.9 10,185.2 21.4 Residential mortgage-backed securities 503.3 7.1 (0.9) 0 509.5 1.1 Commercial mortgage-backed securities 6,042.6 142.5 (10.0) 0 6,175.1 13.0 Other asset-backed securities 3,745.0 40.1 (0.5) 0 3,784.6 7.9 Redeemable preferred stocks 181.2 3.6 (1.4) 11.3 194.7 0.4 Total fixed maturities 35,589.1 1,223.9 (17.3) 15.2 36,810.9 77.4 Short-term investments 5,218.5 0 0 0 5,218.5 11.0 Total available-for-sale securities 40,807.6 1,223.9 (17.3) 15.2 42,029.4 88.4 Equity securities: Nonredeemable preferred stocks 1,358.7 0 0 89.2 1,447.9 3.1 Common equities 1,187.3 0 0 2,865.7 4,053.0 8.5 Total equity securities 2,546.0 0 0 2,954.9 5,500.9 11.6 Total portfolio 1 $ 43,353.6 $ 1,223.9 $ (17.3) $ 2,970.1 $ 47,530.3 100.0 % ($ in millions) Cost Gross Unrealized Gains Gross Unrealized Losses Net Holding Period Gains (Losses) Fair Value % of Total Fair Value December 31, 2019 Available-for-sale securities: Fixed maturities: U.S. government obligations $ 13,100.7 $ 194.1 $ (43.7) $ 0 $ 13,251.1 33.7 % State and local government obligations 1,686.0 30.0 (2.7) 0 1,713.3 4.4 Corporate debt securities 6,860.3 206.6 (0.5) 1.3 7,067.7 18.0 Residential mortgage-backed securities 625.0 4.5 (2.0) 0 627.5 1.6 Commercial mortgage-backed securities 5,020.7 61.5 (6.0) 0 5,076.2 12.9 Other asset-backed securities 5,164.7 16.2 (1.4) 0 5,179.5 13.2 Redeemable preferred stocks 185.7 4.1 (1.3) 6.5 195.0 0.5 Total fixed maturities 32,643.1 517.0 (57.6) 7.8 33,110.3 84.3 Short-term investments 1,798.8 0 0 0 1,798.8 4.6 Total available-for-sale securities 34,441.9 517.0 (57.6) 7.8 34,909.1 88.9 Equity securities: Nonredeemable preferred stocks 971.3 0 0 67.6 1,038.9 2.7 Common equities 1,125.5 0 0 2,180.8 3,306.3 8.4 Total equity securities 2,096.8 0 0 2,248.4 4,345.2 11.1 Total portfolio 1 $ 36,538.7 $ 517.0 $ (57.6) $ 2,256.2 $ 39,254.3 100.0 % 1 Our portfolio reflects the effect of net unsettled security transactions; at December 31, 2020, $95.5 million was included in “other liabilities,” compared to $11.9 million at December 31, 2019. The total fair value of the portfolio at December 31, 2020 and 2019 included $6.2 billion and $3.2 billion, respectively, of securities held in a consolidated, non-insurance subsidiary of the holding company, net of any unsettled security transactions. A portion of these investments were sold and proceeds used to pay our common share dividends; see Note 14 – Dividends |
Hybrid Securities | Certain securities in our fixed maturities portfolio are accounted for as hybrid securities because they contain embedded derivatives that are not deemed to be clearly and closely related to the host investments. These securities are reported at fair value at December 31: (millions) 2020 2019 Fixed Maturities: State and local government obligations $ 0 $ 3.5 Corporate debt securities 188.4 91.2 Other asset-backed securities 34.8 2.6 Redeemable preferred stocks 131.4 92.1 Total hybrid securities $ 354.6 $ 189.4 |
Composition of Fixed Maturities by Maturity | The composition of fixed maturities by maturity at December 31, 2020, was: (millions) Cost Fair Value Less than one year $ 5,734.9 $ 5,765.4 One to five years 20,769.2 21,377.3 Five to ten years 8,939.8 9,512.2 Ten years or greater 145.2 156.0 Total $ 35,589.1 $ 36,810.9 |
Gross Unrealized Losses by Major Security | The following tables show the composition of gross unrealized losses by major security type and by the length of time that individual securities have been in a continuous unrealized loss position: Total No. of Sec. Total Gross Unrealized Losses Less than 12 Months 12 Months or Greater ($ in millions) No. of Sec. Fair Unrealized Losses No. of Sec. Fair Unrealized Losses December 31, 2020 U.S. government obligations 9 $ 1,511.0 $ (3.7) 9 $ 1,511.0 $ (3.7) 0 $ 0 $ 0 State and local government obligations 30 208.7 (0.7) 30 208.7 (0.7) 0 0 0 Corporate debt securities 7 129.4 (0.1) 7 129.4 (0.1) 0 0 0 Residential mortgage-backed securities 21 44.4 (0.9) 0 0 0 21 44.4 (0.9) Commercial mortgage-backed securities 43 893.3 (10.0) 9 93.6 (0.3) 34 799.7 (9.7) Other asset-backed securities 22 183.7 (0.5) 9 74.4 (0.1) 13 109.3 (0.4) Redeemable preferred stocks 1 11.0 (1.4) 0 0 0 1 11.0 (1.4) Total fixed maturities 133 $ 2,981.5 $ (17.3) 64 $ 2,017.1 $ (4.9) 69 $ 964.4 $ (12.4) Total No. of Sec. Total Gross Less than 12 Months 12 Months or Greater ($ in millions) No. of Sec. Fair Unrealized No. of Sec. Fair Unrealized December 31, 2019 U.S. government obligations 23 $ 5,152.4 $ (43.7) 19 $ 5,057.2 $ (43.6) 4 $ 95.2 $ (0.1) State and local government obligations 67 314.3 (2.7) 52 287.5 (2.6) 15 26.8 (0.1) Corporate debt securities 16 247.6 (0.5) 12 191.4 (0.5) 4 56.2 0 Residential mortgage-backed securities 41 292.8 (2.0) 12 163.7 (0.9) 29 129.1 (1.1) Commercial mortgage-backed securities 98 1,742.4 (6.0) 79 1,400.0 (5.3) 19 342.4 (0.7) Other asset-backed securities 61 1,000.6 (1.4) 43 938.5 (0.9) 18 62.1 (0.5) Redeemable preferred stocks 1 11.2 (1.3) 0 0 0 1 11.2 (1.3) Total fixed maturities 307 $ 8,761.3 $ (57.6) 217 $ 8,038.3 $ (53.8) 90 $ 723.0 $ (3.8) |
Components of Net Realized Gains (Losses) | The components of net realized gains (losses) for the years ended December 31, were: (millions) 2020 2019 2018 Gross realized gains on security sales Available-for-sale securities: U.S. government obligations $ 612.5 $ 164.4 $ 6.7 State and local government obligations 102.4 6.1 9.5 Corporate and other debt securities 161.9 100.1 2.4 Residential mortgage-backed securities 0 0.2 0 Commercial mortgage-backed securities 23.7 8.1 2.0 Other asset-backed securities 0.2 0.8 0.1 Redeemable preferred stocks 0 2.2 4.5 Total available-for-sale securities 900.7 281.9 25.2 Equity securities: Nonredeemable preferred stocks 24.4 36.2 4.1 Common equities 88.6 61.7 286.6 Total equity securities 113.0 97.9 290.7 Subtotal gross realized gains on security sales 1,013.7 379.8 315.9 Gross realized losses on security sales Available-for-sale securities: U.S. government obligations (9.6) (20.4) (98.7) State and local government obligations (0.7) (0.7) (2.9) Corporate and other debt securities (6.5) (7.9) (10.4) Residential mortgage-backed securities 0 (2.3) (0.1) Commercial mortgage-backed securities (12.8) (2.2) (6.3) Other asset-backed securities 0 (0.1) (1.1) Redeemable preferred stocks 0 (0.4) (0.1) Total available-for-sale securities (29.6) (34.0) (119.6) Equity securities: Nonredeemable preferred stocks (8.7) (3.2) (3.9) Common equities (60.7) (8.0) (21.7) Total equity securities (69.4) (11.2) (25.6) Subtotal gross realized losses on security sales (99.0) (45.2) (145.2) Net realized gains (losses) on security sales Available-for-sale securities: U.S. government obligations 602.9 144.0 (92.0) State and local government obligations 101.7 5.4 6.6 Corporate and other debt securities 155.4 92.2 (8.0) Residential mortgage-backed securities 0 (2.1) (0.1) Commercial mortgage-backed securities 10.9 5.9 (4.3) Other asset-backed securities 0.2 0.7 (1.0) Redeemable preferred stocks 0 1.8 4.4 Total available-for-sale securities 871.1 247.9 (94.4) Equity securities: Nonredeemable preferred stocks 15.7 33.0 0.2 Common equities 27.9 53.7 264.9 Total equity securities 43.6 86.7 265.1 Subtotal net realized gains (losses) on security sales 914.7 334.6 170.7 Net holding period gains (losses) Hybrid securities 7.4 18.0 (10.4) Equity securities 706.5 739.9 (497.5) Derivatives 1.4 0 0 Subtotal net holding period gains (losses) 715.3 757.9 (507.9) Other-than-temporary impairment losses Other asset impairment 0 (63.3) (68.3) Subtotal other-than-temporary impairment losses 0 (63.3) (68.3) Total net realized gains (losses) on securities $ 1,630.0 $ 1,029.2 $ (405.5) |
Components of Equity Realized Gains (Losses) | The following table reflects our holding period realized gains (losses) on equity securities recognized for the respective years ended December 31, for equity securities held at the respective year end: (millions) 2020 2019 2018 Total net gains (losses) recognized during the period on equity securities $ 750.1 $ 826.6 $ (232.4) Less: Net gains (losses) recognized on equity securities sold during the period 43.6 86.7 265.1 Net holding period gains (losses) recognized during the period on equity securities held at period end $ 706.5 $ 739.9 $ (497.5) |
Components of Net Investment Income | The components of net investment income for the years ended December 31, were: (millions) 2020 2019 2018 Available-for-sale securities: Fixed maturities: U.S. government obligations $ 166.3 $ 268.6 $ 196.8 State and local government obligations 62.7 36.5 37.7 Corporate debt securities 284.0 268.9 217.9 Residential mortgage-backed securities 11.8 21.6 27.6 Commercial mortgage-backed securities 152.9 150.1 93.9 Other asset-backed securities 96.7 117.3 75.7 Redeemable preferred stocks 14.9 19.0 12.3 Total fixed maturities 789.3 882.0 661.9 Short-term investments 29.0 41.7 52.9 Total available-for-sale securities 818.3 923.7 714.8 Equity securities: Nonredeemable preferred stocks 60.6 61.8 45.9 Common equities 57.7 56.5 59.8 Total equity securities 118.3 118.3 105.7 Investment income 936.6 1,042.0 820.5 Investment expenses (20.0) (24.6) (24.3) Net investment income $ 916.6 $ 1,017.4 $ 796.2 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Composition of Investment Portfolio by Major Security Type | The composition of the investment portfolio by major security type and our outstanding debt was: Fair Value (millions) Level 1 Level 2 Level 3 Total Cost December 31, 2020 Fixed maturities: U.S. government obligations $ 12,740.0 $ 0 $ 0 $ 12,740.0 $ 12,437.9 State and local government obligations 0 3,221.8 0 3,221.8 3,099.4 Corporate debt securities 0 10,185.2 0 10,185.2 9,579.7 Subtotal 12,740.0 13,407.0 0 26,147.0 25,117.0 Asset-backed securities: Residential mortgage-backed 0 509.5 0 509.5 503.3 Commercial mortgage-backed 0 6,175.1 0 6,175.1 6,042.6 Other asset-backed 0 3,784.6 0 3,784.6 3,745.0 Subtotal asset-backed securities 0 10,469.2 0 10,469.2 10,290.9 Redeemable preferred stocks: Financials 0 51.6 0 51.6 51.1 Utilities 0 11.7 0 11.7 10.0 Industrials 10.8 120.6 0 131.4 120.1 Subtotal redeemable preferred stocks 10.8 183.9 0 194.7 181.2 Total fixed maturities 12,750.8 24,060.1 0 36,810.9 35,589.1 Short-term investments 4,704.9 513.6 0 5,218.5 5,218.5 Total available-for-sale securities 17,455.7 24,573.7 0 42,029.4 40,807.6 Equity securities: Nonredeemable preferred stocks: Financials 117.7 1,212.3 35.0 1,365.0 1,278.6 Utilities 0 41.9 0 41.9 40.0 Industrials 0 24.3 16.7 41.0 40.1 Subtotal nonredeemable preferred stocks 117.7 1,278.5 51.7 1,447.9 1,358.7 Common equities: Common stocks 4,049.9 0 0 4,049.9 1,184.2 Other risk investments 0 0 3.1 3.1 3.1 Subtotal common equities 4,049.9 0 3.1 4,053.0 1,187.3 Total equity securities 4,167.6 1,278.5 54.8 5,500.9 2,546.0 Total portfolio $ 21,623.3 $ 25,852.2 $ 54.8 $ 47,530.3 $ 43,353.6 Debt $ 0 $ 6,793.5 $ 0 $ 6,793.5 $ 5,396.1 Fair Value (millions) Level 1 Level 2 Level 3 Total Cost December 31, 2019 Fixed maturities: U.S. government obligations $ 13,251.1 $ 0 $ 0 $ 13,251.1 $ 13,100.7 State and local government obligations 0 1,713.3 0 1,713.3 1,686.0 Corporate debt securities 0 7,067.7 0 7,067.7 6,860.3 Subtotal 13,251.1 8,781.0 0 22,032.1 21,647.0 Asset-backed securities: Residential mortgage-backed 0 627.5 0 627.5 625.0 Commercial mortgage-backed 0 5,076.2 0 5,076.2 5,020.7 Other asset-backed 0 5,179.5 0 5,179.5 5,164.7 Subtotal asset-backed securities 0 10,883.2 0 10,883.2 10,810.4 Redeemable preferred stocks: Financials 0 51.7 0 51.7 51.5 Utilities 0 11.1 0 11.1 10.0 Industrials 11.1 121.1 0 132.2 124.2 Subtotal redeemable preferred stocks 11.1 183.9 0 195.0 185.7 Total fixed maturities 13,262.2 19,848.1 0 33,110.3 32,643.1 Short-term investments 1,797.4 1.4 0 1,798.8 1,798.8 Total fixed maturities and short-term 15,059.6 19,849.5 0 34,909.1 34,441.9 Equity securities: Nonredeemable preferred stocks: Financials 77.4 850.7 27.1 955.2 891.3 Utilities 0 42.3 0 42.3 39.9 Industrials 0 25.4 16.0 41.4 40.1 Subtotal nonredeemable preferred stocks 77.4 918.4 43.1 1,038.9 971.3 Common equities: Common stocks 3,306.0 0 0 3,306.0 1,125.2 Other risk investments 0 0 0.3 0.3 0.3 Subtotal common equities 3,306.0 0 0.3 3,306.3 1,125.5 Total equity securities 3,383.4 918.4 43.4 4,345.2 2,096.8 Total available-for-sale portfolio $ 18,443.0 $ 20,767.9 $ 43.4 $ 39,254.3 $ 36,538.7 Debt $ 0 $ 5,119.6 $ 0 $ 5,119.6 $ 4,407.1 |
Summary of Changes in Fair Value Associated With Level 3 Assets | The following tables provide a summary of changes in fair value associated with Level 3 assets for the years ended December 31, 2020 and 2019: Level 3 Fair Value (millions) Fair Value at Dec. 31, 2019 Calls/ Purchases Sales Net Realized Change in Net Transfers In (Out) Fair Value at Dec. 31, 2020 Equity securities: Nonredeemable preferred stocks: Financials $ 27.1 $ (27.1) $ 35.0 $ 0 $ 0 $ 0 $ 0 $ 35.0 Industrials 16.0 0 0 0 0 0.7 0 16.7 Common equities: Other risk investments 0.3 0 2.8 0 0 0 0 3.1 Total Level 3 securities $ 43.4 $ (27.1) $ 37.8 $ 0 $ 0 $ 0.7 $ 0 $ 54.8 Level 3 Fair Value (millions) Fair Value at Dec. 31, 2018 Calls/ Purchases Sales Net Realized Change in Net Fair Value at Dec. 31, 2019 Equity securities: Nonredeemable preferred stocks: Financials $ 25.1 $ 0 $ 2.0 $ 0 $ 0 $ 0 $ 0 $ 27.1 Industrials 5.0 0 10.0 0 0 1.0 0 16.0 Common equities: Other risk investments 0.3 0 0 0 0 0 0 0.3 Total Level 3 securities $ 30.4 $ 0 $ 12.0 $ 0 $ 0 $ 1.0 $ 0 $ 43.4 |
Summary of Quantitative Information about Level 3 Fair Value Measurements | The following tables provide a summary of the quantitative information about Level 3 fair value measurements for our applicable securities at December 31: Quantitative Information about Level 3 Fair Value Measurements ($ in millions) Fair Value at Dec. 31, 2020 Valuation Technique Unobservable Input Unobservable Input Assumption Equity securities: Nonredeemable preferred stocks: Financials 1 $ 25.0 Internal price Unadjusted purchase price per share 3.7 Financials 2 10.0 Internal price Unadjusted purchase price per share 16.9 Industrials 6.9 Pricing firm Market Approach (Guideline Public Company Method) 5.4 Industrials 9.8 Pricing firm Market Approach (Guideline Public Company Method) 4.8 Subtotal Level 3 securities 51.7 Pricing exemption securities 3.1 Total Level 3 securities $ 54.8 1 This security was purchased in May 2020. 2 This security was purchased in November 2020. Quantitative Information about Level 3 Fair Value Measurements ($ in millions) Fair Value at Dec. 31, 2019 Valuation Technique Unobservable Input Unobservable Input Assumption Equity securities: Nonredeemable preferred stocks: Financials $ 27.1 Pricing firm Recent transaction price per share 9.0 Industrials 6.0 Pricing firm Performance-based transaction price adjustment per share 4.8 Industrials 1 10.0 Internal price Unadjusted purchase price per share 4.9 Subtotal Level 3 securities 43.1 Pricing exemption securities 0.3 Total Level 3 securities $ 43.4 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Table | Debt at December 31, consisted of: 2020 2019 (millions) Carrying Fair Carrying Fair 3.75% Senior Notes due 2021 (issued: $500.0, August 2011) $ 499.8 $ 510.9 $ 499.4 $ 515.6 2.45% Senior Notes due 2027 (issued: $500.0, August 2016) 497.3 541.1 496.9 501.5 6 5/8% Senior Notes due 2029 (issued: $300.0, March 1999) 296.9 409.4 296.6 392.5 4.00% Senior Notes due 2029 (issued: $550.0, October 2018) 545.5 660.4 545.0 614.3 3.20% Senior Notes due 2030 (issued: $500.0, March 2020) 496.1 575.5 0 0 6.25% Senior Notes due 2032 (issued: $400.0, November 2002) 396.0 582.0 395.7 552.6 4.35% Senior Notes due 2044 (issued: $350.0, April 2014) 346.7 459.7 346.7 417.0 3.70% Senior Notes due 2045 (issued: $400.0, January 2015) 395.5 481.0 395.4 434.2 4.125% Senior Notes due 2047 (issued: $850.0, April 2017) 841.7 1,113.1 841.6 986.1 4.20% Senior Notes due 2048 (issued: $600.0, March 2018) 590.0 806.7 589.8 705.8 3.95% Senior Notes due 2050 (issued: $500.0, March 2020) 490.6 653.7 0 0 Total $ 5,396.1 $ 6,793.5 $ 4,407.1 $ 5,119.6 |
Aggregate Principal Payments on Debt Outstanding | Aggregate required principal payments on debt outstanding at December 31, 2020, were as follows: (millions) Year Payments 2021 $ 500 2022 0 2023 0 2024 0 2025 0 Thereafter 4,950 Total $ 5,450 |
Cash Flow Hedging | |
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges Included in Accumulated Other Comprehensive Income | The following table shows the original gain (loss) recognized at debt issuance and the unamortized balance at December 31, 2020, on a pretax basis: (millions) Unrealized Unamortized 3.75% Senior Notes $ (5.1) $ (0.4) 6 5/8% Senior Notes (4.2) (2.2) 6.25% Senior Notes 5.1 3.2 4.35% Senior Notes (1.6) (1.4) 3.70% Senior Notes (12.9) (11.4) 4.125% Senior Notes (8.0) (7.5) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Provision | The components of our income tax provision for the years ended December 31, were as follows: (millions) 2020 2019 2018 Current tax provision Federal $ 1,395.7 $ 1,133.2 $ 673.1 State 35.6 27.3 21.5 Deferred tax expense (benefit) Federal 35.8 16.8 (145.9) State 1.5 3.0 (6.1) Total income tax provision $ 1,468.6 $ 1,180.3 $ 542.6 |
Reconciliation of Provision (Benefit) for Income Taxes Reported in Consolidated Statements of Income with Tax at Statutory Rate | The provision for income taxes in the accompanying consolidated statements of comprehensive income differed from the statutory rate for the years ended December 31, as follows: (millions) 2020 2019 2018 Income before income taxes $ 7,173.2 $ 5,160.3 $ 3,163.6 Tax at statutory federal rate $ 1,506.4 21 % $ 1,083.7 21 % $ 664.4 21 % Tax effect of: Reversal of prior year tax credits 0 0 163.2 3 0 0 Tax credits 1 (5.4) 0 (43.9) (1) (76.3) (2) Stock-based compensation (22.7) (1) (25.9) (1) (25.1) (1) Tax-deductible dividends (25.1) (1) (14.6) 0 (14.6) 0 Tax-preferenced investment income (15.2) 0 (14.0) 0 (15.6) (1) Nondeductible compensation expense 6.4 0 8.1 0 (0.2) 0 State income taxes, net of federal taxes 29.3 1 24.0 1 12.2 0 Other items, net (5.1) 0 (0.3) 0 (2.2) 0 Total income tax provision $ 1,468.6 20 % $ 1,180.3 23 % $ 542.6 17 % 1 Includes $0, $38.1 million, and $71.0 million for 2020, 2019, and 2018, respectively, of benefits on investments in federal renewable energy tax credit funds. |
Components of Net Deferred Tax Assets | The following table shows the components of the net deferred tax asset (liability) at December 31, 2020 and 2019, respectively. (millions) 2020 2019 Federal deferred income tax assets: Unearned premiums reserve $ 552.5 $ 498.2 Non-deductible accruals 238.2 181.8 Loss and loss adjustment expense reserves 170.0 153.3 Operating lease liabilities 37.4 42.3 Investment basis difference 18.6 27.4 Hedges on forecasted transactions 4.1 4.4 Other 25.8 15.3 Federal deferred income tax liabilities: Net holding period gains on equity securities (620.5) (472.2) Deferred acquisition costs (259.8) (221.9) Net unrealized gains on fixed-maturity securities (253.4) (96.5) Property and equipment (105.6) (108.6) Loss and loss adjustment expense reserve transition adjustment (39.3) (47.2) Operating lease assets (37.4) (42.3) Intangible assets (27.6) (38.9) Prepaid expenses (5.5) (4.8) Other (7.5) (8.3) Net federal deferred income taxes (310.0) (118.0) State deferred income tax assets 1 11.9 15.2 State deferred income tax liabilities 1 (4.0) (1.2) Total $ (302.1) $ (104.0) 1 Recorded in “other assets” and “accounts payable, accrued expenses, and other liabilities,” respectively, on the consolidated balance sheets; the prior year amounts were reclassified into these line items from “net federal deferred income taxes” to conform to the current year presentation. |
Loss And Loss Adjustment Expe_2
Loss And Loss Adjustment Expense Reserves (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Activity in Loss and Loss Adjustment Expense Reserves | Activity in the loss and LAE reserves is summarized as follows: (millions) 2020 2019 2018 Balance at January 1 $ 18,105.4 $ 15,400.8 $ 13,086.9 Less reinsurance recoverables on unpaid losses 3,212.2 2,572.7 2,170.1 Net balance at January 1 14,893.2 12,828.1 10,916.8 Incurred related to: Current year 24,926.5 25,238.2 21,632.5 Prior years 195.3 232.3 88.5 Total incurred 25,121.8 25,470.5 21,721.0 Paid related to: Current year 15,584.4 16,105.0 13,792.1 Prior years 7,963.0 7,300.4 6,017.6 Total paid 23,547.4 23,405.4 19,809.7 Net balance at December 31 16,467.6 14,893.2 12,828.1 Plus reinsurance recoverables on unpaid losses 3,798.2 3,212.2 2,572.7 Balance at December 31 $ 20,265.8 $ 18,105.4 $ 15,400.8 |
Short-duration Insurance Contracts, Claims Development | Only 2020 is audited; all prior years are considered required supplementary information and, therefore, are unaudited. Expected development on our case reserves is excluded from the IBNR reserves on our vehicle businesses, as discussed above. For the Property business, the IBNR reserves include expected case development based on the methodology used in establishing the case reserves for that segment. The cumulative number of incurred claims are based on accident coverages (e.g., bodily injury, collision, comprehensive, personal injury protection, property damage) related to opened claims. Coverage counts related to claims closed without payment are excluded from the cumulative number of incurred claims. Personal Lines - Agency - Liability ($ in millions) As of Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2020 For the years ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Incurred Claim Counts Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 4,082.9 $ 4,130.0 $ 4,152.0 $ 4,177.3 $ 4,137.8 $ 0 740,535 2017 4,474.8 4,485.8 4,511.1 4,546.4 72.3 779,303 2018 5,141.8 5,182.1 5,192.7 100.0 856,108 2019 5,885.0 5,886.9 264.3 913,063 2020 5,433.8 926.8 750,654 Total $ 25,197.6 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the years ended December 31, Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 1,941.6 $ 3,231.5 $ 3,723.1 $ 3,969.5 $ 4,062.5 2017 2,074.0 3,478.5 4,048.5 4,285.5 2018 2,378.0 4,028.7 4,635.0 2019 2,715.2 4,533.2 2020 2,383.0 Total $ 19,899.2 All outstanding liabilities before 2016, net of reinsurance 1 80.3 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 5,378.7 1 Required supplementary information (unaudited) Personal Lines - Agency - Physical Damage ($ in millions) As of Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2020 For the years ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Incurred Claim Counts Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 2,423.4 $ 2,398.9 $ 2,401.8 $ 2,400.1 $ 2,402.8 $ 0 1,399,156 2017 2,635.5 2,638.5 2,643.5 2,640.6 (4.0) 1,514,873 2018 2,819.0 2,822.6 2,821.7 (3.4) 1,694,997 2019 3,277.9 3,254.7 (13.4) 1,876,942 2020 3,328.5 (183.4) 1,768,482 Total $ 14,448.3 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the years ended December 31, Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 2,391.0 $ 2,406.9 $ 2,402.1 $ 2,402.2 $ 2,401.8 2017 2,599.8 2,643.2 2,640.9 2,640.8 2018 2,769.1 2,827.4 2,819.9 2019 3,242.5 3,259.2 2020 3,250.1 Total $ 14,371.8 All outstanding liabilities before 2016, net of reinsurance 1 5.9 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 82.4 1 Required supplementary information (unaudited) Personal Lines - Direct - Liability ($ in millions) As of Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2020 For the years ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Incurred Claim Counts Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 3,819.0 $ 3,843.9 $ 3,871.2 $ 3,897.8 $ 3,866.1 $ 0 735,791 2017 4,209.5 4,209.9 4,229.3 4,254.4 61.3 772,986 2018 4,904.8 4,980.9 5,003.2 88.0 870,978 2019 5,756.5 5,811.7 243.5 954,209 2020 5,356.9 901.1 786,809 Total $ 24,292.3 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the years ended December 31, Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 1,780.6 $ 2,991.1 $ 3,476.9 $ 3,714.6 $ 3,799.1 2017 1,912.6 3,255.2 3,808.3 4,035.6 2018 2,235.1 3,863.5 4,481.7 2019 2,630.3 4,452.5 2020 2,301.3 Total $ 19,070.2 All outstanding liabilities before 2016, net of reinsurance 1 55.2 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 5,277.3 1 Required supplementary information (unaudited) Personal Lines - Direct - Physical Damage ($ in millions) As of Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2020 For the years ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Incurred Claim Counts Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 2,521.0 $ 2,475.4 $ 2,477.7 $ 2,475.6 $ 2,478.5 $ 0 1,676,396 2017 2,750.6 2,743.7 2,749.0 2,745.6 (5.1) 1,791,582 2018 3,202.3 3,181.9 3,182.0 (5.1) 2,069,684 2019 3,787.9 3,737.8 (22.7) 2,269,857 2020 3,775.6 (264.5) 2,137,810 Total $ 15,919.5 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the years ended December 31, Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 2,505.0 $ 2,485.8 $ 2,479.3 $ 2,478.5 $ 2,477.8 2017 2,742.1 2,753.5 2,748.4 2,747.6 2018 3,170.0 3,193.8 3,183.0 2019 3,782.6 3,751.3 2020 3,720.0 Total $ 15,879.7 All outstanding liabilities before 2016, net of reinsurance 1 0.8 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 40.6 1 Required supplementary information (unaudited) Commercial Lines - Liability ($ in millions) As of Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2020 For the years ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Incurred Claim Counts Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 1,185.8 $ 1,204.8 $ 1,231.1 $ 1,238.9 $ 1,224.9 $ 0 92,688 2017 1,374.1 1,366.6 1,393.3 1,374.6 18.3 97,448 2018 1,700.8 1,736.5 1,789.7 41.5 111,767 2019 2,103.1 2,175.6 116.3 126,959 2020 2,161.8 369.8 105,900 Total $ 8,726.6 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the years ended December 31, Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 298.6 $ 639.9 $ 886.0 $ 1,073.3 $ 1,153.4 2017 325.8 712.9 1,027.3 1,183.6 2018 382.7 913.4 1,290.5 2019 455.4 1,120.1 2020 427.6 Total $ 5,175.2 All outstanding liabilities before 2016, net of reinsurance 1 34.9 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 3,586.3 1 Required supplementary information (unaudited) Commercial Lines - Physical Damage ($ in millions) As of Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2020 For the years ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Incurred Claim Counts Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 379.6 $ 379.8 $ 378.2 $ 377.8 $ 378.1 $ 0 74,199 2017 415.4 412.1 411.0 409.9 (0.9) 77,170 2018 475.0 478.2 476.6 (1.4) 82,134 2019 577.8 574.2 (3.3) 88,897 2020 575.2 (14.1) 87,333 Total $ 2,414.0 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the years ended December 31, Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 336.7 $ 376.9 $ 376.8 $ 377.5 $ 377.6 2017 369.0 409.4 409.2 409.4 2018 426.0 475.1 475.3 2019 516.9 571.5 2020 497.9 Total $ 2,331.7 All outstanding liabilities before 2016, net of reinsurance 1 0.4 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 82.7 1 Required supplementary information (unaudited) Property Business ($ in millions) As of Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2020 For the years ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Incurred Claim Counts Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 568.6 $ 541.2 $ 537.1 $ 536.5 $ 535.5 $ 2.4 53,693 2017 672.8 680.9 683.4 681.3 1.3 74,140 2018 839.0 845.2 845.4 18.2 63,722 2019 971.7 965.2 11.7 72,396 2020 1,223.5 252.4 80,820 Total $ 4,250.9 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the years ended December 31, Accident Year 2016 1 2017 1 2018 1 2019 1 2020 2016 $ 415.2 $ 498.2 $ 516.9 $ 526.4 $ 530.8 2017 506.7 647.1 670.1 675.0 2018 595.9 781.2 812.6 2019 708.0 930.4 2020 832.5 Total $ 3,781.3 All outstanding liabilities before 2016, net of reinsurance 1 5.1 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 474.7 1 Required supplementary information (unaudited) |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | The following table reconciles the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses: (millions) 2020 2019 Net outstanding liabilities Personal Lines Agency, Liability $ 5,378.7 $ 5,117.4 Agency, Physical Damage 82.4 32.4 Direct, Liability 5,277.3 4,936.8 Direct, Physical Damage 40.6 (7.7) Commercial Lines Liability 3,586.3 3,080.8 Physical Damage 82.7 66.6 Property 474.7 357.2 Other business 66.7 30.8 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance 14,989.4 13,614.3 Reinsurance recoverable on unpaid claims Personal Lines Agency, Liability 959.6 930.7 Agency, Physical Damage 0 0 Direct, Liability 1,475.8 1,314.1 Direct, Physical Damage 0 0 Commercial Lines Liability 758.5 482.6 Physical Damage (0.3) 0.5 Property 226.9 184.1 Other business 358.6 288.1 Total reinsurance recoverable on unpaid claims 3,779.1 3,200.1 Unallocated claims adjustment expense related to: Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance 1,478.2 1,278.9 Reinsurance recoverable on unpaid claims 19.1 12.1 Total gross liability for unpaid claims and claim adjustment expense $ 20,265.8 $ 18,105.4 |
Short-duration Insurance Contracts, Schedule of Historical Claims Duration | The following table shows the average historical claims duration as of December 31, 2020: (Required Supplementary Information - Unaudited) Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 Personal Lines Agency, Liability 45.6% 31.2% 12.0% 5.6% 2.2% Agency, Physical Damage 98.6 1.2 (0.2) 0 0 Direct, Liability 44.7 31.7 12.6 5.7 2.2 Direct, Physical Damage 100.0 (0.1) (0.3) 0 0 Commercial Lines Liability 21.7 29.3 21.4 13.2 6.5 Physical Damage 88.9 10.0 0 0.1 0 Property 71.9 20.8 3.5 1.2 0.8 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance Disclosures [Abstract] | |
Effect of Reinsurance on Premiums Written and Earned | The effect of reinsurance on premiums written and earned for the years ended December 31, was as follows: 2020 2019 2018 (millions) Written Earned Written Earned Written Earned Direct premiums $ 41,736.4 $ 40,687.7 $ 39,222.0 $ 37,519.7 $ 33,753.1 $ 31,970.2 Ceded premiums: Regulated (648.2) (686.5) (711.1) (670.8) (596.4) (557.5) Non-Regulated (519.5) (739.6) (933.0) (656.5) (546.8) (479.4) Total ceded premiums (1,167.7) (1,426.1) (1,644.1) (1,327.3) (1,143.2) (1,036.9) Net premiums $ 40,568.7 $ 39,261.6 $ 37,577.9 $ 36,192.4 $ 32,609.9 $ 30,933.3 |
Prepaid Reinsurance Premiums and Reinsurance Recoverables | Our reinsurance recoverables and prepaid reinsurance premiums were comprised of the following at December 31: Reinsurance Recoverables Prepaid Reinsurance Premiums ($ in millions) 2020 2019 2020 2019 Regulated: MCCA $ 2,428.8 60 % $ 2,247.1 67 % $ 33.3 9 % $ 71.8 12 % CAIP 397.8 10 332.4 10 84.7 23 93.8 15 NCRF 88.6 2 84.4 2 41.9 11 33.8 5 FHCF 54.8 1 86.0 3 0 0 0 0 NFIP 24.2 1 11.6 0 60.7 17 58.7 9 Other 3.2 0 3.1 0 1.3 0 1.0 0 Total Regulated 2,997.4 74 2,764.6 82 221.9 60 259.1 41 Non-Regulated: Commercial Lines 753.2 19 459.5 14 134.5 37 352.9 56 Property 261.7 7 146.8 4 11.7 3 14.5 3 Other 7.1 0 8.0 0 0 0 0 0 Total Non-Regulated 1,022.0 26 614.3 18 146.2 40 367.4 59 Total $ 4,019.4 100 % $ 3,378.9 100 % $ 368.1 100 % $ 626.5 100 % |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Amounts Charged to Income for Employees Incentive Compensation Plans | The amounts charged to expense for incentive compensation plans for the years ended December 31, were: 2020 2019 2018 (millions) Pretax After Tax Pretax After Tax Pretax After Tax Non-equity incentive plans – cash $ 688.8 $ 544.2 $ 598.4 $ 472.7 $ 539.5 $ 426.2 Equity incentive plans: Equity awards 89.4 70.6 90.1 71.2 76.2 60.2 Liability awards 1 0 0 0.1 0.1 1.0 0.8 |
Assets Held in Deferral Plan Irrevocable Grantor Trust Account | The Deferral Plan Irrevocable Grantor Trust account held the following assets at December 31: (millions) 2020 2019 Progressive common shares 1 $ 134.2 $ 121.6 Other investment funds 2 167.2 151.2 Total $ 301.4 $ 272.8 1 Included 2.8 million and 3.2 million common shares as of December 31, 2020 and 2019, respectively, to be distributed in common shares, and are reported at grant date fair value. 2 Amount is included in other assets on the consolidated balance sheets. |
Employee | |
Summary of Restricted Stock Activity | A summary of all employee restricted equity award activity during the years ended December 31, follows: 2020 2019 2018 Restricted Equity Awards Number of Shares 1 Weighted Number of Shares 1 Weighted Number of Shares 1 Weighted Beginning of year 3,879,077 $ 48.28 4,856,356 $ 38.56 5,858,848 $ 30.47 Add (deduct): Granted 2 1,629,534 55.28 1,835,145 49.61 1,876,109 45.55 Vested (1,861,442) 36.19 (2,691,337) 31.85 (2,811,070) 26.41 Forfeited (76,898) 52.79 (121,087) 43.98 (67,531) 36.10 End of year 3,4 3,570,271 $ 57.68 3,879,077 $ 48.28 4,856,356 $ 38.56 1 Includes restricted stock units. All performance-based awards are included at their target amounts. 2 We reinvest dividend equivalents on restricted stock units. For 2020, 2019, and 2018, the number of units “granted” shown in the table above includes 144,389, 210,159, and 144,688 of dividend equivalent units, respectively, at a weighted average grant date fair value of $0, since the dividends were factored into the grant date fair value of the original grant. 3 At December 31, 2020, the number of shares included 707,293 performance-based units at their target amounts. We expect 1,658,308 units to vest based upon our current estimates of the likelihood of achieving the pre-determined performance goals applicable to each award. 4 At December 31, 2020, the total unrecognized compensation cost related to unvested equity awards was $102.1 million, which includes performance-based awards at their currently estimated vesting value. This compensation expense will be recognized into the consolidated statements of comprehensive income over the weighted average vesting period of 2.3 years. |
Director | |
Summary of Restricted Stock Activity | A summary of all directors’ restricted stock activity during the years ended December 31, follows: 2020 2019 2018 Restricted Stock Number of Weighted Number of Weighted Number of Weighted Beginning of year 38,451 $ 73.43 41,706 $ 62.23 53,284 $ 40.54 Add (deduct): Granted 39,403 74.77 38,451 73.43 41,706 62.23 Vested (38,451) 73.43 (41,706) 62.23 (53,284) 40.54 End of year 1 39,403 $ 74.77 38,451 $ 73.43 41,706 $ 62.23 1 At December 31, 2020, 2019, and 2018, the remaining unrecognized compensation cost related to restricted stock awards was $0.9 million, $0.8 million, and $0.9 million, respectively. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting [Abstract] | ||
Reconciliation of Revenue and Operating Income from Segments to Consolidated | Following are the operating results for the years ended December 31: 2020 2019 2018 (millions) Revenues Pretax Revenues Pretax Revenues Pretax Personal Lines Agency $ 15,789.5 $ 2,236.5 $ 14,904.1 $ 1,673.2 $ 13,017.2 $ 1,435.7 Direct 16,830.6 2,076.5 15,305.9 1,181.4 13,017.5 1,088.5 Total Personal Lines 1 32,620.1 4,313.0 30,210.0 2,854.6 26,034.7 2,524.2 Commercial Lines 4,875.8 634.8 4,427.6 458.8 3,610.9 478.6 Property 2 1,765.7 (125.1) 1,554.8 (26.1) 1,287.7 (88.7) Other indemnity 0 0 0 0 0 0.9 Total underwriting operations 39,261.6 4,822.7 36,192.4 3,287.3 30,933.3 2,915.0 Fees and other revenues 3 603.5 NA 563.7 NA 472.2 NA Service businesses 226.4 20.9 195.0 16.1 158.5 24.4 Investments 4 2,566.6 2,546.6 2,071.2 2,046.6 415.0 390.7 Interest expense NA (217.0) NA (189.7) NA (166.5) Consolidated total $ 42,658.1 $ 7,173.2 $ 39,022.3 $ 5,160.3 $ 31,979.0 $ 3,163.6 NA = Not applicable 1 Personal auto insurance accounted for 94% of the total Personal Lines segment net premiums earned in 2020, 2019, and 2018; insurance for our special lines products (e.g., motorcycles, ATVs, RVs, watercraft, and snowmobiles) accounted for the balance of the Personal Lines net premiums earned. 2 During 2020, 2019, and 2018, pretax profit (loss) includes $56.9 million, $66.3 million, and $72.0 million, respectively, of amortization expense predominately associated with intangible assets. See Note 16 - Goodwill and Intangible Assets for further discussion. 3 Pretax profit (loss) for fees and other revenues is allocated to operating segments. 4 Revenues represent recurring investment income and total net realized gains (losses) on securities; pretax profit is net of investment expenses. | |
Underwriting Margins and Combined Ratios for our Underwriting Operations | Following are the underwriting margins and combined ratios for our underwriting operations for the years ended December 31: 2020 2019 2018 Underwriting Combined Underwriting Combined Underwriting Combined Personal Lines Agency 14.2 % 85.8 11.2 % 88.8 11.0 % 89.0 Direct 12.3 87.7 7.7 92.3 8.4 91.6 Total Personal Lines 13.2 86.8 9.5 90.5 9.7 90.3 Commercial Lines 13.0 87.0 10.4 89.6 13.3 86.7 Property 1 (7.1) 107.1 (1.7) 101.7 (6.9) 106.9 Total underwriting operations 12.3 87.7 9.1 90.9 9.4 90.6 1 Included in 2020, 2019, and 2018, are 3.2 points, 4.3 points, and 5.6 points, respectively, of amortization expense predominately associated with the acquisition of a controlling interest in ARX. |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Components of Other Comprehensive Income (Loss) | The components of other comprehensive income (loss), including reclassification adjustments by income statement line item, for the years ended December 31, were as follows: Components of Changes in (millions) Pretax total Total tax After tax total Total net Net unrealized (Income) loss attributable to NCI Balance at December 31, 2019 $ 435.7 $ (94.0) $ 341.7 $ 360.8 $ (16.4) $ (2.7) Reclassification of disproportionate amounts 1 3.4 (0.7) 2.7 0 0 2.7 Adjusted balance at December 31, 2019 439.1 (94.7) 344.4 360.8 (16.4) 0 Other comprehensive income (loss) before reclassifications: Investment securities 1,557.2 (306.1) 1,251.1 1,251.1 0 0 Loss attributable to noncontrolling interest (NCI) 0 0 0 0 0 0 Total other comprehensive income (loss) before reclassifications 1,557.2 (306.1) 1,251.1 1,251.1 0 0 Less: Reclassification adjustment for amounts realized in net income by income statement line item: Net realized gains (losses) on securities 810.0 (145.4) 664.6 664.6 0 0 Interest expense (1.1) 0.3 (0.8) 0 (0.8) 0 Total reclassification adjustment for amounts realized in net income 808.9 (145.1) 663.8 664.6 (0.8) 0 Total other comprehensive income (loss) 748.3 (161.0) 587.3 586.5 0.8 0 Balance at December 31, 2020 $ 1,187.4 $ (255.7) $ 931.7 $ 947.3 $ (15.6) $ 0 1 Adjustment to reflect the change in value on (income) loss attributable to NCI in conjunction with the purchase transaction (See Note 15 - Redeemable Noncontrolling Interest for additional information). Components of Changes in (millions) Pretax total Total tax After tax total Total net Net unrealized (Income) loss attributable to NCI Balance at December 31, 2018 $ (153.0) $ 32.1 $ (120.9) $ (105.6) $ (17.2) $ 1.9 Other comprehensive income (loss) before reclassifications: Investment securities 825.8 (174.9) 650.9 650.9 0 0 Loss attributable to noncontrolling interest (NCI) (5.9) 1.3 (4.6) 0 0 (4.6) Total other comprehensive income (loss) before reclassifications 819.9 (173.6) 646.3 650.9 0 (4.6) Less: Reclassification adjustment for amounts realized in net income by income statement line item: Net realized gains (losses) on securities 232.2 (47.7) 184.5 184.5 0 0 Interest expense (1.0) 0.2 (0.8) 0 (0.8) 0 Total reclassification adjustment for amounts realized in net income 231.2 (47.5) 183.7 184.5 (0.8) 0 Total other comprehensive income (loss) 588.7 (126.1) 462.6 466.4 0.8 (4.6) Balance at December 31, 2019 $ 435.7 $ (94.0) $ 341.7 $ 360.8 $ (16.4) $ (2.7) Components of Changes in (millions) Pretax total Total tax After tax total Total net Net unrealized (Income) loss attributable to NCI Balance at December 31, 2017 $ 1,977.8 $ (695.6) $ 1,282.2 $ 1,295.0 $ (14.8) $ 2.0 Cumulative effect adjustment 1 (2,006.0) 705.8 (1,300.2) (1,300.2) 0 0 Reclassification of disproportionate amounts 2 (4.3) (3.4) (7.7) (1.1) (3.2) (3.4) Adjusted balance at December 31, 2017 (32.5) 6.8 (25.7) (6.3) (18.0) (1.4) Other comprehensive income (loss) before reclassifications: Investment securities (224.1) 47.0 (177.1) (177.1) 0 0 Loss attributable to noncontrolling interest (NCI) 4.3 (1.0) 3.3 0 0 3.3 Total other comprehensive income (loss) before reclassifications (219.8) 46.0 (173.8) (177.1) 0 3.3 Less: Reclassification adjustment for amounts realized in net income by income statement line item: Net realized gains (losses) on securities (98.3) 20.5 (77.8) (77.8) 0 0 Interest expense (1.0) 0.2 (0.8) 0 (0.8) 0 Total reclassification adjustment for amounts realized in net income (99.3) 20.7 (78.6) (77.8) (0.8) 0 Total other comprehensive income (loss) (120.5) 25.3 (95.2) (99.3) 0.8 3.3 Total at December 31, 2018 $ (153.0) $ 32.1 $ (120.9) $ (105.6) $ (17.2) $ 1.9 1 Reflects the fair value changes on equity securities as of December 31, 2017, which are reported as realized gains (losses) under the new accounting guidance. See Note 1 - Reporting and Accounting Policies for additional information. 2 Reflects the effect of the change in U.S. federal tax rate on our available-for-sale fixed-maturity securities and our hedges on forecasted transactions as of December 31, 2017 (see Note 1 - Reporting and Accounting Policies for additional information) and the adjustment to reflect the change in value on (income) loss attributable to NCI in conjunction with the “put” transaction (see Note 15 - Redeemable Noncontrolling Interest for additional information). |
(Tables)
(Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Operating Assets and Liabilities, Weighted-Average Remaining Term and Discount Rate, Lessee | The following table summarizes the carrying amounts of our operating leased assets and liabilities at December 31, along with key inputs used to discount our lease liabilities: (millions) 2020 2019 Operating lease assets $ 165.5 $ 188.2 Operating lease liabilities $ 179.0 $ 201.5 Weighted-average remaining term 3.0 years 3.3 years Weighted-average discount rate 2.5 % 3.0 % |
Minimum Commitments under Noncancelable Operating Lease Agreements | At December 31, 2020, the following table shows our operating lease liabilities, on an undiscounted basis for the periods indicated: (millions) Commitments 2021 $ 78.9 2022 48.7 2023 29.1 2024 18.4 2025 9.8 Thereafter 0.5 Total 185.4 Interest (6.4) Present value of lease liabilities $ 179.0 |
Lease, Cost | The operating lease expense for the years ended December 31, was as follows: (millions) Expense 2020 $ 95.4 2019 102.0 2018 77.3 |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Dividends [Abstract] | |
Dividends | Following is a summary of our common and preferred share dividends that were declared and/or paid in the last three years: (millions, except per share amounts) Amount Declared Payable Per Share Accrued 1 Common - Annual Variable Dividends: December 2020 January 2021 $ 4.50 $ 2,635.9 December 2019 January 2020 2.25 1,316.9 December 2018 February 2019 2.5140 1,467.9 December 2017 February 2018 1.1247 655.1 Common - Quarterly Dividends: December 2020 January 2021 0.10 58.6 August 2020 October 2020 0.10 58.6 May 2020 July 2020 0.10 58.5 February 2020 April 2020 0.10 58.5 December 2019 January 2020 0.10 58.5 August 2019 October 2019 0.10 58.5 May 2019 July 2019 0.10 58.4 February 2019 April 2019 0.10 58.4 Preferred Dividends: December 2020 March 2021 26.875 13.4 August 2020 September 2020 26.875 13.4 February 2020 March 2020 26.875 13.4 August 2019 September 2019 26.875 13.4 February 2019 March 2019 26.875 13.4 August 2018 September 2018 27.024 13.5 1 The accrual is based on an estimate of shares outstanding as of the record date and the common share accrual is recorded as “dividends payable on common shares” on the Consolidated Balance Sheets; the prior year common share amount was reclassified into this line item from “accounts payable, accrued expenses, and other liabilities” to conform to the current year presentation. |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interest (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | The changes in the components of redeemable NCI during the years ended December 31, were: (millions) 2020 2019 2018 Balance, beginning of year $ 225.6 $ 214.5 $ 503.7 Net income attributable to NCI 0 9.7 5.7 Other comprehensive income (loss) attributable to NCI 1 0 4.6 (3.3) Exercise of stock options 16.0 7.7 9.4 Purchase/change of ARX minority shares (241.6) (11.2) (298.2) Change in redemption value 0 0.3 (2.8) Balance, end of year $ 0 $ 225.6 $ 214.5 1 Amount represents the other comprehensive income (loss) attributable to NCI, as reflected on the consolidated statements of comprehensive income; changes in accumulated other comprehensive income (loss) attributable to NCI due to a change in the minority ownership percentage does not impact the amount of redeemable NCI . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Net Carrying Amount of Other Intangible Assets | The following table is a summary of the net carrying amount of other intangible assets as of December 31: (millions) 2020 2019 Intangible assets subject to amortization $ 159.0 $ 215.9 Indefinite-lived intangible assets 1 12.4 12.4 Total $ 171.4 $ 228.3 1 Indefinite-lived intangible assets are comprised of state insurance and agent licenses. State insurance licenses were previously subject to amortization under superseded accounting guidance and have $0.6 million of accumulated amortization for both years presented. |
Intangible Assets Subject to Amortization | Intangible assets subject to amortization for the years ended December 31, consisted of the following: (millions) 2020 2019 Category Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Policies in force $ 256.2 $ 210.4 $ 45.8 $ 256.2 $ 173.9 $ 82.3 Agency relationships 159.2 65.4 93.8 159.2 54.0 105.2 Software rights 69.1 49.7 19.4 79.1 50.7 28.4 Trade name 0 0 0 34.8 34.8 0 Total $ 484.5 $ 325.5 $ 159.0 $ 529.3 $ 313.4 $ 215.9 |
Amortization on Intangible Assets | The estimated aggregate amortization on these intangible assets for each of the next five years as of December 31, 2020, follows: (millions) Year Amortization 2021 $ 56.6 2022 29.2 2023 13.5 2024 11.4 2025 11.4 |
SCHEDULE I - Summary Of Inves_2
SCHEDULE I - Summary Of Investments - Other Than Investments in Related Parties Summary Of Investments - Other than Investments In Related Parties (Detail) $ in Millions | Dec. 31, 2020USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | $ 43,353.6 |
Fair Value | 47,530.3 |
Amount At Which Shown In The Balance Sheet | 47,530.3 |
Fixed maturities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 35,589.1 |
Fair Value | 36,810.9 |
Amount At Which Shown In The Balance Sheet | 36,810.9 |
Fixed maturities | US Government Agencies and Authorities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 12,437.9 |
Fair Value | 12,740 |
Amount At Which Shown In The Balance Sheet | 12,740 |
Fixed maturities | State and local government obligations | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 3,099.4 |
Fair Value | 3,221.8 |
Amount At Which Shown In The Balance Sheet | 3,221.8 |
Fixed maturities | Public Utilities, Bonds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 577.8 |
Fair Value | 619.9 |
Amount At Which Shown In The Balance Sheet | 619.9 |
Fixed maturities | Corporate And Other Debt Securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 9,001.9 |
Fair Value | 9,565.3 |
Amount At Which Shown In The Balance Sheet | 9,565.3 |
Fixed maturities | Asset-backed Securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 10,290.9 |
Fair Value | 10,469.2 |
Amount At Which Shown In The Balance Sheet | 10,469.2 |
Fixed maturities | Redeemable preferred stocks | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 181.2 |
Fair Value | 194.7 |
Amount At Which Shown In The Balance Sheet | 194.7 |
Equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 2,546 |
Fair Value | 5,500.9 |
Amount At Which Shown In The Balance Sheet | 5,500.9 |
Equity securities | Utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 73.5 |
Fair Value | 164 |
Amount At Which Shown In The Balance Sheet | 164 |
Equity securities | Financials | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 220.1 |
Fair Value | 658.3 |
Amount At Which Shown In The Balance Sheet | 658.3 |
Equity securities | Industrials | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 893.7 |
Fair Value | 3,230.7 |
Amount At Which Shown In The Balance Sheet | 3,230.7 |
Equity securities | Nonredeemable preferred stocks | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 1,358.7 |
Fair Value | 1,447.9 |
Amount At Which Shown In The Balance Sheet | 1,447.9 |
Short-term investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost | 5,218.5 |
Fair Value | 5,218.5 |
Amount At Which Shown In The Balance Sheet | $ 5,218.5 |
SCHEDULE II - Condensed Finan_2
SCHEDULE II - Condensed Financial Information Of Registrant Condensed Statements Of Comprehensive Income (Parent Company) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||
Total revenues | $ 42,658.1 | $ 39,022.3 | $ 31,979 |
Expenses | |||
Interest expense | 217 | 189.7 | 166.5 |
Total expenses | 35,484.9 | 33,862 | 28,815.4 |
Income before income taxes | 7,173.2 | 5,160.3 | 3,163.6 |
Benefit for income taxes | (1,468.6) | (1,180.3) | (542.6) |
Net income attributable to Progressive | 5,704.6 | 3,970.3 | 2,615.3 |
Comprehensive income attributable to Progressive | 6,291.9 | 4,432.9 | 2,520.1 |
Parent Company | |||
Revenues | |||
Dividends from subsidiaries | 4,096.5 | 2,277.9 | 939.1 |
Undistributed income (loss) from subsidiaries | 1,774.4 | 1,821.3 | 1,770.7 |
Equity in net income of subsidiaries | 5,870.9 | 4,099.2 | 2,709.8 |
Intercompany investment income | 16.5 | 31.1 | 39.4 |
Total revenues | 5,887.4 | 4,130.3 | 2,749.2 |
Expenses | |||
Interest expense | 218.1 | 190.4 | 166.8 |
Deferred compensation | 33.9 | 16.6 | 7.5 |
Other operating costs and expenses | 7.2 | 5.5 | 5.1 |
Total expenses | 259.2 | 212.5 | 179.4 |
Income before income taxes | 5,628.2 | 3,917.8 | 2,569.8 |
Benefit for income taxes | 76.4 | 52.5 | 45.5 |
Net income attributable to Progressive | 5,704.6 | 3,970.3 | 2,615.3 |
Other comprehensive income (loss) | 587.3 | 462.6 | (95.2) |
Comprehensive income attributable to Progressive | $ 6,291.9 | $ 4,432.9 | $ 2,520.1 |
SCHEDULE II - Condensed Finan_3
SCHEDULE II - Condensed Financial Information Of Registrant Condensed Balance Sheets (Parent Company) (Detail) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2020 | Aug. 31, 2020 | Feb. 29, 2020 | Dec. 31, 2019 | Aug. 31, 2019 | Feb. 28, 2019 | Dec. 31, 2018 | Aug. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |||
Assets | |||||||||||||
Other assets | $ 800.2 | $ 783.6 | |||||||||||
Total assets | 64,098.3 | 54,910.5 | |||||||||||
Liabilities and Shareholders' Equity | |||||||||||||
Accounts payable, accrued expenses, and other liabilities1 | [1] | 4,955.8 | 4,617 | ||||||||||
Dividends payable on common shares | 2,694.5 | 1,375.4 | |||||||||||
Debt | [2] | 5,396.1 | 4,407.1 | ||||||||||
Total liabilities | 47,059.7 | 41,011.7 | |||||||||||
Redeemable noncontrolling interest (NCI) | 0 | [3] | 225.6 | [3] | $ 214.5 | $ 503.7 | |||||||
Serial Preferred Shares, Series B, no par value (cumulative, liquidation preference of $1,000 per share) (authorized, issued, and outstanding 0.5) | 493.9 | 493.9 | |||||||||||
Common shares, $1.00 par value (authorized 900.0; issued 797.5, including treasury shares of 212.3 and 212.9) | 585.2 | 584.6 | |||||||||||
Paid-in capital | 1,672.9 | 1,573.4 | |||||||||||
Retained earnings | 13,354.9 | 10,679.6 | |||||||||||
Total accumulated other comprehensive income attributable to Progressive | 931.7 | 341.7 | (120.9) | $ 1,282.2 | |||||||||
Total shareholders’ equity | 17,038.6 | 13,673.2 | $ 10,821.8 | ||||||||||
Total liabilities, redeemable NCI, and shareholders’ equity | $ 64,098.3 | $ 54,910.5 | |||||||||||
Common Shares, par value (USD per share) | $ 1 | $ 1 | |||||||||||
Common Shares, authorized (shares) | 900,000,000 | 900,000,000 | |||||||||||
Common Shares, issued (shares) | 797,500,000 | 797,500,000 | |||||||||||
Common Shares, treasury shares (shares) | 212,300,000 | 212,900,000 | |||||||||||
Series B Preferred Stock | |||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||
Dividends payable on common shares | $ 13.4 | $ 13.4 | $ 13.4 | $ 13.4 | $ 13.4 | $ 13.5 | |||||||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | ||||||||||||
Preferred shares, issued (in shares) | 500,000 | ||||||||||||
Serial Preferred Stock | |||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||
Preferred shares, authorized (in shares) | 20,000,000 | 20,000,000 | |||||||||||
Serial Preferred Stock | Series B Preferred Stock | |||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||
Preferred shares, authorized (in shares) | 500,000 | 500,000 | |||||||||||
Preferred stock, par value | $ 0 | $ 0 | |||||||||||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | $ 1,000 | |||||||||||
Preferred shares, issued (in shares) | 500,000 | 500,000 | |||||||||||
Preferred Stock, Shares Outstanding | 500,000 | 500,000 | |||||||||||
Parent Company | |||||||||||||
Assets | |||||||||||||
Investment in affiliate | $ 5 | $ 5 | |||||||||||
Investment in subsidiaries | 18,895.9 | 16,186.8 | |||||||||||
Receivable from investment subsidiary | 5,901.7 | 2,912 | |||||||||||
Intercompany receivable | 473.8 | 678.6 | |||||||||||
Deferred Income Tax Assets, Net | 86.9 | 70.3 | |||||||||||
Other assets | 270.9 | 303.8 | |||||||||||
Total assets | 25,634.2 | 20,156.5 | |||||||||||
Liabilities and Shareholders' Equity | |||||||||||||
Accounts payable, accrued expenses, and other liabilities1 | 505 | 475.2 | |||||||||||
Dividends payable on common shares | 2,694.5 | 1,375.4 | |||||||||||
Debt | 5,396.1 | 4,407.1 | |||||||||||
Total liabilities | 8,595.6 | 6,257.7 | |||||||||||
Redeemable noncontrolling interest (NCI) | 0 | 225.6 | |||||||||||
Serial Preferred Shares, Series B, no par value (cumulative, liquidation preference of $1,000 per share) (authorized, issued, and outstanding 0.5) | 493.9 | 493.9 | |||||||||||
Common shares, $1.00 par value (authorized 900.0; issued 797.5, including treasury shares of 212.3 and 212.9) | 585.2 | 584.6 | |||||||||||
Paid-in capital | 1,672.9 | 1,573.4 | |||||||||||
Retained earnings | 13,354.9 | 10,679.6 | |||||||||||
Total accumulated other comprehensive income attributable to Progressive | 931.7 | 341.7 | |||||||||||
Total shareholders’ equity | 17,038.6 | 13,673.2 | |||||||||||
Total liabilities, redeemable NCI, and shareholders’ equity | $ 25,634.2 | $ 20,156.5 | |||||||||||
Common Shares, par value (USD per share) | $ 1 | $ 1 | |||||||||||
Common Shares, authorized (shares) | 900,000,000 | 900,000,000 | |||||||||||
Common Shares, issued (shares) | 797,500,000 | 797,500,000 | |||||||||||
Common Shares, treasury shares (shares) | 212,300,000 | 212,900,000 | |||||||||||
Parent Company | Series B Preferred Stock | |||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||
Dividends payable on common shares | $ 13.4 | ||||||||||||
Parent Company | Serial Preferred Stock | |||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||
Preferred shares, authorized (in shares) | 20,000,000 | 20,000,000 | |||||||||||
Parent Company | Serial Preferred Stock | Series B Preferred Stock | |||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||
Preferred shares, authorized (in shares) | 500,000 | 500,000 | |||||||||||
Preferred stock, par value | $ 0 | $ 0 | |||||||||||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | $ 1,000 | |||||||||||
Preferred shares, issued (in shares) | 500,000 | 500,000 | |||||||||||
Preferred Stock, Shares Outstanding | 500,000 | 500,000 | |||||||||||
[1] | See Note 1 – Reporting and Accounting Policies for Commitments and Contingencies and Note 12 – Litigation | ||||||||||||
[2] | Consists of both short-term and long-term debt. See Note 4 – Debt for further discussion . | ||||||||||||
[3] | See Note 15 – Redeemable Noncontrolling Interest for further discussion . |
SCHEDULE II - Condensed Finan_4
SCHEDULE II - Condensed Financial Information Of Registrant Condensed Statements Of Cash Flows (Parent Company) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows From Operating Activities: | |||
Net income attributable to Progressive | $ 5,704.6 | $ 3,970.3 | $ 2,615.3 |
Adjustments to reconcile net income attributable to Progressive to net cash provided by operating activities: | |||
Amortization of equity-based compensation | 89.4 | 90.2 | 77.2 |
Changes in: | |||
Accounts payable, accrued expenses, and other liabilities | 328.9 | 611.6 | 746.6 |
Income taxes | (23.1) | 227.2 | (158.7) |
Other, net | (2.9) | (260.8) | (57.7) |
Net cash provided by operating activities | 6,905.6 | 6,261.6 | 6,284.8 |
Cash Flows From Investing Activities: | |||
Net cash used in investing activities | (6,117.7) | (4,338.3) | (7,034.9) |
Cash Flows From Financing Activities: | |||
Proceeds from exercise of equity options | 7.3 | 1.6 | 3.3 |
Net proceeds from debt issuance | 986.3 | 0 | 1,134 |
Net proceeds from preferred stock issuance | 0 | 0 | 493.9 |
Dividends paid to common shareholders | (1,551) | (1,643.2) | (654.9) |
Dividends paid to preferred shareholders | (26.8) | (26.8) | (13.5) |
Acquisition of treasury shares for restricted stock tax liabilities | (68.7) | (84.4) | (78.6) |
Acquisition of treasury shares acquired in open market | (42.9) | (6.9) | (0.4) |
Net cash provided by (used in) financing activities | (938.8) | (1,770.9) | 549.8 |
Change in cash, cash equivalents, and restricted cash | (150.9) | 152.4 | (200.3) |
Cash, cash equivalents, and restricted cash - beginning of year | 227.4 | 75 | 275.3 |
Cash, cash equivalents, and restricted cash - end of year | 76.5 | 227.4 | 75 |
Acquisition of additional shares of ARX Holding Corp. | (243) | (11.2) | (296.9) |
Parent Company | |||
Cash Flows From Operating Activities: | |||
Net income attributable to Progressive | 5,704.6 | 3,970.3 | 2,615.3 |
Adjustments to reconcile net income attributable to Progressive to net cash provided by operating activities: | |||
Undistributed (income) loss from subsidiaries | (1,774.4) | (1,821.3) | (1,770.7) |
Amortization of equity-based compensation | 2.9 | 2.9 | 2.4 |
Changes in: | |||
Intercompany receivable | (20.2) | (14.1) | 77.5 |
Accounts payable, accrued expenses, and other liabilities | 52 | 47.1 | (29.6) |
Income taxes | (52.2) | 175.5 | (14.2) |
Other, net | 40.4 | (179.8) | 47.8 |
Net cash provided by operating activities | 3,953.1 | 2,180.6 | 928.5 |
Cash Flows From Investing Activities: | |||
Additional investments in equity securities of consolidated subsidiaries | (27.1) | (152.8) | (178.3) |
(Paid to) received from investment subsidiary | (2,989.7) | (253.1) | (1,192.8) |
Net cash used in investing activities | (3,250) | (411.3) | (1,659) |
Cash Flows From Financing Activities: | |||
Net proceeds from debt issuance | 986.3 | 0 | 1,134 |
Net proceeds from preferred stock issuance | 0 | 0 | 493.9 |
Dividends paid to common shareholders | (1,551) | (1,643.2) | (654.9) |
Dividends paid to preferred shareholders | (26.8) | (26.8) | (13.5) |
Acquisition of treasury shares for restricted stock tax liabilities | (68.7) | (84.4) | (78.6) |
Acquisition of treasury shares acquired in open market | (42.9) | (6.9) | (0.4) |
Loan to ARX Holding Corp. | 0 | (8) | (150) |
Net cash provided by (used in) financing activities | (703.1) | (1,769.3) | 730.5 |
Change in cash, cash equivalents, and restricted cash | 0 | 0 | 0 |
Cash, cash equivalents, and restricted cash - beginning of year | 0 | 0 | 0 |
Cash, cash equivalents, and restricted cash - end of year | 0 | 0 | 0 |
Acquisition of additional shares of ARX Holding Corp. | $ (233.2) | $ (5.4) | $ (287.9) |
SCHEDULE II - Condensed Finan_5
SCHEDULE II - Condensed Financial Information Of Registrant Condensed Financial Information Of Registrant - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 31, 2020 | Feb. 29, 2020 | Aug. 31, 2019 | Feb. 28, 2019 | Aug. 31, 2018 | |
Significant Accounting Policies [Line Items] | ||||||||
Securities held in consolidated non-insurance subsidiary | $ 6,200 | $ 3,200 | ||||||
Dividends payable on common shares | 2,694.5 | 1,375.4 | ||||||
Common equities | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Dividends payable on common shares | 2,694.5 | |||||||
Series B Preferred Stock | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Dividends payable on common shares | 13.4 | $ 13.4 | $ 13.4 | $ 13.4 | $ 13.4 | $ 13.5 | ||
Parent Company | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Securities held in consolidated non-insurance subsidiary | 6,200 | 3,200 | $ 2,900 | |||||
Dividends payable on common shares | 2,694.5 | 1,375.4 | ||||||
Origination of Notes Receivable from Related Parties | 0 | $ 8 | $ 150 | |||||
Other Significant Noncash Transaction, Value of Consideration Received | 225 | |||||||
Parent Company | Series B Preferred Stock | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Dividends payable on common shares | 13.4 | |||||||
Parent Company | Common equities | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Dividends payable on common shares | $ 2,694.5 |
SCHEDULE II - Condensed Finan_6
SCHEDULE II - Condensed Financial Information Of Registrant Progressive Corporation Cash Paid (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income taxes | $ 1,446.3 | $ 954.3 | $ 702.6 |
Interest | 206 | 184.9 | 154 |
Parent Company | |||
Income taxes | 1,411 | 925 | 679.2 |
Interest | $ 206 | $ 184.9 | $ 153.6 |
SCHEDULE III - Supplementary _2
SCHEDULE III - Supplementary Insurance Information Supplementary Insurance Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred policy acquisition costs | $ 1,237.2 | $ 1,056.5 | $ 951.6 |
Future policy benefits, losses, claims, and loss expenses | 20,265.8 | 18,105.4 | 15,400.8 |
Unearned premiums | 13,437.5 | 12,388.8 | 10,686.5 |
Other policy claims and benefits payable | 0 | 0 | 0 |
Premium revenue | 39,261.6 | 36,192.4 | 30,933.3 |
Net investment income | 916.6 | 1,017.4 | 796.2 |
Benefits, claims, losses, and settlement expenses | 25,121.8 | 25,470.5 | 21,721 |
Amortization of deferred policy acquisition costs | 3,273.2 | 3,023.2 | 2,573.7 |
Other operating expenses | 6,647.4 | 4,975.1 | 4,195.8 |
Net premiums written | 40,568.7 | 37,577.9 | 32,609.9 |
Policyholder credit expense | 1,077.4 | 0 | 0 |
Personal Lines Segment | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Premium revenue | 32,620.1 | 30,210 | 26,034.7 |
Benefits, claims, losses, and settlement expenses | 20,611.7 | 21,329.7 | 18,389.8 |
Amortization of deferred policy acquisition costs | 2,437.3 | 2,273.6 | 1,964.4 |
Other operating expenses | 5,762 | 4,227.6 | 3,563.3 |
Net premiums written | 33,342.6 | 31,102.2 | 27,157.6 |
Commercial Lines Segment | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Premium revenue | 4,875.8 | 4,427.6 | 3,610.9 |
Benefits, claims, losses, and settlement expenses | 3,146 | 3,034.8 | 2,394 |
Amortization of deferred policy acquisition costs | 525.7 | 481.2 | 396 |
Other operating expenses | 647.5 | 523.5 | 396 |
Net premiums written | 5,315.3 | 4,791.8 | 3,996.4 |
Property Segment | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Premium revenue | 1,765.7 | 1,554.8 | 1,287.7 |
Benefits, claims, losses, and settlement expenses | 1,364.1 | 1,106 | 937 |
Amortization of deferred policy acquisition costs | 310.2 | 268.4 | 213.3 |
Other operating expenses | 237.9 | 224 | 237.2 |
Net premiums written | 1,910.8 | 1,683.9 | 1,455.9 |
Other Indemnity | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Premium revenue | 0 | 0 | 0 |
Benefits, claims, losses, and settlement expenses | 0 | 0 | 0.2 |
Amortization of deferred policy acquisition costs | 0 | 0 | 0 |
Other operating expenses | 0 | 0 | (0.7) |
Net premiums written | $ 0 | $ 0 | $ 0 |
SCHEDULE IV - Reinsurance Reins
SCHEDULE IV - Reinsurance Reinsurance (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Gross Amount | $ 40,687.7 | $ 37,519.7 | $ 31,970.2 |
Ceded to Other Companies | 1,426.1 | 1,327.3 | 1,036.9 |
Property, Liability and Casualty Insurance Product Line | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Gross Amount | 40,687.7 | 37,519.7 | 31,970.2 |
Ceded to Other Companies | 1,426.1 | 1,327.3 | 1,036.9 |
Assumed From Other Companies | 0 | 0 | 0 |
Net Amount | $ 39,261.6 | $ 36,192.4 | $ 30,933.3 |
Percentage of Amount Assumed to Net | 0.00% | 0.00% | 0.00% |
Reporting and Accounting Poli_4
Reporting and Accounting Policies - Allowance for Credit Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Credit Loss [Abstract] | ||
Balance at January 1 | $ 283.2 | $ 252.1 |
Increase in allowance | 472 | 433.5 |
Write-offs | (399) | (402.4) |
Balance at December 31 | $ 356.2 | $ 283.2 |
Reporting and Accounting Poli_5
Reporting and Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Advertising costs | $ 2,175.7 | $ 1,837.3 | $ 1,422.4 |
Reporting and Accounting Poli_6
Reporting and Accounting Policies Property, Plant, and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 2,397.4 | $ 2,351.8 |
Accumulated depreciation | (1,291.4) | (1,138.1) |
Balance at end of year | 1,106 | 1,213.7 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 151.6 | 161.6 |
Buildings, improvements, and integrated components | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 872.7 | 927.1 |
Capitalized software | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 392.6 | 367.1 |
Software licenses (internal use) | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 335.5 | 286.8 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 253.8 | 223.3 |
Useful Lives | 3 years | |
All other property and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 391.2 | $ 385.9 |
Lower Limit | Buildings, improvements, and integrated components | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 7 years | |
Lower Limit | Capitalized software | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 3 years | |
Lower Limit | Software licenses (internal use) | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 1 year | |
Lower Limit | All other property and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 3 years | |
Upper Limit | Buildings, improvements, and integrated components | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 40 years | |
Upper Limit | Capitalized software | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 10 years | |
Upper Limit | Software licenses (internal use) | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 5 years | |
Upper Limit | All other property and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 10 years |
Reporting and Accounting Poli_7
Reporting and Accounting Policies - Compensation Expense Recognized for Equity-Based Compensation (Details) - Stock compensation plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pretax expense | $ 89.4 | $ 90.2 | $ 77.2 |
Tax benefit | $ 18.8 | $ 18.9 | $ 16.2 |
Reporting and Accounting Poli_8
Reporting and Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Income taxes | $ 1,446.3 | $ 954.3 | $ 702.6 |
Interest | 206 | 184.9 | $ 154 |
Operating lease liabilities | $ 86.5 | $ 84 |
Reporting and Accounting Poli_9
Reporting and Accounting Policies - Additional Information (Details) - USD ($) | 12 Months Ended | |||||||
Dec. 31, 2020 | Aug. 31, 2020 | Feb. 29, 2020 | Dec. 31, 2019 | Aug. 31, 2019 | Feb. 28, 2019 | Dec. 31, 2018 | Aug. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||||||||
Outstanding derivatives | $ 0 | $ 0 | $ 0 | |||||
Held for sale property | 56,600,000 | 32,900,000 | ||||||
Open reverse repurchase commitments | 0 | 0 | ||||||
Dividends payable on common shares | 2,694,500,000 | 1,375,400,000 | ||||||
Right-of-use asset | 60,300,000 | |||||||
Noncancelable purchase obligations, minimum commitment | 830,400,000 | |||||||
Other assets | 800,200,000 | 783,600,000 | ||||||
Software licenses (internal use) | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Other assets | 25,300,000 | |||||||
Series B Preferred Stock | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Dividends payable on common shares | 13,400,000 | $ 13,400,000 | $ 13,400,000 | $ 13,400,000 | $ 13,400,000 | $ 13,500,000 | ||
Cash and Cash Equivalents | ARX Holding Corp. | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Open reverse repurchase commitments | 93,500,000 | $ 46,300,000 | $ 117,300,000 | |||||
Common equities | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Dividends payable on common shares | 2,694,500,000 | |||||||
Unrecorded unconditional purchase obligations reinsurance | Lower Limit | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Other reinsurance contracts, minimum commitment | $ 191,100,000 | |||||||
Other Commitments, Term | 1 year | |||||||
Unrecorded unconditional purchase obligations reinsurance | Upper Limit | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Other Commitments, Term | 3 years |
Investments Investment Portfoli
Investments Investment Portfolio by Major Security Type (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-Sale, at Fair Value | ||
Cost | $ 40,807.6 | $ 34,441.9 |
Gross Unrealized Gains | 1,223.9 | 517 |
Gross Unrealized Losses | (17.3) | (57.6) |
Net Holding Period Gains (Losses) | 15.2 | 7.8 |
Fair Value | $ 42,029.4 | $ 34,909.1 |
% of Total Fair Value | 88.40% | 88.90% |
Equity Securities, at Fair Value | ||
Cost | $ 2,546 | $ 2,096.8 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Net Holding Period Gains (Losses) | 2,954.9 | 2,248.4 |
Fair Value | $ 5,500.9 | $ 4,345.2 |
% of Total Fair Value | 11.60% | 11.10% |
Debt and Equity Securities, at Fair Value | ||
Cost | $ 43,353.6 | $ 36,538.7 |
Gross Unrealized Gains | 1,223.9 | 517 |
Gross Unrealized Losses | (17.3) | (57.6) |
Net Holding Period Gains (Losses) | 2,970.1 | 2,256.2 |
Fair value | $ 47,530.3 | $ 39,254.3 |
% of Total Fair Value | 100.00% | 100.00% |
Other Payables to Broker-Dealers and Clearing Organizations | $ 95.5 | $ 11.9 |
Securities held in consolidated non-insurance subsidiary | 6,200 | 3,200 |
Nonredeemable preferred stocks | ||
Equity Securities, at Fair Value | ||
Cost | 1,358.7 | 971.3 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Net Holding Period Gains (Losses) | 89.2 | 67.6 |
Fair Value | $ 1,447.9 | $ 1,038.9 |
% of Total Fair Value | 3.10% | 2.70% |
Common equities | ||
Equity Securities, at Fair Value | ||
Cost | $ 1,187.3 | $ 1,125.5 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Net Holding Period Gains (Losses) | 2,865.7 | 2,180.8 |
Fair Value | $ 4,053 | $ 3,306.3 |
% of Total Fair Value | 8.50% | 8.40% |
Fixed maturities | ||
Debt Securities, Available-for-Sale, at Fair Value | ||
Cost | $ 35,589.1 | $ 32,643.1 |
Gross Unrealized Gains | 1,223.9 | 517 |
Gross Unrealized Losses | (17.3) | (57.6) |
Net Holding Period Gains (Losses) | 15.2 | 7.8 |
Fair Value | $ 36,810.9 | $ 33,110.3 |
% of Total Fair Value | 77.40% | 84.30% |
Fixed maturities | U.S. government obligations | ||
Debt Securities, Available-for-Sale, at Fair Value | ||
Cost | $ 12,437.9 | $ 13,100.7 |
Gross Unrealized Gains | 305.8 | 194.1 |
Gross Unrealized Losses | (3.7) | (43.7) |
Net Holding Period Gains (Losses) | 0 | 0 |
Fair Value | $ 12,740 | $ 13,251.1 |
% of Total Fair Value | 26.80% | 33.70% |
Fixed maturities | State and local government obligations | ||
Debt Securities, Available-for-Sale, at Fair Value | ||
Cost | $ 3,099.4 | $ 1,686 |
Gross Unrealized Gains | 123.1 | 30 |
Gross Unrealized Losses | (0.7) | (2.7) |
Net Holding Period Gains (Losses) | 0 | 0 |
Fair Value | $ 3,221.8 | $ 1,713.3 |
% of Total Fair Value | 6.80% | 4.40% |
Fixed maturities | Corporate debt securities | ||
Debt Securities, Available-for-Sale, at Fair Value | ||
Cost | $ 9,579.7 | $ 6,860.3 |
Gross Unrealized Gains | 601.7 | 206.6 |
Gross Unrealized Losses | (0.1) | (0.5) |
Net Holding Period Gains (Losses) | 3.9 | 1.3 |
Fair Value | $ 10,185.2 | $ 7,067.7 |
% of Total Fair Value | 21.40% | 18.00% |
Fixed maturities | Residential mortgage-backed securities | ||
Debt Securities, Available-for-Sale, at Fair Value | ||
Cost | $ 503.3 | $ 625 |
Gross Unrealized Gains | 7.1 | 4.5 |
Gross Unrealized Losses | (0.9) | (2) |
Net Holding Period Gains (Losses) | 0 | 0 |
Fair Value | $ 509.5 | $ 627.5 |
% of Total Fair Value | 1.10% | 1.60% |
Fixed maturities | Commercial mortgage-backed securities | ||
Debt Securities, Available-for-Sale, at Fair Value | ||
Cost | $ 6,042.6 | $ 5,020.7 |
Gross Unrealized Gains | 142.5 | 61.5 |
Gross Unrealized Losses | (10) | (6) |
Net Holding Period Gains (Losses) | 0 | 0 |
Fair Value | $ 6,175.1 | $ 5,076.2 |
% of Total Fair Value | 13.00% | 12.90% |
Fixed maturities | Other asset-backed securities | ||
Debt Securities, Available-for-Sale, at Fair Value | ||
Cost | $ 3,745 | $ 5,164.7 |
Gross Unrealized Gains | 40.1 | 16.2 |
Gross Unrealized Losses | (0.5) | (1.4) |
Net Holding Period Gains (Losses) | 0 | 0 |
Fair Value | $ 3,784.6 | $ 5,179.5 |
% of Total Fair Value | 7.90% | 13.20% |
Fixed maturities | Redeemable preferred stocks | ||
Debt Securities, Available-for-Sale, at Fair Value | ||
Cost | $ 181.2 | $ 185.7 |
Gross Unrealized Gains | 3.6 | 4.1 |
Gross Unrealized Losses | (1.4) | (1.3) |
Net Holding Period Gains (Losses) | 11.3 | 6.5 |
Fair Value | $ 194.7 | $ 195 |
% of Total Fair Value | 0.40% | 0.50% |
Short-term investments | ||
Debt Securities, Available-for-Sale, at Fair Value | ||
Cost | $ 5,218.5 | $ 1,798.8 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Net Holding Period Gains (Losses) | 0 | 0 |
Fair Value | $ 5,218.5 | $ 1,798.8 |
% of Total Fair Value | 11.00% | 4.60% |
Investments Hybrid Securities (
Investments Hybrid Securities (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Hybrid Securities [Line Items] | ||
Hybrid securities | $ 354.6 | $ 189.4 |
State and local government obligations | ||
Hybrid Securities [Line Items] | ||
Hybrid securities | 0 | 3.5 |
Corporate debt securities | ||
Hybrid Securities [Line Items] | ||
Hybrid securities | 188.4 | 91.2 |
Other asset-backed securities | ||
Hybrid Securities [Line Items] | ||
Hybrid securities | 34.8 | 2.6 |
Redeemable preferred stocks | ||
Hybrid Securities [Line Items] | ||
Hybrid securities | $ 131.4 | $ 92.1 |
Investments Composition of Fixe
Investments Composition of Fixed Maturities by Maturity (Detail) - Fixed maturities $ in Millions | Dec. 31, 2020USD ($) |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | |
Less than one year | $ 5,734.9 |
One to five years | 20,769.2 |
Five to ten years | 8,939.8 |
Ten years or greater | 145.2 |
Cost | 35,589.1 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract] | |
Less than one year | 5,765.4 |
One to five years | 21,377.3 |
Five to ten years | 9,512.2 |
Ten years or greater | 156 |
Debt Securities, Available-for-Sale | $ 36,810.9 |
Investments Gross Unrealized lo
Investments Gross Unrealized losses by Major Security (Detail) $ in Millions | Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Number of Securities | ||
Total | security | 133 | 307 |
Less than 12 Months | security | 64 | 217 |
12 Months or Greater | security | 69 | 90 |
Fair Value | ||
Total | $ 2,981.5 | $ 8,761.3 |
Less than 12 Months | 2,017.1 | 8,038.3 |
12 Month or Greater | 964.4 | 723 |
Gross Unrealized Losses | ||
Total | 17.3 | 57.6 |
Less than 12 Months | 4.9 | 53.8 |
12 Months or Greater | $ 12.4 | $ 3.8 |
U.S. government obligations | ||
Number of Securities | ||
Total | security | 9 | 23 |
Less than 12 Months | security | 9 | 19 |
12 Months or Greater | security | 0 | 4 |
Fair Value | ||
Total | $ 1,511 | $ 5,152.4 |
Less than 12 Months | 1,511 | 5,057.2 |
12 Month or Greater | 0 | 95.2 |
Gross Unrealized Losses | ||
Total | 3.7 | 43.7 |
Less than 12 Months | 3.7 | 43.6 |
12 Months or Greater | $ 0 | $ 0.1 |
State and local government obligations | ||
Number of Securities | ||
Total | security | 30 | 67 |
Less than 12 Months | security | 30 | 52 |
12 Months or Greater | security | 0 | 15 |
Fair Value | ||
Total | $ 208.7 | $ 314.3 |
Less than 12 Months | 208.7 | 287.5 |
12 Month or Greater | 0 | 26.8 |
Gross Unrealized Losses | ||
Total | 0.7 | 2.7 |
Less than 12 Months | 0.7 | 2.6 |
12 Months or Greater | $ 0 | $ 0.1 |
Corporate debt securities | ||
Number of Securities | ||
Total | security | 7 | 16 |
Less than 12 Months | security | 7 | 12 |
12 Months or Greater | security | 0 | 4 |
Fair Value | ||
Total | $ 129.4 | $ 247.6 |
Less than 12 Months | 129.4 | 191.4 |
12 Month or Greater | 0 | 56.2 |
Gross Unrealized Losses | ||
Total | 0.1 | 0.5 |
Less than 12 Months | 0.1 | 0.5 |
12 Months or Greater | $ 0 | $ 0 |
Residential mortgage-backed securities | ||
Number of Securities | ||
Total | security | 21 | 41 |
Less than 12 Months | security | 0 | 12 |
12 Months or Greater | security | 21 | 29 |
Fair Value | ||
Total | $ 44.4 | $ 292.8 |
Less than 12 Months | 0 | 163.7 |
12 Month or Greater | 44.4 | 129.1 |
Gross Unrealized Losses | ||
Total | 0.9 | 2 |
Less than 12 Months | 0 | 0.9 |
12 Months or Greater | $ 0.9 | $ 1.1 |
Commercial mortgage-backed securities | ||
Number of Securities | ||
Total | security | 43 | 98 |
Less than 12 Months | security | 9 | 79 |
12 Months or Greater | security | 34 | 19 |
Fair Value | ||
Total | $ 893.3 | $ 1,742.4 |
Less than 12 Months | 93.6 | 1,400 |
12 Month or Greater | 799.7 | 342.4 |
Gross Unrealized Losses | ||
Total | 10 | 6 |
Less than 12 Months | 0.3 | 5.3 |
12 Months or Greater | $ 9.7 | $ 0.7 |
Other asset-backed securities | ||
Number of Securities | ||
Total | security | 22 | 61 |
Less than 12 Months | security | 9 | 43 |
12 Months or Greater | security | 13 | 18 |
Fair Value | ||
Total | $ 183.7 | $ 1,000.6 |
Less than 12 Months | 74.4 | 938.5 |
12 Month or Greater | 109.3 | 62.1 |
Gross Unrealized Losses | ||
Total | 0.5 | 1.4 |
Less than 12 Months | 0.1 | 0.9 |
12 Months or Greater | $ 0.4 | $ 0.5 |
Redeemable preferred stocks | ||
Number of Securities | ||
Total | security | 1 | 1 |
Less than 12 Months | security | 0 | 0 |
12 Months or Greater | security | 1 | 1 |
Fair Value | ||
Total | $ 11 | $ 11.2 |
Less than 12 Months | 0 | 0 |
12 Month or Greater | 11 | 11.2 |
Gross Unrealized Losses | ||
Total | 1.4 | 1.3 |
Less than 12 Months | 0 | 0 |
12 Months or Greater | $ 1.4 | $ 1.3 |
Investments Components of Net R
Investments Components of Net Realized Gains (Losses) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gain (Loss) on Securities [Line Items] | |||
Total available-for-sale securities | $ 900.7 | $ 281.9 | $ 25.2 |
Total equity securities | 113 | 97.9 | 290.7 |
Subtotal gross realized gains on security sales | 1,013.7 | 379.8 | 315.9 |
Total available-for-sale securities | (29.6) | (34) | (119.6) |
Total equity securities | (69.4) | (11.2) | (25.6) |
Subtotal gross realized losses on security sales | (99) | (45.2) | (145.2) |
Total available-for-sale securities | 871.1 | 247.9 | (94.4) |
Total equity securities | 43.6 | 86.7 | 265.1 |
Net realized gains (losses) on security sales | 914.7 | 334.6 | 170.7 |
Hybrid securities | 7.4 | 18 | (10.4) |
Equity securities | 706.5 | 739.9 | (497.5) |
Derivatives | 1.4 | 0 | 0 |
Net holding period gains (losses) on securities | 715.3 | 757.9 | (507.9) |
Net impairment losses recognized in earnings | 0 | (63.3) | (68.3) |
Total net realized gains (losses) on securities | 1,630 | 1,029.2 | (405.5) |
U.S. government obligations | |||
Gain (Loss) on Securities [Line Items] | |||
Total available-for-sale securities | 612.5 | 164.4 | 6.7 |
Total available-for-sale securities | (9.6) | (20.4) | (98.7) |
Total available-for-sale securities | 602.9 | 144 | (92) |
State and local government obligations | |||
Gain (Loss) on Securities [Line Items] | |||
Total available-for-sale securities | 102.4 | 6.1 | 9.5 |
Total available-for-sale securities | (0.7) | (0.7) | (2.9) |
Total available-for-sale securities | 101.7 | 5.4 | 6.6 |
Corporate debt securities | |||
Gain (Loss) on Securities [Line Items] | |||
Total available-for-sale securities | 161.9 | 100.1 | 2.4 |
Total available-for-sale securities | (6.5) | (7.9) | (10.4) |
Total available-for-sale securities | 155.4 | 92.2 | (8) |
Residential mortgage-backed securities | |||
Gain (Loss) on Securities [Line Items] | |||
Total available-for-sale securities | 0 | 0.2 | 0 |
Total available-for-sale securities | 0 | (2.3) | (0.1) |
Total available-for-sale securities | 0 | (2.1) | (0.1) |
Commercial mortgage-backed securities | |||
Gain (Loss) on Securities [Line Items] | |||
Total available-for-sale securities | 23.7 | 8.1 | 2 |
Total available-for-sale securities | (12.8) | (2.2) | (6.3) |
Total available-for-sale securities | 10.9 | 5.9 | (4.3) |
Other asset-backed securities | |||
Gain (Loss) on Securities [Line Items] | |||
Total available-for-sale securities | 0.2 | 0.8 | 0.1 |
Total available-for-sale securities | 0 | (0.1) | (1.1) |
Total available-for-sale securities | 0.2 | 0.7 | (1) |
Redeemable preferred stocks | |||
Gain (Loss) on Securities [Line Items] | |||
Total available-for-sale securities | 0 | 2.2 | 4.5 |
Total available-for-sale securities | 0 | (0.4) | (0.1) |
Total available-for-sale securities | 0 | 1.8 | 4.4 |
Nonredeemable preferred stocks | |||
Gain (Loss) on Securities [Line Items] | |||
Total equity securities | 24.4 | 36.2 | 4.1 |
Total equity securities | (8.7) | (3.2) | (3.9) |
Total equity securities | 15.7 | 33 | 0.2 |
Common equities | |||
Gain (Loss) on Securities [Line Items] | |||
Total equity securities | 88.6 | 61.7 | 286.6 |
Total equity securities | (60.7) | (8) | (21.7) |
Total equity securities | 27.9 | 53.7 | 264.9 |
Other Assets | |||
Gain (Loss) on Securities [Line Items] | |||
Net impairment losses recognized in earnings | $ 0 | $ (63.3) | $ (68.3) |
Investments Components of Equit
Investments Components of Equity Realized Gains (Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Total net gains (losses) recognized during the period on equity securities | $ 750.1 | $ 826.6 | $ (232.4) |
Less: Net gains (losses) recognized on equity securities sold during the period | 706.5 | 739.9 | (497.5) |
Net holding period gains (losses) recognized during the period on equity securities held at period end | $ 43.6 | $ 86.7 | $ 265.1 |
Investments Components of Net I
Investments Components of Net Investment Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | $ 936.6 | $ 1,042 | $ 820.5 |
Investment expenses | (20) | (24.6) | (24.3) |
Net investment income | 916.6 | 1,017.4 | 796.2 |
Available-for-sale Securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 818.3 | 923.7 | 714.8 |
Fixed maturities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 789.3 | 882 | 661.9 |
Fixed maturities | U.S. government obligations | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 166.3 | 268.6 | 196.8 |
Fixed maturities | State and local government obligations | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 62.7 | 36.5 | 37.7 |
Fixed maturities | Corporate debt securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 284 | 268.9 | 217.9 |
Fixed maturities | Residential mortgage-backed securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 11.8 | 21.6 | 27.6 |
Fixed maturities | Commercial mortgage-backed securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 152.9 | 150.1 | 93.9 |
Fixed maturities | Other asset-backed securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 96.7 | 117.3 | 75.7 |
Fixed maturities | Redeemable preferred stocks | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 14.9 | 19 | 12.3 |
Short-term investments | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 29 | 41.7 | 52.9 |
Equity securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 118.3 | 118.3 | 105.7 |
Equity securities | Nonredeemable preferred stocks | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 60.6 | 61.8 | 45.9 |
Equity securities | Common equities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | $ 57.7 | $ 56.5 | $ 59.8 |
Investments - Additional Inform
Investments - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Investments, Debt and Equity Securities [Abstract] | ||||
Principal amount of bonds and certificates of deposit on deposit to meet state insurance regulatory and/or rating agency requirements | $ 298,200,000 | |||
Securities exceeding 10% of Shareholders' Equity | 0 | $ 0 | ||
Fair value of fixed-maturity securities that were non-income producing during the preceding 12 months | 0 | |||
Securities sold under agreements to repurchase | 0 | 0 | ||
Open reverse repurchase commitments | $ 0 | 0 | ||
Securities with credit ratings downgraded | security | 7 | |||
Value of securities with credit rating downgraded | $ 65,000,000 | |||
Unrealized loss on securities with credit downgraded | 1,600,000 | |||
Allowance for credit losses, securities | 0 | |||
Credit loss allowance balance, available-for-sale securities | 0 | |||
Write off of accrued income | $ 0 | |||
Percent change in investment income | 10.00% | |||
Percent change in book yield | 23.00% | |||
Proceeds from debt invested | $ 986,300,000 | |||
Derivatives | $ 1,400,000 | 0 | $ 0 | |
Maximum notional value | 114,600,000 | |||
Open derivative positions | $ 0 | $ 0 | $ 0 |
Fair Value Composition of Inves
Fair Value Composition of Investment Portfolio by Major Security Type (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | $ 47,530.3 | $ 39,254.3 |
Debt, fair value | 6,793.5 | 5,119.6 |
Available-for-sale Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 42,029.4 | 34,909.1 |
Available-for-sale Securities | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 36,810.9 | 33,110.3 |
Available-for-sale Securities | Fixed maturities | Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 26,147 | 22,032.1 |
Available-for-sale Securities | Fixed maturities | Debt Securities [Member] | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 12,740 | 13,251.1 |
Available-for-sale Securities | Fixed maturities | Debt Securities [Member] | State and local government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 3,221.8 | 1,713.3 |
Available-for-sale Securities | Fixed maturities | Debt Securities [Member] | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 10,185.2 | 7,067.7 |
Available-for-sale Securities | Fixed maturities | Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 10,469.2 | 10,883.2 |
Available-for-sale Securities | Fixed maturities | Asset-backed Securities | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 509.5 | 627.5 |
Available-for-sale Securities | Fixed maturities | Asset-backed Securities | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 6,175.1 | 5,076.2 |
Available-for-sale Securities | Fixed maturities | Asset-backed Securities | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 3,784.6 | 5,179.5 |
Available-for-sale Securities | Fixed maturities | Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 194.7 | 195 |
Available-for-sale Securities | Fixed maturities | Redeemable preferred stocks | Financials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 51.6 | 51.7 |
Available-for-sale Securities | Fixed maturities | Redeemable preferred stocks | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 11.7 | 11.1 |
Available-for-sale Securities | Fixed maturities | Redeemable preferred stocks | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 131.4 | 132.2 |
Available-for-sale Securities | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 5,218.5 | 1,798.8 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 5,500.9 | 4,345.2 |
Equity securities | Nonredeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 1,447.9 | 1,038.9 |
Equity securities | Nonredeemable preferred stocks | Financials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 1,365 | 955.2 |
Equity securities | Nonredeemable preferred stocks | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 41.9 | 42.3 |
Equity securities | Nonredeemable preferred stocks | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 41 | 41.4 |
Equity securities | Common equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 4,053 | 3,306.3 |
Equity securities | Common equities | Common Stocks, by Industry | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 4,049.9 | 3,306 |
Equity securities | Common equities | Other risk investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 3.1 | 0.3 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 21,623.3 | 18,443 |
Debt, fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 17,455.7 | 15,059.6 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 12,750.8 | 13,262.2 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | Fixed maturities | Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 12,740 | 13,251.1 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | Fixed maturities | Debt Securities [Member] | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 12,740 | 13,251.1 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | Fixed maturities | Debt Securities [Member] | State and local government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | Fixed maturities | Debt Securities [Member] | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | Fixed maturities | Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | Fixed maturities | Asset-backed Securities | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | Fixed maturities | Asset-backed Securities | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | Fixed maturities | Asset-backed Securities | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | Fixed maturities | Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 10.8 | 11.1 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | Fixed maturities | Redeemable preferred stocks | Financials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | Fixed maturities | Redeemable preferred stocks | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | Fixed maturities | Redeemable preferred stocks | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 10.8 | 11.1 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 4,704.9 | 1,797.4 |
Fair Value, Inputs, Level 1 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 4,167.6 | 3,383.4 |
Fair Value, Inputs, Level 1 | Equity securities | Nonredeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 117.7 | 77.4 |
Fair Value, Inputs, Level 1 | Equity securities | Nonredeemable preferred stocks | Financials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 117.7 | 77.4 |
Fair Value, Inputs, Level 1 | Equity securities | Nonredeemable preferred stocks | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Equity securities | Nonredeemable preferred stocks | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 1 | Equity securities | Common equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 4,049.9 | 3,306 |
Fair Value, Inputs, Level 1 | Equity securities | Common equities | Common Stocks, by Industry | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 4,049.9 | 3,306 |
Fair Value, Inputs, Level 1 | Equity securities | Common equities | Other risk investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 25,852.2 | 20,767.9 |
Debt, fair value | 6,793.5 | 5,119.6 |
Fair Value, Inputs, Level 2 | Available-for-sale Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 24,573.7 | 19,849.5 |
Fair Value, Inputs, Level 2 | Available-for-sale Securities | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 24,060.1 | 19,848.1 |
Fair Value, Inputs, Level 2 | Available-for-sale Securities | Fixed maturities | Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 13,407 | 8,781 |
Fair Value, Inputs, Level 2 | Available-for-sale Securities | Fixed maturities | Debt Securities [Member] | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 2 | Available-for-sale Securities | Fixed maturities | Debt Securities [Member] | State and local government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 3,221.8 | 1,713.3 |
Fair Value, Inputs, Level 2 | Available-for-sale Securities | Fixed maturities | Debt Securities [Member] | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 10,185.2 | 7,067.7 |
Fair Value, Inputs, Level 2 | Available-for-sale Securities | Fixed maturities | Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 10,469.2 | 10,883.2 |
Fair Value, Inputs, Level 2 | Available-for-sale Securities | Fixed maturities | Asset-backed Securities | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 509.5 | 627.5 |
Fair Value, Inputs, Level 2 | Available-for-sale Securities | Fixed maturities | Asset-backed Securities | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 6,175.1 | 5,076.2 |
Fair Value, Inputs, Level 2 | Available-for-sale Securities | Fixed maturities | Asset-backed Securities | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 3,784.6 | 5,179.5 |
Fair Value, Inputs, Level 2 | Available-for-sale Securities | Fixed maturities | Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 183.9 | 183.9 |
Fair Value, Inputs, Level 2 | Available-for-sale Securities | Fixed maturities | Redeemable preferred stocks | Financials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 51.6 | 51.7 |
Fair Value, Inputs, Level 2 | Available-for-sale Securities | Fixed maturities | Redeemable preferred stocks | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 11.7 | 11.1 |
Fair Value, Inputs, Level 2 | Available-for-sale Securities | Fixed maturities | Redeemable preferred stocks | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 120.6 | 121.1 |
Fair Value, Inputs, Level 2 | Available-for-sale Securities | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 513.6 | 1.4 |
Fair Value, Inputs, Level 2 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 1,278.5 | 918.4 |
Fair Value, Inputs, Level 2 | Equity securities | Nonredeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 1,278.5 | 918.4 |
Fair Value, Inputs, Level 2 | Equity securities | Nonredeemable preferred stocks | Financials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 1,212.3 | 850.7 |
Fair Value, Inputs, Level 2 | Equity securities | Nonredeemable preferred stocks | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 41.9 | 42.3 |
Fair Value, Inputs, Level 2 | Equity securities | Nonredeemable preferred stocks | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 24.3 | 25.4 |
Fair Value, Inputs, Level 2 | Equity securities | Common equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 2 | Equity securities | Common equities | Common Stocks, by Industry | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 2 | Equity securities | Common equities | Other risk investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 54.8 | 43.4 |
Debt, fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Available-for-sale Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Available-for-sale Securities | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Available-for-sale Securities | Fixed maturities | Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Available-for-sale Securities | Fixed maturities | Debt Securities [Member] | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Available-for-sale Securities | Fixed maturities | Debt Securities [Member] | State and local government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Available-for-sale Securities | Fixed maturities | Debt Securities [Member] | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Available-for-sale Securities | Fixed maturities | Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Available-for-sale Securities | Fixed maturities | Asset-backed Securities | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Available-for-sale Securities | Fixed maturities | Asset-backed Securities | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Available-for-sale Securities | Fixed maturities | Asset-backed Securities | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Available-for-sale Securities | Fixed maturities | Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Available-for-sale Securities | Fixed maturities | Redeemable preferred stocks | Financials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Available-for-sale Securities | Fixed maturities | Redeemable preferred stocks | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Available-for-sale Securities | Fixed maturities | Redeemable preferred stocks | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Available-for-sale Securities | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 54.8 | 43.4 |
Fair Value, Inputs, Level 3 | Equity securities | Nonredeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 51.7 | 43.1 |
Fair Value, Inputs, Level 3 | Equity securities | Nonredeemable preferred stocks | Financials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 35 | 27.1 |
Fair Value, Inputs, Level 3 | Equity securities | Nonredeemable preferred stocks | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Equity securities | Nonredeemable preferred stocks | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 16.7 | 16 |
Fair Value, Inputs, Level 3 | Equity securities | Common equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 3.1 | 0.3 |
Fair Value, Inputs, Level 3 | Equity securities | Common equities | Common Stocks, by Industry | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Equity securities | Common equities | Other risk investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 3.1 | 0.3 |
Carrying (Reported) Amount, Fair Value Disclosure | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 43,353.6 | 36,538.7 |
Carrying value | 5,396.1 | 4,407.1 |
Carrying (Reported) Amount, Fair Value Disclosure | Available-for-sale Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 40,807.6 | 34,441.9 |
Carrying (Reported) Amount, Fair Value Disclosure | Available-for-sale Securities | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 35,589.1 | 32,643.1 |
Carrying (Reported) Amount, Fair Value Disclosure | Available-for-sale Securities | Fixed maturities | Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 25,117 | 21,647 |
Carrying (Reported) Amount, Fair Value Disclosure | Available-for-sale Securities | Fixed maturities | Debt Securities [Member] | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 12,437.9 | 13,100.7 |
Carrying (Reported) Amount, Fair Value Disclosure | Available-for-sale Securities | Fixed maturities | Debt Securities [Member] | State and local government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 3,099.4 | 1,686 |
Carrying (Reported) Amount, Fair Value Disclosure | Available-for-sale Securities | Fixed maturities | Debt Securities [Member] | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 9,579.7 | 6,860.3 |
Carrying (Reported) Amount, Fair Value Disclosure | Available-for-sale Securities | Fixed maturities | Asset-backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 10,290.9 | 10,810.4 |
Carrying (Reported) Amount, Fair Value Disclosure | Available-for-sale Securities | Fixed maturities | Asset-backed Securities | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 503.3 | 625 |
Carrying (Reported) Amount, Fair Value Disclosure | Available-for-sale Securities | Fixed maturities | Asset-backed Securities | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 6,042.6 | 5,020.7 |
Carrying (Reported) Amount, Fair Value Disclosure | Available-for-sale Securities | Fixed maturities | Asset-backed Securities | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 3,745 | 5,164.7 |
Carrying (Reported) Amount, Fair Value Disclosure | Available-for-sale Securities | Fixed maturities | Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 181.2 | 185.7 |
Carrying (Reported) Amount, Fair Value Disclosure | Available-for-sale Securities | Fixed maturities | Redeemable preferred stocks | Financials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 51.1 | 51.5 |
Carrying (Reported) Amount, Fair Value Disclosure | Available-for-sale Securities | Fixed maturities | Redeemable preferred stocks | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 10 | 10 |
Carrying (Reported) Amount, Fair Value Disclosure | Available-for-sale Securities | Fixed maturities | Redeemable preferred stocks | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 120.1 | 124.2 |
Carrying (Reported) Amount, Fair Value Disclosure | Available-for-sale Securities | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 5,218.5 | 1,798.8 |
Carrying (Reported) Amount, Fair Value Disclosure | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 2,546 | 2,096.8 |
Carrying (Reported) Amount, Fair Value Disclosure | Equity securities | Nonredeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 1,358.7 | 971.3 |
Carrying (Reported) Amount, Fair Value Disclosure | Equity securities | Nonredeemable preferred stocks | Financials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 1,278.6 | 891.3 |
Carrying (Reported) Amount, Fair Value Disclosure | Equity securities | Nonredeemable preferred stocks | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 40 | 39.9 |
Carrying (Reported) Amount, Fair Value Disclosure | Equity securities | Nonredeemable preferred stocks | Industrials | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 40.1 | 40.1 |
Carrying (Reported) Amount, Fair Value Disclosure | Equity securities | Common equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 1,187.3 | 1,125.5 |
Carrying (Reported) Amount, Fair Value Disclosure | Equity securities | Common equities | Common Stocks, by Industry | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 1,184.2 | 1,125.2 |
Carrying (Reported) Amount, Fair Value Disclosure | Equity securities | Common equities | Other risk investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | $ 3.1 | $ 0.3 |
Fair Value Summary of Changes i
Fair Value Summary of Changes in Fair Value Associated With Level 3 Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Fair Value | $ 43.4 | $ 30.4 |
Calls/ Maturities/ Paydowns | (27.1) | 0 |
Purchases | 37.8 | 12 |
Sales | 0 | 0 |
Net Realized (Gain)/Loss on Sales | 0 | 0 |
Change in Valuation | 0.7 | 1 |
Net Transfers In (Out) | 0 | 0 |
Ending Fair value | 54.8 | 43.4 |
Equity securities | Nonredeemable preferred stocks | Financials | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Fair Value | 27.1 | 25.1 |
Calls/ Maturities/ Paydowns | (27.1) | 0 |
Purchases | 35 | 2 |
Sales | 0 | 0 |
Net Realized (Gain)/Loss on Sales | 0 | 0 |
Change in Valuation | 0 | 0 |
Net Transfers In (Out) | 0 | 0 |
Ending Fair value | 35 | 27.1 |
Equity securities | Nonredeemable preferred stocks | Industrials | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Fair Value | 16 | 5 |
Calls/ Maturities/ Paydowns | 0 | 0 |
Purchases | 0 | 10 |
Sales | 0 | 0 |
Net Realized (Gain)/Loss on Sales | 0 | 0 |
Change in Valuation | 0.7 | 1 |
Net Transfers In (Out) | 0 | 0 |
Ending Fair value | 16.7 | 16 |
Equity securities | Common equities | Other risk investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Fair Value | 0.3 | 0.3 |
Calls/ Maturities/ Paydowns | 0 | 0 |
Purchases | 2.8 | 0 |
Sales | 0 | 0 |
Net Realized (Gain)/Loss on Sales | 0 | 0 |
Change in Valuation | 0 | 0 |
Net Transfers In (Out) | 0 | 0 |
Ending Fair value | $ 3.1 | $ 0.3 |
Fair Value Summary of Quantitat
Fair Value Summary of Quantitative Information about Level 3 Fair Value Measurements (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | $ 47,530.3 | $ 39,254.3 |
Fair Value, Inputs, Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | 54.8 | 43.4 |
Fair Value, Inputs, Level 3 | Third Party Pricing Exemption Securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | 3.1 | 0.3 |
Fair Value, Inputs, Level 3 | Total Quantitative Level Three Securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | 51.7 | 43.1 |
Financials | Fair Value, Inputs, Level 3 | Nonredeemable preferred stocks | Internal Pricing | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | $ 25 | |
Fair value inputs, original issue price | $ 3.7 | |
Financials | Fair Value, Inputs, Level 3 | Nonredeemable preferred stocks | Unadjusted Purchase Price | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | $ 10 | |
Fair value inputs, original issue price | $ 16.9 | |
Financials | Fair Value, Inputs, Level 3 | Nonredeemable preferred stocks | Third Party Pricing Firm | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | $ 27.1 | |
Fair value inputs, recent transaction price | $ 9 | |
Industrials | Fair Value, Inputs, Level 3 | Nonredeemable preferred stocks | Internal Pricing | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | $ 10 | |
Fair value inputs, original issue price | $ 4.9 | |
Industrials | Fair Value, Inputs, Level 3 | Nonredeemable preferred stocks | Third Party Pricing Firm | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | $ 6.9 | $ 6 |
Fair value inputs, guideline public company method | $ 5.4 | |
Fair value inputs, performance based price adjustment | $ 4.8 | |
Industrials | Fair Value, Inputs, Level 3 | Nonredeemable preferred stocks | Guideline Public Company Method | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | $ 9.8 | |
Fair value inputs, guideline public company method | $ 4.8 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - security | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Vendor quoted prices, percent of FV hierarchy level | 76.00% | 80.00% |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Vendor quoted prices, percent of FV hierarchy level | 99.00% | 99.00% |
Dealer quoted prices, percent of FV hierarchy level | 1.00% | 1.00% |
Fixed maturities | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of securities | 0 | 0 |
Nonredeemable preferred stocks | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of securities | 4 | 3 |
Common equities | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of securities | 2 | 1 |
Debt (Detail)
Debt (Detail) - USD ($) | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Fair Value | $ 6,793,500,000 | $ 5,119,600,000 | ||
Debt, Long-term and Short-term, Combined Amount | [1] | 5,396,100,000 | 4,407,100,000 | |
3.75% Senior Notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Carrying value | 499,800,000 | 499,400,000 | ||
Fair Value | 510,900,000 | 515,600,000 | ||
Debt Instrument, Face Amount | $ 500,000,000 | 500,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | |||
2.45% Senior Notes Due 2027 | ||||
Debt Instrument [Line Items] | ||||
Carrying value | $ 497,300,000 | 496,900,000 | ||
Fair Value | 541,100,000 | 501,500,000 | ||
Debt Instrument, Face Amount | $ 500,000,000 | 500,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.45% | |||
6 5/8% Senior Notes due 2029 | ||||
Debt Instrument [Line Items] | ||||
Carrying value | $ 296,900,000 | 296,600,000 | ||
Fair Value | 409,400,000 | 392,500,000 | ||
Debt Instrument, Face Amount | $ 300,000,000 | 300,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | |||
4.00% Senior Notes due 2029 | ||||
Debt Instrument [Line Items] | ||||
Carrying value | $ 545,500,000 | 545,000,000 | ||
Fair Value | 660,400,000 | 614,300,000 | ||
Debt Instrument, Face Amount | $ 550,000,000 | 550,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | |||
3.20% Senior Notes due 2030 | ||||
Debt Instrument [Line Items] | ||||
Carrying value | $ 496,100,000 | 0 | ||
Fair Value | 575,500,000 | 0 | ||
Debt Instrument, Face Amount | $ 500,000,000 | $ 500,000,000 | 500,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.20% | 3.20% | ||
6.25% Senior Notes due 2032 | ||||
Debt Instrument [Line Items] | ||||
Carrying value | $ 396,000,000 | 395,700,000 | ||
Fair Value | 582,000,000 | 552,600,000 | ||
Debt Instrument, Face Amount | $ 400,000,000 | 400,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.25% | |||
4.35% Senior Notes due 2044 | ||||
Debt Instrument [Line Items] | ||||
Carrying value | $ 346,700,000 | 346,700,000 | ||
Fair Value | 459,700,000 | 417,000,000 | ||
Debt Instrument, Face Amount | $ 350,000,000 | 350,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.35% | |||
3.70% Senior Notes due 2045 | ||||
Debt Instrument [Line Items] | ||||
Carrying value | $ 395,500,000 | 395,400,000 | ||
Fair Value | 481,000,000 | 434,200,000 | ||
Debt Instrument, Face Amount | $ 400,000,000 | 400,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.70% | |||
4.125% Senior Notes due 2047 | ||||
Debt Instrument [Line Items] | ||||
Carrying value | $ 841,700,000 | 841,600,000 | ||
Fair Value | 1,113,100,000 | 986,100,000 | ||
Debt Instrument, Face Amount | $ 850,000,000 | 850,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.125% | |||
4.20% Senior Notes due 2048 | ||||
Debt Instrument [Line Items] | ||||
Carrying value | $ 590,000,000 | 589,800,000 | ||
Fair Value | 806,700,000 | 705,800,000 | ||
Debt Instrument, Face Amount | $ 600,000,000 | 600,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.20% | |||
3.95% Senior Notes due 2050 | ||||
Debt Instrument [Line Items] | ||||
Carrying value | $ 490,600,000 | 0 | ||
Fair Value | 653,700,000 | 0 | ||
Debt Instrument, Face Amount | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | 3.95% | ||
[1] | Consists of both short-term and long-term debt. See Note 4 – Debt for further discussion . |
Debt Aggregate Principal Paymen
Debt Aggregate Principal Payments On Debt Outstanding (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
Debt Instrument, Periodic Payment, Principal in Next Twelve Months | $ 500 |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 |
Long-Term Debt, Maturities, Repayments of Principal in Year Three | 0 |
Long-Term Debt, Maturities, Repayments of Principal in Year Four | 0 |
Long-Term Debt, Maturities, Repayments of Principal in Year Five | 0 |
Long-Term Debt, Maturities, Repayments of Principal after Year Five | 4,950 |
Total | $ 5,450 |
Debt Unrealized Gains (Losses)
Debt Unrealized Gains (Losses) From Debt Hedges Included In Accumulated Other (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2017 | Jan. 31, 2015 | Apr. 30, 2014 | Aug. 31, 2011 | Nov. 30, 2002 | Mar. 31, 1999 |
Debt Instrument [Line Items] | ||||||||
Unrealized Gain (Loss) | $ (15.6) | $ (16.4) | ||||||
3.75% Senior Notes due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Unrealized Gain (Loss) | (0.4) | $ (5.1) | ||||||
6 5/8% Senior Notes due 2029 | ||||||||
Debt Instrument [Line Items] | ||||||||
Unrealized Gain (Loss) | (2.2) | $ (4.2) | ||||||
6.25% Senior Notes due 2032 | ||||||||
Debt Instrument [Line Items] | ||||||||
Unrealized Gain (Loss) | 3.2 | $ 5.1 | ||||||
4.35% Senior Notes due 2044 | ||||||||
Debt Instrument [Line Items] | ||||||||
Unrealized Gain (Loss) | (1.4) | $ (1.6) | ||||||
3.70% Senior Notes due 2045 | ||||||||
Debt Instrument [Line Items] | ||||||||
Unrealized Gain (Loss) | (11.4) | $ (12.9) | ||||||
4.125% Senior Notes due 2047 | ||||||||
Debt Instrument [Line Items] | ||||||||
Unrealized Gain (Loss) | $ (7.5) | $ (8) |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||||
Proceeds from debt invested | $ 986,300,000 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | $ 1,100,000 | $ 1,000,000 | $ 1,000,000 | |
Discretionary Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000,000 | |||
Debt Instrument, Term | 30 days | |||
Proceeds from Lines of Credit | $ 0 | 0 | ||
3.20% Senior Notes due 2030 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 500,000,000 | $ 500,000,000 | 500,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.20% | 3.20% | ||
3.95% Senior Notes due 2050 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | 3.95% | ||
Federal Funds Rate | Discretionary Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% |
Income Taxes Components of Inco
Income Taxes Components of Income Tax Provision (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Current Federal Tax Expense (Benefit) | $ 1,395.7 | $ 1,133.2 | $ 673.1 |
Current State and Local Tax Expense (Benefit) | 35.6 | 27.3 | 21.5 |
Deferred Federal Income Tax Expense (Benefit) | 35.8 | 16.8 | (145.9) |
Deferred State and Local Income Tax Expense (Benefit) | 1.5 | 3 | (6.1) |
Provision for income taxes | $ 1,468.6 | $ 1,180.3 | $ 542.6 |
Income Taxes Reconciliation of
Income Taxes Reconciliation of Provision (Benefit) for income Taxes Reported in Consolidated Statements Of Income with Tax at Statutory Rate (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income before income taxes | $ 7,173.2 | $ 5,160.3 | $ 3,163.6 |
Tax at statutory federal rate | 1,506.4 | 1,083.7 | 664.4 |
Tax Adjustments, Settlements, and Unusual Provisions | 0 | 163.2 | 0 |
Effective Income Tax Rate Reconciliation, Tax Credit, Investment, Amount | (5.4) | (43.9) | (76.3) |
Stock-based compensation | (22.7) | (25.9) | (25.1) |
Tax-deductible dividends | (25.1) | (14.6) | (14.6) |
Tax-preferenced investment income | (15.2) | (14) | (15.6) |
Nondeductible compensation expense | 6.4 | 8.1 | (0.2) |
State income taxes, net of federal taxes | 29.3 | 24 | 12.2 |
Other items, net | (5.1) | (0.3) | (2.2) |
Provision for income taxes | $ 1,468.6 | $ 1,180.3 | $ 542.6 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Tax at statutory federal rate | 21.00% | 21.00% | 21.00% |
Tax adjustments, settlements, and unusual provisions, percentage | 0.00% | 3.00% | 0.00% |
Tax credits | 0.00% | (1.00%) | (2.00%) |
Stock-based compensation | (1.00%) | (1.00%) | (1.00%) |
Tax-deductible dividends | (1.00%) | 0.00% | 0.00% |
Tax-preferenced investment income | 0.00% | 0.00% | (1.00%) |
Nondeductible compensation expense | 0.00% | 0.00% | 0.00% |
State income taxes, net of federal taxes | 1.00% | 1.00% | 0.00% |
Other items, net | 0.00% | 0.00% | 0.00% |
Total income tax provision | 20.00% | 23.00% | 17.00% |
Income Taxes Components of Net
Income Taxes Components of Net Deferred Tax Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Federal deferred income tax assets: | ||
Unearned premiums reserve | $ 552.5 | $ 498.2 |
Non-deductible accruals | 238.2 | 181.8 |
Loss and loss adjustment expense reserves | 170 | 153.3 |
Operating lease liabilities | 37.4 | 42.3 |
Investment basis difference | 18.6 | 27.4 |
Hedges on forecasted transactions | 4.1 | 4.4 |
Other | 25.8 | 15.3 |
Federal deferred income tax liabilities: | ||
Net holding period gains on equity securities | (620.5) | (472.2) |
Deferred acquisition costs | (259.8) | (221.9) |
Net unrealized gains on fixed-maturity securities | (253.4) | (96.5) |
Property and equipment | (105.6) | (108.6) |
Loss and loss adjustment expense reserve transition adjustment | (39.3) | (47.2) |
Operating lease assets | (37.4) | (42.3) |
Intangible assets | (27.6) | (38.9) |
Prepaid expenses | (5.5) | (4.8) |
Other | (7.5) | (8.3) |
Deferred Tax Liability, Federal Tax | (310) | (118) |
Deferred Tax Assets, State Taxes | 11.9 | 15.2 |
Deferred Tax Liabilities, State Taxes | (4) | (1.2) |
Deferred Tax Liabilities, Net | $ (302.1) | $ (104) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2019Investment | Apr. 01, 2018 | |
Income Taxes [Line Items] | |||||
Effective Income Tax Rate Reconciliation, Tax Credit, Investment, Amount | $ 5,400,000 | $ 43,900,000 | $ 76,300,000 | ||
Tax Adjustments, Settlements, and Unusual Provisions | 0 | 163,200,000 | 0 | ||
Net taxes payable | 163,500,000 | 224,000,000 | |||
Provision for income taxes | 1,468,600,000 | 1,180,300,000 | 542,600,000 | ||
Deferred tax assets valuation allowance | 0 | 0 | |||
Interest and Penalties | |||||
Income Taxes [Line Items] | |||||
Provision for income taxes | 0 | 9,900,000 | 0 | ||
ARX Holding Corp. | Lower Limit | |||||
Income Taxes [Line Items] | |||||
Equity interest percentage | 80.00% | ||||
Alternative Energy | |||||
Income Taxes [Line Items] | |||||
Effective Income Tax Rate Reconciliation, Tax Credit, Investment, Amount | 0 | 38,100,000 | $ 71,000,000 | ||
Number of Investments | Investment | 3 | ||||
Tax Adjustments, Settlements, and Unusual Provisions | 163,200,000 | ||||
Net taxes payable | 252,000,000 | ||||
Net deferred income taxes | 88,800,000 | ||||
Provision for income taxes | 100,000,000 | ||||
Protective Deposits | $ 152,100,000 | ||||
Alternative Energy | Tax Year 2016 | |||||
Income Taxes [Line Items] | |||||
Protective Deposits | 48,800,000 | ||||
Alternative Energy | Other Assets | |||||
Income Taxes [Line Items] | |||||
Protective Deposits | $ 103,300,000 |
Loss And Loss Adjustment Expe_3
Loss And Loss Adjustment Expense Reserves Activity in Loss and loss Adjustment Expense Reserves (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Balance at beginning of period | $ 18,105.4 | $ 15,400.8 | $ 13,086.9 |
Less reinsurance recoverables on unpaid losses | 3,212.2 | 2,572.7 | 2,170.1 |
Net balance at beginning of period | 14,893.2 | 12,828.1 | 10,916.8 |
Incurred related to: | |||
Current year | 24,926.5 | 25,238.2 | 21,632.5 |
Prior years | 195.3 | 232.3 | 88.5 |
Total incurred | 25,121.8 | 25,470.5 | 21,721 |
Paid related to: | |||
Current year | 15,584.4 | 16,105 | 13,792.1 |
Prior years | 7,963 | 7,300.4 | 6,017.6 |
Total paid | 23,547.4 | 23,405.4 | 19,809.7 |
Net balance at ending of period | 16,467.6 | 14,893.2 | 12,828.1 |
Plus reinsurance recoverables on unpaid losses | 3,798.2 | 3,212.2 | 2,572.7 |
Balance at ending of period | $ 20,265.8 | $ 18,105.4 | $ 15,400.8 |
Loss And Loss Adjustment Expe_4
Loss And Loss Adjustment Expense Reserves Loss And Loss Adjustment Expense Reserves - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)data_subset | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Number of subsets of business data reviewed (over) | data_subset | 400 | ||
Reserve development, prior years | $ 195.3 | $ 232.3 | $ 88.5 |
2018 | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Reserve development, prior years | 107 | 131 | |
2017 | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Reserve development, prior years | 73 | ||
Short-duration Insurance Contracts, Accident Years 2017 and 2016 | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Reserve development, prior years | 99 | ||
2019 | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Reserve development, prior years | 59 | ||
Short-duration Insurance Contracts, Accident Years 2015 and Prior | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Reserve development, prior years | (10) | ||
Commercial Lines Segment | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Reserve development, prior years | 98 | 83 | (4) |
Property Segment | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Reserve development, prior years | $ (14) | 12 | 3 |
Environmental, asbestos, and general liability | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Percentage of reserves | 0.10% | ||
Auto | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Percentage of reserves | 94.00% | ||
Personal Auto | Personal Lines Segment | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Reserve development, prior years | $ 136 | 121 | 85 |
Special Lines | Personal Lines Segment | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Reserve development, prior years | $ (25) | $ 14 | $ 5 |
Agency Channel | Personal Auto | Personal Lines Segment | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Percent of personal auto Prior Year Claims and Claims Adjustment Expense | 70.00% | ||
Direct Channel | Personal Auto | Personal Lines Segment | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Percent of personal auto Prior Year Claims and Claims Adjustment Expense | 30.00% |
Loss And Loss Adjustment Expe_5
Loss And Loss Adjustment Expense Reserves Incurred and Paid Claims Development with IBNR and Claim Counts (Details) $ in Millions | Dec. 31, 2020USD ($)claim | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Claims Development [Line Items] | |||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 14,989.4 | $ 13,614.3 | |||
Commercial Lines - Physical Damage | Commercial Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,414 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,331.7 | ||||
All outstanding liabilities before 2016, net of reinsurance1 | 0.4 | ||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 82.7 | 66.6 | |||
Commercial Lines - Liability | Commercial Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 8,726.6 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,175.2 | ||||
All outstanding liabilities before 2016, net of reinsurance1 | 34.9 | ||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 3,586.3 | 3,080.8 | |||
Property | Property Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 4,250.9 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,781.3 | ||||
All outstanding liabilities before 2016, net of reinsurance1 | 5.1 | ||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 474.7 | 357.2 | |||
2016 | Commercial Lines - Physical Damage | Commercial Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 378.1 | 377.8 | $ 378.2 | $ 379.8 | $ 379.6 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0 | ||||
Cumulative Number of Incurred Claim Counts | claim | 74,199 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 377.6 | 377.5 | 376.8 | 376.9 | 336.7 |
2016 | Commercial Lines - Liability | Commercial Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,224.9 | 1,238.9 | 1,231.1 | 1,204.8 | 1,185.8 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0 | ||||
Cumulative Number of Incurred Claim Counts | claim | 92,688 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,153.4 | 1,073.3 | 886 | 639.9 | 298.6 |
2016 | Property | Property Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 535.5 | 536.5 | 537.1 | 541.2 | 568.6 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 2.4 | ||||
Cumulative Number of Incurred Claim Counts | claim | 53,693 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 530.8 | 526.4 | 516.9 | 498.2 | 415.2 |
2017 | Commercial Lines - Physical Damage | Commercial Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 409.9 | 411 | 412.1 | 415.4 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (0.9) | ||||
Cumulative Number of Incurred Claim Counts | claim | 77,170 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 409.4 | 409.2 | 409.4 | 369 | |
2017 | Commercial Lines - Liability | Commercial Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,374.6 | 1,393.3 | 1,366.6 | 1,374.1 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 18.3 | ||||
Cumulative Number of Incurred Claim Counts | claim | 97,448 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,183.6 | 1,027.3 | 712.9 | 325.8 | |
2017 | Property | Property Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 681.3 | 683.4 | 680.9 | 672.8 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 1.3 | ||||
Cumulative Number of Incurred Claim Counts | claim | 74,140 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 675 | 670.1 | 647.1 | 506.7 | |
2018 | Commercial Lines - Physical Damage | Commercial Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 476.6 | 478.2 | 475 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (1.4) | ||||
Cumulative Number of Incurred Claim Counts | claim | 82,134 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 475.3 | 475.1 | 426 | ||
2018 | Commercial Lines - Liability | Commercial Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,789.7 | 1,736.5 | 1,700.8 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 41.5 | ||||
Cumulative Number of Incurred Claim Counts | claim | 111,767 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,290.5 | 913.4 | 382.7 | ||
2018 | Property | Property Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 845.4 | 845.2 | 839 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 18.2 | ||||
Cumulative Number of Incurred Claim Counts | claim | 63,722 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 812.6 | 781.2 | 595.9 | ||
2019 | Commercial Lines - Physical Damage | Commercial Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 574.2 | 577.8 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (3.3) | ||||
Cumulative Number of Incurred Claim Counts | claim | 88,897 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 571.5 | 516.9 | |||
2019 | Commercial Lines - Liability | Commercial Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,175.6 | 2,103.1 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 116.3 | ||||
Cumulative Number of Incurred Claim Counts | claim | 126,959 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,120.1 | 455.4 | |||
2019 | Property | Property Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 965.2 | 971.7 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 11.7 | ||||
Cumulative Number of Incurred Claim Counts | claim | 72,396 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 930.4 | 708 | |||
2020 | Commercial Lines - Physical Damage | Commercial Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 575.2 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (14.1) | ||||
Cumulative Number of Incurred Claim Counts | claim | 87,333 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 497.9 | ||||
2020 | Commercial Lines - Liability | Commercial Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,161.8 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 369.8 | ||||
Cumulative Number of Incurred Claim Counts | claim | 105,900 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 427.6 | ||||
2020 | Property | Property Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,223.5 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 252.4 | ||||
Cumulative Number of Incurred Claim Counts | claim | 80,820 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 832.5 | ||||
Agency Channel | Personal Lines - Liability | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 25,197.6 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 19,899.2 | ||||
All outstanding liabilities before 2016, net of reinsurance1 | 80.3 | ||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 5,378.7 | 5,117.4 | |||
Agency Channel | Personal Lines - Physical Damage | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 14,448.3 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 14,371.8 | ||||
All outstanding liabilities before 2016, net of reinsurance1 | 5.9 | ||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 82.4 | 32.4 | |||
Agency Channel | 2016 | Personal Lines - Liability | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 4,137.8 | 4,177.3 | 4,152 | 4,130 | 4,082.9 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0 | ||||
Cumulative Number of Incurred Claim Counts | claim | 740,535 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 4,062.5 | 3,969.5 | 3,723.1 | 3,231.5 | 1,941.6 |
Agency Channel | 2016 | Personal Lines - Physical Damage | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,402.8 | 2,400.1 | 2,401.8 | 2,398.9 | 2,423.4 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0 | ||||
Cumulative Number of Incurred Claim Counts | claim | 1,399,156 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 2,401.8 | 2,402.2 | 2,402.1 | 2,406.9 | 2,391 |
Agency Channel | 2017 | Personal Lines - Liability | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 4,546.4 | 4,511.1 | 4,485.8 | 4,474.8 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 72.3 | ||||
Cumulative Number of Incurred Claim Counts | claim | 779,303 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 4,285.5 | 4,048.5 | 3,478.5 | 2,074 | |
Agency Channel | 2017 | Personal Lines - Physical Damage | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,640.6 | 2,643.5 | 2,638.5 | 2,635.5 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (4) | ||||
Cumulative Number of Incurred Claim Counts | claim | 1,514,873 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 2,640.8 | 2,640.9 | 2,643.2 | 2,599.8 | |
Agency Channel | 2018 | Personal Lines - Liability | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,192.7 | 5,182.1 | 5,141.8 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 100 | ||||
Cumulative Number of Incurred Claim Counts | claim | 856,108 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 4,635 | 4,028.7 | 2,378 | ||
Agency Channel | 2018 | Personal Lines - Physical Damage | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,821.7 | 2,822.6 | 2,819 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (3.4) | ||||
Cumulative Number of Incurred Claim Counts | claim | 1,694,997 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 2,819.9 | 2,827.4 | 2,769.1 | ||
Agency Channel | 2019 | Personal Lines - Liability | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,886.9 | 5,885 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 264.3 | ||||
Cumulative Number of Incurred Claim Counts | claim | 913,063 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 4,533.2 | 2,715.2 | |||
Agency Channel | 2019 | Personal Lines - Physical Damage | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,254.7 | 3,277.9 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (13.4) | ||||
Cumulative Number of Incurred Claim Counts | claim | 1,876,942 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 3,259.2 | 3,242.5 | |||
Agency Channel | 2020 | Personal Lines - Liability | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,433.8 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 926.8 | ||||
Cumulative Number of Incurred Claim Counts | claim | 750,654 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 2,383 | ||||
Agency Channel | 2020 | Personal Lines - Physical Damage | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,328.5 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (183.4) | ||||
Cumulative Number of Incurred Claim Counts | claim | 1,768,482 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 3,250.1 | ||||
Direct Channel | Personal Lines - Liability | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 24,292.3 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 19,070.2 | ||||
All outstanding liabilities before 2016, net of reinsurance1 | 55.2 | ||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 5,277.3 | 4,936.8 | |||
Direct Channel | Personal Lines - Physical Damage | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 15,919.5 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 15,879.7 | ||||
All outstanding liabilities before 2016, net of reinsurance1 | 0.8 | ||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 40.6 | (7.7) | |||
Direct Channel | 2016 | Personal Lines - Liability | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,866.1 | 3,897.8 | 3,871.2 | 3,843.9 | 3,819 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0 | ||||
Cumulative Number of Incurred Claim Counts | claim | 735,791 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 3,799.1 | 3,714.6 | 3,476.9 | 2,991.1 | 1,780.6 |
Direct Channel | 2016 | Personal Lines - Physical Damage | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,478.5 | 2,475.6 | 2,477.7 | 2,475.4 | 2,521 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0 | ||||
Cumulative Number of Incurred Claim Counts | claim | 1,676,396 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 2,477.8 | 2,478.5 | 2,479.3 | 2,485.8 | $ 2,505 |
Direct Channel | 2017 | Personal Lines - Liability | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 4,254.4 | 4,229.3 | 4,209.9 | 4,209.5 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 61.3 | ||||
Cumulative Number of Incurred Claim Counts | claim | 772,986 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 4,035.6 | 3,808.3 | 3,255.2 | 1,912.6 | |
Direct Channel | 2017 | Personal Lines - Physical Damage | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,745.6 | 2,749 | 2,743.7 | 2,750.6 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (5.1) | ||||
Cumulative Number of Incurred Claim Counts | claim | 1,791,582 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 2,747.6 | 2,748.4 | 2,753.5 | $ 2,742.1 | |
Direct Channel | 2018 | Personal Lines - Liability | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,003.2 | 4,980.9 | 4,904.8 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 88 | ||||
Cumulative Number of Incurred Claim Counts | claim | 870,978 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 4,481.7 | 3,863.5 | 2,235.1 | ||
Direct Channel | 2018 | Personal Lines - Physical Damage | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,182 | 3,181.9 | 3,202.3 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (5.1) | ||||
Cumulative Number of Incurred Claim Counts | claim | 2,069,684 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 3,183 | 3,193.8 | $ 3,170 | ||
Direct Channel | 2019 | Personal Lines - Liability | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,811.7 | 5,756.5 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 243.5 | ||||
Cumulative Number of Incurred Claim Counts | claim | 954,209 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 4,452.5 | 2,630.3 | |||
Direct Channel | 2019 | Personal Lines - Physical Damage | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,737.8 | 3,787.9 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (22.7) | ||||
Cumulative Number of Incurred Claim Counts | claim | 2,269,857 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 3,751.3 | $ 3,782.6 | |||
Direct Channel | 2020 | Personal Lines - Liability | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,356.9 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 901.1 | ||||
Cumulative Number of Incurred Claim Counts | claim | 786,809 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 2,301.3 | ||||
Direct Channel | 2020 | Personal Lines - Physical Damage | Personal Lines Segment | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,775.6 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (264.5) | ||||
Cumulative Number of Incurred Claim Counts | claim | 2,137,810 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 3,720 |
Loss And Loss Adjustment Expe_6
Loss And Loss Adjustment Expense Reserves Reconciliation of the Claims Development to the Liability for Claims and Claim Adjustment Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | $ 14,989.4 | $ 13,614.3 | ||
Total reinsurance recoverable on unpaid claims | 3,779.1 | 3,200.1 | ||
Unallocated claims adjustment expense related to liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 1,478.2 | 1,278.9 | ||
Unallocated claims adjustment expense related to reinsurance recoverable on unpaid claims | 19.1 | 12.1 | ||
Total gross liability for unpaid claims and claim adjustment expense | 20,265.8 | 18,105.4 | $ 15,400.8 | $ 13,086.9 |
Other business | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 66.7 | 30.8 | ||
Total reinsurance recoverable on unpaid claims | 358.6 | 288.1 | ||
Commercial Lines Segment | Commercial Lines - Liability | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 3,586.3 | 3,080.8 | ||
Total reinsurance recoverable on unpaid claims | 758.5 | 482.6 | ||
Commercial Lines Segment | Commercial Lines - Physical Damage | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 82.7 | 66.6 | ||
Total reinsurance recoverable on unpaid claims | (0.3) | 0.5 | ||
Property Segment | Property | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 474.7 | 357.2 | ||
Total reinsurance recoverable on unpaid claims | 226.9 | 184.1 | ||
Agency Channel | Personal Lines Segment | Personal Lines - Liability | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 5,378.7 | 5,117.4 | ||
Total reinsurance recoverable on unpaid claims | 959.6 | 930.7 | ||
Agency Channel | Personal Lines Segment | Personal Lines - Physical Damage | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 82.4 | 32.4 | ||
Total reinsurance recoverable on unpaid claims | 0 | 0 | ||
Direct Channel | Personal Lines Segment | Personal Lines - Liability | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 5,277.3 | 4,936.8 | ||
Total reinsurance recoverable on unpaid claims | 1,475.8 | 1,314.1 | ||
Direct Channel | Personal Lines Segment | Personal Lines - Physical Damage | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 40.6 | (7.7) | ||
Total reinsurance recoverable on unpaid claims | $ 0 | $ 0 |
Loss And Loss Adjustment Expe_7
Loss And Loss Adjustment Expense Reserves Historical Claims Duration (Details) | Dec. 31, 2020 |
Personal Lines Segment | Agency Channel | Personal Lines - Liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 45.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 31.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 12.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 5.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 2.20% |
Personal Lines Segment | Agency Channel | Personal Lines - Physical Damage | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 98.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 1.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | (0.20%) |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 0.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 0.00% |
Personal Lines Segment | Direct Channel | Personal Lines - Liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 44.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 31.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 12.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 5.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 2.20% |
Personal Lines Segment | Direct Channel | Personal Lines - Physical Damage | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 100.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | (0.10%) |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | (0.30%) |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 0.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 0.00% |
Commercial Lines Segment | Commercial Lines - Liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 21.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 29.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 21.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 13.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 6.50% |
Commercial Lines Segment | Commercial Lines - Physical Damage | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 88.90% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 10.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 0.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 0.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 0.00% |
Property Segment | Property | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 71.90% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 20.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 3.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 1.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 0.80% |
Reinsurance Effect of Reinsuran
Reinsurance Effect of Reinsurance on Premiums Written and Earned (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Direct premiums written | $ 41,736.4 | $ 39,222 | $ 33,753.1 |
Ceded written | (1,167.7) | (1,644.1) | (1,143.2) |
Net premiums written | 40,568.7 | 37,577.9 | 32,609.9 |
Direct premiums earned | 40,687.7 | 37,519.7 | 31,970.2 |
Ceded earned | (1,426.1) | (1,327.3) | (1,036.9) |
Net premiums earned | 39,261.6 | 36,192.4 | 30,933.3 |
non regulated reinsurance plan | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Ceded written | (519.5) | (933) | (546.8) |
Ceded earned | (739.6) | (656.5) | (479.4) |
Regulated reinsurance plan | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Ceded written | (648.2) | (711.1) | (596.4) |
Ceded earned | $ (686.5) | $ (670.8) | $ (557.5) |
Reinsurance Prepaid Reinsurance
Reinsurance Prepaid Reinsurance Premiums and Reinsurance Recoverables (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Reinsurance Recoverables, Including Reinsurance Premium Paid | $ 4,019.4 | $ 3,378.9 |
Percentage Of Total Reinsurance Recoverables | 100.00% | 100.00% |
Prepaid reinsurance premiums | $ 368.1 | $ 626.5 |
Percentage Of Total Prepaid Reinsurance Premiums | 100.00% | 100.00% |
Commercial Lines reinsurance program | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Reinsurance Recoverables, Including Reinsurance Premium Paid | $ 753.2 | $ 459.5 |
Percentage Of Total Reinsurance Recoverables | 19.00% | 14.00% |
Prepaid reinsurance premiums | $ 134.5 | $ 352.9 |
Percentage Of Total Prepaid Reinsurance Premiums | 37.00% | 56.00% |
Property reinsurance program | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Reinsurance Recoverables, Including Reinsurance Premium Paid | $ 261.7 | $ 146.8 |
Percentage Of Total Reinsurance Recoverables | 7.00% | 4.00% |
Prepaid reinsurance premiums | $ 11.7 | $ 14.5 |
Percentage Of Total Prepaid Reinsurance Premiums | 3.00% | 3.00% |
Other reinsurance program | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Reinsurance Recoverables, Including Reinsurance Premium Paid | $ 7.1 | $ 8 |
Percentage Of Total Reinsurance Recoverables | 0.00% | 0.00% |
Prepaid reinsurance premiums | $ 0 | $ 0 |
Percentage Of Total Prepaid Reinsurance Premiums | 0.00% | 0.00% |
Non State Reinsurance Plans | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Reinsurance Recoverables, Including Reinsurance Premium Paid | $ 1,022 | $ 614.3 |
Percentage Of Total Reinsurance Recoverables | 26.00% | 18.00% |
Prepaid reinsurance premiums | $ 146.2 | $ 367.4 |
Percentage Of Total Prepaid Reinsurance Premiums | 40.00% | 59.00% |
State Reinsurance Plans | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Reinsurance Recoverables, Including Reinsurance Premium Paid | $ 2,997.4 | $ 2,764.6 |
Percentage Of Total Reinsurance Recoverables | 74.00% | 82.00% |
Prepaid reinsurance premiums | $ 221.9 | $ 259.1 |
Percentage Of Total Prepaid Reinsurance Premiums | 60.00% | 41.00% |
State Reinsurance Plans | Michigan Catastrophic Claims Association | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Reinsurance Recoverables, Including Reinsurance Premium Paid | $ 2,428.8 | $ 2,247.1 |
Percentage Of Total Reinsurance Recoverables | 60.00% | 67.00% |
Prepaid reinsurance premiums | $ 33.3 | $ 71.8 |
Percentage Of Total Prepaid Reinsurance Premiums | 9.00% | 12.00% |
State Reinsurance Plans | Commercial Auto Insurance Procedures Plans | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Reinsurance Recoverables, Including Reinsurance Premium Paid | $ 397.8 | $ 332.4 |
Percentage Of Total Reinsurance Recoverables | 10.00% | 10.00% |
Prepaid reinsurance premiums | $ 84.7 | $ 93.8 |
Percentage Of Total Prepaid Reinsurance Premiums | 23.00% | 15.00% |
State Reinsurance Plans | Florida Hurricane Catastrophe Fund | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Reinsurance Recoverables, Including Reinsurance Premium Paid | $ 54.8 | $ 86 |
Percentage Of Total Reinsurance Recoverables | 1.00% | 3.00% |
Prepaid reinsurance premiums | $ 0 | $ 0 |
Percentage Of Total Prepaid Reinsurance Premiums | 0.00% | 0.00% |
State Reinsurance Plans | North Carolina Reinsurance Facility | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Reinsurance Recoverables, Including Reinsurance Premium Paid | $ 88.6 | $ 84.4 |
Percentage Of Total Reinsurance Recoverables | 2.00% | 2.00% |
Prepaid reinsurance premiums | $ 41.9 | $ 33.8 |
Percentage Of Total Prepaid Reinsurance Premiums | 11.00% | 5.00% |
State Reinsurance Plans | Other reinsurance program | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Reinsurance Recoverables, Including Reinsurance Premium Paid | $ 3.2 | $ 3.1 |
Percentage Of Total Reinsurance Recoverables | 0.00% | 0.00% |
Prepaid reinsurance premiums | $ 1.3 | $ 1 |
Percentage Of Total Prepaid Reinsurance Premiums | 0.00% | 0.00% |
Federal Reinsurance Plans | National Flood Insurance Program | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Reinsurance Recoverables, Including Reinsurance Premium Paid | $ 24.2 | $ 11.6 |
Percentage Of Total Reinsurance Recoverables | 1.00% | 0.00% |
Prepaid reinsurance premiums | $ 60.7 | $ 58.7 |
Percentage Of Total Prepaid Reinsurance Premiums | 17.00% | 9.00% |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) - state | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Transportation Network Company | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Number of States in which Entity Operates | 20 | 17 | 4 |
Statutory Financial Informati_2
Statutory Financial Information - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statutory Financial Information Disclosures [Abstract] | |||
Consolidated statutory policyholders' surplus | $ 15,194.6 | $ 13,671.1 | |
Statutory net income | 4,911.4 | $ 3,489.7 | $ 2,643 |
Consolidated statutory policyholders' surplus, net admitted assets of insurance subsidiaries and affiliate that are required to meet minimum statutory surplus requirements in such entities' states of domicile | 1,142 | ||
Aggregate cash dividends paid to the parent company by subsidiaries | 4,096.5 | ||
Maximum aggregate dividend amount subsidiaries could pay without prior approval from regulatory authorities | $ 4,612.6 |
Employee Benefit Plans Amounts
Employee Benefit Plans Amounts Charged to Income for employees Incentive Compensation Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Incentive Compensation Cash Award | |||
Incentive Compensation Plans Expense [Line Items] | |||
Pretax | $ 688.8 | $ 598.4 | $ 539.5 |
After Tax | 544.2 | 472.7 | 426.2 |
Employee Stock | |||
Incentive Compensation Plans Expense [Line Items] | |||
Pretax | 89.4 | 90.1 | 76.2 |
After Tax | 70.6 | 71.2 | 60.2 |
Employee Stock Option | |||
Incentive Compensation Plans Expense [Line Items] | |||
Pretax | 0 | 0.1 | 1 |
After Tax | $ 0 | $ 0.1 | $ 0.8 |
Employee Benefit Plans Summary
Employee Benefit Plans Summary of All Employee Restricted Equity Award Activity (Detail) - Employee Restricted Equity Awards - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares | |||
Beginning of year | 3,879,077 | 4,856,356 | 5,858,848 |
Add (deduct): | |||
Granted | 1,629,534 | 1,835,145 | 1,876,109 |
Vested | (1,861,442) | (2,691,337) | (2,811,070) |
Forfeited | (76,898) | (121,087) | (67,531) |
End of year | 3,570,271 | 3,879,077 | 4,856,356 |
Weighted Average Grant Date Fair Value | |||
Beginning of year | $ 48.28 | $ 38.56 | $ 30.47 |
Granted | 55.28 | 49.61 | 45.55 |
Vested | 36.19 | 31.85 | 26.41 |
Forfeited | 52.79 | 43.98 | 36.10 |
End of year | $ 57.68 | $ 48.28 | $ 38.56 |
Unrecognized compensation cost related to unvested equity awards | $ 102.1 | ||
Period of recognition of compensation expense related to unvested equity awards | 2 years 3 months 18 days | ||
Dividend Equivalent Units | |||
Add (deduct): | |||
Granted | 144,389 | 210,159 | 144,688 |
Weighted Average Grant Date Fair Value | |||
Granted | $ 0 | $ 0 | $ 0 |
Performance Shares | |||
Weighted Average Grant Date Fair Value | |||
Target shares | 707,293 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Expected To Vest Number | 1,658,308 |
Employee Benefit Plans Summar_2
Employee Benefit Plans Summary of all Directors' Restricted Stock Activity (Detail) - Non Employee Director Restricted Equity Awards - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to unvested equity awards | $ 0.9 | $ 0.8 | $ 0.9 |
Number of Shares | |||
Beginning of year | 38,451 | 41,706 | 53,284 |
Add (deduct): | |||
Granted | 39,403 | 38,451 | 41,706 |
Vested | (38,451) | (41,706) | (53,284) |
End of year | 39,403 | 38,451 | 41,706 |
Weighted Average Grant Date Fair Value | |||
Beginning of year | $ 73.43 | $ 62.23 | $ 40.54 |
Granted | 74.77 | 73.43 | 62.23 |
Vested | 73.43 | 62.23 | 40.54 |
End of year | $ 74.77 | $ 73.43 | $ 62.23 |
Employee Benefit Plans Assets H
Employee Benefit Plans Assets Held in Deferral Plan Irrevocable Grantor Trust Account (Detail) - USD ($) shares in Millions, $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets held in Deferral Plan Irrevocable Grantor Trust account | $ 301.4 | $ 272.8 |
Other Investment Funds | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets held in Deferral Plan Irrevocable Grantor Trust account | 167.2 | 151.2 |
Common equities | Progressive common shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets held in Deferral Plan Irrevocable Grantor Trust account | $ 134.2 | $ 121.6 |
Deferred Compensation Arrangement with Individual, Shares Authorized for Issuance | 2.8 | 3.2 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Benefits Disclosure [Line Items] | |||
Minimum employment period for benefits | 30 days | ||
Postemployment benefits liability | $ 24.1 | $ 22.2 | |
Compensation, Percentage | 100.00% | ||
Employee Restricted Equity Awards | |||
Employee Benefits Disclosure [Line Items] | |||
Aggregate fair value of the restricted equity awards that vested during the period | $ 148.9 | 191.6 | $ 162.7 |
Non Employee Director Restricted Equity Awards | |||
Employee Benefits Disclosure [Line Items] | |||
Vesting period of grants to date | 11 months | ||
Total pretax intrinsic value of options exercised and restricted stock vested | $ 3 | $ 3 | $ 3.2 |
Executive Deferred Compensation Plan | |||
Employee Benefits Disclosure [Line Items] | |||
Common shares reserved for issuance under executive deferred compensation plan | 11.1 | ||
2017 Directors Equity Incentive Plan | Non Employee Director Restricted Equity Awards | |||
Employee Benefits Disclosure [Line Items] | |||
Shares authorized | 0.5 | ||
Equity Incentive Plan Twenty Fifteen | |||
Employee Benefits Disclosure [Line Items] | |||
Shares authorized | 17 | ||
Performance Based Restricted Equity Awards | Insurance Operating Results | Lower Limit | |||
Employee Benefits Disclosure [Line Items] | |||
Performance-based awards granted vesting percentage of the award amount | 0.00% | 0.00% | 0.00% |
Performance Based Restricted Equity Awards | Insurance Operating Results | Upper Limit | |||
Employee Benefits Disclosure [Line Items] | |||
Performance-based awards granted vesting percentage of the award amount | 250.00% | 250.00% | 250.00% |
Performance Based Restricted Equity Awards | Investment Results | Lower Limit | |||
Employee Benefits Disclosure [Line Items] | |||
Performance-based awards granted vesting percentage of the award amount | 0.00% | 0.00% | 0.00% |
Performance Based Restricted Equity Awards | Investment Results | Upper Limit | |||
Employee Benefits Disclosure [Line Items] | |||
Performance-based awards granted vesting percentage of the award amount | 200.00% | 200.00% | 200.00% |
Defined Contribution Pension Plan 401k | |||
Employee Benefits Disclosure [Line Items] | |||
Matching contributions | $ 131.2 | $ 120.8 | $ 106.8 |
Defined Contribution Pension Plan 401k | Upper Limit | |||
Employee Benefits Disclosure [Line Items] | |||
Matching contribution to defined contribution pension plan | 6.00% | ||
Cash [Member] | |||
Employee Benefits Disclosure [Line Items] | |||
Compensation, Percentage | 40.00% | ||
Non Employee Director Restricted Equity Awards | |||
Employee Benefits Disclosure [Line Items] | |||
Compensation, Percentage | 60.00% | ||
Vesting tranche one | Employee Restricted Equity Awards | |||
Employee Benefits Disclosure [Line Items] | |||
Vesting period of grants to date | 3 years | ||
Vesting tranche two | Employee Restricted Equity Awards | |||
Employee Benefits Disclosure [Line Items] | |||
Vesting period of grants to date | 4 years | ||
Vesting tranche three | Employee Restricted Equity Awards | |||
Employee Benefits Disclosure [Line Items] | |||
Vesting period of grants to date | 5 years | ||
Common equities | |||
Employee Benefits Disclosure [Line Items] | |||
Employee Stock Ownership Plan Shares held | 21.5 |
Segment Information Operating R
Segment Information Operating Results (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 42,658.1 | $ 39,022.3 | $ 31,979 |
Pretax Profit (Loss) | 7,173.2 | 5,160.3 | 3,163.6 |
Amortization of intangible assets | 56.9 | 66.3 | 72 |
Personal Lines Segment | Agency Channel | Underwriting Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues | 15,789.5 | 14,904.1 | 13,017.2 |
Pretax Profit (Loss) | 2,236.5 | 1,673.2 | 1,435.7 |
Personal Lines Segment | Direct Channel | Underwriting Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues | 16,830.6 | 15,305.9 | 13,017.5 |
Pretax Profit (Loss) | 2,076.5 | 1,181.4 | 1,088.5 |
Operating Segments | Underwriting Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues | 39,261.6 | 36,192.4 | 30,933.3 |
Pretax Profit (Loss) | 4,822.7 | 3,287.3 | 2,915 |
Operating Segments | Personal Lines Segment | Underwriting Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues | 32,620.1 | 30,210 | 26,034.7 |
Pretax Profit (Loss) | $ 4,313 | $ 2,854.6 | $ 2,524.2 |
Personal auto insurance percentage of the total personal lines segment net premiums earned | 94.00% | 94.00% | 94.00% |
Operating Segments | Commercial Lines Segment | Underwriting Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 4,875.8 | $ 4,427.6 | $ 3,610.9 |
Pretax Profit (Loss) | 634.8 | 458.8 | 478.6 |
Operating Segments | Property Segment | Underwriting Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,765.7 | 1,554.8 | 1,287.7 |
Pretax Profit (Loss) | (125.1) | (26.1) | (88.7) |
Amortization of intangible assets | 56.9 | 66.3 | 72 |
Operating Segments | Other Indemnity | Underwriting Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | 0 |
Pretax Profit (Loss) | 0 | 0 | 0.9 |
Segment Reconciling Items | Investments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,566.6 | 2,071.2 | 415 |
Pretax Profit (Loss) | 2,546.6 | 2,046.6 | 390.7 |
Segment Reconciling Items | Interest Expense | |||
Segment Reporting Information [Line Items] | |||
Pretax Profit (Loss) | (217) | (189.7) | (166.5) |
Segment Reconciling Items | Fees And Other Revenues | |||
Segment Reporting Information [Line Items] | |||
Revenues | 603.5 | 563.7 | 472.2 |
Segment Reconciling Items | Service Businesses | |||
Segment Reporting Information [Line Items] | |||
Revenues | 226.4 | 195 | 158.5 |
Pretax Profit (Loss) | $ 20.9 | $ 16.1 | $ 24.4 |
Segment Information Underwritin
Segment Information Underwriting Margins and Combined Ratios for our Underwriting Operations (Details) - Underwriting Operations | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Personal Lines Segment | Agency Channel | |||
Segment Reporting Information [Line Items] | |||
Underwriting Margin | 14.20% | 11.20% | 11.00% |
Combined Ratio | 85.80% | 88.80% | 89.00% |
Personal Lines Segment | Direct Channel | |||
Segment Reporting Information [Line Items] | |||
Underwriting Margin | 12.30% | 7.70% | 8.40% |
Combined Ratio | 87.70% | 92.30% | 91.60% |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Underwriting Margin | 12.30% | 9.10% | 9.40% |
Combined Ratio | 87.70% | 90.90% | 90.60% |
Operating Segments | Personal Lines Segment | |||
Segment Reporting Information [Line Items] | |||
Underwriting Margin | 13.20% | 9.50% | 9.70% |
Combined Ratio | 86.80% | 90.50% | 90.30% |
Operating Segments | Commercial Lines Segment | |||
Segment Reporting Information [Line Items] | |||
Underwriting Margin | 13.00% | 10.40% | 13.30% |
Combined Ratio | 87.00% | 89.60% | 86.70% |
Operating Segments | Property Segment | |||
Segment Reporting Information [Line Items] | |||
Underwriting Margin | (7.10%) | (1.70%) | (6.90%) |
Combined Ratio | 107.10% | 101.70% | 106.90% |
Combined ratio amortization points | 0.032 | 0.043 | 0.056 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)Entity | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||
Depreciation | $ | $ 274.9 | $ 239.8 | $ 190.4 |
Operating Segments | Personal Lines Segment | Agency Channel | Lower Limit | |||
Segment Reporting Information [Line Items] | |||
Independent insurance agencies and brokerages | Entity | 40,000 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) Components of Other Comprehensive Income (Loss) Including Reclassification Adjustments by Income Statement (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | |||
AOCI before Tax, Attributable to Parent, beginning balance | $ 435.7 | $ (153) | $ 1,977.8 |
Pretax Cumulative Effect of New Accounting Principal in Period of Adoption | (2,006) | ||
Pretax Reclassification of Stranded Amounts in AOCI to Equity | 3.4 | (4.3) | |
AOCI before Tax, Attributable to Parent, After Reclassification of Stranded Amounts | 439.1 | ||
AOCI before Tax, Attributable to Parent, after Cumulative Effect Adjustment and Reclassification of Stranded Amounts | (32.5) | ||
Unrealized Holding Gain (Loss) on Securities Arising During the Period, before tax | 1,557.2 | 825.8 | (224.1) |
Portion Attributable to Noncontrolling Interest, before tax | 0 | (5.9) | 4.3 |
Total other comprehensive income (loss) before reclassifications, before tax | 1,557.2 | 819.9 | (219.8) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 810 | 232.2 | (98.3) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (1.1) | (1) | (1) |
Total reclassification adjustment for amounts realized in net income, before tax | 808.9 | 231.2 | (99.3) |
Total other comprehensive income, before tax | 748.3 | 588.7 | (120.5) |
AOCI before Tax, Attributable to Parent, ending balance | 1,187.4 | 435.7 | (153) |
Accumulated Other Comprehensive Income (Loss), Tax [Roll Forward] | |||
AOCI Tax, Attributable to Parent, beginning balance | (94) | 32.1 | (695.6) |
Tax, Cumulative Effect of New Accounting Principal in Period of Adoption | 705.8 | ||
Tax, Reclassification of Stranded Amounts in AOCI to Equity | (0.7) | (3.4) | |
AOCI Tax, Attributable to Parent, After Reclassification of Stranded Amounts | (94.7) | ||
AOCI Tax, Attributable to Parent, After Cumulative Effect Adjustment and Reclassification of Stranded Amounts | 6.8 | ||
Unrealized Holding Gain (Loss) on Securities Arising During the Period, tax | (306.1) | (174.9) | 47 |
Portion Attributable to Noncontrolling Interest, tax | 0 | 1.3 | (1) |
Total Other Comprehensive Income (Loss), before Reclassification Adjustments, Tax | (306.1) | (173.6) | 46 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | (145.4) | (47.7) | 20.5 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 0.3 | 0.2 | 0.2 |
Total reclassification adjustment for amounts realized in net income, Total tax (provisions) benefit | (145.1) | (47.5) | 20.7 |
Total other comprehensive income, Total tax (provision) benefit | (161) | (126.1) | 25.3 |
AOCI Tax, Attributable to Parent, ending balance | (255.7) | (94) | 32.1 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
After tax total accumulated other comprehensive income, beginning balance | 341.7 | (120.9) | 1,282.2 |
Cumulative Effect of New Accounting Principal in Period of Adoption | (1,300.2) | ||
Reclassification of Stranded Amounts in AOCI to Equity | 2.7 | (7.7) | |
AOCI Net of Tax, Attributable to Parent, After Reclassification of Stranded Amounts | 344.4 | ||
AOCI, Net of Tax, After Cumulative Effect Adjustment and Reclassification of Stranded Amounts | (25.7) | ||
Unrealized Holding Gain (Loss) on Securities Arising During Period, after tax | 1,251.1 | 650.9 | (177.1) |
Other comprehensive (income) loss attributable to NCI | 0 | (4.6) | 3.3 |
Total other comprehensive income (loss), before reclassifications, after tax | 1,251.1 | 646.3 | (173.8) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 664.6 | 184.5 | (77.8) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (0.8) | (0.8) | (0.8) |
Total reclassification adjustment for amounts realized in net income, Net of tax | 663.8 | 183.7 | (78.6) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 587.3 | 462.6 | (95.2) |
After tax total accumulated other comprehensive income, ending balance | 931.7 | 341.7 | (120.9) |
Net unrealized gains (losses) on securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
After tax total accumulated other comprehensive income, beginning balance | 360.8 | (105.6) | 1,295 |
Cumulative Effect of New Accounting Principal in Period of Adoption | (1,300.2) | ||
Reclassification of Stranded Amounts in AOCI to Equity | 0 | (1.1) | |
AOCI Net of Tax, Attributable to Parent, After Reclassification of Stranded Amounts | 360.8 | ||
AOCI, Net of Tax, After Cumulative Effect Adjustment and Reclassification of Stranded Amounts | (6.3) | ||
Unrealized Holding Gain (Loss) on Securities Arising During Period, after tax | 1,251.1 | 650.9 | (177.1) |
Other comprehensive (income) loss attributable to NCI | 0 | 0 | 0 |
Total other comprehensive income (loss), before reclassifications, after tax | 1,251.1 | 650.9 | (177.1) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 664.6 | 184.5 | (77.8) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | 0 | 0 |
Total reclassification adjustment for amounts realized in net income, Net of tax | 664.6 | 184.5 | (77.8) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 586.5 | 466.4 | (99.3) |
After tax total accumulated other comprehensive income, ending balance | 947.3 | 360.8 | (105.6) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
After tax total accumulated other comprehensive income, beginning balance | (16.4) | (17.2) | (14.8) |
Cumulative Effect of New Accounting Principal in Period of Adoption | 0 | ||
Reclassification of Stranded Amounts in AOCI to Equity | 0 | (3.2) | |
AOCI Net of Tax, Attributable to Parent, After Reclassification of Stranded Amounts | (16.4) | ||
AOCI, Net of Tax, After Cumulative Effect Adjustment and Reclassification of Stranded Amounts | (18) | ||
Unrealized Holding Gain (Loss) on Securities Arising During Period, after tax | 0 | 0 | 0 |
Other comprehensive (income) loss attributable to NCI | 0 | 0 | 0 |
Total other comprehensive income (loss), before reclassifications, after tax | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (0.8) | (0.8) | (0.8) |
Total reclassification adjustment for amounts realized in net income, Net of tax | (0.8) | (0.8) | (0.8) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0.8 | 0.8 | 0.8 |
After tax total accumulated other comprehensive income, ending balance | (15.6) | (16.4) | (17.2) |
Noncontrolling Interest | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
After tax total accumulated other comprehensive income, beginning balance | (2.7) | 1.9 | 2 |
Cumulative Effect of New Accounting Principal in Period of Adoption | 0 | ||
Reclassification of Stranded Amounts in AOCI to Equity | 2.7 | (3.4) | |
AOCI Net of Tax, Attributable to Parent, After Reclassification of Stranded Amounts | 0 | ||
AOCI, Net of Tax, After Cumulative Effect Adjustment and Reclassification of Stranded Amounts | (1.4) | ||
Unrealized Holding Gain (Loss) on Securities Arising During Period, after tax | 0 | 0 | 0 |
Other comprehensive (income) loss attributable to NCI | 0 | (4.6) | 3.3 |
Total other comprehensive income (loss), before reclassifications, after tax | 0 | (4.6) | 3.3 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | 0 | 0 |
Total reclassification adjustment for amounts realized in net income, Net of tax | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0 | (4.6) | 3.3 |
After tax total accumulated other comprehensive income, ending balance | $ 0 | $ (2.7) | $ 1.9 |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) Components of Other Comprehensive Income (Loss) Including Reclassification Adjustments by Income Statement Additional Information (Detail) $ in Millions | Dec. 31, 2020USD ($) |
Statement of Comprehensive Income [Abstract] | |
Net unrealized losses on forecasted transactions, expected to reclassify into interest expense within the next 12 months | $ 0.9 |
- Additional Information (Detai
- Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 165.5 | $ 188.2 |
Operating Lease, Liability | $ 179 | $ 201.5 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent |
Weighted-average remaining term | 3 years | 3 years 3 months 18 days |
Weighted-average discount rate | 2.50% | 3.00% |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Leases - Schedule of operating
Leases - Schedule of operating lease maturities (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 78.9 | |
2022 | 48.7 | |
2023 | 29.1 | |
2024 | 18.4 | |
2025 | 9.8 | |
Thereafter | 0.5 | |
Total | 185.4 | |
Interest | (6.4) | |
Present value of lease liabilities | $ 179 | $ 201.5 |
Leases Expenses Incurred for Le
Leases Expenses Incurred for Leases (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Expense | $ 95.4 | $ 102 | $ 77.3 |
Dividends Dividends (Details)
Dividends Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2020 | Oct. 31, 2020 | Sep. 30, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Sep. 30, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Feb. 28, 2019 | Sep. 30, 2018 | Feb. 28, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 31, 2020 | Jun. 30, 2020 | Feb. 29, 2020 | Aug. 31, 2019 | Jun. 30, 2019 | Aug. 31, 2018 | Dec. 31, 2017 | |
Common shares, dividends declared (USD per share) | $ 4.90 | $ 2.65 | $ 2.5140 | ||||||||||||||||||||||
Dividends payable on common shares | $ 2,694.5 | $ 2,694.5 | $ 1,375.4 | ||||||||||||||||||||||
Quarterly dividend | |||||||||||||||||||||||||
Common shares, dividends declared (USD per share) | $ 0.10 | ||||||||||||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | ||||||||||||||||||
Annual variable dividend | |||||||||||||||||||||||||
Common shares, dividends declared (USD per share) | $ 4.50 | ||||||||||||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 2.25 | $ 2.5140 | $ 1.1247 | ||||||||||||||||||||||
Series B Preferred Stock | |||||||||||||||||||||||||
Dividends payable on common shares | $ 13.4 | $ 13.4 | 13.4 | $ 13.4 | $ 13.4 | $ 13.4 | $ 13.5 | ||||||||||||||||||
Preferred shares, dividends declared (USD per share) | $ 26.875 | ||||||||||||||||||||||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 26.875 | $ 26.875 | $ 26.875 | $ 26.875 | $ 27.024 | ||||||||||||||||||||
Common equities | |||||||||||||||||||||||||
Dividends payable on common shares | $ 2,694.5 | 2,694.5 | |||||||||||||||||||||||
Common equities | Quarterly dividend | |||||||||||||||||||||||||
Dividends payable on common shares | 58.6 | $ 58.6 | $ 58.5 | $ 58.5 | $ 58.4 | 58.6 | 58.5 | $ 58.5 | $ 58.4 | ||||||||||||||||
Common equities | Annual variable dividend | |||||||||||||||||||||||||
Dividends payable on common shares | $ 2,635.9 | $ 2,635.9 | $ 1,316.9 | $ 1,467.9 | $ 655.1 |
Dividends-Additional Informatio
Dividends-Additional Information (Details) - $ / shares | 1 Months Ended | 60 Months Ended | |||
Mar. 31, 2023 | Mar. 14, 2023 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Dividends Payable [Line Items] | |||||
Target percentage used to determine annual variable dividend | 33.33% | 33.33% | |||
Gainshare factor used to determine annual variable dividend | 1.91 | 1.79 | |||
Series B Preferred Stock | |||||
Dividends Payable [Line Items] | |||||
Preferred shares, issued (in shares) | 500,000 | ||||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | ||||
Forecast | Series B Preferred Stock | |||||
Dividends Payable [Line Items] | |||||
Preferred Stock, Dividend Rate, Percentage | 5.375% | ||||
London Interbank Offered Rate (LIBOR) | Forecast | Series B Preferred Stock | |||||
Dividends Payable [Line Items] | |||||
Preferred Stock, Basis Spread on Variable Rate | 2.539% |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interest (Details) $ in Millions | Apr. 01, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)shares | ||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Payments for Repurchase of Redeemable Noncontrolling Interest | $ 243 | $ 11.2 | $ 296.9 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Balance, Beginning of year | 225.6 | [1] | 214.5 | 503.7 | ||
Net income attributable to NCI | 0 | 9.7 | 5.7 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | 4.6 | (3.3) | |||
Stock Issued During Period, Value, Stock Options Exercised Attributable to Redeemable Noncontrolling Interest | 16 | 7.7 | 9.4 | |||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | (241.6) | (11.2) | (298.2) | |||
Adjustment to carrying amount of redeemable noncontrolling interest | 0 | 0.3 | (2.8) | |||
Balance, End of year | $ 0 | [1] | $ 225.6 | [1] | $ 214.5 | |
ARX Holding Corp. | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Number of Shares Put Pursuant to Stockholders' Agreement | shares | 204,527 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares | 5,483 | |||||
Payments to Acquire Interest in Subsidiaries and Affiliates | $ 295.9 | |||||
Payments for Repurchase of Redeemable Noncontrolling Interest | $ 243 | |||||
[1] | See Note 15 – Redeemable Noncontrolling Interest for further discussion . |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Net Carrying Amount of Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, accumulated amortization | $ 326.1 | $ 314 |
Indefinite-lived Intangible Assets (Excluding Goodwill) | 12.4 | 12.4 |
Total | 171.4 | 228.3 |
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, accumulated amortization | 325.5 | 313.4 |
Intangible assets subject to amortization | 159 | 215.9 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, accumulated amortization | $ 0.6 | $ 0.6 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Finite-lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ 326.1 | $ 314 |
Policies in force | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 256.2 | 256.2 |
Accumulated Amortization | 210.4 | 173.9 |
Net Carrying Amount | 45.8 | 82.3 |
Agency relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 159.2 | 159.2 |
Accumulated Amortization | 65.4 | 54 |
Net Carrying Amount | 93.8 | 105.2 |
Software rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 69.1 | 79.1 |
Accumulated Amortization | 49.7 | 50.7 |
Net Carrying Amount | 19.4 | 28.4 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 0 | 34.8 |
Accumulated Amortization | 0 | 34.8 |
Net Carrying Amount | 0 | 0 |
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 484.5 | 529.3 |
Accumulated Amortization | 325.5 | 313.4 |
Net Carrying Amount | $ 159 | $ 215.9 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets Goodwill and Intangible Assets - Amortization (Details) $ in Millions | Dec. 31, 2020USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Finite- Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 56.6 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 29.2 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 13.5 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 11.4 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 11.4 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets Goodwill (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)intangible_asset | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Goodwill [Line Items] | |||
Goodwill | $ 452,700,000 | $ 452,700,000 | |
Goodwill, Impaired, Accumulated Impairment Loss | 0 | ||
Amortization of intangible assets | 56,900,000 | 66,300,000 | $ 72,000,000 |
Software rights | |||
Goodwill [Line Items] | |||
Gross Carrying Amount | $ 69,100,000 | $ 79,100,000 | |
Number of Intangible Assets | intangible_asset | 1 | ||
Fully Amortized | Software rights | |||
Goodwill [Line Items] | |||
Gross Carrying Amount | $ 10,000,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ / shares in Units, $ in Millions | Feb. 16, 2021USD ($)$ / shares |
Subsequent Event [Line Items] | |
Business Acquisition, Share Price | $ / shares | $ 23.30 |
Business Acquisition, Amount | $ | $ 338 |