Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 08, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-18298 | ||
Entity Registrant Name | Kemper Corporation | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 95-4255452 | ||
Entity Address, Address Line One | 200 E. Randolph Street | ||
Entity Address, Address Line Two | Suite 3300 | ||
Entity Address, City or Town | Chicago | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60601 | ||
City Area Code | 312 | ||
Local Phone Number | 661-4600 | ||
Title of 12(b) Security | Common Stock, $0.10 par value per share | ||
Trading Symbol | KMPR | ||
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 | $ 4.7 | ||
Entity Common Stock, Shares Outstanding (in shares) | 63,688,550 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for the 2022 Annual Meeting of Shareholders are incorporated by reference into Part III. | ||
Entity Central Index Key | 0000860748 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Chicago, Illinois |
Auditor Firm ID | 34 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Earned Premiums | $ 5,253.7 | $ 4,672.2 | $ 4,472.4 |
Net Investment Income | 427.3 | 348.2 | 364.3 |
Change in Value of Alternative Energy Partnership Investments | (61.2) | 0 | 0 |
Other Income (Loss) | 4.8 | 94.6 | 35.5 |
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | 114.6 | 72.1 | 138.9 |
Net Realized Gains on Sales of Investments | 64.8 | 38.1 | 41.9 |
Net Impairment Losses Recognized in Earnings | (11) | (19.5) | (13.8) |
Other-than-temporary Impairment Losses: | |||
Total Revenues | 5,793 | 5,205.7 | 5,039.2 |
Expenses: | |||
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses | 4,600.8 | 3,323.6 | 3,188.3 |
Insurance Expenses | 1,218.1 | 1,100.5 | 1,019.7 |
Loss from Early Extinguishment of Debt | 0 | 0 | 5.8 |
Interest and Other Expenses | 219.4 | 271.5 | 163.8 |
Total Expenses | 6,038.3 | 4,695.6 | 4,377.6 |
Income (Loss) before Income Taxes | (245.3) | 510.1 | 661.6 |
Income Tax Benefit (Expense) | 124.8 | (100.2) | (130.5) |
Net Income (Loss) | $ (120.5) | $ 409.9 | $ 531.1 |
Income (Loss) from Continuing Operations Per Unrestricted Share: | |||
Basic (in dollars per share) | $ 8.04 | ||
Diluted (in dollars per share) | 7.96 | ||
Net Income (Loss) Per Unrestricted Share: | |||
Basic (in dollars per share) | $ (1.87) | $ 6.24 | 8.04 |
Diluted (in dollars per share) | $ (1.87) | $ 6.14 | $ 7.96 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Income (Loss) | $ (120.5) | $ 409.9 | $ 531.1 |
Decrease (Increase) in Net Unrecognized Postretirement Benefit Costs | (8.8) | 70.2 | (7.8) |
Gain on Cash Flow Hedges | 0.5 | 0.4 | 0.4 |
Other Comprehensive Income (Loss) Before Income Taxes | (294.8) | 437.9 | 397.9 |
Other Comprehensive Income Tax Benefit (Expense) | 62.4 | (93.5) | (83.6) |
Other Comprehensive Income (Loss), Net of Taxes | (232.4) | 344.4 | 314.3 |
Total Comprehensive Income (Loss) | (352.9) | 754.3 | 845.4 |
No Credit Losses | |||
Changes in Net Unrealized Holding Gains (Losses) on Investment Securities | (284.5) | 369.9 | $ 405.3 |
Credit Losses | |||
Changes in Net Unrealized Holding Gains (Losses) on Investment Securities | $ (2) | $ (2.6) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Investments: | |||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | $ 7,986.9 | $ 7,605.9 | |
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 830.6 | 858.5 | |
Equity Securities at Modified Cost | 32.3 | 40.1 | |
Convertible Securities at Fair Value | 46.4 | 39.9 | |
Short-term Investments at Cost which Approximates Fair Value | 284.1 | 875.4 | |
Other Investments | 925.6 | 779 | |
Total Investments | 10,387.4 | 10,424.1 | |
Cash | 148.2 | 206.1 | |
Receivables from Policyholders (Allowance for Credit Losses: 2021 - $13.6 ; 2020 - $20.9) | 1,418.7 | 1,194.5 | $ 1,117.1 |
Other Receivables | 207.3 | 222.4 | |
Deferred Policy Acquisition Costs | 677.6 | 589.3 | |
Goodwill | 1,312 | 1,114 | |
Current Income Tax Assets | 173.1 | 15.6 | |
Other Assets | 592.2 | 575.9 | |
Total Assets | 14,916.5 | 14,341.9 | |
Insurance Reserves: | |||
Life and Health | 3,540.9 | 3,527.5 | |
Property and Casualty | 2,772.7 | 1,982.5 | |
Total Insurance Reserves | 6,313.6 | 5,510 | |
Unearned Premiums | 1,898.7 | 1,615.1 | |
Policyholder Obligations | 504 | 467 | |
Deferred Income Tax Liabilities | 227 | 285.7 | |
Accrued Expenses and Other Liabilities | 843.6 | 727.9 | |
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2021 - $1,152.1; 2020 - $1,247.8) | 1,121.9 | 1,172.8 | |
Total Liabilities | 10,908.8 | 9,778.5 | |
Shareholders’ Equity: | |||
Common Stock, $0.10 Par Value, 100,000,000 Shares Authorized; 63,684,628 Shares Issued and Outstanding at December 30, 2021 and 65,436,207 Shares Issued and Outstanding at December 31, 2020 | 6.4 | 6.5 | |
Paid-in Capital | 1,790.7 | 1,805.2 | |
Retained Earnings | 1,762.5 | 2,071.2 | |
Accumulated Other Comprehensive Income | 448.1 | 680.5 | |
Total Shareholders’ Equity | 4,007.7 | 4,563.4 | |
Total Liabilities and Shareholders’ Equity | 14,916.5 | 14,341.9 | |
Alternative Energy Partnership Investments | |||
Investments: | |||
Equity Method Investments | 39.6 | 21.3 | |
Equity Method Limited Liability Investments | |||
Investments: | |||
Equity Method Investments | $ 241.9 | $ 204 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | |||
Amortized cost of fixed maturities | $ 7,358.2 | $ 6,692.7 | |
Allowance for credit losses | (7.5) | (3.3) | $ 0 |
Cost of equity securities | 618.7 | 684.1 | |
Premium Receivable, Allowance for Credit Loss | 13.6 | 20.9 | $ 22.3 |
Long-term Debt, Current and Non-current | $ 1,152.1 | $ 1,247.8 | |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | |
Common stock, shares outstanding (in shares) | 63,684,628 | 65,436,207 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows from Operating Activities: | |||
Net Income (Loss) | $ (120.5) | $ 409.9 | $ 531.1 |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | |||
Net Realized Gain on Sale of Investments | (64.8) | (38.1) | (41.9) |
Impairment Losses | 11 | 19.5 | 13.8 |
Depreciation and Amortization of Property, Equipment and Software | 46.3 | 36.2 | 32.8 |
Amortization of Intangible Assets Acquired | 53.5 | 18.8 | 29.7 |
Settlement Costs Related to Defined Benefit Pension Plan | 0 | 64.1 | 0 |
Contribution to Defined Benefit Pension Plan | 0 | 0 | (55.3) |
Loss from Early Extinguishment of Debt | 0 | 0 | 5.8 |
Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments | (33.5) | (4) | 10.9 |
(Increase) Decrease in Value of Equity and Convertible Securities | (114.6) | (72.1) | (138.9) |
Changes in: | |||
Receivables from Policyholders | (75.2) | (77.4) | (110.1) |
Reinsurance Recoverables | 20.6 | 16.8 | 35.6 |
Deferred Policy Acquisition Costs | (88.3) | (52.3) | (66.9) |
Insurance Reserves | 623.1 | 38.3 | 102.3 |
Unearned Premiums | 105.9 | 69.6 | 121.2 |
Income Taxes | (163.1) | 46.5 | 58.8 |
Other Assets and Liabilities | 89.1 | (27.8) | 5.4 |
Net Cash Provided by Operating Activities | 350.7 | 448 | 534.3 |
Cash Flows from Investing Activities: | |||
Proceeds from the Sales, Calls and Maturities of Fixed Maturities | 1,388.9 | 972.4 | 1,229.1 |
Equity Securities | 316.6 | 434.4 | 217.3 |
Real Estate Investments | 8 | 5.4 | 0 |
Mortgage Loans | 70.8 | 25.5 | 17.2 |
Other Investments | 47.5 | 45.2 | 29.5 |
Fixed Maturities | (1,825.4) | (1,293.3) | (1,284.9) |
Equity Securities | (124.3) | (319.1) | (307) |
Real Estate Investments | (5.1) | (0.5) | (1.4) |
Corporate-Owned Life Insurance | (100) | (100) | (150) |
Mortgage Loans | (119.9) | (52.7) | (44.5) |
Other Investments | (104.9) | (43.5) | (73.8) |
Net Sales (Purchases) of Short-term Investments | 687.2 | (390.8) | (176) |
Acquisition of Business, Net of Cash Acquired | (316.6) | 0 | 0 |
Acquisition of Software and Long-lived Assets | (57.8) | (53.4) | (84) |
Other | 16.8 | 13.4 | (4.9) |
Net Cash Used by Investing Activities | (118.2) | (757) | (633.4) |
Cash Flows from Financing Activities: | |||
Repayment of Long-term Debt | (50) | 0 | (185) |
Net Proceeds from Issuance of Long-term Debt | 0 | 395.6 | 49.9 |
Proceeds from Policyholder Contract Obligations | 386.8 | 467 | 615.8 |
Repayment of Policyholder Contract Obligations | (394) | (304.8) | (383.6) |
Proceeds from Issuance of Common Stock, Net of Transaction Costs | 0 | 0 | 127.5 |
Proceeds from Shares Issued under Employee Stock Purchase Plan | 5.4 | 4.4 | 1.6 |
Common Stock Repurchases | (161.7) | (110.4) | 0 |
Dividends and Dividend Equivalents Paid | (80.6) | (78.9) | (67.8) |
Other | 3.7 | 5.4 | 2.4 |
Net Cash Provided (Used) by Financing Activities | (290.4) | 378.3 | 160.8 |
Increase (Decrease) in Cash | (57.9) | 69.3 | 61.7 |
Cash, Beginning of Year | 206.1 | 136.8 | 75.1 |
Cash, End of Year | 148.2 | $ 206.1 | $ 136.8 |
Alternative Energy Partnership Investments | |||
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | |||
Loss from Change in Value of Alternative Energy Partnership Investments | $ 61.2 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Shareholders’ Equity - USD ($) $ in Millions | Total | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Previously Reported | Previously ReportedCommon Stock | Previously ReportedPaid-in Capital | Previously ReportedRetained Earnings | Previously ReportedAccumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2018 | 64,700,000 | |||||||||
Beginning balance at Dec. 31, 2018 | $ 3,050.1 | $ 6.5 | $ 1,666.3 | $ 1,355.5 | $ 21.8 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net Income (Loss) | $ 531.1 | $ 531.1 | ||||||||
Other Comprehensive Income (Loss), Net of Taxes (Note 13) | 314.3 | $ 314.3 | ||||||||
Cash Dividends and Dividend Equivalents to Shareholders | $ (68.4) | (68.4) | ||||||||
Dividends paid to shareholders per share (in dollars per share) | $ 1.03 | |||||||||
Equity-based Compensation Cost (Note 17) | $ 25.3 | $ (1.3) | ||||||||
Equity-based Awards, Net of Shares Exchanged (Note 11) (in shares) | 400,000 | |||||||||
Equity-based Awards, Net of Shares Exchanged (Note 17) | (9.2) | $ 0 | 25.3 | (7.9) | ||||||
Issuances of Common Stock (in shares) | 1,600,000 | |||||||||
Issuances of Common Stock | 127.2 | $ 0.2 | 127 | 0 | ||||||
Shares Issued Under Employee Stock Purchase Plan (Note 14) | 1.9 | 1.9 | ||||||||
Ending balance (in shares) at Dec. 31, 2019 | 66,700,000 | |||||||||
Ending balance at Dec. 31, 2019 | $ 3,972.3 | $ 6.7 | $ 1,819.2 | $ 1,810.3 | $ 336.1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net Income (Loss) | 409.9 | 409.9 | ||||||||
Other Comprehensive Income (Loss), Net of Taxes (Note 13) | 344.4 | 344.4 | ||||||||
Cash Dividends and Dividend Equivalents to Shareholders | $ (79.4) | (79.4) | ||||||||
Dividends paid to shareholders per share (in dollars per share) | $ 1.20 | |||||||||
Repurchases of Common Stock (in shares) | 1,617,000 | |||||||||
Equity-based Compensation Cost (Note 17) | $ 24.9 | 0.9 | ||||||||
Equity-based Awards, Net of Shares Exchanged (Note 11) (in shares) | 300,000 | |||||||||
Equity-based Awards, Net of Shares Exchanged (Note 17) | (2.7) | $ 0 | 24.9 | (3.6) | ||||||
Issuances of Common Stock | (110.4) | $ (0.2) | (44.2) | (66) | ||||||
Stock Repurchased During Period, Shares | (1,600,000) | |||||||||
Shares Issued Under Employee Stock Purchase Plan (Note 14) | 4.4 | 4.4 | ||||||||
Ending balance (in shares) at Dec. 31, 2020 | 65,400,000 | |||||||||
Ending balance at Dec. 31, 2020 | 4,563.4 | $ 6.5 | 1,805.2 | 2,071.2 | 680.5 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net Income (Loss) | (120.5) | (120.5) | ||||||||
Other Comprehensive Income (Loss), Net of Taxes (Note 13) | (232.4) | (232.4) | ||||||||
Cash Dividends and Dividend Equivalents to Shareholders | $ (81) | (81) | ||||||||
Dividends paid to shareholders per share (in dollars per share) | $ 1.24 | |||||||||
Repurchases of Common Stock (in shares) | 2,085,000 | |||||||||
Equity-based Compensation Cost (Note 17) | $ 37 | 37 | ||||||||
Equity-based Awards, Net of Shares Exchanged (Note 11) (in shares) | 300,000 | |||||||||
Equity-based Awards, Net of Shares Exchanged (Note 17) | (2.5) | $ 0.1 | 0.9 | (3.5) | ||||||
Issuances of Common Stock (in shares) | 100,000 | |||||||||
Stock Repurchased During Period, Shares | (2,100,000) | |||||||||
Shares Issued Under Employee Stock Purchase Plan (Note 14) | 5.4 | 5.4 | ||||||||
Ending balance (in shares) at Dec. 31, 2021 | 63,700,000 | |||||||||
Ending balance at Dec. 31, 2021 | 4,007.7 | $ 6.4 | 1,790.7 | 1,762.5 | $ 448.1 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock Repurchased During Period, Value | $ (161.7) | $ (0.2) | $ (57.8) | $ (103.7) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders’ Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid to shareholders per share (in dollars per share) | $ 1.24 | $ 1.20 | $ 1.03 |
Schedule 2 - Parent Company Fin
Schedule 2 - Parent Company Financial Statements - Balance Sheets (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 22, 2020 | Jun. 07, 2019 | |
Amortized cost of fixed maturities | $ 7,358.2 | $ 6,692.7 | ||
Long-term Debt, Current and Non-current | $ 1,152.1 | 1,247.8 | ||
Senior Notes | Senior Notes Payable, 4.35% due 2025 (Fair Value: 2021 – $481.4; 2020 – $499.5) | ||||
Stated interest rate, percentage | 4.35% | |||
Long-term debt, gross | $ 450 | |||
Senior Notes | Senior Notes, 2.400 Percent Due September 30, 2030 | ||||
Stated interest rate, percentage | 2.40% | |||
Long-term debt, gross | 400 | |||
Proceeds from debt, net of issuance costs | 395.8 | |||
Subordinated Debt | Subordinated Debentures due 2054 (Fair Value: 2018 – $151.1) | ||||
Stated interest rate, percentage | 7.375% | |||
Long-term debt, gross | $ 150 | |||
Parent Company | ||||
Amortized cost of fixed maturities | 0.3 | 91.8 | ||
Parent Company | Secured Debt | Term Loan due July 5, 2023 (Fair Value: 2021 – $—; 2020 – $50.0) | ||||
Long-term Debt, Current and Non-current | 0 | 50 | ||
Parent Company | Senior Notes | Senior Notes Payable, 4.35% due 2025 (Fair Value: 2021 – $481.4; 2020 – $499.5) | ||||
Long-term Debt, Current and Non-current | 481.4 | 499.5 | ||
Parent Company | Senior Notes | Senior Notes, 2.400 Percent Due September 30, 2030 | ||||
Long-term Debt, Current and Non-current | $ 387.8 | $ 405.6 |
Basis of Presentation and Signi
Basis of Presentation and Significant Estimates | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Estimates | BASIS OF PRESENTATION AND SIGNIFICANT ESTIMATES The Consolidated Financial Statements included the accounts of Kemper Corporation (“Kemper”) and its subsidiaries which include property and casualty and life and health subsidiaries (collectively referred to herein as the “Company”). The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). All significant intercompany accounts and transactions have been eliminated. Periodically, Kemper may acquire an additional company which then becomes one of the various subsidiaries of Kemper. When an acquisition occurs, Kemper will include the results of the acquired company in the consolidated financial results from the date of its acquisition and forward. During the first quarter of 2021, the Company elected to begin displaying its investments in Alternative Energy Partnerships in the Consolidated Statements of Income and Consolidated Balance Sheets as Change in Value of Alternative Energy Partnership Investments and Alternative Energy Partnership Investments, respectively. These were previously reported in Equity Method Limited Liability Investments on the Consolidated Balance Sheets. Impacts to prior period presentation are not material. Use of Estimates The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Many of these estimates and assumptions are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ materially from those estimates and assumptions. The fair values of the Company’s Investments in Fixed Maturities, Investments in Convertible Securities at Fair Value, Investments in Equity Securities at Fair Value and Debt are estimated using a hierarchical framework which prioritizes and ranks market price observability. The carrying amounts reported in the Consolidated Balance Sheets approximate fair value for Cash, Short-term Investments and certain other assets and other liabilities because of their short-term nature. The actual value at which financial instruments could be sold or settled with a willing buyer or seller may differ from estimated fair values depending on a number of factors, including, but not limited to, current and future economic conditions, the quantity sold or settled, the presence of an active market and the availability of a willing buyer or seller. The Company’s portfolio also includes investments in Alternative Energy Partnerships that are accounted for under the Hypothetical Liquidation at Book Value (“HLBV”) method. Under the HLBV method, the amounts of income and loss attributed to investors reflect changes in the amounts the fund investors would hypothetically receive at each balance sheet date under the liquidation provisions of the contractual agreements of these funds. Attributing income and loss under the HLBV method requires the use of significant assumptions and forecasts to calculate the amounts that fund investors would receive upon a hypothetical liquidation. The process of estimating and establishing reserves for losses and loss adjustment expenses ("LAE") for property and casualty insurance is inherently uncertain, and the actual ultimate net cost of known and unknown claims may vary materially from the estimated amounts reserved. The reserving process is particularly imprecise for claims involving long-tailed exposures, which may not be discovered or reported until years after the insurance policy period has ended. Management considers a variety of factors, including, but not limited to, past claims experience, current claim trends and relevant legal, economic and social conditions, in estimating reserves. A change in any one or more factors is likely to result in the ultimate net claim costs differing from the estimated reserve. Changes in such estimates may be material and would be recognized in the Consolidated Financial Statements when such estimates change. The process of determining whether an asset is impaired or recoverable relies on projections of future cash flows, operating results and market conditions. Projections are inherently uncertain, and, accordingly, actual future cash flows may differ materially from projected cash flows. As a result, the Company’s assessment of the impairment of long-lived assets is susceptible to the risk inherent in making such projections. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Many of these estimates and assumptions are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ materially from those estimates and assumptions. The fair values of the Company’s Investments in Fixed Maturities, Investments in Convertible Securities at Fair Value, Investments in Equity Securities at Fair Value and Debt are estimated using a hierarchical framework which prioritizes and ranks market price observability. The carrying amounts reported in the Consolidated Balance Sheets approximate fair value for Cash, Short-term Investments and certain other assets and other liabilities because of their short-term nature. The actual value at which financial instruments could be sold or settled with a willing buyer or seller may differ from estimated fair values depending on a number of factors, including, but not limited to, current and future economic conditions, the quantity sold or settled, the presence of an active market and the availability of a willing buyer or seller. The Company’s portfolio also includes investments in Alternative Energy Partnerships that are accounted for under the Hypothetical Liquidation at Book Value (“HLBV”) method. Under the HLBV method, the amounts of income and loss attributed to investors reflect changes in the amounts the fund investors would hypothetically receive at each balance sheet date under the liquidation provisions of the contractual agreements of these funds. Attributing income and loss under the HLBV method requires the use of significant assumptions and forecasts to calculate the amounts that fund investors would receive upon a hypothetical liquidation. The process of estimating and establishing reserves for losses and loss adjustment expenses ("LAE") for property and casualty insurance is inherently uncertain, and the actual ultimate net cost of known and unknown claims may vary materially from the estimated amounts reserved. The reserving process is particularly imprecise for claims involving long-tailed exposures, which may not be discovered or reported until years after the insurance policy period has ended. Management considers a variety of factors, including, but not limited to, past claims experience, current claim trends and relevant legal, economic and social conditions, in estimating reserves. A change in any one or more factors is likely to result in the ultimate net claim costs differing from the estimated reserve. Changes in such estimates may be material and would be recognized in the Consolidated Financial Statements when such estimates change. The process of determining whether an asset is impaired or recoverable relies on projections of future cash flows, operating results and market conditions. Projections are inherently uncertain, and, accordingly, actual future cash flows may differ materially from projected cash flows. As a result, the Company’s assessment of the impairment of long-lived assets is susceptible to the risk inherent in making such projections. |
Summary of Accounting Policies
Summary of Accounting Policies and Accounting Changes | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Accounting Policies and Accounting Changes | SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES Investments Investments in Fixed Maturities include bonds, notes and redeemable preferred stocks. Investments in Fixed Maturities are classified as available for sale and reported at fair value. Net Investment Income, including amortization of purchased premiums and accretion of market discounts, on Investments in Fixed Maturities is recognized as interest over the period that it is earned using the effective yield method. Unrealized appreciation or depreciation, net of applicable deferred income taxes, on fixed maturities classified as available for sale is reported in Accumulated Other Comprehensive Income (“AOCI”) included in Shareholders’ Equity. Investments in Convertible Securities include fixed maturities with equity conversion features. The Company has elected the fair value option method of accounting for investments in Convertible Securities and records Convertible Securities at fair value on the Consolidated Balance Sheets. Changes in fair value of Convertible Securities are recorded in the Consolidated Statements of Income during the period such changes occur. Equity investments include common stocks, non-redeemable preferred stocks, exchange traded funds, money market mutual funds and limited liability companies and investment partnerships in which the Company’s interests are deemed minor. Equity investments with readily determinable fair values are recorded as Equity Securities at Fair Value on the Consolidated Balance Sheets. The changes in the fair value of such equity securities are reported in the Consolidated Statements of Income. Dividend income on investments in common and non-redeemable preferred stocks is recognized on the ex-dividend date. The Company holds certain equity investments without readily determinable fair values at cost, less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer on the Consolidated Balance Sheets as Equity Securities at Modified Cost. Changes in the carrying value of Modified Cost investments due to observable price changes are recorded as Income (Loss) from Change in Fair Value of Equity and Convertible Securities. Equity Method Limited Liability Investments include investments in limited liability investment companies and limited partnerships in which the Company’s interests are not deemed minor and are accounted for under the equity method of accounting whereby changes in net asset values are recorded in Net Investment Income in the Consolidated Statements of Income. Certain partnerships for which results are not available on a timely basis are reported on a lag. Investments in Alternative Energy Partnerships are measured using the “HLBV” method of equity method accounting whereby changes in the estimated amount the Company would receive upon the liquidation and distribution of the equity investment’s net assets, are recorded in Net Investment Income. Tax credits allocated from investments in Alternative Energy Partnerships are recognized using the flow-through method, where credits are recorded as a reduction to tax expense in the period earned. Differences in the basis calculated under tax law and U.S. GAAP are recognized using the income statement approach, where basis differences are recorded to Income Tax Expense immediately, rather than deferred as adjustments to the carrying value of the asset. Certain partnerships for which results are not available on a timely basis are reported on a lag. Short-term Investments include certificates of deposit and other fixed maturities that mature within one year from the date of purchase, U.S. Treasury bills, money market mutual funds and overnight interest-bearing accounts. Short-term Investments are reported at cost, which approximates fair value. Other Investments primarily include COLI, loans to policyholders, real estate and mortgage loans. COLI is reported at cash surrender value with changes due to cost of insurance and investment experience reported in Net Investment Income in the Consolidated Statements of Income. Loans to policyholders are carried at unpaid principal balance. Real estate is carried at cost, net of accumulated depreciation. Real estate is depreciated over the estimated useful life of the asset using the straight-line method of depreciation. Real estate is evaluated for impairment when events or circumstances indicate the carrying value may not be recoverable. An impairment loss on real estate is recognized when the carrying value exceeds the sum of undiscounted projected future cash flows as well as the fair value, or, in the case of a property classified as held for sale, when the carrying value exceeds the fair value, net of costs to sell. Mortgage loans are carried at amortized cost, net of a reserve for expected credit losses as applicable. The following accounting policy has been updated effective January 1, 2020 to reflect the Company's adoption of ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments as described above . NOTE 2. SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES (Continued) Investments in Fixed Maturities - Allowance for Expected Credit Losses For fixed maturity investments that the Company intends to sell or for which it is more likely than not that the Company will be required to sell before an anticipated recovery of value, the full amount of the impairment is reported in Impairment Losses. The Company writes down the investment’s amortized cost to its fair value, and will not adjust for any subsequent recoveries. For fixed maturity investments that the Company does not intend to sell or for which it is more likely than not that the Company will not be required to sell before an anticipated recovery of value, the Company will evaluate whether a decline in fair value below the amortized cost basis has occurred from a credit loss or other factors (non-credit related). Considerations in the credit loss assessment include (1) extent to which the fair value has been less than amortized cost, (2) conditions related to the security, an industry, or a geographic area, (3) payment structure of the investment and the likelihood of the issuer's ability to make contractual cash flows, (4) defaults or other collectability concerns related to the issuer, (5) changes in the ratings assigned by a rating agency and (6) other credit enhancements that affect the investment’s expected performance. Any increase or decrease in the expected allowance for credit losses related to investments is recognized in Impairment Losses. The expected allowance for credit losses is limited by the amount that the fair value is less than the amortized cost basis and is adjusted for any additional expected credit losses or subsequent recoveries. The amortized cost basis of the investment is not adjusted for the expected allowance for credit loss. The impairment related to other factors (non-credit related) is reported in Other Comprehensive Income, net of applicable taxes. The Company reports accrued investment income separately for available-for-sale fixed maturity securities and has elected not to measure an allowance for credit losses on accrued investment income. Accrued investment income is written off through Impairment Losses at the time the issuer of the bond defaults or is expected to default on interest payments. Fair Value Measurements The Company uses a hierarchical framework which prioritizes and ranks the market observability of inputs used in fair value measurements. Market price observability is affected by a number of factors, including the type of asset or liability and the characteristics specific to the asset or liability being measured. Assets and liabilities with readily available, active, quoted market prices or for which fair value can be measured from actively quoted prices generally are deemed to have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. The Company classifies the inputs used to measure fair value into one of three levels as follows: • Level 1 — Quoted prices in an active market for identical assets or liabilities; • Level 2 — Observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and • Level 3 — Significant unobservable inputs for the asset or liability being measured. Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company’s market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability may fall into different levels of the fair value hierarchy. In those cases, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level of input that is significant to the entire measurement. Such determination requires significant management judgment. Deferred Policy Acquisition Costs Costs directly associated with the successful acquisition of business, principally commissions and certain premium taxes and policy issuance costs, are deferred. Costs deferred on property and casualty insurance contracts and short duration health insurance contracts are amortized over the period in which premiums are earned. Costs deferred on traditional life insurance products and other long-duration insurance contracts are primarily amortized over the anticipated premium-paying period of the related policies in proportion to the ratio of the annual premiums to the total premiums anticipated, which is estimated using the same assumptions used in calculating policy reserves. NOTE 2. SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES (Continued) Goodwill The cost of an acquired entity over the fair value of net assets acquired is reported as Goodwill. Goodwill is not amortized, but rather is tested for recoverability annually or when certain triggering events require testing. Insurance Reserves Reserves for losses and LAE on property and casualty insurance coverage and health insurance coverage represent the estimated claim cost and loss adjustment expense necessary to cover the ultimate net cost of investigating and settling all losses incurred and unpaid at the end of any given accounting period. Such estimates are based on individual case estimates for reported claims and estimates for incurred but not reported (“IBNR”) losses, including expected development on reported claims. These estimates are adjusted in the aggregate for ultimate loss expectations based on historical experience patterns and current economic trends, with any change in the estimated ultimate liabilities being reported in the Consolidated Statements of Income in the period of change. Changes in such estimates may be material. For traditional life insurance products, the reserves for future policy benefits are estimated on the net level premium method using assumptions as of the issue date for mortality, interest, policy lapses and expenses, including provisions for adverse deviations. These assumptions vary by such characteristics as plan, age at issue and policy duration. Mortality assumptions are based on the Company’s historical experience and industry standards. Interest rate assumptions principally range from 3% to 7%. Lapse rate assumptions are based on actual and industry experience. Insurance Reserves for life insurance products are comprised of reserves for future policy benefits plus an estimate of the Company’s liability for unpaid life insurance claims and claims adjustment expenses, which includes an estimate for IBNR life insurance claims. Prior to 2016, except when required by applicable law, the Company did not utilize the database of reported deaths maintained by the Social Security Administration or any other comparable database (a “Death Master File” or “DMF”) in its operations, including to determine its IBNR liability for life insurance products. Instead of using such a database, the Company calculated its IBNR liability for life insurance products using Company-specific historical information, which included analyzing average paid claims and the average lag between date of death and the date reported to the Company for claims for which proof of death had been provided. In 2016, the Company initiated a voluntary enhancement of its claims handling procedures for its life insurance policies. The Company is now utilizing a DMF to identify potential situations where the Company has yet to be notified of an insured’s death and, as appropriate, initiating an outreach process to identify and contact beneficiaries and settle claims. Policyholder Obligations Policyholder Obligations include Federal Home Loan Bank (“FHLB”) funding agreements used for spread lending purposes and universal life-type policyholder contracts and are stated at account balances. The following accounting policy has been updated effective January 1, 2020 to reflect the Company's adoption of ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments as described below . Receivables from Policyholders - Allowance for Expected Credit Losses The allowance for credit losses is a valuation account that is deducted from the receivables from policyholders based on the net amount expected to be collected on the insurance contract. Receivables from policyholders are charged off against the allowance when management believes the uncollectability of the receivable is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management estimates the allowance using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience on the receivables from policyholders provide the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current environmental conditions, primarily unemployment rates that could impact an insured’s ability to pay premiums. NOTE 2. SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES (Continued) Other Receivables Other Receivables primarily include reinsurance recoverables and accrued investment income. Reinsurance Recoverables were $41.9 million and $50.1 million at December 31, 2021 and 2020, respectively. Accrued Investment Income was $79.6 million and $77.1 million at December 31, 2021 and 2020, respectively. Other Assets Other Assets primarily include property and equipment, internal use software, right-of-use assets, insurance licenses acquired in business combinations, the value of other intangible assets acquired and prepaid expenses. Property and equipment is depreciated over the useful lives of the assets, generally using the straight-line or double declining balance methods of depreciation depending on the asset involved. Internal use software is amortized over the useful life of the asset using the straight-line method of amortization and is evaluated for recoverability upon identification of impairment indications. Insurance licenses acquired in business combinations and other indefinite life intangibles are not amortized, but rather tested periodically for recoverability. The Company accounts for the value of business acquired (“VOBA”) based on actuarial estimates of the present value of future cash flows embedded in insurance in force as of an acquisition date. VOBA was $19.0 million and $20.3 million at December 31, 2021 and 2020, respectively. VOBA is amortized over the expected profit emergence period of the policies in force as of the acquisition date. The Company evaluates VOBA assets for recoverability annually. The Company accounts for the future profits embedded in customer relationships (“Customer Relationships”) acquired based on the present value of estimated future cash flows from such relationships. Customer Relationships was $5.7 million and $3.4 million at December 31, 2021 and 2020, respectively, and are amortized on a straight-line basis over the estimated useful life of the relationship. Customer Relationships are tested for recoverability using undiscounted projections of future cash flows and written down to estimated fair value if the carrying value exceeds the sum of such projections of undiscounted cash flows. The Company accounts for the present value of the future profits embedded in broker or agent relationships acquired (“Agent Relationships”) based on the present value of estimated future cash flows from such acquired relationships or, using the cost recovery method, which estimates the ultimate cost to build a comparable distribution network. Agent Relationships was $58.0 million and $57.6 million at December 31, 2021 and 2020, respectively, and are amortized on a straight-line basis over the estimated useful life of the relationship. Agent Relationships are tested for recoverability using undiscounted projections of future cash flows and written down to estimated fair value if the carrying value exceeds the sum of such projections of undiscounted cash flows. Accrued Expenses and Other Liabilities Accrued Expenses and Other Liabilities primarily include drafts payable, accrued salaries and commissions, pension benefits, postretirement medical benefits, lease liability and accrued taxes, licenses and fees. Recognition of Earned Premiums and Related Expenses Property and casualty insurance and short duration health insurance premiums are deferred when written and recognized and earned ratably over the periods to which the premiums relate. Unearned Premiums represent the portion of the premiums written related to the unexpired portion of policies in force which has been deferred and is reported as a liability. The Company performs a premium deficiency analysis typically at a segment level, namely Specialty Property & Casualty Insurance and Preferred Property & Casualty Insurance, which is consistent with the manner in which the Company acquires and services policies and measures profitability. Anticipated investment income is excluded from such analysis. A premium deficiency is recognized when the sum of expected claim costs, claim adjustment expenses, unamortized deferred policy acquisition costs and maintenance costs exceeds the related unearned premiums by first reducing related deferred policy acquisition costs to an amount, but not below zero, at which the premium deficiency would not exist. If a premium deficiency remains after first reducing deferred policy acquisition costs, a premium deficiency reserve is established and reported as a liability in the Company’s financial statements. Traditional life insurance premiums are recognized as revenue when due. Policyholders’ benefits are associated with related premiums to result in recognition of profits over the periods for which the benefits are provided using the net level premium method. NOTE 2. SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES (Continued) Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses include provisions for future policy benefits under life and certain accident and health insurance contracts and provisions for reported claims, estimates for IBNR claims and loss adjustment expenses. Benefit payments in excess of policy account balances are expensed. Reinsurance In the normal course of business, Kemper’s insurance subsidiaries reinsure certain risks above certain retention levels with other insurance enterprises. These reinsurance agreements do not relieve Kemper’s insurance subsidiaries of their legal obligations to the policyholder. Amounts recoverable from reinsurers are included in Other Receivables. Gains related to long-duration reinsurance contracts are deferred and amortized over the life of the underlying reinsured policies. Losses related to long-duration reinsurance contracts are recognized immediately. Any gain or loss associated with reinsurance agreements for which Kemper’s insurance subsidiaries have been legally relieved of their obligations to the policyholder is recognized in the period of relief. Income Taxes Deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance, if any, is maintained for the portion of deferred income tax assets that the Company does not expect to recover. Increases, if any, in the valuation allowance for deferred income tax assets are recognized as income tax expense. Decreases, if any, in the valuation allowance for deferred income tax assets are generally recognized as income tax benefit. The effect on deferred income tax assets and liabilities of a change in tax law including a change in tax rates is recognized in income from operations in the period in which the change is enacted. The Company reports a liability for unrecognized tax benefits, if any, resulting from uncertain tax positions taken, or expected to be taken, in an income tax return, if any. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. Adoption of New Accounting Guidance Guidance Adopted in 2021 In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . ASU 2019-12 is intended to simplify accounting for income taxes by eliminating certain exceptions to the guidance in ASC Topic 740, Income Taxes , related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. Further, ASU 2019-12 clarifies that single-member limited liability companies and similar disregarded entities that are not subject to income tax are not required to recognize an allocation of consolidated income tax expense in their separate financial statements, but they could elect to do so. ASU 2019-12 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods. The adoption of ASU 2019-12 did not have a material effect on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the FASB Emerging Issues) , which clarifies the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. ASU 2020-01 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods. The adoption of ASU 2020-01 did not have a material effect on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain NOTE 2. SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES (Continued) criteria are met. The guidance in ASU 2020-04, if elected, shall apply to contract modifications if the terms that are modified directly replace, or have the potential to replace, a reference rate with another interest rate index. If other terms are contemporaneously modified in a manner that changes, or has the potential to change, the amount or timing of contractual cash flows, the guidance in ASU 2020-04 shall apply only if those modifications are related to the replacement of a reference rate. ASU 2020-04 is effective for contract modifications made between March 12, 2020 through December 31, 2022. The adoption of ASU 2020-04 did not have a material effect on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The Company will continue to evaluate the impact of this guidance on its financial statements. In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs , which clarifies that an entity should re-evaluate whether a callable debt security is within the scope of paragraph 310-20-35-33 for each reporting period. ASU 2020-08 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods. The adoption of ASU 2020-08 did not have a material effect on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The Company has adopted all other recently issued accounting pronouncements with effective dates prior to January 1, 2022. There were no adoptions of such accounting pronouncements during the year ended December 31, 2021 that had a material impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. Guidance Not Yet Adopted In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to Accounting for Long-Duration Contracts . ASU 2018-12 amends the accounting model for certain long-duration insurance contracts and requires the insurer to provide additional disclosures in annual and interim reporting periods. In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of ASU 2018-12 by one year for public business entities. ASU 2018-12 is now effective for fiscal years beginning after December 15, 2022, and interim periods within those annual periods. The amendments in ASU 2018-12 (i) require cash flow assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited pay long duration contracts to be updated at least annually with the recognition and remeasurement recorded in net income, require the discount rate used in measuring the liability to be an upper-medium grade fixed-income instrument yield, which is to be updated at each reporting period, and recognized in other comprehensive income, (ii) simplify the amortization of deferred acquisition costs to be amortized on a constant level basis over the expected term of the contract, (iii) require all market risk benefits to be measured at fair value, and (iv) enhance certain presentation and disclosure requirements which include disaggregated rollforwards for liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, deferred acquisition costs, and information about significant inputs, judgments and methods used in the measurement. The Company plans to adopt using the modified retrospective transition method and is currently evaluating the impact of this guidance on its financial statements. |
Income from Continuing Operatio
Income from Continuing Operations Per Unrestricted Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Income from Continuing Operations Per Unrestricted Share | INCOME PER UNRESTRICTED SHARE The Company’s awards of deferred stock units granted to Kemper’s non-employee directors prior to 2019 contain rights to receive non-forfeitable dividend equivalents and participate in the undistributed earnings with common shareholders. Accordingly, the Company is required to apply the two-class method of computing basic and diluted earnings per share. A reconciliation of the numerator and denominator used in the calculation of Basic Net Income (Loss) Per Unrestricted Share and Diluted Net Income (Loss) Per Unrestricted Share for the years ended December 31, 2021, 2020 and 2019 is presented below. 2021 2020 2019 DOLLARS IN MILLIONS Net Income (Loss) $ (120.5) $ 409.9 $ 531.1 Less: Net Income Attributed to Participating Awards — 0.4 1.7 Net Income (Loss) Attributed to Unrestricted Shares (120.5) 409.5 529.4 Dilutive Effect on Income of Equity-based Compensation Equivalent Shares — — — Diluted Net Income (Loss) Attributed to Unrestricted Shares $ (120.5) $ 409.5 $ 529.4 SHARES IN THOUSANDS Weighted-average Unrestricted Shares Outstanding 64,264.4 65,636.1 65,880.9 Equity-based Compensation Equivalent Shares — 1,093.7 667.2 Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution 64,264.4 66,729.8 66,548.1 PER UNRESTRICTED SHARE IN WHOLE DOLLARS Basic Net Income (Loss) Per Unrestricted Share $ (1.87) $ 6.24 $ 8.04 Diluted Net Income (Loss) Per Unrestricted Share $ (1.87) $ 6.14 $ 7.96 The number of shares of Kemper common stock that were excluded from the calculations of Equity-based Compensation Equivalent Shares and Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution for the years ended December 31, 2021, 2020 and 2019, because the effect of inclusion would be anti-dilutive, is presented below. SHARES IN THOUSANDS 2021 2020 2019 Equity-based Compensation Equivalent Shares 2,180.1 874.5 556.4 Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution 2,180.1 874.5 556.4 |
Acquisition of Business
Acquisition of Business | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisition of Business | ACQUISITION OF BUSINESS Acquisition of American Access Casualty Corporation On April 1, 2021 Kemper completed the acquisition of American Access Casualty Company and its related captive insurance agency, Newins Insurance Agency Holdings, LLC, and its subsidiaries (collectively “AAC”). Pursuant to the agreement dated November 22, 2020, Kemper paid AAC’s equity holders total cash consideration of approximately $370.9 million. AAC, headquartered in Downers Grove, Illinois, provides specialty private passenger auto insurance in Arizona, Illinois, Indiana, Nevada, and Texas. AAC wrote over $350.0 million of direct premiums in 2020 through a network of approximately 600 independent agents and its captive agency force. The Company is in the process of finalizing the estimation of the fair value of acquired assets and assumed liabilities. Accordingly, the Company’s preliminary estimates and the allocation of the purchase price to the assets acquired and liabilities assumed may change as the Company completes the process, which would also likely impact the Company’s allocation of the purchase price to Goodwill. In accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations , changes if any, to the preliminary estimates and allocation will be reported in the Company’s financial statements as an adjustment to the opening balance sheet. NOTE 4 - ACQUISITION OF BUSINESS (Continued) Based on the Company’s allocation of the purchase price, the fair value of the assets acquired and liabilities assumed were: (Dollars in Millions) Fixed Maturities at Fair Value $ 151.2 Equity Securities at Fair Value 82.4 Short-term Investments at Cost which Approximates Fair Value 100.1 Cash 54.3 Receivables from Policyholders 148.9 Other Receivables 2.0 Goodwill 198.0 Current Income Tax Assets 0.3 Other Assets 81.4 Property and Casualty Insurance Reserves (211.1) Unearned Premiums (177.8) Deferred Income Tax Liabilities (7.8) Accrued Expenses and Other Liabilities (51.0) Total Purchase Price $ 370.9 The factors that contributed to the recognition of goodwill include synergies from economies of scale within the underwriting and claims operations, acquiring a talented workforce and cost savings opportunities. Intangible Assets Intangible assets consist of capitalized costs, primarily of the estimated fair value of distribution, customer relationships, policies in force, trade names and licenses, and technology. The estimated useful lives of these assets range from 1 to 8 years. These assets are reported in Other Assets in the Consolidated Balance Sheets. Identifiable definite and indefinite lived intangible assets acquired consisted of the following: (Dollars in Millions) Definite Life Intangibles Value of Business Acquired $ 42.9 Customer Relationships 4.8 Agent Relationships 7.2 Internal-Use Software 6.5 Trade Names 1.8 Indefinite Life Intangible Assets Insurance Licenses $ 2.5 NOTE 4 - ACQUISITION OF BUSINESS (Continued) Unaudited Pro Forma Results The following unaudited pro forma information presents the Company’s results of operations as if the acquisition of AAC occurred on January 1, 2020. The adjustments to arrive at the pro forma information below included adjustments for the lost investment income on the cash used to fund the acquisition, amortization of the acquired intangible assets and the exclusion of certain acquisition related costs considered to be non-recurring in nature. Year Ended (Dollars in millions) Dec 31, Dec 31, Total Revenues $ 5,884.2 $ 5,585.7 Total Expenses 6,109.5 5,040.1 Income (Loss) before Income Taxes (225.3) 545.6 Net Income (Loss) $ (105.1) $ 443.0 The pro forma information is not necessarily indicative of the consolidated results of operations that might have been achieved had the transaction in fact occurred at the beginning of the periods presented, nor does the information project results for any future period. The pro forma information does not include the impact of any future cost savings or synergies that may be achieved as a result of the acquisition. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS The Company is engaged, through its subsidiaries, in the property and casualty insurance and life and health insurance businesses. The Company conducts its operations through three operating segments: Specialty Property & Casualty Insurance, Preferred Property & Casualty Insurance and Life & Health Insurance. The Specialty Property & Casualty Insurance segment’s principal products are specialty automobile insurance and commercial automobile insurance. The Preferred Property & Casualty Insurance segment’s principal products are preferred automobile insurance, homeowners insurance and other personal insurance. These products are distributed primarily through independent agents and brokers. The Life & Health Insurance segment’s principal products are individual life, accident, supplemental health and property insurance. These products are distributed by career agents employed by the Company and independent agents and brokers. The Company’s earned premiums are derived in the United States. The accounting policies of the segments are the same as those described in Note 2, “Summary of Accounting Policies and Accounting Changes,” to the Consolidated Financial Statements. Capital expenditures for long-lived assets by operating segment are immaterial. It is the Company’s management practice to allocate certain corporate expenses, primarily compensation costs for corporate employees and related facility costs, included in Interest and Other Expenses in the Consolidated Statements of Income to its insurance operations. The amount of such allocated corporate expenses was $121.9 million, $109.5 million and $103.9 million for the years ended December 31, 2021, 2020 and 2019, respectively. The Company does not allocate Income (Loss) from Change in Fair Value of Equity and Convertible Securities, Net Realized Gains on Sales of Investments, Impairment Losses, Acquisition Related Transaction, Integration and Other Costs, Loss from Early Extinguishment of Debt, interest expense on debt or postretirement benefit plans, and actuarial gains and losses on its postretirement benefit plans to its operating segments. Segment Assets at December 31, 2021 and 2020 were: DOLLARS IN MILLIONS 2021 2020 Specialty Property & Casualty Insurance $ 5,936.5 $ 4,897.1 Preferred Property & Casualty Insurance 1,230.1 1,711.2 Life & Health Insurance 6,062.6 6,457.0 Corporate and Other, Net 1,687.3 1,276.6 Total Assets $ 14,916.5 $ 14,341.9 NOTE 5. BUSINESS SEGMENTS (Continued) Earned Premiums by product line for the years ended December 31, 2021, 2020 and 2019 were: DOLLARS IN MILLIONS 2021 2020 2019 Specialty Property & Casualty Insurance: Specialty Automobile $ 3,533.7 $ 3,031.3 $ 2,825.6 Commercial Automobile 414.8 304.0 252.8 Preferred Property & Casualty Insurance: Preferred Automobile 410.5 431.7 470.2 Homeowners 207.3 220.7 241.3 Other Personal Lines 33.9 35.8 38.8 Life & Health Insurance: Life 401.7 385.7 384.6 Accident & Health 189.9 199.3 190.9 Property 61.9 63.7 68.2 Total Earned Premiums $ 5,253.7 $ 4,672.2 $ 4,472.4 Segment Revenues, including a reconciliation to Total Revenues, for the years ended December 31, 2021, 2020 and 2019 were: DOLLARS IN MILLIONS 2021 2020 2019 Segment Revenues: Specialty Property & Casualty Insurance: Earned Premiums $ 3,948.5 $ 3,335.3 $ 3,078.4 Net Investment Income 152.5 114.1 107.5 Change in Value of Alternative Energy Partnership Investments (29.0) — — Other Income 4.1 1.8 7.0 Total Specialty Property & Casualty Insurance 4,076.1 3,451.2 3,192.9 Preferred Property & Casualty Insurance: Earned Premiums 651.7 688.2 750.3 Net Investment Income 68.6 37.7 44.1 Change in Value of Alternative Energy Partnership Investments (16.3) — — Other Income — 0.1 — Total Preferred Property & Casualty Insurance 704.0 726.0 794.4 Life & Health Insurance: Earned Premiums 653.5 648.7 643.7 Net Investment Income 202.7 198.8 206.4 Change in Value of Alternative Energy Partnership Investments (15.8) — — Other Income (1.3) 0.6 8.5 Total Life & Health Insurance 839.1 848.1 858.6 Total Segment Revenues 5,619.2 5,025.3 4,845.9 Income (Loss) from Change in Fair Value of Equity and Convertible Securities 114.6 72.1 138.9 Net Realized Gains on the Sales of Investments 64.8 38.1 41.9 Net Impairment Losses Recognized in Earnings (11.0) (19.5) (13.8) Other 5.4 89.7 26.3 Total Revenues $ 5,793.0 $ 5,205.7 $ 5,039.2 NOTE 5. BUSINESS SEGMENTS (Continued) Segment Operating Income (Loss), including a reconciliation to Income (Loss) before Income Taxes, for the years ended December 31, 2021, 2020 and 2019 was: DOLLARS IN MILLIONS 2021 2020 2019 Segment Operating Income (Loss): Specialty Property & Casualty Insurance $ (292.1) $ 420.9 $ 355.9 Preferred Property & Casualty Insurance (39.8) 1.8 52.3 Life & Health Insurance 10.5 71.2 121.9 Total Segment Operating Income (Loss) (321.4) 493.9 530.1 Corporate and Other Operating Income (Loss) From: Partial Satisfaction of Judgment — 89.4 20.1 Other (48.4) (36.5) (31.4) Corporate and Other Operating Income (Loss) (48.4) 52.9 (11.3) Adjusted Consolidated Operating Income (Loss) (369.8) 546.8 518.8 Income (Loss) from Change in Fair Value of Equity and Convertible Securities 114.6 72.1 138.9 Net Realized Gains on Sales of Investments 64.8 38.1 41.9 Impairment Losses (11.0) (19.5) (13.8) Acquisition Related Transaction, Integration and Other Costs (43.9) (63.3) (18.4) Pension Obligation Settlement Costs — (64.1) — Loss from Early Extinguishment of Debt — — (5.8) Income (loss) before Income Taxes $ (245.3) $ 510.1 $ 661.6 Segment Net Operating Income (Loss), including a reconciliation to Net Income (Loss), for the years ended December 31, 2021, 2020 and 2019 was: DOLLARS IN MILLIONS 2021 2020 2019 Segment Net Operating Income (Loss): Specialty Property & Casualty Insurance $ (196.1) $ 337.9 $ 283.1 Preferred Property & Casualty Insurance (12.5) 3.5 41.9 Life & Health Insurance 28.2 60.0 98.7 Total Segment Net Operating Income (Loss) (180.4) 401.4 423.7 Corporate and Other Net Operating Income (Loss) From: Partial Satisfaction of Judgment — 70.6 15.9 Other (38.4) (33.2) (21.3) Total Corporate and Other Net Operating Income (Loss) (38.4) 37.4 (5.4) Adjusted Consolidated Net Operating Income (Loss) (218.8) 438.8 418.3 Net Income (Loss) From: Change in Fair Value of Equity and Convertible Securities 90.5 57.0 109.7 Net Realized Gains on Sales of Investments 51.2 30.1 33.1 Impairment Losses (8.7) (15.4) (10.9) Acquisition Related Transaction, Integration and Other Costs (34.7) (50.0) (14.5) Pension Obligation Settlement Costs — (50.6) — Loss from Early Extinguishment of Debt — — (4.6) Net Income (Loss) $ (120.5) $ 409.9 $ 531.1 |
Property and Casualty Insurance
Property and Casualty Insurance Reserves | 12 Months Ended |
Dec. 31, 2021 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Property and Casualty Insurance Reserves | PROPERTY AND CASUALTY INSURANCE RESERVES The Company’s Property and Casualty Insurance Reserves are reported using the Company’s estimate of its ultimate liability for losses and LAE for claims that occurred prior to the end of any given accounting period but have not yet been paid. Such estimates are based on individual case estimates for reported claims and estimates for IBNR losses, including expected development on reported claims. Property and Casualty Insurance Reserves are recorded net of any expected salvage and subrogation recoveries. The determination of individual case reserves differs by line of business. For personal automobile insurance and commercial automobile insurance, case reserves are set primarily using statistical reserves that are based on studies of historical average paid amounts by state, coverage and product. However, when such reserves exceed certain thresholds they are set manually by adjusters. For preferred homeowners insurance and other personal insurance, case reserves are set by adjusters and are based on the adjusters’ estimates of the amount for which the claims will ultimately be paid. The Company’s actuaries estimate ultimate losses and LAE and, therefore, reserves at least quarterly for most product lines and/or coverage levels using accident quarters or years spanning 10 or more years, depending on the size of the product line and/or coverage level or emerging issues relating to them. The Company’s actuaries use a variety of generally accepted actuarial loss reserving estimation methodologies to estimate the ultimate losses and LAE for the current accident quarter or year and re-estimate the ultimate losses and LAE for previous accident quarters or years to determine if changes in the previous estimates of the ultimate losses and LAE are indicated by the most recent data. The key assumption in these estimation methodologies is that patterns observed in prior periods are indicative of how losses and LAE are expected to develop in the future and that such historical data can be used to predict and estimate ultimate losses and LAE. However, changes in the Company’s business processes, by their very nature, are likely to affect the development patterns, which generally results in the historical development factors becoming less reliable over time in predicting how losses and LAE will ultimately develop. The Company’s actuaries use professional judgment in determining how much weight to place on the development patterns based on the older historical data and how much weight to place on the development patterns based on more recent data. In some cases, the Company’s actuaries make adjustments to the loss reserving estimation methodologies to estimate ultimate losses and LAE. The Company’s actuaries’ quarterly or yearly selections are summed by product and/or coverage levels to create the actuarial indication of the ultimate losses and LAE. Paid amounts are then subtracted from the ultimates to compute the reserves for property and casualty insurance losses and LAE. These results are reviewed by the Company’s actuaries and corporate management who apply their collective judgment and determine the appropriate estimated level of reserves to record. Numerous factors are considered in this determination process, including, but not limited to, the assessed reliability of key loss trends and assumptions that may be significantly influencing the current actuarial indications, changes in claim handling practices or other changes that affect the timing of payment or development patterns, changes in the mix of business, the maturity of the accident year, pertinent trends observed over the recent past, the level of volatility within a particular line of business, the improvement or deterioration of actuarial indications in the current period as compared to prior periods, and the amount of reserves related to third party pools for which the Company has limited access to the underlying data and, accordingly, relies on calculations provided by such pools. The Company’s goal is to ensure that its total reserves for property and casualty insurance losses and LAE are adequate to cover all costs, while sustaining minimal variation from the time reserves for losses and LAE are initially estimated until losses and LAE are fully developed. Changes in the Company’s estimates of these losses and LAE over time, also referred to as “development,” will occur and may be material. The following tables contain information about incurred and paid claims development as of and for the year ended December 31, 2021, net of reinsurance and indemnification, as well as cumulative claim frequency and the total of IBNR liabilities, including expected development on reported claims included within the net incurred losses and allocated LAE amounts. The tables are grouped by major product line and, if relevant, coverage. The information about incurred and paid claims development for the years ended December 31, 2017 through 2020 is presented as supplementary information and is unaudited. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Specialty Personal Automobile Insurance—Liability 1 DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2021 Incurred Losses and Allocated LAE, Net of Reinsurance Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2017 2018 2019 2020 2021 2017 $ 1,170.2 $ 1,175.6 $ 1,185.6 $ 1,181.6 $ 1,197.4 $ 15.1 458,261 2018 1,324.0 1,310.5 1,307.8 1,314.5 24.0 508,623 2019 1,461.5 1,494.7 1,506.1 54.8 546,521 2020 1,401.2 1,406.4 111.6 474,346 2021 1,856.9 607.1 544,207 Total 7,281.3 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Accident Year 2017 2018 2019 2020 2021 2017 $ 498.3 $ 945.5 $ 1,092.9 $ 1,141.9 $ 1,169.3 2018 541.3 1,050.8 1,211.8 1,265.5 2019 567.3 1,200.7 1,382.0 2020 555.2 1,107.6 2021 657.1 Total 5,581.5 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2017, Net of Reinsurance 22.5 Loss and Allocated LAE Reserves, Net of Reinsurance $ 1,722.3 1 Tables retrospectively include Infinity and AAC’s historical incurred and paid accident year claim information for all periods presented. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Specialty Personal Automobile Insurance—Physical Damage 1 DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2021 Incurred Losses and Allocated LAE, Net of Reinsurance Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2017 2018 2019 2020 2021 2017 $ 533.1 $ 522.5 $ 522.0 $ 522.5 $ 522.4 $ (0.1) 296,392 2018 558.9 548.6 548.0 547.8 (0.6) 309,577 2019 624.3 630.3 629.6 (10.5) 324,321 2020 650.5 659.5 (6.4) 296,167 2021 958.0 2.1 348,244 Total 3,317.3 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Accident Year 2017 2018 2019 2020 2021 2017 $ 493.2 $ 525.6 $ 523.0 $ 522.7 $ 522.5 2018 509.4 553.1 549.0 548.3 2019 570.8 634.8 630.6 2020 585.5 663.8 2021 890.1 Total 3,255.3 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2017, Net of Reinsurance 1.6 Loss and Allocated LAE Reserves, Net of Reinsurance $ 63.6 1 Tables retrospectively include Infinity and AAC’s historical incurred and paid accident year claim information for all periods presented. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Commercial Automobile Insurance—Liability 1 DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2021 Incurred Losses and Allocated LAE, Net of Reinsurance Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2017 2018 2019 2020 2021 2017 $ 120.5 $ 120.0 $ 118.3 $ 114.3 $ 114.4 $ 2.3 19,967 2018 123.2 116.5 113.0 110.9 4.7 20,195 2019 128.4 126.1 126.6 11.5 19,572 2020 140.5 152.0 25.5 19,354 2021 225.6 99.1 24,690 Total 729.5 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance and Indemnification For the Years Ended December 31, Accident Year 2017 2018 2019 2020 2021 2017 $ 36.3 $ 72.3 $ 90.7 $ 101.7 $ 107.2 2018 36.8 68.8 88.1 98.1 2019 32.4 75.7 99.5 2020 37.0 87.6 2021 50.8 Total 443.2 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2017, Net of Reinsurance 14.1 Loss and Allocated LAE Reserves, Net of Reinsurance $ 300.4 1 Tables retrospectively include Infinity’s historical incurred and paid accident year claim information for all periods presented. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Commercial Automobile Insurance—Physical Damage 1 DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2021 Incurred Losses and Allocated LAE, Net of Reinsurance Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2017 2018 2019 2020 2021 2017 $ 24.2 $ 23.5 $ 23.5 $ 23.4 $ 23.4 $ — 9,792 2018 23.6 23.5 23.6 23.6 0.1 9,569 2019 26.0 27.1 26.9 (0.5) 9,305 2020 31.9 32.2 — 11,011 2021 52.4 0.4 16,494 Total 158.5 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance and Indemnification For the Years Ended December 31, Accident Year 2017 2018 2019 2020 2021 2017 $ 22.2 $ 23.5 $ 23.4 $ 23.4 $ 23.4 2018 21.7 23.6 23.6 23.6 2019 23.0 26.9 26.8 2020 26.2 31.9 2021 43.3 Total 149.0 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2017, Net of Reinsurance 0.4 Loss and Allocated LAE Reserves, Net of Reinsurance $ 9.9 1 Tables retrospectively include Infinity’s historical incurred and paid accident year claim information for all periods presented. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Preferred Personal Automobile Insurance—Liability DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2021 Incurred Losses and Allocated LAE, Net of Reinsurance Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2017 2018 2019 2020 2021 2017 $ 164.4 $ 157.8 $ 155.8 $ 158.2 $ 160.0 $ 0.6 33,734 2018 157.6 156.3 161.7 163.4 1.7 31,922 2019 172.2 195.5 200.0 4.9 34,633 2020 148.9 153.6 16.1 24,438 2021 176.9 54.1 25,149 Total 853.9 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Accident Year 2017 2018 2019 2020 2021 2017 $ 59.2 $ 108.9 $ 134.1 $ 143.2 $ 150.6 2018 55.5 107.6 132.7 147.4 2019 62.7 127.9 160.8 2020 44.4 92.8 2021 50.3 Total 601.9 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2017, Net of Reinsurance 10.2 Loss and Allocated LAE Reserves, Net of Reinsurance $ 262.2 NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Preferred Personal Automobile Insurance—Physical Damage DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2021 Incurred Losses and Allocated LAE, Net of Reinsurance Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2017 2018 2019 2020 2021 2017 $ 109.2 $ 105.8 $ 105.2 $ 105.1 $ 105.2 $ — 62,685 2018 113.9 111.0 110.4 110.4 0.1 61,921 2019 126.4 125.8 125.9 0.3 67,181 2020 96.1 98.0 (0.5) 47,603 2021 118.5 (0.7) 50,533 Total 558.0 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Accident Year 2017 2018 2019 2020 2021 2017 $ 104.4 $ 106.1 $ 105.2 $ 105.1 $ 105.2 2018 107.2 111.4 110.4 110.3 2019 120.7 126.5 125.6 2020 90.9 98.4 2021 113.1 Total 552.6 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2017, Net of Reinsurance — Loss and Allocated LAE Reserves, Net of Reinsurance $ 5.4 NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Homeowners Insurance DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2021 Incurred Losses and Allocated LAE, Net of Reinsurance Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2017 2018 2019 2020 2021 2017 $ 261.2 $ 259.5 $ 245.2 $ 243.8 $ 243.9 $ 1.3 19,619 2018 185.9 183.0 183.6 185.3 4.1 16,212 2019 162.9 161.8 163.1 2.5 14,670 2020 157.0 149.8 4.3 13,887 2021 149.9 19.1 12,422 Total 892.0 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Accident Year 2017 2018 2019 2020 2021 2017 $ 165.8 $ 242.5 $ 235.7 $ 239.5 $ 241.7 2018 127.4 180.2 180.0 183.1 2019 111.1 150.4 157.7 2020 94.6 130.8 2021 100.6 Total 813.9 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2017, Net of Reinsurance 3.3 Loss and Allocated LAE Reserves, Net of Reinsurance $ 81.4 The claim counts in the preceding tables are cumulative reported claim counts as of December 31, 2021 and are equal to the sum of cumulative open and cumulative closed claims, including claims closed without payment. Certain product lines, particularly the Company’s specialty personal automobile insurance, tend to have a higher percentage of claims closed without payment. The Company's claims associated with automobile insurance are counted at the feature level. As such, each claimant and each coverage is counted separately. For example, if for one occurrence, the Company's policyholder is at fault for damage to his/her own vehicle, another party's vehicle and three injured parties, there may be five features—three for bodily injury liability, one for property damage liability and one for first-party collision coverage. There may also be another feature for first-party medical payments. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) The following table reconciles the net incurred and paid claims development tables presented above to the Company's liability for Property and Casualty Insurance Reserves included in the Consolidated Balance Sheet at December 31, 2021. DOLLARS IN MILLIONS 2021 Property and Casualty Insurance Reserves, Net of Reinsurance: Specialty Personal Automobile Insurance—Liability $ 1,722.3 Specialty Personal Automobile Insurance—Physical Damage 63.6 Commercial Automobile Insurance—Liability 300.4 Commercial Automobile Insurance—Physical Damage 9.9 Preferred Personal Automobile Insurance—Liability 262.2 Preferred Personal Automobile Insurance—Physical Damage 5.4 Homeowners Insurance 81.4 Other 46.7 Total $ 2,491.9 Reinsurance Recoverables on Unpaid Losses and Allocated LAE: Specialty Personal Automobile Insurance—Liability $ 10.3 Specialty Personal Automobile Insurance—Physical Damage — Commercial Automobile Insurance—Liability 3.2 Commercial Automobile Insurance—Physical Damage — Preferred Personal Automobile Insurance—Liability 19.2 Preferred Personal Automobile Insurance—Physical Damage — Homeowners Insurance 5.0 Other 4.2 Total 41.9 Unallocated LAE 238.9 Property and Casualty Insurance Reserves, Gross of Reinsurance $ 2,772.7 The following is supplementary information about average historical claims duration as of December 31, 2021. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Years 1 2 3 4 5 Specialty Personal Automobile Insurance—Liability 39.1 % 79.3 % 91.7 % 95.8 % 97.7 % Specialty Personal Automobile Insurance—Physical Damage 91.9 100.8 100.2 100.1 100.0 Commercial Automobile Insurance—Liability 27.5 60.7 79.1 88.7 93.7 Commercial Automobile Insurance—Physical Damage 87.2 99.9 99.9 100.0 100.0 Preferred Personal Automobile Insurance—Liability 31.9 64.6 81.8 89.9 94.2 Preferred Personal Automobile Insurance—Physical Damage 96.1 100.7 99.9 99.9 100.0 Homeowners Insurance 67.0 94.0 96.8 98.5 99.1 NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Property and Casualty Insurance Reserve activity for the years ended December 31, 2021, 2020 and 2019 was: DOLLARS IN MILLIONS 2021 2020 2019 Property and Casualty Insurance Reserves: Gross of Reinsurance at Beginning of Year $ 1,982.5 $ 1,969.8 $ 1,874.9 Less Reinsurance Recoverables at Beginning of Year 50.1 65.6 101.9 Property and Casualty Insurance Reserves, Net of Reinsurance at Beginning of Year 1,932.4 1,904.2 1,773.0 Property and Casualty Insurance Reserves Acquired, Net of Reinsurance 211.1 — 3.6 Incurred Losses and LAE related to: Current Year 4,052.7 2,873.6 2,879.5 Prior Years 106.7 36.4 (71.1) Total Incurred Losses and LAE 4,159.4 2,910.0 2,808.4 Paid Losses and LAE related to: Current Year: 2,303.4 1,679.1 1,682.1 Prior Years 1,268.7 1,202.7 998.7 Total Paid Losses and LAE 3,572.1 2,881.8 2,680.8 Property and Casualty Insurance Reserves, Net of Reinsurance at End of Year 2,730.8 1,932.4 1,904.2 Plus Reinsurance Recoverables at End of Year 41.9 50.1 65.6 Property and Casualty Insurance Reserves, Gross of Reinsurance at End of Year $ 2,772.7 $ 1,982.5 $ 1,969.8 Property and Casualty Insurance Reserves are estimated based on historical experience patterns and current economic trends. Actual loss experience and loss trends are likely to differ from these historical experience patterns and economic conditions. Loss experience and loss trends emerge over several years from the dates of loss inception. The Company monitors such emerging loss trends on a quarterly basis. Changes in such estimates are included in the Consolidated Statements of Income in the period of change. In 2021, the Company increased its property and casualty insurance reserves by $106.7 million to recognize adverse development of loss and LAE reserves from prior accident years. Specialty Personal Automobile insurance loss and LAE reserves developed adversely by $85.3 million due primarily to legal developments and increased severity in personal injury protection coverage in Florida and other liability coverages. Specialty Commercial Automobile insurance loss and LAE reserves developed adversely by $12.4 million due primarily to the emergence of less favorable loss patterns than expected for liability insurance. Preferred Personal Automobile insurance loss and LAE reserves developed adversely by $12.1 million due primarily to the emergence of less favorable loss patterns than expected for liability insurance. Homeowners insurance loss and LAE reserves developed favorably by $6.5 million due primarily to the emergence of more favorable loss patterns than expected. Other personal lines loss and LAE reserves developed adversely by $3.4 million due primarily to the emergence of less favorable loss patterns than expected for prior accident years. In 2020, the Company increased its property and casualty insurance reserves by $36.4 million to recognize adverse development of loss and LAE reserves from prior accident years. Specialty Personal Automobile insurance loss and LAE reserves developed adversely by $28.2 million due primarily to the emergence of less favorable loss patterns than expected for both liability and physical damage insurance. Specialty Commercial Automobile insurance loss and LAE reserves included favorable development of $12.9 million due primarily to the emergence of more favorable loss patterns than expected for liability insurance. Preferred Personal Automobile insurance loss and LAE reserves developed adversely by $26.7 million due primarily to the emergence of less favorable loss patterns than expected for liability insurance. Homeowners insurance loss and LAE reserves developed favorably by $2.1 million due primarily to the emergence of more favorable loss patterns than expected. Other personal lines loss and LAE reserves developed favorably by $3.5 million due primarily to the emergence of more favorable loss patterns than expected for prior accident years. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) In 2019, the Company decreased its property and casualty insurance reserves by $71.1 million to recognize favorable development of loss and LAE reserves from prior accident years. Specialty Personal Automobile insurance loss and LAE reserves developed favorably by $23.8 million due primarily to the emergence of more favorable loss patterns than expected for both liability and physical damage insurance for the 2018 accident year. Commercial lines insurance loss and LAE included favorable development of $12.9 million due primarily to the emergence of more favorable loss patterns than expected for commercial automobile liability insurance for 2018 and 2017 accident years. Preferred Personal Automobile insurance loss and LAE reserves developed favorably by $8.2 million due primarily to the emergence of more favorable loss patterns than expected for liability insurance for several prior accident years and for physical damage insurance for 2018 accident year. Homeowners insurance loss and LAE reserves developed favorably by $19.7 million due primarily to the net reinsurance impact from the sale of subrogation rights related to the 2017 and 2018 California Wildfires. Other personal lines loss and LAE reserves developed favorably by $6.5 million due primarily to the emergence of more favorable loss patterns than expected for prior accident years. The Company cannot predict whether loss and LAE reserves will develop favorably or unfavorably from the amounts reported in the Consolidated Financial Statements. The Company believes that any such development will not have a material effect on the Company’s consolidated financial position, but could have a material effect on the Company’s consolidated financial results for a given period. Reinsurance recoverables on property and casualty insurance reserves were $41.9 million and $50.1 million at December 31, 2021 and 2020, respectively. These recoverables are concentrated with several reinsurers, the majority of which are highly rated by one or more of the principal investor and/or insurance company rating agencies. While most of these recoverables were unsecured at December 31, 2021 and 2020, the agreements with the reinsurers generally provide for some form of collateralization upon the occurrence of certain events. Receivables from Policyholders - Allowance for Expected Credit Losses The following table presents receivables from policyholders, net of the allowance for expected credit losses including a rollforward of changes in the allowance for expected credit losses for the year ended December 31, 2021. (Dollars in Millions) Receivables from Policyholders, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Balance at Beginning of Year $ 1,194.5 $ 20.9 Provision for Expected Credit Losses 50.5 Write-offs of Uncollectible Receivables from Policyholders (57.8) Balance at End of Period $ 1,418.7 $ 13.6 The following table presents receivables from policyholders, net of the allowance for expected credit losses including a rollforward of changes in the allowance for expected credit losses for the year ended December 31, 2020. (Dollars in Millions) Receivables from Policyholders, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Balance at Beginning of Year $ 1,117.1 $ 22.3 Provision for Expected Credit Losses 45.5 Write-offs of Uncollectible Receivables from Policyholders (46.9) Balance at End of Period $ 1,194.5 $ 20.9 |
Insurance Expenses
Insurance Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Insurance Expenses [Abstract] | |
Insurance Expenses | NOTE 7. INSURANCE EXPENSES Insurance Expenses for the years ended December 31, 2021, 2020 and 2019 were: DOLLARS IN MILLIONS 2021 2020 2019 Commissions $ 817.6 $ 745.8 $ 708.8 General Expenses 339.5 307.4 278.0 Premium Tax Expense 104.3 94.2 93.5 Total Costs Incurred 1,261.4 1,147.4 1,080.3 Policy Acquisition Costs: Deferred (772.6) (693.4) (475.2) Amortized 684.3 641.8 408.3 Net Policy Acquisition Costs Amortized (88.3) (51.6) (66.9) Amortization of VOBA 45.0 4.7 6.3 Insurance Expenses $ 1,218.1 $ 1,100.5 $ 1,019.7 Commissions for servicing policies are expensed as incurred, rather than deferred and amortized. The Company recorded amortization of Deferred Policy Acquisition Costs of $684.3 million, $641.8 million and $408.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS Fixed Maturities The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2021 were: DOLLARS IN MILLIONS Amortized Gross Unrealized Allowance for Expected Credit Losses Fair Value Gains Losses U.S. Government and Government Agencies and Authorities $ 610.1 $ 29.2 $ (1.9) $ — $ 637.4 States and Political Subdivisions 1,752.5 144.6 (7.0) — 1,890.1 Foreign Governments 6.7 — (1.2) — 5.5 Corporate Securities: Bonds and Notes 3,929.0 481.4 (16.0) (7.5) 4,386.9 Redeemable Preferred Stocks 7.0 0.4 — — 7.4 Collateralized Loan Obligations 756.0 0.9 (4.8) — 752.1 Other Mortgage- and Asset-backed 296.9 12.4 (1.8) — 307.5 Investments in Fixed Maturities $ 7,358.2 $ 668.9 $ (32.7) $ (7.5) $ 7,986.9 NOTE 8. INVESTMENTS (Continued) The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2020 were: Amortized Gross Unrealized Allowance for Expected Credit Losses Fair Value DOLLARS IN MILLIONS Gains Losses U.S. Government and Government Agencies and Authorities $ 536.5 $ 48.9 $ (0.1) $ — $ 585.3 States and Political Subdivisions 1,404.3 185.4 (0.2) — 1,589.5 Foreign Governments 6.6 — (1.1) (0.3) 5.2 Corporate Securities: Bonds and Notes 3,749.5 689.5 (10.6) (3.0) 4,425.4 Redeemable Preferred Stocks 7.0 0.5 — 7.5 Collateralized Loan Obligations 785.1 2.3 (19.7) — 767.7 Other Mortgage- and Asset-backed 203.7 21.6 — — 225.3 Investments in Fixed Maturities $ 6,692.7 $ 948.2 $ (31.7) $ (3.3) $ 7,605.9 Other Receivables included $0.6 million and $5.1 million of unsettled sales of Investments in Fixed Maturities at December 31, 2021 and December 31, 2020, respectively. Accrued Expenses and Other Liabilities included unsettled purchases of Investments in Fixed Maturities of $12.7 million and $4.3 million at December 31, 2021 and 2020, respectively. The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2021 by contractual maturity were: DOLLARS IN MILLIONS Amortized Cost Fair Value Due in One Year or Less $ 109.0 $ 111.4 Due after One Year to Five Years 998.3 1,044.2 Due after Five Years to Ten Years 1,469.1 1,555.9 Due after Ten Years 3,255.6 3,730.1 Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date 1,526.2 1,545.3 Investments in Fixed Maturities $ 7,358.2 $ 7,986.9 The expected maturities of the Company’s Investments in Fixed Maturities may differ from the contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Investments in Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date at December 31, 2021 consisted of securities issued by the Government National Mortgage Association with a fair value of $406.4 million, securities issued by the Federal National Mortgage Association with a fair value of $46.8 million, securities issued by the Federal Home Loan Mortgage Corporation with a fair value of $32.6 million and securities of other non-governmental issuers with a fair value of $1,059.5 million. NOTE 8. INVESTMENTS (Continued) An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2021 is presented below. DOLLARS IN MILLIONS Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 168.7 $ (1.8) $ 1.2 $ (0.1) $ 169.9 $ (1.9) States and Political Subdivisions 385.0 (6.9) 1.5 (0.1) 386.5 (7.0) Foreign Governments 2.2 (0.6) 2.6 (0.6) 4.8 (1.2) Corporate Securities: Bonds and Notes 596.8 (13.1) 49.3 (2.9) 646.1 (16.0) Redeemable Preferred Stocks 0.1 — — — 0.1 — Collateralized Loan Obligations 250.9 (2.6) 192.6 (2.2) 443.5 (4.8) Other Mortgage- and Asset-backed 100.1 (1.8) — — 100.1 (1.8) Total Fixed Maturities $ 1,503.8 $ (26.8) $ 247.2 $ (5.9) $ 1,751.0 $ (32.7) The Company regularly reviews its fixed maturity investment portfolio for factors that may indicate that a decline in fair value of an investment has resulted from an expected credit loss. The portions of the declines in the fair values of fixed maturity investments that are determined to be due to expected credit losses are reported as losses in the Consolidated Statements of Income in the periods when such determinations are made. At December 31, 2021, the Company did not have the intent to sell these investments, and it was not more likely than not that the Company would be required to sell these investments before an anticipated recovery of value. The Company evaluated these investments for credit losses at December 31, 2021. The Company considers many factors in evaluating whether the unrealized losses were credit related including, but not limited to, the extent to which the fair value has been less than amortized cost, conditions related to the security, industry, or geographic area, payment structure of the investment and the likelihood of the issuer’s ability to make contractual cash flows, defaults or other collectability concerns related to the issuer, changes in the ratings assigned by a rating agency, and other credit enhancements that affect the investment’s expected performance. The Company determined that the unrealized losses on these securities were due to non-credit related factors at the evaluation date. Investment-grade fixed maturity investments comprised $23.7 million and below-investment-grade fixed maturity investments comprised $9.0 million of the unrealized losses on investments in fixed maturities at December 31, 2021. For below-investment-grade fixed maturity investments in an unrealized loss position, the unrealized loss amount, on average, was approximately 4% of the amortized cost basis of the investment. NOTE 8. INVESTMENTS (Continued) An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2020 is presented below. DOLLARS IN MILLIONS Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 10.5 $ (0.1) $ — $ — $ 10.5 $ (0.1) States and Political Subdivisions 23.3 (0.2) — — 23.3 (0.2) Foreign Governments 0.5 (0.1) 2.6 (1.0) 3.1 (1.1) Corporate Securities: Bonds and Notes 132.9 (7.5) 46.1 (3.1) 179.0 (10.6) Collateralized Loan Obligations 145.2 (3.8) 371.4 (15.9) 516.6 (19.7) Other Mortgage- and Asset-backed 6.3 — — — 6.3 — Total Fixed Maturities $ 318.7 $ (11.7) $ 420.1 $ (20.0) $ 738.8 $ (31.7) Investment-grade fixed maturity investments comprised $8.0 million and below-investment-grade fixed maturity investments comprised $23.7 million of the unrealized losses on investments in fixed maturities at December 31, 2020. For below-investment-grade fixed maturity investments in an unrealized loss position, the unrealized loss amount, on average, was approximately 11% of the amortized cost basis of the investment. Fixed Maturities - Expected Credit Losses The following table sets forth the change in allowance for credit losses on fixed maturities available-for-sale by major security type for year ended December 31, 2021. Foreign Governments Corporate Bonds and Notes Total (Dollars in Millions) Beginning of the Year $ 0.3 $ 3.0 $ 3.3 Additions for Securities for which No Previous Expected Credit Losses were — 5.6 5.6 Reduction Due to Sales — — — Net Increase (Decrease) in Allowance on Securities for which Expected Credit Losses were Previously Recognized (0.3) (0.8) (1.1) Write-offs Charged Against Allowance — (0.3) (0.3) End of Year $ — $ 7.5 $ 7.5 NOTE 8. INVESTMENTS (Continued) The following table sets forth the change in allowance for credit losses on fixed maturities available-for-sale by major security type for year ended December 31, 2020. Foreign Governments Corporate Bonds and Notes Total (Dollars in Millions) Beginning of the Year $ — $ — $ — Impact of Adopting ASU 2016-13 — — — Additions for Securities for which No Previous Expected Credit Losses were 1.2 5.9 7.1 Reduction Due to Sales (0.7) (1.3) (2) Net Increase (Decrease) in Allowance on Securities for which Expected Credit Losses were Previously Recognized (0.2) (0.2) (0.4) Write-offs Charged Against Allowance — (1.4) (1.4) End of Year $ 0.3 $ 3.0 $ 3.3 Equity Securities Equity Securities at Fair Value Equity securities with readily-determinable fair values, including equity securities which the Company previously classified as Fair Value Option Investments, are classified as Equity Securities at Fair Value in the Consolidated Balance Sheets with changes in fair value recorded as Income from Change in Fair Value of Equity and Convertible Securities in the Consolidated Statements of Income. Net unrealized gains arising during the year ended December 31, 2021 and recognized in earnings, related to such investments still held as of December 31, 2021 were $111.9 million. Equity Securities at Modified Cost For Equity Securities at Modified Cost, the Company performs a qualitative impairment analysis on a quarterly basis consisting of various factors such as earnings performance, current market conditions, changes in credit ratings, changes in the regulatory environment and other factors. If the qualitative analysis identifies the presence of impairment indicators, the Company estimates the fair value of the investment. If the estimated fair value is below the carrying value, the Company records an impairment in the Consolidated Statement of Income to reduce the carrying value to the estimated fair value. When the Company identifies observable transactions of the same or similar securities to those held by the Company, the Company increases or decreases the carrying value to the observable transaction price. The Company recognized no decrease in the carrying value due to observable transactions for the year ended December 31, 2021. The Company recognized an impairment of $4.2 million on Equity Securities at Modified Cost for the year ended December 31, 2021 as a result of the Company’s qualitative impairment analysis. The Company has recognized no cumulative increases in the carrying value due to observable transactions, no cumulative decreases in the carrying value due to observable transactions and $10.0 million of cumulative impairments on Equity Securities at Modified Cost held as of December 31, 2021. Equity Method Limited Liability Investments Equity Method Limited Liability Investments include investments in limited liability investment companies and limited partnerships in which the Company’s interests are not deemed minor and are accounted for under the equity method of accounting. The Company’s investments in Equity Method Limited Liability Investments are generally of a passive nature in that the Company does not take an active role in the management of the investment entity. In 2021 and 2020, aggregate investment income (losses) from Equity Method Limited Liability Investments exceeded 10% of the Company’s pretax consolidated net income. Accordingly, the Company is disclosing aggregated summarized financial data for its Equity Method Limited Liability Investments for all periods presented in the Consolidated Financial Statements. Such aggregated summarized financial data does not represent the Company’s proportionate share of the Equity Method Limited Liability Investment assets or earnings. Aggregate total assets of the Equity Method Limited Liability Investments in which the Company invested totaled $5,042.5 million, $3,554.5 million and $2,368.1 million, as of December 31, 2021, 2020 and 2019, respectively. Aggregate total liabilities of the Equity Method Limited Liability Investments in which the Company invested NOTE 8. INVESTMENTS (Continued) totaled $2,074.8 million, $1,602.5 million and $817.2 million, as of December 31, 2021, 2020 and 2019, respectively. Aggregate net income of the Equity Method Limited Liability Investments in which the Company invested totaled $585.1 million, $74.9 million and $78.0 million for the years ended December 31, 2021, 2020 and 2019, respectively. The aggregate summarized financial data is based on the most recent and sufficiently-timely financial information available to the Company as of the respective reporting dates and periods. The Company’s maximum exposure to loss at December 31, 2021 is limited to the total carrying value of $241.9 million. In addition, the Company had outstanding commitments totaling approximately $198.5 million to fund Equity Method Limited Liability Investments at December 31, 2021. At December 31, 2021, 4.0% of Equity Method Limited Liability Investments were reported without a reporting lag. 12.3% of the total carrying value were reported with a one month lag and the remainder were reported with more than a one month lag. Alternative Energy Partnership Investments Alternative Energy Partnership Investments include partnerships formed to invest in newly installed residential solar leases and power purchase agreements. As a result of this investment, the Company has the right to certain investment tax credits and tax depreciation benefits, and to a lesser extent, cash flows generated from the installed solar systems leased to individual consumers for a fixed period of time. The Hypothetical Liquidation at Book Value (“HLBV”) equity method of accounting is used for the Company’s investments in Alternative Energy Partnership Investments. The Company’s maximum exposure to loss at December 31, 2021 is limited to the total carrying value of $39.6 million. The Company has no outstanding commitments to fund Alternative Energy Partnership Investments as of December 31, 2021. Alternative Energy Partnership Investments are reported on a three month lag. Other Investments The carrying values of the Company’s Other Investments at December 31, 2021 and 2020 were: DOLLARS IN MILLIONS 2021 2020 Company-Owned Life Insurance $ 448.1 $ 327.4 Loans to Policyholders at Unpaid Principal 286.2 297.9 Real Estate at Depreciated Cost 94.0 98.7 Mortgage Loans and Other 97.3 55.0 Total $ 925.6 $ 779.0 Net Investment Income for the years ended December 31, 2021, 2020 and 2019 was: DOLLARS IN MILLIONS 2021 2020 2019 Investment Income: Interest on Fixed Income Securities $ 277.7 $ 289.8 $ 299.4 Dividends on Equity Securities Excluding Alternative Investments 15.9 15.4 22.9 Alternative Investments: Equity Method Limited Liability Investments 56.7 4.9 1.0 Limited Liability Investments Included in Equity Securities 46.9 22.1 18.0 Total Alternative Investments 103.6 27.0 19.0 Short-term Investments 1.0 5.5 8.2 Loans to Policyholders 21.7 22.1 22.6 Real Estate 9.3 9.6 9.8 Other 32.4 13.2 1.5 Total Investment Income 461.6 382.6 383.4 Investment Expenses: Real Estate 9.7 8.8 9.6 Other Investment Expenses 24.6 25.6 9.5 Total Investment Expenses 34.3 34.4 19.1 Net Investment Income $ 427.3 $ 348.2 $ 364.3 Other Receivables includes accrued investment income of $79.6 million and $77.1 million at December 31, 2021 and 2020, respectively. NOTE 9. INCOME FROM INVESTMENTS (Continued) The components of Net Realized Gains on Sales of Investments for the years ended December 31, 2021, 2020 and 2019 were: DOLLARS IN MILLIONS 2021 2020 2019 Fixed Maturities: Gains on Sales $ 63.4 $ 40.6 $ 41.1 Losses on Sales (2.1) (7.9) (4.8) Equity Securities: Gains on Sales 4.1 5.9 5.8 Losses on Sales (0.7) (1.9) (0.2) Equity Method Limited Liability Investments: Gains on Sales 0.4 — — Losses on Sales — (0.4) — Real Estate: Gains on Sales 0.1 1.8 — Losses on Sales (0.4) — — Net Realized Gains on Sales of Investments $ 64.8 $ 38.1 $ 41.9 Gross Gains on Sales $ 68.0 $ 48.3 $ 46.9 Gross Losses on Sales (3.2) (10.2) (5.0) Net Realized Gains on Sales of Investments $ 64.8 $ 38.1 $ 41.9 The components of Impairment Losses reported in the Consolidated Statements of Income for the years ended December 31, 2021, 2020 and 2019 were: DOLLARS IN MILLIONS 2021 2020 2019 Fixed Maturities $ (6.4) $ (16.7) $ (13.3) Equity Securities (4.2) (2.8) (0.5) Real Estate (0.4) — — Net Impairment Losses Recognized in Earnings $ (11.0) $ (19.5) $ (13.8) |
Income from Investments
Income from Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investment Income, Net [Abstract] | |
Income from Investments | INVESTMENTS Fixed Maturities The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2021 were: DOLLARS IN MILLIONS Amortized Gross Unrealized Allowance for Expected Credit Losses Fair Value Gains Losses U.S. Government and Government Agencies and Authorities $ 610.1 $ 29.2 $ (1.9) $ — $ 637.4 States and Political Subdivisions 1,752.5 144.6 (7.0) — 1,890.1 Foreign Governments 6.7 — (1.2) — 5.5 Corporate Securities: Bonds and Notes 3,929.0 481.4 (16.0) (7.5) 4,386.9 Redeemable Preferred Stocks 7.0 0.4 — — 7.4 Collateralized Loan Obligations 756.0 0.9 (4.8) — 752.1 Other Mortgage- and Asset-backed 296.9 12.4 (1.8) — 307.5 Investments in Fixed Maturities $ 7,358.2 $ 668.9 $ (32.7) $ (7.5) $ 7,986.9 NOTE 8. INVESTMENTS (Continued) The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2020 were: Amortized Gross Unrealized Allowance for Expected Credit Losses Fair Value DOLLARS IN MILLIONS Gains Losses U.S. Government and Government Agencies and Authorities $ 536.5 $ 48.9 $ (0.1) $ — $ 585.3 States and Political Subdivisions 1,404.3 185.4 (0.2) — 1,589.5 Foreign Governments 6.6 — (1.1) (0.3) 5.2 Corporate Securities: Bonds and Notes 3,749.5 689.5 (10.6) (3.0) 4,425.4 Redeemable Preferred Stocks 7.0 0.5 — 7.5 Collateralized Loan Obligations 785.1 2.3 (19.7) — 767.7 Other Mortgage- and Asset-backed 203.7 21.6 — — 225.3 Investments in Fixed Maturities $ 6,692.7 $ 948.2 $ (31.7) $ (3.3) $ 7,605.9 Other Receivables included $0.6 million and $5.1 million of unsettled sales of Investments in Fixed Maturities at December 31, 2021 and December 31, 2020, respectively. Accrued Expenses and Other Liabilities included unsettled purchases of Investments in Fixed Maturities of $12.7 million and $4.3 million at December 31, 2021 and 2020, respectively. The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2021 by contractual maturity were: DOLLARS IN MILLIONS Amortized Cost Fair Value Due in One Year or Less $ 109.0 $ 111.4 Due after One Year to Five Years 998.3 1,044.2 Due after Five Years to Ten Years 1,469.1 1,555.9 Due after Ten Years 3,255.6 3,730.1 Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date 1,526.2 1,545.3 Investments in Fixed Maturities $ 7,358.2 $ 7,986.9 The expected maturities of the Company’s Investments in Fixed Maturities may differ from the contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Investments in Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date at December 31, 2021 consisted of securities issued by the Government National Mortgage Association with a fair value of $406.4 million, securities issued by the Federal National Mortgage Association with a fair value of $46.8 million, securities issued by the Federal Home Loan Mortgage Corporation with a fair value of $32.6 million and securities of other non-governmental issuers with a fair value of $1,059.5 million. NOTE 8. INVESTMENTS (Continued) An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2021 is presented below. DOLLARS IN MILLIONS Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 168.7 $ (1.8) $ 1.2 $ (0.1) $ 169.9 $ (1.9) States and Political Subdivisions 385.0 (6.9) 1.5 (0.1) 386.5 (7.0) Foreign Governments 2.2 (0.6) 2.6 (0.6) 4.8 (1.2) Corporate Securities: Bonds and Notes 596.8 (13.1) 49.3 (2.9) 646.1 (16.0) Redeemable Preferred Stocks 0.1 — — — 0.1 — Collateralized Loan Obligations 250.9 (2.6) 192.6 (2.2) 443.5 (4.8) Other Mortgage- and Asset-backed 100.1 (1.8) — — 100.1 (1.8) Total Fixed Maturities $ 1,503.8 $ (26.8) $ 247.2 $ (5.9) $ 1,751.0 $ (32.7) The Company regularly reviews its fixed maturity investment portfolio for factors that may indicate that a decline in fair value of an investment has resulted from an expected credit loss. The portions of the declines in the fair values of fixed maturity investments that are determined to be due to expected credit losses are reported as losses in the Consolidated Statements of Income in the periods when such determinations are made. At December 31, 2021, the Company did not have the intent to sell these investments, and it was not more likely than not that the Company would be required to sell these investments before an anticipated recovery of value. The Company evaluated these investments for credit losses at December 31, 2021. The Company considers many factors in evaluating whether the unrealized losses were credit related including, but not limited to, the extent to which the fair value has been less than amortized cost, conditions related to the security, industry, or geographic area, payment structure of the investment and the likelihood of the issuer’s ability to make contractual cash flows, defaults or other collectability concerns related to the issuer, changes in the ratings assigned by a rating agency, and other credit enhancements that affect the investment’s expected performance. The Company determined that the unrealized losses on these securities were due to non-credit related factors at the evaluation date. Investment-grade fixed maturity investments comprised $23.7 million and below-investment-grade fixed maturity investments comprised $9.0 million of the unrealized losses on investments in fixed maturities at December 31, 2021. For below-investment-grade fixed maturity investments in an unrealized loss position, the unrealized loss amount, on average, was approximately 4% of the amortized cost basis of the investment. NOTE 8. INVESTMENTS (Continued) An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2020 is presented below. DOLLARS IN MILLIONS Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 10.5 $ (0.1) $ — $ — $ 10.5 $ (0.1) States and Political Subdivisions 23.3 (0.2) — — 23.3 (0.2) Foreign Governments 0.5 (0.1) 2.6 (1.0) 3.1 (1.1) Corporate Securities: Bonds and Notes 132.9 (7.5) 46.1 (3.1) 179.0 (10.6) Collateralized Loan Obligations 145.2 (3.8) 371.4 (15.9) 516.6 (19.7) Other Mortgage- and Asset-backed 6.3 — — — 6.3 — Total Fixed Maturities $ 318.7 $ (11.7) $ 420.1 $ (20.0) $ 738.8 $ (31.7) Investment-grade fixed maturity investments comprised $8.0 million and below-investment-grade fixed maturity investments comprised $23.7 million of the unrealized losses on investments in fixed maturities at December 31, 2020. For below-investment-grade fixed maturity investments in an unrealized loss position, the unrealized loss amount, on average, was approximately 11% of the amortized cost basis of the investment. Fixed Maturities - Expected Credit Losses The following table sets forth the change in allowance for credit losses on fixed maturities available-for-sale by major security type for year ended December 31, 2021. Foreign Governments Corporate Bonds and Notes Total (Dollars in Millions) Beginning of the Year $ 0.3 $ 3.0 $ 3.3 Additions for Securities for which No Previous Expected Credit Losses were — 5.6 5.6 Reduction Due to Sales — — — Net Increase (Decrease) in Allowance on Securities for which Expected Credit Losses were Previously Recognized (0.3) (0.8) (1.1) Write-offs Charged Against Allowance — (0.3) (0.3) End of Year $ — $ 7.5 $ 7.5 NOTE 8. INVESTMENTS (Continued) The following table sets forth the change in allowance for credit losses on fixed maturities available-for-sale by major security type for year ended December 31, 2020. Foreign Governments Corporate Bonds and Notes Total (Dollars in Millions) Beginning of the Year $ — $ — $ — Impact of Adopting ASU 2016-13 — — — Additions for Securities for which No Previous Expected Credit Losses were 1.2 5.9 7.1 Reduction Due to Sales (0.7) (1.3) (2) Net Increase (Decrease) in Allowance on Securities for which Expected Credit Losses were Previously Recognized (0.2) (0.2) (0.4) Write-offs Charged Against Allowance — (1.4) (1.4) End of Year $ 0.3 $ 3.0 $ 3.3 Equity Securities Equity Securities at Fair Value Equity securities with readily-determinable fair values, including equity securities which the Company previously classified as Fair Value Option Investments, are classified as Equity Securities at Fair Value in the Consolidated Balance Sheets with changes in fair value recorded as Income from Change in Fair Value of Equity and Convertible Securities in the Consolidated Statements of Income. Net unrealized gains arising during the year ended December 31, 2021 and recognized in earnings, related to such investments still held as of December 31, 2021 were $111.9 million. Equity Securities at Modified Cost For Equity Securities at Modified Cost, the Company performs a qualitative impairment analysis on a quarterly basis consisting of various factors such as earnings performance, current market conditions, changes in credit ratings, changes in the regulatory environment and other factors. If the qualitative analysis identifies the presence of impairment indicators, the Company estimates the fair value of the investment. If the estimated fair value is below the carrying value, the Company records an impairment in the Consolidated Statement of Income to reduce the carrying value to the estimated fair value. When the Company identifies observable transactions of the same or similar securities to those held by the Company, the Company increases or decreases the carrying value to the observable transaction price. The Company recognized no decrease in the carrying value due to observable transactions for the year ended December 31, 2021. The Company recognized an impairment of $4.2 million on Equity Securities at Modified Cost for the year ended December 31, 2021 as a result of the Company’s qualitative impairment analysis. The Company has recognized no cumulative increases in the carrying value due to observable transactions, no cumulative decreases in the carrying value due to observable transactions and $10.0 million of cumulative impairments on Equity Securities at Modified Cost held as of December 31, 2021. Equity Method Limited Liability Investments Equity Method Limited Liability Investments include investments in limited liability investment companies and limited partnerships in which the Company’s interests are not deemed minor and are accounted for under the equity method of accounting. The Company’s investments in Equity Method Limited Liability Investments are generally of a passive nature in that the Company does not take an active role in the management of the investment entity. In 2021 and 2020, aggregate investment income (losses) from Equity Method Limited Liability Investments exceeded 10% of the Company’s pretax consolidated net income. Accordingly, the Company is disclosing aggregated summarized financial data for its Equity Method Limited Liability Investments for all periods presented in the Consolidated Financial Statements. Such aggregated summarized financial data does not represent the Company’s proportionate share of the Equity Method Limited Liability Investment assets or earnings. Aggregate total assets of the Equity Method Limited Liability Investments in which the Company invested totaled $5,042.5 million, $3,554.5 million and $2,368.1 million, as of December 31, 2021, 2020 and 2019, respectively. Aggregate total liabilities of the Equity Method Limited Liability Investments in which the Company invested NOTE 8. INVESTMENTS (Continued) totaled $2,074.8 million, $1,602.5 million and $817.2 million, as of December 31, 2021, 2020 and 2019, respectively. Aggregate net income of the Equity Method Limited Liability Investments in which the Company invested totaled $585.1 million, $74.9 million and $78.0 million for the years ended December 31, 2021, 2020 and 2019, respectively. The aggregate summarized financial data is based on the most recent and sufficiently-timely financial information available to the Company as of the respective reporting dates and periods. The Company’s maximum exposure to loss at December 31, 2021 is limited to the total carrying value of $241.9 million. In addition, the Company had outstanding commitments totaling approximately $198.5 million to fund Equity Method Limited Liability Investments at December 31, 2021. At December 31, 2021, 4.0% of Equity Method Limited Liability Investments were reported without a reporting lag. 12.3% of the total carrying value were reported with a one month lag and the remainder were reported with more than a one month lag. Alternative Energy Partnership Investments Alternative Energy Partnership Investments include partnerships formed to invest in newly installed residential solar leases and power purchase agreements. As a result of this investment, the Company has the right to certain investment tax credits and tax depreciation benefits, and to a lesser extent, cash flows generated from the installed solar systems leased to individual consumers for a fixed period of time. The Hypothetical Liquidation at Book Value (“HLBV”) equity method of accounting is used for the Company’s investments in Alternative Energy Partnership Investments. The Company’s maximum exposure to loss at December 31, 2021 is limited to the total carrying value of $39.6 million. The Company has no outstanding commitments to fund Alternative Energy Partnership Investments as of December 31, 2021. Alternative Energy Partnership Investments are reported on a three month lag. Other Investments The carrying values of the Company’s Other Investments at December 31, 2021 and 2020 were: DOLLARS IN MILLIONS 2021 2020 Company-Owned Life Insurance $ 448.1 $ 327.4 Loans to Policyholders at Unpaid Principal 286.2 297.9 Real Estate at Depreciated Cost 94.0 98.7 Mortgage Loans and Other 97.3 55.0 Total $ 925.6 $ 779.0 Net Investment Income for the years ended December 31, 2021, 2020 and 2019 was: DOLLARS IN MILLIONS 2021 2020 2019 Investment Income: Interest on Fixed Income Securities $ 277.7 $ 289.8 $ 299.4 Dividends on Equity Securities Excluding Alternative Investments 15.9 15.4 22.9 Alternative Investments: Equity Method Limited Liability Investments 56.7 4.9 1.0 Limited Liability Investments Included in Equity Securities 46.9 22.1 18.0 Total Alternative Investments 103.6 27.0 19.0 Short-term Investments 1.0 5.5 8.2 Loans to Policyholders 21.7 22.1 22.6 Real Estate 9.3 9.6 9.8 Other 32.4 13.2 1.5 Total Investment Income 461.6 382.6 383.4 Investment Expenses: Real Estate 9.7 8.8 9.6 Other Investment Expenses 24.6 25.6 9.5 Total Investment Expenses 34.3 34.4 19.1 Net Investment Income $ 427.3 $ 348.2 $ 364.3 Other Receivables includes accrued investment income of $79.6 million and $77.1 million at December 31, 2021 and 2020, respectively. NOTE 9. INCOME FROM INVESTMENTS (Continued) The components of Net Realized Gains on Sales of Investments for the years ended December 31, 2021, 2020 and 2019 were: DOLLARS IN MILLIONS 2021 2020 2019 Fixed Maturities: Gains on Sales $ 63.4 $ 40.6 $ 41.1 Losses on Sales (2.1) (7.9) (4.8) Equity Securities: Gains on Sales 4.1 5.9 5.8 Losses on Sales (0.7) (1.9) (0.2) Equity Method Limited Liability Investments: Gains on Sales 0.4 — — Losses on Sales — (0.4) — Real Estate: Gains on Sales 0.1 1.8 — Losses on Sales (0.4) — — Net Realized Gains on Sales of Investments $ 64.8 $ 38.1 $ 41.9 Gross Gains on Sales $ 68.0 $ 48.3 $ 46.9 Gross Losses on Sales (3.2) (10.2) (5.0) Net Realized Gains on Sales of Investments $ 64.8 $ 38.1 $ 41.9 The components of Impairment Losses reported in the Consolidated Statements of Income for the years ended December 31, 2021, 2020 and 2019 were: DOLLARS IN MILLIONS 2021 2020 2019 Fixed Maturities $ (6.4) $ (16.7) $ (13.3) Equity Securities (4.2) (2.8) (0.5) Real Estate (0.4) — — Net Impairment Losses Recognized in Earnings $ (11.0) $ (19.5) $ (13.8) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company is responsible for the determination of fair value of financial assets and liabilities, including the supporting assumptions and methodologies, and uses independent third-party valuation service providers, broker quotes and internal pricing methodologies to determine fair values. The Company obtains or estimates only one single quote or price for each financial instrument. The Company uses a hierarchical framework for inputs to determine fair value which prioritizes the use of observable inputs and minimizes the use of unobservable inputs. Additionally, the Company categorizes fair value measurements based on the lowest level of input that is considered to be significant to the entire measurement. The Company classifies its investments in Fixed Maturities as available for sale and reports these investments at fair value. The Company reports equity investments with readily determinable fair values as Equity Securities at Fair Value. Certain investments that are measured at fair value using the net asset value practical expedient are not required to be classified using the fair value hierarchy, but are presented in the following two tables to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheet. NOTE 10. FAIR VALUE MEASUREMENTS (Continued) The valuation of assets measured at fair value in the Company’s Consolidated Balance Sheet at December 31, 2021 is summarized below. The Company has no material liabilities that are measured and reported at fair value. DOLLARS IN MILLIONS Fair Value Measurements Total Fair Value Quoted Prices Significant Significant Measured at Net Asset Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 132.8 $ 504.6 $ — $ — $ 637.4 States and Political Subdivisions — 1,890.1 — — 1,890.1 Foreign Governments — 5.5 — — 5.5 Corporate Securities: Bonds and Notes — 4,150.1 236.8 — 4,386.9 Redeemable Preferred Stocks — 1.3 6.1 — 7.4 Collateralized Loan Obligations — 752.1 — — 752.1 Other Mortgage- and Asset-backed — 300.5 7.0 — 307.5 Total Investments in Fixed Maturities 132.8 7,604.2 249.9 — 7,986.9 Equity Securities at Fair Value: Preferred Stocks: Finance, Insurance and Real Estate — 34.2 — — 34.2 Other Industries — 16.1 1.5 — 17.6 Common Stocks: Finance, Insurance and Real Estate 18.9 — — — 18.9 Other Industries 2.9 — — — 2.9 Other Equity Interests: Exchange Traded Funds 432.0 — — — 432.0 Limited Liability Companies and Limited Partnerships — — — 325.0 325.0 Total Investments in Equity Securities at Fair Value 453.8 50.3 1.5 325.0 830.6 Convertible Securities at Fair Value — 46.4 — — 46.4 Total $ 586.6 $ 7,700.9 $ 251.4 $ 325.0 $ 8,863.9 NOTE 10. FAIR VALUE MEASUREMENTS (Continued) At December 31, 2021, the Company had unfunded commitments to invest an additional $102.3 million in certain limited liability investment companies and limited partnerships that will be included in Other Equity Interests when funded. The valuation of assets measured at fair value in the Company’s Consolidated Balance Sheet at December 31, 2020 is summarized below. DOLLARS IN MILLIONS Fair Value Measurements Total Fair Value Quoted Prices Significant Significant Measured at Net Asset Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 134.0 $ 451.3 $ — $ — $ 585.3 States and Political Subdivisions — 1,589.5 — — 1,589.5 Foreign Governments — 5.2 — — 5.2 Corporate Securities: Bonds and Notes — 3,992.4 433.0 — 4,425.4 Redeemable Preferred Stocks — 1.3 6.2 — 7.5 Collateralized Loan Obligations — 767.7 — — 767.7 Other Mortgage- and Asset-backed — 215.3 10.0 — 225.3 Total Investments in Fixed Maturities 134.0 7,022.7 449.2 — 7,605.9 Equity Securities at Fair Value: Preferred Stocks: Finance, Insurance and Real Estate — 43.7 — — 43.7 Other Industries — 15.4 — — 15.4 Common Stocks: Finance, Insurance and Real Estate 8.7 1.7 — — 10.4 Other Industries 0.4 — — — 0.4 Other Equity Interests: Exchange Traded Funds 496.4 — — — 496.4 Limited Liability Companies and Limited Partnerships — — — 292.2 292.2 Total Investments in Equity Securities at Fair Value 505.5 60.8 — 292.2 858.5 Convertible Securities at Fair Value — 39.9 — — 39.9 Total $ 639.5 $ 7,123.4 $ 449.2 $ 292.2 $ 8,504.3 The fair value hierarchy by level is designed to distinguish between inputs that are observable in the marketplace, which are therefore more objective, and those that are unobservable, which are more subjective. This leveling helps to indicate the relative subjectivity and reliability of the fair value measurements. Assets and liabilities reported on the Consolidated Statement of Financial Position at fair value are categorized as follows: Level 1: Unadjusted quoted prices for identical assets or liabilities in an active market. • The Company classifies investments in US Treasury Bonds, actively traded exchange traded funds, mutual funds, and public common stock as Level 1 securities. NOTE 10. FAIR VALUE MEASUREMENTS (Continued) Level 2: Observable inputs other than Level 1: (a) quoted prices for similar assets or liabilities in active markets; (b) quoted prices for identical or similar assets or liabilities in markets that are not active; or (c) valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. • The Company classifies investments in public corporate bonds, states and political subdivisions bonds, collateralized loan obligations, mortgage-backed securities, convertible bonds, majority of preferred stocks and certain private placement bonds and common stock as Level 2 securities. Level 3: Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect Company’s estimates of the assumptions that market participants would use in valuing the assets and liabilities. • The Company classifies investments in certain private placement bonds, private asset backed securities and certain preferred stock as Level 3 securities. The Company uses leading, nationally recognized valuation service providers of market data and analytics to price the vast majority of the Company’s investment portfolio. Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of proprietary models, produce valuation information in the form of a single fair value for individual fixed income and other securities for which a fair value has been requested under the terms of our agreements. The inputs used by the valuation service providers include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, liquidity spreads, and other information, as applicable. Credit and liquidity spreads are typically implied from completed transactions and transactions of comparable securities. Valuation service providers also use proprietary discounted cash flow models that are widely accepted in the financial services industry and similar to those used by other market participants to value the same financial instruments. The valuation models take into account, among other things, market observable information as of the measurement date, as well as the specific attributes of the security being valued including its term, interest rate, credit rating, industry sector, and where applicable, collateral quality and other issue or issuer specific information. Executing valuation models effectively requires seasoned professional judgment and experience. For certain equity securities, valuation service providers provide market quotations for completed transactions on the measurement date. In cases where market transactions or other market observable data is limited, the extent to which judgment is applied varies inversely with the availability of market observable information. For most of the Company’s financial assets measured at fair value, all significant inputs are based on or corroborated by market observable data, and significant management judgment does not affect the periodic determination of fair value. Fixed income and equity securities valued using independent valuation service providers are classified as either Level 1 or Level 2 depending on the security type. These service providers utilize evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information when developing prices. Due to most fixed maturity securities trading on less than a daily basis, the service providers’ evaluated pricing applications apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. The Company classifies investments as Level 3 in the fair value hierarchy when specific inputs significant to the fair value estimation models are not market observable. Significant unobservable inputs used by Company include credit profile, credit spread, and resulting market yield, which involve considerable judgment by management. This primarily occurs when fair value is derived using non-binding broker quotes where the inputs have not been corroborated to be market observable, or internal valuation estimates that use significant non-market observable inputs. The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments in corporate securities classified as Level 3 at December 31, 2021. NOTE 10. FAIR VALUE MEASUREMENTS (Continued) DOLLARS IN MILLIONS Unobservable Input Total Fair Value Range of Unobservable Inputs Weighted-average Yield Investment-grade Market Yield $ 87.9 2.3 % - 10.3 % 5.4 % Non-investment-grade: Senior Debt Market Yield 76.1 5.1 - 20.2 8.5 Junior Debt Market Yield 53.9 6.0 - 27.5 15.0 Other Various 32.0 Total Level 3 Fixed Maturity Investments $ 249.9 The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments in corporate securities classified as Level 3 at December 31, 2020. DOLLARS IN MILLIONS Unobservable Input Total Fair Value Range of Unobservable Inputs Weighted-average Yield Investment-grade Market Yield $ 246.7 1.4 % - 13.0 % 3.8 % Non-investment-grade: Senior Debt Market Yield 111.1 2.4 - 23.4 9.5 Junior Debt Market Yield 64.6 3.1 - 27.9 13.7 Other Various 26.8 Total Level 3 Fixed Maturity Investments $ 449.2 For an investment in a fixed maturity security, an increase in the yield used to determine the fair value of the security will decrease the fair value of the security. A decrease in the yield used to determine fair value will increase the fair value of the security, but for callable securities the fair value increase is generally limited to par, unless security is currently callable at a premium. Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the year ended December 31, 2021 is presented below. DOLLARS IN MILLIONS Fixed Maturities Equity Securities Corporate Redeemable Collateralized Loan Obligations Other Mortgage- Preferred Total Balance at Beginning of Year $ 433.0 $ 6.2 $ — $ 10.0 $ — $ 449.2 Total Gains (Losses): Included in Consolidated Statement of Income 2.8 — — — — 2.8 Included in Other Comprehensive Income (Loss) 1.2 (0.1) 0.1 (0.5) 0.7 1.4 Purchases 104.6 — 17.7 16.2 1.7 140.2 Settlements — — — (0.1) — (0.1) Sales (128.1) — (10.0) (0.2) — (138.3) Transfers into Level 3 8.1 — 10.0 — 1.7 19.8 Transfers out of Level 3 (184.8) — (17.8) (18.4) (2.6) (223.6) Balance at End of Year $ 236.8 $ 6.1 $ — $ 7.0 $ 1.5 $ 251.4 The transfers into and out of Level 3 were due to changes in the availability of market observable inputs. NOTE 10. FAIR VALUE MEASUREMENTS (Continued) Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the year ended December 31, 2020 is presented below. DOLLARS IN MILLIONS Fixed Maturities Total Corporate States and Political Sub-divisions Redeemable Collateralized Loan Obligations Other Mortgage- Balance at Beginning of Year $ 409.1 $ — $ 6.7 $ 618.2 $ 10.2 $ 1,044.2 Total Gains (Losses): Included in Consolidated Statement of Income (9.0) — — (0.3) — (9.3) Included in Other Comprehensive Income (Loss) 3.2 0.1 0.5 (9.3) 0.4 (5.1) Purchases 185.9 0.6 0.2 53.5 — 240.2 Settlements — — — — (0.1) (0.1) Sales (165.2) — — (26.4) (0.5) (192.1) Transfers into Level 3 9.0 — — — — 9.0 Transfers out of Level 3 — (0.7) (1.2) (635.7) — (637.6) Balance at End of Year $ 433.0 $ — $ 6.2 $ — $ 10.0 $ 449.2 The transfers into and out of Level 3 were due to changes in the availability of market observable inputs. Presented below are the carrying values and fair value estimates of financial instruments not carried at fair value. December 31, 2021 December 31, 2020 (Dollars in Millions) Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Loans to Policyholders $ 286.2 $ 286.2 $ 297.9 $ 297.9 Short-term Investments 284.1 284.1 875.4 875.4 Mortgage Loans 96.8 96.8 54.6 54.6 Company-Owned Life Insurance 448.1 448.1 327.4 327.4 Equity Securities at Modified Cost 32.3 32.3 40.1 40.1 Financial Liabilities: Long-term Debt, Current and Non-current $ 1,121.9 $ 1,152.1 $ 1,172.8 $ 1,247.8 Policyholder Contract Liabilities 401.9 401.9 407.8 407.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill balances by business segment at December 31, 2021 and 2020 were: DOLLARS IN MILLIONS 2021 2020 Specialty Property & Casualty Insurance $ 1,043.0 $ 845.0 Preferred Property & Casualty Insurance 49.6 49.6 Life & Health Insurance 219.4 219.4 Total $ 1,312.0 $ 1,114.0 The Company tests goodwill for recoverability at the reporting unit level on an annual basis, or whenever events or circumstances indicate the fair value of a reporting unit may have declined below its carrying value. The Company performed a qualitative goodwill impairment assessment for all reporting units with goodwill as of October 1, 2021. The qualitative assessment takes into consideration changes in macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, events impacting reporting units, and changes in Kemper’s stock price since the last quantitative assessment, which was performed on January 1, 2017. Based on its qualitative assessment, the Company concluded that the associated goodwill was recoverable for each reporting unit tested. The Gross carrying amount and accumulated amortization of Definite and Indefinite life intangible assets at December 31, 2021 and 2020 were: 2021 2020 (Dollars in Millions) Gross Carrying Amount Accumulated Amortization Net Amount Gross Accumulated Amortization Net Amount Definite Life Intangibles: Value of Business Acquired $ 237.5 $ 218.5 $ 19.0 $ 194.5 $ 174.2 $ 20.3 Customer Relationships 43.8 38.1 5.7 39.0 35.6 3.4 Agent Relationships 81.6 23.6 58.0 74.4 16.8 57.6 Trade Names 1.8 0.9 0.9 — — — Internal-Use Software 341.7 132.4 209.3 299.6 108.6 191.0 Total Definite Life Intangible Assets 706.4 413.5 292.9 607.5 335.2 272.3 Indefinite Life Intangible Assets: Trade Names 5.2 — 5.2 5.2 — 5.2 Insurance Licenses 45.1 — 45.1 42.6 — 42.6 Total Indefinite Life Intangible Assets 50.3 — 50.3 47.8 — 47.8 Total Intangible Assets $ 756.7 $ 413.5 $ 343.2 $ 655.3 $ 335.2 $ 320.1 The Company records intangible assets acquired in business combinations and certain costs incurred developing and customizing internal-use software within Other Assets on the Consolidated Balance Sheets. Definite life intangible assets are amortized over the estimated profit emergence period or estimated useful life of the asset. Indefinite life intangible assets are not amortized, but rather tested annually for impairment. In 2021 and 2020, the Company recognized amortization expense on definite life intangible assets of $87.0 million and $42.3 million, respectively. NOTE 11. GOODWILL AND INTANGIBLE ASSETS (Continued) The amount of amortization expense expected to be recorded in the next five years for definite life intangible assets is as follows: DOLLARS IN MILLIONS 2022 2023 2024 2025 2026 Definite Life Intangible Assets: Value of Business Acquired $ 3.6 $ 2.0 $ 1.9 $ 1.8 $ 1.7 Customer Relationships 3.0 1.1 0.4 0.4 0.3 Agent Relationships 7.3 7.3 5.5 4.9 4.9 Trade Names 0.9 — — — — Internal-Use Software 33.3 30.4 23.9 18.9 16.2 Total $ 48.1 $ 40.8 $ 31.7 $ 26.0 $ 23.1 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES The Company invests in an Alternative Energy Partnership formed to provide sustainable energy projects that are designed to generate a return primarily through the realization of federal tax credits. This entity was formed to invest in newly installed residential solar leases and power purchase agreements. As a result of this investment, the Company has the right to certain investment tax credits and tax depreciation benefits, and to a lesser extent, cash flows generated from the installed solar systems leased to individual consumers. The Company’s interest in the Alternative Energy Partnership Investment is considered an investment in a variable interest entity (“VIE”). To determine whether the investment should be consolidated in the Consolidated Financial Statements, the Company evaluates whether it is the primary beneficiary of the VIE. The primary beneficiary is the party that has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company has determined that it is not the primary beneficiary as it does not have the power to direct the activities that most significantly impact the economic performance of the entity and therefore is not required to consolidate the VIE. The project sponsor governs the entity and the Company only has consent rights that have been deemed protective in nature and does not participate in key economic decisions of the entity. The investment is accounted for using the equity method of accounting and included in Alternative Energy Partnership Investments in the Consolidated Balance Sheets. The Company uses the HLBV equity method to account for earnings and losses. This method provides an earnings allocation that appropriately reflects the substantive economics of the investment. Earnings and losses on the investment are reported in Change in Value of Alternative Energy Partnership Investments and investment tax credits are recognized in Income Tax Expense (Benefit) on the Consolidated Statements of Income. The following table presents information regarding activity in the Company’s Alternative Energy Partnership Investments as of the periods indicated: Year Ended (Dollars in millions) Dec 31, 2021 Dec 31, 2020 Fundings $ 80.0 $ 20.0 Cash distribution from investment 0.5 — Gain (loss) on investments in Alternative Energy Partnership (61.2) — Income tax credits recognized 73.9 3.6 Tax benefit (expense) recognized from HLBV application 5.1 (0.4) NOTE 12. VARIABLE INTEREST ENTITIES (Continued) The following table represents the carrying value of the associated assets and liabilities and the associated maximum loss exposure of the Alternative Energy Partnership Investments as of the dates indicated: (Dollars in millions) Dec 31, 2021 Cash $ 21.5 Equipment, net of depreciation 310.5 Other assets 3.0 Total unconsolidated assets 335.0 Maximum loss exposure 39.6 The Company’s maximum loss exposure in the event that all of the assets in the Alternative Energy Partnership are deemed worthless is $39.6 million, which is the carrying value of the investment at December 31, 2021. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) And Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income | OTHER COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE INCOME The tables below display the changes in Accumulated Other Comprehensive Income (Loss) by component for the years ended December 31, 2021, 2020 and 2019 were: (Dollars in Millions) Net Unrealized Gains (Losses) on Other Investments Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses Net Unrecognized Postretirement Benefit Costs Gain (Loss) on Cash Flow Hedges Total Balance as of January 1, 2019 $ 119.3 $ — $ (94.5) $ (3.0) $ 21.8 Other Comprehensive Income (Loss) Before Reclassifications 342.4 — (6.1) 0.3 336.6 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Net of Tax (Expense) Benefit of $5.8, $—, $—, $— and $5.8 (22.3) — — — (22.3) Other Comprehensive Income (Loss) Net of Tax (Expense) Benefit of $(85.2), $—, $1.7, $(0.1) and $(83.6) 320.1 — (6.1) 0.3 314.3 Balance as of December 31, 2019 $ 439.4 $ — $ (100.6) $ (2.7) $ 336.1 Other Comprehensive Income (Loss) Before Reclassifications 304.4 (2.1) 4.3 0.4 307.0 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Net of Tax (Expense) Benefit of $3.6, $—, $(13.5), $— and $(9.9) (13.2) — 50.6 — 37.4 Other Comprehensive Income (Loss) Net of Tax (Expense) Benefit of $(78.7), $0.5, $(15.3), $— and $(93.5) 291.2 (2.1) 54.9 0.4 344.4 Balance as of December 31, 2020 $ 730.6 $ (2.1) $ (45.7) $ (2.3) $ 680.5 Other Comprehensive Income (Loss) Before Reclassifications (182.0) (1.6) (6.5) — (190.1) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Net of Tax (Expense) Benefit of $11.3, $—, $—, $(0.1) and $11.2 (42.8) — 0.1 0.4 (42.3) Other Comprehensive Income (Loss) Net of Tax (Expense) Benefit of $59.7, $0.4, $2.4, $(0.1) and $62.4 (224.8) (1.6) (6.4) 0.4 (232.4) Balance as of December 31, 2021 $ 505.8 $ (3.7) $ (52.1) $ (1.9) $ 448.1 Amounts reclassified from Accumulated Other Comprehensive Income (Loss) shown above are reported in Net Income (Loss) as follows: Components of AOCI Consolidated Statements of Income Line Item Affected by Reclassifications Net unrealized Gains (Losses) on Other Investments and Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses Net Realized Gains on Sales of Investments and Impairment Losses Net Unrecognized Postretirement Benefit Costs Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses, Insurance Expenses, and Interest and Other Expenses Gain (Loss) on Cash Flow Hedges Interest and Other Expenses |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY Common Stock Issuance Kemper is authorized to issue 20 million shares of $0.10 par value preferred stock and 100 million shares of $0.10 par value common stock. No preferred shares were issued or outstanding at December 31, 2021 and 2020. There were 63,684,628 shares and 65,436,207 shares of common stock outstanding at December 31, 2021 and 2020, respectively. On June 7, 2019, the Company completed a public offering of its common stock and issued 1.6 million shares of common stock, at $83.00 per share. Gross proceeds from the offering were $128.9 million. Transaction costs, including the underwriting discount, were $1.7 million. In July 2019, the Company used the net proceeds of $127.2 million from the offering, together with a portion of the proceeds from the 2023 Term Loan (see Note 19, “Debt” ) to redeem all $150.0 million in aggregate outstanding principal of its 7.375% Subordinated Debentures due 2054. Common Stock Repurchases On May 6, 2020, Kemper’s Board of Directors authorized the repurchase of up to an additional $200.0 million of Kemper common stock, in addition to the $133.0 million remaining under the August 6, 2014 authorization, bringing the remaining share repurchase authorization to approximately $333.3 million as of December 31, 2020. As of December 31, 2021, the remaining share repurchase authorization was $171.6 million under the repurchase program. During the years ended 2021 and 2020, Kemper repurchased and retired approximately 2,085,000 and 1,617,000 shares, respectively, of its common stock under its share repurchase authorization for an aggregate cost of $161.7 million and $110.4 million and an average cost per share of $77.58 and $68.29, respectively. These purchases were made in the open market in accordance with applicable federal securities laws, including Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934. Kemper did not repurchase any of its common stock in open market transactions in the fourth quarter of 2021. Employee Stock Purchase Plan During the years ended December 31, 2021, 2020, and 2019, the Company issued 79,000, 61,000, and 24,000 shares under the Kemper Employee Stock Purchase Plan (“ESPP”), respectively, at an average discounted price of $58.08, $61.57, and $66.08 per share. Compensation costs charged against income were $0.8 million, $0.7 million, and $0.3 million for the years ended December 31, 2021, 2020, and 2019, respectively. Dividends Various state insurance laws restrict the amount that an insurance subsidiary may pay in the form of dividends, loans or advances without the prior approval of regulatory authorities. Also, that portion of an insurance subsidiary’s net equity which results from differences between statutory insurance accounting practices and GAAP would not be available for cash dividends, loans or advances. Kemper’s insurance subsidiaries paid dividends of $347.0 million to Kemper in 2021. In 2022, Kemper’s insurance subsidiaries would be able to pay $191.2 million in dividends to Kemper without prior regulatory approval. Kemper’s insurance subsidiaries had net assets of $4.5 billion, determined in accordance with GAAP, that were restricted from payment to Kemper without prior regulatory approval at December 31, 2021. Kemper’s insurance subsidiaries are required to file financial statements prepared on the basis of statutory insurance accounting practices, a comprehensive basis of accounting other than GAAP. Statutory capital and surplus for the Company’s life and health insurance subsidiaries was $446.0 million and $430.4 million at December 31, 2021 and 2020, respectively. Statutory net income (loss) for the Company’s life and health insurance subsidiaries was $(12.4) million, $60.7 million and $90.4 million for the years ended December 31, 2021, 2020 and 2019, respectively. Statutory capital and surplus for the Company’s property and casualty insurance subsidiaries was $1.5 billion and $1.7 billion at December 31, 2021 and 2020, respectively. Statutory net income (loss) for the Company’s property and casualty insurance subsidiaries was $(206.9) million, $361.6 million and $347.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. Statutory capital and surplus and statutory net income exclude parent company operations. Kemper’s insurance subsidiaries are also required to hold minimum levels of statutory capital and surplus to satisfy regulatory requirements. The minimum statutory capital and surplus, or company action level risk-based capital (“RBC”), necessary to satisfy regulatory requirements for the Company’s life and health insurance subsidiaries collectively was $157.7 million at December 31, 2021. The minimum statutory capital and surplus necessary to satisfy regulatory requirements for the Company’s NOTE 14. SHAREHOLDERS’ EQUITY (Continued) property and casualty insurance subsidiaries collectively was $668.2 million at December 31, 2021. Company action level RBC is the level at which a company is required to file a corrective action plan with its regulators and is equal to 200% of the authorized control level RBC. In 2021, Kemper issued dividends and dividend equivalents of $81.0 million, of which $80.6 million was paid to shareholders. Except for certain financial covenants under Kemper’s credit agreement or during any period in which Kemper elects to defer interest payments, there are no restrictions on Kemper’s ability to pay dividends to its shareholders. Certain financial covenants, namely minimum net worth and a maximum debt to total capitalization ratio, under Kemper’s credit agreement could limit the amount of dividends that Kemper may pay to shareholders at December 31, 2021. Kemper had the ability to pay without restrictions of $1.2 billion in dividends to its shareholders and still be in compliance with all financial covenants under its credit agreement at December 31, 2021. |
Pension Benefits
Pension Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension Benefits | PENSION BENEFITS Kemper sponsors a qualified defined benefit pension plan (the “Pension Plan”). The Pension Plan covers approximately 3,145 participants and beneficiaries. Effective January 1, 2006, the Pension Plan was closed to new hires and, effective June 30, 2016, benefit accruals were frozen for substantially all of the participants under the Pension Plan. The Pension Plan is generally non-contributory, but participation requires or required some employees to contribute 3% of pay, as defined, per year. Benefits for participants who are or were required to contribute to the Pension Plan are based on compensation during plan participation and the number of years of participation. Benefits for the vast majority of participants who are not required to contribute to the Pension Plan are based on years of service and final average pay, as defined. The Company funds the Pension Plan in accordance with the requirements of ERISA. Changes in Fair Value of Plan Assets and Changes in Projected Benefit Obligation for the Pension Plan for the years ended December 31, 2021 and 2020 is presented below. DOLLARS IN MILLIONS 2021 2020 Fair Value of Plan Assets at Beginning of Year $ 405.4 $ 664.6 Actual Return on Plan Assets (0.7) 92.1 Employer Contributions — — Benefits Paid (13.0) (145.9) Settlement Benefits — (205.4) Fair Value of Plan Assets at End of Year 391.7 405.4 Projected Benefit Obligation at Beginning of Year 382.3 660.5 Interest Cost 7.2 16.5 Benefits Paid (13.0) (145.9) Settlement Benefits — (205.4) Plan Amendments 18.3 — Actuarial (Gains) Losses (16.0) 56.6 Projected Benefit Obligation at End of Year 378.8 382.3 Funded Status—Plan Assets in Excess (Deficit) of Projected Benefit Obligation $ 12.9 $ 23.1 Unamortized Amount Reported in AOCI at End of Year $ (77.6) $ (68.2) Accumulated Benefit Obligation at End of Year $ 378.8 $ 382.3 The measurement dates of the assets and liabilities at end of year presented in the preceding table under the headings, “2021” and “2020” were December 31, 2021 and December 31, 2020, respectively. In 2021, the Plan was amended to update the actuarial equivalence used to determine both the early retirement factors and the optional form factors as of December 31, 2021. The result of this amendment was an increase to the Projected Benefit Obligation of $18.3 million, which was recognized in Prior Service Cost for the year ended December 31, 2021. NOTE 15. PENSION BENEFITS (Continued) The weighted-average discount rate and rate of increase in future compensation levels used to estimate the components of the Projected Benefit Obligation for the Pension Plan at December 31, 2021 and 2020 were: 2021 2020 Discount Rate 2.89 % 2.56 % Rate of Increase in Future Compensation Levels 3.40 3.40 Asset allocations for the Pension Plan at December 31, 2021 and 2020 by asset category were: ASSET CATEGORY 2021 2020 Corporate Bonds and Notes 30 % 37 % Common and Preferred Stocks — 24 Bond Exchange Traded Funds 32 27 Cash and Short-term Investments 36 2 Other Assets 2 10 Total 100 % 100 % The investment objective of the Pension Plan is to produce current income and long-term capital growth through a combination of equity and fixed income investments which, together with appropriate employer contributions and any required employee contributions, is adequate to provide for the payment of the benefit obligations of the Pension Plan. The assets of the Pension Plan may be invested in fixed income and equity investments or any other investment vehicle or financial instrument deemed appropriate. Fixed income investments may include cash and short-term instruments, U.S. Government securities, corporate bonds, mortgages and other fixed income investments. Equity investments may include various types of stock, such as large-cap, mid-cap and small-cap stocks, and may also include investments in investment companies, collective investment funds and Kemper common stock (subject to Section 407 and other requirements of ERISA). The Pension Plan has not invested in Kemper common stock. The trust investment committee for the Pension Plan, along with its third party fiduciary advisor, periodically reviews the performance of the Pension Plan’s investments and asset allocation. Several external investment managers, one of which is Fayez Sarofim & Co. (see Note 25, “Related Parties,” to the Consolidated Financial Statements), manage the equity investments of the trust for the Pension Plan. Each manager is allowed to exercise investment discretion, subject to limitations, if any, established by the trust investment committee for the Pension Plan. All other investment decisions are made by the Company, subject to general guidelines as set by the trust investment committee for the Pension Plan. The Company determines its Expected Long Term Rate of Return on Plan Assets based primarily on the Company’s expectations of future returns, with consideration to historical returns, for the Pension Plan’s investments, based on target allocations of the Pension Plan’s investments. NOTE 15. PENSION BENEFITS (Continued) The fair values of pension plan assets are estimated using the same methodologies and inputs as those used to determine the fair values for the respective asset category of the Company. These methodologies and inputs are disclosed in Note 10, “Fair Value Measurements,” to the Consolidated Financial Statements. Fair value measurements for the Pension Plan’s assets at December 31, 2021 are summarized below. DOLLARS IN MILLIONS Quoted Prices Significant Significant Measured at Net Asset Value Fair Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 54.6 $ — $ — $ — $ 54.6 States and Political Subdivisions — 0.1 — — 0.1 Foreign Governments — 0.6 — — 0.6 Corporate Bonds and Notes — 62.3 — — 62.3 Equity Securities: Other Equity Interests: Bond Exchange Traded Funds 125.0 — — — 125.0 Limited Liability Companies and Limited Partnerships — — — 8.4 8.4 Short-term Investments 140.2 — — — 140.2 Receivables and Other 0.5 — — — 0.5 Total $ 320.3 $ 63.0 $ — $ 8.4 $ 391.7 Fair value measurements for the Pension Plan’s assets at December 31, 2020 are summarized below. DOLLARS IN MILLIONS Quoted Prices Significant Significant Measured at Net Asset Value Fair Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 68.3 $ — $ — $ — $ 68.3 States and Political Subdivisions — 0.7 — — 0.7 Corporate Bonds and Notes — 81.3 — — 81.3 Equity Securities: Common Stocks: Other Industries 64.8 — — — 64.8 Other Equity Interests: Collective Investment Funds — — — 32.1 32.1 Bond Exchange Traded Funds 108.6 — — — 108.6 Limited Liability Companies and Limited Partnerships — — — 41.6 41.6 Short-term Investments 7.4 — — — 7.4 Receivables and Other 0.6 — — — 0.6 Total $ 249.7 $ 82.0 $ — $ 73.7 $ 405.4 NOTE 15. PENSION BENEFITS (Continued) The components of Comprehensive Pension Expense (Income) for the Pension Plan for the years ended December 31, 2021, 2020 and 2019 were: DOLLARS IN MILLIONS 2021 2020 2019 Service Cost Earned During the Year $ — $ — $ — Interest Cost on Projected Benefit Obligation 7.2 16.5 22.3 Expected Return on Plan Assets (9.5) (27.6) (30.6) Amortization of Actuarial Loss 2.9 5.6 2.9 Settlement Expense — 64.1 — Pension Expense (Income) Recognized in Consolidated Statements of Income 0.6 58.6 (5.4) Unrecognized Pension Gain (Loss) Arising During the Year (6.0) (7.8) 4.2 Prior Service Credit Arising During the Year 18.3 — — Amortization of Accumulated Unrecognized Pension Loss (2.9) (69.8) (2.9) Comprehensive Pension Expense (Income) $ 10.0 $ (19.0) $ (4.1) The actuarial loss included in AOCI at December 31, 2021 is being amortized over approximately 27 years, the remaining average estimated life expectancy of participants. The Company estimates that Pension Income for the Pension Plan for the year ended December 31, 2022 will include expense of $3.7 million resulting from the amortization of the related accumulated actuarial loss included in AOCI at December 31, 2021. Settlements In the fourth quarter of 2020, the Company’s defined benefit pension plan purchased annuities on behalf of certain plan participants currently receiving benefits and offered to make lump-sum payments to certain inactive, vested plan participants that are not currently receiving benefit payments and elected to receive lump-sum payments. Group annuity contracts were purchased from Banner Life Insurance Company (“Banner”) for $205.4 million for a portion of plan participants for whom Banner irrevocably assumed the pension obligations. For plan participants who elected lump-sum payments during the election window, a payment of $117.1 million was distributed. These transactions resulted in a partial settlement of the defined pension plan and a $50.6 million noncash settlement charge to net income for the unamortized net unrecognized postretirement benefit costs related to the settled obligations. The weighted-average discount rate, service cost discount rate, interest cost discount rate, rate of increase in future compensation levels and expected long-term rate of return on plan assets used to develop the components of Pension Expense for the Pension Plan for the years ended December 31, 2021, 2020 and 2019 were: 2021 2020 2019 Weighted-average Discount Rate 2.56 % 2.56 % 4.28 % Service Cost Discount Rate 2.41 2.42 4.26 Interest Cost Discount Rate 1.90 1.89 3.91 Rate of Increase in Future Compensation Levels 3.40 3.40 3.40 Expected Long Term Rate of Return on Plan Assets 2.70 4.90 5.70 The Company did not contribute to the Pension Plan in 2020 or 2021. The Company does not expect that it will be required to contribute to the Pension Plan in 2022, but could make a voluntary contribution pursuant to the maximum funding limits under ERISA. The following benefit payments (net of participant contributions), which consider expected future service of certain participants that remain eligible for a benefit accrual, as appropriate, are expected to be paid from the Pension Plan: DOLLARS IN MILLIONS Years Ending December 31, 2022 2023 2024 2025 2026 2027-2031 Estimated Pension Benefit Payments $ 17.0 $ 16.5 $ 17.3 $ 18.1 $ 18.7 $ 97.9 NOTE 15. PENSION BENEFITS (Continued) The Company also sponsors a non-qualified supplemental defined benefit pension plan (the “ Supplemental Plan”). Benefit accruals for all par ticipants in the Supplemental Plan were frozen effective June 30, 2016. The unfunded liability related to the Supplemental Plan was $28.0 million and $30.7 million at December 31, 2021 and 2020, respectively. Pension expense for the Supplemental Plan was $0.7 million, $0.8 million, and $1.0 million for the years ended December 31, 2021, 2020 and 2019, respectively. An actuarial gain of $1.3 million before taxes, an actuarial loss of $2.7 million before taxes and an actuarial loss of $5.6 million before taxes are included in Other Comprehensive Income (Loss) for the years ended December 31, 2021, 2020 and 2019, respectively. |
Postretirement Benefits Other T
Postretirement Benefits Other Than Pensions | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Postretirement Benefits Other Than Pensions | PENSION BENEFITS Kemper sponsors a qualified defined benefit pension plan (the “Pension Plan”). The Pension Plan covers approximately 3,145 participants and beneficiaries. Effective January 1, 2006, the Pension Plan was closed to new hires and, effective June 30, 2016, benefit accruals were frozen for substantially all of the participants under the Pension Plan. The Pension Plan is generally non-contributory, but participation requires or required some employees to contribute 3% of pay, as defined, per year. Benefits for participants who are or were required to contribute to the Pension Plan are based on compensation during plan participation and the number of years of participation. Benefits for the vast majority of participants who are not required to contribute to the Pension Plan are based on years of service and final average pay, as defined. The Company funds the Pension Plan in accordance with the requirements of ERISA. Changes in Fair Value of Plan Assets and Changes in Projected Benefit Obligation for the Pension Plan for the years ended December 31, 2021 and 2020 is presented below. DOLLARS IN MILLIONS 2021 2020 Fair Value of Plan Assets at Beginning of Year $ 405.4 $ 664.6 Actual Return on Plan Assets (0.7) 92.1 Employer Contributions — — Benefits Paid (13.0) (145.9) Settlement Benefits — (205.4) Fair Value of Plan Assets at End of Year 391.7 405.4 Projected Benefit Obligation at Beginning of Year 382.3 660.5 Interest Cost 7.2 16.5 Benefits Paid (13.0) (145.9) Settlement Benefits — (205.4) Plan Amendments 18.3 — Actuarial (Gains) Losses (16.0) 56.6 Projected Benefit Obligation at End of Year 378.8 382.3 Funded Status—Plan Assets in Excess (Deficit) of Projected Benefit Obligation $ 12.9 $ 23.1 Unamortized Amount Reported in AOCI at End of Year $ (77.6) $ (68.2) Accumulated Benefit Obligation at End of Year $ 378.8 $ 382.3 The measurement dates of the assets and liabilities at end of year presented in the preceding table under the headings, “2021” and “2020” were December 31, 2021 and December 31, 2020, respectively. In 2021, the Plan was amended to update the actuarial equivalence used to determine both the early retirement factors and the optional form factors as of December 31, 2021. The result of this amendment was an increase to the Projected Benefit Obligation of $18.3 million, which was recognized in Prior Service Cost for the year ended December 31, 2021. NOTE 15. PENSION BENEFITS (Continued) The weighted-average discount rate and rate of increase in future compensation levels used to estimate the components of the Projected Benefit Obligation for the Pension Plan at December 31, 2021 and 2020 were: 2021 2020 Discount Rate 2.89 % 2.56 % Rate of Increase in Future Compensation Levels 3.40 3.40 Asset allocations for the Pension Plan at December 31, 2021 and 2020 by asset category were: ASSET CATEGORY 2021 2020 Corporate Bonds and Notes 30 % 37 % Common and Preferred Stocks — 24 Bond Exchange Traded Funds 32 27 Cash and Short-term Investments 36 2 Other Assets 2 10 Total 100 % 100 % The investment objective of the Pension Plan is to produce current income and long-term capital growth through a combination of equity and fixed income investments which, together with appropriate employer contributions and any required employee contributions, is adequate to provide for the payment of the benefit obligations of the Pension Plan. The assets of the Pension Plan may be invested in fixed income and equity investments or any other investment vehicle or financial instrument deemed appropriate. Fixed income investments may include cash and short-term instruments, U.S. Government securities, corporate bonds, mortgages and other fixed income investments. Equity investments may include various types of stock, such as large-cap, mid-cap and small-cap stocks, and may also include investments in investment companies, collective investment funds and Kemper common stock (subject to Section 407 and other requirements of ERISA). The Pension Plan has not invested in Kemper common stock. The trust investment committee for the Pension Plan, along with its third party fiduciary advisor, periodically reviews the performance of the Pension Plan’s investments and asset allocation. Several external investment managers, one of which is Fayez Sarofim & Co. (see Note 25, “Related Parties,” to the Consolidated Financial Statements), manage the equity investments of the trust for the Pension Plan. Each manager is allowed to exercise investment discretion, subject to limitations, if any, established by the trust investment committee for the Pension Plan. All other investment decisions are made by the Company, subject to general guidelines as set by the trust investment committee for the Pension Plan. The Company determines its Expected Long Term Rate of Return on Plan Assets based primarily on the Company’s expectations of future returns, with consideration to historical returns, for the Pension Plan’s investments, based on target allocations of the Pension Plan’s investments. NOTE 15. PENSION BENEFITS (Continued) The fair values of pension plan assets are estimated using the same methodologies and inputs as those used to determine the fair values for the respective asset category of the Company. These methodologies and inputs are disclosed in Note 10, “Fair Value Measurements,” to the Consolidated Financial Statements. Fair value measurements for the Pension Plan’s assets at December 31, 2021 are summarized below. DOLLARS IN MILLIONS Quoted Prices Significant Significant Measured at Net Asset Value Fair Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 54.6 $ — $ — $ — $ 54.6 States and Political Subdivisions — 0.1 — — 0.1 Foreign Governments — 0.6 — — 0.6 Corporate Bonds and Notes — 62.3 — — 62.3 Equity Securities: Other Equity Interests: Bond Exchange Traded Funds 125.0 — — — 125.0 Limited Liability Companies and Limited Partnerships — — — 8.4 8.4 Short-term Investments 140.2 — — — 140.2 Receivables and Other 0.5 — — — 0.5 Total $ 320.3 $ 63.0 $ — $ 8.4 $ 391.7 Fair value measurements for the Pension Plan’s assets at December 31, 2020 are summarized below. DOLLARS IN MILLIONS Quoted Prices Significant Significant Measured at Net Asset Value Fair Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 68.3 $ — $ — $ — $ 68.3 States and Political Subdivisions — 0.7 — — 0.7 Corporate Bonds and Notes — 81.3 — — 81.3 Equity Securities: Common Stocks: Other Industries 64.8 — — — 64.8 Other Equity Interests: Collective Investment Funds — — — 32.1 32.1 Bond Exchange Traded Funds 108.6 — — — 108.6 Limited Liability Companies and Limited Partnerships — — — 41.6 41.6 Short-term Investments 7.4 — — — 7.4 Receivables and Other 0.6 — — — 0.6 Total $ 249.7 $ 82.0 $ — $ 73.7 $ 405.4 NOTE 15. PENSION BENEFITS (Continued) The components of Comprehensive Pension Expense (Income) for the Pension Plan for the years ended December 31, 2021, 2020 and 2019 were: DOLLARS IN MILLIONS 2021 2020 2019 Service Cost Earned During the Year $ — $ — $ — Interest Cost on Projected Benefit Obligation 7.2 16.5 22.3 Expected Return on Plan Assets (9.5) (27.6) (30.6) Amortization of Actuarial Loss 2.9 5.6 2.9 Settlement Expense — 64.1 — Pension Expense (Income) Recognized in Consolidated Statements of Income 0.6 58.6 (5.4) Unrecognized Pension Gain (Loss) Arising During the Year (6.0) (7.8) 4.2 Prior Service Credit Arising During the Year 18.3 — — Amortization of Accumulated Unrecognized Pension Loss (2.9) (69.8) (2.9) Comprehensive Pension Expense (Income) $ 10.0 $ (19.0) $ (4.1) The actuarial loss included in AOCI at December 31, 2021 is being amortized over approximately 27 years, the remaining average estimated life expectancy of participants. The Company estimates that Pension Income for the Pension Plan for the year ended December 31, 2022 will include expense of $3.7 million resulting from the amortization of the related accumulated actuarial loss included in AOCI at December 31, 2021. Settlements In the fourth quarter of 2020, the Company’s defined benefit pension plan purchased annuities on behalf of certain plan participants currently receiving benefits and offered to make lump-sum payments to certain inactive, vested plan participants that are not currently receiving benefit payments and elected to receive lump-sum payments. Group annuity contracts were purchased from Banner Life Insurance Company (“Banner”) for $205.4 million for a portion of plan participants for whom Banner irrevocably assumed the pension obligations. For plan participants who elected lump-sum payments during the election window, a payment of $117.1 million was distributed. These transactions resulted in a partial settlement of the defined pension plan and a $50.6 million noncash settlement charge to net income for the unamortized net unrecognized postretirement benefit costs related to the settled obligations. The weighted-average discount rate, service cost discount rate, interest cost discount rate, rate of increase in future compensation levels and expected long-term rate of return on plan assets used to develop the components of Pension Expense for the Pension Plan for the years ended December 31, 2021, 2020 and 2019 were: 2021 2020 2019 Weighted-average Discount Rate 2.56 % 2.56 % 4.28 % Service Cost Discount Rate 2.41 2.42 4.26 Interest Cost Discount Rate 1.90 1.89 3.91 Rate of Increase in Future Compensation Levels 3.40 3.40 3.40 Expected Long Term Rate of Return on Plan Assets 2.70 4.90 5.70 The Company did not contribute to the Pension Plan in 2020 or 2021. The Company does not expect that it will be required to contribute to the Pension Plan in 2022, but could make a voluntary contribution pursuant to the maximum funding limits under ERISA. The following benefit payments (net of participant contributions), which consider expected future service of certain participants that remain eligible for a benefit accrual, as appropriate, are expected to be paid from the Pension Plan: DOLLARS IN MILLIONS Years Ending December 31, 2022 2023 2024 2025 2026 2027-2031 Estimated Pension Benefit Payments $ 17.0 $ 16.5 $ 17.3 $ 18.1 $ 18.7 $ 97.9 NOTE 15. PENSION BENEFITS (Continued) The Company also sponsors a non-qualified supplemental defined benefit pension plan (the “ Supplemental Plan”). Benefit accruals for all par ticipants in the Supplemental Plan were frozen effective June 30, 2016. The unfunded liability related to the Supplemental Plan was $28.0 million and $30.7 million at December 31, 2021 and 2020, respectively. Pension expense for the Supplemental Plan was $0.7 million, $0.8 million, and $1.0 million for the years ended December 31, 2021, 2020 and 2019, respectively. An actuarial gain of $1.3 million before taxes, an actuarial loss of $2.7 million before taxes and an actuarial loss of $5.6 million before taxes are included in Other Comprehensive Income (Loss) for the years ended December 31, 2021, 2020 and 2019, respectively. |
Other Postretirement Benefit Plan, Defined Benefit | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Postretirement Benefits Other Than Pensions | POSTRETIREMENT BENEFITS OTHER THAN PENSIONS Kemper and Infinity sponsor other than pension postretirement employee benefit plans (“OPEB”) that together provide medical, dental and/or life insurance benefits to approximately 400 retired and 500 active employees. Kemper has historically self-insured the benefits under the Kemper OPEB Plan. The Kemper medical plan generally provides for a limited number of years of medical insurance benefits at retirement based on the participant’s attained age at retirement and number of years of service until specified dates and generally has required participant contributions, with most contributions adjusted annually. On December 30, 2016, Kemper amended the Kemper OPEB Plan and, effective December 31, 2016, will no longer offer coverage to post-65 Medicare-eligible retirees and Medicare-eligible spouses under the self-insured portion of its coverage. Rather, beginning on January 1, 2017, the Kemper OPEB Plan offers access to a private, third-party Medicare exchange and provides varying levels of a Company-determined subsidy via health reimbursement accounts to certain Medicare-eligible retirees and spouses in order to help fund a portion of the participants’ cost. Further, the amendment eliminates the requirement for such participants to contribute to the Kemper OPEB Plan. In conjunction with the amendment, the Company recorded a pre-tax reduction to its Accumulated Postretirement Benefit Obligation of $11.0 million through Other Comprehensive Income. This prior service credit is being amortized into income over the remaining average life of the Kemper OPEB Plan’s participants. Changes in Fair Value of Plans’ Assets and Changes in Accumulated Postretirement Benefit Obligation for the years ended December 31, 2021 and 2020 were: DOLLARS IN MILLIONS 2021 2020 Fair Value of Plans’ Assets at Beginning of Year $ — $ — Employer Contributions 1.1 1.5 Plan Participants’ Contributions 0.1 0.2 Benefits Paid (1.2) (1.7) Fair Value of Plan Assets at End of Year — — Accumulated Postretirement Benefit Obligation at Beginning of Year 13.7 12.8 Service Cost 0.3 0.2 Interest Cost 0.1 0.3 Plan Participants’ Contributions 0.1 0.2 Benefits Paid (1.2) (1.7) Actuarial (Gain) Loss (1.8) 1.9 Accumulated Postretirement Benefit Obligation at End of Year 11.2 13.7 Funded Status—Accumulated Postretirement Benefit Obligation in Excess of Plans’ Assets $ (11.2) $ (13.7) Unamortized Actuarial Gain Reported in AOCI at End of Year $ 17.5 $ 18.7 The measurement dates of the assets and liabilities at end of year in the preceding table under the headings “2021” and “2020” were December 31, 2021 and December 31, 2020, respectively. NOTE 16. POSTRETIREMENT BENEFITS OTHER THAN PENSIONS (Continued) The weighted-average discount rate and rate of increase in future compensation levels used to develop the components of the Accumulated Postretirement Benefit Obligation at December 31, 2021 and 2020 were: 2021 2020 Discount Rate 2.56 % 2.13 % Rate of Increase in Future Compensation Levels 2.20 2.20 The assumed health care cost trend rate used in measuring the Accumulated Postretirement Benefit Obligation at December 31, 2021 was 6.29% for 2022, gradually declining to 4.8% in the year 2028 and remaining at that level thereafter for medical benefits and 7.04% for 2022, gradually declining to 4.8% in the year 2029 and remaining at that level thereafter for prescription drug benefits. The assumed health care cost trend rate used in measuring the Accumulated Postretirement Benefit Obligation at December 31, 2020 was 6.5% for 2021, gradually declining to 4.8% in the year 2027 and remaining at that level thereafter for medical benefits and 7.5% for 2021, gradually declining to 4.8% in the year 2028 and remaining at that level thereafter for prescription drug benefits. The components of Comprehensive OPEB Expense (Income) for the years ended December 31, 2021, 2020 and 2019 were: DOLLARS IN MILLIONS 2021 2020 2019 Service Cost Earned During the Year $ 0.3 $ 0.2 $ 0.2 Interest Cost on Accumulated Postretirement Benefit Obligation 0.1 0.3 0.4 Amortization of Prior Service Credit (1.3) (1.3) (1.3) Amortization of Accumulated Unrecognized OPEB Gain (1.7) (1.9) (2.4) OPEB Income Recognized in Consolidated Statements of Income (2.6) (2.7) (3.1) Unrecognized OPEB (Gain) Loss Arising During the Year (1.8) 1.9 (1.7) Amortization of Prior Service Credit 1.3 1.3 1.3 Amortization of Accumulated Unrecognized OPEB Gain 1.7 1.9 2.4 Comprehensive OPEB (Income) Expense $ (1.4) $ 2.4 $ (1.1) The Company estimates that OPEB Expense for the year ended December 31, 2022 will include income of $2.9 million resulting from the amortization of the related accumulated actuarial gain and prior service credit included in AOCI at December 31, 2021. The weighted-average discount rate and rate of increase in future compensation levels used to develop OPEB Expense for the years ended December 31, 2021, 2020 and 2019 were: 2021 2020 2019 Weighted-average Discount Rate 1.99 % 2.96 % 4.08 % Service Cost Discount Rate 2.06 2.94 4.16 Interest Cost Discount Rate 1.19 2.47 3.69 Rate of Increase in Future Compensation Levels 2.20 2.20 2.20 The Company expects to contribute $1.2 million, net of the expected Medicare Part D subsidy, to its OPEB Plan to fund benefit payments in 2022. NOTE 16. POSTRETIREMENT BENEFITS OTHER THAN PENSIONS (Continued) The following benefit payments (net of participant contributions), which consider expected future service, as appropriate, are expected to be paid: DOLLARS IN MILLIONS Years Ending December 31, 2022 2023 2024 2025 2026 2027-2031 Estimated Benefit Payments: Excluding Medicare Part D Subsidy $ 1.2 $ 1.2 $ 1.2 $ 1.1 $ 1.0 $ 3.8 Expected Medicare Part D Subsidy — — — — — — Net Estimated Benefit Payments $ 1.2 $ 1.2 $ 1.2 $ 1.1 $ 1.0 $ 3.8 |
Long-term Equity-based Compensa
Long-term Equity-based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Long-Term Equity-Based Compensation | LONG-TERM EQUITY-BASED COMPENSATION On May 5, 2020, Kemper’s shareholders approved the 2020 Omnibus Equity Plan (“2020 Omnibus Plan”). A maximum number of 7,000,000 shares of Kemper common stock may be issued under the 2020 Omnibus Plan (the “Share Authorization”). After the approval date of the 2020 Omnibus Plan, no new awards will be granted under the 2011 Omnibus Equity Plan (“2011 Omnibus Plan”) that had been approved by Kemper’s Shareholders on May 4, 2011, but awards previously granted under the 2011 Omnibus Plan remain outstanding in accordance with their original terms. As of December 31, 2021, there were 5,253,076 common shares available for future grants under the 2020 Omnibus Plan, of which 1,814,274 shares were reserved for future grants based on the performance results under the terms of outstanding performance share units (“PSUs”). The design of the 2020 Omnibus Plan provides for fungible use of shares to determine the number of shares available for future grants, with a fungible conversion factor of three to one, such that the Share Authorization will be reduced at two different rates, depending on the type of award granted. Each share of Kemper common stock issuable upon the exercise of stock options or stock appreciation rights will reduce the number of shares available for future grant under the Share Authorization by one share, while each share of Kemper common stock issued pursuant to “full value awards” will reduce the number of shares available for future grant under the Share Authorization by three shares. “Full value awards” are awards, other than stock options or stock appreciation rights, that are settled by the issuance of shares of Kemper common stock and include time-based restricted stock units (collectively “RSUs”) and PSUs. Outstanding equity-based compensation awards at December 31, 2021 consisted of tandem stock option and stock appreciation rights (“Tandem Awards”), RSUs, PSUs and Deferred Stock Units (“DSUs”). RSUs, PSUs and DSUs give the recipient the right to receive one share of Kemper common stock for each RSU, PSU or DSU issued. Recipients of DSUs received full dividend equivalents on the same basis as all other outstanding shares of Kemper common stock, but do not receive voting rights until such shares are issued. For grants under the 2020 Omnibus Plan, and for grants under the 2011 Plan beginning in November 2017, recipients of RSUs and PSUs receive dividend equivalents on the same basis as all other outstanding shares of Kemper common stock only if, to the extent, and at the time that they vest and on subsequent dividend payment dates after they vest until the awards are settled, and do not receive voting rights until such shares are issued. For grants under the 2011 Plan prior to November 2017, recipients of RSUs and PSUs receive full dividend equivalents on the same basis as all other outstanding shares of Kemper common stock, but do not receive voting rights until such shares are issued. Except as described below for certain equity-based compensation awards granted to each member of the Board of Directors who is not employed by the Company (“Non-employee Directors”), all outstanding awards are subject to forfeiture until certain restrictions have lapsed. For awards subject to a performance condition, the Company recognizes compensation expense based upon the probable outcome of the performance condition, which on the grant date reflects an estimate of attaining 100% of the performance units granted. The estimate is revised if the actual number of PSUs expected to vest is likely to differ from the previous estimate. Compensation expense for awards is recognized on a straight-line basis over the requisite service period. For equity-based compensation awards with a graded vesting schedule, the Company recognizes compensation expense on a straight-line basis over the requisite service period for each separately-vesting portion of the awards as if each award were, in substance, multiple awards. Compensation expense is recognized only for those awards expected to vest, with forfeitures estimated at the date of grant based on the Company’s historical experience and future expectations. Equity-based compensation expense was $28.0 million, $24.9 million and $25.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. Total NOTE 17. LONG-TERM EQUITY-BASED COMPENSATION (Continued) unamortized compensation expense related to unvested awards at December 31, 2021 was $23.6 million, which is expected to be recognized over the next three years ending December 31, 2022, 2023 and 2024. Human Resources and the Compensation Committee of the Board of Directors, or the Board’s authorized designee, has sole discretion to determine the persons to whom awards under the 2020 Omnibus Plan are granted, and the material terms of the awards. For Tandem Awards, material terms include the number of shares covered by such awards and the exercise price, vesting and expiration dates of such awards. Tandem Awards are non-transferable. The exercise price of Tandem Awards is the fair value of Kemper’s common stock on the date of grant. Tandem Awards and RSU awards granted to employees generally vest in three equal annual installments over a period of three years, with the Tandem Awards expiring ten years from the date of grant. Employee PSU awards generally vest over a period of three years, subject to performance results and other restrictions. Under the Non-employee Director compensation program in effect for 2021, each Non-employee Director elected at the 2021 annual shareholder meeting received an annual RSU award with an aggregate grant date fair value of $130,000 (“Director RSUs”) at the conclusion of the meeting, and new Non-employee Directors who joined the Board received an initial award of Director RSUs valued at the percentage of the full grant date fair value of $130,000 that represents the number of quarterly Board meetings the new director was expected to attend during the remaining portion of the then-current annual compensation period that ends on the date of the next annual shareholder meeting. The Director RSUs vest over a period of one year, enable the award holder to make an election to defer the conversion to shares of common stock in accordance with applicable deferral rules, and include the right to receive dividend equivalents on the same basis as all other outstanding shares of Kemper common stock only if, to the extent, and at the time that they vest and on subsequent dividend payment dates after they vest until the awards are settled. Each Non-employee Director elected at the 2020 annual shareholder meeting received an annual Director RSU award with an aggregate grant date fair value of $130,000 at the conclusion of the meeting, and, each Non-employee Director elected at the 2019 annual shareholder meeting received an annual Director RSU award with an aggregate grant date fair value of $130,000 at the conclusion of the meeting, under the Non-employee Director compensation program in effect for the applicable year. The Company uses the Black-Scholes option pricing model to estimate the fair value of each Tandem Award on the date of grant. The expected terms of Tandem Awards are developed by considering the Company’s historical Tandem Award exercise experience, demographic profiles, historical share retention practices of employees and assumptions about their propensity for early exercise in the future. Expected volatility is estimated using weekly historical volatility. The Company believes that historical volatility is currently the best estimate of expected volatility. The dividend yield in 2021, 2020 and 2019 was calculated by taking the natural logarithm of the annualized yield divided by the Kemper common stock price on the date of grant. The risk-free interest rate was the yield on the grant date of U.S. Treasury zero coupon issues with a maturity comparable to the expected term of the option. The assumptions used in the Black-Scholes pricing model for Tandem Awards granted during the years ended December 31, 2021, 2020 and 2019 are presented below. 2021 2020 2019 RANGE OF VALUATION ASSUMPTIONS Expected Volatility 33.67 % - 38.04 % 29.22 % - 37.27 % 28.97 % - 33.78 % Risk-free Interest Rate 0.26 - 1.33 0.17 - 1.46 1.35 - 2.60 Expected Dividend Yield 1.18 - 1.78 1.19 - 1.48 1.05 - 1.38 WEIGHTED-AVERAGE EXPECTED LIFE IN YEARS Employee Grants 4 - 6 4 - 6 4 - 6 NOTE 17. LONG-TERM EQUITY-BASED COMPENSATION (Continued) Tandem Award activity for the year ended December 31, 2021 is presented below. Shares Weighted- Weighted- Aggregate Outstanding at Beginning of the Year 1,900,957 $ 60.97 Granted 406,553 69.88 Exercised (75,802) 60.84 Forfeited or Expired (127,729) 73.59 Outstanding at December 31, 2021 2,103,979 61.93 6.50 $ 12.1 Vested and Expected to Vest at December 31, 2021 2,039,134 $ 61.57 6.44 $ 12.1 Exercisable at December 31, 2021 1,389,206 $ 56.26 5.50 $ 12.0 The weighted-average grant-date fair values of Tandem Awards granted during 2021, 2020 and 2019 were $19.29, $19.24 and $20.99, respectively. Total intrinsic value of Tandem Awards exercised was $1.3 million, $7.1 million and $7.7 million for the years ended December 31, 2021, 2020 and 2019, respectively. Cash received from exercises of Tandem Awards was $3.7 million, $5.0 million and $2.4 million for the years ended December 31, 2021, 2020 and 2019, respectively. Total tax benefit realized for tax deductions from exercises of Tandem Awards was $0.3 million, $1.5 million and $1.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. Information pertaining to Tandem Awards outstanding at December 31, 2021 is presented below. Outstanding Exercisable Range of Exercise Prices ($) Shares Weighted- Weighted- Shares Weighted- $ 20.01 - 30.00 108,562 $ 27.79 4.03 108,562 $ 27.79 30.01 - 40.00 122,906 34.42 3.33 122,906 34.42 40.01 - 50.00 345,616 42.44 4.74 345,616 42.44 50.01 - 60.00 335,000 59.80 5.97 331,639 59.87 60.01 - 70.00 405,923 69.26 8.75 50,325 66.90 70.01 - 80.00 749,520 76.31 7.22 406,480 76.31 80.01 - 90.00 36,452 83.69 6.16 23,678 84.23 20.01 - 90.00 2,103,979 61.93 6.50 1,389,206 56.26 The grant-date fair values of RSUs are determined using the closing price of Kemper common stock on the date of grant. Activity related to nonvested RSUs for the year ended December 31, 2021 is presented below. Time-based Restricted Stock Unit Awards Number of Restricted Stock Units Weighted- Nonvested Balance at Beginning of the Year 132,026 $ 72.30 Granted 38,375 68.38 Vested (81,967) 72.85 Forfeited (6,733) 73.40 Nonvested Balance at December 31, 2021 81,701 $ 69.82 NOTE 17. LONG-TERM EQUITY-BASED COMPENSATION (Continued) The initial number of PSUs awarded to each participant represents the number of Kemper common shares that would vest and be issued if the performance level attained were to be at the “target” performance level. For performance above the target level, each participant would receive a grant of additional shares of stock up to a maximum of 100% of the initial number of PSUs awarded to the participant. The final payout of these awards, and any forfeitures of PSUs for performance below the “target” performance level, will be determined based on the Company’s performance. If, at the end of the applicable performance period, the Company’s performance: • exceeds the “target” performance level, all of the PSUs will vest and additional shares of stock will be issued to the award recipient; • is below the “target” performance level, but at or above a “minimum” performance level, only a portion of the PSUs originally issued to the award recipient will vest; or • is below a “minimum” performance level, none of the PSUs originally issued to the award recipient will vest. Activity related to nonvested PSU awards for the year ended December 31, 2021 is presented below. PSU Awards Number of PSUs Weighted- Nonvested Balance at Beginning of the Year 502,857 $ 78.12 Granted 385,244 72.07 Vested (195,847) 62.18 Forfeited (91,933) 79.96 Nonvested Balance at December 31, 2021 600,321 $ 79.15 The number of additional shares that would be granted if the Company were to meet or exceed the maximum performance levels related to the outstanding PSU awards for the 2021, 2020 and 2019 three-year performance periods was 265,765 common shares, 220,392 common shares and 118,601 common shares, respectively, (as “full value awards,” the equivalent of 797,295 shares, 661,176 shares, and 355,803 shares, respectively, under the Share Authorization) at December 31, 2021. The grant date fair values of the PSU awards with a market performance condition are determined using the Monte Carlo simulation method. The Monte Carlo simulation model produces a risk-neutral simulation of the daily returns on the common stock of Kemper and each of the other companies included in the peer group. Returns generated by the simulation depend on the risk-free interest rate used and the volatilities of, and the correlation between, these stocks. The model simulates stock prices and dividend payouts to the end of the three-year performance period. Total shareholder returns are generated for each of these stocks based on the simulated prices and dividend payouts. The total shareholder returns are then ranked, and Kemper’s simulated ranking is converted to a payout percentage based on the terms of the PSU awards. The payout percentage is applied to the simulated stock price at the end of the performance period, reinvested dividends are added back, and the total is discounted to the valuation date at the risk-free rate. This process is repeated approximately ten thousand times, and the grant date fair value is equal to the average of the results from these trials. Sixty-seven percent of the PSU awards granted to employees in 2021, Sixty-seven percent of the PSU awards granted to employees in 2020 and fifty percent of the PSU awards granted to employees in 2019 are measured using a market performance condition. Fair value for these awards was estimated using the Monte Carlo simulation method described above. Final payout for these awards, and any forfeitures of units for performance below the “target” performance level, will be based on Kemper’s total shareholder return, relative to a peer group comprised of all the companies in the S&P Supercomposite Insurance Index, over a three-year performance period. The three-year performance periods for the 2021, 2020 and 2019 awards end on January 31, 2024, January 31, 2023 and January 31, 2022, respectively. Compensation cost for these awards is recognized ratably over the requisite service period. In the event that the market performance condition is not satisfied, previously recognized compensation cost would not reverse, but it would reverse if the requisite service period is not met. NOTE 17. LONG-TERM EQUITY-BASED COMPENSATION (Continued) Thirty-three percent of the PSU awards granted to employees and officers in 2021, Thirty-three percent of the PSU awards granted to employees in 2020 and fifty percent of the PSU awards granted to employees in 2019 are measured solely using a Company-specific metric. Final payout for these awards, and any forfeitures of shares for performance below the “target” performance level, will be determined based on Kemper’s adjusted return on equity over a three-year performance period. The three-year performance periods for the 2021, 2020 and 2019 awards end on December 31, 2023, December 31, 2022 and December 31, 2021, respectively. Fair value for these awards was determined using the closing price of Kemper common stock on the date of grant. Accruals of compensation cost for these awards are estimated based on the probable outcome of the performance condition. The total fair value of RSUs and PSUs that vested during the year ended December 31, 2021 was $19.6 million. The tax benefits for tax deductions realized from such awards was $4.1 million. The total fair value of RSUs and PSUs that vested during the year ended December 31, 2020 was $20.4 million. The tax benefits for tax deductions realized from such awards was $4.3 million. The total fair value of RSUs and PSUs that vested during the year ended December 31, 2019 was $24.8 million. The tax benefits for tax deductions realized from such awards was $5.2 million. The grant-date fair values of DSU awards granted to Non-employee Directors were determined using the closing price of Kemper common stock on the date of grant. Beginning in 2019 DSU awards are no longer issued to Non-employee Directors. All previously granted shares had vested upon issuance and as such, no DSUs vested during the years ended December 31, 2021, 2020 and 2019. Activity related to DSU awards for the year ended December 31, 2021 is presented below. Number of DSUs Weighted- Vested Balance at Beginning of the Year 44,820 $ 44.74 Reduction for Shares Issued on Conversion — — Vested Balance at December 31, 2021 44,820 $ 44.74 |
Policyholder Contract Liabiliti
Policyholder Contract Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Policyholder Contract Liabilities | POLICYHOLDER OBLIGATIONS Policyholder Obligations at December 31, 2021 and 2020 were as follows: DOLLARS IN MILLIONS December 31, 2021 2020 FHLB Funding Agreements $ 401.9 $ 407.8 Universal Life-type Policyholder Account Balances 102.1 59.2 Total $ 504.0 $ 467.0 Kemper’s subsidiary, United Insurance has entered into funding agreements with the FHLB of Chicago in exchange for cash, which it uses for spread lending purposes. United Insurance received advances of $385.4 million from the FHLB of Chicago and made repayments of $391.3 million under the spread lending program in 2021. United Insurance received advances of $466.4 million and made repayments of $302.0 million from the FHLB of Chicago in 2020 under the spread lending program. When a funding agreement is issued, United Insurance is then required to post collateral in the form of eligible securities including mortgage-backed, government, and agency debt instruments for each of the advances that are entered. The fair value of the collateral pledged must be maintained at certain specified levels above the borrowed amount, which can vary depending on the assets pledged. If the fair value of the collateral declines below these specified levels of the amount borrowed, United Insurance would be required to pledge additional collateral or repay outstanding borrowings. Upon any event of default by United Insurance, the FHLB’s recovery on the collateral is limited to the amount of United Insurance’s liability under the funding agreements to the FHLB of Chicago. NOTE 18. POLICYHOLDER OBLIGATIONS (Continued) United Insurance’s liability under the funding agreements with the FHLB of Chicago, the amount of collateral pledged under such agreements and FHLB of Chicago common stock owned by United Insurance at December 31, 2021 and 2020 is presented below. DOLLARS IN MILLIONS 2021 2020 Liability under Funding Agreements $ 401.9 $ 407.8 Fair Value of Collateral Pledged 556.6 530.5 FHLB of Chicago Common Stock Owned at Cost 11.8 11.8 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Amended and Extended Credit Agreement and Term Loan Facility On June 8, 2018, the Company entered into an amended and extended credit agreement and term loan facility. The amended and extended credit agreement increased the borrowing capacity of the existing unsecured credit agreement to $300.0 million and extended the maturity date to June 8, 2023. On June 4, 2019, the Company utilized the accordion feature under the credit agreement to increase its credit borrowing capacity by $100.0 million, resulting in the available credit commitments increasing from $300.0 million to $400.0 million. The Company incurred $0.1 million in additional debt issuance costs in connection with the utilization of the accordion feature which, in addition to the $0.5 million of remaining unamortized costs under the credit agreement, will be amortized under the remaining term of the credit agreement. There were no outstanding borrowings under the credit agreement at either December 31, 2021 or December 31, 2020. Long-term Debt The Company designates debt obligations as either short-term or long-term based on maturity date at issuance, or, in the case of the 2022 Senior Notes, based on the date of assumption. Total amortized cost of Long-term Debt outstanding at December 31, 2021 and 2020 was: (Dollars in Millions) Dec 31, Dec 31, Term Loan due July 5, 2023 $ — $ 49.9 5.000% Senior Notes due September 19, 2022 276.7 278.3 4.350% Senior Notes due February 15, 2025 449.0 448.8 2.400% Senior Notes due September 30, 2030 396.2 395.8 Total Long-term Debt Outstanding $ 1,121.9 $ 1,172.8 Term Loan Due 2023 On June 4, 2019, the Company entered into a delayed-draw term loan facility with a borrowing capacity of $50.0 million and a maturity date four years from the borrowing date (the “2023 Term Loan”). On July 5, 2019, the Company borrowed $49.9 million, net of debt issuance costs, under the 2023 Term Loan, with a final maturity date of July 5, 2023 (and a mutual option to extend the maturity date by one year). On March 16, 2021, the Company repaid all $50.0 million outstanding borrowings and accrued interest on the 2023 Term Loan. 5.000% Senior Notes Due 2022 The liabilities of Infinity Property and Casualty Corporation (“Infinity”) at the date of Infinity’s acquisition included $275.0 million principal amount, 5.000% Senior Notes due September 19, 2022 (the “2022 Senior Notes”). The 2022 Senior Notes were recorded at fair value as of the acquisition date, $282.1 million, with the $7.1 million premium being amortized as a reduction to interest expense over the remaining term, resulting in an effective interest rate of 4.36%. On November 30, 2018, Kemper executed a guarantee to fully and unconditionally guarantee the payment and performance obligations of the 2022 Senior Notes. NOTE 19. DEBT (Continued) 4.350% Senior Notes Due 2025 Kemper has $450.0 million aggregate principal of 4.350% senior notes due February 15, 2025 (the “2025 Senior Notes”). Kemper initially issued $250.0 million of the notes in February of 2015 and issued an additional $200.0 million of the notes in June of 2017. The additional notes are fungible with the initial notes issued in 2015, and together are treated as part of a single series for all purposes under the indenture governing the 2025 Senior Notes. The 2025 Senior Notes are unsecured and may be redeemed in whole at any time or in part from time to time at Kemper’s option at specified redemption prices. 2.400% Senior Notes Due 2030 Kemper has $400.0 million aggregate principal of 2.400% senior notes due September 30, 2030 (the “2030 Senior Notes”). The net proceeds of issuance were $395.8 million, net of discount and transaction costs for an effective yield of 2.52%. The 2030 Senior Notes are unsecured and may be redeemed in whole at any time or in part from time to time, at Kemper’s option, at specified redemption prices. Short-term Debt Kemper’s subsidiaries, United Insurance, Trinity Universal Insurance Company (“Trinity”) and Alliance are members of the FHLBs of Chicago, Dallas and San Francisco, respectively. As a requirement of membership in the FHLBs, United Insurance, Trinity and Alliance maintain a certain level of investment in FHLB stock. The Company periodically uses short-term FHLB borrowings for a combination of cash management and risk management purposes, in addition to long-term FHLB borrowings for spread lending purposes. There were no short-term debt advances from the FHLBs of Chicago, Dallas or San Francisco outstanding at December 31, 2021 or December 31, 2020. For information on United Insurance’s funding agreement with the FHLB of Chicago in connection with the spread lending program, see Note 18, “Policyholder Obligations,” to the Consolidated Financial Statements. Interest Expense and Interest Paid Interest Expense, including facility fees, accretion of discount, amortization of premium and amortization of issuance costs, was $43.6 million, $36.0 million and $42.5 million for the years ended December 31, 2021, 2020 and 2019 respectively. Interest paid, including facility fees, was $43.9 million, $34.6 million and $44.0 million for the years ended December 31, 2021, 2020 and 2019 respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | LEASES The Company leases certain office space under non-cancelable operating leases, with initial terms typically ranging from one one The following table presents operating lease right-of-use assets and lease liabilities. (Dollars in Millions) 2021 2020 Operating Lease Right-of-Use Assets $ 64.4 $ 68.6 Operating Lease Liabilities 84.8 89.6 NOTE 20. LEASES (Continued) Lease expenses are primarily included in insurance expenses in the Consolidated Statements of Income. Additional information regarding the Company’s operating leases is presented below. (Dollars in Millions) 2021 2020 Lease Cost: Amortization of Right-of-Use Assets - Finance Leases $ 0.2 $ 0.3 Operating Lease Cost 22.3 20.9 Variable Lease Cost 0.2 — Short-Term Lease Cost (1) 5.0 4.6 Total Lease Expense $ 27.7 $ 25.8 Less: Sub-Lease Income 0.3 — Total Lease Cost $ 27.4 $ 25.8 (1) - Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheet. Other Information on Operating Leases Supplemental cash flow information related to the Company’s operating and finance leases for the year ended December 31, 2021 and 2020 is as follows: (Dollars in Millions) 2021 2020 Operating Cash Flows from Operating Lease (Fixed Payments) $ 23.6 $ 15.8 Operating Cash Flows from Operating Lease (Liability Reduction) 20.6 17.5 Financing Cash Flows from Finance Leases 0.2 0.3 Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities 15.5 11.0 Significant judgments and assumptions for determining lease asset and liability at December 31, 2021 and 2020 are presented below. 2021 2020 Weighted-average Remaining Lease Term - Finance Leases 1.0 year 0.7 years Weighted-average Remaining Lease Term - Operating Leases 5.8 years 6.7 years Weighted-average Discount Rate - Finance Leases 0.6 % 4.0 % Weighted-average Discount Rate - Operating Leases 3.4 % 4.0 % Most of the Company’s leases do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of its lease payments. Future minimum lease payments under operating leases at December 31, 2021 are presented below. There are no significant future minimum lease payments under finance leases. (Dollars in Millions) 2022 $ 23.8 2023 21.1 2024 15.2 2025 9.9 2026 4.2 2027 and Thereafter 20.5 Total Future Payments $ 94.7 Less Imputed Interest 9.9 Present Value of Minimum Lease Payments $ 84.8 |
Leases | LEASES The Company leases certain office space under non-cancelable operating leases, with initial terms typically ranging from one one The following table presents operating lease right-of-use assets and lease liabilities. (Dollars in Millions) 2021 2020 Operating Lease Right-of-Use Assets $ 64.4 $ 68.6 Operating Lease Liabilities 84.8 89.6 NOTE 20. LEASES (Continued) Lease expenses are primarily included in insurance expenses in the Consolidated Statements of Income. Additional information regarding the Company’s operating leases is presented below. (Dollars in Millions) 2021 2020 Lease Cost: Amortization of Right-of-Use Assets - Finance Leases $ 0.2 $ 0.3 Operating Lease Cost 22.3 20.9 Variable Lease Cost 0.2 — Short-Term Lease Cost (1) 5.0 4.6 Total Lease Expense $ 27.7 $ 25.8 Less: Sub-Lease Income 0.3 — Total Lease Cost $ 27.4 $ 25.8 (1) - Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheet. Other Information on Operating Leases Supplemental cash flow information related to the Company’s operating and finance leases for the year ended December 31, 2021 and 2020 is as follows: (Dollars in Millions) 2021 2020 Operating Cash Flows from Operating Lease (Fixed Payments) $ 23.6 $ 15.8 Operating Cash Flows from Operating Lease (Liability Reduction) 20.6 17.5 Financing Cash Flows from Finance Leases 0.2 0.3 Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities 15.5 11.0 Significant judgments and assumptions for determining lease asset and liability at December 31, 2021 and 2020 are presented below. 2021 2020 Weighted-average Remaining Lease Term - Finance Leases 1.0 year 0.7 years Weighted-average Remaining Lease Term - Operating Leases 5.8 years 6.7 years Weighted-average Discount Rate - Finance Leases 0.6 % 4.0 % Weighted-average Discount Rate - Operating Leases 3.4 % 4.0 % Most of the Company’s leases do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of its lease payments. Future minimum lease payments under operating leases at December 31, 2021 are presented below. There are no significant future minimum lease payments under finance leases. (Dollars in Millions) 2022 $ 23.8 2023 21.1 2024 15.2 2025 9.9 2026 4.2 2027 and Thereafter 20.5 Total Future Payments $ 94.7 Less Imputed Interest 9.9 Present Value of Minimum Lease Payments $ 84.8 |
Catastrophe Reinsurance
Catastrophe Reinsurance | 12 Months Ended |
Dec. 31, 2021 | |
Reinsurance Disclosures [Abstract] | |
Catastrophe Reinsurance | CATASTROPHE REINSURANCE Catastrophes and natural disasters are inherent risks of the property and casualty insurance business. These catastrophic events and natural disasters include, without limitation, hurricanes, tornadoes, earthquakes, hailstorms, wildfires, high winds and winter storms. Such events result in insured losses that are, and will continue to be, a material factor in the results of operations and financial position of the Company’s property and casualty insurance companies. Further, because the level of these insured losses occurring in any one year cannot be accurately predicted, these losses may contribute to material year-to-year fluctuations in the results of operations and financial position of these companies. Specific types of catastrophic events are more likely to occur at certain times within the year than others. This factor adds an element of seasonality to property and casualty insurance claims. The Company has adopted the industry-wide catastrophe classifications of storms and other events promulgated by the Insurance Services Office (“ISO”) to track and report losses related to catastrophes. ISO classifies a disaster as a catastrophe when the event causes $25.0 million or more in direct insured losses to property and affects a significant number of policyholders and insurers. ISO-classified catastrophes are assigned a unique serial number recognized throughout the insurance industry. The discussions that follow utilize ISO’s definition of catastrophes. The Company manages its exposure to catastrophes and other natural disasters through a combination of geographical diversification, restrictions on the amount and location of new business production in certain regions, and reinsurance. To limit its exposures to catastrophic events, the Company maintains a catastrophe reinsurance program for the property and casualty insurance companies. In 2021, the property business written through the Life & Health segment was included in the catastrophe reinsurance program. Coverage for the catastrophe reinsurance program is provided in various layers through multiple excess of loss reinsurance contracts and an annual aggregate excess property catastrophe reinsurance contract. Coverage on individual catastrophes provided under the excess of loss reinsurance contracts effective January 1, 2021 to December 31, 2021 is provided in various layers as presented below. DOLLARS IN MILLIONS Catastrophe Losses and Percentage In Excess of Up to Retained $ — $ 50.0 — % 1st Layer of Coverage 50.0 150.0 95.0 2nd Layer of Coverage 150.0 250.0 95.0 3rd Layer of Coverage 250.0 275.0 95.0 Coverage on individual catastrophes provided under the excess of loss reinsurance contracts effective January 1, 2020 to December 31, 2020 is provided in various layers as presented below. DOLLARS IN MILLIONS Catastrophe Losses and Percentage In Excess of Up to Retained $ — $ 50.0 — % 1st Layer of Coverage 50.0 150.0 95.0 2nd Layer of Coverage 150.0 250.0 95.0 3rd Layer of Coverage 250.0 275.0 95.0 Coverage on individual catastrophes provided under the excess of loss reinsurance contracts effective January 1, 2019 to December 31, 2019 is provided in various layers as presented below. DOLLARS IN MILLIONS Catastrophe Losses and Percentage In Excess of Up to Retained $ — $ 50.0 — % 1st Layer of Coverage 50.0 150.0 95.0 2nd Layer of Coverage 150.0 250.0 95.0 3rd Layer of Coverage 250.0 275.0 95.0 In the event that the incurred catastrophe losses and LAE covered by the catastrophe reinsurance programs presented in the three preceding tables exceed the retention for that particular layer, each of the programs allow for one reinstatement of such NOTE 21. CATASTROPHE REINSURANCE (Continued) coverage. In such an instance, the Company is required to pay a reinstatement premium to the reinsurers to reinstate the full amount of reinsurance available under such layer. Coverage provided under the 2021 aggregate property catastrophe reinsurance contract is summarized below. Aggregate Catastrophe DOLLARS IN MILLIONS In Excess of Up to Retained $ — $ 60.0 Coverage 60.0 110.0 Coverage provided under the 2020 aggregate property catastrophe reinsurance contract is summarized below. Aggregate Catastrophe DOLLARS IN MILLIONS In Excess of Up to Retained $ — $ 60.0 Coverage 60.0 110.0 The catastrophe reinsurance in 2021, 2020 and 2019 for the property and casualty insurance companies also included reinsurance coverage from the Florida Hurricane Catastrophe Fund (the “FHCF”) for hurricane losses in Florida at retentions lower than those described above. The Life & Health Insurance segment also purchases reinsurance from the FHCF for hurricane losses in Florida. Reinsurance premiums for the Company’s catastrophe reinsurance programs and the FHCF Program reduced earned premiums for the years ended December 31, 2021, 2020 and 2019 by the following: DOLLARS IN MILLIONS 2021 2020 2019 Specialty Property & Casualty Insurance $ 7.0 $ 4.8 $ 0.2 Preferred Property & Casualty Insurance 22.0 20.7 20.2 Life & Health Insurance 1.3 1.2 0.1 Total Ceded Catastrophe Reinsurance Premiums $ 30.3 $ 26.7 $ 20.5 The Company did not pay any reinstatement premiums in 2021, 2020, or 2019. Catastrophe losses and LAE (including reserve development), net of reinsurance recoveries, for the years ended December 31, 2021, 2020 and 2019 by business segment are presented below. DOLLARS IN MILLIONS 2021 2020 2019 Specialty Property & Casualty Insurance $ 16.0 $ 12.5 $ 11.6 Preferred Property & Casualty Insurance 73.5 81.5 44.6 Life & Health Insurance 12.9 12.9 3.9 Total Catastrophe Losses and LAE $ 102.4 $ 106.9 $ 60.1 The Company had no material recoveries under its catastrophe reinsurance treaties for the years ended December 31, 2021 and 2020. Total prior year catastrophe loss and LAE reserves, net of reinsurance recoverables, developed favorably by $5.4 million in 2021, adversely by $0.2 million in 2020 and favorably by $17.1 million in 2019. The Specialty Property & Casualty Insurance segment reported adverse catastrophe reserve development of $0.3 million, $0.2 million, and $0.5 million in 2021, 2020 and 2019, respectively. The Preferred Property & Casualty Insurance segment reported favorable catastrophe reserve development of $5.6 million, $0.5 million and $18.4 million in 2021, 2020 and 2019, respectively. The Life & Health Insurance segment reported favorable catastrophe reserve development of $0.1 million in 2021 and adverse development of $0.5 million and $0.8 million in 2020 and 2019, respectively. NOTE 21. CATASTROPHE REINSURANCE (Continued) The process of estimating and establishing reserves for catastrophe losses is inherently uncertain and the actual ultimate cost of a claim, net of actual reinsurance recoveries, may vary materially from the estimated amount reserved. The Company’s estimates of direct catastrophe losses are generally based on inspections by claims adjusters and historical loss development experience for areas that have not been inspected or for claims that have not yet been reported. The Company’s estimates of direct catastrophe losses are based on the coverages provided by its insurance policies. The Company’s homeowners and dwelling insurance policies do not provide coverage for losses caused by floods, but generally provide coverage for physical damage caused by wind or wind-driven rain. Accordingly, the Company’s estimates of direct losses for homeowners and dwelling insurance do not include losses caused by flood. Depending on the policy, automobile insurance may provide coverage for losses caused by flood. Estimates of the number and severity of claims ultimately reported are influenced by many variables, including, but not limited to, repair or reconstruction costs and determination of cause of loss that are difficult to quantify and will influence the final amount of claim settlements. All these factors, coupled with the impact of the availability of labor and material on costs, require significant judgment in the reserve setting process. A change in any one or more of these factors is likely to result in an ultimate net claim cost different from the estimated reserve. The Company’s estimates of indirect losses from wind pools and joint underwriting associations are based on a variety of factors, including, but not limited to, actual or estimated assessments provided by or received from such entities, insurance industry estimates of losses, and estimates of the Company’s market share in the assessable states. Actual assessments may differ materially from these estimated amounts. In addition to the reinsurance programs described in Note 21, “Catastrophe Reinsurance,” to the Consolidated Financial Statements, Kemper’s insurance subsidiaries utilize other reinsurance arrangements to limit their maximum loss, provide greater diversification of risk and to minimize exposures on larger risks. The ceding of insurance does not discharge the primary liability of the original insurer. Accordingly, insurance reserve liabilities are reported gross of any estimated recovery from reinsurers in the Consolidated Balance Sheets. Amounts recoverable from reinsurers are estimated in a manner consistent with the insurance reserve liability and are included in Other Receivables in the Consolidated Balance Sheets. Earned Premiums ceded on long-duration and short-duration policies were $36.1 million, $31.2 million and $27.4 million for the years ended December 31, 2021, 2020 and 2019, respectively, of which $30.3 million, $26.7 million and $20.5 million, respectively, was related to catastrophe reinsurance. See Note 21, “Catastrophe Reinsurance,” to the Consolidated Financial Statements for additional information regarding the Company’s catastrophe reinsurance programs. Certain insurance subsidiaries assume business from other insurance companies and involuntary pools. Earned Premiums assumed on long-duration and short-duration policies were $56.7 million, $73.8 million and $92.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. Trinity and Capitol County Mutual Fire Insurance Company (“Capitol”) are parties to a quota share reinsurance agreement whereby Trinity assumes 100% of the business written by Capitol, subject to a cap, for ceded losses for dwelling coverage. Earned Premiums assumed by Trinity from Capitol were $17.3 million, $18.1 million and $19.4 million for the years ended December 31, 2021, 2020 and 2019, respectively. Capitol is a mutual insurance company and, accordingly, is owned by its policyholders. Trinity and Old Reliable Casualty Company (“ORCC”), a subsidiary of Capitol, are parties to a quota share reinsurance agreement whereby Trinity assumes 100% of the business written by ORCC, subject to a cap, for ceded losses for dwelling coverage. Earned Premiums assumed by Trinity from ORCC were $4.7 million, $4.9 million and $5.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. Six employees of the Company serve as directors of Capitol’s six member board of directors. Nine employees of the Company also serve as directors of ORCC’s nine member board of directors. Kemper’s subsidiary, United Insurance, provides claims and administrative services to Capitol and ORCC. In addition, agents appointed by Kemper’s subsidiary, The Reliable Life Insurance Company, and who are employed by United Insurance, are also appointed by Capitol and ORCC to sell property insurance products for the Company’s Life & Health Insurance segment. The Company also provides certain investment services to Capitol and ORCC. |
Other Reinsurance
Other Reinsurance | 12 Months Ended |
Dec. 31, 2021 | |
Reinsurance Disclosures [Abstract] | |
Other Reinsurance | CATASTROPHE REINSURANCE Catastrophes and natural disasters are inherent risks of the property and casualty insurance business. These catastrophic events and natural disasters include, without limitation, hurricanes, tornadoes, earthquakes, hailstorms, wildfires, high winds and winter storms. Such events result in insured losses that are, and will continue to be, a material factor in the results of operations and financial position of the Company’s property and casualty insurance companies. Further, because the level of these insured losses occurring in any one year cannot be accurately predicted, these losses may contribute to material year-to-year fluctuations in the results of operations and financial position of these companies. Specific types of catastrophic events are more likely to occur at certain times within the year than others. This factor adds an element of seasonality to property and casualty insurance claims. The Company has adopted the industry-wide catastrophe classifications of storms and other events promulgated by the Insurance Services Office (“ISO”) to track and report losses related to catastrophes. ISO classifies a disaster as a catastrophe when the event causes $25.0 million or more in direct insured losses to property and affects a significant number of policyholders and insurers. ISO-classified catastrophes are assigned a unique serial number recognized throughout the insurance industry. The discussions that follow utilize ISO’s definition of catastrophes. The Company manages its exposure to catastrophes and other natural disasters through a combination of geographical diversification, restrictions on the amount and location of new business production in certain regions, and reinsurance. To limit its exposures to catastrophic events, the Company maintains a catastrophe reinsurance program for the property and casualty insurance companies. In 2021, the property business written through the Life & Health segment was included in the catastrophe reinsurance program. Coverage for the catastrophe reinsurance program is provided in various layers through multiple excess of loss reinsurance contracts and an annual aggregate excess property catastrophe reinsurance contract. Coverage on individual catastrophes provided under the excess of loss reinsurance contracts effective January 1, 2021 to December 31, 2021 is provided in various layers as presented below. DOLLARS IN MILLIONS Catastrophe Losses and Percentage In Excess of Up to Retained $ — $ 50.0 — % 1st Layer of Coverage 50.0 150.0 95.0 2nd Layer of Coverage 150.0 250.0 95.0 3rd Layer of Coverage 250.0 275.0 95.0 Coverage on individual catastrophes provided under the excess of loss reinsurance contracts effective January 1, 2020 to December 31, 2020 is provided in various layers as presented below. DOLLARS IN MILLIONS Catastrophe Losses and Percentage In Excess of Up to Retained $ — $ 50.0 — % 1st Layer of Coverage 50.0 150.0 95.0 2nd Layer of Coverage 150.0 250.0 95.0 3rd Layer of Coverage 250.0 275.0 95.0 Coverage on individual catastrophes provided under the excess of loss reinsurance contracts effective January 1, 2019 to December 31, 2019 is provided in various layers as presented below. DOLLARS IN MILLIONS Catastrophe Losses and Percentage In Excess of Up to Retained $ — $ 50.0 — % 1st Layer of Coverage 50.0 150.0 95.0 2nd Layer of Coverage 150.0 250.0 95.0 3rd Layer of Coverage 250.0 275.0 95.0 In the event that the incurred catastrophe losses and LAE covered by the catastrophe reinsurance programs presented in the three preceding tables exceed the retention for that particular layer, each of the programs allow for one reinstatement of such NOTE 21. CATASTROPHE REINSURANCE (Continued) coverage. In such an instance, the Company is required to pay a reinstatement premium to the reinsurers to reinstate the full amount of reinsurance available under such layer. Coverage provided under the 2021 aggregate property catastrophe reinsurance contract is summarized below. Aggregate Catastrophe DOLLARS IN MILLIONS In Excess of Up to Retained $ — $ 60.0 Coverage 60.0 110.0 Coverage provided under the 2020 aggregate property catastrophe reinsurance contract is summarized below. Aggregate Catastrophe DOLLARS IN MILLIONS In Excess of Up to Retained $ — $ 60.0 Coverage 60.0 110.0 The catastrophe reinsurance in 2021, 2020 and 2019 for the property and casualty insurance companies also included reinsurance coverage from the Florida Hurricane Catastrophe Fund (the “FHCF”) for hurricane losses in Florida at retentions lower than those described above. The Life & Health Insurance segment also purchases reinsurance from the FHCF for hurricane losses in Florida. Reinsurance premiums for the Company’s catastrophe reinsurance programs and the FHCF Program reduced earned premiums for the years ended December 31, 2021, 2020 and 2019 by the following: DOLLARS IN MILLIONS 2021 2020 2019 Specialty Property & Casualty Insurance $ 7.0 $ 4.8 $ 0.2 Preferred Property & Casualty Insurance 22.0 20.7 20.2 Life & Health Insurance 1.3 1.2 0.1 Total Ceded Catastrophe Reinsurance Premiums $ 30.3 $ 26.7 $ 20.5 The Company did not pay any reinstatement premiums in 2021, 2020, or 2019. Catastrophe losses and LAE (including reserve development), net of reinsurance recoveries, for the years ended December 31, 2021, 2020 and 2019 by business segment are presented below. DOLLARS IN MILLIONS 2021 2020 2019 Specialty Property & Casualty Insurance $ 16.0 $ 12.5 $ 11.6 Preferred Property & Casualty Insurance 73.5 81.5 44.6 Life & Health Insurance 12.9 12.9 3.9 Total Catastrophe Losses and LAE $ 102.4 $ 106.9 $ 60.1 The Company had no material recoveries under its catastrophe reinsurance treaties for the years ended December 31, 2021 and 2020. Total prior year catastrophe loss and LAE reserves, net of reinsurance recoverables, developed favorably by $5.4 million in 2021, adversely by $0.2 million in 2020 and favorably by $17.1 million in 2019. The Specialty Property & Casualty Insurance segment reported adverse catastrophe reserve development of $0.3 million, $0.2 million, and $0.5 million in 2021, 2020 and 2019, respectively. The Preferred Property & Casualty Insurance segment reported favorable catastrophe reserve development of $5.6 million, $0.5 million and $18.4 million in 2021, 2020 and 2019, respectively. The Life & Health Insurance segment reported favorable catastrophe reserve development of $0.1 million in 2021 and adverse development of $0.5 million and $0.8 million in 2020 and 2019, respectively. NOTE 21. CATASTROPHE REINSURANCE (Continued) The process of estimating and establishing reserves for catastrophe losses is inherently uncertain and the actual ultimate cost of a claim, net of actual reinsurance recoveries, may vary materially from the estimated amount reserved. The Company’s estimates of direct catastrophe losses are generally based on inspections by claims adjusters and historical loss development experience for areas that have not been inspected or for claims that have not yet been reported. The Company’s estimates of direct catastrophe losses are based on the coverages provided by its insurance policies. The Company’s homeowners and dwelling insurance policies do not provide coverage for losses caused by floods, but generally provide coverage for physical damage caused by wind or wind-driven rain. Accordingly, the Company’s estimates of direct losses for homeowners and dwelling insurance do not include losses caused by flood. Depending on the policy, automobile insurance may provide coverage for losses caused by flood. Estimates of the number and severity of claims ultimately reported are influenced by many variables, including, but not limited to, repair or reconstruction costs and determination of cause of loss that are difficult to quantify and will influence the final amount of claim settlements. All these factors, coupled with the impact of the availability of labor and material on costs, require significant judgment in the reserve setting process. A change in any one or more of these factors is likely to result in an ultimate net claim cost different from the estimated reserve. The Company’s estimates of indirect losses from wind pools and joint underwriting associations are based on a variety of factors, including, but not limited to, actual or estimated assessments provided by or received from such entities, insurance industry estimates of losses, and estimates of the Company’s market share in the assessable states. Actual assessments may differ materially from these estimated amounts. In addition to the reinsurance programs described in Note 21, “Catastrophe Reinsurance,” to the Consolidated Financial Statements, Kemper’s insurance subsidiaries utilize other reinsurance arrangements to limit their maximum loss, provide greater diversification of risk and to minimize exposures on larger risks. The ceding of insurance does not discharge the primary liability of the original insurer. Accordingly, insurance reserve liabilities are reported gross of any estimated recovery from reinsurers in the Consolidated Balance Sheets. Amounts recoverable from reinsurers are estimated in a manner consistent with the insurance reserve liability and are included in Other Receivables in the Consolidated Balance Sheets. Earned Premiums ceded on long-duration and short-duration policies were $36.1 million, $31.2 million and $27.4 million for the years ended December 31, 2021, 2020 and 2019, respectively, of which $30.3 million, $26.7 million and $20.5 million, respectively, was related to catastrophe reinsurance. See Note 21, “Catastrophe Reinsurance,” to the Consolidated Financial Statements for additional information regarding the Company’s catastrophe reinsurance programs. Certain insurance subsidiaries assume business from other insurance companies and involuntary pools. Earned Premiums assumed on long-duration and short-duration policies were $56.7 million, $73.8 million and $92.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. Trinity and Capitol County Mutual Fire Insurance Company (“Capitol”) are parties to a quota share reinsurance agreement whereby Trinity assumes 100% of the business written by Capitol, subject to a cap, for ceded losses for dwelling coverage. Earned Premiums assumed by Trinity from Capitol were $17.3 million, $18.1 million and $19.4 million for the years ended December 31, 2021, 2020 and 2019, respectively. Capitol is a mutual insurance company and, accordingly, is owned by its policyholders. Trinity and Old Reliable Casualty Company (“ORCC”), a subsidiary of Capitol, are parties to a quota share reinsurance agreement whereby Trinity assumes 100% of the business written by ORCC, subject to a cap, for ceded losses for dwelling coverage. Earned Premiums assumed by Trinity from ORCC were $4.7 million, $4.9 million and $5.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. Six employees of the Company serve as directors of Capitol’s six member board of directors. Nine employees of the Company also serve as directors of ORCC’s nine member board of directors. Kemper’s subsidiary, United Insurance, provides claims and administrative services to Capitol and ORCC. In addition, agents appointed by Kemper’s subsidiary, The Reliable Life Insurance Company, and who are employed by United Insurance, are also appointed by Capitol and ORCC to sell property insurance products for the Company’s Life & Health Insurance segment. The Company also provides certain investment services to Capitol and ORCC. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The tax effects of temporary differences that give rise to significant portions of the Company’s Net Deferred Income Tax Assets and Deferred Income Tax Liabilities at December 31, 2021 and 2020 were: DOLLARS IN MILLIONS 2021 2020 Deferred Income Tax Assets: Insurance Reserves $ 31.9 $ 18.4 Unearned Premium Reserves 78.3 66.7 Tax Capitalization of Policy Acquisition Costs 46.6 46.6 Payroll and Employee Benefit Accruals 36.4 35.6 Net Operating Loss Carryforwards 3.6 1.1 Other 11.6 13.4 Total Deferred Income Tax Assets 208.4 181.8 Deferred Income Tax Liabilities: Investments 209.1 258.8 Deferred Policy Acquisition Costs 142.4 123.7 Life VIF and P&C Customer Relationships 4.6 5.0 Goodwill and Other Intangible Assets Acquired 38.0 35.5 Depreciable Assets 38.7 42.1 Other 2.6 2.4 Total Deferred Income Tax Liabilities 435.4 467.5 Net Deferred Income Tax Liabilities $ 227.0 $ 285.7 The expiration of federal net operating loss (“NOL”) carryforwards and their related deferred income tax assets at December 31, 2021 is presented below by year of expiration. DOLLARS IN MILLIONS NOL Carry-forwards Deferred Tax Asset Expiring in: 2027 $ 0.8 $ 0.2 2028 4.4 0.9 No Expiration 12.3 2.5 Total All Years $ 17.5 $ 3.6 The NOL carryforwards were acquired in connection with business acquisitions made in prior years and are subject to annual usage limitations under the Internal Revenue Code. The Company expects to fully utilize these federal NOL carryforwards. A reconciliation of the beginning and ending amount of Unrecognized Tax Benefits for the years ended December 31, 2021, 2020 and 2019 is presented below. DOLLARS IN MILLIONS 2021 2020 2019 Liabilities for Unrecognized Tax Benefits at Beginning of Year $ — $ — $ 4.4 Additions for Tax Positions of Current Year — — — Reductions for Tax Positions of Prior Years — — (4.4) Liabilities for Unrecognized Tax Benefits at End of Year $ — $ — $ — There were no Unrecognized Tax Benefits at December 31, 2021 and 2020. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. There were no liabilities for accrued interest and penalties as of December 31, 2021 and 2020. NOTE 23. INCOME TAXES (Continued) The statute of limitations related to Kemper and its eligible subsidiaries’ consolidated Federal income tax returns is closed for all tax years up to and including 2011. As a result of the Company filing amended federal income tax returns, tax years 2012 and 2013 are under limited examination with respect to carryback adjustments associated with the amended returns. The statute of limitations related to tax years 2014, 2015, 2016 and 2017 has been extended to September 30, 2022. Tax years 2018, 2019 and 2020 are subject to a statute of three years from the extended due dates of October 15, 2019, 2020 and 2021, respectively. The expiration of the statute of limitations related to the various state income tax returns that Kemper and its subsidiaries file varies by state. The components of Income Tax Expense from Operations for the years ended December 31, 2021, 2020 and 2019 were: DOLLARS IN MILLIONS 2021 2020 2019 Current Income Tax Benefit (Expense) $ 122.7 $ (86.6) $ (66.4) Deferred Income Tax Benefit (Expense) 2.1 (13.6) (68.5) (Increase) Decrease Unrecognized Tax Benefits — — 4.4 Income Tax Benefit (Expense) $ 124.8 $ (100.2) $ (130.5) Income taxes paid, net of income tax refunds received, were $38.0 million, $55.8 million, and $68.1 million in 2021, 2020, and 2019, respectively. A reconciliation of the Statutory Federal Income Tax Benefit (Expense) and Rate to the Company’s Effective Income Tax Benefit (Expense) and Rate from Operations for the years ended December 31, 2021, 2020 and 2019 is presented below. DOLLARS IN MILLIONS 2021 2020 2019 Amount Rate Amount Rate Amount Rate Statutory Federal Income Tax Benefit (Expense) $ 51.5 21.0 % $ (107.1) 21.0 % $ (138.9) 21.0 % Tax-exempt Income and Dividends Received Deduction 4.6 1.9 4.0 (0.8) 4.3 (0.7) Untaxed Earnings on Company-Owned Life Insurance 5.4 2.2 2.7 (0.5) 1.6 (0.2) Investment tax credits 66.1 27.0 3.2 (0.6) — — Stock-Based Compensation 0.3 0.1 2.2 (0.5) 4.4 (0.7) Nondeductible Executive Compensation (2.7) (1.1) (2.7) 0.5 (2.5) 0.4 Other, Net (0.4) (0.2) (2.5) 0.5 0.6 (0.1) Effective Income Tax Benefit (Expense) $ 124.8 50.9 % $ (100.2) 19.6 % $ (130.5) 19.7 % Comprehensive Income Tax (Expense) Benefit included in the Consolidated Financial Statements for the years ended December 31, 2021, 2020 and 2019 was: DOLLARS IN MILLIONS 2021 2020 2019 Income Tax Benefit (Expense): Operations $ 124.8 $ (100.2) $ (130.5) Unrealized Depreciation (Appreciation) on Securities (60.1) (78.3) (85.2) Tax Effects from Postretirement Benefit Plans (2.4) (15.3) 1.7 Tax Effects from Cash Flow Hedge 0.1 — (0.1) Comprehensive Income Tax (Expense) Benefit $ 62.4 $ (193.8) $ (214.1) |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | CONTINGENCIES In the ordinary course of its businesses, the Company is involved in legal proceedings including lawsuits, arbitrations, regulatory examinations, audits and inquiries. Except with regard to the matters discussed below, based on currently available information, the Company does not believe that it is reasonably possible that any of its pending legal proceedings will have a material effect on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. Over the last decade there have been multiple initiatives that intend, in various ways, to impose new duties on life insurance companies to proactively search for information related to the deaths of their insureds. These initiatives, which include legislation, audits, regulatory examinations and litigation, seek to alter the terms of life insurance contracts by imposing requirements that did not exist and were not contemplated at the time the issuing companies entered into such contracts. In 2016, the Company voluntarily began implementation of a comprehensive process to compare the records of its life insurance subsidiaries against one or more death verification databases to determine if any of its insureds may be deceased. Attempts to estimate the ultimate outcomes of the aforementioned initiatives entail uncertainties including but not limited to the (i) scope and interpretation of pertinent statutes, including the matching criteria and methodologies to be used in comparing policy records against a death verification database, (ii) universe of policies affected, (iii) results of audits, examinations and other actions by regulators, (iv) results of the Company’s voluntary process, and (v) outcomes of any related litigation. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Parties | RELATED PARTIES Christopher B. Sarofim, a director of Kemper, is Vice Chairman and a member of the board of directors of Fayez Sarofim & Co. (“FS&C”), a registered investment advisory firm. FS&C provided investment management services to the Pension Plan. As part of the Pension Plan’s partial settlement of the pension obligations in 2020, the Pension Plan disposed of all assets managed by FS&C. Accordingly, the agreement between the Pension Plan and FS&C was terminated effective January 31, 2021. As described in Note 22, “Other Reinsurance,” to the Consolidated Financial Statements, the Company also has certain relationships with Capitol, a mutual insurance company that is owned by its policyholders, and its subsidiary, ORCC. |
Schedule 1 - Investments Other
Schedule 1 - Investments Other Than Investments in Related Parties | 9 Months Ended |
Sep. 30, 2021 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule of Investments Other than Investments in Related Parties | KEMPER CORPORATION AND SUBSIDIARIES INVESTMENTS OTHER THAN INVESTMENTS IN RELATED PARTIES DECEMBER 31, 2021 (Dollars in Millions) Amortized Fair Value Amount Fixed Maturities: Bonds and Notes: United States Government and Government Agencies and Authorities $ 610.1 $ 637.4 $ 637.4 States and Political Subdivisions 1,752.5 1,890.1 1,890.1 Foreign Governments 6.7 5.5 5.5 Corporate Securities: Other Bonds and Notes 3,929.0 4,386.9 4,386.9 Redeemable Preferred Stocks 7.0 7.4 7.4 Collateralized Loan Obligations 756.0 752.1 752.1 Other Mortgage- and Asset-backed 296.9 307.5 307.5 Total Investments in Fixed Maturities 7,358.2 7,986.9 7,986.9 Equity Securities at Fair Value: Preferred Stocks 51.8 51.8 51.8 Common Stocks 21.8 21.8 21.8 Other Equity Interests 757.0 757.0 757.0 Total Investments in Equity Securities 830.6 830.6 830.6 Equity Securities at Modified Cost 32.3 XXX.X 32.3 Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings 241.9 XXX.X 241.9 Alternative Energy Partnership Investments 39.6 XXX.X 39.6 Convertible Securities at Fair Value 46.4 46.4 46.4 Loans, Real Estate and Other Investments 925.6 XXX.X 925.6 Short-term Investments 284.1 XXX.X 284.1 Total Investments $ 9,758.7 $ 10,387.4 See Accompanying Report of Independent Registered Public Accounting Firm. |
Schedule 2 - Parent Company F_2
Schedule 2 - Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Financial Statements | SCHEDULE II KEMPER CORPORATION PARENT COMPANY BALANCE SHEETS (Dollars in Millions) December 31, 2021 2020 ASSETS Investments in Subsidiaries $ 4,729.1 $ 4,896.0 Fixed Maturities at Fair Value (Amortized Cost: 2021 – $0.3; 2020 - $91.8) 0.4 99.8 Equity Securities at Fair Value (Cost: 2021 - $106.8; 2020 - $73.4) 107.4 78.8 Short-term Investments 96.9 508.2 Cash 27.7 46.0 Other Receivables 2.3 1.1 Right-of-Use Assets 12.8 13.4 Other Assets 18.9 29.2 Total Assets $ 4,995.5 $ 5,672.5 LIABILITIES AND SHAREHOLDERS’ EQUITY Term Loan due July 5, 2023 (Fair Value: 2021 – $—; 2020 – $50.0) $ — $ 49.9 Senior Notes Payable, 4.35% due 2025 (Fair Value: 2021 – $481.4; 2020 – $499.5) 449.0 448.8 Senior Notes Payable, 2.40% due 2030 (Fair Value: 2021 – $387.8, 2020 – $405.6) 396.2 395.8 Current Income Tax Liability 18.5 41.5 Deferred Income Tax Liability 46.5 38.9 Liabilities for Benefit Plans 42.3 47.6 Right-of-Use Liabilities 25.8 26.9 Accrued Expenses and Other Liabilities 9.5 59.7 Total Liabilities 987.8 1,109.1 Shareholders’ Equity: Common Stock 6.4 6.5 Additional Paid-in Capital 1,790.7 1,805.2 Retained Earnings 1,762.5 2,071.2 Accumulated Other Comprehensive Income 448.1 680.5 Total Shareholders’ Equity 4,007.7 4,563.4 Total Liabilities and Shareholders’ Equity $ 4,995.5 $ 5,672.5 See Accompanying Report of Independent Registered Public Accounting Firm. KEMPER CORPORATION PARENT COMPANY STATEMENTS OF INCOME (Dollars in Millions) For the Year Ended December 31, 2021 2020 2019 Net Investment Income $ 3.4 $ 1.4 $ 2.1 Income from Change in Fair Value of Equity Securities 10.0 4.3 1.6 Net Realized Gains (Losses) on Sales of Investments 10.6 0.1 0.3 Total Revenues 24.0 5.8 4.0 Interest Expense 32.0 24.2 28.5 Loss from Early Extinguishment of Debt — — 5.8 Pension Settlement Expense — 64.1 — Other Operating (Benefits) Expenses 5.9 (3.6) 4.0 Total Operating Expenses 37.9 84.7 38.3 Loss before Income Taxes and Equity in Net Income of Subsidiaries (13.9) (78.9) (34.3) Income Tax Benefit (Expense) (0.6) 13.4 9.4 Loss before Equity in Net Income (Loss) of Subsidiaries (14.5) (65.5) (24.9) Equity in Net Income (Loss) of Subsidiaries (106.0) 475.4 556.0 Net Income (Loss) $ (120.5) $ 409.9 $ 531.1 See Accompanying Report of Independent Registered Public Accounting Firm. KEMPER CORPORATION PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME (Dollars in Millions) For the Year Ended December 31, 2021 2020 2019 Net Income (Loss) $ (120.5) $ 409.9 $ 531.1 Other Comprehensive Income (Loss): Changes in Net Unrealized Gains (Losses) on Investment Securities: Having No Credit Losses Recognized in Consolidated Statements of Income (Loss): Securities Held by Subsidiaries (230.4) 378.7 433.2 Securities Held by Parent — 8.0 0.2 Having Credit Losses Recognized in Consolidated Statements of Income (Loss): Securities Held by Subsidiaries (2.0) (2.6) — Reclassification Adjustment for Amounts Included in Net Income (Loss): Securities Held by Subsidiaries (43.5) (16.6) (27.9) Securities Held by Parent (10.6) (0.1) (0.2) Unrecognized Postretirement Benefit Costs Arising During the Year: Securities Held by Subsidiaries 0.6 — (0.6) Securities Held by Parent (9.5) 3.6 (4.2) Reclassification Adjustments for Amounts Included in Net Income (Loss): Pension Settlement Cost Recognized — 64.1 — Amortization of Unrecognized Postretirement Benefits (Costs) 0.1 2.5 (3.0) Gains (Losses) on Cash Flow Hedge 0.5 0.4 0.4 Other Comprehensive Income (Loss) before Income Taxes (294.8) 438.0 397.9 Income Tax Benefit (Expense): Changes in Net Unrealized Gains (Losses) on Investment Securities: Having No Credit Losses Recognized in Consolidated Statements of Income (Loss): Securities Held by Subsidiaries 48.4 (80.6) (91.0) Securities Held by Parent — (1.7) — Having Credit Losses Recognized in Consolidated Statements of Income (Loss): Securities Held by Subsidiaries 0.4 0.5 — Reclassification Adjustment for Amounts Included in Net Income (Loss): Securities Held by Subsidiaries 9.1 3.5 5.8 Securities Held by Parent 2.2 — — Unrecognized Postretirement Benefit Costs Arising During the Year: Securities Held by Subsidiaries (0.1) — — Securities Held by Parent 2.5 (1.3) 1.0 Reclassification Adjustments for Amounts Included in Net Income (Loss): Pension Settlement Cost Recognized — (13.5) — Amortization of Unrecognized Postretirement Benefit Costs — (0.5) 0.7 Changes in Gain (Loss) on Cash Flow Hedges (0.1) — (0.1) Income Tax Benefit (Expense) 62.4 (93.6) (83.6) Other Comprehensive Income (Loss) (232.4) 344.4 314.3 Total Comprehensive Income (Loss) $ (352.9) $ 754.3 $ 845.4 See Accompanying Report of Independent Registered Public Accounting Firm. KEMPER CORPORATION PARENT COMPANY STATEMENTS OF CASH FLOWS (Dollars in Millions) For the Year Ended December 31, 2021 2020 2019 Operating Activities: Net Income (Loss) $ (120.5) $ 409.9 $ 531.1 Adjustment Required to Reconcile Net Income (Loss) to Net Cash Provided by Operations: Equity in Net Income (Loss) of Subsidiaries 106.0 (475.4) (556.0) Cash Dividends from Subsidiaries 170.3 216.2 239.0 Net Realized Investment (Gains) Losses (10.6) (0.1) (0.3) Settlement Costs Related to Defined Benefit Pension Plan — 64.1 — Contribution to Defined Benefit Pension Plan — — (55.3) Loss from Early Extinguishment of Debt — — 5.8 Decrease (Increase) in Value of Equity and Convertible Securities at Fair Value (10.0) (4.3) (1.6) Other, Net (35.3) 52.2 9.8 Net Cash Provided by Operating Activities 99.9 262.6 172.5 Investing Activities: Capital Contributed to Subsidiaries (36.5) (62.0) (83.0) Capital Distribution from Subsidiaries — — 85.0 Proceeds from Sales, Calls and Maturities of Fixed Maturities 181.3 2.0 12.7 Proceeds from the Sales or Paydowns of Investments: Equity Securities 28.5 2.2 15.3 Purchases of Investments: Equity Securities (48.7) (21.0) (48.9) Net Sales (Purchases) of Short-term Investments 411.3 (415.7) (23.3) Acquisition of Business (370.9) — — Net Cash Provided (Used) by Investing Activities 165.0 (494.5) (42.2) Financing Activities: Net Proceeds from Issuance of Long-term Debt — 395.6 49.9 Repayments of Long-term Debt (50.0) — (185.0) Proceeds from Issuance of Common Stock, Net of Transaction Costs — — 127.5 Proceeds from Shares Issued under Employee Stock Purchase Plan 5.4 4.4 1.6 Common Stock Repurchases (161.7) (110.4) — Dividends and Dividend Equivalents Paid (80.6) (78.9) (67.8) Other 3.7 5.4 2.4 Net Cash Provided (Used) by Financing Activities (283.2) 216.1 (71.4) Increase (Decrease) in Cash (18.3) (15.8) 58.9 Cash, Beginning of Year 46.0 61.8 2.9 Cash, End of Year $ 27.7 $ 46.0 $ 61.8 See Accompanying Report of Independent Registered Public Accounting Firm. KEMPER CORPORATION FINANCIAL INFORMATION OF KEMPER CORPORATION NOTES TO FINANCIAL INFORMATION (Dollars in Millions) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial information of Kemper Corporation (“Kemper” or the “Parent Company”) should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in Item 8 of this Form 10-K. Kemper’s subsidiaries are accounted for using the equity method of accounting. Equity in net income (loss) of these subsidiaries is presented on the Statements of Operations as Equity in Net Income (Loss) of Subsidiaries. NOTE 2. GUARANTEES On November 30, 2018 Kemper executed a guarantee to fully and unconditionally guarantee the payment and performance obligations of the 5.0% Senior Notes due September 19, 2022 of Infinity Property and Casualty Corporation, a wholly owned subsidiary of Kemper. NOTE 3. SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Kemper received $189.0 million and $106.0 million of securities in non-cash settlement of dividends from subsidiaries in 2021 and 2020, respectively. Kemper made non-cash capital contributions of $103.3 million to subsidiaries in 2021. Kemper did not make any non-cash capital contributions in 2020. NOTE 4. LEASES Kemper leases certain office space for its current and former corporate headquarters under non-cancelable operating leases. The following table presents operating lease ROU assets and lease liabilities at December 31, 2021 and 2020. DOLLARS IN MILLIONS 2021 2020 Operating Lease Right-of-Use Assets $ 12.8 $ 13.4 Operating Lease Liabilities 25.8 26.9 Supplemental cash flow information related to Kemper’s operating leases for the year-ended December 31, 2021 and December 31, 2020 respectively are presented follows. DOLLARS IN MILLIONS 2021 2020 Operating Cash Flows from Operating Leases (Fixed Payments) $ 2.2 $ (2.1) Operating Cash Flows from Operating Leases (Liability Reduction) 1.1 0.3 Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities — — Significant judgments and assumptions for determining lease asset and liability as December 31, 2021 and December 31, 2020 respectively are presented below. DOLLARS IN MILLIONS 2021 2020 Weighted-average Remaining Lease Term - Operating Leases 11.9 years 13.0 years Weighted-average Discount Rate - Operating Leases 4.0 % 4.0 % Kemper’s leases do not provide an implicit rate. Accordingly, Kemper uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of its lease payments. KEMPER CORPORATION FINANCIAL INFORMATION OF KEMPER CORPORATION NOTES TO FINANCIAL INFORMATION (Dollars in Millions) NOTE 4. LEASES (Continued) Future minimum operating lease payments at December 31, 2021 were: DOLLARS IN MILLIONS Operating 2022 $ 2.4 2023 2.4 2024 2.5 2025 2.6 2026 2.6 2027 and Thereafter 20.4 Total Future Payments $ 32.9 Less Discount 7.1 Present Value of Minimum Lease Payments $ 25.8 |
Schedule 3 - Supplementary Insu
Schedule 3 - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | KEMPER CORPORATION AND SUBSIDIARIES SUPPLEMENTARY INSURANCE INFORMATION (Dollars in Millions) Year Ended December 31, At December 31 Earned Premiums Premiums Other Net Insurance Amortization Other Deferred Insurance Unearned 2021 Specialty Property & Casualty Insurance $ 3,948.5 $ 4,057.3 $ 4.1 $ 152.5 $ 3,593.7 $ 546.7 $ 227.8 $ 219.0 $ 2,319.7 $ 1,545.9 Preferred Property & Casualty Insurance 651.7 642.0 — 68.6 537.4 103.8 102.6 49.2 433.2 331.6 Life & Health Insurance (1) 653.5 N/A (1.3) 202.7 469.7 33.8 325.1 409.4 3,544.5 21.2 Other — N/A 2.0 3.5 — — (121.7) — 16.2 — Total $ 5,253.7 N/A $ 4.8 $ 427.3 $ 4,600.8 $ 684.3 $ 533.8 $ 677.6 $ 6,313.6 $ 1,898.7 2020 Specialty Property & Casualty Insurance $ 3,335.3 $ 3,435.5 $ 1.8 $ 114.1 $ 2,378.4 $ 497.5 $ 154.4 $ 177.4 $ 1,544.8 $ 1,262.9 Preferred Property & Casualty Insurance 688.2 653.0 0.1 37.7 503.1 111.2 109.9 51.2 411.6 329.2 Life & Health Insurance (1) 648.7 N/A 0.6 198.8 442.0 33.1 301.8 360.7 3,532.1 23.0 Other — N/A 92.1 (2.4) 0.1 — (107.4) — 21.5 — Total $ 4,672.2 N/A $ 94.6 $ 348.2 $ 3,323.6 $ 641.8 $ 458.7 $ 589.3 $ 5,510.0 $ 1,615.1 2019 Specialty Property & Casualty Insurance $ 3,078.4 $ 3,211.3 $ 7.0 $ 107.5 $ 2,278.9 $ 224.9 $ 330.7 Preferred Property & Casualty Insurance 750.3 739.3 — 44.1 508.8 120.1 113.2 Life & Health Insurance (1) 643.7 N/A 8.5 206.4 402.7 63.3 270.7 Other — N/A 20.0 6.3 (2.1) — (103.2) Total $ 4,472.4 N/A $ 35.5 $ 364.3 $ 3,188.3 $ 408.3 $ 611.4 (1) The Company’s Life & Health Insurance employee-agents also market certain property and casualty insurance products under common management. Accordingly, the Company includes the results of these property and casualty insurance products in its Life & Health Insurance segment. See Accompanying Report of Independent Registered Public Accounting Firm. |
Schedule 4 - Reinsurance Schedu
Schedule 4 - Reinsurance Schedule | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Reinsurance Schedule | KEMPER CORPORATION REINSURANCE SCHEDULE (Dollars in Millions) Gross Ceded to Assumed Net Percentage Year Ended December 31, 2021 Life Insurance in Force $ 20,287.7 $ 372.3 $ 144.5 $ 20,059.9 0.7 % Premiums: Life Insurance $ 401.9 $ 0.9 $ 0.7 $ 401.7 0.2 % Accident and Health Insurance 185.8 0.3 4.4 189.9 2.3 Property and Liability Insurance 4,667.4 34.9 29.6 4,662.1 0.6 Total Premiums $ 5,255.1 $ 36.1 $ 34.7 $ 5,253.7 0.7 % Year Ended December 31, 2020 Life Insurance in Force $ 19,706.2 $ 387.7 $ 152.3 $ 19,470.8 0.8 % Premiums: Life Insurance $ 386.0 $ 1.1 $ 0.8 $ 385.7 0.2 % Accident and Health Insurance 195.5 1.6 5.4 199.3 2.7 Property and Liability Insurance 4,071.1 28.5 44.6 4,087.2 1.1 Total Premiums $ 4,652.6 $ 31.2 $ 50.8 $ 4,672.2 1.1 % Year Ended December 31, 2019 Life Insurance in Force $ 19,479.9 $ 411.6 $ 162.8 $ 19,231.1 0.8 % Premiums: Life Insurance $ 383.6 $ 1.2 $ 0.9 $ 383.3 0.2 % Accident and Health Insurance 188.5 1.7 5.3 192.1 2.8 Property and Liability Insurance 3,835.4 24.5 86.1 3,897.0 2.2 Total Premiums $ 4,407.5 $ 27.4 $ 92.3 $ 4,472.4 2.1 % See Accompanying Report of Independent Registered Public Accounting Firm. |
Summary of Accounting Policie_2
Summary of Accounting Policies and Accounting Changes (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Investments | Investments Investments in Fixed Maturities include bonds, notes and redeemable preferred stocks. Investments in Fixed Maturities are classified as available for sale and reported at fair value. Net Investment Income, including amortization of purchased premiums and accretion of market discounts, on Investments in Fixed Maturities is recognized as interest over the period that it is earned using the effective yield method. Unrealized appreciation or depreciation, net of applicable deferred income taxes, on fixed maturities classified as available for sale is reported in Accumulated Other Comprehensive Income (“AOCI”) included in Shareholders’ Equity. Investments in Convertible Securities include fixed maturities with equity conversion features. The Company has elected the fair value option method of accounting for investments in Convertible Securities and records Convertible Securities at fair value on the Consolidated Balance Sheets. Changes in fair value of Convertible Securities are recorded in the Consolidated Statements of Income during the period such changes occur. Equity investments include common stocks, non-redeemable preferred stocks, exchange traded funds, money market mutual funds and limited liability companies and investment partnerships in which the Company’s interests are deemed minor. Equity investments with readily determinable fair values are recorded as Equity Securities at Fair Value on the Consolidated Balance Sheets. The changes in the fair value of such equity securities are reported in the Consolidated Statements of Income. Dividend income on investments in common and non-redeemable preferred stocks is recognized on the ex-dividend date. The Company holds certain equity investments without readily determinable fair values at cost, less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer on the Consolidated Balance Sheets as Equity Securities at Modified Cost. Changes in the carrying value of Modified Cost investments due to observable price changes are recorded as Income (Loss) from Change in Fair Value of Equity and Convertible Securities. Equity Method Limited Liability Investments include investments in limited liability investment companies and limited partnerships in which the Company’s interests are not deemed minor and are accounted for under the equity method of accounting whereby changes in net asset values are recorded in Net Investment Income in the Consolidated Statements of Income. Certain partnerships for which results are not available on a timely basis are reported on a lag. Investments in Alternative Energy Partnerships are measured using the “HLBV” method of equity method accounting whereby changes in the estimated amount the Company would receive upon the liquidation and distribution of the equity investment’s net assets, are recorded in Net Investment Income. Tax credits allocated from investments in Alternative Energy Partnerships are recognized using the flow-through method, where credits are recorded as a reduction to tax expense in the period earned. Differences in the basis calculated under tax law and U.S. GAAP are recognized using the income statement approach, where basis differences are recorded to Income Tax Expense immediately, rather than deferred as adjustments to the carrying value of the asset. Certain partnerships for which results are not available on a timely basis are reported on a lag. Short-term Investments include certificates of deposit and other fixed maturities that mature within one year from the date of purchase, U.S. Treasury bills, money market mutual funds and overnight interest-bearing accounts. Short-term Investments are reported at cost, which approximates fair value. Other Investments primarily include COLI, loans to policyholders, real estate and mortgage loans. COLI is reported at cash surrender value with changes due to cost of insurance and investment experience reported in Net Investment Income in the Consolidated Statements of Income. Loans to policyholders are carried at unpaid principal balance. Real estate is carried at cost, net of accumulated depreciation. Real estate is depreciated over the estimated useful life of the asset using the straight-line method of depreciation. Real estate is evaluated for impairment when events or circumstances indicate the carrying value may not be recoverable. An impairment loss on real estate is recognized when the carrying value exceeds the sum of undiscounted projected future cash flows as well as the fair value, or, in the case of a property classified as held for sale, when the carrying value exceeds the fair value, net of costs to sell. Mortgage loans are carried at amortized cost, net of a reserve for expected credit losses as applicable. The following accounting policy has been updated effective January 1, 2020 to reflect the Company's adoption of ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments as described above . NOTE 2. SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES (Continued) Investments in Fixed Maturities - Allowance for Expected Credit Losses For fixed maturity investments that the Company intends to sell or for which it is more likely than not that the Company will be required to sell before an anticipated recovery of value, the full amount of the impairment is reported in Impairment Losses. The Company writes down the investment’s amortized cost to its fair value, and will not adjust for any subsequent recoveries. For fixed maturity investments that the Company does not intend to sell or for which it is more likely than not that the Company will not be required to sell before an anticipated recovery of value, the Company will evaluate whether a decline in fair value below the amortized cost basis has occurred from a credit loss or other factors (non-credit related). Considerations in the credit loss assessment include (1) extent to which the fair value has been less than amortized cost, (2) conditions related to the security, an industry, or a geographic area, (3) payment structure of the investment and the likelihood of the issuer's ability to make contractual cash flows, (4) defaults or other collectability concerns related to the issuer, (5) changes in the ratings assigned by a rating agency and (6) other credit enhancements that affect the investment’s expected performance. Any increase or decrease in the expected allowance for credit losses related to investments is recognized in Impairment Losses. The expected allowance for credit losses is limited by the amount that the fair value is less than the amortized cost basis and is adjusted for any additional expected credit losses or subsequent recoveries. The amortized cost basis of the investment is not adjusted for the expected allowance for credit loss. The impairment related to other factors (non-credit related) is reported in Other Comprehensive Income, net of applicable taxes. The Company reports accrued investment income separately for available-for-sale fixed maturity securities and has elected not to measure an allowance for credit losses on accrued investment income. Accrued investment income is written off through Impairment Losses at the time the issuer of the bond defaults or is expected to default on interest payments. |
Fair Value Measurements | Fair Value Measurements The Company uses a hierarchical framework which prioritizes and ranks the market observability of inputs used in fair value measurements. Market price observability is affected by a number of factors, including the type of asset or liability and the characteristics specific to the asset or liability being measured. Assets and liabilities with readily available, active, quoted market prices or for which fair value can be measured from actively quoted prices generally are deemed to have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. The Company classifies the inputs used to measure fair value into one of three levels as follows: • Level 1 — Quoted prices in an active market for identical assets or liabilities; • Level 2 — Observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and • Level 3 — Significant unobservable inputs for the asset or liability being measured. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs Costs directly associated with the successful acquisition of business, principally commissions and certain premium taxes and policy issuance costs, are deferred. Costs deferred on property and casualty insurance contracts and short duration health insurance contracts are amortized over the period in which premiums are earned. Costs deferred on traditional life insurance products and other long-duration insurance contracts are primarily amortized over the anticipated premium-paying period of the related policies in proportion to the ratio of the annual premiums to the total premiums anticipated, which is estimated using the same assumptions used in calculating policy reserves. |
Goodwill | Goodwill The cost of an acquired entity over the fair value of net assets acquired is reported as Goodwill. Goodwill is not amortized, but rather is tested for recoverability annually or when certain triggering events require testing. |
Insurance Reserves | Insurance Reserves Reserves for losses and LAE on property and casualty insurance coverage and health insurance coverage represent the estimated claim cost and loss adjustment expense necessary to cover the ultimate net cost of investigating and settling all losses incurred and unpaid at the end of any given accounting period. Such estimates are based on individual case estimates for reported claims and estimates for incurred but not reported (“IBNR”) losses, including expected development on reported claims. These estimates are adjusted in the aggregate for ultimate loss expectations based on historical experience patterns and current economic trends, with any change in the estimated ultimate liabilities being reported in the Consolidated Statements of Income in the period of change. Changes in such estimates may be material. |
Policyholder Contract Liabilities | Policyholder Obligations Policyholder Obligations include Federal Home Loan Bank (“FHLB”) funding agreements used for spread lending purposes and universal life-type policyholder contracts and are stated at account balances. The following accounting policy has been updated effective January 1, 2020 to reflect the Company's adoption of ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments as described below . Receivables from Policyholders - Allowance for Expected Credit Losses The allowance for credit losses is a valuation account that is deducted from the receivables from policyholders based on the net amount expected to be collected on the insurance contract. Receivables from policyholders are charged off against the allowance when management believes the uncollectability of the receivable is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management estimates the allowance using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience on the receivables from policyholders provide the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current environmental conditions, primarily unemployment rates that could impact an insured’s ability to pay premiums. |
Other Receivables | Other Receivables Other Receivables primarily include reinsurance recoverables and accrued investment income. Reinsurance Recoverables were $41.9 million and $50.1 million at December 31, 2021 and 2020, respectively. Accrued Investment Income was $79.6 million and $77.1 million at December 31, 2021 and 2020, respectively. |
Other Assets | Other Assets Other Assets primarily include property and equipment, internal use software, right-of-use assets, insurance licenses acquired in business combinations, the value of other intangible assets acquired and prepaid expenses. Property and equipment is depreciated over the useful lives of the assets, generally using the straight-line or double declining balance methods of depreciation depending on the asset involved. Internal use software is amortized over the useful life of the asset using the straight-line method of amortization and is evaluated for recoverability upon identification of impairment indications. Insurance licenses acquired in business combinations and other indefinite life intangibles are not amortized, but rather tested periodically for recoverability. The Company accounts for the value of business acquired (“VOBA”) based on actuarial estimates of the present value of future cash flows embedded in insurance in force as of an acquisition date. VOBA was $19.0 million and $20.3 million at December 31, 2021 and 2020, respectively. VOBA is amortized over the expected profit emergence period of the policies in force as of the acquisition date. The Company evaluates VOBA assets for recoverability annually. The Company accounts for the future profits embedded in customer relationships (“Customer Relationships”) acquired based on the present value of estimated future cash flows from such relationships. Customer Relationships was $5.7 million and $3.4 million at December 31, 2021 and 2020, respectively, and are amortized on a straight-line basis over the estimated useful life of the relationship. Customer Relationships are tested for recoverability using undiscounted projections of future cash flows and written down to estimated fair value if the carrying value exceeds the sum of such projections of undiscounted cash flows. The Company accounts for the present value of the future profits embedded in broker or agent relationships acquired (“Agent Relationships”) based on the present value of estimated future cash flows from such acquired relationships or, using the cost recovery method, which estimates the ultimate cost to build a comparable distribution network. Agent Relationships was $58.0 million and $57.6 million at December 31, 2021 and 2020, respectively, and are amortized on a straight-line basis over the estimated useful life of the relationship. Agent Relationships are tested for recoverability using undiscounted projections of future cash flows and written down to estimated fair value if the carrying value exceeds the sum of such projections of undiscounted cash flows. |
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities Accrued Expenses and Other Liabilities primarily include drafts payable, accrued salaries and commissions, pension benefits, postretirement medical benefits, lease liability and accrued taxes, licenses and fees. |
Recognition of Earned Premiums and Related Expenses | Recognition of Earned Premiums and Related Expenses Property and casualty insurance and short duration health insurance premiums are deferred when written and recognized and earned ratably over the periods to which the premiums relate. Unearned Premiums represent the portion of the premiums written related to the unexpired portion of policies in force which has been deferred and is reported as a liability. The Company performs a premium deficiency analysis typically at a segment level, namely Specialty Property & Casualty Insurance and Preferred Property & Casualty Insurance, which is consistent with the manner in which the Company acquires and services policies and measures profitability. Anticipated investment income is excluded from such analysis. A premium deficiency is recognized when the sum of expected claim costs, claim adjustment expenses, unamortized deferred policy acquisition costs and maintenance costs exceeds the related unearned premiums by first reducing related deferred policy acquisition costs to an amount, but not below zero, at which the premium deficiency would not exist. If a premium deficiency remains after first reducing deferred policy acquisition costs, a premium deficiency reserve is established and reported as a liability in the Company’s financial statements. Traditional life insurance premiums are recognized as revenue when due. Policyholders’ benefits are associated with related premiums to result in recognition of profits over the periods for which the benefits are provided using the net level premium method. NOTE 2. SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES (Continued) Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses include provisions for future policy benefits under life and certain accident and health insurance contracts and provisions for reported claims, estimates for IBNR claims and loss adjustment expenses. Benefit payments in excess of policy account balances are expensed. |
Reinsurance | Reinsurance In the normal course of business, Kemper’s insurance subsidiaries reinsure certain risks above certain retention levels with other insurance enterprises. These reinsurance agreements do not relieve Kemper’s insurance subsidiaries of their legal obligations to the policyholder. Amounts recoverable from reinsurers are included in Other Receivables. Gains related to long-duration reinsurance contracts are deferred and amortized over the life of the underlying reinsured policies. Losses related to long-duration reinsurance contracts are recognized immediately. Any gain or loss associated with reinsurance agreements for which Kemper’s insurance subsidiaries have been legally relieved of their obligations to the policyholder is recognized in the period of relief. |
Change in Accounting and Adoption of New Accounting Standards | Adoption of New Accounting Guidance Guidance Adopted in 2021 In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . ASU 2019-12 is intended to simplify accounting for income taxes by eliminating certain exceptions to the guidance in ASC Topic 740, Income Taxes , related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. Further, ASU 2019-12 clarifies that single-member limited liability companies and similar disregarded entities that are not subject to income tax are not required to recognize an allocation of consolidated income tax expense in their separate financial statements, but they could elect to do so. ASU 2019-12 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods. The adoption of ASU 2019-12 did not have a material effect on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the FASB Emerging Issues) , which clarifies the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. ASU 2020-01 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods. The adoption of ASU 2020-01 did not have a material effect on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain NOTE 2. SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES (Continued) criteria are met. The guidance in ASU 2020-04, if elected, shall apply to contract modifications if the terms that are modified directly replace, or have the potential to replace, a reference rate with another interest rate index. If other terms are contemporaneously modified in a manner that changes, or has the potential to change, the amount or timing of contractual cash flows, the guidance in ASU 2020-04 shall apply only if those modifications are related to the replacement of a reference rate. ASU 2020-04 is effective for contract modifications made between March 12, 2020 through December 31, 2022. The adoption of ASU 2020-04 did not have a material effect on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The Company will continue to evaluate the impact of this guidance on its financial statements. In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs , which clarifies that an entity should re-evaluate whether a callable debt security is within the scope of paragraph 310-20-35-33 for each reporting period. ASU 2020-08 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods. The adoption of ASU 2020-08 did not have a material effect on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The Company has adopted all other recently issued accounting pronouncements with effective dates prior to January 1, 2022. There were no adoptions of such accounting pronouncements during the year ended December 31, 2021 that had a material impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. Guidance Not Yet Adopted In August 2018, the FASB issued ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to Accounting for Long-Duration Contracts . ASU 2018-12 amends the accounting model for certain long-duration insurance contracts and requires the insurer to provide additional disclosures in annual and interim reporting periods. In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of ASU 2018-12 by one year for public business entities. ASU 2018-12 is now effective for fiscal years beginning after December 15, 2022, and interim periods within those annual periods. The amendments in ASU 2018-12 (i) require cash flow assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited pay long duration contracts to be updated at least annually with the recognition and remeasurement recorded in net income, require the discount rate used in measuring the liability to be an upper-medium grade fixed-income instrument yield, which is to be updated at each reporting period, and recognized in other comprehensive income, (ii) simplify the amortization of deferred acquisition costs to be amortized on a constant level basis over the expected term of the contract, (iii) require all market risk benefits to be measured at fair value, and (iv) enhance certain presentation and disclosure requirements which include disaggregated rollforwards for liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, deferred acquisition costs, and information about significant inputs, judgments and methods used in the measurement. The Company plans to adopt using the modified retrospective transition method and is currently evaluating the impact of this guidance on its financial statements. |
Income from Continuing Operat_2
Income from Continuing Operations Per Unrestricted Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | A reconciliation of the numerator and denominator used in the calculation of Basic Net Income (Loss) Per Unrestricted Share and Diluted Net Income (Loss) Per Unrestricted Share for the years ended December 31, 2021, 2020 and 2019 is presented below. 2021 2020 2019 DOLLARS IN MILLIONS Net Income (Loss) $ (120.5) $ 409.9 $ 531.1 Less: Net Income Attributed to Participating Awards — 0.4 1.7 Net Income (Loss) Attributed to Unrestricted Shares (120.5) 409.5 529.4 Dilutive Effect on Income of Equity-based Compensation Equivalent Shares — — — Diluted Net Income (Loss) Attributed to Unrestricted Shares $ (120.5) $ 409.5 $ 529.4 SHARES IN THOUSANDS Weighted-average Unrestricted Shares Outstanding 64,264.4 65,636.1 65,880.9 Equity-based Compensation Equivalent Shares — 1,093.7 667.2 Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution 64,264.4 66,729.8 66,548.1 PER UNRESTRICTED SHARE IN WHOLE DOLLARS Basic Net Income (Loss) Per Unrestricted Share $ (1.87) $ 6.24 $ 8.04 Diluted Net Income (Loss) Per Unrestricted Share $ (1.87) $ 6.14 $ 7.96 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The number of shares of Kemper common stock that were excluded from the calculations of Equity-based Compensation Equivalent Shares and Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution for the years ended December 31, 2021, 2020 and 2019, because the effect of inclusion would be anti-dilutive, is presented below. SHARES IN THOUSANDS 2021 2020 2019 Equity-based Compensation Equivalent Shares 2,180.1 874.5 556.4 Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution 2,180.1 874.5 556.4 |
Acquisition of Business (Tables
Acquisition of Business (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Based on the Company’s allocation of the purchase price, the fair value of the assets acquired and liabilities assumed were: (Dollars in Millions) Fixed Maturities at Fair Value $ 151.2 Equity Securities at Fair Value 82.4 Short-term Investments at Cost which Approximates Fair Value 100.1 Cash 54.3 Receivables from Policyholders 148.9 Other Receivables 2.0 Goodwill 198.0 Current Income Tax Assets 0.3 Other Assets 81.4 Property and Casualty Insurance Reserves (211.1) Unearned Premiums (177.8) Deferred Income Tax Liabilities (7.8) Accrued Expenses and Other Liabilities (51.0) Total Purchase Price $ 370.9 |
Schedule of Intangible Assets and Goodwill | Identifiable definite and indefinite lived intangible assets acquired consisted of the following: (Dollars in Millions) Definite Life Intangibles Value of Business Acquired $ 42.9 Customer Relationships 4.8 Agent Relationships 7.2 Internal-Use Software 6.5 Trade Names 1.8 Indefinite Life Intangible Assets Insurance Licenses $ 2.5 |
Business Acquisition, Pro Forma Information | The following unaudited pro forma information presents the Company’s results of operations as if the acquisition of AAC occurred on January 1, 2020. The adjustments to arrive at the pro forma information below included adjustments for the lost investment income on the cash used to fund the acquisition, amortization of the acquired intangible assets and the exclusion of certain acquisition related costs considered to be non-recurring in nature. Year Ended (Dollars in millions) Dec 31, Dec 31, Total Revenues $ 5,884.2 $ 5,585.7 Total Expenses 6,109.5 5,040.1 Income (Loss) before Income Taxes (225.3) 545.6 Net Income (Loss) $ (105.1) $ 443.0 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Assets | Segment Assets at December 31, 2021 and 2020 were: DOLLARS IN MILLIONS 2021 2020 Specialty Property & Casualty Insurance $ 5,936.5 $ 4,897.1 Preferred Property & Casualty Insurance 1,230.1 1,711.2 Life & Health Insurance 6,062.6 6,457.0 Corporate and Other, Net 1,687.3 1,276.6 Total Assets $ 14,916.5 $ 14,341.9 |
Earned Premiums by Product Line | Earned Premiums by product line for the years ended December 31, 2021, 2020 and 2019 were: DOLLARS IN MILLIONS 2021 2020 2019 Specialty Property & Casualty Insurance: Specialty Automobile $ 3,533.7 $ 3,031.3 $ 2,825.6 Commercial Automobile 414.8 304.0 252.8 Preferred Property & Casualty Insurance: Preferred Automobile 410.5 431.7 470.2 Homeowners 207.3 220.7 241.3 Other Personal Lines 33.9 35.8 38.8 Life & Health Insurance: Life 401.7 385.7 384.6 Accident & Health 189.9 199.3 190.9 Property 61.9 63.7 68.2 Total Earned Premiums $ 5,253.7 $ 4,672.2 $ 4,472.4 |
Segment Revenues | Segment Revenues, including a reconciliation to Total Revenues, for the years ended December 31, 2021, 2020 and 2019 were: DOLLARS IN MILLIONS 2021 2020 2019 Segment Revenues: Specialty Property & Casualty Insurance: Earned Premiums $ 3,948.5 $ 3,335.3 $ 3,078.4 Net Investment Income 152.5 114.1 107.5 Change in Value of Alternative Energy Partnership Investments (29.0) — — Other Income 4.1 1.8 7.0 Total Specialty Property & Casualty Insurance 4,076.1 3,451.2 3,192.9 Preferred Property & Casualty Insurance: Earned Premiums 651.7 688.2 750.3 Net Investment Income 68.6 37.7 44.1 Change in Value of Alternative Energy Partnership Investments (16.3) — — Other Income — 0.1 — Total Preferred Property & Casualty Insurance 704.0 726.0 794.4 Life & Health Insurance: Earned Premiums 653.5 648.7 643.7 Net Investment Income 202.7 198.8 206.4 Change in Value of Alternative Energy Partnership Investments (15.8) — — Other Income (1.3) 0.6 8.5 Total Life & Health Insurance 839.1 848.1 858.6 Total Segment Revenues 5,619.2 5,025.3 4,845.9 Income (Loss) from Change in Fair Value of Equity and Convertible Securities 114.6 72.1 138.9 Net Realized Gains on the Sales of Investments 64.8 38.1 41.9 Net Impairment Losses Recognized in Earnings (11.0) (19.5) (13.8) Other 5.4 89.7 26.3 Total Revenues $ 5,793.0 $ 5,205.7 $ 5,039.2 |
Segment Operating Profit | Segment Operating Income (Loss), including a reconciliation to Income (Loss) before Income Taxes, for the years ended December 31, 2021, 2020 and 2019 was: DOLLARS IN MILLIONS 2021 2020 2019 Segment Operating Income (Loss): Specialty Property & Casualty Insurance $ (292.1) $ 420.9 $ 355.9 Preferred Property & Casualty Insurance (39.8) 1.8 52.3 Life & Health Insurance 10.5 71.2 121.9 Total Segment Operating Income (Loss) (321.4) 493.9 530.1 Corporate and Other Operating Income (Loss) From: Partial Satisfaction of Judgment — 89.4 20.1 Other (48.4) (36.5) (31.4) Corporate and Other Operating Income (Loss) (48.4) 52.9 (11.3) Adjusted Consolidated Operating Income (Loss) (369.8) 546.8 518.8 Income (Loss) from Change in Fair Value of Equity and Convertible Securities 114.6 72.1 138.9 Net Realized Gains on Sales of Investments 64.8 38.1 41.9 Impairment Losses (11.0) (19.5) (13.8) Acquisition Related Transaction, Integration and Other Costs (43.9) (63.3) (18.4) Pension Obligation Settlement Costs — (64.1) — Loss from Early Extinguishment of Debt — — (5.8) Income (loss) before Income Taxes $ (245.3) $ 510.1 $ 661.6 |
Segment Net Income (Loss) | Segment Net Operating Income (Loss), including a reconciliation to Net Income (Loss), for the years ended December 31, 2021, 2020 and 2019 was: DOLLARS IN MILLIONS 2021 2020 2019 Segment Net Operating Income (Loss): Specialty Property & Casualty Insurance $ (196.1) $ 337.9 $ 283.1 Preferred Property & Casualty Insurance (12.5) 3.5 41.9 Life & Health Insurance 28.2 60.0 98.7 Total Segment Net Operating Income (Loss) (180.4) 401.4 423.7 Corporate and Other Net Operating Income (Loss) From: Partial Satisfaction of Judgment — 70.6 15.9 Other (38.4) (33.2) (21.3) Total Corporate and Other Net Operating Income (Loss) (38.4) 37.4 (5.4) Adjusted Consolidated Net Operating Income (Loss) (218.8) 438.8 418.3 Net Income (Loss) From: Change in Fair Value of Equity and Convertible Securities 90.5 57.0 109.7 Net Realized Gains on Sales of Investments 51.2 30.1 33.1 Impairment Losses (8.7) (15.4) (10.9) Acquisition Related Transaction, Integration and Other Costs (34.7) (50.0) (14.5) Pension Obligation Settlement Costs — (50.6) — Loss from Early Extinguishment of Debt — — (4.6) Net Income (Loss) $ (120.5) $ 409.9 $ 531.1 |
Property and Casualty Insuran_2
Property and Casualty Insurance Reserves (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Short-duration Insurance Contracts, Claims Development | The following tables contain information about incurred and paid claims development as of and for the year ended December 31, 2021, net of reinsurance and indemnification, as well as cumulative claim frequency and the total of IBNR liabilities, including expected development on reported claims included within the net incurred losses and allocated LAE amounts. The tables are grouped by major product line and, if relevant, coverage. The information about incurred and paid claims development for the years ended December 31, 2017 through 2020 is presented as supplementary information and is unaudited. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Specialty Personal Automobile Insurance—Liability 1 DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2021 Incurred Losses and Allocated LAE, Net of Reinsurance Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2017 2018 2019 2020 2021 2017 $ 1,170.2 $ 1,175.6 $ 1,185.6 $ 1,181.6 $ 1,197.4 $ 15.1 458,261 2018 1,324.0 1,310.5 1,307.8 1,314.5 24.0 508,623 2019 1,461.5 1,494.7 1,506.1 54.8 546,521 2020 1,401.2 1,406.4 111.6 474,346 2021 1,856.9 607.1 544,207 Total 7,281.3 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Accident Year 2017 2018 2019 2020 2021 2017 $ 498.3 $ 945.5 $ 1,092.9 $ 1,141.9 $ 1,169.3 2018 541.3 1,050.8 1,211.8 1,265.5 2019 567.3 1,200.7 1,382.0 2020 555.2 1,107.6 2021 657.1 Total 5,581.5 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2017, Net of Reinsurance 22.5 Loss and Allocated LAE Reserves, Net of Reinsurance $ 1,722.3 1 Tables retrospectively include Infinity and AAC’s historical incurred and paid accident year claim information for all periods presented. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Specialty Personal Automobile Insurance—Physical Damage 1 DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2021 Incurred Losses and Allocated LAE, Net of Reinsurance Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2017 2018 2019 2020 2021 2017 $ 533.1 $ 522.5 $ 522.0 $ 522.5 $ 522.4 $ (0.1) 296,392 2018 558.9 548.6 548.0 547.8 (0.6) 309,577 2019 624.3 630.3 629.6 (10.5) 324,321 2020 650.5 659.5 (6.4) 296,167 2021 958.0 2.1 348,244 Total 3,317.3 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Accident Year 2017 2018 2019 2020 2021 2017 $ 493.2 $ 525.6 $ 523.0 $ 522.7 $ 522.5 2018 509.4 553.1 549.0 548.3 2019 570.8 634.8 630.6 2020 585.5 663.8 2021 890.1 Total 3,255.3 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2017, Net of Reinsurance 1.6 Loss and Allocated LAE Reserves, Net of Reinsurance $ 63.6 1 Tables retrospectively include Infinity and AAC’s historical incurred and paid accident year claim information for all periods presented. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Commercial Automobile Insurance—Liability 1 DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2021 Incurred Losses and Allocated LAE, Net of Reinsurance Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2017 2018 2019 2020 2021 2017 $ 120.5 $ 120.0 $ 118.3 $ 114.3 $ 114.4 $ 2.3 19,967 2018 123.2 116.5 113.0 110.9 4.7 20,195 2019 128.4 126.1 126.6 11.5 19,572 2020 140.5 152.0 25.5 19,354 2021 225.6 99.1 24,690 Total 729.5 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance and Indemnification For the Years Ended December 31, Accident Year 2017 2018 2019 2020 2021 2017 $ 36.3 $ 72.3 $ 90.7 $ 101.7 $ 107.2 2018 36.8 68.8 88.1 98.1 2019 32.4 75.7 99.5 2020 37.0 87.6 2021 50.8 Total 443.2 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2017, Net of Reinsurance 14.1 Loss and Allocated LAE Reserves, Net of Reinsurance $ 300.4 1 Tables retrospectively include Infinity’s historical incurred and paid accident year claim information for all periods presented. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Commercial Automobile Insurance—Physical Damage 1 DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2021 Incurred Losses and Allocated LAE, Net of Reinsurance Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2017 2018 2019 2020 2021 2017 $ 24.2 $ 23.5 $ 23.5 $ 23.4 $ 23.4 $ — 9,792 2018 23.6 23.5 23.6 23.6 0.1 9,569 2019 26.0 27.1 26.9 (0.5) 9,305 2020 31.9 32.2 — 11,011 2021 52.4 0.4 16,494 Total 158.5 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance and Indemnification For the Years Ended December 31, Accident Year 2017 2018 2019 2020 2021 2017 $ 22.2 $ 23.5 $ 23.4 $ 23.4 $ 23.4 2018 21.7 23.6 23.6 23.6 2019 23.0 26.9 26.8 2020 26.2 31.9 2021 43.3 Total 149.0 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2017, Net of Reinsurance 0.4 Loss and Allocated LAE Reserves, Net of Reinsurance $ 9.9 1 Tables retrospectively include Infinity’s historical incurred and paid accident year claim information for all periods presented. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Preferred Personal Automobile Insurance—Liability DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2021 Incurred Losses and Allocated LAE, Net of Reinsurance Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2017 2018 2019 2020 2021 2017 $ 164.4 $ 157.8 $ 155.8 $ 158.2 $ 160.0 $ 0.6 33,734 2018 157.6 156.3 161.7 163.4 1.7 31,922 2019 172.2 195.5 200.0 4.9 34,633 2020 148.9 153.6 16.1 24,438 2021 176.9 54.1 25,149 Total 853.9 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Accident Year 2017 2018 2019 2020 2021 2017 $ 59.2 $ 108.9 $ 134.1 $ 143.2 $ 150.6 2018 55.5 107.6 132.7 147.4 2019 62.7 127.9 160.8 2020 44.4 92.8 2021 50.3 Total 601.9 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2017, Net of Reinsurance 10.2 Loss and Allocated LAE Reserves, Net of Reinsurance $ 262.2 NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Preferred Personal Automobile Insurance—Physical Damage DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2021 Incurred Losses and Allocated LAE, Net of Reinsurance Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2017 2018 2019 2020 2021 2017 $ 109.2 $ 105.8 $ 105.2 $ 105.1 $ 105.2 $ — 62,685 2018 113.9 111.0 110.4 110.4 0.1 61,921 2019 126.4 125.8 125.9 0.3 67,181 2020 96.1 98.0 (0.5) 47,603 2021 118.5 (0.7) 50,533 Total 558.0 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Accident Year 2017 2018 2019 2020 2021 2017 $ 104.4 $ 106.1 $ 105.2 $ 105.1 $ 105.2 2018 107.2 111.4 110.4 110.3 2019 120.7 126.5 125.6 2020 90.9 98.4 2021 113.1 Total 552.6 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2017, Net of Reinsurance — Loss and Allocated LAE Reserves, Net of Reinsurance $ 5.4 NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Homeowners Insurance DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2021 Incurred Losses and Allocated LAE, Net of Reinsurance Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2017 2018 2019 2020 2021 2017 $ 261.2 $ 259.5 $ 245.2 $ 243.8 $ 243.9 $ 1.3 19,619 2018 185.9 183.0 183.6 185.3 4.1 16,212 2019 162.9 161.8 163.1 2.5 14,670 2020 157.0 149.8 4.3 13,887 2021 149.9 19.1 12,422 Total 892.0 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Accident Year 2017 2018 2019 2020 2021 2017 $ 165.8 $ 242.5 $ 235.7 $ 239.5 $ 241.7 2018 127.4 180.2 180.0 183.1 2019 111.1 150.4 157.7 2020 94.6 130.8 2021 100.6 Total 813.9 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2017, Net of Reinsurance 3.3 Loss and Allocated LAE Reserves, Net of Reinsurance $ 81.4 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | The following table reconciles the net incurred and paid claims development tables presented above to the Company's liability for Property and Casualty Insurance Reserves included in the Consolidated Balance Sheet at December 31, 2021. DOLLARS IN MILLIONS 2021 Property and Casualty Insurance Reserves, Net of Reinsurance: Specialty Personal Automobile Insurance—Liability $ 1,722.3 Specialty Personal Automobile Insurance—Physical Damage 63.6 Commercial Automobile Insurance—Liability 300.4 Commercial Automobile Insurance—Physical Damage 9.9 Preferred Personal Automobile Insurance—Liability 262.2 Preferred Personal Automobile Insurance—Physical Damage 5.4 Homeowners Insurance 81.4 Other 46.7 Total $ 2,491.9 Reinsurance Recoverables on Unpaid Losses and Allocated LAE: Specialty Personal Automobile Insurance—Liability $ 10.3 Specialty Personal Automobile Insurance—Physical Damage — Commercial Automobile Insurance—Liability 3.2 Commercial Automobile Insurance—Physical Damage — Preferred Personal Automobile Insurance—Liability 19.2 Preferred Personal Automobile Insurance—Physical Damage — Homeowners Insurance 5.0 Other 4.2 Total 41.9 Unallocated LAE 238.9 Property and Casualty Insurance Reserves, Gross of Reinsurance $ 2,772.7 |
Short-duration Insurance Contracts, Schedule of Historical Claims Duration | The following is supplementary information about average historical claims duration as of December 31, 2021. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Years 1 2 3 4 5 Specialty Personal Automobile Insurance—Liability 39.1 % 79.3 % 91.7 % 95.8 % 97.7 % Specialty Personal Automobile Insurance—Physical Damage 91.9 100.8 100.2 100.1 100.0 Commercial Automobile Insurance—Liability 27.5 60.7 79.1 88.7 93.7 Commercial Automobile Insurance—Physical Damage 87.2 99.9 99.9 100.0 100.0 Preferred Personal Automobile Insurance—Liability 31.9 64.6 81.8 89.9 94.2 Preferred Personal Automobile Insurance—Physical Damage 96.1 100.7 99.9 99.9 100.0 Homeowners Insurance 67.0 94.0 96.8 98.5 99.1 |
Liability for Unpaid Claims Adjustment Expense by Expense Type | Property and Casualty Insurance Reserve activity for the years ended December 31, 2021, 2020 and 2019 was: DOLLARS IN MILLIONS 2021 2020 2019 Property and Casualty Insurance Reserves: Gross of Reinsurance at Beginning of Year $ 1,982.5 $ 1,969.8 $ 1,874.9 Less Reinsurance Recoverables at Beginning of Year 50.1 65.6 101.9 Property and Casualty Insurance Reserves, Net of Reinsurance at Beginning of Year 1,932.4 1,904.2 1,773.0 Property and Casualty Insurance Reserves Acquired, Net of Reinsurance 211.1 — 3.6 Incurred Losses and LAE related to: Current Year 4,052.7 2,873.6 2,879.5 Prior Years 106.7 36.4 (71.1) Total Incurred Losses and LAE 4,159.4 2,910.0 2,808.4 Paid Losses and LAE related to: Current Year: 2,303.4 1,679.1 1,682.1 Prior Years 1,268.7 1,202.7 998.7 Total Paid Losses and LAE 3,572.1 2,881.8 2,680.8 Property and Casualty Insurance Reserves, Net of Reinsurance at End of Year 2,730.8 1,932.4 1,904.2 Plus Reinsurance Recoverables at End of Year 41.9 50.1 65.6 Property and Casualty Insurance Reserves, Gross of Reinsurance at End of Year $ 2,772.7 $ 1,982.5 $ 1,969.8 |
Premium Receivable, Allowance for Credit Loss | The following table presents receivables from policyholders, net of the allowance for expected credit losses including a rollforward of changes in the allowance for expected credit losses for the year ended December 31, 2021. (Dollars in Millions) Receivables from Policyholders, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Balance at Beginning of Year $ 1,194.5 $ 20.9 Provision for Expected Credit Losses 50.5 Write-offs of Uncollectible Receivables from Policyholders (57.8) Balance at End of Period $ 1,418.7 $ 13.6 The following table presents receivables from policyholders, net of the allowance for expected credit losses including a rollforward of changes in the allowance for expected credit losses for the year ended December 31, 2020. (Dollars in Millions) Receivables from Policyholders, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Balance at Beginning of Year $ 1,117.1 $ 22.3 Provision for Expected Credit Losses 45.5 Write-offs of Uncollectible Receivables from Policyholders (46.9) Balance at End of Period $ 1,194.5 $ 20.9 |
Insurance Expenses (Tables)
Insurance Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Insurance Expenses [Abstract] | |
Schedule of Insurance Expenses | Insurance Expenses for the years ended December 31, 2021, 2020 and 2019 were: DOLLARS IN MILLIONS 2021 2020 2019 Commissions $ 817.6 $ 745.8 $ 708.8 General Expenses 339.5 307.4 278.0 Premium Tax Expense 104.3 94.2 93.5 Total Costs Incurred 1,261.4 1,147.4 1,080.3 Policy Acquisition Costs: Deferred (772.6) (693.4) (475.2) Amortized 684.3 641.8 408.3 Net Policy Acquisition Costs Amortized (88.3) (51.6) (66.9) Amortization of VOBA 45.0 4.7 6.3 Insurance Expenses $ 1,218.1 $ 1,100.5 $ 1,019.7 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Securities, Available-for-sale [Line Items] | |
Schedule of Unrealized Loss on Investments | An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2021 is presented below. DOLLARS IN MILLIONS Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 168.7 $ (1.8) $ 1.2 $ (0.1) $ 169.9 $ (1.9) States and Political Subdivisions 385.0 (6.9) 1.5 (0.1) 386.5 (7.0) Foreign Governments 2.2 (0.6) 2.6 (0.6) 4.8 (1.2) Corporate Securities: Bonds and Notes 596.8 (13.1) 49.3 (2.9) 646.1 (16.0) Redeemable Preferred Stocks 0.1 — — — 0.1 — Collateralized Loan Obligations 250.9 (2.6) 192.6 (2.2) 443.5 (4.8) Other Mortgage- and Asset-backed 100.1 (1.8) — — 100.1 (1.8) Total Fixed Maturities $ 1,503.8 $ (26.8) $ 247.2 $ (5.9) $ 1,751.0 $ (32.7) An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2020 is presented below. DOLLARS IN MILLIONS Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 10.5 $ (0.1) $ — $ — $ 10.5 $ (0.1) States and Political Subdivisions 23.3 (0.2) — — 23.3 (0.2) Foreign Governments 0.5 (0.1) 2.6 (1.0) 3.1 (1.1) Corporate Securities: Bonds and Notes 132.9 (7.5) 46.1 (3.1) 179.0 (10.6) Collateralized Loan Obligations 145.2 (3.8) 371.4 (15.9) 516.6 (19.7) Other Mortgage- and Asset-backed 6.3 — — — 6.3 — Total Fixed Maturities $ 318.7 $ (11.7) $ 420.1 $ (20.0) $ 738.8 $ (31.7) |
Other than Temporary Impairment, Credit Losses Recognized in Earnings | The components of Impairment Losses reported in the Consolidated Statements of Income for the years ended December 31, 2021, 2020 and 2019 were: DOLLARS IN MILLIONS 2021 2020 2019 Fixed Maturities $ (6.4) $ (16.7) $ (13.3) Equity Securities (4.2) (2.8) (0.5) Real Estate (0.4) — — Net Impairment Losses Recognized in Earnings $ (11.0) $ (19.5) $ (13.8) |
Schedule of Other Investments | The carrying values of the Company’s Other Investments at December 31, 2021 and 2020 were: DOLLARS IN MILLIONS 2021 2020 Company-Owned Life Insurance $ 448.1 $ 327.4 Loans to Policyholders at Unpaid Principal 286.2 297.9 Real Estate at Depreciated Cost 94.0 98.7 Mortgage Loans and Other 97.3 55.0 Total $ 925.6 $ 779.0 |
Investments in Fixed Maturities | |
Debt Securities, Available-for-sale [Line Items] | |
Schedule of Available-for-sale Securities Reconciliation | The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2021 were: DOLLARS IN MILLIONS Amortized Gross Unrealized Allowance for Expected Credit Losses Fair Value Gains Losses U.S. Government and Government Agencies and Authorities $ 610.1 $ 29.2 $ (1.9) $ — $ 637.4 States and Political Subdivisions 1,752.5 144.6 (7.0) — 1,890.1 Foreign Governments 6.7 — (1.2) — 5.5 Corporate Securities: Bonds and Notes 3,929.0 481.4 (16.0) (7.5) 4,386.9 Redeemable Preferred Stocks 7.0 0.4 — — 7.4 Collateralized Loan Obligations 756.0 0.9 (4.8) — 752.1 Other Mortgage- and Asset-backed 296.9 12.4 (1.8) — 307.5 Investments in Fixed Maturities $ 7,358.2 $ 668.9 $ (32.7) $ (7.5) $ 7,986.9 The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2020 were: Amortized Gross Unrealized Allowance for Expected Credit Losses Fair Value DOLLARS IN MILLIONS Gains Losses U.S. Government and Government Agencies and Authorities $ 536.5 $ 48.9 $ (0.1) $ — $ 585.3 States and Political Subdivisions 1,404.3 185.4 (0.2) — 1,589.5 Foreign Governments 6.6 — (1.1) (0.3) 5.2 Corporate Securities: Bonds and Notes 3,749.5 689.5 (10.6) (3.0) 4,425.4 Redeemable Preferred Stocks 7.0 0.5 — 7.5 Collateralized Loan Obligations 785.1 2.3 (19.7) — 767.7 Other Mortgage- and Asset-backed 203.7 21.6 — — 225.3 Investments in Fixed Maturities $ 6,692.7 $ 948.2 $ (31.7) $ (3.3) $ 7,605.9 |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2021 by contractual maturity were: DOLLARS IN MILLIONS Amortized Cost Fair Value Due in One Year or Less $ 109.0 $ 111.4 Due after One Year to Five Years 998.3 1,044.2 Due after Five Years to Ten Years 1,469.1 1,555.9 Due after Ten Years 3,255.6 3,730.1 Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date 1,526.2 1,545.3 Investments in Fixed Maturities $ 7,358.2 $ 7,986.9 |
Income from Investments (Tables
Income from Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investment Income, Net [Abstract] | |
Net Investment Income | Net Investment Income for the years ended December 31, 2021, 2020 and 2019 was: DOLLARS IN MILLIONS 2021 2020 2019 Investment Income: Interest on Fixed Income Securities $ 277.7 $ 289.8 $ 299.4 Dividends on Equity Securities Excluding Alternative Investments 15.9 15.4 22.9 Alternative Investments: Equity Method Limited Liability Investments 56.7 4.9 1.0 Limited Liability Investments Included in Equity Securities 46.9 22.1 18.0 Total Alternative Investments 103.6 27.0 19.0 Short-term Investments 1.0 5.5 8.2 Loans to Policyholders 21.7 22.1 22.6 Real Estate 9.3 9.6 9.8 Other 32.4 13.2 1.5 Total Investment Income 461.6 382.6 383.4 Investment Expenses: Real Estate 9.7 8.8 9.6 Other Investment Expenses 24.6 25.6 9.5 Total Investment Expenses 34.3 34.4 19.1 Net Investment Income $ 427.3 $ 348.2 $ 364.3 Other Receivables includes accrued investment income of $79.6 million and $77.1 million at December 31, 2021 and 2020, respectively. |
Realized Gain (Loss) on Investments | The components of Net Realized Gains on Sales of Investments for the years ended December 31, 2021, 2020 and 2019 were: DOLLARS IN MILLIONS 2021 2020 2019 Fixed Maturities: Gains on Sales $ 63.4 $ 40.6 $ 41.1 Losses on Sales (2.1) (7.9) (4.8) Equity Securities: Gains on Sales 4.1 5.9 5.8 Losses on Sales (0.7) (1.9) (0.2) Equity Method Limited Liability Investments: Gains on Sales 0.4 — — Losses on Sales — (0.4) — Real Estate: Gains on Sales 0.1 1.8 — Losses on Sales (0.4) — — Net Realized Gains on Sales of Investments $ 64.8 $ 38.1 $ 41.9 Gross Gains on Sales $ 68.0 $ 48.3 $ 46.9 Gross Losses on Sales (3.2) (10.2) (5.0) Net Realized Gains on Sales of Investments $ 64.8 $ 38.1 $ 41.9 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings | The components of Impairment Losses reported in the Consolidated Statements of Income for the years ended December 31, 2021, 2020 and 2019 were: DOLLARS IN MILLIONS 2021 2020 2019 Fixed Maturities $ (6.4) $ (16.7) $ (13.3) Equity Securities (4.2) (2.8) (0.5) Real Estate (0.4) — — Net Impairment Losses Recognized in Earnings $ (11.0) $ (19.5) $ (13.8) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | The valuation of assets measured at fair value in the Company’s Consolidated Balance Sheet at December 31, 2021 is summarized below. The Company has no material liabilities that are measured and reported at fair value. DOLLARS IN MILLIONS Fair Value Measurements Total Fair Value Quoted Prices Significant Significant Measured at Net Asset Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 132.8 $ 504.6 $ — $ — $ 637.4 States and Political Subdivisions — 1,890.1 — — 1,890.1 Foreign Governments — 5.5 — — 5.5 Corporate Securities: Bonds and Notes — 4,150.1 236.8 — 4,386.9 Redeemable Preferred Stocks — 1.3 6.1 — 7.4 Collateralized Loan Obligations — 752.1 — — 752.1 Other Mortgage- and Asset-backed — 300.5 7.0 — 307.5 Total Investments in Fixed Maturities 132.8 7,604.2 249.9 — 7,986.9 Equity Securities at Fair Value: Preferred Stocks: Finance, Insurance and Real Estate — 34.2 — — 34.2 Other Industries — 16.1 1.5 — 17.6 Common Stocks: Finance, Insurance and Real Estate 18.9 — — — 18.9 Other Industries 2.9 — — — 2.9 Other Equity Interests: Exchange Traded Funds 432.0 — — — 432.0 Limited Liability Companies and Limited Partnerships — — — 325.0 325.0 Total Investments in Equity Securities at Fair Value 453.8 50.3 1.5 325.0 830.6 Convertible Securities at Fair Value — 46.4 — — 46.4 Total $ 586.6 $ 7,700.9 $ 251.4 $ 325.0 $ 8,863.9 The valuation of assets measured at fair value in the Company’s Consolidated Balance Sheet at December 31, 2020 is summarized below. DOLLARS IN MILLIONS Fair Value Measurements Total Fair Value Quoted Prices Significant Significant Measured at Net Asset Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 134.0 $ 451.3 $ — $ — $ 585.3 States and Political Subdivisions — 1,589.5 — — 1,589.5 Foreign Governments — 5.2 — — 5.2 Corporate Securities: Bonds and Notes — 3,992.4 433.0 — 4,425.4 Redeemable Preferred Stocks — 1.3 6.2 — 7.5 Collateralized Loan Obligations — 767.7 — — 767.7 Other Mortgage- and Asset-backed — 215.3 10.0 — 225.3 Total Investments in Fixed Maturities 134.0 7,022.7 449.2 — 7,605.9 Equity Securities at Fair Value: Preferred Stocks: Finance, Insurance and Real Estate — 43.7 — — 43.7 Other Industries — 15.4 — — 15.4 Common Stocks: Finance, Insurance and Real Estate 8.7 1.7 — — 10.4 Other Industries 0.4 — — — 0.4 Other Equity Interests: Exchange Traded Funds 496.4 — — — 496.4 Limited Liability Companies and Limited Partnerships — — — 292.2 292.2 Total Investments in Equity Securities at Fair Value 505.5 60.8 — 292.2 858.5 Convertible Securities at Fair Value — 39.9 — — 39.9 Total $ 639.5 $ 7,123.4 $ 449.2 $ 292.2 $ 8,504.3 |
Fair Value Inputs, Assets, Quantitative Information | The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments in corporate securities classified as Level 3 at December 31, 2021. NOTE 10. FAIR VALUE MEASUREMENTS (Continued) DOLLARS IN MILLIONS Unobservable Input Total Fair Value Range of Unobservable Inputs Weighted-average Yield Investment-grade Market Yield $ 87.9 2.3 % - 10.3 % 5.4 % Non-investment-grade: Senior Debt Market Yield 76.1 5.1 - 20.2 8.5 Junior Debt Market Yield 53.9 6.0 - 27.5 15.0 Other Various 32.0 Total Level 3 Fixed Maturity Investments $ 249.9 The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments in corporate securities classified as Level 3 at December 31, 2020. DOLLARS IN MILLIONS Unobservable Input Total Fair Value Range of Unobservable Inputs Weighted-average Yield Investment-grade Market Yield $ 246.7 1.4 % - 13.0 % 3.8 % Non-investment-grade: Senior Debt Market Yield 111.1 2.4 - 23.4 9.5 Junior Debt Market Yield 64.6 3.1 - 27.9 13.7 Other Various 26.8 Total Level 3 Fixed Maturity Investments $ 449.2 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the year ended December 31, 2021 is presented below. DOLLARS IN MILLIONS Fixed Maturities Equity Securities Corporate Redeemable Collateralized Loan Obligations Other Mortgage- Preferred Total Balance at Beginning of Year $ 433.0 $ 6.2 $ — $ 10.0 $ — $ 449.2 Total Gains (Losses): Included in Consolidated Statement of Income 2.8 — — — — 2.8 Included in Other Comprehensive Income (Loss) 1.2 (0.1) 0.1 (0.5) 0.7 1.4 Purchases 104.6 — 17.7 16.2 1.7 140.2 Settlements — — — (0.1) — (0.1) Sales (128.1) — (10.0) (0.2) — (138.3) Transfers into Level 3 8.1 — 10.0 — 1.7 19.8 Transfers out of Level 3 (184.8) — (17.8) (18.4) (2.6) (223.6) Balance at End of Year $ 236.8 $ 6.1 $ — $ 7.0 $ 1.5 $ 251.4 Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the year ended December 31, 2020 is presented below. DOLLARS IN MILLIONS Fixed Maturities Total Corporate States and Political Sub-divisions Redeemable Collateralized Loan Obligations Other Mortgage- Balance at Beginning of Year $ 409.1 $ — $ 6.7 $ 618.2 $ 10.2 $ 1,044.2 Total Gains (Losses): Included in Consolidated Statement of Income (9.0) — — (0.3) — (9.3) Included in Other Comprehensive Income (Loss) 3.2 0.1 0.5 (9.3) 0.4 (5.1) Purchases 185.9 0.6 0.2 53.5 — 240.2 Settlements — — — — (0.1) (0.1) Sales (165.2) — — (26.4) (0.5) (192.1) Transfers into Level 3 9.0 — — — — 9.0 Transfers out of Level 3 — (0.7) (1.2) (635.7) — (637.6) Balance at End of Year $ 433.0 $ — $ 6.2 $ — $ 10.0 $ 449.2 |
Fair Value, by Balance Sheet Grouping | Presented below are the carrying values and fair value estimates of financial instruments not carried at fair value. December 31, 2021 December 31, 2020 (Dollars in Millions) Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Loans to Policyholders $ 286.2 $ 286.2 $ 297.9 $ 297.9 Short-term Investments 284.1 284.1 875.4 875.4 Mortgage Loans 96.8 96.8 54.6 54.6 Company-Owned Life Insurance 448.1 448.1 327.4 327.4 Equity Securities at Modified Cost 32.3 32.3 40.1 40.1 Financial Liabilities: Long-term Debt, Current and Non-current $ 1,121.9 $ 1,152.1 $ 1,172.8 $ 1,247.8 Policyholder Contract Liabilities 401.9 401.9 407.8 407.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill balances by business segment at December 31, 2021 and 2020 were: DOLLARS IN MILLIONS 2021 2020 Specialty Property & Casualty Insurance $ 1,043.0 $ 845.0 Preferred Property & Casualty Insurance 49.6 49.6 Life & Health Insurance 219.4 219.4 Total $ 1,312.0 $ 1,114.0 |
Schedule of Definite-Life Intangible Assets | at December 31, 2021 and 2020 were: 2021 2020 (Dollars in Millions) Gross Carrying Amount Accumulated Amortization Net Amount Gross Accumulated Amortization Net Amount Definite Life Intangibles: Value of Business Acquired $ 237.5 $ 218.5 $ 19.0 $ 194.5 $ 174.2 $ 20.3 Customer Relationships 43.8 38.1 5.7 39.0 35.6 3.4 Agent Relationships 81.6 23.6 58.0 74.4 16.8 57.6 Trade Names 1.8 0.9 0.9 — — — Internal-Use Software 341.7 132.4 209.3 299.6 108.6 191.0 Total Definite Life Intangible Assets 706.4 413.5 292.9 607.5 335.2 272.3 Indefinite Life Intangible Assets: Trade Names 5.2 — 5.2 5.2 — 5.2 Insurance Licenses 45.1 — 45.1 42.6 — 42.6 Total Indefinite Life Intangible Assets 50.3 — 50.3 47.8 — 47.8 Total Intangible Assets $ 756.7 $ 413.5 $ 343.2 $ 655.3 $ 335.2 $ 320.1 |
Schedule of Indefinite-Life Intangible Assets | at December 31, 2021 and 2020 were: 2021 2020 (Dollars in Millions) Gross Carrying Amount Accumulated Amortization Net Amount Gross Accumulated Amortization Net Amount Definite Life Intangibles: Value of Business Acquired $ 237.5 $ 218.5 $ 19.0 $ 194.5 $ 174.2 $ 20.3 Customer Relationships 43.8 38.1 5.7 39.0 35.6 3.4 Agent Relationships 81.6 23.6 58.0 74.4 16.8 57.6 Trade Names 1.8 0.9 0.9 — — — Internal-Use Software 341.7 132.4 209.3 299.6 108.6 191.0 Total Definite Life Intangible Assets 706.4 413.5 292.9 607.5 335.2 272.3 Indefinite Life Intangible Assets: Trade Names 5.2 — 5.2 5.2 — 5.2 Insurance Licenses 45.1 — 45.1 42.6 — 42.6 Total Indefinite Life Intangible Assets 50.3 — 50.3 47.8 — 47.8 Total Intangible Assets $ 756.7 $ 413.5 $ 343.2 $ 655.3 $ 335.2 $ 320.1 |
Schedule of Definite-Life Intangible Assets, Future Amortization Expense | The amount of amortization expense expected to be recorded in the next five years for definite life intangible assets is as follows: DOLLARS IN MILLIONS 2022 2023 2024 2025 2026 Definite Life Intangible Assets: Value of Business Acquired $ 3.6 $ 2.0 $ 1.9 $ 1.8 $ 1.7 Customer Relationships 3.0 1.1 0.4 0.4 0.3 Agent Relationships 7.3 7.3 5.5 4.9 4.9 Trade Names 0.9 — — — — Internal-Use Software 33.3 30.4 23.9 18.9 16.2 Total $ 48.1 $ 40.8 $ 31.7 $ 26.0 $ 23.1 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table presents information regarding activity in the Company’s Alternative Energy Partnership Investments as of the periods indicated: Year Ended (Dollars in millions) Dec 31, 2021 Dec 31, 2020 Fundings $ 80.0 $ 20.0 Cash distribution from investment 0.5 — Gain (loss) on investments in Alternative Energy Partnership (61.2) — Income tax credits recognized 73.9 3.6 Tax benefit (expense) recognized from HLBV application 5.1 (0.4) The following table represents the carrying value of the associated assets and liabilities and the associated maximum loss exposure of the Alternative Energy Partnership Investments as of the dates indicated: (Dollars in millions) Dec 31, 2021 Cash $ 21.5 Equipment, net of depreciation 310.5 Other assets 3.0 Total unconsolidated assets 335.0 Maximum loss exposure 39.6 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) And Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Comprehensive Income (Loss) | The tables below display the changes in Accumulated Other Comprehensive Income (Loss) by component for the years ended December 31, 2021, 2020 and 2019 were: (Dollars in Millions) Net Unrealized Gains (Losses) on Other Investments Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses Net Unrecognized Postretirement Benefit Costs Gain (Loss) on Cash Flow Hedges Total Balance as of January 1, 2019 $ 119.3 $ — $ (94.5) $ (3.0) $ 21.8 Other Comprehensive Income (Loss) Before Reclassifications 342.4 — (6.1) 0.3 336.6 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Net of Tax (Expense) Benefit of $5.8, $—, $—, $— and $5.8 (22.3) — — — (22.3) Other Comprehensive Income (Loss) Net of Tax (Expense) Benefit of $(85.2), $—, $1.7, $(0.1) and $(83.6) 320.1 — (6.1) 0.3 314.3 Balance as of December 31, 2019 $ 439.4 $ — $ (100.6) $ (2.7) $ 336.1 Other Comprehensive Income (Loss) Before Reclassifications 304.4 (2.1) 4.3 0.4 307.0 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Net of Tax (Expense) Benefit of $3.6, $—, $(13.5), $— and $(9.9) (13.2) — 50.6 — 37.4 Other Comprehensive Income (Loss) Net of Tax (Expense) Benefit of $(78.7), $0.5, $(15.3), $— and $(93.5) 291.2 (2.1) 54.9 0.4 344.4 Balance as of December 31, 2020 $ 730.6 $ (2.1) $ (45.7) $ (2.3) $ 680.5 Other Comprehensive Income (Loss) Before Reclassifications (182.0) (1.6) (6.5) — (190.1) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Net of Tax (Expense) Benefit of $11.3, $—, $—, $(0.1) and $11.2 (42.8) — 0.1 0.4 (42.3) Other Comprehensive Income (Loss) Net of Tax (Expense) Benefit of $59.7, $0.4, $2.4, $(0.1) and $62.4 (224.8) (1.6) (6.4) 0.4 (232.4) Balance as of December 31, 2021 $ 505.8 $ (3.7) $ (52.1) $ (1.9) $ 448.1 |
Pension Benefits (Tables)
Pension Benefits (Tables) - Pension Plans, Defined Benefit | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Changes in Fair Value of Plan Assets | Changes in Fair Value of Plan Assets and Changes in Projected Benefit Obligation for the Pension Plan for the years ended December 31, 2021 and 2020 is presented below. DOLLARS IN MILLIONS 2021 2020 Fair Value of Plan Assets at Beginning of Year $ 405.4 $ 664.6 Actual Return on Plan Assets (0.7) 92.1 Employer Contributions — — Benefits Paid (13.0) (145.9) Settlement Benefits — (205.4) Fair Value of Plan Assets at End of Year 391.7 405.4 Projected Benefit Obligation at Beginning of Year 382.3 660.5 Interest Cost 7.2 16.5 Benefits Paid (13.0) (145.9) Settlement Benefits — (205.4) Plan Amendments 18.3 — Actuarial (Gains) Losses (16.0) 56.6 Projected Benefit Obligation at End of Year 378.8 382.3 Funded Status—Plan Assets in Excess (Deficit) of Projected Benefit Obligation $ 12.9 $ 23.1 Unamortized Amount Reported in AOCI at End of Year $ (77.6) $ (68.2) Accumulated Benefit Obligation at End of Year $ 378.8 $ 382.3 |
Schedule of Assumptions Used | The weighted-average discount rate and rate of increase in future compensation levels used to estimate the components of the Projected Benefit Obligation for the Pension Plan at December 31, 2021 and 2020 were: 2021 2020 Discount Rate 2.89 % 2.56 % Rate of Increase in Future Compensation Levels 3.40 3.40 The weighted-average discount rate, service cost discount rate, interest cost discount rate, rate of increase in future compensation levels and expected long-term rate of return on plan assets used to develop the components of Pension Expense for the Pension Plan for the years ended December 31, 2021, 2020 and 2019 were: 2021 2020 2019 Weighted-average Discount Rate 2.56 % 2.56 % 4.28 % Service Cost Discount Rate 2.41 2.42 4.26 Interest Cost Discount Rate 1.90 1.89 3.91 Rate of Increase in Future Compensation Levels 3.40 3.40 3.40 Expected Long Term Rate of Return on Plan Assets 2.70 4.90 5.70 |
Schedule of Allocation of Plan Assets | Asset allocations for the Pension Plan at December 31, 2021 and 2020 by asset category were: ASSET CATEGORY 2021 2020 Corporate Bonds and Notes 30 % 37 % Common and Preferred Stocks — 24 Bond Exchange Traded Funds 32 27 Cash and Short-term Investments 36 2 Other Assets 2 10 Total 100 % 100 % |
Fair Value, Measurement Inputs, Disclosure | Fair value measurements for the Pension Plan’s assets at December 31, 2021 are summarized below. DOLLARS IN MILLIONS Quoted Prices Significant Significant Measured at Net Asset Value Fair Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 54.6 $ — $ — $ — $ 54.6 States and Political Subdivisions — 0.1 — — 0.1 Foreign Governments — 0.6 — — 0.6 Corporate Bonds and Notes — 62.3 — — 62.3 Equity Securities: Other Equity Interests: Bond Exchange Traded Funds 125.0 — — — 125.0 Limited Liability Companies and Limited Partnerships — — — 8.4 8.4 Short-term Investments 140.2 — — — 140.2 Receivables and Other 0.5 — — — 0.5 Total $ 320.3 $ 63.0 $ — $ 8.4 $ 391.7 Fair value measurements for the Pension Plan’s assets at December 31, 2020 are summarized below. DOLLARS IN MILLIONS Quoted Prices Significant Significant Measured at Net Asset Value Fair Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 68.3 $ — $ — $ — $ 68.3 States and Political Subdivisions — 0.7 — — 0.7 Corporate Bonds and Notes — 81.3 — — 81.3 Equity Securities: Common Stocks: Other Industries 64.8 — — — 64.8 Other Equity Interests: Collective Investment Funds — — — 32.1 32.1 Bond Exchange Traded Funds 108.6 — — — 108.6 Limited Liability Companies and Limited Partnerships — — — 41.6 41.6 Short-term Investments 7.4 — — — 7.4 Receivables and Other 0.6 — — — 0.6 Total $ 249.7 $ 82.0 $ — $ 73.7 $ 405.4 |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | The components of Comprehensive Pension Expense (Income) for the Pension Plan for the years ended December 31, 2021, 2020 and 2019 were: DOLLARS IN MILLIONS 2021 2020 2019 Service Cost Earned During the Year $ — $ — $ — Interest Cost on Projected Benefit Obligation 7.2 16.5 22.3 Expected Return on Plan Assets (9.5) (27.6) (30.6) Amortization of Actuarial Loss 2.9 5.6 2.9 Settlement Expense — 64.1 — Pension Expense (Income) Recognized in Consolidated Statements of Income 0.6 58.6 (5.4) Unrecognized Pension Gain (Loss) Arising During the Year (6.0) (7.8) 4.2 Prior Service Credit Arising During the Year 18.3 — — Amortization of Accumulated Unrecognized Pension Loss (2.9) (69.8) (2.9) Comprehensive Pension Expense (Income) $ 10.0 $ (19.0) $ (4.1) |
Schedule of Expected Benefit Payments | The following benefit payments (net of participant contributions), which consider expected future service of certain participants that remain eligible for a benefit accrual, as appropriate, are expected to be paid from the Pension Plan: DOLLARS IN MILLIONS Years Ending December 31, 2022 2023 2024 2025 2026 2027-2031 Estimated Pension Benefit Payments $ 17.0 $ 16.5 $ 17.3 $ 18.1 $ 18.7 $ 97.9 |
Significant Unobservable Inputs (Level 3) | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Changes in Fair Value of Plan Assets |
Postretirement Benefits Other_2
Postretirement Benefits Other Than Pensions (Tables) - Other Postretirement Benefit Plan, Defined Benefit | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Changes in Fair Value of Plan Assets | Changes in Fair Value of Plans’ Assets and Changes in Accumulated Postretirement Benefit Obligation for the years ended December 31, 2021 and 2020 were: DOLLARS IN MILLIONS 2021 2020 Fair Value of Plans’ Assets at Beginning of Year $ — $ — Employer Contributions 1.1 1.5 Plan Participants’ Contributions 0.1 0.2 Benefits Paid (1.2) (1.7) Fair Value of Plan Assets at End of Year — — Accumulated Postretirement Benefit Obligation at Beginning of Year 13.7 12.8 Service Cost 0.3 0.2 Interest Cost 0.1 0.3 Plan Participants’ Contributions 0.1 0.2 Benefits Paid (1.2) (1.7) Actuarial (Gain) Loss (1.8) 1.9 Accumulated Postretirement Benefit Obligation at End of Year 11.2 13.7 Funded Status—Accumulated Postretirement Benefit Obligation in Excess of Plans’ Assets $ (11.2) $ (13.7) Unamortized Actuarial Gain Reported in AOCI at End of Year $ 17.5 $ 18.7 |
Schedule of Assumptions Used | The weighted-average discount rate and rate of increase in future compensation levels used to develop the components of the Accumulated Postretirement Benefit Obligation at December 31, 2021 and 2020 were: 2021 2020 Discount Rate 2.56 % 2.13 % Rate of Increase in Future Compensation Levels 2.20 2.20 The weighted-average discount rate and rate of increase in future compensation levels used to develop OPEB Expense for the years ended December 31, 2021, 2020 and 2019 were: 2021 2020 2019 Weighted-average Discount Rate 1.99 % 2.96 % 4.08 % Service Cost Discount Rate 2.06 2.94 4.16 Interest Cost Discount Rate 1.19 2.47 3.69 Rate of Increase in Future Compensation Levels 2.20 2.20 2.20 |
Schedule of Comprehensive Other Postretirement Employee Benefit Expense | The components of Comprehensive OPEB Expense (Income) for the years ended December 31, 2021, 2020 and 2019 were: DOLLARS IN MILLIONS 2021 2020 2019 Service Cost Earned During the Year $ 0.3 $ 0.2 $ 0.2 Interest Cost on Accumulated Postretirement Benefit Obligation 0.1 0.3 0.4 Amortization of Prior Service Credit (1.3) (1.3) (1.3) Amortization of Accumulated Unrecognized OPEB Gain (1.7) (1.9) (2.4) OPEB Income Recognized in Consolidated Statements of Income (2.6) (2.7) (3.1) Unrecognized OPEB (Gain) Loss Arising During the Year (1.8) 1.9 (1.7) Amortization of Prior Service Credit 1.3 1.3 1.3 Amortization of Accumulated Unrecognized OPEB Gain 1.7 1.9 2.4 Comprehensive OPEB (Income) Expense $ (1.4) $ 2.4 $ (1.1) |
Schedule of Expected Benefit Payments | The following benefit payments (net of participant contributions), which consider expected future service, as appropriate, are expected to be paid: DOLLARS IN MILLIONS Years Ending December 31, 2022 2023 2024 2025 2026 2027-2031 Estimated Benefit Payments: Excluding Medicare Part D Subsidy $ 1.2 $ 1.2 $ 1.2 $ 1.1 $ 1.0 $ 3.8 Expected Medicare Part D Subsidy — — — — — — Net Estimated Benefit Payments $ 1.2 $ 1.2 $ 1.2 $ 1.1 $ 1.0 $ 3.8 |
Long-term Equity-based Compen_2
Long-term Equity-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The assumptions used in the Black-Scholes pricing model for Tandem Awards granted during the years ended December 31, 2021, 2020 and 2019 are presented below. 2021 2020 2019 RANGE OF VALUATION ASSUMPTIONS Expected Volatility 33.67 % - 38.04 % 29.22 % - 37.27 % 28.97 % - 33.78 % Risk-free Interest Rate 0.26 - 1.33 0.17 - 1.46 1.35 - 2.60 Expected Dividend Yield 1.18 - 1.78 1.19 - 1.48 1.05 - 1.38 WEIGHTED-AVERAGE EXPECTED LIFE IN YEARS Employee Grants 4 - 6 4 - 6 4 - 6 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | Tandem Award activity for the year ended December 31, 2021 is presented below. Shares Weighted- Weighted- Aggregate Outstanding at Beginning of the Year 1,900,957 $ 60.97 Granted 406,553 69.88 Exercised (75,802) 60.84 Forfeited or Expired (127,729) 73.59 Outstanding at December 31, 2021 2,103,979 61.93 6.50 $ 12.1 Vested and Expected to Vest at December 31, 2021 2,039,134 $ 61.57 6.44 $ 12.1 Exercisable at December 31, 2021 1,389,206 $ 56.26 5.50 $ 12.0 |
Schedule of Options Outstanding | Information pertaining to Tandem Awards outstanding at December 31, 2021 is presented below. Outstanding Exercisable Range of Exercise Prices ($) Shares Weighted- Weighted- Shares Weighted- $ 20.01 - 30.00 108,562 $ 27.79 4.03 108,562 $ 27.79 30.01 - 40.00 122,906 34.42 3.33 122,906 34.42 40.01 - 50.00 345,616 42.44 4.74 345,616 42.44 50.01 - 60.00 335,000 59.80 5.97 331,639 59.87 60.01 - 70.00 405,923 69.26 8.75 50,325 66.90 70.01 - 80.00 749,520 76.31 7.22 406,480 76.31 80.01 - 90.00 36,452 83.69 6.16 23,678 84.23 20.01 - 90.00 2,103,979 61.93 6.50 1,389,206 56.26 |
Schedule of Share-based Compensation, Nonemployee Director Deferred Stock Unit Award Plan, Activity | Activity related to DSU awards for the year ended December 31, 2021 is presented below. Number of DSUs Weighted- Vested Balance at Beginning of the Year 44,820 $ 44.74 Reduction for Shares Issued on Conversion — — Vested Balance at December 31, 2021 44,820 $ 44.74 |
Time Vested Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Restricted Stock Units and Performance Stock Units Activity | Activity related to nonvested RSUs for the year ended December 31, 2021 is presented below. Time-based Restricted Stock Unit Awards Number of Restricted Stock Units Weighted- Nonvested Balance at Beginning of the Year 132,026 $ 72.30 Granted 38,375 68.38 Vested (81,967) 72.85 Forfeited (6,733) 73.40 Nonvested Balance at December 31, 2021 81,701 $ 69.82 |
Performance Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Restricted Stock Units and Performance Stock Units Activity | Activity related to nonvested PSU awards for the year ended December 31, 2021 is presented below. PSU Awards Number of PSUs Weighted- Nonvested Balance at Beginning of the Year 502,857 $ 78.12 Granted 385,244 72.07 Vested (195,847) 62.18 Forfeited (91,933) 79.96 Nonvested Balance at December 31, 2021 600,321 $ 79.15 |
Policyholder Contract Liabili_2
Policyholder Contract Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Schedule of Liability for Future Policy Benefits | Policyholder Obligations at December 31, 2021 and 2020 were as follows: DOLLARS IN MILLIONS December 31, 2021 2020 FHLB Funding Agreements $ 401.9 $ 407.8 Universal Life-type Policyholder Account Balances 102.1 59.2 Total $ 504.0 $ 467.0 |
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank | DOLLARS IN MILLIONS 2021 2020 Liability under Funding Agreements $ 401.9 $ 407.8 Fair Value of Collateral Pledged 556.6 530.5 FHLB of Chicago Common Stock Owned at Cost 11.8 11.8 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Total amortized cost of Long-term Debt outstanding at December 31, 2021 and 2020 was: (Dollars in Millions) Dec 31, Dec 31, Term Loan due July 5, 2023 $ — $ 49.9 5.000% Senior Notes due September 19, 2022 276.7 278.3 4.350% Senior Notes due February 15, 2025 449.0 448.8 2.400% Senior Notes due September 30, 2030 396.2 395.8 Total Long-term Debt Outstanding $ 1,121.9 $ 1,172.8 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lease, Cost | The following table presents operating lease right-of-use assets and lease liabilities. (Dollars in Millions) 2021 2020 Operating Lease Right-of-Use Assets $ 64.4 $ 68.6 Operating Lease Liabilities 84.8 89.6 Lease expenses are primarily included in insurance expenses in the Consolidated Statements of Income. Additional information regarding the Company’s operating leases is presented below. (Dollars in Millions) 2021 2020 Lease Cost: Amortization of Right-of-Use Assets - Finance Leases $ 0.2 $ 0.3 Operating Lease Cost 22.3 20.9 Variable Lease Cost 0.2 — Short-Term Lease Cost (1) 5.0 4.6 Total Lease Expense $ 27.7 $ 25.8 Less: Sub-Lease Income 0.3 — Total Lease Cost $ 27.4 $ 25.8 (1) - Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheet. DOLLARS IN MILLIONS 2021 2020 Operating Lease Right-of-Use Assets $ 12.8 $ 13.4 Operating Lease Liabilities 25.8 26.9 Supplemental cash flow information related to Kemper’s operating leases for the year-ended December 31, 2021 and December 31, 2020 respectively are presented follows. DOLLARS IN MILLIONS 2021 2020 Operating Cash Flows from Operating Leases (Fixed Payments) $ 2.2 $ (2.1) Operating Cash Flows from Operating Leases (Liability Reduction) 1.1 0.3 Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities — — Significant judgments and assumptions for determining lease asset and liability as December 31, 2021 and December 31, 2020 respectively are presented below. DOLLARS IN MILLIONS 2021 2020 Weighted-average Remaining Lease Term - Operating Leases 11.9 years 13.0 years Weighted-average Discount Rate - Operating Leases 4.0 % 4.0 % |
Schedule of Future Minimum Lease Payments for Operating Leases | Future minimum operating lease payments at December 31, 2021 were: DOLLARS IN MILLIONS Operating 2022 $ 2.4 2023 2.4 2024 2.5 2025 2.6 2026 2.6 2027 and Thereafter 20.4 Total Future Payments $ 32.9 Less Discount 7.1 Present Value of Minimum Lease Payments $ 25.8 |
Catastrophe Reinsurance (Tables
Catastrophe Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Retention Policy | Coverage on individual catastrophes provided under the excess of loss reinsurance contracts effective January 1, 2021 to December 31, 2021 is provided in various layers as presented below. DOLLARS IN MILLIONS Catastrophe Losses and Percentage In Excess of Up to Retained $ — $ 50.0 — % 1st Layer of Coverage 50.0 150.0 95.0 2nd Layer of Coverage 150.0 250.0 95.0 3rd Layer of Coverage 250.0 275.0 95.0 Coverage on individual catastrophes provided under the excess of loss reinsurance contracts effective January 1, 2020 to December 31, 2020 is provided in various layers as presented below. DOLLARS IN MILLIONS Catastrophe Losses and Percentage In Excess of Up to Retained $ — $ 50.0 — % 1st Layer of Coverage 50.0 150.0 95.0 2nd Layer of Coverage 150.0 250.0 95.0 3rd Layer of Coverage 250.0 275.0 95.0 Coverage on individual catastrophes provided under the excess of loss reinsurance contracts effective January 1, 2019 to December 31, 2019 is provided in various layers as presented below. DOLLARS IN MILLIONS Catastrophe Losses and Percentage In Excess of Up to Retained $ — $ 50.0 — % 1st Layer of Coverage 50.0 150.0 95.0 2nd Layer of Coverage 150.0 250.0 95.0 3rd Layer of Coverage 250.0 275.0 95.0 Coverage provided under the 2021 aggregate property catastrophe reinsurance contract is summarized below. Aggregate Catastrophe DOLLARS IN MILLIONS In Excess of Up to Retained $ — $ 60.0 Coverage 60.0 110.0 Coverage provided under the 2020 aggregate property catastrophe reinsurance contract is summarized below. Aggregate Catastrophe DOLLARS IN MILLIONS In Excess of Up to Retained $ — $ 60.0 Coverage 60.0 110.0 |
Catastrophe Reinsurance Premiums | Reinsurance premiums for the Company’s catastrophe reinsurance programs and the FHCF Program reduced earned premiums for the years ended December 31, 2021, 2020 and 2019 by the following: DOLLARS IN MILLIONS 2021 2020 2019 Specialty Property & Casualty Insurance $ 7.0 $ 4.8 $ 0.2 Preferred Property & Casualty Insurance 22.0 20.7 20.2 Life & Health Insurance 1.3 1.2 0.1 Total Ceded Catastrophe Reinsurance Premiums $ 30.3 $ 26.7 $ 20.5 |
Catastrophe Losses and LAE, Net Reinsurance Recoveries | Catastrophe losses and LAE (including reserve development), net of reinsurance recoveries, for the years ended December 31, 2021, 2020 and 2019 by business segment are presented below. DOLLARS IN MILLIONS 2021 2020 2019 Specialty Property & Casualty Insurance $ 16.0 $ 12.5 $ 11.6 Preferred Property & Casualty Insurance 73.5 81.5 44.6 Life & Health Insurance 12.9 12.9 3.9 Total Catastrophe Losses and LAE $ 102.4 $ 106.9 $ 60.1 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the Company’s Net Deferred Income Tax Assets and Deferred Income Tax Liabilities at December 31, 2021 and 2020 were: DOLLARS IN MILLIONS 2021 2020 Deferred Income Tax Assets: Insurance Reserves $ 31.9 $ 18.4 Unearned Premium Reserves 78.3 66.7 Tax Capitalization of Policy Acquisition Costs 46.6 46.6 Payroll and Employee Benefit Accruals 36.4 35.6 Net Operating Loss Carryforwards 3.6 1.1 Other 11.6 13.4 Total Deferred Income Tax Assets 208.4 181.8 Deferred Income Tax Liabilities: Investments 209.1 258.8 Deferred Policy Acquisition Costs 142.4 123.7 Life VIF and P&C Customer Relationships 4.6 5.0 Goodwill and Other Intangible Assets Acquired 38.0 35.5 Depreciable Assets 38.7 42.1 Other 2.6 2.4 Total Deferred Income Tax Liabilities 435.4 467.5 Net Deferred Income Tax Liabilities $ 227.0 $ 285.7 |
Summary of Operating Loss Carryforwards | The expiration of federal net operating loss (“NOL”) carryforwards and their related deferred income tax assets at December 31, 2021 is presented below by year of expiration. DOLLARS IN MILLIONS NOL Carry-forwards Deferred Tax Asset Expiring in: 2027 $ 0.8 $ 0.2 2028 4.4 0.9 No Expiration 12.3 2.5 Total All Years $ 17.5 $ 3.6 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of Unrecognized Tax Benefits for the years ended December 31, 2021, 2020 and 2019 is presented below. DOLLARS IN MILLIONS 2021 2020 2019 Liabilities for Unrecognized Tax Benefits at Beginning of Year $ — $ — $ 4.4 Additions for Tax Positions of Current Year — — — Reductions for Tax Positions of Prior Years — — (4.4) Liabilities for Unrecognized Tax Benefits at End of Year $ — $ — $ — |
Schedule of Components of Income Tax Expense (Benefit) | The components of Income Tax Expense from Operations for the years ended December 31, 2021, 2020 and 2019 were: DOLLARS IN MILLIONS 2021 2020 2019 Current Income Tax Benefit (Expense) $ 122.7 $ (86.6) $ (66.4) Deferred Income Tax Benefit (Expense) 2.1 (13.6) (68.5) (Increase) Decrease Unrecognized Tax Benefits — — 4.4 Income Tax Benefit (Expense) $ 124.8 $ (100.2) $ (130.5) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the Statutory Federal Income Tax Benefit (Expense) and Rate to the Company’s Effective Income Tax Benefit (Expense) and Rate from Operations for the years ended December 31, 2021, 2020 and 2019 is presented below. DOLLARS IN MILLIONS 2021 2020 2019 Amount Rate Amount Rate Amount Rate Statutory Federal Income Tax Benefit (Expense) $ 51.5 21.0 % $ (107.1) 21.0 % $ (138.9) 21.0 % Tax-exempt Income and Dividends Received Deduction 4.6 1.9 4.0 (0.8) 4.3 (0.7) Untaxed Earnings on Company-Owned Life Insurance 5.4 2.2 2.7 (0.5) 1.6 (0.2) Investment tax credits 66.1 27.0 3.2 (0.6) — — Stock-Based Compensation 0.3 0.1 2.2 (0.5) 4.4 (0.7) Nondeductible Executive Compensation (2.7) (1.1) (2.7) 0.5 (2.5) 0.4 Other, Net (0.4) (0.2) (2.5) 0.5 0.6 (0.1) Effective Income Tax Benefit (Expense) $ 124.8 50.9 % $ (100.2) 19.6 % $ (130.5) 19.7 % |
Comprehensive Income Tax Benefit and Expenses | Comprehensive Income Tax (Expense) Benefit included in the Consolidated Financial Statements for the years ended December 31, 2021, 2020 and 2019 was: DOLLARS IN MILLIONS 2021 2020 2019 Income Tax Benefit (Expense): Operations $ 124.8 $ (100.2) $ (130.5) Unrealized Depreciation (Appreciation) on Securities (60.1) (78.3) (85.2) Tax Effects from Postretirement Benefit Plans (2.4) (15.3) 1.7 Tax Effects from Cash Flow Hedge 0.1 — (0.1) Comprehensive Income Tax (Expense) Benefit $ 62.4 $ (193.8) $ (214.1) |
Schedule 2 - Parent Company F_3
Schedule 2 - Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Balance Sheets | KEMPER CORPORATION PARENT COMPANY BALANCE SHEETS (Dollars in Millions) December 31, 2021 2020 ASSETS Investments in Subsidiaries $ 4,729.1 $ 4,896.0 Fixed Maturities at Fair Value (Amortized Cost: 2021 – $0.3; 2020 - $91.8) 0.4 99.8 Equity Securities at Fair Value (Cost: 2021 - $106.8; 2020 - $73.4) 107.4 78.8 Short-term Investments 96.9 508.2 Cash 27.7 46.0 Other Receivables 2.3 1.1 Right-of-Use Assets 12.8 13.4 Other Assets 18.9 29.2 Total Assets $ 4,995.5 $ 5,672.5 LIABILITIES AND SHAREHOLDERS’ EQUITY Term Loan due July 5, 2023 (Fair Value: 2021 – $—; 2020 – $50.0) $ — $ 49.9 Senior Notes Payable, 4.35% due 2025 (Fair Value: 2021 – $481.4; 2020 – $499.5) 449.0 448.8 Senior Notes Payable, 2.40% due 2030 (Fair Value: 2021 – $387.8, 2020 – $405.6) 396.2 395.8 Current Income Tax Liability 18.5 41.5 Deferred Income Tax Liability 46.5 38.9 Liabilities for Benefit Plans 42.3 47.6 Right-of-Use Liabilities 25.8 26.9 Accrued Expenses and Other Liabilities 9.5 59.7 Total Liabilities 987.8 1,109.1 Shareholders’ Equity: Common Stock 6.4 6.5 Additional Paid-in Capital 1,790.7 1,805.2 Retained Earnings 1,762.5 2,071.2 Accumulated Other Comprehensive Income 448.1 680.5 Total Shareholders’ Equity 4,007.7 4,563.4 Total Liabilities and Shareholders’ Equity $ 4,995.5 $ 5,672.5 See Accompanying Report of Independent Registered Public Accounting Firm. |
Parent Company Statements of Income | KEMPER CORPORATION PARENT COMPANY STATEMENTS OF INCOME (Dollars in Millions) For the Year Ended December 31, 2021 2020 2019 Net Investment Income $ 3.4 $ 1.4 $ 2.1 Income from Change in Fair Value of Equity Securities 10.0 4.3 1.6 Net Realized Gains (Losses) on Sales of Investments 10.6 0.1 0.3 Total Revenues 24.0 5.8 4.0 Interest Expense 32.0 24.2 28.5 Loss from Early Extinguishment of Debt — — 5.8 Pension Settlement Expense — 64.1 — Other Operating (Benefits) Expenses 5.9 (3.6) 4.0 Total Operating Expenses 37.9 84.7 38.3 Loss before Income Taxes and Equity in Net Income of Subsidiaries (13.9) (78.9) (34.3) Income Tax Benefit (Expense) (0.6) 13.4 9.4 Loss before Equity in Net Income (Loss) of Subsidiaries (14.5) (65.5) (24.9) Equity in Net Income (Loss) of Subsidiaries (106.0) 475.4 556.0 Net Income (Loss) $ (120.5) $ 409.9 $ 531.1 See Accompanying Report of Independent Registered Public Accounting Firm. |
Parent Company Statements of Comprehensive Income | KEMPER CORPORATION PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME (Dollars in Millions) For the Year Ended December 31, 2021 2020 2019 Net Income (Loss) $ (120.5) $ 409.9 $ 531.1 Other Comprehensive Income (Loss): Changes in Net Unrealized Gains (Losses) on Investment Securities: Having No Credit Losses Recognized in Consolidated Statements of Income (Loss): Securities Held by Subsidiaries (230.4) 378.7 433.2 Securities Held by Parent — 8.0 0.2 Having Credit Losses Recognized in Consolidated Statements of Income (Loss): Securities Held by Subsidiaries (2.0) (2.6) — Reclassification Adjustment for Amounts Included in Net Income (Loss): Securities Held by Subsidiaries (43.5) (16.6) (27.9) Securities Held by Parent (10.6) (0.1) (0.2) Unrecognized Postretirement Benefit Costs Arising During the Year: Securities Held by Subsidiaries 0.6 — (0.6) Securities Held by Parent (9.5) 3.6 (4.2) Reclassification Adjustments for Amounts Included in Net Income (Loss): Pension Settlement Cost Recognized — 64.1 — Amortization of Unrecognized Postretirement Benefits (Costs) 0.1 2.5 (3.0) Gains (Losses) on Cash Flow Hedge 0.5 0.4 0.4 Other Comprehensive Income (Loss) before Income Taxes (294.8) 438.0 397.9 Income Tax Benefit (Expense): Changes in Net Unrealized Gains (Losses) on Investment Securities: Having No Credit Losses Recognized in Consolidated Statements of Income (Loss): Securities Held by Subsidiaries 48.4 (80.6) (91.0) Securities Held by Parent — (1.7) — Having Credit Losses Recognized in Consolidated Statements of Income (Loss): Securities Held by Subsidiaries 0.4 0.5 — Reclassification Adjustment for Amounts Included in Net Income (Loss): Securities Held by Subsidiaries 9.1 3.5 5.8 Securities Held by Parent 2.2 — — Unrecognized Postretirement Benefit Costs Arising During the Year: Securities Held by Subsidiaries (0.1) — — Securities Held by Parent 2.5 (1.3) 1.0 Reclassification Adjustments for Amounts Included in Net Income (Loss): Pension Settlement Cost Recognized — (13.5) — Amortization of Unrecognized Postretirement Benefit Costs — (0.5) 0.7 Changes in Gain (Loss) on Cash Flow Hedges (0.1) — (0.1) Income Tax Benefit (Expense) 62.4 (93.6) (83.6) Other Comprehensive Income (Loss) (232.4) 344.4 314.3 Total Comprehensive Income (Loss) $ (352.9) $ 754.3 $ 845.4 See Accompanying Report of Independent Registered Public Accounting Firm. |
Parent Company Statements of Cash Flows | KEMPER CORPORATION PARENT COMPANY STATEMENTS OF CASH FLOWS (Dollars in Millions) For the Year Ended December 31, 2021 2020 2019 Operating Activities: Net Income (Loss) $ (120.5) $ 409.9 $ 531.1 Adjustment Required to Reconcile Net Income (Loss) to Net Cash Provided by Operations: Equity in Net Income (Loss) of Subsidiaries 106.0 (475.4) (556.0) Cash Dividends from Subsidiaries 170.3 216.2 239.0 Net Realized Investment (Gains) Losses (10.6) (0.1) (0.3) Settlement Costs Related to Defined Benefit Pension Plan — 64.1 — Contribution to Defined Benefit Pension Plan — — (55.3) Loss from Early Extinguishment of Debt — — 5.8 Decrease (Increase) in Value of Equity and Convertible Securities at Fair Value (10.0) (4.3) (1.6) Other, Net (35.3) 52.2 9.8 Net Cash Provided by Operating Activities 99.9 262.6 172.5 Investing Activities: Capital Contributed to Subsidiaries (36.5) (62.0) (83.0) Capital Distribution from Subsidiaries — — 85.0 Proceeds from Sales, Calls and Maturities of Fixed Maturities 181.3 2.0 12.7 Proceeds from the Sales or Paydowns of Investments: Equity Securities 28.5 2.2 15.3 Purchases of Investments: Equity Securities (48.7) (21.0) (48.9) Net Sales (Purchases) of Short-term Investments 411.3 (415.7) (23.3) Acquisition of Business (370.9) — — Net Cash Provided (Used) by Investing Activities 165.0 (494.5) (42.2) Financing Activities: Net Proceeds from Issuance of Long-term Debt — 395.6 49.9 Repayments of Long-term Debt (50.0) — (185.0) Proceeds from Issuance of Common Stock, Net of Transaction Costs — — 127.5 Proceeds from Shares Issued under Employee Stock Purchase Plan 5.4 4.4 1.6 Common Stock Repurchases (161.7) (110.4) — Dividends and Dividend Equivalents Paid (80.6) (78.9) (67.8) Other 3.7 5.4 2.4 Net Cash Provided (Used) by Financing Activities (283.2) 216.1 (71.4) Increase (Decrease) in Cash (18.3) (15.8) 58.9 Cash, Beginning of Year 46.0 61.8 2.9 Cash, End of Year $ 27.7 $ 46.0 $ 61.8 See Accompanying Report of Independent Registered Public Accounting Firm. |
Lease, Cost | The following table presents operating lease right-of-use assets and lease liabilities. (Dollars in Millions) 2021 2020 Operating Lease Right-of-Use Assets $ 64.4 $ 68.6 Operating Lease Liabilities 84.8 89.6 Lease expenses are primarily included in insurance expenses in the Consolidated Statements of Income. Additional information regarding the Company’s operating leases is presented below. (Dollars in Millions) 2021 2020 Lease Cost: Amortization of Right-of-Use Assets - Finance Leases $ 0.2 $ 0.3 Operating Lease Cost 22.3 20.9 Variable Lease Cost 0.2 — Short-Term Lease Cost (1) 5.0 4.6 Total Lease Expense $ 27.7 $ 25.8 Less: Sub-Lease Income 0.3 — Total Lease Cost $ 27.4 $ 25.8 (1) - Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheet. DOLLARS IN MILLIONS 2021 2020 Operating Lease Right-of-Use Assets $ 12.8 $ 13.4 Operating Lease Liabilities 25.8 26.9 Supplemental cash flow information related to Kemper’s operating leases for the year-ended December 31, 2021 and December 31, 2020 respectively are presented follows. DOLLARS IN MILLIONS 2021 2020 Operating Cash Flows from Operating Leases (Fixed Payments) $ 2.2 $ (2.1) Operating Cash Flows from Operating Leases (Liability Reduction) 1.1 0.3 Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities — — Significant judgments and assumptions for determining lease asset and liability as December 31, 2021 and December 31, 2020 respectively are presented below. DOLLARS IN MILLIONS 2021 2020 Weighted-average Remaining Lease Term - Operating Leases 11.9 years 13.0 years Weighted-average Discount Rate - Operating Leases 4.0 % 4.0 % |
Schedule of Future Minimum Lease Payments for Operating Leases | Future minimum operating lease payments at December 31, 2021 were: DOLLARS IN MILLIONS Operating 2022 $ 2.4 2023 2.4 2024 2.5 2025 2.6 2026 2.6 2027 and Thereafter 20.4 Total Future Payments $ 32.9 Less Discount 7.1 Present Value of Minimum Lease Payments $ 25.8 |
Summary of Accounting Policie_3
Summary of Accounting Policies and Accounting Changes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses | $ 4,600.8 | $ 3,323.6 | $ 3,188.3 |
Reinsurance recoverables | 41.9 | 50.1 | |
Accrued investment income | 79.6 | 77.1 | |
Company-Owned Life Insurance | 448.1 | 327.4 | |
Definite-lived intangible assets | 706.4 | 607.5 | |
Finite-lived intangible assets, net | 292.9 | $ 272.3 | |
Life Insurance | Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Interest rate assumptions | 3.00% | ||
Life Insurance | Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Interest rate assumptions | 7.00% | ||
Value of Business Acquired | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Definite-lived intangible assets | 237.5 | $ 194.5 | |
Finite-lived intangible assets, net | 19 | 20.3 | |
Customer Relationships | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Definite-lived intangible assets | 43.8 | 39 | |
Finite-lived intangible assets, net | 5.7 | 3.4 | |
Agent Relationships | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Definite-lived intangible assets | 81.6 | 74.4 | |
Finite-lived intangible assets, net | $ 58 | $ 57.6 |
Income from Continuing Operat_3
Income from Continuing Operations Per Unrestricted Share - Reconciliation of Numerator and Denominator in Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Net Income (Loss) | $ (120.5) | $ 409.9 | $ 531.1 |
Dilutive Effect on Income of Equity-based Compensation Equivalent Shares | $ 0 | $ 0 | $ 0 |
Weighted-average Unrestricted Shares Outstanding (in shares) | 64,264,400 | 65,636,100 | 65,880,900 |
Equity-based Compensation Equivalent Shares (in shares) | 0 | 1,093,700 | 667,200 |
Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution (in shares) | 64,264,400 | 66,729,800 | 66,548,100 |
Basic Income from Continuing Operations Per Unrestricted Share (in dollars per share) | $ 8.04 | ||
Diluted Income from Continuing Operations Per Unrestricted Share (in dollars per share) | $ 7.96 | ||
Common Stock | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Net Income (Loss) | $ (120.5) | $ 409.5 | $ 529.4 |
Diluted Net Income (Loss) Attributed to Unrestricted Shares | $ (120.5) | 409.5 | 529.4 |
Participating Awards | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Net Income (Loss) | $ 0.4 | $ 1.7 |
Income from Continuing Operat_4
Income from Continuing Operations Per Unrestricted Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 2,180,100 | 874,500 | 556,400 |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 2,180,100 | 874,500 | 556,400 |
Acquisition of Business - Narra
Acquisition of Business - Narrative (Details) | Nov. 23, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)agent | Dec. 31, 2019USD ($) | Apr. 01, 2021USD ($) |
Business Acquisition [Line Items] | |||||
Repayments of secured debt | $ 394,000,000 | $ 304,800,000 | $ 383,600,000 | ||
Goodwill | 1,312,000,000 | 1,114,000,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 370,900,000 | ||||
Business Acquisition, Pro Forma Revenue | 5,884,200,000 | 5,585,700,000 | |||
Business Acquisition, Pro Forma Total Expenses | 6,109,500,000 | 5,040,100,000 | |||
Business Acquisition, Pro Forma Net Income (Loss) | (225,300,000) | 545,600,000 | |||
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax | $ (105,100,000) | 443,000,000 | |||
License | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 2,500,000 | ||||
Customer Relationships | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 4,800,000 | ||||
Agent Relationships | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 7,200,000 | ||||
Software Development | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 6,500,000 | ||||
Trade Names | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 1,800,000 | ||||
Property and Casualty Insurance Reserves | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (211,100,000) | ||||
Unearned Premium | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (177,800,000) | ||||
Deferred Income Tax Liabilities | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (7,800,000) | ||||
Other Liabilities | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (51,000,000) | ||||
Interest on Fixed Income Securities | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities | 151,200,000 | ||||
Dividends on Equity Securities Excluding Alternative Investments | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities | 82,400,000 | ||||
Short-term Investments | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities | 100,100,000 | ||||
Cash | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 54,300,000 | ||||
Premiums Receivable | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 148,900,000 | ||||
Receivables Other than Premium Receivable | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 2,000,000 | ||||
Goodwill | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 198,000,000 | ||||
Current Income Tax Asset | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 300,000 | ||||
Other Assets | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 81,400,000 | ||||
American Access Casualty Company | |||||
Business Acquisition [Line Items] | |||||
Total consideration transferred | $ 370,900,000 | ||||
Direct Premiums Written | $ 350,000,000 | ||||
Present Value of Future Insurance Profits, Net | $ 42,900,000 | ||||
Number Of Independent Agents | agent | 600 |
Acquisition of Business - Purch
Acquisition of Business - Purchase Price Allocation (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Apr. 01, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,312 | $ 1,114 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 370.9 | ||
Property and Casualty Insurance Reserves | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (211.1) | ||
Unearned Premium | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (177.8) | ||
Deferred Income Tax Liabilities | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (7.8) | ||
Other Liabilities | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (51) | ||
Interest on Fixed Income Securities | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities | 151.2 | ||
Dividends on Equity Securities Excluding Alternative Investments | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities | 82.4 | ||
Short-term Investments | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities | 100.1 | ||
Cash | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 54.3 | ||
Premiums Receivable | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 148.9 | ||
Receivables Other than Premium Receivable | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 2 | ||
Goodwill | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 198 | ||
Current Income Tax Asset | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 0.3 | ||
Other Assets | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ 81.4 |
Business Segments - Narrative (
Business Segments - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 3 | ||
Allocated corporate expenses | $ | $ 121.9 | $ 109.5 | $ 103.9 |
Business Segments - Segment Ass
Business Segments - Segment Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Total Assets | $ 14,916.5 | $ 14,341.9 |
Specialty Property & Casualty Insurance | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 5,936.5 | 4,897.1 |
Preferred Property & Casualty Insurance | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 1,230.1 | 1,711.2 |
Life & Health Insurance | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 6,062.6 | 6,457 |
Corporate and Other, Net | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ 1,687.3 | $ 1,276.6 |
Business Segments - Earned Prem
Business Segments - Earned Premiums by Product Line (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Earned Premiums | $ 5,253.7 | $ 4,672.2 | $ 4,472.4 |
Operating Segments | Specialty Property & Casualty Insurance | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Earned Premiums | 3,948.5 | 3,335.3 | 3,078.4 |
Operating Segments | Specialty Property & Casualty Insurance | Specialty Automobile | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Earned Premiums | 3,533.7 | 3,031.3 | 2,825.6 |
Operating Segments | Specialty Property & Casualty Insurance | Commercial Automobile | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Earned Premiums | 414.8 | 304 | 252.8 |
Operating Segments | Preferred Property & Casualty Insurance | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Earned Premiums | 651.7 | 688.2 | 750.3 |
Operating Segments | Preferred Property & Casualty Insurance | Preferred Automobile | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Earned Premiums | 410.5 | 431.7 | 470.2 |
Operating Segments | Preferred Property & Casualty Insurance | Homeowners | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Earned Premiums | 207.3 | 220.7 | 241.3 |
Operating Segments | Preferred Property & Casualty Insurance | Other Personal Lines | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Earned Premiums | 33.9 | 35.8 | 38.8 |
Operating Segments | Life & Health Insurance | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Earned Premiums | 653.5 | 648.7 | 643.7 |
Operating Segments | Life & Health Insurance | Life | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Earned Premiums | 401.7 | 385.7 | 384.6 |
Operating Segments | Life & Health Insurance | Accident & Health | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Earned Premiums | 189.9 | 199.3 | 190.9 |
Operating Segments | Life & Health Insurance | Property | |||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||
Earned Premiums | $ 61.9 | $ 63.7 | $ 68.2 |
Business Segments - Segment Rev
Business Segments - Segment Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Earned Premiums | $ 5,253.7 | $ 4,672.2 | $ 4,472.4 |
Net Investment Income | 427.3 | 348.2 | 364.3 |
Other Income (Loss) | 4.8 | 94.6 | 35.5 |
Total Revenues | 5,793 | 5,205.7 | 5,039.2 |
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | 114.6 | 72.1 | 138.9 |
Net Realized Gains on the Sales of Investments | 64.8 | 38.1 | 41.9 |
Net Impairment Losses Recognized in Earnings | (11) | (19.5) | (13.8) |
Change in Value of Alternative Energy Partnership Investments | (61.2) | 0 | 0 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 5,619.2 | 5,025.3 | 4,845.9 |
Operating Segments | Specialty Property & Casualty Insurance | |||
Segment Reporting Information [Line Items] | |||
Earned Premiums | 3,948.5 | 3,335.3 | 3,078.4 |
Net Investment Income | 152.5 | 114.1 | 107.5 |
Other Income (Loss) | 4.1 | 1.8 | 7 |
Total Revenues | 4,076.1 | 3,451.2 | 3,192.9 |
Change in Value of Alternative Energy Partnership Investments | (29) | 0 | 0 |
Operating Segments | Preferred Property & Casualty Insurance | |||
Segment Reporting Information [Line Items] | |||
Earned Premiums | 651.7 | 688.2 | 750.3 |
Net Investment Income | 68.6 | 37.7 | 44.1 |
Other Income (Loss) | 0 | 0.1 | |
Total Revenues | 704 | 726 | 794.4 |
Change in Value of Alternative Energy Partnership Investments | (16.3) | ||
Operating Segments | Life & Health Insurance | |||
Segment Reporting Information [Line Items] | |||
Earned Premiums | 653.5 | 648.7 | 643.7 |
Net Investment Income | 202.7 | 198.8 | 206.4 |
Other Income (Loss) | (1.3) | 0.6 | 8.5 |
Total Revenues | 839.1 | 848.1 | 858.6 |
Change in Value of Alternative Energy Partnership Investments | (15.8) | ||
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | 114.6 | 72.1 | 138.9 |
Net Realized Gains on the Sales of Investments | 64.8 | 38.1 | 41.9 |
Net Impairment Losses Recognized in Earnings | (11) | (19.5) | (13.8) |
Other | $ 5.4 | $ 89.7 | $ 26.3 |
Business Segments - Segment Ope
Business Segments - Segment Operating Profit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Segment Operating Profit (Loss) | $ (369.8) | $ 546.8 | $ 518.8 |
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | 114.6 | 72.1 | 138.9 |
Net Realized Gains on the Sales of Investments | 64.8 | 38.1 | 41.9 |
Net Impairment Losses Recognized in Earnings | (11) | (19.5) | (13.8) |
Pension Obligation Settlement Costs | 64.1 | ||
Loss from Early Extinguishment of Debt | 0 | 0 | (5.8) |
Income (Loss) before Income Taxes | (245.3) | 510.1 | 661.6 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Segment Operating Profit (Loss) | (321.4) | 493.9 | 530.1 |
Operating Segments | Specialty Property & Casualty Insurance | |||
Segment Reporting Information [Line Items] | |||
Segment Operating Profit (Loss) | (292.1) | 420.9 | 355.9 |
Operating Segments | Preferred Property & Casualty Insurance | |||
Segment Reporting Information [Line Items] | |||
Segment Operating Profit (Loss) | (39.8) | 1.8 | 52.3 |
Operating Segments | Life & Health Insurance | |||
Segment Reporting Information [Line Items] | |||
Segment Operating Profit (Loss) | 10.5 | 71.2 | 121.9 |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Segment Operating Profit (Loss) | (48.4) | 52.9 | (11.3) |
Partial Satisfaction of Judgment | 0 | 89.4 | 20.1 |
Other | (48.4) | (36.5) | (31.4) |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | 114.6 | 72.1 | 138.9 |
Net Realized Gains on the Sales of Investments | 64.8 | 38.1 | 41.9 |
Net Impairment Losses Recognized in Earnings | (11) | (19.5) | (13.8) |
Acquisition Related Transaction, Integration and Other Costs | (43.9) | (63.3) | (18.4) |
Pension Obligation Settlement Costs | $ 0 | $ (64.1) | $ 0 |
Business Segments - Segment Net
Business Segments - Segment Net Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Segment Net Operating Income (Loss) | $ (218.8) | $ 438.8 | $ 418.3 |
Loss from Early Extinguishment of Debt | 0 | 0 | (4.6) |
Net Income (Loss) | (120.5) | 409.9 | 531.1 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Segment Net Operating Income (Loss) | (180.4) | 401.4 | 423.7 |
Operating Segments | Specialty Property & Casualty Insurance | |||
Segment Reporting Information [Line Items] | |||
Segment Net Operating Income (Loss) | (196.1) | 337.9 | 283.1 |
Operating Segments | Preferred Property & Casualty Insurance | |||
Segment Reporting Information [Line Items] | |||
Segment Net Operating Income (Loss) | (12.5) | 3.5 | 41.9 |
Operating Segments | Life & Health Insurance | |||
Segment Reporting Information [Line Items] | |||
Segment Net Operating Income (Loss) | 28.2 | 60 | 98.7 |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Segment Net Operating Income (Loss) | (38.4) | 37.4 | (5.4) |
Partial Satisfaction of Judgment | 0 | 70.6 | 15.9 |
Other | (38.4) | (33.2) | (21.3) |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Change in Fair Value of Equity and Convertible Securities | 90.5 | 57 | 109.7 |
Net Realized Gains on Sales of Investments | 51.2 | 30.1 | 33.1 |
Impairment Losses | (8.7) | (15.4) | (10.9) |
Acquisition Related Transaction, Integration and Other Costs | $ (34.7) | $ (50) | $ (14.5) |
Business Segments - Amortizatio
Business Segments - Amortization of Deferred Policy Acquisition Costs By Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Amortization of deferred policy acquisition costs | $ 684.3 | $ 641.8 | $ 408.3 |
Property and Casualty Insuran_3
Property and Casualty Insurance Reserves - Short-duration Insurance Contracts, Claims Development (Details) $ in Millions | Dec. 31, 2021USD ($)claim | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Loss and Allocated LAE Reserves, Net of Reinsurance | $ 2,491.9 | ||||
Specialty Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 7,281.3 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | 5,581.5 | ||||
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance | 22.5 | ||||
Loss and Allocated LAE Reserves, Net of Reinsurance | 1,722.3 | ||||
Specialty Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 3,317.3 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | 3,255.3 | ||||
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance | 1.6 | ||||
Loss and Allocated LAE Reserves, Net of Reinsurance | 63.6 | ||||
Commercial Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 729.5 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | 443.2 | ||||
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance | 14.1 | ||||
Loss and Allocated LAE Reserves, Net of Reinsurance | 300.4 | ||||
Commercial Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 158.5 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | 149 | ||||
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance | 0.4 | ||||
Loss and Allocated LAE Reserves, Net of Reinsurance | 9.9 | ||||
Preferred Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 853.9 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | 601.9 | ||||
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance | 10.2 | ||||
Loss and Allocated LAE Reserves, Net of Reinsurance | 262.2 | ||||
Preferred Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 558 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | 552.6 | ||||
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance | 0 | ||||
Loss and Allocated LAE Reserves, Net of Reinsurance | 5.4 | ||||
Homeowners Insurance | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 892 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | 813.9 | ||||
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance | 3.3 | ||||
Loss and Allocated LAE Reserves, Net of Reinsurance | 81.4 | ||||
2015 | Specialty Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 1,197.4 | $ 1,181.6 | $ 1,185.6 | $ 1,175.6 | $ 1,170.2 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 15.1 | ||||
Cumulative Number of Reported Claims | claim | 458,261 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 1,169.3 | 1,141.9 | 1,092.9 | 945.5 | 498.3 |
2015 | Specialty Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 522.4 | 522.5 | 522 | 522.5 | 533.1 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (0.1) | ||||
Cumulative Number of Reported Claims | claim | 296,392 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 522.5 | 522.7 | 523 | 525.6 | 493.2 |
2015 | Commercial Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 114.4 | 114.3 | 118.3 | 120 | 120.5 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 2.3 | ||||
Cumulative Number of Reported Claims | claim | 19,967 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 107.2 | 101.7 | 90.7 | 72.3 | 36.3 |
2015 | Commercial Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 23.4 | 23.4 | 23.5 | 23.5 | 24.2 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0 | ||||
Cumulative Number of Reported Claims | claim | 9,792 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 23.4 | 23.4 | 23.4 | 23.5 | 22.2 |
2015 | Preferred Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 160 | 158.2 | 155.8 | 157.8 | 164.4 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0.6 | ||||
Cumulative Number of Reported Claims | claim | 33,734 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 150.6 | 143.2 | 134.1 | 108.9 | 59.2 |
2015 | Preferred Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 105.2 | 105.1 | 105.2 | 105.8 | 109.2 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0 | ||||
Cumulative Number of Reported Claims | claim | 62,685 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 105.2 | 105.1 | 105.2 | 106.1 | 104.4 |
2015 | Homeowners Insurance | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 243.9 | 243.8 | 245.2 | 259.5 | 261.2 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 1.3 | ||||
Cumulative Number of Reported Claims | claim | 19,619 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 241.7 | 239.5 | 235.7 | 242.5 | $ 165.8 |
2016 | Specialty Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 1,314.5 | 1,307.8 | 1,310.5 | 1,324 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 24 | ||||
Cumulative Number of Reported Claims | claim | 508,623 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 1,265.5 | 1,211.8 | 1,050.8 | 541.3 | |
2016 | Specialty Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 547.8 | 548 | 548.6 | 558.9 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (0.6) | ||||
Cumulative Number of Reported Claims | claim | 309,577 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 548.3 | 549 | 553.1 | 509.4 | |
2016 | Commercial Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 110.9 | 113 | 116.5 | 123.2 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 4.7 | ||||
Cumulative Number of Reported Claims | claim | 20,195 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 98.1 | 88.1 | 68.8 | 36.8 | |
2016 | Commercial Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 23.6 | 23.6 | 23.5 | 23.6 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0.1 | ||||
Cumulative Number of Reported Claims | claim | 9,569 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 23.6 | 23.6 | 23.6 | 21.7 | |
2016 | Preferred Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 163.4 | 161.7 | 156.3 | 157.6 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 1.7 | ||||
Cumulative Number of Reported Claims | claim | 31,922 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 147.4 | 132.7 | 107.6 | 55.5 | |
2016 | Preferred Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 110.4 | 110.4 | 111 | 113.9 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0.1 | ||||
Cumulative Number of Reported Claims | claim | 61,921 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 110.3 | 110.4 | 111.4 | 107.2 | |
2016 | Homeowners Insurance | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 185.3 | 183.6 | 183 | 185.9 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 4.1 | ||||
Cumulative Number of Reported Claims | claim | 16,212 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 183.1 | 180 | 180.2 | $ 127.4 | |
2017 | Specialty Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 1,506.1 | 1,494.7 | 1,461.5 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 54.8 | ||||
Cumulative Number of Reported Claims | claim | 546,521 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 1,382 | 1,200.7 | 567.3 | ||
2017 | Specialty Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 629.6 | 630.3 | 624.3 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (10.5) | ||||
Cumulative Number of Reported Claims | claim | 324,321 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 630.6 | 634.8 | 570.8 | ||
2017 | Commercial Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 126.6 | 126.1 | 128.4 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 11.5 | ||||
Cumulative Number of Reported Claims | claim | 19,572 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 99.5 | 75.7 | 32.4 | ||
2017 | Commercial Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 26.9 | 27.1 | 26 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (0.5) | ||||
Cumulative Number of Reported Claims | claim | 9,305 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 26.8 | 26.9 | 23 | ||
2017 | Preferred Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 200 | 195.5 | 172.2 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 4.9 | ||||
Cumulative Number of Reported Claims | claim | 34,633 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 160.8 | 127.9 | 62.7 | ||
2017 | Preferred Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 125.9 | 125.8 | 126.4 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0.3 | ||||
Cumulative Number of Reported Claims | claim | 67,181 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 125.6 | 126.5 | 120.7 | ||
2017 | Homeowners Insurance | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 163.1 | 161.8 | 162.9 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 2.5 | ||||
Cumulative Number of Reported Claims | claim | 14,670 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 157.7 | 150.4 | $ 111.1 | ||
2018 | Specialty Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 1,406.4 | 1,401.2 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 111.6 | ||||
Cumulative Number of Reported Claims | claim | 474,346 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 1,107.6 | 555.2 | |||
2018 | Specialty Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 659.5 | 650.5 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (6.4) | ||||
Cumulative Number of Reported Claims | claim | 296,167 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 663.8 | 585.5 | |||
2018 | Commercial Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 152 | 140.5 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 25.5 | ||||
Cumulative Number of Reported Claims | claim | 19,354 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 87.6 | 37 | |||
2018 | Commercial Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 32.2 | 31.9 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0 | ||||
Cumulative Number of Reported Claims | claim | 11,011 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 31.9 | 26.2 | |||
2018 | Preferred Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 153.6 | 148.9 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 16.1 | ||||
Cumulative Number of Reported Claims | claim | 24,438 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 92.8 | 44.4 | |||
2018 | Preferred Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 98 | 96.1 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (0.5) | ||||
Cumulative Number of Reported Claims | claim | 47,603 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 98.4 | 90.9 | |||
2018 | Homeowners Insurance | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 149.8 | 157 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 4.3 | ||||
Cumulative Number of Reported Claims | claim | 13,887 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 130.8 | $ 94.6 | |||
2019 | Specialty Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 1,856.9 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 607.1 | ||||
Cumulative Number of Reported Claims | claim | 544,207 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 657.1 | ||||
2019 | Specialty Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 958 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 2.1 | ||||
Cumulative Number of Reported Claims | claim | 348,244 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 890.1 | ||||
2019 | Commercial Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 225.6 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 99.1 | ||||
Cumulative Number of Reported Claims | claim | 24,690 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 50.8 | ||||
2019 | Commercial Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 52.4 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0.4 | ||||
Cumulative Number of Reported Claims | claim | 16,494 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 43.3 | ||||
2019 | Preferred Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 176.9 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 54.1 | ||||
Cumulative Number of Reported Claims | claim | 25,149 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 50.3 | ||||
2019 | Preferred Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 118.5 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (0.7) | ||||
Cumulative Number of Reported Claims | claim | 50,533 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 113.1 | ||||
2019 | Homeowners Insurance | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 149.9 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 19.1 | ||||
Cumulative Number of Reported Claims | claim | 12,422 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 100.6 |
Property and Casualty Insuran_4
Property and Casualty Insurance Reserves - Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability (Details) $ in Millions | Dec. 31, 2021USD ($) |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |
Property and Casualty Insurance Reserves, Net of Reinsurance | $ 2,491.9 |
Reinsurance Recoverables on Unpaid Losses and Allocated LAE | 41.9 |
Unallocated LAE | 238.9 |
Property and Casualty Insurance Reserves, Gross of Reinsurance | 2,772.7 |
Specialty Personal Automobile Insurance—Liability | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |
Property and Casualty Insurance Reserves, Net of Reinsurance | 1,722.3 |
Reinsurance Recoverables on Unpaid Losses and Allocated LAE | 10.3 |
Specialty Personal Automobile Insurance—Physical Damage | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |
Property and Casualty Insurance Reserves, Net of Reinsurance | 63.6 |
Commercial Automobile Insurance—Liability | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |
Property and Casualty Insurance Reserves, Net of Reinsurance | 300.4 |
Reinsurance Recoverables on Unpaid Losses and Allocated LAE | 3.2 |
Commercial Automobile Insurance—Physical Damage | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |
Property and Casualty Insurance Reserves, Net of Reinsurance | 9.9 |
Preferred Personal Automobile Insurance—Liability | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |
Property and Casualty Insurance Reserves, Net of Reinsurance | 262.2 |
Reinsurance Recoverables on Unpaid Losses and Allocated LAE | 19.2 |
Preferred Personal Automobile Insurance—Physical Damage | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |
Property and Casualty Insurance Reserves, Net of Reinsurance | 5.4 |
Homeowners Insurance | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |
Property and Casualty Insurance Reserves, Net of Reinsurance | 81.4 |
Reinsurance Recoverables on Unpaid Losses and Allocated LAE | 5 |
Other | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |
Property and Casualty Insurance Reserves, Net of Reinsurance | 46.7 |
Reinsurance Recoverables on Unpaid Losses and Allocated LAE | $ 4.2 |
Property and Casualty Insuran_5
Property and Casualty Insurance Reserves - Historical Claims Duration (Details) | Dec. 31, 2021 |
Specialty Personal Automobile Insurance—Liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 39.10% |
Year 2 | 79.30% |
Year 3 | 91.70% |
Year 4 | 95.80% |
Year 5 | 97.70% |
Specialty Personal Automobile Insurance—Physical Damage | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 91.90% |
Year 2 | 100.80% |
Year 3 | 100.20% |
Year 4 | 100.10% |
Year 5 | 100.00% |
Commercial Automobile Insurance—Liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 27.50% |
Year 2 | 60.70% |
Year 3 | 79.10% |
Year 4 | 88.70% |
Year 5 | 93.70% |
Commercial Automobile Insurance—Physical Damage | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 87.20% |
Year 2 | 99.90% |
Year 3 | 99.90% |
Year 4 | 100.00% |
Year 5 | 100.00% |
Preferred Personal Automobile Insurance—Liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 31.90% |
Year 2 | 64.60% |
Year 3 | 81.80% |
Year 4 | 89.90% |
Year 5 | 94.20% |
Preferred Personal Automobile Insurance—Physical Damage | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 96.10% |
Year 2 | 100.70% |
Year 3 | 99.90% |
Year 4 | 99.90% |
Year 5 | 100.00% |
Homeowners | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 67.00% |
Year 2 | 94.00% |
Year 3 | 96.80% |
Year 4 | 98.50% |
Year 5 | 99.10% |
Property and Casualty Insuran_6
Property and Casualty Insurance Reserves - Reserve Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Gross of Reinsurance at Beginning of Year | $ 1,982.5 | ||
Less Reinsurance Recoverables at Beginning of Year | 50.1 | ||
Incurred Losses and LAE related to: | |||
Incurred Losses and LAE Related to Prior Years | 106.7 | $ 36.4 | $ (71.1) |
Paid Losses and LAE related to: | |||
Plus Reinsurance Recoverables at End of Year | 41.9 | 50.1 | |
Property and Casualty Insurance Reserves, Gross of Reinsurance at End of Year | 2,772.7 | 1,982.5 | |
Property and Liability Insurance | |||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Gross of Reinsurance at Beginning of Year | 1,982.5 | 1,969.8 | 1,874.9 |
Less Reinsurance Recoverables at Beginning of Year | 50.1 | 65.6 | 101.9 |
Property and Casualty Insurance Reserves, Net of Reinsurance at Beginning of Year | 1,932.4 | 1,904.2 | 1,773 |
Property and Casualty Insurance Reserves Acquired, Net of Reinsurance | 211.1 | 0 | 3.6 |
Incurred Losses and LAE related to: | |||
Incurred Losses and LAE Related to Current Year | 4,052.7 | 2,873.6 | 2,879.5 |
Incurred Losses and LAE Related to Prior Years | 106.7 | 36.4 | (71.1) |
Total Incurred Losses and LAE | 4,159.4 | 2,910 | 2,808.4 |
Paid Losses and LAE related to: | |||
Paid Losses and LAE Related to Current Year | 2,303.4 | 1,679.1 | 1,682.1 |
Paid Losses and LAE Related to Prior Years | 1,268.7 | 1,202.7 | 998.7 |
Total Paid Losses and LAE | 3,572.1 | 2,881.8 | 2,680.8 |
Property and Casualty Insurance Reserves, Net of Reinsurance at End of Year | 2,730.8 | 1,932.4 | 1,904.2 |
Plus Reinsurance Recoverables at End of Year | 41.9 | 50.1 | 65.6 |
Property and Casualty Insurance Reserves, Gross of Reinsurance at End of Year | $ 2,772.7 | $ 1,982.5 | $ 1,969.8 |
Property and Casualty Insuran_7
Property and Casualty Insurance Reserves - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred losses and LAE related to prior year (favorable) adverse development | $ 106.7 | $ 36.4 | $ (71.1) | |
Reinsurance recoverables | 41.9 | 50.1 | ||
Premium Receivable, Credit Loss Expense (Reversal) | 50.5 | 45.5 | ||
Premium Receivable, Allowance for Credit Loss, Writeoff | (57.8) | (46.9) | ||
Specialty Automobile | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred losses and LAE related to prior year (favorable) adverse development | 85.3 | 28.2 | (23.8) | |
Commercial Lines | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred losses and LAE related to prior year (favorable) adverse development | 12.4 | (12.9) | (12.9) | |
Preferred Automobile | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred losses and LAE related to prior year (favorable) adverse development | 12.1 | 26.7 | (8.2) | |
Homeowners | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred losses and LAE related to prior year (favorable) adverse development | (6.5) | (2.1) | (19.7) | |
Other Personal Lines | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred losses and LAE related to prior year (favorable) adverse development | 3.4 | (3.5) | (6.5) | |
Property and Liability Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred losses and LAE related to prior year (favorable) adverse development | 106.7 | 36.4 | (71.1) | |
Reinsurance recoverables | 41.9 | 50.1 | 65.6 | $ 101.9 |
Catastrophe | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred losses and LAE related to prior year (favorable) adverse development | $ (5.4) | $ 0.2 | $ (17.1) |
Insurance Expenses (Details)
Insurance Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Insurance Expenses [Abstract] | |||
Commissions | $ 817.6 | $ 745.8 | $ 708.8 |
General Expenses | 339.5 | 307.4 | 278 |
Taxes, Licenses and Fees | 104.3 | 94.2 | 93.5 |
Total Costs Incurred | 1,261.4 | 1,147.4 | 1,080.3 |
Policy Acquisition Costs: | |||
Deferred | (772.6) | (693.4) | (475.2) |
Amortized | 684.3 | 641.8 | 408.3 |
Net Policy Acquisition Costs Amortized | (88.3) | (51.6) | (66.9) |
Amortization of VOBA | 45 | 4.7 | 6.3 |
Insurance Expenses | $ 1,218.1 | $ 1,100.5 | $ 1,019.7 |
Investments - Amortized Cost an
Investments - Amortized Cost and Estimated Fair Value of investments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost of fixed maturities | $ 7,358.2 | $ 6,692.7 | |
Gross Unrealized Gains | 668.9 | 948.2 | |
Gross Unrealized Losses | (32.7) | (31.7) | |
Fair Value | 7,986.9 | 7,605.9 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 7.5 | 3.3 | $ 0 |
United States Government and Government Agencies and Authorities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost of fixed maturities | 610.1 | 536.5 | |
Gross Unrealized Gains | 29.2 | 48.9 | |
Gross Unrealized Losses | (1.9) | (0.1) | |
Fair Value | 637.4 | 585.3 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | ||
States and Political Subdivisions | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost of fixed maturities | 1,752.5 | 1,404.3 | |
Gross Unrealized Gains | 144.6 | 185.4 | |
Gross Unrealized Losses | (7) | (0.2) | |
Fair Value | 1,890.1 | 1,589.5 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | ||
Foreign Governments | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost of fixed maturities | 6.7 | 6.6 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (1.2) | (1.1) | |
Fair Value | 5.5 | 5.2 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0.3 | 0 |
Corporate Bonds and Notes | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost of fixed maturities | 3,929 | 3,749.5 | |
Gross Unrealized Gains | 481.4 | 689.5 | |
Gross Unrealized Losses | (16) | (10.6) | |
Fair Value | 4,386.9 | 4,425.4 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 7.5 | 3 | $ 0 |
Redeemable Preferred Stocks | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost of fixed maturities | 7 | 7 | |
Gross Unrealized Gains | 0.4 | 0.5 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 7.4 | 7.5 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | |||
Collateralized Loan Obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost of fixed maturities | 756 | 785.1 | |
Gross Unrealized Gains | 0.9 | 2.3 | |
Gross Unrealized Losses | (4.8) | (19.7) | |
Fair Value | 752.1 | 767.7 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | ||
Other Mortgage- and Asset-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized cost of fixed maturities | 296.9 | 203.7 | |
Gross Unrealized Gains | 12.4 | 21.6 | |
Gross Unrealized Losses | (1.8) | 0 | |
Fair Value | $ 307.5 | 225.3 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | $ 0 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Other receivables | $ 207,300,000 | $ 222,400,000 | |
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 1,545,300,000 | ||
Equity securities, FV-NI, unrealized gain (loss) | 111,900,000 | ||
Debt and equity securities, realized gain (loss), excluding other-than-temporary impairment | 4,200,000 | ||
Cumulative increases in the carrying value due to observable transactions | 0 | ||
Cumulative decreases in the carrying value due to observable transactions | 0 | ||
Debt and equity securities, gain (loss), excluding other-than-temporary impairment loss | 10,000,000 | ||
Total Assets | 14,916,500,000 | 14,341,900,000 | |
Liabilities | 10,908,800,000 | 9,778,500,000 | |
Net Income (Loss) | (120,500,000) | 409,900,000 | $ 531,100,000 |
Outstanding commitments to fund equity method limited liability investments | 198,500,000 | ||
Allowance for credit losses | (7,500,000) | (3,300,000) | 0 |
Additions for Securities for which No Previous Expected Credit Losses were Recognized | 5,600,000 | 7,100,000 | |
Net Increase (Decrease) in Allowance on Securities for which Expected Credit Losses were Previously Recognized | (1,100,000) | (400,000) | |
Write-offs Charged Against Allowance | (300,000) | (1,400,000) | |
Alternative Energy Partnership Investments | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Equity Method Investments | 39,600,000 | 21,300,000 | |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Total Assets | 5,042,500,000 | 3,554,500,000 | 2,368,100,000 |
Liabilities | 2,074,800,000 | 1,602,500,000 | 817,200,000 |
Net Income (Loss) | 585,100,000 | 74,900,000 | 78,000,000 |
Investments in Fixed Maturities | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Other receivables | 600,000 | 5,100,000 | |
Other liabilities | 12,700,000 | 4,300,000 | |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | 32,700,000 | 31,700,000 | |
Unrealized loss position for 12 months or longer | 5,900,000 | 20,000,000 | |
Government National Mortgage Association Certificates and Obligations (GNMA) | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 406,400,000 | ||
Federal National Mortgage Association Certificates and Obligations (FNMA) | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 46,800,000 | ||
Federal Home Loan Mortgage Corporation Certificates and Obligations (FHLMC) | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 32,600,000 | ||
Other Non-Governmental Issuers | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 1,059,500,000 | ||
Foreign Governments | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt securities, available-for-sale, unrealized loss position, accumulated loss | 1,200,000 | 1,100,000 | |
Unrealized loss position for 12 months or longer | 600,000 | 1,000,000 | |
Allowance for credit losses | 0 | (300,000) | 0 |
Additions for Securities for which No Previous Expected Credit Losses were Recognized | 0 | 1,200,000 | |
Net Increase (Decrease) in Allowance on Securities for which Expected Credit Losses were Previously Recognized | (300,000) | (200,000) | |
Write-offs Charged Against Allowance | 0 | ||
Corporate Bonds and Notes | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt securities, available-for-sale, unrealized loss position, accumulated loss | 16,000,000 | 10,600,000 | |
Unrealized loss position for 12 months or longer | 2,900,000 | 3,100,000 | |
Allowance for credit losses | (7,500,000) | (3,000,000) | $ 0 |
Additions for Securities for which No Previous Expected Credit Losses were Recognized | 5,600,000 | 5,900,000 | |
Net Increase (Decrease) in Allowance on Securities for which Expected Credit Losses were Previously Recognized | (800,000) | (200,000) | |
Write-offs Charged Against Allowance | (300,000) | (1,400,000) | |
Investment-grade | Investments in Fixed Maturities | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt securities, available-for-sale, unrealized loss position, accumulated loss | 23,700,000 | 8,000,000 | |
Non-investment-grade | Investments in Fixed Maturities | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt securities, available-for-sale, unrealized loss position, accumulated loss | $ 9,000,000 | $ 23,700,000 | |
Percentage of unrealized loss position to amortized cost basis of available for sale security average | 4.00% | 11.00% |
Investments - Schedule of Contr
Investments - Schedule of Contractual Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due in One Year or Less | $ 109 | |
Due after One Year to Five Years | 998.3 | |
Due after Five Years to Ten Years | 1,469.1 | |
Due after Ten Years | 3,255.6 | |
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 1,526.2 | |
Amortized Cost | 7,358.2 | $ 6,692.7 |
Fair Value | ||
Due in One Year or Less | 111.4 | |
Due after One Year to Five Years | 1,044.2 | |
Due after Five Years to Ten Years | 1,555.9 | |
Due after Ten Years | 3,730.1 | |
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 1,545.3 | |
Investments in Fixed Maturities | $ 7,986.9 | $ 7,605.9 |
Investments - Aging of Unrealiz
Investments - Aging of Unrealized Losses on Investments in Fixed Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
United States Government and Government Agencies and Authorities | ||
Fair Value | ||
Less Than 12 Months | $ 168.7 | $ 10.5 |
12 Months or Longer | 1.2 | 0 |
Total | 169.9 | 10.5 |
Unrealized Losses | ||
Less Than 12 Months | (1.8) | (0.1) |
12 Months or Longer | (0.1) | 0 |
Total | (1.9) | (0.1) |
States and Political Subdivisions | ||
Fair Value | ||
Less Than 12 Months | 385 | 23.3 |
12 Months or Longer | 1.5 | 0 |
Total | 386.5 | 23.3 |
Unrealized Losses | ||
Less Than 12 Months | (6.9) | (0.2) |
12 Months or Longer | (0.1) | 0 |
Total | (7) | (0.2) |
Foreign Governments | ||
Fair Value | ||
Less Than 12 Months | 2.2 | 0.5 |
12 Months or Longer | 2.6 | 2.6 |
Total | 4.8 | 3.1 |
Unrealized Losses | ||
Less Than 12 Months | (0.6) | (0.1) |
12 Months or Longer | (0.6) | (1) |
Total | (1.2) | (1.1) |
Corporate Bonds and Notes | ||
Fair Value | ||
Less Than 12 Months | 596.8 | 132.9 |
12 Months or Longer | 49.3 | 46.1 |
Total | 646.1 | 179 |
Unrealized Losses | ||
Less Than 12 Months | (13.1) | (7.5) |
12 Months or Longer | (2.9) | (3.1) |
Total | (16) | (10.6) |
Redeemable Preferred Stocks | ||
Fair Value | ||
Less Than 12 Months | 0.1 | |
12 Months or Longer | 0 | |
Total | 0.1 | |
Unrealized Losses | ||
Less Than 12 Months | 0 | |
12 Months or Longer | 0 | |
Total | 0 | |
Collateralized Loan Obligations | ||
Fair Value | ||
Less Than 12 Months | 250.9 | 145.2 |
12 Months or Longer | 192.6 | 371.4 |
Total | 443.5 | 516.6 |
Unrealized Losses | ||
Less Than 12 Months | (2.6) | (3.8) |
12 Months or Longer | (2.2) | (15.9) |
Total | (4.8) | (19.7) |
Other Mortgage- and Asset-backed | ||
Fair Value | ||
Less Than 12 Months | 100.1 | 6.3 |
12 Months or Longer | 0 | 0 |
Total | 100.1 | 6.3 |
Unrealized Losses | ||
Less Than 12 Months | (1.8) | 0 |
12 Months or Longer | 0 | 0 |
Total | (1.8) | 0 |
Investments in Fixed Maturities | ||
Fair Value | ||
Less Than 12 Months | 1,503.8 | 318.7 |
12 Months or Longer | 247.2 | 420.1 |
Total | 1,751 | 738.8 |
Unrealized Losses | ||
Less Than 12 Months | (26.8) | (11.7) |
12 Months or Longer | (5.9) | (20) |
Total | $ (32.7) | $ (31.7) |
Investments - OTTI losses Recog
Investments - OTTI losses Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Net Increase (Decrease) in Allowance on Securities for which Expected Credit Losses were Previously Recognized | $ (1.1) | $ (0.4) | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 7.5 | 3.3 | $ 0 |
Foreign Governments | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Net Increase (Decrease) in Allowance on Securities for which Expected Credit Losses were Previously Recognized | (0.3) | (0.2) | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0.3 | 0 |
Corporate Bonds and Notes | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Net Increase (Decrease) in Allowance on Securities for which Expected Credit Losses were Previously Recognized | (0.8) | (0.2) | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | $ 7.5 | $ 3 | $ 0 |
Investments - Change in Allowan
Investments - Change in Allowance for Credit Losses on Fixed Maturities Available-for-Sale (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Beginning of the Year | $ 3.3 | $ 0 |
Impact of Adopting ASU 2016-13 | 0 | |
Additions for Securities for which No Previous Expected Credit Losses were Recognized | 5.6 | 7.1 |
Reduction Due to Sales | 0 | (2) |
Net Increase (Decrease) in Allowance on Securities for which Expected Credit Losses were Previously Recognized | (1.1) | (0.4) |
Write-offs Charged Against Allowance | (0.3) | (1.4) |
End of Year | 7.5 | 3.3 |
Foreign Governments | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Beginning of the Year | 0.3 | 0 |
Impact of Adopting ASU 2016-13 | 0 | |
Additions for Securities for which No Previous Expected Credit Losses were Recognized | 0 | 1.2 |
Reduction Due to Sales | 0 | (0.7) |
Net Increase (Decrease) in Allowance on Securities for which Expected Credit Losses were Previously Recognized | (0.3) | (0.2) |
Write-offs Charged Against Allowance | 0 | |
End of Year | 0 | 0.3 |
Corporate Bonds and Notes | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Beginning of the Year | 3 | 0 |
Impact of Adopting ASU 2016-13 | 0 | |
Additions for Securities for which No Previous Expected Credit Losses were Recognized | 5.6 | 5.9 |
Reduction Due to Sales | 0 | (1.3) |
Net Increase (Decrease) in Allowance on Securities for which Expected Credit Losses were Previously Recognized | (0.8) | (0.2) |
Write-offs Charged Against Allowance | (0.3) | (1.4) |
End of Year | $ 7.5 | $ 3 |
Investments - Other Investments
Investments - Other Investments Carrying Values (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Company-Owned Life Insurance | $ 448.1 | $ 327.4 |
Loans to Policyholders at Unpaid Principal | 286.2 | 297.9 |
Real Estate at Depreciated Cost | 94 | 98.7 |
Mortgage Loans on Real Estate and Other | 97.3 | 55 |
Total Investments | $ 925.6 | $ 779 |
Income from Investments - Net I
Income from Investments - Net Investment Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Investment Income [Line Items] | |||
Investment income | $ 461.6 | $ 382.6 | $ 383.4 |
Investment expenses | 34.3 | 34.4 | 19.1 |
Net investment income | 427.3 | 348.2 | 364.3 |
Proceeds from Sale of Equity Method Investments | 0.4 | ||
Realized Investment Gains | 68 | 48.3 | 46.9 |
Realized Investment Losses | (3.2) | (10.2) | (5) |
Equity Method Investment, Realized Gain (Loss) on Disposal | (0.4) | ||
Interest on Fixed Income Securities | |||
Net Investment Income [Line Items] | |||
Investment income | 277.7 | 289.8 | 299.4 |
Dividends on Equity Securities Excluding Alternative Investments | |||
Net Investment Income [Line Items] | |||
Investment income | 15.9 | 15.4 | 22.9 |
Total Alternative Investments | |||
Net Investment Income [Line Items] | |||
Investment income | 103.6 | 27 | 19 |
Equity Method Limited Liability Investments | |||
Net Investment Income [Line Items] | |||
Investment income | 56.7 | 4.9 | 1 |
Limited Liability Investments Included in Equity Securities | |||
Net Investment Income [Line Items] | |||
Investment income | 46.9 | 22.1 | 18 |
Short-term Investments | |||
Net Investment Income [Line Items] | |||
Investment income | 1 | 5.5 | 8.2 |
Loans to Policyholders | |||
Net Investment Income [Line Items] | |||
Investment income | 21.7 | 22.1 | 22.6 |
Real Estate | |||
Net Investment Income [Line Items] | |||
Investment income | 9.3 | 9.6 | 9.8 |
Investment expenses | 9.7 | 8.8 | 9.6 |
Realized Investment Gains | 0.1 | 1.8 | 0 |
Realized Investment Losses | (0.4) | ||
Other | |||
Net Investment Income [Line Items] | |||
Investment income | 32.4 | 13.2 | 1.5 |
Investment expenses | $ 24.6 | $ 25.6 | $ 9.5 |
Income from Investments - Narra
Income from Investments - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Investment Income, Net [Abstract] | ||
Accrued investment income | $ 79.6 | $ 77.1 |
Income from Investments - Net R
Income from Investments - Net Realized Gains on Sales of Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity Securities: | |||
Realized Investment Gains | $ 68 | $ 48.3 | $ 46.9 |
Realized Investment Losses | (3.2) | (10.2) | (5) |
Net Realized Gains on Sales of Investments | 64.8 | 38.1 | 41.9 |
Fixed Maturities: | |||
Fixed Maturities: | |||
Gains on Sales | 63.4 | 40.6 | 41.1 |
Losses on Sales | (2.1) | (7.9) | (4.8) |
Equity Securities | |||
Equity Securities: | |||
Gains on Sales | 4.1 | 5.9 | 5.8 |
Losses on Sales | (0.7) | (1.9) | (0.2) |
Real Estate | |||
Equity Securities: | |||
Realized Investment Gains | 0.1 | $ 1.8 | $ 0 |
Realized Investment Losses | $ (0.4) |
Income from Investments - Net_2
Income from Investments - Net Impairment Losses Recognized in Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Investment Income [Line Items] | |||
Total Other-than-temporary Impairment Losses | $ (11) | $ (19.5) | $ (13.8) |
Fixed Maturities: | |||
Net Investment Income [Line Items] | |||
Total Other-than-temporary Impairment Losses | (6.4) | (16.7) | (13.3) |
Equity Securities | |||
Net Investment Income [Line Items] | |||
Total Other-than-temporary Impairment Losses | (4.2) | $ (2.8) | $ (0.5) |
Real Estate | |||
Net Investment Income [Line Items] | |||
Total Other-than-temporary Impairment Losses | $ (0.4) |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation of Assets Measured at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | $ 7,986.9 | $ 7,605.9 |
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 830.6 | 858.5 |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible securities at fair value | 46.4 | 39.9 |
Total | 8,863.9 | 8,504.3 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 586.6 | 639.5 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible securities at fair value | 46.4 | 39.9 |
Total | 7,700.9 | 7,123.4 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 251.4 | 449.2 |
Investments in Fixed Maturities | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 7,986.9 | 7,605.9 |
Investments in Fixed Maturities | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 132.8 | 134 |
Investments in Fixed Maturities | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 7,604.2 | 7,022.7 |
Investments in Fixed Maturities | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 249.9 | 449.2 |
United States Government and Government Agencies and Authorities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 637.4 | 585.3 |
United States Government and Government Agencies and Authorities | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 637.4 | 585.3 |
United States Government and Government Agencies and Authorities | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 132.8 | 134 |
United States Government and Government Agencies and Authorities | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 504.6 | 451.3 |
United States Government and Government Agencies and Authorities | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 0 | 0 |
States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 1,890.1 | 1,589.5 |
States and Political Subdivisions | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 1,890.1 | 1,589.5 |
States and Political Subdivisions | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 0 | 0 |
States and Political Subdivisions | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 1,890.1 | 1,589.5 |
States and Political Subdivisions | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 0 | 0 |
Foreign Governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 5.5 | 5.2 |
Foreign Governments | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 5.5 | 5.2 |
Foreign Governments | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 0 | 0 |
Foreign Governments | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 5.5 | 5.2 |
Foreign Governments | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 0 | 0 |
Corporate Bonds and Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 4,386.9 | 4,425.4 |
Corporate Bonds and Notes | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 4,386.9 | 4,425.4 |
Corporate Bonds and Notes | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 0 | 0 |
Corporate Bonds and Notes | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 4,150.1 | 3,992.4 |
Corporate Bonds and Notes | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 236.8 | 433 |
Redeemable Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 7.4 | 7.5 |
Redeemable Preferred Stocks | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 7.4 | |
Redeemable Preferred Stocks | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 0 | |
Redeemable Preferred Stocks | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 1.3 | |
Redeemable Preferred Stocks | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 6.2 | |
Collateralized Loan Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 752.1 | 767.7 |
Collateralized Loan Obligations | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 752.1 | 767.7 |
Collateralized Loan Obligations | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 0 | 0 |
Collateralized Loan Obligations | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 752.1 | 767.7 |
Collateralized Loan Obligations | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 0 | 0 |
Other Mortgage- and Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 307.5 | 225.3 |
Other Mortgage- and Asset-backed | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 307.5 | 225.3 |
Other Mortgage- and Asset-backed | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 0 | 0 |
Other Mortgage- and Asset-backed | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 300.5 | 215.3 |
Other Mortgage- and Asset-backed | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 7 | 10 |
Dividends on Equity Securities Excluding Alternative Investments | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 830.6 | 858.5 |
Dividends on Equity Securities Excluding Alternative Investments | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 453.8 | 505.5 |
Dividends on Equity Securities Excluding Alternative Investments | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 50.3 | 60.8 |
Dividends on Equity Securities Excluding Alternative Investments | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 1.5 | 0 |
Preferred Stocks | Finance, Insurance and Real Estate | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 34.2 | 43.7 |
Preferred Stocks | Finance, Insurance and Real Estate | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | 0 |
Preferred Stocks | Finance, Insurance and Real Estate | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 34.2 | 43.7 |
Preferred Stocks | Finance, Insurance and Real Estate | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | 0 |
Preferred Stocks | Other Industries | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 17.6 | 15.4 |
Preferred Stocks | Other Industries | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | 0 |
Preferred Stocks | Other Industries | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 16.1 | 15.4 |
Preferred Stocks | Other Industries | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 1.5 | 0 |
Common Stock | Finance, Insurance and Real Estate | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 18.9 | 10.4 |
Common Stock | Finance, Insurance and Real Estate | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 18.9 | 8.7 |
Common Stock | Finance, Insurance and Real Estate | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | 1.7 |
Common Stock | Finance, Insurance and Real Estate | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | 0 |
Common Stock | Other Industries | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 2.9 | 0.4 |
Common Stock | Other Industries | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 2.9 | 0.4 |
Common Stock | Other Industries | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | |
Common Stock | Other Industries | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | |
Bond Exchange Traded Funds | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 432 | 496.4 |
Bond Exchange Traded Funds | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 432 | 496.4 |
Bond Exchange Traded Funds | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | |
Bond Exchange Traded Funds | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | |
Limited Liability Companies and Limited Partnerships | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 325 | 292.2 |
Limited Liability Companies and Limited Partnerships | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | |
Limited Liability Companies and Limited Partnerships | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | 0 |
Limited Liability Companies and Limited Partnerships | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | 0 |
Redeemable Preferred Stock | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 7.5 | |
Redeemable Preferred Stock | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 0 | |
Redeemable Preferred Stock | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 1.3 | |
Redeemable Preferred Stock | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 6.1 | |
Measured at Net Asset Value | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 325 | 292.2 |
Measured at Net Asset Value | Investments in Fixed Maturities | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 0 | 0 |
Measured at Net Asset Value | United States Government and Government Agencies and Authorities | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 0 | 0 |
Measured at Net Asset Value | States and Political Subdivisions | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 0 | 0 |
Measured at Net Asset Value | Foreign Governments | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 0 | 0 |
Measured at Net Asset Value | Corporate Bonds and Notes | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 0 | 0 |
Measured at Net Asset Value | Redeemable Preferred Stocks | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 0 | |
Measured at Net Asset Value | Collateralized Loan Obligations | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 0 | 0 |
Measured at Net Asset Value | Other Mortgage- and Asset-backed | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | 0 | 0 |
Measured at Net Asset Value | Dividends on Equity Securities Excluding Alternative Investments | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 325 | 292.2 |
Measured at Net Asset Value | Preferred Stocks | Finance, Insurance and Real Estate | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | 0 |
Measured at Net Asset Value | Preferred Stocks | Other Industries | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | 0 |
Measured at Net Asset Value | Common Stock | Finance, Insurance and Real Estate | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | 0 |
Measured at Net Asset Value | Common Stock | Other Industries | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | |
Measured at Net Asset Value | Bond Exchange Traded Funds | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | |
Measured at Net Asset Value | Limited Liability Companies and Limited Partnerships | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 325 | $ 292.2 |
Measured at Net Asset Value | Redeemable Preferred Stock | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2021 - $7,358.2; 2020 - $6,692.7 Allowance for Credit Losses: 2021 - $7.5; 2020 - $3.3) | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfers into Level 3 | $ 19.8 | $ 9 |
Transfers out of Level 3 | 223.6 | $ 637.6 |
Limited Liability Companies and Limited Partnerships | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unfunded commitments | $ 102.3 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information about Significant Unobservable Inputs (Details) - Valuation, Market Approach - Significant Unobservable Inputs (Level 3) $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Other | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Fair Value | $ 32 | $ 26.8 |
Total Level 3 Fixed Maturity Investments | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Fair Value | 249.9 | 449.2 |
Investment-grade | Investment-grade | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Fair Value | 87.9 | 246.7 |
Non-investment-grade | Senior Debt | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Fair Value | 76.1 | 111.1 |
Non-investment-grade | Junior Debt | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Fair Value | $ 53.9 | $ 64.6 |
Measurement Input, Discount Rate | Investment-grade | Investment-grade | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Alternative investment, measurement input | 0.023 | 0.014 |
Measurement Input, Discount Rate | Investment-grade | Investment-grade | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Alternative investment, measurement input | 0.103 | 0.130 |
Measurement Input, Discount Rate | Investment-grade | Investment-grade | Weighted-average Yield | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Alternative investment, measurement input | 0.054 | 0.038 |
Senior Debt | Measurement Input, Discount Rate | Non-investment-grade | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.051 | 0.024 |
Senior Debt | Measurement Input, Discount Rate | Non-investment-grade | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.202 | 0.234 |
Senior Debt | Measurement Input, Discount Rate | Non-investment-grade | Weighted-average Yield | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.085 | 0.095 |
Junior Debt | Measurement Input, Discount Rate | Non-investment-grade | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.060 | 0.031 |
Junior Debt | Measurement Input, Discount Rate | Non-investment-grade | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.275 | 0.279 |
Junior Debt | Measurement Input, Discount Rate | Non-investment-grade | Weighted-average Yield | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.150 | 0.137 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Inputs Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Year | $ 449.2 | $ 1,044.2 |
Total Gains (Losses): | ||
Included in Consolidated Statement of Income | 2.8 | (9.3) |
Included in Other Comprehensive Income (Loss) | 1.4 | (5.1) |
Purchases | 140.2 | 240.2 |
Settlements | (0.1) | (0.1) |
Sales | (138.3) | (192.1) |
Transfers into Level 3 | 19.8 | 9 |
Transfers out of Level 3 | (223.6) | (637.6) |
Balance at End of Year | 251.4 | 449.2 |
Fair Value | 7,986.9 | 7,605.9 |
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 830.6 | 858.5 |
Other Short-term Investments, Fair Value Disclosure | 284.1 | 875.4 |
Redeemable Preferred Stocks | ||
Total Gains (Losses): | ||
Fair Value | 7.4 | 7.5 |
United States Government and Government Agencies and Authorities | ||
Total Gains (Losses): | ||
Fair Value | 637.4 | 585.3 |
States and Political Subdivisions | ||
Total Gains (Losses): | ||
Fair Value | 1,890.1 | 1,589.5 |
Foreign Governments | ||
Total Gains (Losses): | ||
Fair Value | 5.5 | 5.2 |
Corporate Bonds and Notes | ||
Total Gains (Losses): | ||
Fair Value | 4,386.9 | 4,425.4 |
Collateralized Loan Obligations | ||
Total Gains (Losses): | ||
Fair Value | 752.1 | 767.7 |
Other Mortgage- and Asset-backed | ||
Total Gains (Losses): | ||
Fair Value | 307.5 | 225.3 |
Fair Value, Recurring | ||
Total Gains (Losses): | ||
Convertible securities at fair value | 46.4 | 39.9 |
Investments, Fair Value Disclosure | 8,863.9 | 8,504.3 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total Gains (Losses): | ||
Investments, Fair Value Disclosure | 586.6 | 639.5 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Total Gains (Losses): | ||
Convertible securities at fair value | 46.4 | 39.9 |
Investments, Fair Value Disclosure | 7,700.9 | 7,123.4 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Total Gains (Losses): | ||
Investments, Fair Value Disclosure | 251.4 | 449.2 |
Fair Value, Recurring | Measured at Net Asset Value | ||
Total Gains (Losses): | ||
Investments, Fair Value Disclosure | 325 | 292.2 |
Fair Value, Recurring | Redeemable Preferred Stocks | ||
Total Gains (Losses): | ||
Fair Value | 7.4 | |
Fair Value, Recurring | Redeemable Preferred Stocks | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total Gains (Losses): | ||
Fair Value | 0 | |
Fair Value, Recurring | Redeemable Preferred Stocks | Significant Other Observable Inputs (Level 2) | ||
Total Gains (Losses): | ||
Fair Value | 1.3 | |
Fair Value, Recurring | Redeemable Preferred Stocks | Significant Unobservable Inputs (Level 3) | ||
Total Gains (Losses): | ||
Fair Value | 6.2 | |
Fair Value, Recurring | Redeemable Preferred Stocks | Measured at Net Asset Value | ||
Total Gains (Losses): | ||
Fair Value | 0 | |
Fair Value, Recurring | United States Government and Government Agencies and Authorities | ||
Total Gains (Losses): | ||
Fair Value | 637.4 | 585.3 |
Fair Value, Recurring | United States Government and Government Agencies and Authorities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total Gains (Losses): | ||
Fair Value | 132.8 | 134 |
Fair Value, Recurring | United States Government and Government Agencies and Authorities | Significant Other Observable Inputs (Level 2) | ||
Total Gains (Losses): | ||
Fair Value | 504.6 | 451.3 |
Fair Value, Recurring | United States Government and Government Agencies and Authorities | Significant Unobservable Inputs (Level 3) | ||
Total Gains (Losses): | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | United States Government and Government Agencies and Authorities | Measured at Net Asset Value | ||
Total Gains (Losses): | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | States and Political Subdivisions | ||
Total Gains (Losses): | ||
Fair Value | 1,890.1 | 1,589.5 |
Fair Value, Recurring | States and Political Subdivisions | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total Gains (Losses): | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | States and Political Subdivisions | Significant Other Observable Inputs (Level 2) | ||
Total Gains (Losses): | ||
Fair Value | 1,890.1 | 1,589.5 |
Fair Value, Recurring | States and Political Subdivisions | Significant Unobservable Inputs (Level 3) | ||
Total Gains (Losses): | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | States and Political Subdivisions | Measured at Net Asset Value | ||
Total Gains (Losses): | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Foreign Governments | ||
Total Gains (Losses): | ||
Fair Value | 5.5 | 5.2 |
Fair Value, Recurring | Foreign Governments | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total Gains (Losses): | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Foreign Governments | Significant Other Observable Inputs (Level 2) | ||
Total Gains (Losses): | ||
Fair Value | 5.5 | 5.2 |
Fair Value, Recurring | Foreign Governments | Significant Unobservable Inputs (Level 3) | ||
Total Gains (Losses): | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Foreign Governments | Measured at Net Asset Value | ||
Total Gains (Losses): | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Corporate Bonds and Notes | ||
Total Gains (Losses): | ||
Fair Value | 4,386.9 | 4,425.4 |
Fair Value, Recurring | Corporate Bonds and Notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total Gains (Losses): | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Corporate Bonds and Notes | Significant Other Observable Inputs (Level 2) | ||
Total Gains (Losses): | ||
Fair Value | 4,150.1 | 3,992.4 |
Fair Value, Recurring | Corporate Bonds and Notes | Significant Unobservable Inputs (Level 3) | ||
Total Gains (Losses): | ||
Fair Value | 236.8 | 433 |
Fair Value, Recurring | Corporate Bonds and Notes | Measured at Net Asset Value | ||
Total Gains (Losses): | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Redeemable Preferred Stock | ||
Total Gains (Losses): | ||
Fair Value | 7.5 | |
Fair Value, Recurring | Redeemable Preferred Stock | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total Gains (Losses): | ||
Fair Value | 0 | |
Fair Value, Recurring | Redeemable Preferred Stock | Significant Other Observable Inputs (Level 2) | ||
Total Gains (Losses): | ||
Fair Value | 1.3 | |
Fair Value, Recurring | Redeemable Preferred Stock | Significant Unobservable Inputs (Level 3) | ||
Total Gains (Losses): | ||
Fair Value | 6.1 | |
Fair Value, Recurring | Redeemable Preferred Stock | Measured at Net Asset Value | ||
Total Gains (Losses): | ||
Fair Value | 0 | |
Fair Value, Recurring | Collateralized Loan Obligations | ||
Total Gains (Losses): | ||
Fair Value | 752.1 | 767.7 |
Fair Value, Recurring | Collateralized Loan Obligations | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total Gains (Losses): | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Collateralized Loan Obligations | Significant Other Observable Inputs (Level 2) | ||
Total Gains (Losses): | ||
Fair Value | 752.1 | 767.7 |
Fair Value, Recurring | Collateralized Loan Obligations | Significant Unobservable Inputs (Level 3) | ||
Total Gains (Losses): | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Collateralized Loan Obligations | Measured at Net Asset Value | ||
Total Gains (Losses): | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Other Mortgage- and Asset-backed | ||
Total Gains (Losses): | ||
Fair Value | 307.5 | 225.3 |
Fair Value, Recurring | Other Mortgage- and Asset-backed | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total Gains (Losses): | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Other Mortgage- and Asset-backed | Significant Other Observable Inputs (Level 2) | ||
Total Gains (Losses): | ||
Fair Value | 300.5 | 215.3 |
Fair Value, Recurring | Other Mortgage- and Asset-backed | Significant Unobservable Inputs (Level 3) | ||
Total Gains (Losses): | ||
Fair Value | 7 | 10 |
Fair Value, Recurring | Other Mortgage- and Asset-backed | Measured at Net Asset Value | ||
Total Gains (Losses): | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Investments in Fixed Maturities | ||
Total Gains (Losses): | ||
Fair Value | 7,986.9 | 7,605.9 |
Fair Value, Recurring | Investments in Fixed Maturities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total Gains (Losses): | ||
Fair Value | 132.8 | 134 |
Fair Value, Recurring | Investments in Fixed Maturities | Significant Other Observable Inputs (Level 2) | ||
Total Gains (Losses): | ||
Fair Value | 7,604.2 | 7,022.7 |
Fair Value, Recurring | Investments in Fixed Maturities | Significant Unobservable Inputs (Level 3) | ||
Total Gains (Losses): | ||
Fair Value | 249.9 | 449.2 |
Fair Value, Recurring | Investments in Fixed Maturities | Measured at Net Asset Value | ||
Total Gains (Losses): | ||
Fair Value | 0 | 0 |
Fair Value, Recurring | Preferred Stocks | Finance, Insurance and Real Estate | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 34.2 | 43.7 |
Fair Value, Recurring | Preferred Stocks | Other Industries | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 17.6 | 15.4 |
Fair Value, Recurring | Preferred Stocks | Quoted Prices in Active Markets for Identical Assets (Level 1) | Finance, Insurance and Real Estate | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | 0 |
Fair Value, Recurring | Preferred Stocks | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Industries | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | 0 |
Fair Value, Recurring | Preferred Stocks | Significant Other Observable Inputs (Level 2) | Finance, Insurance and Real Estate | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 34.2 | 43.7 |
Fair Value, Recurring | Preferred Stocks | Significant Other Observable Inputs (Level 2) | Other Industries | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 16.1 | 15.4 |
Fair Value, Recurring | Preferred Stocks | Significant Unobservable Inputs (Level 3) | Finance, Insurance and Real Estate | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | 0 |
Fair Value, Recurring | Preferred Stocks | Significant Unobservable Inputs (Level 3) | Other Industries | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 1.5 | 0 |
Fair Value, Recurring | Preferred Stocks | Measured at Net Asset Value | Finance, Insurance and Real Estate | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | 0 |
Fair Value, Recurring | Preferred Stocks | Measured at Net Asset Value | Other Industries | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | 0 |
Fair Value, Recurring | Common Stock | Finance, Insurance and Real Estate | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 18.9 | 10.4 |
Fair Value, Recurring | Common Stock | Other Industries | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 2.9 | 0.4 |
Fair Value, Recurring | Common Stock | Quoted Prices in Active Markets for Identical Assets (Level 1) | Finance, Insurance and Real Estate | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 18.9 | 8.7 |
Fair Value, Recurring | Common Stock | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Industries | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 2.9 | 0.4 |
Fair Value, Recurring | Common Stock | Significant Other Observable Inputs (Level 2) | Finance, Insurance and Real Estate | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | 1.7 |
Fair Value, Recurring | Common Stock | Significant Other Observable Inputs (Level 2) | Other Industries | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | |
Fair Value, Recurring | Common Stock | Significant Unobservable Inputs (Level 3) | Finance, Insurance and Real Estate | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | 0 |
Fair Value, Recurring | Common Stock | Significant Unobservable Inputs (Level 3) | Other Industries | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | |
Fair Value, Recurring | Common Stock | Measured at Net Asset Value | Finance, Insurance and Real Estate | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | 0 |
Fair Value, Recurring | Common Stock | Measured at Net Asset Value | Other Industries | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | |
Fair Value, Recurring | Bond Exchange Traded Funds | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 432 | 496.4 |
Fair Value, Recurring | Bond Exchange Traded Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 432 | 496.4 |
Fair Value, Recurring | Bond Exchange Traded Funds | Significant Other Observable Inputs (Level 2) | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | |
Fair Value, Recurring | Bond Exchange Traded Funds | Significant Unobservable Inputs (Level 3) | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | |
Fair Value, Recurring | Bond Exchange Traded Funds | Measured at Net Asset Value | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | |
Fair Value, Recurring | Limited Liability Companies and Limited Partnerships | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 325 | 292.2 |
Fair Value, Recurring | Limited Liability Companies and Limited Partnerships | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | |
Fair Value, Recurring | Limited Liability Companies and Limited Partnerships | Significant Other Observable Inputs (Level 2) | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | 0 |
Fair Value, Recurring | Limited Liability Companies and Limited Partnerships | Significant Unobservable Inputs (Level 3) | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 0 | 0 |
Fair Value, Recurring | Limited Liability Companies and Limited Partnerships | Measured at Net Asset Value | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 325 | 292.2 |
Fair Value, Recurring | Dividends on Equity Securities Excluding Alternative Investments | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 830.6 | 858.5 |
Fair Value, Recurring | Dividends on Equity Securities Excluding Alternative Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 453.8 | 505.5 |
Fair Value, Recurring | Dividends on Equity Securities Excluding Alternative Investments | Significant Other Observable Inputs (Level 2) | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 50.3 | 60.8 |
Fair Value, Recurring | Dividends on Equity Securities Excluding Alternative Investments | Significant Unobservable Inputs (Level 3) | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 1.5 | 0 |
Fair Value, Recurring | Dividends on Equity Securities Excluding Alternative Investments | Measured at Net Asset Value | ||
Total Gains (Losses): | ||
Equity Securities at Fair Value (Cost: 2021 - $618.7; 2020 - $684.1) | 325 | 292.2 |
Corporate Bonds and Notes | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Year | 433 | 409.1 |
Total Gains (Losses): | ||
Included in Consolidated Statement of Income | 2.8 | (9) |
Included in Other Comprehensive Income (Loss) | 1.2 | 3.2 |
Purchases | 104.6 | 185.9 |
Settlements | 0 | 0 |
Sales | (128.1) | (165.2) |
Transfers into Level 3 | 8.1 | 9 |
Transfers out of Level 3 | (184.8) | 0 |
Balance at End of Year | 236.8 | 433 |
States and Political Subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Year | 0 | 0 |
Total Gains (Losses): | ||
Included in Consolidated Statement of Income | 0 | |
Included in Other Comprehensive Income (Loss) | 0.1 | |
Purchases | 0.6 | |
Settlements | 0 | |
Sales | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | (0.7) | |
Balance at End of Year | 0 | |
Redeemable Preferred Stocks | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Year | 6.2 | 6.7 |
Total Gains (Losses): | ||
Included in Consolidated Statement of Income | 0 | 0 |
Included in Other Comprehensive Income (Loss) | (0.1) | 0.5 |
Purchases | 0 | 0.2 |
Settlements | 0 | 0 |
Sales | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | (1.2) |
Balance at End of Year | 6.1 | 6.2 |
Collateralized Loan Obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Year | 0 | 618.2 |
Total Gains (Losses): | ||
Included in Consolidated Statement of Income | 0 | (0.3) |
Included in Other Comprehensive Income (Loss) | 0.1 | (9.3) |
Purchases | 17.7 | 53.5 |
Settlements | 0 | 0 |
Sales | (10) | (26.4) |
Transfers into Level 3 | 10 | 0 |
Transfers out of Level 3 | (17.8) | (635.7) |
Balance at End of Year | 0 | 0 |
Other Mortgage- and Asset-backed | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Year | 10 | 10.2 |
Total Gains (Losses): | ||
Included in Consolidated Statement of Income | 0 | 0 |
Included in Other Comprehensive Income (Loss) | (0.5) | 0.4 |
Purchases | 16.2 | 0 |
Settlements | (0.1) | (0.1) |
Sales | (0.2) | (0.5) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (18.4) | 0 |
Balance at End of Year | 7 | $ 10 |
Dividends on Equity Securities Excluding Alternative Investments | ||
Total Gains (Losses): | ||
Included in Other Comprehensive Income (Loss) | 0.7 | |
Purchases | 1.7 | |
Transfers into Level 3 | 1.7 | |
Transfers out of Level 3 | (2.6) | |
Balance at End of Year | $ 1.5 |
Fair Value Measurements - Balan
Fair Value Measurements - Balance Sheet Grouping (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying Value | ||
Loans to Policyholders | $ 286.2 | $ 297.9 |
Other Short-term Investments, Fair Value Disclosure | 284.1 | 875.4 |
Short-term Investments at Cost which Approximates Fair Value | 284.1 | 875.4 |
Mortgage Loans | 96.8 | 54.6 |
Long-term Debt, Current and Non-current | 1,121.9 | 1,172.8 |
Policyholder Obligations | 504 | 467 |
Fair Value | ||
Long-term Debt, Current and Non-current | 1,152.1 | 1,247.8 |
Equity Securities at Modified Cost | 32.3 | 40.1 |
Equity Securities, FV-NI | 32.3 | 40.1 |
Company-Owned Life Insurance | 448.1 | 327.4 |
Short-term Investments at Cost which Approximates Fair Value | 284.1 | 875.4 |
FHLB of Chicago | ||
Fair Value | ||
Policyholder Contract Liabilities | 401.9 | 407.8 |
Loans to Policyholders | ||
Fair Value | ||
Loans | 286.2 | 297.9 |
Mortgage Loans | ||
Fair Value | ||
Loans | 96.8 | 54.6 |
United Insurance | FHLB Funding Agreements | FHLB of Chicago | ||
Carrying Value | ||
Policyholder Obligations | $ 401.9 | $ 407.8 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill by Segment (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill [Roll Forward] | ||
Goodwill | $ 1,312 | $ 1,114 |
Specialty Property & Casualty Insurance | ||
Goodwill [Roll Forward] | ||
Goodwill | 1,043 | 845 |
Preferred Property & Casualty Insurance | ||
Goodwill [Roll Forward] | ||
Goodwill | 49.6 | 49.6 |
Life & Health Insurance | ||
Goodwill [Roll Forward] | ||
Goodwill | $ 219.4 | $ 219.4 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Definite and Indefinite Life Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 706.4 | $ 607.5 |
Indefinite-lived Intangible Assets (Excluding Goodwill) | 50.3 | 47.8 |
Intangible Assets, Gross (Excluding Goodwill), Total | 756.7 | 655.3 |
Finite-Lived Intangible Assets, Accumulated Amortization | 413.5 | 335.2 |
Finite-Lived Intangible Assets, Net | 292.9 | 272.3 |
Intangible Assets, Net (Including Goodwill) | 343.2 | 320.1 |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 5.2 | 5.2 |
Insurance Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 45.1 | 42.6 |
Value of Business Acquired | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 237.5 | 194.5 |
Finite-Lived Intangible Assets, Accumulated Amortization | 218.5 | 174.2 |
Finite-Lived Intangible Assets, Net | 19 | 20.3 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 43.8 | 39 |
Finite-Lived Intangible Assets, Accumulated Amortization | 38.1 | 35.6 |
Finite-Lived Intangible Assets, Net | 5.7 | 3.4 |
Agent Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 81.6 | 74.4 |
Finite-Lived Intangible Assets, Accumulated Amortization | 23.6 | 16.8 |
Finite-Lived Intangible Assets, Net | 58 | 57.6 |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1.8 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 0.9 | |
Finite-Lived Intangible Assets, Net | 0.9 | |
Internal Use Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 341.7 | 299.6 |
Finite-Lived Intangible Assets, Accumulated Amortization | 132.4 | 108.6 |
Finite-Lived Intangible Assets, Net | $ 209.3 | $ 191 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of definite lived intangible assets | $ 87 | $ 42.3 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Future Amortization Expense (Details) $ in Millions | Dec. 31, 2021USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Definite-life intangible assets, amortization expense, 2020 | $ 48.1 |
Definite-life intangible assets, amortization expense, 2021 | 40.8 |
Definite-life intangible assets, amortization expense, 2022 | 31.7 |
Definite-life intangible assets, amortization expense, 2023 | 26 |
Definite-life intangible assets, amortization expense, 2024 | 23.1 |
Agent Relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Definite-life intangible assets, amortization expense, 2020 | 7.3 |
Definite-life intangible assets, amortization expense, 2021 | 7.3 |
Definite-life intangible assets, amortization expense, 2022 | 5.5 |
Definite-life intangible assets, amortization expense, 2023 | 4.9 |
Definite-life intangible assets, amortization expense, 2024 | 4.9 |
Customer Relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Definite-life intangible assets, amortization expense, 2020 | 3 |
Definite-life intangible assets, amortization expense, 2021 | 1.1 |
Definite-life intangible assets, amortization expense, 2022 | 0.4 |
Definite-life intangible assets, amortization expense, 2023 | 0.4 |
Definite-life intangible assets, amortization expense, 2024 | 0.3 |
Internal Use Software | |
Finite-Lived Intangible Assets [Line Items] | |
Definite-life intangible assets, amortization expense, 2020 | 33.3 |
Definite-life intangible assets, amortization expense, 2021 | 30.4 |
Definite-life intangible assets, amortization expense, 2022 | 23.9 |
Definite-life intangible assets, amortization expense, 2023 | 18.9 |
Definite-life intangible assets, amortization expense, 2024 | 16.2 |
Trade Names | |
Finite-Lived Intangible Assets [Line Items] | |
Definite-life intangible assets, amortization expense, 2020 | 0.9 |
Life Insurance | |
Finite-Lived Intangible Assets [Line Items] | |
VOBA, amortization expense, 2020 | 3.6 |
VOBA, amortization expense, 2021 | 2 |
VOBA, amortization expense, 2022 | 1.9 |
VOBA, amortization expense, 2023 | 1.8 |
VOBA, amortization expense, 2024 | $ 1.7 |
Variable Interest Entities - Ac
Variable Interest Entities - Activity of Alternative Energy Partnership Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||
Tax benefit (expense) recognized from HLBV application | $ (124.8) | $ 100.2 | $ 130.5 |
Variable Interest Entity, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Fundings | 80 | 20 | |
Cash distribution from investment | 0.5 | 0 | |
Gain (loss) on investments in Alternative Energy Partnership | (61.2) | 0 | |
Income tax credits recognized | 73.9 | 3.6 | |
Tax benefit (expense) recognized from HLBV application | $ 5.1 | $ (0.4) |
Variable Interest Entities - As
Variable Interest Entities - Assets and Liabilities and Associated Maximum Loss Exposure of Alternative Energy Partnership Investments (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Other assets | $ 592,200,000 | $ 575,900,000 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Cash | 21,500,000 | |
Equipment, net of depreciation | 310,500,000 | |
Other assets | 3,000,000 | |
Total unconsolidated assets | 335,000,000 | |
Maximum loss exposure | $ 39,600,000 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) $ in Millions | Dec. 31, 2021USD ($) |
Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Maximum loss exposure | $ 39.6 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) And Accumulated Other Comprehensive Income - Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Comprehensive Income (Loss) | ||||
Decrease (Increase) in Net Unrecognized Postretirement Benefit Costs | $ (8.8) | $ 70.2 | $ (7.8) | |
Other Comprehensive Income (Loss) Before Income Taxes | (294.8) | 437.9 | 397.9 | |
Other Comprehensive Income (Loss) before Income Taxes | ||||
Unrealized Holding Gains and Losses | (60.1) | (78.3) | (85.2) | |
Tax Effects from Postretirement Benefit Plans | (2.4) | (15.3) | 1.7 | |
Other Comprehensive Income Tax Benefit (Expense) | 62.4 | (93.5) | (83.6) | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Stockholders' Equity Attributable to Parent | 4,007.7 | 4,563.4 | ||
Accumulated Net Unrealized Investment Gain (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Stockholders' Equity Attributable to Parent | (3.7) | (2.1) | 0 | $ 0 |
OCI, before Reclassifications, Net of Tax, Attributable to Parent | (1.6) | (2.1) | 0 | |
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (1.6) | (2.1) | 0 | |
Accumulated Defined Benefit Plans Adjustment | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Stockholders' Equity Attributable to Parent | (52.1) | (45.7) | (100.6) | |
OCI, before Reclassifications, Net of Tax, Attributable to Parent | (6.5) | 4.3 | (6.1) | |
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 0.1 | 50.6 | 0 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (6.4) | 54.9 | (6.1) | |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Stockholders' Equity Attributable to Parent | (1.9) | (2.3) | (2.7) | |
OCI, before Reclassifications, Net of Tax, Attributable to Parent | 0 | 0.4 | 0.3 | |
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 0.4 | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0.4 | 0.4 | 0.3 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Stockholders' Equity Attributable to Parent | 448.1 | 680.5 | 336.1 | $ 21.8 |
OCI, before Reclassifications, Net of Tax, Attributable to Parent | (190.1) | 307 | 336.6 | |
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | (42.3) | 37.4 | (22.3) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | $ (232.4) | $ 344.4 | $ 314.3 |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) And Accumulated Other Comprehensive Income - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Unrealized Gain (Loss) [Abstract] | ||||
Accumulated Other Comprehensive Income | $ 448.1 | $ 680.5 | ||
AOCI, Gain (Loss), Debt Securities, Available-for-sale, with Allowance for Credit Loss, Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 59.7 | (78.7) | $ (85.2) | |
Reclassification from AOCI, Current Period, Tax | 11.3 | 3.6 | 5.8 | |
Accumulated Net Unrealized Investment Gain (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0.4 | 0.5 | 0 | |
Reclassification from AOCI, Current Period, Tax | 0 | 0 | 0 | |
Accumulated Defined Benefit Plans Adjustment | ||||
Debt Securities, Unrealized Gain (Loss) [Abstract] | ||||
Net Unrecognized Postretirement Benefit Costs, Net of Income Taxes | $ (94.5) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 2.4 | (15.3) | 1.7 | |
Reclassification from AOCI, Current Period, Tax | 0 | (13.5) | 0 | |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (0.1) | 0 | (0.1) | |
Reclassification from AOCI, Current Period, Tax | (0.1) | 0 | 0 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 62.4 | (93.5) | (83.6) | |
Reclassification from AOCI, Current Period, Tax | $ 11.2 | $ (9.9) | $ 5.8 |
Other Comprehensive Income (L_5
Other Comprehensive Income (Loss) And Accumulated Other Comprehensive Income - Reclassification from AOCI to Consolidated Statements of Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income Tax Expense (Benefit) | $ 124.8 | $ (100.2) | $ (130.5) | |
Net Income (Loss) | (120.5) | 409.9 | 531.1 | |
Stockholders' Equity Attributable to Parent | 4,007.7 | 4,563.4 | ||
AOCI, Gain (Loss), Debt Securities, Available-for-sale, with Allowance for Credit Loss, Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Stockholders' Equity Attributable to Parent | 505.8 | 730.6 | 439.4 | $ 119.3 |
OCI, before Reclassifications, Net of Tax, Attributable to Parent | (182) | 304.4 | 342.4 | |
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | (42.8) | (13.2) | (22.3) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (224.8) | 291.2 | 320.1 | |
Reclassification from AOCI, Current Period, Tax | 11.3 | 3.6 | 5.8 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 59.7 | (78.7) | (85.2) | |
Accumulated Net Unrealized Investment Gain (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Stockholders' Equity Attributable to Parent | (3.7) | (2.1) | 0 | 0 |
OCI, before Reclassifications, Net of Tax, Attributable to Parent | (1.6) | (2.1) | 0 | |
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (1.6) | (2.1) | 0 | |
Reclassification from AOCI, Current Period, Tax | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0.4 | 0.5 | 0 | |
Accumulated Defined Benefit Plans Adjustment | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Stockholders' Equity Attributable to Parent | (52.1) | (45.7) | (100.6) | |
OCI, before Reclassifications, Net of Tax, Attributable to Parent | (6.5) | 4.3 | (6.1) | |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | (94.5) | |||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 0.1 | 50.6 | 0 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (6.4) | 54.9 | (6.1) | |
Reclassification from AOCI, Current Period, Tax | 0 | (13.5) | 0 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 2.4 | (15.3) | 1.7 | |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Stockholders' Equity Attributable to Parent | (1.9) | (2.3) | (2.7) | |
OCI, before Reclassifications, Net of Tax, Attributable to Parent | 0 | 0.4 | 0.3 | |
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax | (3) | |||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 0.4 | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0.4 | 0.4 | 0.3 | |
Reclassification from AOCI, Current Period, Tax | (0.1) | 0 | 0 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (0.1) | 0 | (0.1) | |
Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Stockholders' Equity Attributable to Parent | 448.1 | 680.5 | 336.1 | $ 21.8 |
OCI, before Reclassifications, Net of Tax, Attributable to Parent | (190.1) | 307 | 336.6 | |
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | (42.3) | 37.4 | (22.3) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (232.4) | 344.4 | 314.3 | |
Reclassification from AOCI, Current Period, Tax | 11.2 | (9.9) | 5.8 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | $ 62.4 | $ (93.5) | $ (83.6) |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) | Jun. 07, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 06, 2020 | Aug. 06, 2014 |
Schedule of Capitalization, Equity [Line Items] | ||||||
Preferred stock, shares authorized (in shares) | 20,000,000 | |||||
Preferred stock, par value (in dollars per share) | $ 0.10 | |||||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | ||||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | ||||
Common stock, shares outstanding (in shares) | 63,684,628 | 65,436,207 | ||||
Stock Repurchase Program, Additional Authorized Amount | $ 200,000,000 | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 171,600,000 | $ 333,300,000 | $ 133,000,000 | |||
Stock repurchased and retired during period (in shares) | 2,085,000 | 1,617,000 | ||||
Stock Repurchased and Retired During Period, Value | $ 161,700,000 | $ 110,400,000 | ||||
Share-based compensation expense | $ 28,000,000 | 24,900,000 | $ 25,300,000 | |||
Percentage of authorized control Level RBC | 200.00% | |||||
Dividends paid | $ 80,600,000 | $ 78,900,000 | 67,800,000 | |||
Amount available for dividend payment | $ 1,200,000,000 | |||||
Common Stock | ||||||
Schedule of Capitalization, Equity [Line Items] | ||||||
Average cost per share (in dollars per share) | $ 77.58 | $ 68.29 | ||||
Kemper's Insurance Subsidiaries | ||||||
Schedule of Capitalization, Equity [Line Items] | ||||||
Cash dividends paid by Kemper's Insurance Subsidiaries to Kemper | $ 347,000,000 | |||||
Amount available for dividend payments | 191,200,000 | |||||
Amount of restricted net assets for consolidated and unconsolidated subsidiaries | 4,500,000,000 | |||||
Life & Health Insurance | Kemper's Insurance Subsidiaries | ||||||
Schedule of Capitalization, Equity [Line Items] | ||||||
Statutory capital and surplus | 446,000,000 | $ 430,400,000 | ||||
Statutory net income | (12,400,000) | 60,700,000 | 90,400,000 | |||
Statutory capital and surplus required | 157,700,000 | |||||
Property & Casualty Insurance Subsidiaries | Kemper's Insurance Subsidiaries | ||||||
Schedule of Capitalization, Equity [Line Items] | ||||||
Statutory capital and surplus | 1,500,000,000 | 1,700,000,000 | ||||
Statutory net income | (206,900,000) | $ 361,600,000 | $ 347,600,000 | |||
Statutory capital and surplus required | $ 668,200,000 | |||||
Subordinated Debentures due 2054 (Fair Value: 2018 – $151.1) | Subordinated Debt | ||||||
Schedule of Capitalization, Equity [Line Items] | ||||||
Long-term debt, gross | $ 150,000,000 | |||||
Stated interest rate, percentage | 7.375% | |||||
Employee Stock Purchase Plan | Employee Stock | ||||||
Schedule of Capitalization, Equity [Line Items] | ||||||
Shares issued under employee stock purchase plan (in shares) | 79,000 | 61,000 | 24,000 | |||
Price per share (in dollars per share) | $ 58.08 | $ 61.57 | $ 66.08 | |||
Share-based compensation expense | $ 800,000 | $ 700,000 | $ 300,000 | |||
Investment-grade | ||||||
Schedule of Capitalization, Equity [Line Items] | ||||||
Number of shares issued in transaction (in shares) | 1,600,000 | |||||
Sale of stock, price per share (in dollars per share) | $ 83 | |||||
Gross proceeds from issuance of common stock | $ 128,900,000 | |||||
Transaction costs | 1,700,000 | |||||
Net proceeds from issuance of common stock | $ 127,200,000 |
Pension Benefits - Narrative (D
Pension Benefits - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)employees | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, cost | $ 28.9 | $ 26.1 | $ 26 |
Payment for Pension Benefits | $ 0 | 0 | 55.3 |
Pension and Other Postretirement Benefits Expense (Reversal of Expense), Noncash | 50.6 | ||
Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of participants and beneficiaries | employees | 3,145 | ||
Contribution as a percentage of compensation | 3.00% | ||
Actuarial loss amortization period | 27 years | ||
Amounts that will be amortized from AOCI in next fiscal Year | $ 3.7 | ||
Employer Contributions | 0 | 0 | |
Unfunded liability | (12.9) | (23.1) | |
Pension expense | 0.6 | 58.6 | (5.4) |
Unrecognized pension gain (loss) arising during the year | 6 | 7.8 | (4.2) |
Payment for Pension Benefits | 117.1 | ||
Supplemental Employee Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unfunded liability | 28 | 30.7 | |
Pension expense | 0.7 | 0.8 | 1 |
Unrecognized pension gain (loss) arising during the year | $ 1.3 | (2.7) | $ (5.6) |
Terminal Funding Annuity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Proceeds from Annuities and Investment Certificates | $ 205.4 |
Pension Benefits - Changes in F
Pension Benefits - Changes in Fair Value of Plan Assets and Changes in Accumulated Benefit Obligations (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair Value of Plans’ Assets at Beginning of Year | $ 405.4 | $ 664.6 | |
Actual Return on Plan Assets | (0.7) | 92.1 | |
Employer Contributions | 0 | 0 | |
Benefits Paid | (13) | (145.9) | |
Settlement Benefits | 0 | (205.4) | |
Benefits Paid | (13) | (145.9) | |
Fair Value of Plan Assets at End of Year | 391.7 | 405.4 | $ 664.6 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Accumulated Postretirement Benefit Obligation at Beginning of Year | 382.3 | 660.5 | |
Interest Cost | 7.2 | 16.5 | 22.3 |
Benefits Paid | (13) | (145.9) | |
Settlement Benefits | 0 | (205.4) | |
Plan Amendments | (18.3) | 0 | |
Actuarial (Gains) Losses | (16) | 56.6 | |
Projected Benefit Obligation at End of Year | 378.8 | 382.3 | $ 660.5 |
Funded Status—Plan Assets in Excess (Deficit) of Projected Benefit Obligation | 12.9 | 23.1 | |
Unamortized Amount Reported in AOCI at End of Year | (77.6) | (68.2) | |
Accumulated Benefit Obligation at End of Year | $ 378.8 | $ 382.3 |
Pension Benefits - Actuarial As
Pension Benefits - Actuarial Assumptions for Project Benefit Obligations (Details) - Pension Plans, Defined Benefit | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount Rate | 2.89% | 2.56% |
Rate of Increase in Future Compensation Levels | 3.40% | 3.40% |
Pension Benefits - Weighted Ave
Pension Benefits - Weighted Average Asset Allocation for Pension Plans (Details) - Pension Plans, Defined Benefit | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations | 100.00% | 100.00% |
Corporate Bonds and Notes | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations | 30.00% | 37.00% |
Common and Preferred Stocks | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations | 0.00% | 24.00% |
Bond Exchange Traded Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations | 32.00% | 27.00% |
Cash and Short-term Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations | 36.00% | 2.00% |
Other Assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations | 2.00% | 10.00% |
Pension Benefits - Fair Value P
Pension Benefits - Fair Value Plan Assets Measurements (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | $ 391.7 | $ 405.4 | $ 664.6 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 320.3 | 249.7 | |
Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 63 | 82 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
United States Government and Government Agencies and Authorities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 54.6 | 68.3 | |
United States Government and Government Agencies and Authorities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 54.6 | 68.3 | |
United States Government and Government Agencies and Authorities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
United States Government and Government Agencies and Authorities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
States and Political Subdivisions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0.1 | 0.7 | |
States and Political Subdivisions | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
States and Political Subdivisions | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0.1 | 0.7 | |
States and Political Subdivisions | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Corporate Bonds and Notes | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 62.3 | 81.3 | |
Corporate Bonds and Notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Corporate Bonds and Notes | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 62.3 | 81.3 | |
Corporate Bonds and Notes | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Other Industries | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 64.8 | ||
Other Industries | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 64.8 | ||
Other Industries | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Other Industries | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Collective Investment Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 32.1 | ||
Collective Investment Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Collective Investment Funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Collective Investment Funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Bond Exchange Traded Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 125 | 108.6 | |
Bond Exchange Traded Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 125 | 108.6 | |
Bond Exchange Traded Funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Bond Exchange Traded Funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Limited Liability Companies and Limited Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 8.4 | 41.6 | |
Limited Liability Companies and Limited Partnerships | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Limited Liability Companies and Limited Partnerships | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Limited Liability Companies and Limited Partnerships | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Short-term Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 140.2 | 7.4 | |
Short-term Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 140.2 | 7.4 | |
Short-term Investments | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Short-term Investments | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Receivables and Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0.5 | 0.6 | |
Receivables and Other | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0.5 | 0.6 | |
Receivables and Other | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Receivables and Other | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Foreign Governments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0.6 | ||
Foreign Governments | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0.6 | ||
Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 8.4 | 73.7 | |
Measured at Net Asset Value | United States Government and Government Agencies and Authorities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Measured at Net Asset Value | States and Political Subdivisions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Measured at Net Asset Value | Corporate Bonds and Notes | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Measured at Net Asset Value | Other Industries | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Measured at Net Asset Value | Collective Investment Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 32.1 | ||
Measured at Net Asset Value | Bond Exchange Traded Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Measured at Net Asset Value | Limited Liability Companies and Limited Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 8.4 | 41.6 | |
Measured at Net Asset Value | Short-term Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Measured at Net Asset Value | Receivables and Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | $ 0 | $ 0 |
Pension Benefits - Changes in_2
Pension Benefits - Changes in Fair Value of Pension Plans Level 3 (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair Value of Plans’ Assets at Beginning of Year | $ 405.4 | $ 664.6 |
Fair Value of Plan Assets at End of Year | 391.7 | 405.4 |
Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair Value of Plans’ Assets at Beginning of Year | 0 | |
Fair Value of Plan Assets at End of Year | $ 0 | $ 0 |
Pension Benefits - Components o
Pension Benefits - Components of Comprehensive Pension Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension Obligation Settlement Costs | $ 64.1 | ||
Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost Earned During the Year | $ 0 | 0 | $ 0 |
Interest Cost on Projected Benefit Obligation | 7.2 | 16.5 | 22.3 |
Expected Return on Plan Assets | (9.5) | (27.6) | (30.6) |
Amortization of Actuarial Loss | 2.9 | 5.6 | 2.9 |
Pension expense | 0.6 | 58.6 | (5.4) |
Unrecognized Pension Gain (Loss) Arising During the Year | (6) | (7.8) | 4.2 |
Amortization of Prior Service Credit | 18.3 | ||
Amortization of Accumulated Unrecognized Pension Loss | (2.9) | (69.8) | (2.9) |
Comprehensive Pension Expense (Income) | $ 10 | $ (19) | $ (4.1) |
Pension Benefits - Actuarial _2
Pension Benefits - Actuarial Assumptions Pension Expense (Details) - Pension Plans, Defined Benefit | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted-average Discount Rate | 2.56% | 2.56% | 4.28% |
Service Cost Discount Rate | 2.41% | 2.42% | 4.26% |
Interest Cost Discount Rate | 1.90% | 1.89% | 3.91% |
Rate of Increase in Future Compensation Levels | 3.40% | 3.40% | 3.40% |
Expected Long Term Rate of Return on Plan Assets | 2.70% | 4.90% | 5.70% |
Pension Benefits - Pension Bene
Pension Benefits - Pension Benefit Payments (Details) - Pension Plans, Defined Benefit $ in Millions | Dec. 31, 2021USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated Pension Benefit Payments, 2020 | $ 17 |
Estimated Pension Benefit Payments, 2021 | 16.5 |
Estimated Pension Benefit Payments, 2022 | 17.3 |
Estimated Pension Benefit Payments, 2023 | 18.1 |
Estimated Pension Benefit Payments, 2024 | 18.7 |
Estimated Pension Benefit Payments, 2025 - 2029 | $ 97.9 |
Postretirement Benefits Other_3
Postretirement Benefits Other Than Pensions - Narrative (Details) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2021USD ($)employees | Dec. 31, 2016USD ($) | Dec. 31, 2020USD ($) | |
Other Postretirement Benefit Plan, Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of retired employees covered | employees | 400 | |||
Number of active employees covered | employees | 500 | |||
Pre-tax reduction to its accumulated postretirement benefit obligation | $ 11 | |||
Amounts that will be amortized from AOCI in next fiscal Year | $ 2.9 | |||
Estimated future employer contributions in next fiscal year | $ 1.2 | |||
Medical Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Health care cost trend rate assumed for next fiscal year | 6.29% | 6.50% | ||
Health care cost trend rate assumed for future years | 4.80% | |||
Prescription Drug Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Health care cost trend rate assumed for next fiscal year | 7.04% | 7.50% | ||
Health care cost trend rate assumed for future years | 4.80% | 4.80% |
Postretirement Benefits Other_4
Postretirement Benefits Other Than Pensions - Changes in Fair Value of Plan Assets and Changes in Accumulated Benefit Obligations (Details) - Other Postretirement Benefit Plan, Defined Benefit - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair Value of Plans’ Assets at Beginning of Year | $ 0 | $ 0 | |
Employer Contributions | 1.1 | 1.5 | |
Plan Participants’ Contributions | 0.1 | 0.2 | |
Benefits Paid | (1.2) | (1.7) | |
Fair Value of Plan Assets at End of Year | 0 | 0 | $ 0 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Accumulated Postretirement Benefit Obligation at Beginning of Year | 13.7 | 12.8 | |
Service Cost | 0.3 | 0.2 | 0.2 |
Interest Cost | 0.1 | 0.3 | 0.4 |
Plan Participants’ Contributions | 0.1 | 0.2 | |
Benefits Paid | (1.2) | (1.7) | |
Actuarial (Gains) Losses | (1.8) | 1.9 | |
Projected Benefit Obligation at End of Year | 11.2 | 13.7 | $ 12.8 |
Funded Status—Plan Assets in Excess (Deficit) of Projected Benefit Obligation | (11.2) | (13.7) | |
Unamortized Actuarial Gain Reported in AOCI at End of Year | $ 17.5 | $ 18.7 |
Postretirement Benefits Other_5
Postretirement Benefits Other Than Pensions - Actuarial Assumptions of OPEB Accumulated Benefit Obligation (Details) - Other Postretirement Benefit Plan, Defined Benefit | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount Rate | 2.56% | 2.13% |
Rate of Increase in Future Compensation Levels | 2.20% | 2.20% |
Postretirement Benefits Other_6
Postretirement Benefits Other Than Pensions - Components Of Comprehensive OPEB (Income) Expense (Details) - Other Postretirement Benefit Plan, Defined Benefit - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service Cost Earned During the Year | $ 0.3 | $ 0.2 | $ 0.2 | |
Interest Cost on Accumulated Postretirement Benefit Obligation | 0.1 | 0.3 | 0.4 | |
Amortization of Prior Service Credit | (1.3) | (1.3) | (1.3) | |
Amortization of Accumulated Unrecognized OPEB Gain | (1.7) | (1.9) | (2.4) | |
Pension Expense (Income) Recognized in Consolidated Statements of Income | (2.6) | (2.7) | (3.1) | |
Unrecognized OPEB (Gain) Loss Arising During the Year | (1.8) | 1.9 | (1.7) | |
Prior Service Credit Arising During the Year from Plan Amendments | $ 11 | |||
Amortization of Prior Service Credit | 1.3 | 1.3 | 1.3 | |
Amortization of Accumulated Unrecognized OPEB Gain | 1.7 | 1.9 | 2.4 | |
Comprehensive OPEB (Income) Expense | $ (1.4) | $ 2.4 | $ (1.1) |
Postretirement Benefits Other_7
Postretirement Benefits Other Than Pensions - Actuarial Assumptions of OPEB Expense (Details) - Other Postretirement Benefit Plan, Defined Benefit | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted-average Discount Rate | 1.99% | 2.96% | 4.08% |
Service Cost Discount Rate | 2.06% | 2.94% | 4.16% |
Interest Cost Discount Rate | 1.19% | 2.47% | 3.69% |
Rate of Increase in Future Compensation Levels | 2.20% | 2.20% | 2.20% |
Postretirement Benefits Other_8
Postretirement Benefits Other Than Pensions - Benefit Payments Net of Expected Medicare Part D Subsidy (Details) - Other Postretirement Benefit Plan, Defined Benefit $ in Millions | Dec. 31, 2021USD ($) |
Estimated Benefit Payments Excluding Medicare Part D Subsidy | |
2020 | $ 1.2 |
2021 | 1.2 |
2022 | 1.2 |
2023 | 1.1 |
2024 | 1 |
2027-2031 | 3.8 |
Expected Medicare Part D Subsidy | |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2027-2031 | 0 |
Net Estimated Benefit Payments | |
2020 | 1.2 |
2021 | 1.2 |
2022 | 1.2 |
2023 | 1.1 |
2024 | 1 |
2027-2031 | $ 3.8 |
Long-term Equity-based Compen_3
Long-term Equity-based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)installment$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized (in shares) | 7,000,000 | ||
Shares available for grant (in shares) | 5,253,076 | ||
Share-based compensation expense | $ | $ 28,000 | $ 24,900 | $ 25,300 |
Total compensation cost not yet recognized | $ | $ 23,600 | ||
Weighted-average grant-date fair values (in dollars per share) | $ / shares | $ 19.29 | $ 19.24 | $ 20.99 |
Total intrinsic value | $ | $ 1,300 | $ 7,100 | $ 7,700 |
Cash received from exercises of awards | $ | 3,700 | 5,000 | 2,400 |
Total tax benefit realized for tax deductions from exercise of awards | $ | $ 300 | $ 1,500 | 1,600 |
Performance Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reduction in share authorization if maximum performance level is met or exceeded (in shares) | 1,814,274 | ||
Award vesting period | 3 years | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting installments | installment | 3 | ||
Award vesting period | 3 years | ||
Expiration period | 10 years | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual awards of restricted stock units to be issued to each non-employee director, aggregate fair value | $ | $ 130 | $ 130 | 130 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of vested awards | $ | 19,600 | 20,400 | 24,800 |
Tax benefits for tax deductions realized from awards | $ | $ 4,100 | $ 4,300 | $ 5,200 |
Performance Period 1 | Performance Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reduction in share authorization if maximum performance level is met or exceeded (in shares) | 797,295 | ||
Number of additional shares to be granted if maximum performance level is met or exceeded (in shares) | 265,765 | ||
Performance Period 2 | Performance Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reduction in share authorization if maximum performance level is met or exceeded (in shares) | 661,176 | ||
Number of additional shares to be granted if maximum performance level is met or exceeded (in shares) | 220,392 | ||
Performance Period 3 | Performance Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reduction in share authorization if maximum performance level is met or exceeded (in shares) | 355,803 | ||
Number of additional shares to be granted if maximum performance level is met or exceeded (in shares) | 118,601 |
Long-term Equity-based Compen_4
Long-term Equity-based Compensation - Black-Scholes Pricing Model For Options (Details) - Stock Options | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility rate, minimum | 33.67% | 29.22% | 28.97% |
Expected volatility rate, maximum | 38.04% | 37.27% | 33.78% |
Risk-free interest rate, minimum | 0.26% | 0.17% | 1.35% |
Risk-free interest rate, maximum | 1.33% | 1.46% | 2.60% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield rate | 1.18% | 1.19% | 1.05% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield rate | 1.78% | 1.48% | 1.38% |
Employee | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average expected life (in years) | 4 years | 4 years | 4 years |
Employee | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average expected life (in years) | 6 years | 6 years | 6 years |
Long-term Equity-based Compen_5
Long-term Equity-based Compensation - Option and SAR Activity (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Shares Subject to Awards | |
Outstanding at Beginning of the Year (in shares) | shares | 1,900,957 |
Granted (in shares) | shares | 406,553 |
Exercised (in shares) | shares | (75,802) |
Forfeited or Expired (in shares) | shares | (127,729) |
Outstanding at December 31, 2019 (in shares) | shares | 2,103,979 |
Vested and Expected to Vest at December 31, 2019 (in shares) | shares | 2,039,134 |
Exercisable at December 31, 2019 (in shares) | shares | 1,389,206 |
Weighted- average Exercise Price Per Share ($) | |
Outstanding at Beginning of the Year (in dollars per share) | $ / shares | $ 60.97 |
Granted (in dollars per share) | $ / shares | 69.88 |
Exercised (in dollars per share) | $ / shares | 60.84 |
Forfeited or Expired (in dollars per share) | $ / shares | 73.59 |
Outstanding at December 31, 2019 (in dollars per share) | $ / shares | 61.93 |
Vested and Expected to Vest at December 31, 2019 (in dollars per share) | $ / shares | 61.57 |
Exercisable at December 31, 2019 (in dollars per share) | $ / shares | $ 56.26 |
Weighted- average Remaining Contractual Life (in Years) | |
Outstanding at December 31, 2021 | 6 years 6 months |
Vested and Expected to Vest at December 31, 2021 | 6 years 5 months 8 days |
Exercisable at December 31, 2021 | 5 years 6 months |
Aggregate Intrinsic Value ($ In Millions) | |
Outstanding at December 31, 2021 | $ | $ 12.1 |
Vested and Expected to Vest at December 31, 2021 | $ | 12.1 |
Exercisable at December 31, 2021 | $ | $ 12 |
Long-term Equity-based Compen_6
Long-term Equity-based Compensation - Schedule of Outstanding Options (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Subject to Awards (in shares) | 2,103,979 | 1,900,957 |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 61.93 | $ 60.97 |
Weighted- average Remaining Contractual Life (in Years) | 6 years 6 months | |
Range of Exercise Prices $20.01 - $30.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | $ 20.01 | |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 30 | |
Shares Subject to Awards (in shares) | 108,562 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 27.79 | |
Weighted- average Remaining Contractual Life (in Years) | 4 years 10 days | |
Shares Subject to Awards (in shares) | 108,562 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 27.79 | |
Range of Exercise Prices $30.01 - $40.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 30.01 | |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 40 | |
Shares Subject to Awards (in shares) | 122,906 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 34.42 | |
Weighted- average Remaining Contractual Life (in Years) | 3 years 3 months 29 days | |
Shares Subject to Awards (in shares) | 122,906 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 34.42 | |
Range of Exercise Prices $40.01 - $50.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 40.01 | |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 50 | |
Shares Subject to Awards (in shares) | 345,616 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 42.44 | |
Weighted- average Remaining Contractual Life (in Years) | 4 years 8 months 26 days | |
Shares Subject to Awards (in shares) | 345,616 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 42.44 | |
Range of Exercise Prices $50.01 - $60.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 50.01 | |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 60 | |
Shares Subject to Awards (in shares) | 335,000 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 59.80 | |
Weighted- average Remaining Contractual Life (in Years) | 5 years 11 months 19 days | |
Shares Subject to Awards (in shares) | 331,639 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 59.87 | |
Range of Exercise Prices $60.01 - $70.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 60.01 | |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 70 | |
Shares Subject to Awards (in shares) | 405,923 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 69.26 | |
Weighted- average Remaining Contractual Life (in Years) | 8 years 9 months | |
Shares Subject to Awards (in shares) | 50,325 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 66.90 | |
Range of Exercise Prices $70.01 - $80.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 70.01 | |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 80 | |
Shares Subject to Awards (in shares) | 749,520 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 76.31 | |
Weighted- average Remaining Contractual Life (in Years) | 7 years 2 months 19 days | |
Shares Subject to Awards (in shares) | 406,480 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 76.31 | |
Range of Exercise Prices $80.01 - $90.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 80.01 | |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 90 | |
Shares Subject to Awards (in shares) | 36,452 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 83.69 | |
Weighted- average Remaining Contractual Life (in Years) | 6 years 1 month 28 days | |
Shares Subject to Awards (in shares) | 23,678 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 84.23 | |
Range of Exercise Prices $20.01 - $90.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 20.01 | |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 90 | |
Shares Subject to Awards (in shares) | 2,103,979 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 61.93 | |
Weighted- average Remaining Contractual Life (in Years) | 6 years 6 months | |
Shares Subject to Awards (in shares) | 1,389,206 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 56.26 |
Long-term Equity-based Compen_7
Long-term Equity-based Compensation - Activity Related to Nonvested Restricted Stock (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Time Vested Restricted Stock Units | |
Number of Stock Units | |
Nonvested Balance at Beginning of Year (in shares) | shares | 132,026 |
Grants in Period (in shares) | shares | 38,375 |
Vested in Period (in shares) | shares | (81,967) |
Forfeited in Period (in shares) | shares | (6,733) |
Nonvested Balance at December 31, 2019 (in shares) | shares | 81,701 |
Weighted- average Grant-date Fair Value Per Unit | |
Nonvested Balance at Beginning of Year (in dollars per share) | $ / shares | $ 72.30 |
Granted (in dollars per share) | $ / shares | 68.38 |
Vested (in dollars per share) | $ / shares | 72.85 |
Forfeited (in dollars per share) | $ / shares | 73.40 |
Nonvested Balance at December 31, 2019 (in dollars per share) | $ / shares | $ 69.82 |
Performance Based Restricted Stock Units | |
Number of Stock Units | |
Nonvested Balance at Beginning of Year (in shares) | shares | 502,857 |
Grants in Period (in shares) | shares | 385,244 |
Vested in Period (in shares) | shares | (195,847) |
Forfeited in Period (in shares) | shares | (91,933) |
Nonvested Balance at December 31, 2019 (in shares) | shares | 600,321 |
Weighted- average Grant-date Fair Value Per Unit | |
Nonvested Balance at Beginning of Year (in dollars per share) | $ / shares | $ 78.12 |
Granted (in dollars per share) | $ / shares | 72.07 |
Vested (in dollars per share) | $ / shares | 62.18 |
Forfeited (in dollars per share) | $ / shares | 79.96 |
Nonvested Balance at December 31, 2019 (in dollars per share) | $ / shares | $ 79.15 |
Long-term Equity-based Compen_8
Long-term Equity-based Compensation - Schedule of Share-based Compensation, Nonemployee Director Deferred Stock Unit Award Plan (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Number of DSUs | |
Vested Balance at Beginning of the Year (in shares) | shares | 44,820 |
Reduction for Shares Issued on Conversion (in shares) | shares | 0 |
Vested Balance at December 31, 2019 (in shares) | shares | 44,820 |
Weighted- average Grant-date Fair Value Per DSU | |
Vested Balance at Beginning of the Year (in dollars per share) | $ / shares | $ 44.74 |
Reduction for Shares Issued on Conversion (in dollars per share) | $ / shares | 0 |
Vested Balance at December 31, 2019 (in dollars per share) | $ / shares | $ 44.74 |
Policyholder Contract Liabili_3
Policyholder Contract Liabilities - Policyholder Contract Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Investment Holdings [Line Items] | ||
Policyholder Obligations | $ 504 | $ 467 |
Universal Life-type Policyholder Account Balances | ||
Investment Holdings [Line Items] | ||
Policyholder Obligations | 102.1 | 59.2 |
United Insurance | FHLB of Chicago | FHLB Funding Agreements | ||
Investment Holdings [Line Items] | ||
Policyholder Obligations | $ 401.9 | $ 407.8 |
Policyholder Contract Liabili_4
Policyholder Contract Liabilities - Narrative (Details) - FHLB of Chicago - United Insurance - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank, amount of advances | $ 385.4 | $ 466.4 |
Payments of FHLBank borrowings | $ 391.3 | $ 302 |
Policyholder Contract Liabili_5
Policyholder Contract Liabilities - Supplemental Financial Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Liability under Funding Agreements | $ 504 | $ 467 |
United Insurance | FHLB of Chicago | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Fair Value of Collateral Pledged | 556.6 | 530.5 |
FHLB of Chicago Common Stock Owned at Cost | 11.8 | 11.8 |
FHLB Funding Agreements | United Insurance | FHLB of Chicago | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Liability under Funding Agreements | $ 401.9 | $ 407.8 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Mar. 16, 2021 | Jun. 04, 2019 | Jun. 30, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 22, 2020 | Jul. 05, 2019 | Jun. 07, 2019 | Jul. 02, 2018 | Jun. 08, 2018 | Feb. 28, 2015 |
Debt Instrument [Line Items] | ||||||||||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2021 - $1,152.1; 2020 - $1,247.8) | $ 1,121,900,000 | $ 1,172,800,000 | ||||||||||
Loss from Early Extinguishment of Debt | 0 | 0 | $ 5,800,000 | |||||||||
Interest expense | 43,600,000 | 36,000,000 | 42,500,000 | |||||||||
Interest paid including facility fees | 43,900,000 | 34,600,000 | $ 44,000,000 | |||||||||
Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of Long-term Debt | $ 50,000,000 | |||||||||||
Secured Debt | Term Loan due July 5, 2023 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum Capacity Amount | $ 50,000,000 | |||||||||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2021 - $1,152.1; 2020 - $1,247.8) | 0 | 49,900,000 | $ 49,900,000 | |||||||||
Senior Notes | 5.000% Senior Notes Due September 19, 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2021 - $1,152.1; 2020 - $1,247.8) | 276,700,000 | 278,300,000 | ||||||||||
Senior Notes | Senior Notes Payable, 4.35% due 2025 (Fair Value: 2021 – $481.4; 2020 – $499.5) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2021 - $1,152.1; 2020 - $1,247.8) | $ 449,000,000 | 448,800,000 | ||||||||||
Stated interest rate, percentage | 4.35% | |||||||||||
Debt instrument, face amount | $ 250,000,000 | |||||||||||
Increase in debt instrument | $ 200,000,000 | |||||||||||
Long-term debt, gross | $ 450,000,000 | |||||||||||
Senior Notes | Senior Notes, 2.400 Percent Due September 30, 2030 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from debt, net of issuance costs | 395,800,000 | |||||||||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2021 - $1,152.1; 2020 - $1,247.8) | 396,200,000 | 395,800,000 | ||||||||||
Stated interest rate, percentage | 2.40% | |||||||||||
Debt instrument, effective interest rate | 2.52% | |||||||||||
Long-term debt, gross | $ 400,000,000 | |||||||||||
Subordinated Debt | Subordinated Debentures due 2054 (Fair Value: 2018 – $151.1) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate, percentage | 7.375% | |||||||||||
Long-term debt, gross | $ 150,000,000 | |||||||||||
Revolving Credit Facility | Notes Payable under Revolving Credit Agreement | Second Amended and Restated Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum Capacity Amount | 400,000,000 | $ 300,000,000 | ||||||||||
Increase in line of credit facility | 100,000,000 | |||||||||||
Debt issuance costs | 100,000 | |||||||||||
Unamortized debt issuance expense | $ 500,000 | |||||||||||
Line of credit, outstanding | $ 0 | |||||||||||
Infinity Property and Casualty Corporation | Senior Notes | 5.000% Senior Notes Due September 19, 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate, percentage | 5.00% | |||||||||||
Debt instrument, face amount | $ 275,000,000 | |||||||||||
Fair value of senior notes assumed | 282,100,000 | |||||||||||
Unamortized premium | $ 7,100,000 | |||||||||||
Debt instrument, effective interest rate | 4.36% |
Debt - Debt Outstanding (Detail
Debt - Debt Outstanding (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 22, 2020 | Jul. 05, 2019 | Jun. 07, 2019 |
Debt Instrument [Line Items] | |||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2021 - $1,152.1; 2020 - $1,247.8) | $ 1,121.9 | $ 1,172.8 | |||
Secured Debt | Term Loan due July 5, 2023 | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2021 - $1,152.1; 2020 - $1,247.8) | 0 | 49.9 | $ 49.9 | ||
Senior Notes | 5.000% Senior Notes Due September 19, 2022 | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2021 - $1,152.1; 2020 - $1,247.8) | $ 276.7 | 278.3 | |||
Senior Notes | Senior Notes Payable, 4.35% due 2025 (Fair Value: 2021 – $481.4; 2020 – $499.5) | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate, percentage | 4.35% | ||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2021 - $1,152.1; 2020 - $1,247.8) | $ 449 | 448.8 | |||
Senior Notes | Senior Notes, 2.400 Percent Due September 30, 2030 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate, percentage | 2.40% | ||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2021 - $1,152.1; 2020 - $1,247.8) | $ 396.2 | $ 395.8 | |||
Subordinated Debt | Subordinated Debentures due 2054 (Fair Value: 2018 – $151.1) | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate, percentage | 7.375% |
Leases - Narrative (Details)
Leases - Narrative (Details) | Dec. 31, 2021 |
Minimum | Building | |
Operating Leased Assets [Line Items] | |
Operating lease, term of contract | 1 year |
Minimum | Equipment | |
Operating Leased Assets [Line Items] | |
Operating lease, term of contract | 1 year |
Maximum | Building | |
Operating Leased Assets [Line Items] | |
Operating lease, term of contract | 15 years |
Maximum | Equipment | |
Operating Leased Assets [Line Items] | |
Operating lease, term of contract | 5 years |
Leases - Right of Use Assets an
Leases - Right of Use Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating Lease, Right of Use Asset | $ 64.4 | $ 68.6 |
Operating Lease Liability | $ 84.8 | $ 89.6 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities and Other Liabilities [Member] | Accrued Liabilities and Other Liabilities [Member] |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lease Cost | ||
Operating Lease, Right-Of-Use Asset, Amortization | $ 0.2 | $ 0.3 |
Operating Lease, Cost | 22.3 | 20.9 |
Variable Lease, Cost | 0.2 | |
Short-Term Lease Cost | 5 | 4.6 |
Total Lease Expense | 27.7 | 25.8 |
Less: Sublease Income | 0.3 | |
Lease, Cost | $ 27.4 | $ 25.8 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating Lease Payments | $ 23.6 | $ 15.8 |
Operating lease, Liability Reduction | 20.6 | 17.5 |
Finance Lease, Principal Payments | 0.2 | 0.3 |
Right of Use Asset Obtained in Exchange for Operating Lease Liability | $ 15.5 | $ 11 |
Leases - Lease Weighted Average
Leases - Lease Weighted Average (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Weighted Average Discount Rate, Finance Leases | 0.60% | 4.00% |
Weighted Average Discount Rate, Operating Leases | 3.40% | 4.00% |
Finance Lease, Weighted Average Remaining Lease Term | 1 year | 8 months 12 days |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Due Next 12 Months | $ 23.8 | |
Due Year Two | 21.1 | |
Due Year Three | 15.2 | |
Due Year Four | 9.9 | |
Due Year Five | 4.2 | |
Due after Year Five | 20.5 | |
Total Future Payments | 94.7 | |
Imputed Interest | 9.9 | |
Operating Lease, Liability | $ 84.8 | $ 89.6 |
Catastrophe Reinsurance - Narra
Catastrophe Reinsurance - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Liability for Catastrophe Claims [Line Items] | |||
Catastrophic events classification by amount | $ 25,000,000 | ||
Ceded earned premiums | 36,100,000 | $ 31,200,000 | $ 27,400,000 |
Incurred losses and LAE related to prior year (favorable) adverse development | 106,700,000 | 36,400,000 | (71,100,000) |
Catastrophe | |||
Liability for Catastrophe Claims [Line Items] | |||
Catastrophe Losses and LAE | 102,400,000 | 106,900,000 | 60,100,000 |
Incurred losses and LAE related to prior year (favorable) adverse development | (5,400,000) | 200,000 | (17,100,000) |
Catastrophe | Life & Health Insurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Catastrophe Losses and LAE | 12,900,000 | 12,900,000 | 3,900,000 |
Incurred losses and LAE related to prior year (favorable) adverse development | (100,000) | 500,000 | 800,000 |
Catastrophe | Specialty Property & Casualty Insurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Catastrophe Losses and LAE | 16,000,000 | 12,500,000 | 11,600,000 |
Incurred losses and LAE related to prior year (favorable) adverse development | 300,000 | 200,000 | 500,000 |
Catastrophe | Preferred Property & Casualty Insurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Catastrophe Losses and LAE | 73,500,000 | 81,500,000 | 44,600,000 |
Incurred losses and LAE related to prior year (favorable) adverse development | (5,600,000) | (500,000) | (18,400,000) |
Catastrophe Reinsurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Ceded earned premiums | 30,300,000 | 26,700,000 | 20,500,000 |
Catastrophe Reinsurance | Life & Health Insurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Ceded earned premiums | 1,300,000 | 1,200,000 | 100,000 |
Catastrophe Reinsurance | Specialty Property & Casualty Insurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Ceded earned premiums | 7,000,000 | 4,800,000 | 200,000 |
Catastrophe Reinsurance | Preferred Property & Casualty Insurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Ceded earned premiums | $ 22,000,000 | $ 20,700,000 | $ 20,200,000 |
Catastrophe Reinsurance - Cover
Catastrophe Reinsurance - Coverage for Catastrophe Reinsurance (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property & Casualty Insurance Subsidiaries | Retained | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, reinsured risk, percentage | 0.00% | 0.00% | 0.00% |
Property & Casualty Insurance Subsidiaries | 1st Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, percentage | 95.00% | 95.00% | 95.00% |
Property & Casualty Insurance Subsidiaries | 2nd Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, percentage | 95.00% | ||
Property & Casualty Insurance Subsidiaries | 2nd Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, percentage | 95.00% | 95.00% | |
Property & Casualty Insurance Subsidiaries | 3rd Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, percentage | 95.00% | ||
Property & Casualty Insurance Subsidiaries | Minimum | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, amount retained | $ 0 | $ 0 | |
Reinsurance retention policy, excess retention, amount reinsured | 60,000,000 | 60,000,000 | |
Property & Casualty Insurance Subsidiaries | Minimum | Retained | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, amount retained | 0 | 0 | $ 0 |
Property & Casualty Insurance Subsidiaries | Minimum | 1st Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, amount reinsured | 50,000,000 | 50,000,000 | 50,000,000 |
Property & Casualty Insurance Subsidiaries | Minimum | 2nd Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, amount reinsured | 150,000,000 | ||
Property & Casualty Insurance Subsidiaries | Minimum | 2nd Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, amount reinsured | 150,000,000 | 150,000,000 | |
Property & Casualty Insurance Subsidiaries | Minimum | 3rd Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, amount reinsured | 250,000,000 | ||
Property & Casualty Insurance Subsidiaries | Maximum | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, amount retained | 60,000,000 | 60,000,000 | |
Reinsurance retention policy, excess retention, amount reinsured | 110,000,000 | 110,000,000 | |
Property & Casualty Insurance Subsidiaries | Maximum | Retained | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, amount retained | 50,000,000 | 50,000,000 | 50,000,000 |
Property & Casualty Insurance Subsidiaries | Maximum | 1st Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, amount reinsured | 150,000,000 | 150,000,000 | 150,000,000 |
Property & Casualty Insurance Subsidiaries | Maximum | 2nd Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, amount reinsured | $ 250,000,000 | ||
Property & Casualty Insurance Subsidiaries | Maximum | 2nd Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, amount reinsured | $ 250,000,000 | 250,000,000 | |
Property & Casualty Insurance Subsidiaries | Maximum | 3rd Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, amount reinsured | $ 275,000,000 | ||
Kemper Preferred, Kemper Specialty and Kemper Direct Segments | 3rd Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, percentage | 95.00% | 95.00% | |
Kemper Preferred, Kemper Specialty and Kemper Direct Segments | Minimum | 3rd Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, amount reinsured | $ 250,000,000 | $ 250,000,000 | |
Kemper Preferred, Kemper Specialty and Kemper Direct Segments | Maximum | 3rd Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, amount reinsured | $ 275,000,000 | $ 275,000,000 |
Catastrophe Reinsurance - Catas
Catastrophe Reinsurance - Catastrophe Reinsurance Premiums (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Liability for Catastrophe Claims [Line Items] | |||
Ceded earned premiums | $ 36.1 | $ 31.2 | $ 27.4 |
Catastrophe Reinsurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Ceded earned premiums | 30.3 | 26.7 | 20.5 |
Specialty Property & Casualty Insurance | Catastrophe Reinsurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Ceded earned premiums | 7 | 4.8 | 0.2 |
Preferred Property & Casualty Insurance | Catastrophe Reinsurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Ceded earned premiums | 22 | 20.7 | 20.2 |
Life & Health Insurance | Catastrophe Reinsurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Ceded earned premiums | $ 1.3 | $ 1.2 | $ 0.1 |
Catastrophe Reinsurance - Cat_2
Catastrophe Reinsurance - Catastrophe Losses and LAE (Details) - Catastrophe - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Liability for Catastrophe Claims [Line Items] | |||
Catastrophe Losses and LAE | $ 102.4 | $ 106.9 | $ 60.1 |
Specialty Property & Casualty Insurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Catastrophe Losses and LAE | 16 | 12.5 | 11.6 |
Preferred Property & Casualty Insurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Catastrophe Losses and LAE | 73.5 | 81.5 | 44.6 |
Life & Health Insurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Catastrophe Losses and LAE | $ 12.9 | $ 12.9 | $ 3.9 |
Other Reinsurance (Details)
Other Reinsurance (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)employeesdirector | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Effects of Reinsurance [Line Items] | |||
Ceded earned premiums | $ 36.1 | $ 31.2 | $ 27.4 |
Assumed earned premiums | 34.7 | 50.8 | 92.3 |
Catastrophe Reinsurance | |||
Effects of Reinsurance [Line Items] | |||
Ceded earned premiums | 30.3 | 26.7 | 20.5 |
Non-Catastrophe Reinsurance | |||
Effects of Reinsurance [Line Items] | |||
Assumed earned premiums | $ 56.7 | 73.8 | 92.3 |
Capitol County Mutual Fire Insurance Company | |||
Effects of Reinsurance [Line Items] | |||
Number of employee board members | employees | 6 | ||
Number of board of director members | director | 6 | ||
Old Reliable Casualty Company | |||
Effects of Reinsurance [Line Items] | |||
Number of employee board members | employees | 9 | ||
Number of board of director members | director | 9 | ||
Capitol County Mutual Fire Insurance Company | |||
Effects of Reinsurance [Line Items] | |||
Assumed earned premiums | $ 17.3 | 18.1 | 19.4 |
Capitol County Mutual Fire Insurance Company | Trinity | |||
Effects of Reinsurance [Line Items] | |||
Percentage of written business assumed | 100.00% | ||
Old Reliable Casualty Company | |||
Effects of Reinsurance [Line Items] | |||
Assumed earned premiums | $ 4.7 | $ 4.9 | $ 5.2 |
Old Reliable Casualty Company | Trinity | |||
Effects of Reinsurance [Line Items] | |||
Percentage of written business assumed | 100.00% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 | $ 4.4 |
Income taxes paid | $ 38 | $ 55.8 | $ 68.1 |
Income Taxes - Schedule of Temp
Income Taxes - Schedule of Temporary Differences That Give Rise to Net Deferred Income Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Income Tax Assets: | ||
Insurance Reserves | $ 31.9 | $ 18.4 |
Unearned Premium Reserves | 78.3 | 66.7 |
Tax Capitalization of Policy Acquisition Costs | 46.6 | 46.6 |
Payroll and Employee Benefit Accruals | 36.4 | 35.6 |
Net Operating Loss Carryforwards | 3.6 | 1.1 |
Other | 11.6 | 13.4 |
Total Deferred Income Tax Assets | 208.4 | 181.8 |
Deferred Income Tax Liabilities: | ||
Investments | 209.1 | 258.8 |
Deferred Policy Acquisition Costs | 142.4 | 123.7 |
Life VIF and P&C Customer Relationships | 4.6 | 5 |
Goodwill and Other Intangible Assets Acquired | 38 | 35.5 |
Depreciable Assets | 38.7 | 42.1 |
Other | 2.6 | 2.4 |
Total Deferred Income Tax Liabilities | 435.4 | 467.5 |
Net Deferred Income Tax Liabilities | $ 227 | $ 285.7 |
Income Taxes - Summary of Feder
Income Taxes - Summary of Federal Net Operating Loss Carryforwards and Related Deferred Income Tax Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Contingency [Line Items] | ||
Deferred Tax Asset | $ 3.6 | $ 1.1 |
Internal Revenue Service (IRS) | ||
Income Tax Contingency [Line Items] | ||
NOL Carry-forwards | 17.5 | |
Deferred Tax Asset | 3.6 | |
operating loss carryforward, not subject to expiration | 12.3 | |
Internal Revenue Service (IRS) | 2027 | ||
Income Tax Contingency [Line Items] | ||
NOL Carry-forwards | 0.8 | |
Deferred Tax Asset | 0.2 | |
Internal Revenue Service (IRS) | 2028 | ||
Income Tax Contingency [Line Items] | ||
NOL Carry-forwards | 4.4 | |
Deferred Tax Asset | 0.9 | |
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | $ 2.5 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Liabilities for Unrecognized Tax Benefits at Beginning of Year | $ 0 | $ 0 | $ 4.4 |
Additions for Tax Positions of Current Year | 0 | 0 | 0 |
Reductions for Tax Positions of Prior Years | 0 | 0 | (4.4) |
Liabilities for Unrecognized Tax Benefits at End of Year | $ 0 | $ 0 | $ 0 |
Income Taxes - Income Tax Benef
Income Taxes - Income Tax Benefit (Expense) from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Current Income Tax Benefit (Expense) | $ 122.7 | $ (86.6) | $ (66.4) |
Deferred Income Tax Benefit (Expense) | 2.1 | (13.6) | (68.5) |
(Increase) Decrease Unrecognized Tax Benefits | 0 | 0 | 4.4 |
Income Tax Benefit (Expense) | $ 124.8 | $ (100.2) | $ (130.5) |
Income Taxes - Statutory Federa
Income Taxes - Statutory Federal Income Tax Expense, Effective Income Tax Expense, Rates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amount | |||
Statutory Federal Income Tax Benefit (Expense) | $ 51.5 | $ (107.1) | $ (138.9) |
Tax-exempt Income and Dividends Received Deduction | $ 4.6 | $ 4 | $ 4.3 |
Effective Income Tax Rate Reconciliation, Untaxed Earnings on Company-Owned Life Insurance, Percent | 2.20% | (0.50%) | (0.20%) |
Effective Income Tax Reconciliation, Untaxed Earnings on Company-Owned Life Insurance, amount | $ 5.4 | $ 2.7 | $ 1.6 |
Effective Income Tax Rate Reconciliation, Tax Credit, Investment, Percent | 27.00% | (0.60%) | 0.00% |
Effective Income Tax Rate Reconciliation, Tax Credit, Investment, Amount | $ 66.1 | $ 3.2 | $ 0 |
Stock-Based Compensation | 0.3 | 2.2 | 4.4 |
Nondeductible Executive Compensation | (2.7) | (2.7) | (2.5) |
Other, Net | (0.4) | (2.5) | 0.6 |
Income Tax Benefit (Expense) | $ 124.8 | $ (100.2) | $ (130.5) |
Rate | |||
Statutory Federal Income Tax Benefit (Expense) | 21.00% | 21.00% | 21.00% |
Tax-exempt Income and Dividends Received Deduction | 1.90% | (0.80%) | (0.70%) |
Stock-Based Compensation | 0.10% | (0.50%) | (0.70%) |
Nondeductible Executive Compensation | (1.10%) | 0.50% | 0.40% |
Other, Net | (0.20%) | 0.50% | (0.10%) |
Effective Income Tax Benefit (Expense) | 50.90% | 19.60% | 19.70% |
Income Taxes - Comprehensive In
Income Taxes - Comprehensive Income Tax Benefit and Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
Income Tax Benefit (Expense) | $ 124.8 | $ (100.2) | $ (130.5) |
Unrealized Depreciation (Appreciation) on Securities | (60.1) | (78.3) | (85.2) |
Tax Effects from Postretirement Benefit Plans | (2.4) | (15.3) | 1.7 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | 0.1 | 0 | (0.1) |
Comprehensive Income Tax (Expense) Benefit | 62.4 | (193.8) | (214.1) |
Operations | |||
Operating Loss Carryforwards [Line Items] | |||
Income Tax Benefit (Expense) | $ 124.8 | $ (100.2) | $ (130.5) |
Schedule 1 - Investments Othe_2
Schedule 1 - Investments Other Than Investments in Related Parties (Details) $ in Millions | Dec. 31, 2021USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | $ 9,758.7 |
Amount Carried in Balance Sheet | 10,387.4 |
Fixed Maturities: | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 7,358.2 |
Fair Value | 7,986.9 |
Amount Carried in Balance Sheet | 7,986.9 |
United States Government and Government Agencies and Authorities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 610.1 |
Fair Value | 637.4 |
Amount Carried in Balance Sheet | 637.4 |
States and Political Subdivisions | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 1,752.5 |
Fair Value | 1,890.1 |
Amount Carried in Balance Sheet | 1,890.1 |
Foreign Governments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 6.7 |
Fair Value | 5.5 |
Amount Carried in Balance Sheet | 5.5 |
Other Bonds and Notes | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 3,929 |
Fair Value | 4,386.9 |
Amount Carried in Balance Sheet | 4,386.9 |
Redeemable Preferred Stocks | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 7 |
Fair Value | 7.4 |
Amount Carried in Balance Sheet | 7.4 |
Collateralized Loan Obligations | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 756 |
Fair Value | 752.1 |
Amount Carried in Balance Sheet | 752.1 |
Other Mortgage- and Asset-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 296.9 |
Fair Value | 307.5 |
Amount Carried in Balance Sheet | 307.5 |
Equity Securities at Fair Value: | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 830.6 |
Fair Value | 830.6 |
Amount Carried in Balance Sheet | 830.6 |
Preferred Stocks | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 51.8 |
Fair Value | 51.8 |
Amount Carried in Balance Sheet | 51.8 |
Common Stock | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 21.8 |
Fair Value | 21.8 |
Amount Carried in Balance Sheet | 21.8 |
Other Equity Interests | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 757 |
Fair Value | 757 |
Amount Carried in Balance Sheet | 757 |
Equity Securities at Modified Cost | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 32.3 |
Amount Carried in Balance Sheet | 32.3 |
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 241.9 |
Amount Carried in Balance Sheet | 241.9 |
Convertible Securities at Fair Value | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 46.4 |
Fair Value | 46.4 |
Amount Carried in Balance Sheet | 46.4 |
Loans, Real Estate and Other Investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 925.6 |
Amount Carried in Balance Sheet | 925.6 |
Short-term Investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 284.1 |
Amount Carried in Balance Sheet | 284.1 |
Alternative Energy Partnership Investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 39.6 |
Amount Carried in Balance Sheet | $ 39.6 |
Schedule 2 - Parent Company F_4
Schedule 2 - Parent Company Financial Statements - Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 05, 2019 | Dec. 31, 2018 |
ASSETS | |||||
Amortized cost of fixed maturities | $ 7,358.2 | $ 6,692.7 | |||
Fixed Maturities at Fair Value (Amortized Cost: 2021 – $0.3; 2020 - $91.8) | 7,986.9 | 7,605.9 | |||
Cost of equity securities | 618.7 | 684.1 | |||
Equity Securities at Fair Value (Cost: 2021 - $106.8; 2020 - $73.4) | 830.6 | 858.5 | |||
Equity Securities at Modified Cost | 32.3 | 40.1 | |||
Cash | 148.2 | 206.1 | |||
Other Receivables | 207.3 | 222.4 | |||
Other Assets | 592.2 | 575.9 | |||
Operating Lease, Right of Use Asset | 64.4 | 68.6 | |||
Total Assets | 14,916.5 | 14,341.9 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2021 - $1,152.1; 2020 - $1,247.8) | 1,121.9 | 1,172.8 | |||
Long-term Debt, Current and Non-current | 1,152.1 | 1,247.8 | |||
Deferred Income Tax Liabilities | 227 | 285.7 | |||
Operating Lease, Liability | 84.8 | 89.6 | |||
Accrued Expenses and Other Liabilities | 843.6 | 727.9 | |||
Total Liabilities | 10,908.8 | 9,778.5 | |||
Shareholders’ Equity: | |||||
Common Stock | 6.4 | 6.5 | |||
Additional Paid-in Capital | 1,790.7 | 1,805.2 | |||
Retained Earnings | 1,762.5 | 2,071.2 | |||
Accumulated Other Comprehensive Income | 448.1 | 680.5 | |||
Total Shareholders’ Equity | 4,007.7 | 4,563.4 | |||
Total Liabilities and Shareholders’ Equity | 14,916.5 | 14,341.9 | |||
Term Loan due July 5, 2023 (Fair Value: 2021 – $—; 2020 – $50.0) | Secured Debt | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2021 - $1,152.1; 2020 - $1,247.8) | 0 | 49.9 | $ 49.9 | ||
Senior Notes Payable, 4.35% due 2025 (Fair Value: 2021 – $481.4; 2020 – $499.5) | Senior Notes | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2021 - $1,152.1; 2020 - $1,247.8) | 449 | 448.8 | |||
Senior Notes, 2.400 Percent Due September 30, 2030 | Senior Notes | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2021 - $1,152.1; 2020 - $1,247.8) | 396.2 | 395.8 | |||
Parent Company | |||||
ASSETS | |||||
Investments in Subsidiaries | 4,729.1 | 4,896 | |||
Amortized cost of fixed maturities | 0.3 | 91.8 | |||
Fixed Maturities at Fair Value (Amortized Cost: 2021 – $0.3; 2020 - $91.8) | 0.4 | 99.8 | |||
Cost of equity securities | 106.8 | 73.4 | |||
Equity Securities at Fair Value (Cost: 2021 - $106.8; 2020 - $73.4) | 107.4 | 78.8 | |||
Short-term Investments at Cost which Approximates Fair Value | 96.9 | 508.2 | |||
Cash | 27.7 | 46 | $ 61.8 | $ 2.9 | |
Other Receivables | 2.3 | 1.1 | |||
Other Assets | 18.9 | 29.2 | |||
Operating Lease, Right of Use Asset | 12.8 | 13.4 | |||
Total Assets | 4,995.5 | 5,672.5 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Current Income Tax Liability | 18.5 | 41.5 | |||
Deferred Income Tax Liabilities | 46.5 | 38.9 | |||
Liabilities for Benefit Plans | 42.3 | 47.6 | |||
Operating Lease, Liability | 25.8 | 26.9 | |||
Accrued Expenses and Other Liabilities | 9.5 | 59.7 | |||
Total Liabilities | 987.8 | 1,109.1 | |||
Shareholders’ Equity: | |||||
Common Stock | 6.4 | 6.5 | |||
Additional Paid-in Capital | 1,790.7 | 1,805.2 | |||
Retained Earnings | 1,762.5 | 2,071.2 | |||
Accumulated Other Comprehensive Income | 448.1 | 680.5 | |||
Total Shareholders’ Equity | 4,007.7 | 4,563.4 | |||
Total Liabilities and Shareholders’ Equity | 4,995.5 | 5,672.5 | |||
Parent Company | Term Loan due July 5, 2023 (Fair Value: 2021 – $—; 2020 – $50.0) | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2021 - $1,152.1; 2020 - $1,247.8) | 0 | 49.9 | |||
Parent Company | Term Loan due July 5, 2023 (Fair Value: 2021 – $—; 2020 – $50.0) | Secured Debt | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Long-term Debt, Current and Non-current | 0 | 50 | |||
Parent Company | Senior Notes Payable, 4.35% due 2025 (Fair Value: 2021 – $481.4; 2020 – $499.5) | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2021 - $1,152.1; 2020 - $1,247.8) | 449 | 448.8 | |||
Parent Company | Senior Notes Payable, 4.35% due 2025 (Fair Value: 2021 – $481.4; 2020 – $499.5) | Senior Notes | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Long-term Debt, Current and Non-current | 481.4 | 499.5 | |||
Parent Company | Senior Notes, 2.400 Percent Due September 30, 2030 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2021 - $1,152.1; 2020 - $1,247.8) | 396.2 | 395.8 | |||
Parent Company | Senior Notes, 2.400 Percent Due September 30, 2030 | Senior Notes | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Long-term Debt, Current and Non-current | $ 387.8 | $ 405.6 |
Schedule 2 - Parent Company F_5
Schedule 2 - Parent Company Financial Statements - Statements of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Income Statements, Captions [Line Items] | |||
Net Investment Income | $ 427.3 | $ 348.2 | $ 364.3 |
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | 114.6 | 72.1 | 138.9 |
Net Realized Gains on Sales of Investments | 64.8 | 38.1 | 41.9 |
Total Revenues | 5,793 | 5,205.7 | 5,039.2 |
Interest Expense | 43.6 | 36 | 42.5 |
Loss from Early Extinguishment of Debt | 0 | 0 | 5.8 |
Pension Obligation Settlement Costs | 64.1 | ||
Total Expenses | 6,038.3 | 4,695.6 | 4,377.6 |
Income Tax Benefit (Expense) | 124.8 | (100.2) | (130.5) |
Net Income (Loss) | (120.5) | 409.9 | 531.1 |
Parent Company | |||
Condensed Income Statements, Captions [Line Items] | |||
Net Investment Income | 3.4 | 1.4 | 2.1 |
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | 10 | 4.3 | 1.6 |
Net Realized Gains on Sales of Investments | 10.6 | 0.1 | 0.3 |
Total Revenues | 24 | 5.8 | 4 |
Interest Expense | 32 | 24.2 | 28.5 |
Loss from Early Extinguishment of Debt | 0 | 0 | 5.8 |
Pension Obligation Settlement Costs | 64.1 | ||
Other Operating (Benefits) Expenses | 5.9 | (3.6) | 4 |
Total Expenses | 37.9 | 84.7 | 38.3 |
Loss before Income Taxes and Equity in Net Income of Subsidiaries | (13.9) | (78.9) | (34.3) |
Income Tax Benefit (Expense) | (0.6) | 13.4 | 9.4 |
Loss before Equity in Net Income (Loss) of Subsidiaries | (14.5) | (65.5) | (24.9) |
Equity in Net Income (Loss) of Subsidiaries | (106) | 475.4 | 556 |
Net Income (Loss) | $ (120.5) | $ 409.9 | $ 531.1 |
Schedule 2 - Parent Company F_6
Schedule 2 - Parent Company Financial Statements - Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Statement of Income Captions [Line Items] | |||
Net Income (Loss) | $ (120.5) | $ 409.9 | $ 531.1 |
Reclassification Adjustments for Amounts Included in Net Income (Loss): | |||
Net Unrecognized Postretirement Benefit Costs | (8.8) | 70.2 | (7.8) |
Gains (Losses) on Cash Flow Hedge | 0.5 | 0.4 | 0.4 |
Other Comprehensive Income (Loss) Before Income Taxes | (294.8) | 437.9 | 397.9 |
Reclassification Adjustment for Amounts Included in Net Income (Loss): | |||
Unrealized Holding Gains and Losses | (60.1) | (78.3) | (85.2) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | (13.5) | ||
Reclassification Adjustments for Amounts Included in Net Income (Loss): | |||
Changes in Gain (Loss) on Cash Flow Hedges | (0.5) | (0.4) | (0.4) |
Other Comprehensive Income Tax Benefit (Expense) | 62.4 | (93.5) | (83.6) |
Other Comprehensive Income (Loss), Net of Taxes | (232.4) | 344.4 | 314.3 |
Total Comprehensive Income (Loss) | (352.9) | 754.3 | 845.4 |
Pension Obligation Settlement Costs | 64.1 | ||
Credit Losses | |||
Reclassification Adjustment for Amounts Included in Net Income (Loss): | |||
Changes in Net Unrealized Holding Gains (Losses) on Investment Securities | (2) | (2.6) | |
No Credit Losses | |||
Reclassification Adjustment for Amounts Included in Net Income (Loss): | |||
Changes in Net Unrealized Holding Gains (Losses) on Investment Securities | (284.5) | 369.9 | 405.3 |
Subsidiaries | |||
Reclassification Adjustment for Amounts Included in Net Income (Loss): | |||
Reclassification Adjustment for Amounts Included in Net Income | (43.5) | (16.6) | (27.9) |
Unrecognized Postretirement Benefit Costs Arising During the Year | 0.6 | 0 | (0.6) |
Reclassification Adjustment for Amounts Included in Net Income (Loss): | |||
Reclassification Adjustment for Amounts Included in Net Income | 9.1 | 3.5 | 5.8 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax | (0.1) | ||
Subsidiaries | Credit Losses | |||
Changes in Net Unrealized Gains (Losses) on Investment Securities: | |||
Unrealized Holding Gains (Losses) Arising During the Period Before Reclassification Adjustment | (2) | (2.6) | |
Changes in Net Unrealized Gains (Losses) on Investment Securities: | |||
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, Tax | 0.4 | 0.5 | |
Subsidiaries | No Credit Losses | |||
Changes in Net Unrealized Gains (Losses) on Investment Securities: | |||
Unrealized Holding Gains (Losses) Arising During the Period Before Reclassification Adjustment | (230.4) | 378.7 | 433.2 |
Changes in Net Unrealized Gains (Losses) on Investment Securities: | |||
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, Tax | 48.4 | (80.6) | (91) |
Parent Company | |||
Condensed Statement of Income Captions [Line Items] | |||
Net Income (Loss) | (120.5) | 409.9 | 531.1 |
Reclassification Adjustment for Amounts Included in Net Income (Loss): | |||
Reclassification Adjustment for Amounts Included in Net Income | (10.6) | (0.1) | (0.2) |
Unrecognized Postretirement Benefit Costs Arising During the Year | (9.5) | 3.6 | (4.2) |
Reclassification Adjustments for Amounts Included in Net Income (Loss): | |||
Amortization of Unrecognized Postretirement Benefits (Costs) | 0.1 | 2.5 | (3) |
Gains (Losses) on Cash Flow Hedge | 0.5 | 0.4 | 0.4 |
Other Comprehensive Income (Loss) Before Income Taxes | (294.8) | 438 | 397.9 |
Reclassification Adjustment for Amounts Included in Net Income (Loss): | |||
Reclassification Adjustment for Amounts Included in Net Income | 2.2 | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax | 2.5 | (1.3) | 1 |
Reclassification Adjustments for Amounts Included in Net Income (Loss): | |||
Amortization of Unrecognized Postretirement Benefit Costs | 0 | (0.5) | 0.7 |
Changes in Gain (Loss) on Cash Flow Hedges | (0.1) | 0 | (0.1) |
Changes in Gain (Loss) on Cash Flow Hedges | (0.5) | (0.4) | (0.4) |
Other Comprehensive Income Tax Benefit (Expense) | 62.4 | (93.6) | (83.6) |
Other Comprehensive Income (Loss), Net of Taxes | (232.4) | 344.4 | 314.3 |
Total Comprehensive Income (Loss) | (352.9) | 754.3 | 845.4 |
Pension Obligation Settlement Costs | 64.1 | ||
Parent Company | No Credit Losses | |||
Changes in Net Unrealized Gains (Losses) on Investment Securities: | |||
Unrealized Holding Gains (Losses) Arising During the Period Before Reclassification Adjustment | 0 | 8 | 0.2 |
Changes in Net Unrealized Gains (Losses) on Investment Securities: | |||
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, Tax | $ 0 | $ (1.7) | $ 0 |
Schedule 2 - Parent Company F_7
Schedule 2 - Parent Company Financial Statements - Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows from Operating Activities: | ||||
Net Income (Loss) | $ (120.5) | $ 409.9 | $ 531.1 | |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | ||||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | (114.6) | (72.1) | (138.9) | |
Net Realized Gain on Sale of Investments | (64.8) | (38.1) | (41.9) | |
Loss from Early Extinguishment of Debt | 0 | 0 | 5.8 | |
Other Assets and Liabilities | 89.1 | (27.8) | 5.4 | |
Net Cash Provided by Operating Activities | 350.7 | 448 | 534.3 | |
Cash Flows from Investing Activities: | ||||
Proceeds from the Sales, Calls and Maturities of Fixed Maturities | 1,388.9 | 972.4 | 1,229.1 | |
Fixed Maturities | (1,825.4) | (1,293.3) | (1,284.9) | |
Equity Securities | (124.3) | (319.1) | (307) | |
Net Sales (Purchases) of Short-term Investments | 687.2 | (390.8) | (176) | |
Equity Securities | 316.6 | 434.4 | 217.3 | |
Acquisition of Business | (316.6) | 0 | 0 | |
Net Sales (Purchases) of Short-term Investments | (50) | 0 | (185) | |
Net Cash Used by Investing Activities | (118.2) | (757) | (633.4) | |
Cash Flows from Financing Activities: | ||||
Net Proceeds from Issuance of Long-term Debt | 0 | 395.6 | 49.9 | |
Repayment of Long-term Debt | (50) | 0 | (185) | |
Dividends and Dividend Equivalents Paid | (80.6) | (78.9) | (67.8) | |
Proceeds from Shares Issued under Employee Stock Purchase Plan | 5.4 | 4.4 | 1.6 | |
Common Stock Repurchases | (161.7) | (110.4) | 0 | |
Other | 3.7 | 5 | 2.4 | |
Net Cash Provided (Used) by Financing Activities | (290.4) | 378.3 | 160.8 | |
Increase (Decrease) in Cash | (57.9) | 69.3 | 61.7 | |
Cash, Beginning of Year | 206.1 | |||
Cash, End of Year | $ 148.2 | 148.2 | 206.1 | |
Parent Company | ||||
Cash Flows from Operating Activities: | ||||
Net Income (Loss) | (120.5) | 409.9 | 531.1 | |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | ||||
Equity in Net Income (Loss) of Subsidiaries | 106 | (475.4) | (556) | |
Cash Dividends from Subsidiaries | 170.3 | 216.2 | 239 | |
Contribution to Defined Benefit Pension Plan | 0 | 0 | (55.3) | |
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | (10) | (4.3) | (1.6) | |
Net Realized Gain on Sale of Investments | (10.6) | (0.1) | (0.3) | |
Settlement Costs Related to Defined Benefit Pension Plan | 0 | 64.1 | 0 | |
Loss from Early Extinguishment of Debt | 0 | 0 | 5.8 | |
Other Assets and Liabilities | (35.3) | 52.2 | 9.8 | |
Net Cash Provided by Operating Activities | 99.9 | 262.6 | 172.5 | |
Cash Flows from Investing Activities: | ||||
Capital Contributed to Subsidiaries | (36.5) | (62) | (83) | |
Capital Distribution from Subsidiaries | 0 | 0 | 85 | |
Proceeds from the Sales, Calls and Maturities of Fixed Maturities | 181.3 | 2 | 12.7 | |
Equity Securities | (48.7) | (21) | (48.9) | |
Net Sales (Purchases) of Short-term Investments | 411.3 | (415.7) | (23.3) | |
Equity Securities | 28.5 | 2.2 | 15.3 | |
Acquisition of Business | (370.9) | 0 | 0 | |
Net Sales (Purchases) of Short-term Investments | (50) | 0 | (185) | |
Net Cash Used by Investing Activities | 165 | (494.5) | (42.2) | |
Cash Flows from Financing Activities: | ||||
Net Proceeds from Issuance of Long-term Debt | 0 | 395.6 | 49.9 | |
Repayment of Long-term Debt | (50) | 0 | (185) | |
Proceeds from Issuance of Common Stock, Net of Transaction Costs | 0 | 0 | 127.5 | |
Dividends and Dividend Equivalents Paid | (80.6) | (78.9) | (67.8) | |
Proceeds from Shares Issued under Employee Stock Purchase Plan | 5.4 | 4.4 | 1.6 | |
Common Stock Repurchases | (161.7) | (110.4) | ||
Other | 3.7 | 5.4 | 2.4 | |
Net Cash Provided (Used) by Financing Activities | (283.2) | 216.1 | (71.4) | |
Increase (Decrease) in Cash | (18.3) | (15.8) | 58.9 | |
Cash, Beginning of Year | 46 | 61.8 | 2.9 | |
Cash, End of Year | $ 27.7 | $ 27.7 | $ 46 | $ 61.8 |
Schedule 2 - Parent Company F_8
Schedule 2 - Parent Company Financial Statements - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Jul. 02, 2018 | |
5.000% Senior Notes Due September 19, 2022 | Senior Notes | Infinity Property and Casualty Corporation | |||
Condensed Financial Statements, Captions [Line Items] | |||
Stated interest rate, percentage | 5.00% | ||
Subsidiary of Common Parent | Non-cash Dividends | |||
Condensed Financial Statements, Captions [Line Items] | |||
Related party transaction, amounts of transaction | $ 189 | $ 106 | |
Parent Company | Non-cash Capital Contributions | |||
Condensed Financial Statements, Captions [Line Items] | |||
Related party transaction, amounts of transaction | $ 103.3 |
Schedule 2 - Parent Company F_9
Schedule 2 - Parent Company Financial Statements - Right of Use Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Condensed Financial Statements, Captions [Line Items] | ||
Operating Lease, Right of Use Asset | $ 64.4 | $ 68.6 |
Operating Lease, Liability | 84.8 | 89.6 |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Operating Lease, Right of Use Asset | 12.8 | 13.4 |
Operating Lease, Liability | $ 25.8 | $ 26.9 |
Schedule 2 - Parent Company _10
Schedule 2 - Parent Company Financial Statements - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Financial Statements, Captions [Line Items] | ||
Operating Lease Payments | $ 23.6 | $ 15.8 |
Operating lease, Liability Reduction | 20.6 | 17.5 |
Finance Lease, Principal Payments | 0.2 | 0.3 |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Operating Lease Payments | 2.2 | (2.1) |
Operating lease, Liability Reduction | 1.1 | 0.3 |
Finance Lease, Principal Payments | $ 0 | $ 0 |
Schedule 2 - Parent Company _11
Schedule 2 - Parent Company Financial Statements - Lease Weighted Average (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Condensed Financial Statements, Captions [Line Items] | ||
Weighted Average Remaining Lease Term, Operating Lease | 5 years 9 months 18 days | 6 years 8 months 12 days |
Weighted Average Discount Rate, Operating Leases | 3.40% | 4.00% |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Weighted Average Remaining Lease Term, Operating Lease | 11 years 10 months 24 days | 13 years |
Weighted Average Discount Rate, Operating Leases | 4.00% | 4.00% |
Schedule 2 - Parent Company _12
Schedule 2 - Parent Company Financial Statements - Future Minimum Lease Payments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Condensed Financial Statements, Captions [Line Items] | ||
Due Next 12 Months | $ 23.8 | |
Due Year Two | 21.1 | |
Due Year Three | 15.2 | |
Due Year Four | 9.9 | |
Due Year Five | 4.2 | |
Due after Year Five | 20.5 | |
Total Future Payments | 94.7 | |
Imputed Interest | 9.9 | |
Operating Lease, Liability | 84.8 | $ 89.6 |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Due Next 12 Months | 2.4 | |
Due Year Two | 2.4 | |
Due Year Three | 2.5 | |
Due Year Four | 2.6 | |
Due Year Five | 2.6 | |
Due after Year Five | 20.4 | |
Total Future Payments | 32.9 | |
Imputed Interest | 7.1 | |
Operating Lease, Liability | $ 25.8 | $ 26.9 |
Schedule 3 - Supplementary In_2
Schedule 3 - Supplementary Insurance Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Earned Premiums | $ 5,253.7 | $ 4,672.2 | $ 4,472.4 |
Other Income | 4.8 | 94.6 | 35.5 |
Net Investment Income | 427.3 | 348.2 | 364.3 |
Insurance Claims and Policy- holders’ Benefits | 4,600.8 | 3,323.6 | 3,188.3 |
Amortization of Deferred Policy Acquisition Costs | 684.3 | 641.8 | 408.3 |
Other Insurance Expenses | 533.8 | 458.7 | 611.4 |
Deferred Policy Acquisition Costs | 677.6 | 589.3 | |
Insurance Reserves | 6,313.6 | 5,510 | |
Unearned Premiums | 1,898.7 | 1,615.1 | |
Specialty Property & Casualty Insurance | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Earned Premiums | 3,948.5 | 3,335.3 | 3,078.4 |
Premiums Written | 4,057.3 | 3,435.5 | 3,211.3 |
Other Income | 4.1 | 1.8 | 7 |
Net Investment Income | 152.5 | 114.1 | 107.5 |
Insurance Claims and Policy- holders’ Benefits | 3,593.7 | 2,378.4 | 2,278.9 |
Amortization of Deferred Policy Acquisition Costs | 546.7 | 497.5 | 224.9 |
Other Insurance Expenses | 227.8 | 154.4 | 330.7 |
Deferred Policy Acquisition Costs | 219 | 177.4 | |
Insurance Reserves | 2,319.7 | 1,544.8 | |
Unearned Premiums | 1,545.9 | 1,262.9 | |
Preferred Property & Casualty Insurance | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Earned Premiums | 651.7 | 688.2 | 750.3 |
Premiums Written | 642 | 653 | 739.3 |
Other Income | 0 | 0.1 | 0 |
Net Investment Income | 68.6 | 37.7 | 44.1 |
Insurance Claims and Policy- holders’ Benefits | 537.4 | 503.1 | 508.8 |
Amortization of Deferred Policy Acquisition Costs | 103.8 | 111.2 | 120.1 |
Other Insurance Expenses | 102.6 | 109.9 | 113.2 |
Deferred Policy Acquisition Costs | 49.2 | 51.2 | |
Insurance Reserves | 433.2 | 411.6 | |
Unearned Premiums | 331.6 | 329.2 | |
Life & Health Insurance | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Earned Premiums | 653.5 | 648.7 | 643.7 |
Other Income | (1.3) | 0.6 | 8.5 |
Net Investment Income | 202.7 | 198.8 | 206.4 |
Insurance Claims and Policy- holders’ Benefits | 469.7 | 442 | 402.7 |
Amortization of Deferred Policy Acquisition Costs | 33.8 | 33.1 | 63.3 |
Other Insurance Expenses | 325.1 | 301.8 | 270.7 |
Deferred Policy Acquisition Costs | 409.4 | 360.7 | |
Insurance Reserves | 3,544.5 | 3,532.1 | |
Unearned Premiums | 21.2 | 23 | |
Other | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Earned Premiums | 0 | 0 | 0 |
Other Income | 2 | 92.1 | 20 |
Net Investment Income | 3.5 | (2.4) | 6.3 |
Insurance Claims and Policy- holders’ Benefits | 0 | 0.1 | (2.1) |
Amortization of Deferred Policy Acquisition Costs | 0 | 0 | 0 |
Other Insurance Expenses | (121.7) | (107.4) | $ (103.2) |
Deferred Policy Acquisition Costs | 0 | 0 | |
Insurance Reserves | 16.2 | 21.5 | |
Unearned Premiums | $ 0 | $ 0 |
Schedule 4 - Reinsurance Sche_2
Schedule 4 - Reinsurance Schedule (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Life Insurance in Force | |||
Gross Amount | $ 20,287.7 | $ 19,706.2 | $ 19,479.9 |
Ceded to Other Companies | 372.3 | 387.7 | 411.6 |
Assumed from Other Companies | 144.5 | 152.3 | 162.8 |
Net Amount | $ 20,059.9 | $ 19,470.8 | $ 19,231.1 |
Percentage of Amount Assumed to Net | 0.70% | 0.80% | 0.80% |
Premiums | |||
Gross Amount | $ 5,255.1 | $ 4,652.6 | $ 4,407.5 |
Ceded to Other Companies | 36.1 | 31.2 | 27.4 |
Assumed from Other Companies | 34.7 | 50.8 | 92.3 |
Net Amount | $ 5,253.7 | $ 4,672.2 | $ 4,472.4 |
Percentage of Amount Assumed to Net | 0.70% | 1.10% | 2.10% |
Life Insurance | |||
Premiums | |||
Gross Amount | $ 401.9 | $ 386 | $ 383.6 |
Ceded to Other Companies | 0.9 | 1.1 | 1.2 |
Assumed from Other Companies | 0.7 | 0.8 | 0.9 |
Net Amount | $ 401.7 | $ 385.7 | $ 383.3 |
Percentage of Amount Assumed to Net | 0.20% | 0.20% | 0.20% |
Accident and Health Insurance | |||
Premiums | |||
Gross Amount | $ 185.8 | $ 195.5 | $ 188.5 |
Ceded to Other Companies | 0.3 | 1.6 | 1.7 |
Assumed from Other Companies | 4.4 | 5.4 | 5.3 |
Net Amount | $ 189.9 | $ 199.3 | $ 192.1 |
Percentage of Amount Assumed to Net | 2.30% | 2.70% | 2.80% |
Property and Liability Insurance | |||
Premiums | |||
Gross Amount | $ 4,667.4 | $ 4,071.1 | $ 3,835.4 |
Ceded to Other Companies | 34.9 | 28.5 | 24.5 |
Assumed from Other Companies | 29.6 | 44.6 | 86.1 |
Net Amount | $ 4,662.1 | $ 4,087.2 | $ 3,897 |
Percentage of Amount Assumed to Net | 0.60% | 1.10% | 2.20% |