x | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the quarterly period ended June 30, 2017 |
¨ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the transition period from ___________ to ___________ |
Delaware | 62-1598430 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
1 FOUNTAIN SQUARE | ||
CHATTANOOGA, TENNESSEE | 37402 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | x | Accelerated filer | ¨ | ||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | ||||
Smaller reporting company | ¨ | ||||
Emerging growth company | ¨ | ||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ¨ | ||||
Page | |||
• | Sustained periods of low interest rates. |
• | Fluctuation in insurance reserve liabilities and claim payments due to changes in claim incidence, recovery rates, mortality and morbidity rates, and policy benefit offsets due to, among other factors, the rate of unemployment and consumer confidence, the emergence of new diseases, epidemics, or pandemics, new trends and developments in medical treatments, the effectiveness of our claims operational processes, and changes in government programs. |
• | Unfavorable economic or business conditions, both domestic and foreign. |
• | Legislative, regulatory, or tax changes, both domestic and foreign, including the effect of potential legislation and increased regulation in the current political environment. |
• | Investment results, including, but not limited to, changes in interest rates, defaults, changes in credit spreads, impairments, and the lack of appropriate investments in the market which can be acquired to match our liabilities. |
• | A cyber attack or other security breach could result in the unauthorized acquisition of confidential data. |
• | The failure of our business recovery and incident management processes to resume our business operations in the event of a natural catastrophe, cyber attack, or other event. |
• | Increased competition from other insurers and financial services companies due to industry consolidation, new entrants to our markets, or other factors. |
• | Execution risk related to our technology needs. |
• | Changes in our financial strength and credit ratings. |
• | Damage to our reputation due to, among other factors, regulatory investigations, legal proceedings, external events, and/or inadequate or failed internal controls and procedures. |
• | Actual experience that deviates from our assumptions used in pricing, underwriting, and reserving. |
• | Actual persistency and/or sales growth that is higher or lower than projected. |
• | Changes in demand for our products due to, among other factors, changes in societal attitudes, the rate of unemployment, consumer confidence, and/or legislative and regulatory changes, including healthcare reform. |
• | Effectiveness of our risk management program. |
• | Contingencies and the level and results of litigation. |
• | Availability of reinsurance in the market and the ability of our reinsurers to meet their obligations to us. |
• | Ineffectiveness of our derivatives hedging programs due to changes in the economic environment, counterparty risk, ratings downgrades, capital market volatility, changes in interest rates, and/or regulation. |
• | Changes in accounting standards, practices, or policies. |
• | Fluctuation in foreign currency exchange rates. |
• | Ability to generate sufficient internal liquidity and/or obtain external financing. |
• | Recoverability and/or realization of the carrying value of our intangible assets, long-lived assets, and deferred tax assets. |
• | Terrorism, both within the U.S. and abroad, ongoing military actions, and heightened security measures in response to these types of threats. |
June 30 | December 31 | ||||||
2017 | 2016 | ||||||
(in millions of dollars) | |||||||
(Unaudited) | |||||||
Assets | |||||||
Investments | |||||||
Fixed Maturity Securities - at fair value (amortized cost: $39,626.4; $39,552.7) | $ | 45,118.6 | $ | 44,217.3 | |||
Mortgage Loans | 2,081.2 | 2,038.9 | |||||
Policy Loans | 3,409.8 | 3,463.2 | |||||
Other Long-term Investments | 661.3 | 631.5 | |||||
Short-term Investments | 1,120.8 | 780.0 | |||||
Total Investments | 52,391.7 | 51,130.9 | |||||
Other Assets | |||||||
Cash and Bank Deposits | 117.0 | 100.4 | |||||
Accounts and Premiums Receivable | 1,629.1 | 1,610.8 | |||||
Reinsurance Recoverable | 4,850.6 | 4,858.9 | |||||
Accrued Investment Income | 808.6 | 693.3 | |||||
Deferred Acquisition Costs | 2,123.9 | 2,094.2 | |||||
Goodwill | 337.1 | 335.1 | |||||
Property and Equipment | 497.1 | 500.6 | |||||
Other Assets | 626.5 | 617.3 | |||||
Total Assets | $ | 63,381.6 | $ | 61,941.5 |
June 30 | December 31 | ||||||
2017 | 2016 | ||||||
(in millions of dollars) | |||||||
(Unaudited) | |||||||
Liabilities and Stockholders' Equity | |||||||
Liabilities | |||||||
Policy and Contract Benefits | $ | 1,552.5 | $ | 1,507.9 | |||
Reserves for Future Policy and Contract Benefits | 45,136.1 | 44,245.9 | |||||
Unearned Premiums | 456.9 | 363.7 | |||||
Other Policyholders’ Funds | 1,627.5 | 1,623.8 | |||||
Income Tax Payable | 3.5 | 20.6 | |||||
Deferred Income Tax | 247.3 | 130.3 | |||||
Long-term Debt | 2,968.4 | 2,999.4 | |||||
Payables for Collateral on Investments | 404.8 | 406.0 | |||||
Other Liabilities | 1,668.0 | 1,675.9 | |||||
Total Liabilities | 54,065.0 | 52,973.5 | |||||
Commitments and Contingent Liabilities - Note 11 | |||||||
Stockholders' Equity | |||||||
Common Stock, $0.10 par | |||||||
Authorized: 725,000,000 shares | |||||||
Issued: 304,082,323 and 303,552,934 shares | 30.4 | 30.4 | |||||
Additional Paid-in Capital | 2,282.9 | 2,272.8 | |||||
Accumulated Other Comprehensive Income (Loss) | 104.9 | (51.0 | ) | ||||
Retained Earnings | 9,126.7 | 8,744.0 | |||||
Treasury Stock - at cost: 77,980,192 and 73,729,992 shares | (2,228.3 | ) | (2,028.2 | ) | |||
Total Stockholders' Equity | 9,316.6 | 8,968.0 | |||||
Total Liabilities and Stockholders' Equity | $ | 63,381.6 | $ | 61,941.5 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in millions of dollars, except share data) | |||||||||||||||
Revenue | |||||||||||||||
Premium Income | $ | 2,142.2 | $ | 2,081.6 | $ | 4,285.1 | $ | 4,169.1 | |||||||
Net Investment Income | 620.5 | 623.3 | 1,222.9 | 1,229.7 | |||||||||||
Realized Investment Gain (Loss) | |||||||||||||||
Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | — | (9.4 | ) | — | (30.5 | ) | |||||||||
Net Realized Investment Gain, Excluding Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | 8.1 | 14.7 | 19.1 | 15.3 | |||||||||||
Net Realized Investment Gain (Loss) | 8.1 | 5.3 | 19.1 | (15.2 | ) | ||||||||||
Other Income | 51.2 | 51.1 | 101.4 | 103.1 | |||||||||||
Total Revenue | 2,822.0 | 2,761.3 | 5,628.5 | 5,486.7 | |||||||||||
Benefits and Expenses | |||||||||||||||
Benefits and Change in Reserves for Future Benefits | 1,752.0 | 1,733.5 | 3,501.0 | 3,463.3 | |||||||||||
Commissions | 261.3 | 255.0 | 531.5 | 514.9 | |||||||||||
Interest and Debt Expense | 39.9 | 42.4 | 79.7 | 81.0 | |||||||||||
Deferral of Acquisition Costs | (153.2 | ) | (146.7 | ) | (315.3 | ) | (299.2 | ) | |||||||
Amortization of Deferred Acquisition Costs | 138.3 | 126.2 | 279.8 | 258.4 | |||||||||||
Compensation Expense | 215.9 | 202.9 | 422.9 | 410.5 | |||||||||||
Other Expenses | 206.2 | 207.8 | 437.0 | 413.4 | |||||||||||
Total Benefits and Expenses | 2,460.4 | 2,421.1 | 4,936.6 | 4,842.3 | |||||||||||
Income Before Income Tax | 361.6 | 340.2 | 691.9 | 644.4 | |||||||||||
Income Tax (Benefit) | |||||||||||||||
Current | 105.8 | 107.7 | 162.4 | 158.7 | |||||||||||
Deferred | 10.7 | (4.3 | ) | 54.5 | 38.3 | ||||||||||
Total Income Tax | 116.5 | 103.4 | 216.9 | 197.0 | |||||||||||
Net Income | $ | 245.1 | $ | 236.8 | $ | 475.0 | $ | 447.4 | |||||||
Net Income Per Common Share | |||||||||||||||
Basic | $ | 1.08 | $ | 1.00 | $ | 2.08 | $ | 1.88 | |||||||
Assuming Dilution | $ | 1.07 | $ | 1.00 | $ | 2.07 | $ | 1.87 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in millions of dollars) | |||||||||||||||
Net Income | $ | 245.1 | $ | 236.8 | $ | 475.0 | $ | 447.4 | |||||||
Other Comprehensive Income (Loss) | |||||||||||||||
Change in Net Unrealized Gain on Securities Before Adjustment (net of tax expense of $206.5; $479.9; $295.5; $894.2) | 373.3 | 921.9 | 550.2 | 1,722.0 | |||||||||||
Change in Adjustment to Deferred Acquisition Costs and Reserves for Future Policy and Contract Benefits, Net of Reinsurance (net of tax benefit of $162.6; $367.6; $229.9; $655.3) | (298.1 | ) | (699.2 | ) | (432.6 | ) | (1,265.2 | ) | |||||||
Change in Net Gain on Cash Flow Hedges (net of tax benefit of $6.3; $4.4; $12.3; $18.0) | (12.3 | ) | (8.2 | ) | (23.0 | ) | (34.4 | ) | |||||||
Change in Foreign Currency Translation Adjustment | 39.8 | (79.4 | ) | 56.9 | (105.8 | ) | |||||||||
Change in Unrecognized Pension and Postretirement Benefit Costs (net of tax expense of $1.3; $2.0; $2.8; $3.6) | 1.8 | 4.0 | 4.4 | 7.1 | |||||||||||
Total Other Comprehensive Income | 104.5 | 139.1 | 155.9 | 323.7 | |||||||||||
Comprehensive Income | $ | 349.6 | $ | 375.9 | $ | 630.9 | $ | 771.1 |
Six Months Ended June 30 | |||||||
2017 | 2016 | ||||||
(in millions of dollars) | |||||||
Common Stock | |||||||
Balance at Beginning of Year and End of Period | $ | 30.4 | $ | 30.3 | |||
Additional Paid-in Capital | |||||||
Balance at Beginning of Year | 2,272.8 | 2,247.2 | |||||
Common Stock Activity | 10.1 | 11.5 | |||||
Balance at End of Period | 2,282.9 | 2,258.7 | |||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Balance at Beginning of Year | (51.0 | ) | 16.1 | ||||
Other Comprehensive Income | 155.9 | 323.7 | |||||
Balance at End of Period | 104.9 | 339.8 | |||||
Retained Earnings | |||||||
Balance at Beginning of Year | 8,744.0 | 7,995.2 | |||||
Net Income | 475.0 | 447.4 | |||||
Dividends to Stockholders (per common share: $0.40; $0.37) | (92.3 | ) | (89.4 | ) | |||
Balance at End of Period | 9,126.7 | 8,353.2 | |||||
Treasury Stock | |||||||
Balance at Beginning of Year | (2,028.2 | ) | (1,624.9 | ) | |||
Purchases of Treasury Stock | (200.1 | ) | (200.1 | ) | |||
Balance at End of Period | (2,228.3 | ) | (1,825.0 | ) | |||
Total Stockholders' Equity at End of Period | $ | 9,316.6 | $ | 9,157.0 |
Six Months Ended June 30 | |||||||
2017 | 2016 | ||||||
(in millions of dollars) | |||||||
Cash Flows from Operating Activities | |||||||
Net Income | $ | 475.0 | $ | 447.4 | |||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | |||||||
Change in Receivables | 94.8 | 48.1 | |||||
Change in Deferred Acquisition Costs | (35.5 | ) | (40.8 | ) | |||
Change in Insurance Reserves and Liabilities | 244.1 | 211.0 | |||||
Change in Income Taxes | 55.7 | 44.5 | |||||
Change in Other Accrued Liabilities | (12.6 | ) | (37.6 | ) | |||
Non-cash Components of Net Investment Income | (213.4 | ) | (190.5 | ) | |||
Net Realized Investment (Gain) Loss | (19.1 | ) | 15.2 | ||||
Depreciation | 53.4 | 50.6 | |||||
Other, Net | (0.4 | ) | 13.5 | ||||
Net Cash Provided by Operating Activities | 642.0 | 561.4 | |||||
Cash Flows from Investing Activities | |||||||
Proceeds from Sales of Fixed Maturity Securities | 272.2 | 674.7 | |||||
Proceeds from Maturities of Fixed Maturity Securities | 1,288.4 | 917.2 | |||||
Proceeds from Sales and Maturities of Other Investments | 106.8 | 166.7 | |||||
Purchases of Fixed Maturity Securities | (1,384.6 | ) | (1,741.1 | ) | |||
Purchases of Other Investments | (179.9 | ) | (259.0 | ) | |||
Net Purchases of Short-term Investments | (330.3 | ) | (604.2 | ) | |||
Net Increase (Decrease) in Payables for Collateral on Investments | (1.2 | ) | 34.8 | ||||
Net Purchases of Property and Equipment | (47.8 | ) | (41.6 | ) | |||
Net Cash Used by Investing Activities | (276.4 | ) | (852.5 | ) | |||
Cash Flows from Financing Activities | |||||||
Issuance of Long-term Debt | — | 609.1 | |||||
Long-term Debt Repayments | (33.5 | ) | (24.0 | ) | |||
Issuance of Common Stock | 1.5 | 2.7 | |||||
Repurchase of Common Stock | (207.0 | ) | (208.9 | ) | |||
Dividends Paid to Stockholders | (92.3 | ) | (89.4 | ) | |||
Other, Net | (17.7 | ) | (17.5 | ) | |||
Net Cash Provided (Used) by Financing Activities | (349.0 | ) | 272.0 | ||||
Net Increase (Decrease) in Cash and Bank Deposits | 16.6 | (19.1 | ) | ||||
Cash and Bank Deposits at Beginning of Year | 100.4 | 112.9 | |||||
Cash and Bank Deposits at End of Period | $ | 117.0 | $ | 93.8 |
Accounting Standards Codification (ASC) | Description | Date of Adoption | Effect on Financial Statements | |||
ASC 944 "Financial Services - Insurance" | This update changed the disclosure requirements for certain insurance contracts. These changes included a requirement to disclose the rollforward of the liability for unpaid claims and claim adjustment expenses in both interim and annual reporting periods for long-duration and short-duration insurance contracts. Additional claims disclosures were also required for short-duration contracts. The guidance is to be applied retrospectively. | January 1, 2016 for annual reporting period disclosures and January 1, 2017 for interim reporting period disclosures. | The adoption of this update expanded our interim reporting period disclosures but had no effect on our financial position or results of operations. The annual reporting period disclosure requirements were only applicable to our individual dental products, which we deem immaterial, and therefore did not alter our annual disclosures. | |||
ASC 718 "Compensation - Stock Compensation" | This update changed the accounting and disclosure requirements for certain aspects of share-based payments to employees. The update required all income tax effects of stock-based compensation awards to be recognized in the income statement when the awards vest or are settled. The update also allows an employer to repurchase more of an employee's shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. Additionally, the update required reclassification of tax-related cash flows resulting from share-based payments to be classified as operating activities instead of financing activities on the statement of cash flows. Transition guidance for the amendments varies between the retrospective, modified retrospective, and prospective methods depending on the specific requirement of the update. | January 1, 2017 | The adoption of this update did not have a material effect on our financial position or results of operations. The impact of the update reduced our effective income tax rate by a de minimis amount during the three and six months ended June 30, 2017. During periods in which the vesting date fair value differs from the grant date fair value of certain stock-based compensation awards, we may experience volatility in the income tax recognized in our results of operations. The amendment related to the reclassification of tax-related cash flows in our consolidated statements of cash flows has been applied prospectively. |
ASC | Description | Date of Adoption | Effect on Financial Statements | |||
ASC 230 "Statement of Cash Flows" | This update provides clarifying guidance intended to reduce the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The update addresses eight specific cash flow issues that relate to various transactions. The guidance is to be applied retrospectively, with early adoption permitted. | January 1, 2018 | The adoption of this update will result in reclassifications to certain cash receipts and payments within our consolidated statements of cash flows but will have no effect on our financial position or results of operations. | |||
ASC 606 "Revenue from Contracts with Customers" | These updates supersede virtually all existing guidance regarding the recognition of revenue from customers. Specifically excluded from the scope of these updates are insurance contracts, although our fee-based service products, which represent less than one percent of our total revenue, are included within the scope. The core principle of this guidance is that revenue recognition should depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance is to be applied retrospectively, with early adoption permitted. | January 1, 2018 | The adoption of these updates will not have a material effect on our financial position or results of operations. | |||
ASC 740 "Income Taxes" | This update eliminates the exception that requires intra-entity asset transfers other than inventory to be deferred until the transferred asset is sold to a third party or otherwise recovered through use. It requires recognition of tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. The guidance is to be applied retrospectively, with early adoption permitted. | January 1, 2018 | We continue to evaluate this update, but do not expect this to have a material impact on our financial position or results of operations. | |||
ASC 825 "Financial Instruments - Overall" | This update changes the accounting and disclosure requirements for certain financial instruments. These changes include a requirement to measure equity investments, other than those that result in consolidation or are accounted for under the equity method, at fair value through net income unless the investment qualifies for certain practicability exceptions. In addition, the update clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale fixed maturity securities. Changes also include the modification of certain disclosures around the fair value of financial instruments, including the requirement for separate presentation of financial assets and liabilities by measurement category, as well as the elimination of certain disclosures around methods and significant assumptions used to estimate fair value. The guidance is to be applied retrospectively and early adoption is generally not permitted. | January 1, 2018 | We have determined that certain of our limited partnership investments are within the scope of this update. We continue to evaluate this update, but do not expect this to have a material impact on our financial position or results of operations. This update could potentially increase volatility in our results of operations and we will be required to modify certain of our disclosures upon adoption. | |||
ASC | Description | Date of Adoption | Effect on Financial Statements | |||
ASC 715 "Compensation - Retirement Benefits" | This update requires the service cost component of net periodic pension and postretirement benefit costs to be included as a component of compensation costs in an entity's statement of income. Other components of net periodic pension and postretirement benefit costs are required to be presented separately from the service cost along with a disclosure identifying the line items in which these costs are presented in the statement of income. The amendments in this update are to be applied retrospectively or prospectively depending on the specific requirement of the update, with early adoption permitted. | January 1, 2018 | The adoption of this update will result in reclassifications to certain line items within our consolidated statements of income but will have no effect on our financial position or results of operations. | |||
ASC 842 "Leases" | This update changes the accounting for leases, requiring lessees to report most leases on their balance sheets, regardless of whether the lease is classified as a finance lease or an operating lease. For lessees, the initial lease liability is equal to the present value of lease payments, and a corresponding asset, adjusted for certain items, is also recorded. Expense recognition for lessees will remain similar to current accounting requirements for capital and operating leases. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The guidance is to be applied using a modified retrospective approach at the beginning of the earliest comparative period presented and early adoption is permitted. | January 1, 2019 | We have not yet determined the expected impact on our financial position or results of operations. | |||
ASC 310 "Receivables - Nonrefundable Fees and Other Costs" | This update shortens the amortization period to the earliest call date for certain callable debt securities held at a premium. This update does not impact securities held at a discount. The guidance is to be applied using a modified retrospective approach, with early adoption permitted. | January 1, 2019 | We have not yet determined the expected impact on our financial position or results of operations. | |||
ASC 350 "Intangibles - Goodwill and Other" | This update eliminates the requirement to calculate the implied fair value of goodwill (the second step in the current two-step test) to measure a goodwill impairment charge. Instead, entities should perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the excess of the carrying amount over the fair value, with the loss not to exceed the total amount of goodwill allocated to that reporting unit. The guidance is to be applied prospectively, with early adoption permitted for goodwill impairment tests performed on testing dates after January 1, 2017. | January 1, 2020 | The adoption of this update will not have a material effect on our financial position or results of operations. | |||
ASC | Description | Date of Adoption | Effect on Financial Statements | |||
ASC 326 "Financial Instruments - Credit Losses" | This update amends the guidance on the impairment of financial instruments. The update adds an impairment model known as the current expected credit loss model that is based on expected losses rather than incurred losses and will generally result in earlier recognition of allowances for losses. The current expected credit loss model applies to financial instruments such as mortgage loans, fixed maturity securities classified as held-to-maturity, and certain receivables. The update also modifies the other-than-temporary impairment model used for available-for-sale fixed maturity securities such that credit losses are recognized as an allowance rather than as a reduction in the amortized cost of the security. The reversal of previously recognized credit losses on available-for-sale fixed maturity securities is allowed under specified circumstances. Additional disclosures will also be required, including information used to develop the allowance for losses. The guidance is to be applied to most instruments in scope using a modified retrospective approach at the beginning of the earliest comparative period presented with early adoption permitted. For available-for-sale fixed maturity securities, the update is applied prospectively. Other-than-temporary impairment losses recognized on available-for-sale fixed maturity securities prior to adoption of the update cannot be reversed. | January 1, 2020 | We have not yet determined the expected impact on our financial position or results of operations. |
June 30, 2017 | December 31, 2016 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
(in millions of dollars) | |||||||||||||||
Assets | |||||||||||||||
Fixed Maturity Securities | $ | 45,118.6 | $ | 45,118.6 | $ | 44,217.3 | $ | 44,217.3 | |||||||
Mortgage Loans | 2,081.2 | 2,190.0 | 2,038.9 | 2,122.2 | |||||||||||
Policy Loans | 3,409.8 | 3,516.4 | 3,463.2 | 3,564.2 | |||||||||||
Other Long-term Investments | |||||||||||||||
Derivatives | 27.0 | 27.0 | 32.7 | 32.7 | |||||||||||
Equity Securities | 1.2 | 1.2 | 1.2 | 1.2 | |||||||||||
Miscellaneous Long-term Investments | 577.7 | 577.7 | 541.9 | 541.9 | |||||||||||
Liabilities | |||||||||||||||
Policyholders' Funds | |||||||||||||||
Deferred Annuity Products | $ | 590.9 | $ | 590.9 | $ | 597.4 | $ | 597.4 | |||||||
Supplementary Contracts without Life Contingencies | 601.0 | 601.0 | 608.8 | 608.8 | |||||||||||
Long-term Debt | 2,968.4 | 3,288.8 | 2,999.4 | 3,175.8 | |||||||||||
Payables for Collateral on Investments | |||||||||||||||
Federal Home Loan Bank (FHLB) Funding Agreements | 350.0 | 350.0 | 350.0 | 350.0 | |||||||||||
Other Liabilities | |||||||||||||||
Derivatives | 52.6 | 52.6 | 52.8 | 52.8 | |||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | 31.9 | 31.9 | 46.7 | 46.7 | |||||||||||
Unfunded Commitments to Investment Partnerships | 4.5 | 4.5 | 5.0 | 5.0 |
Level 2 | Level 3 | ||||
Instrument | Observable Inputs | Unobservable Inputs | |||
United States Government and Government Agencies and Authorities | |||||
Valuation Approaches | Principally the market approach | Not applicable | |||
Valuation Techniques / Inputs | Prices obtained from external pricing services | ||||
States, Municipalities, and Political Subdivisions | |||||
Valuation Approaches | Principally the market approach | Principally the market approach | |||
Valuation Techniques / Inputs | Prices obtained from external pricing services | Analysis of similar bonds, adjusted for comparability | |||
Relevant reports issued by analysts and rating agencies | Non-binding broker quotes | ||||
Audited financial statements | Security and issuer level spreads | ||||
Foreign Governments | |||||
Valuation Approaches | Principally the market approach | Principally the market approach | |||
Valuation Techniques / Inputs | Prices obtained from external pricing services | Analysis of similar bonds, adjusted for comparability | |||
Non-binding broker quotes | Non-binding broker quotes | ||||
Call provisions | Security and issuer level spreads | ||||
Public Utilities | |||||
Valuation Approaches | Principally the market and income approaches | Principally the market and income approaches | |||
Valuation Techniques / Inputs | TRACE pricing | Change in benchmark reference | |||
Prices obtained from external pricing services | Analysis of similar bonds, adjusted for comparability |
Level 2 | Level 3 | ||||
Instrument | Observable Inputs | Unobservable Inputs | |||
Public Utilities - Continued | |||||
Non-binding broker quotes | Discount for size - illiquidity | ||||
Benchmark yields | Non-binding broker quotes | ||||
Transactional data for new issuances and secondary trades | Lack of marketability | ||||
Security cash flows and structures | Security and issuer level spreads | ||||
Recent issuance / supply | Volatility of credit | ||||
Matrix pricing | Matrix pricing | ||||
Security and issuer level spreads | |||||
Security creditor ratings/maturity/capital structure/optionality | |||||
Public covenants | |||||
Comparative bond analysis | |||||
Relevant reports issued by analysts and rating agencies | |||||
Audited financial statements | |||||
Mortgage/Asset-Backed Securities | |||||
Valuation Approaches | Principally the market and income approaches | Principally the market approach | |||
Valuation Techniques / Inputs | Prices obtained from external pricing services | Analysis of similar bonds, adjusted for comparability | |||
Non-binding broker quotes | Non-binding broker quotes | ||||
Security cash flows and structures | Security and issuer level spreads | ||||
Underlying collateral | |||||
Prepayment speeds/loan performance/delinquencies | |||||
Relevant reports issued by analysts and rating agencies | |||||
Audited financial statements | |||||
All Other Corporate Bonds | |||||
Valuation Approaches | Principally the market and income approaches | Principally the market and income approaches | |||
Valuation Techniques / Inputs | TRACE pricing | Change in benchmark reference | |||
Prices obtained from external pricing services | Analysis of similar bonds, adjusted for comparability | ||||
Non-binding broker quotes | Discount for size - illiquidity | ||||
Benchmark yields | Non-binding broker quotes | ||||
Transactional data for new issuances and secondary trades | Lack of marketability | ||||
Security cash flows and structures | Security and issuer level spreads | ||||
Recent issuance / supply | Volatility of credit | ||||
Matrix pricing | Matrix pricing | ||||
Security and issuer level spreads | |||||
Security creditor ratings/maturity/capital structure/optionality | |||||
Public covenants | |||||
Comparative bond analysis | |||||
Relevant reports issued by analysts and rating agencies | |||||
Audited financial statements |
Level 2 | Level 3 | ||||
Instrument | Observable Inputs | Unobservable Inputs | |||
Redeemable Preferred Stocks | |||||
Valuation Approaches | Principally the market approach | Principally the market approach | |||
Valuation Techniques / Inputs | Non-binding broker quotes | Non-binding broker quotes | |||
Benchmark yields | |||||
Comparative bond analysis | |||||
Call provisions | |||||
Relevant reports issued by analysts and rating agencies | |||||
Audited financial statements | |||||
Equity Securities | |||||
Valuation Approaches | Principally the market approach | Principally the market and income approaches | |||
Valuation Techniques / Inputs | Prices obtained from external pricing services | Financial statement analysis | |||
Non-binding broker quotes | Non-binding broker quotes |
• | Approximately 66.3 percent of our fixed maturity securities were valued based on prices from pricing services that generally use observable inputs such as prices for securities or comparable securities in active markets in their valuation techniques. These assets were classified as Level 2. Level 2 assets or liabilities are those valued using inputs (other than prices included in Level 1) that are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument's anticipated life. |
• | Approximately 3.7 percent of our fixed maturity securities were valued based on one or more non-binding broker quotes, if validated by observable market data, or on TRACE prices for identical or similar assets absent current market activity. When only one price is available, it is used if observable inputs and analysis confirms that it is appropriate. These assets, for which we were able to validate the price using other observable market data, were classified as Level 2. |
• | Approximately 10.3 percent of our fixed maturity securities were valued based on prices of comparable securities, matrix pricing, market models, and/or internal models or were valued based on non-binding quotes with no other observable market data. These assets were classified as either Level 2 or Level 3, with the categorization dependent on whether there was other observable market data. Level 3 is the lowest category of the fair value hierarchy and reflects the judgment of management regarding what market participants would use in pricing assets or liabilities at the measurement date. Financial assets and liabilities categorized as Level 3 are generally those that are valued using unobservable inputs to extrapolate an estimated fair value. |
June 30, 2017 | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
(in millions of dollars) | |||||||||||||||
Assets | |||||||||||||||
Fixed Maturity Securities | |||||||||||||||
United States Government and Government Agencies and Authorities | $ | 179.4 | $ | 1,256.6 | $ | — | $ | 1,436.0 | |||||||
States, Municipalities, and Political Subdivisions | — | 2,215.6 | 36.8 | 2,252.4 | |||||||||||
Foreign Governments | — | 934.0 | — | 934.0 | |||||||||||
Public Utilities | 706.9 | 7,313.0 | 192.5 | 8,212.4 | |||||||||||
Mortgage/Asset-Backed Securities | — | 2,102.5 | — | 2,102.5 | |||||||||||
All Other Corporate Bonds | 7,987.5 | 21,298.5 | 853.2 | 30,139.2 | |||||||||||
Redeemable Preferred Stocks | — | 19.0 | 23.1 | 42.1 | |||||||||||
Total Fixed Maturity Securities | 8,873.8 | 35,139.2 | 1,105.6 | 45,118.6 | |||||||||||
Other Long-term Investments | |||||||||||||||
Derivatives | |||||||||||||||
Foreign Exchange Contracts | — | 27.0 | — | 27.0 | |||||||||||
Equity Securities | — | — | 1.2 | 1.2 | |||||||||||
Liabilities | |||||||||||||||
Other Liabilities | |||||||||||||||
Derivatives | |||||||||||||||
Interest Rate Swaps | $ | — | $ | 4.3 | $ | — | $ | 4.3 | |||||||
Foreign Exchange Contracts | — | 47.8 | — | 47.8 | |||||||||||
Credit Default Swaps | — | 0.5 | — | 0.5 | |||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | — | — | 31.9 | 31.9 | |||||||||||
Total Derivatives | — | 52.6 | 31.9 | 84.5 |
December 31, 2016 | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
(in millions of dollars) | |||||||||||||||
Assets | |||||||||||||||
Fixed Maturity Securities | |||||||||||||||
United States Government and Government Agencies and Authorities | $ | 454.2 | $ | 928.2 | $ | — | $ | 1,382.4 | |||||||
States, Municipalities, and Political Subdivisions | — | 2,068.5 | 89.5 | 2,158.0 | |||||||||||
Foreign Governments | — | 914.7 | — | 914.7 | |||||||||||
Public Utilities | 108.5 | 7,648.9 | 265.3 | 8,022.7 | |||||||||||
Mortgage/Asset-Backed Securities | — | 2,230.4 | — | 2,230.4 | |||||||||||
All Other Corporate Bonds | 3,507.1 | 24,500.4 | 1,459.7 | 29,467.2 | |||||||||||
Redeemable Preferred Stocks | — | 18.7 | 23.2 | 41.9 | |||||||||||
Total Fixed Maturity Securities | 4,069.8 | 38,309.8 | 1,837.7 | 44,217.3 | |||||||||||
Other Long-term Investments | |||||||||||||||
Derivatives | |||||||||||||||
Foreign Exchange Contracts | — | 32.7 | — | 32.7 | |||||||||||
Equity Securities | — | — | 1.2 | 1.2 | |||||||||||
Liabilities | |||||||||||||||
Other Liabilities | |||||||||||||||
Derivatives | |||||||||||||||
Interest Rate Swaps | $ | — | $ | 7.6 | $ | — | $ | 7.6 | |||||||
Foreign Exchange Contracts | — | 44.8 | — | 44.8 | |||||||||||
Credit Default Swaps | — | 0.4 | — | 0.4 | |||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | — | — | 46.7 | 46.7 | |||||||||||
Total Derivatives | — | 52.8 | 46.7 | 99.5 |
Three Months Ended June 30 | |||||||||||||||
2017 | 2016 | ||||||||||||||
Transfers into | |||||||||||||||
Level 1 from Level 2 | Level 2 from Level 1 | Level 1 from Level 2 | Level 2 from Level 1 | ||||||||||||
(in millions of dollars) | |||||||||||||||
Fixed Maturity Securities | |||||||||||||||
United States Government and Government Agencies and Authorities | $ | — | $ | 152.4 | $ | — | $ | — | |||||||
States, Municipalities, and Political Subdivisions | — | — | 73.4 | — | |||||||||||
Public Utilities | 360.3 | 891.5 | 527.2 | 397.7 | |||||||||||
All Other Corporate Bonds | 1,931.2 | 3,630.4 | 2,873.8 | 3,047.7 | |||||||||||
Total Fixed Maturity Securities | $ | 2,291.5 | $ | 4,674.3 | $ | 3,474.4 | $ | 3,445.4 |
Six Months Ended June 30 | |||||||||||||||
2017 | 2016 | ||||||||||||||
Transfers into | |||||||||||||||
Level 1 from Level 2 | Level 2 from Level 1 | Level 1 from Level 2 | Level 2 from Level 1 | ||||||||||||
(in millions of dollars) | |||||||||||||||
Fixed Maturity Securities | |||||||||||||||
United States Government and Government Agencies and Authorities | $ | — | $ | 276.6 | $ | 423.8 | $ | — | |||||||
States, Municipalities, and Political Subdivisions | — | — | 73.3 | — | |||||||||||
Public Utilities | 596.8 | 98.3 | 630.1 | 34.1 | |||||||||||
All Other Corporate Bonds | 4,843.3 | 1,295.0 | 5,213.5 | 786.6 | |||||||||||
Total Fixed Maturity Securities | $ | 5,440.1 | $ | 1,669.9 | $ | 6,340.7 | $ | 820.7 |
Three Months Ended June 30, 2017 | |||||||||||||||||||||||||||||||
Total Realized and Unrealized Investment Gains (Losses) Included in | |||||||||||||||||||||||||||||||
Beginning of Period | Earnings | Other Comprehensive Income or Loss | Purchases | Sales | Level 3 Transfers | End of Period | |||||||||||||||||||||||||
Into | Out of | ||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||
States, Municipalities, and Political Subdivisions | $ | 0.4 | $ | — | $ | 0.3 | $ | — | $ | (0.1 | ) | $ | 36.6 | $ | (0.4 | ) | $ | 36.8 | |||||||||||||
Public Utilities | 312.5 | — | 0.3 | — | — | 48.0 | (168.3 | ) | 192.5 | ||||||||||||||||||||||
All Other Corporate Bonds | 923.0 | (0.6 | ) | 5.6 | — | (29.1 | ) | 237.6 | (283.3 | ) | 853.2 | ||||||||||||||||||||
Redeemable Preferred Stocks | 22.9 | — | 0.2 | — | — | — | — | 23.1 | |||||||||||||||||||||||
Total Fixed Maturity Securities | 1,258.8 | (0.6 | ) | 6.4 | — | (29.2 | ) | 322.2 | (452.0 | ) | 1,105.6 | ||||||||||||||||||||
Equity Securities | 1.2 | — | — | — | — | — | — | 1.2 | |||||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | (38.1 | ) | 6.2 | — | — | — | — | — | (31.9 | ) | |||||||||||||||||||||
Three Months Ended June 30, 2016 | |||||||||||||||||||||||||||||||
Total Realized and Unrealized Investment Gains (Losses) Included in | |||||||||||||||||||||||||||||||
Beginning of Period | Earnings | Other Comprehensive Income or Loss | Purchases | Sales | Level 3 Transfers | End of Period | |||||||||||||||||||||||||
Into | Out of | ||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||
States, Municipalities, and Political Subdivisions | $ | 88.7 | $ | — | $ | 2.4 | $ | — | $ | — | $ | — | $ | (29.5 | ) | $ | 61.6 | ||||||||||||||
Foreign Governments | 53.9 | — | — | — | — | — | (53.9 | ) | — | ||||||||||||||||||||||
Public Utilities | 270.2 | — | 1.2 | — | (0.2 | ) | 232.2 | (49.9 | ) | 453.5 | |||||||||||||||||||||
All Other Corporate Bonds | 1,074.7 | 3.4 | 19.8 | 58.0 | (57.9 | ) | 641.2 | (379.6 | ) | 1,359.6 | |||||||||||||||||||||
Redeemable Preferred Stocks | 23.4 | — | 0.2 | — | — | — | — | 23.6 | |||||||||||||||||||||||
Total Fixed Maturity Securities | 1,510.9 | 3.4 | 23.6 | 58.0 | (58.1 | ) | 873.4 | (512.9 | ) | 1,898.3 | |||||||||||||||||||||
Equity Securities | 1.2 | — | — | — | — | — | — | 1.2 | |||||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | (93.2 | ) | 10.2 | — | — | — | — | — | (83.0 | ) |
Six Months Ended June 30, 2017 | |||||||||||||||||||||||||||||||
Total Realized and Unrealized Investment Gains (Losses) Included in | |||||||||||||||||||||||||||||||
Beginning of Year | Earnings | Other Comprehensive Income or Loss | Purchases | Sales | Level 3 Transfers | End of Period | |||||||||||||||||||||||||
Into | Out of | ||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||
States, Municipalities, and Political Subdivisions | $ | 89.5 | $ | — | $ | 0.3 | $ | — | $ | — | $ | — | $ | (53.0 | ) | $ | 36.8 | ||||||||||||||
Public Utilities | 265.3 | — | 1.2 | 8.0 | (4.8 | ) | 72.0 | (149.2 | ) | 192.5 | |||||||||||||||||||||
All Other Corporate Bonds | 1,459.7 | (0.6 | ) | 10.9 | — | (81.2 | ) | 313.0 | (848.6 | ) | 853.2 | ||||||||||||||||||||
Redeemable Preferred Stocks | 23.2 | — | (0.1 | ) | — | — | — | — | 23.1 | ||||||||||||||||||||||
Total Fixed Maturity Securities | 1,837.7 | (0.6 | ) | 12.3 | 8.0 | (86.0 | ) | 385.0 | (1,050.8 | ) | 1,105.6 | ||||||||||||||||||||
Equity Securities | 1.2 | — | — | — | — | — | — | 1.2 | |||||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | (46.7 | ) | 14.8 | — | — | — | — | — | (31.9 | ) | |||||||||||||||||||||
Six Months Ended June 30, 2016 | |||||||||||||||||||||||||||||||
Total Realized and Unrealized Investment Gains (Losses) Included in | |||||||||||||||||||||||||||||||
Beginning of Year | Earnings | Other Comprehensive Income or Loss | Purchases | Sales | Level 3 Transfers | End of Period | |||||||||||||||||||||||||
Into | Out of | ||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||
States, Municipalities, and Political Subdivisions | $ | 122.2 | $ | — | $ | 1.7 | $ | — | $ | (0.1 | ) | $ | — | $ | (62.2 | ) | $ | 61.6 | |||||||||||||
Foreign Governments | 52.9 | — | — | — | — | — | (52.9 | ) | — | ||||||||||||||||||||||
Public Utilities | 274.1 | — | 10.9 | — | (0.5 | ) | 272.1 | (103.1 | ) | 453.5 | |||||||||||||||||||||
All Other Corporate Bonds | 1,408.2 | 0.6 | 45.3 | 58.0 | (45.1 | ) | 592.9 | (700.3 | ) | 1,359.6 | |||||||||||||||||||||
Redeemable Preferred Stocks | 23.8 | — | (0.2 | ) | — | — | — | — | 23.6 | ||||||||||||||||||||||
Total Fixed Maturity Securities | 1,881.2 | 0.6 | 57.7 | 58.0 | (45.7 | ) | 865.0 | (918.5 | ) | 1,898.3 | |||||||||||||||||||||
Equity Securities | 1.4 | — | — | — | — | — | (0.2 | ) | 1.2 | ||||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | (87.6 | ) | 4.6 | — | — | — | — | — | (83.0 | ) |
June 30, 2017 | |||||||
Fair Value | Unobservable Input | Range/Weighted Average | |||||
(in millions of dollars) | |||||||
Fixed Maturity Securities | |||||||
All Other Corporate Bonds - Private | $ | 248.3 | Lack of Marketability Volatility of Credit Market Convention | (c) (d) (e) | 0.25% - 0.25% / 0.25% 0.20% - 6.34% / 0.72% Priced at Par | ||
Equity Securities - Private | 1.1 | Market Convention | (e) | Priced at Cost or Owner's Equity | |||
Embedded Derivative in Modified Coinsurance Arrangement | (31.9 | ) | Projected Liability Cash Flows | (f) | Actuarial Assumptions |
December 31, 2016 | |||||||
Fair Value | Unobservable Input | Range/Weighted Average | |||||
(in millions of dollars) | |||||||
Fixed Maturity Securities | |||||||
All Other Corporate Bonds - Private | $ | 310.4 | Comparability Adjustment Discount for Size Lack of Marketability Volatility of Credit Market Convention | (a) (b) (c) (d) (e) | 0.50% - 0.50% / 0.50% 0.50% - 0.50% / 0.50% 0.20% - 0.25% / 0.23% 0.20% - 6.04% / 0.70% Priced at Par | ||
Equity Securities - Private | 1.1 | Market Convention | (e) | Priced at Cost or Owner's Equity | |||
Embedded Derivative in Modified Coinsurance Arrangement | (46.7 | ) | Projected Liability Cash Flows | (f) | Actuarial Assumptions |
(a) | Represents basis point adjustments for changes in benchmark spreads associated with various industry sectors |
(b) | Represents basis point adjustments based on issue/issuer size relative to the benchmark |
(c) | Represents basis point adjustments to apply a discount due to the illiquidity of an investment |
(d) | Represents basis point adjustments for credit-specific factors |
(e) | Represents a decision to price based on par value, cost, or owner's equity when limited data is available |
(f) | Represents various actuarial assumptions required to derive the liability cash flows including incidence, termination, and lapse rates |
June 30, 2017 | |||||||||||||||
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | ||||||||||||
(in millions of dollars) | |||||||||||||||
United States Government and Government Agencies and Authorities | $ | 1,246.7 | $ | 192.0 | $ | 2.7 | $ | 1,436.0 | |||||||
States, Municipalities, and Political Subdivisions | 1,906.0 | 348.2 | 1.8 | 2,252.4 | |||||||||||
Foreign Governments | 740.4 | 193.6 | — | 934.0 | |||||||||||
Public Utilities | 6,976.4 | 1,245.3 | 9.3 | 8,212.4 | |||||||||||
Mortgage/Asset-Backed Securities | 1,984.9 | 123.8 | 6.2 | 2,102.5 | |||||||||||
All Other Corporate Bonds | 26,733.0 | 3,505.9 | 99.7 | 30,139.2 | |||||||||||
Redeemable Preferred Stocks | 39.0 | 3.1 | — | 42.1 | |||||||||||
Total Fixed Maturity Securities | $ | 39,626.4 | $ | 5,611.9 | $ | 119.7 | $ | 45,118.6 |
December 31, 2016 | |||||||||||||||
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | ||||||||||||
(in millions of dollars) | |||||||||||||||
United States Government and Government Agencies and Authorities | $ | 1,202.8 | $ | 183.1 | $ | 3.5 | $ | 1,382.4 | |||||||
States, Municipalities, and Political Subdivisions | 1,868.0 | 294.8 | 4.8 | 2,158.0 | |||||||||||
Foreign Governments | 714.8 | 199.9 | — | 914.7 | |||||||||||
Public Utilities | 6,916.1 | 1,123.5 | 16.9 | 8,022.7 | |||||||||||
Mortgage/Asset-Backed Securities | 2,104.9 | 134.7 | 9.2 | 2,230.4 | |||||||||||
All Other Corporate Bonds | 26,707.1 | 2,944.0 | 183.9 | 29,467.2 | |||||||||||
Redeemable Preferred Stocks | 39.0 | 3.2 | 0.3 | 41.9 | |||||||||||
Total Fixed Maturity Securities | $ | 39,552.7 | $ | 4,883.2 | $ | 218.6 | $ | 44,217.3 |
June 30, 2017 | |||||||||||||||
Less Than 12 Months | 12 Months or Greater | ||||||||||||||
Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | ||||||||||||
(in millions of dollars) | |||||||||||||||
United States Government and Government Agencies and Authorities | $ | 133.7 | $ | 2.7 | $ | — | $ | — | |||||||
States, Municipalities, and Political Subdivisions | 91.6 | 1.8 | — | — | |||||||||||
Public Utilities | 219.3 | 5.8 | 32.8 | 3.5 | |||||||||||
Mortgage/Asset-Backed Securities | 449.2 | 6.0 | 9.9 | 0.2 | |||||||||||
All Other Corporate Bonds | 1,494.7 | 33.6 | 631.6 | 66.1 | |||||||||||
Total Fixed Maturity Securities | $ | 2,388.5 | $ | 49.9 | $ | 674.3 | $ | 69.8 |
December 31, 2016 | |||||||||||||||
Less Than 12 Months | 12 Months or Greater | ||||||||||||||
Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | ||||||||||||
(in millions of dollars) | |||||||||||||||
United States Government and Government Agencies and Authorities | $ | 132.8 | $ | 3.5 | $ | — | $ | — | |||||||
States, Municipalities, and Political Subdivisions | 132.2 | 4.8 | — | — | |||||||||||
Public Utilities | 260.2 | 15.3 | 15.6 | 1.6 | |||||||||||
Mortgage/Asset-Backed Securities | 513.2 | 9.1 | 0.8 | 0.1 | |||||||||||
All Other Corporate Bonds | 3,621.0 | 122.1 | 774.7 | 61.8 | |||||||||||
Redeemable Preferred Stocks | 7.9 | 0.1 | 10.8 | 0.2 | |||||||||||
Total Fixed Maturity Securities | $ | 4,667.3 | $ | 154.9 | $ | 801.9 | $ | 63.7 |
June 30, 2017 | |||||||||||||||||||
Total Amortized Cost | Unrealized Gain Position | Unrealized Loss Position | |||||||||||||||||
Gross Gain | Fair Value | Gross Loss | Fair Value | ||||||||||||||||
(in millions of dollars) | |||||||||||||||||||
1 year or less | $ | 1,715.2 | $ | 41.8 | $ | 1,753.1 | $ | — | $ | 3.9 | |||||||||
Over 1 year through 5 years | 5,495.1 | 509.5 | 5,854.9 | 5.8 | 143.9 | ||||||||||||||
Over 5 years through 10 years | 11,484.5 | 1,080.1 | 11,339.0 | 51.7 | 1,173.9 | ||||||||||||||
Over 10 years | 18,946.7 | 3,856.7 | 21,465.4 | 56.0 | 1,282.0 | ||||||||||||||
37,641.5 | 5,488.1 | 40,412.4 | 113.5 | 2,603.7 | |||||||||||||||
Mortgage/Asset-Backed Securities | 1,984.9 | 123.8 | 1,643.4 | 6.2 | 459.1 | ||||||||||||||
Total Fixed Maturity Securities | $ | 39,626.4 | $ | 5,611.9 | $ | 42,055.8 | $ | 119.7 | $ | 3,062.8 |
December 31, 2016 | |||||||||||||||||||
Total Amortized Cost | Unrealized Gain Position | Unrealized Loss Position | |||||||||||||||||
Gross Gain | Fair Value | Gross Loss | Fair Value | ||||||||||||||||
(in millions of dollars) | |||||||||||||||||||
1 year or less | $ | 1,338.8 | $ | 28.6 | $ | 1,355.6 | $ | — | $ | 11.8 | |||||||||
Over 1 year through 5 years | 6,231.0 | 553.5 | 6,605.6 | 8.2 | 170.7 | ||||||||||||||
Over 5 years through 10 years | 10,991.6 | 843.8 | 9,336.2 | 82.8 | 2,416.4 | ||||||||||||||
Over 10 years | 18,886.4 | 3,322.6 | 19,734.3 | 118.4 | 2,356.3 | ||||||||||||||
37,447.8 | 4,748.5 | 37,031.7 | 209.4 | 4,955.2 | |||||||||||||||
Mortgage/Asset-Backed Securities | 2,104.9 | 134.7 | 1,716.4 | 9.2 | 514.0 | ||||||||||||||
Total Fixed Maturity Securities | $ | 39,552.7 | $ | 4,883.2 | $ | 38,748.1 | $ | 218.6 | $ | 5,469.2 |
• | Whether we expect to recover the entire amortized cost basis of the security |
• | Whether we intend to sell the security or will be required to sell the security before the recovery of its amortized cost basis |
• | Whether the security is current as to principal and interest payments |
• | The significance of the decline in value |
• | The time period during which there has been a significant decline in value |
• | Current and future business prospects and trends of earnings |
• | The valuation of the security's underlying collateral |
• | Relevant industry conditions and trends relative to their historical cycles |
• | Market conditions |
• | Rating agency and governmental actions |
• | Bid and offering prices and the level of trading activity |
• | Adverse changes in estimated cash flows for securitized investments |
• | Changes in fair value subsequent to the balance sheet date |
• | Any other key measures for the related security |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in millions of dollars) | |||||||||||||||
Income Tax Credits | $ | 10.5 | $ | 10.4 | $ | 20.9 | $ | 20.9 | |||||||
Amortization, net of tax | (5.8 | ) | (5.8 | ) | (11.6 | ) | (11.6 | ) | |||||||
Income Tax Benefit | $ | 4.7 | $ | 4.6 | $ | 9.3 | $ | 9.3 |
June 30, 2017 | December 31, 2016 | ||||||||||||
(in millions of dollars) | |||||||||||||
Carrying | Percent of | Carrying | Percent of | ||||||||||
Amount | Total | Amount | Total | ||||||||||
Property Type | |||||||||||||
Apartment | $ | 309.0 | 14.8 | % | $ | 288.4 | 14.1 | % | |||||
Industrial | 569.5 | 27.3 | 573.6 | 28.1 | |||||||||
Office | 702.5 | 33.8 | 700.1 | 34.4 | |||||||||
Retail | 467.7 | 22.5 | 455.4 | 22.4 | |||||||||
Other | 32.5 | 1.6 | 21.4 | 1.0 | |||||||||
Total | $ | 2,081.2 | 100.0 | % | $ | 2,038.9 | 100.0 | % |
Region | |||||||||||||
New England | $ | 70.8 | 3.4 | % | $ | 72.7 | 3.6 | % | |||||
Mid-Atlantic | 127.6 | 6.1 | 125.3 | 6.1 | |||||||||
East North Central | 249.4 | 12.0 | 230.1 | 11.3 | |||||||||
West North Central | 188.9 | 9.1 | 172.0 | 8.4 | |||||||||
South Atlantic | 435.7 | 20.9 | 438.3 | 21.5 | |||||||||
East South Central | 90.2 | 4.3 | 91.6 | 4.5 | |||||||||
West South Central | 260.3 | 12.5 | 268.7 | 13.2 | |||||||||
Mountain | 229.8 | 11.1 | 214.1 | 10.5 | |||||||||
Pacific | 428.5 | 20.6 | 426.1 | 20.9 | |||||||||
Total | $ | 2,081.2 | 100.0 | % | $ | 2,038.9 | 100.0 | % |
• | Loan-to-value ratio |
• | Debt service coverage ratio based on current operating income |
• | Property location, including regional economics, trends and demographics |
• | Age, condition, and construction quality of property |
• | Current and historical occupancy of property |
• | Lease terms relative to market |
• | Tenant size and financial strength |
• | Borrower's financial strength |
• | Borrower's equity in transaction |
• | Additional collateral, if any |
June 30 2017 | December 31 2016 | ||||||
(in millions of dollars) | |||||||
Internal Rating | |||||||
Aa | $ | 0.5 | $ | 0.7 | |||
A | 487.2 | 488.2 | |||||
Baa | 1,556.5 | 1,506.6 | |||||
Ba | 37.0 | 43.4 | |||||
Total | $ | 2,081.2 | $ | 2,038.9 |
Loan-to-Value Ratio | |||||||
<= 65% | $ | 968.1 | $ | 917.9 | |||
> 65% <= 75% | 1,011.0 | 1,011.5 | |||||
> 75% <= 85% | 49.9 | 50.8 | |||||
> 85% | 52.2 | 58.7 | |||||
Total | $ | 2,081.2 | $ | 2,038.9 |
June 30, 2017 | December 31, 2016 | |||||||
Overnight and Continuous | ||||||||
(in millions of dollars) | ||||||||
United States Government and Government Agencies and Authorities | $ | 1.1 | $ | 0.1 | ||||
Public Utilities | 0.1 | 0.1 | ||||||
All Other Corporate Bonds | 32.2 | 29.7 | ||||||
Total Borrowings | 33.4 | 29.9 | ||||||
Gross Amount of Recognized Liability for Securities Lending Transactions | 33.4 | 29.9 | ||||||
Amounts Related to Agreements Not Included in Offsetting Disclosure Contained Herein | $ | — | $ | — |
June 30, 2017 | ||||||||||||||||||||||||
Gross Amount | Gross Amount Not | |||||||||||||||||||||||
of Recognized | Gross Amount | Net Amount | Offset in Balance Sheet | |||||||||||||||||||||
Financial | Offset in | Presented in | Financial | Cash | Net | |||||||||||||||||||
Instruments | Balance Sheet | Balance Sheet | Instruments | Collateral | Amount | |||||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||
Derivatives | $ | 27.0 | $ | — | $ | 27.0 | $ | (6.0 | ) | $ | (21.0 | ) | $ | — | ||||||||||
Securities Lending | 219.9 | — | 219.9 | (186.5 | ) | (33.4 | ) | — | ||||||||||||||||
Total | $ | 246.9 | $ | — | $ | 246.9 | $ | (192.5 | ) | $ | (54.4 | ) | $ | — | ||||||||||
Financial Liabilities: | ||||||||||||||||||||||||
Derivatives | $ | 52.6 | $ | — | $ | 52.6 | $ | (40.6 | ) | $ | — | $ | 12.0 | |||||||||||
Securities Lending | 33.4 | — | 33.4 | (33.4 | ) | — | — | |||||||||||||||||
Total | $ | 86.0 | $ | — | $ | 86.0 | $ | (74.0 | ) | $ | — | $ | 12.0 |
December 31, 2016 | ||||||||||||||||||||||||
Gross Amount | Gross Amount Not | |||||||||||||||||||||||
of Recognized | Gross Amount | Net Amount | Offset in Balance Sheet | |||||||||||||||||||||
Financial | Offset in | Presented in | Financial | Cash | Net | |||||||||||||||||||
Instruments | Balance Sheet | Balance Sheet | Instruments | Collateral | Amount | |||||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||
Derivatives | $ | 32.7 | $ | — | $ | 32.7 | $ | (7.3 | ) | $ | (25.4 | ) | $ | — | ||||||||||
Securities Lending | 178.5 | — | 178.5 | (148.6 | ) | (29.9 | ) | — | ||||||||||||||||
Total | $ | 211.2 | $ | — | $ | 211.2 | $ | (155.9 | ) | $ | (55.3 | ) | $ | — | ||||||||||
Financial Liabilities: | ||||||||||||||||||||||||
Derivatives | $ | 52.8 | $ | — | $ | 52.8 | $ | (37.6 | ) | $ | — | $ | 15.2 | |||||||||||
Securities Lending | 29.9 | — | 29.9 | (29.9 | ) | — | — | |||||||||||||||||
Total | $ | 82.7 | $ | — | $ | 82.7 | $ | (67.5 | ) | $ | — | $ | 15.2 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in millions of dollars) | |||||||||||||||
Fixed Maturity Securities | $ | 572.0 | $ | 579.6 | $ | 1,135.7 | $ | 1,143.4 | |||||||
Derivatives | 14.0 | 12.4 | 27.4 | 24.3 | |||||||||||
Mortgage Loans | 25.6 | 30.1 | 51.0 | 57.0 | |||||||||||
Policy Loans | 4.5 | 4.3 | 8.8 | 8.4 | |||||||||||
Other Long-term Investments | 13.4 | 6.3 | 19.5 | 16.3 | |||||||||||
Short-term Investments | 2.6 | 2.1 | 4.5 | 3.6 | |||||||||||
Gross Investment Income | 632.1 | 634.8 | 1,246.9 | 1,253.0 | |||||||||||
Less Investment Expenses | 8.1 | 7.9 | 16.9 | 16.1 | |||||||||||
Less Investment Income on Participation Fund Account Assets | 3.5 | 3.6 | 7.1 | 7.2 | |||||||||||
Net Investment Income | $ | 620.5 | $ | 623.3 | $ | 1,222.9 | $ | 1,229.7 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in millions of dollars) | |||||||||||||||
Fixed Maturity Securities | |||||||||||||||
Gross Gains on Sales | $ | 1.9 | $ | 10.9 | $ | 4.3 | $ | 27.8 | |||||||
Gross Losses on Sales | (1.2 | ) | (4.0 | ) | (2.3 | ) | (13.6 | ) | |||||||
Other-Than-Temporary Impairment Loss | — | (9.4 | ) | — | (30.5 | ) | |||||||||
Mortgage Loans and Other Invested Assets | |||||||||||||||
Gross Gains on Sales | 1.9 | 2.0 | 2.6 | 3.8 | |||||||||||
Gross Losses on Sales | — | (0.4 | ) | (0.2 | ) | (0.7 | ) | ||||||||
Impairment Loss | — | (3.1 | ) | — | (3.1 | ) | |||||||||
Embedded Derivative in Modified Coinsurance Arrangement | 6.2 | 10.2 | 14.8 | 4.6 | |||||||||||
All Other Derivatives | (0.3 | ) | (1.1 | ) | (0.5 | ) | (3.6 | ) | |||||||
Foreign Currency Transactions | (0.4 | ) | 0.2 | 0.4 | 0.1 | ||||||||||
Net Realized Investment Gain (Loss) | $ | 8.1 | $ | 5.3 | $ | 19.1 | $ | (15.2 | ) |
• | Interest rate swaps are used to hedge interest rate risks and to improve the matching of assets and liabilities. An interest rate swap is an agreement in which we agree with other parties to exchange, at specified intervals, the difference between fixed rate and variable rate interest amounts. We use interest rate swaps to hedge the anticipated purchase of fixed maturity securities thereby protecting us from the potential adverse impact of declining interest rates on the associated policy reserves. We also use interest rate swaps to hedge the potential adverse impact of rising interest rates in anticipation of issuing fixed rate long-term debt. |
• | Forward treasury locks are used to minimize interest rate risk associated with the anticipated purchase or disposal of fixed maturity securities. A forward treasury lock is a derivative contract without an initial investment where we and the counterparty agree to purchase or sell a specific U.S. Treasury bond at a future date at a pre-determined price. |
• | Interest rate swaps are used to effectively convert certain of our fixed rate securities into floating rate securities which are used to fund our floating rate long-term debt. Under these swap agreements, we receive a variable rate of interest and pay a fixed rate of interest. Additionally, we use interest rate swaps to effectively convert certain fixed rate, long-term debt into floating rate long-term debt. Under these swap agreements, we receive a fixed rate of interest and pay a variable rate of interest. |
• | Foreign currency interest rate swaps have historically been used to hedge the currency risk of certain foreign currency-denominated fixed maturity securities owned for portfolio diversification and to hedge the currency risk associated with certain of the principal and interest payments of the U.S. dollar-denominated debt issued by one of our U.K. subsidiaries. For hedges of fixed maturity securities, we agree to pay, at specified intervals, fixed rate foreign currency-denominated principal and interest payments in exchange for fixed rate payments in the functional currency of the operating segment. For hedges of debt issued, we paid, at specified intervals, fixed rate foreign currency-denominated principal and interest payments to the counterparty in exchange for fixed rate U.S. dollar-denominated principal and interest payments. |
• | Foreign currency interest rate swaps previously designated as hedges were used to hedge the currency risk of certain foreign currency-denominated fixed maturity securities owned for portfolio diversification. These derivatives were effective hedges prior to novation to a new counterparty. In conjunction with the novation, these derivatives were de-designated as hedges. We agree to pay, at specified intervals, fixed rate foreign currency-denominated principal and interest payments in exchange for fixed rate payments in the functional currency of the operating segment. We hold offsetting swaps wherein we agree to pay fixed rate principal and interest payments in the functional currency of the operating segment in exchange for fixed rate foreign currency-denominated payments. |
• | Credit default swaps are used as economic hedges against credit risk but do not qualify for hedge accounting. A credit default swap is an agreement in which we agree with another party to pay, at specified intervals, a fixed-rate fee in exchange for insurance against a credit event on a specific investment. If a defined credit event occurs, our counterparty may either pay us a net cash settlement or we may surrender the specific investment to them in exchange for cash equal to the full notional amount of the swap. Credit events typically include events such as bankruptcy, failure to pay, or certain types of debt restructuring. |
• | Interest rate swap is used to effectively convert certain of our floating rate, long-term debt into fixed rate long-term debt. Under this swap agreement, we receive a variable rate of interest and pay a fixed rate of interest. |
Swaps | |||||||||||||||||||||||
Receive Variable/Pay Fixed | Receive Fixed/Pay Fixed | Receive Fixed/Pay Variable | Credit Default | Forwards | Total | ||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Balance at March 31, 2016 | $ | 126.0 | $ | 650.3 | $ | 600.0 | $ | 70.0 | $ | — | $ | 1,446.3 | |||||||||||
Additions | — | — | — | — | — | — | |||||||||||||||||
Terminations | — | 5.8 | — | — | — | 5.8 | |||||||||||||||||
Balance at June 30, 2016 | $ | 126.0 | $ | 644.5 | $ | 600.0 | $ | 70.0 | $ | — | $ | 1,440.5 | |||||||||||
Balance at December 31, 2015 | $ | 150.0 | $ | 650.3 | $ | 600.0 | $ | 70.0 | $ | — | $ | 1,470.3 | |||||||||||
Additions | — | — | — | — | — | — | |||||||||||||||||
Terminations | 24.0 | 5.8 | — | — | — | 29.8 | |||||||||||||||||
Balance at June 30, 2016 | $ | 126.0 | $ | 644.5 | $ | 600.0 | $ | 70.0 | $ | — | $ | 1,440.5 | |||||||||||
Balance at March 31, 2017 | $ | 105.4 | $ | 596.2 | $ | 250.0 | $ | 70.0 | $ | — | $ | 1,021.6 | |||||||||||
Additions | — | — | — | — | 16.0 | 16.0 | |||||||||||||||||
Terminations | 3.4 | 4.5 | — | — | 16.0 | 23.9 | |||||||||||||||||
Balance at June 30, 2017 | $ | 102.0 | $ | 591.7 | $ | 250.0 | $ | 70.0 | $ | — | $ | 1,013.7 | |||||||||||
Balance at December 31, 2016 | $ | 105.5 | $ | 616.5 | $ | 250.0 | $ | 70.0 | $ | 10.0 | $ | 1,052.0 | |||||||||||
Additions | — | — | — | — | 16.0 | 16.0 | |||||||||||||||||
Terminations | 3.5 | 24.8 | — | — | 26.0 | 54.3 | |||||||||||||||||
Balance at June 30, 2017 | $ | 102.0 | $ | 591.7 | $ | 250.0 | $ | 70.0 | $ | — | $ | 1,013.7 |
June 30, 2017 | |||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
(in millions of dollars) | |||||||||||
Designated as Hedging Instruments | |||||||||||
Interest Rate Swaps | Other L-T Investments | $ | — | Other Liabilities | $ | 4.3 | |||||
Foreign Exchange Contracts | Other L-T Investments | 27.0 | Other Liabilities | 16.4 | |||||||
Total | $ | 27.0 | $ | 20.7 | |||||||
Not Designated as Hedging Instruments | |||||||||||
Credit Default Swaps | Other Liabilities | $ | 0.5 | ||||||||
Foreign Exchange Contracts | Other Liabilities | 31.4 | |||||||||
Embedded Derivative in Modified Coinsurance Arrangement | Other Liabilities | 31.9 | |||||||||
Total | $ | 63.8 |
December 31, 2016 | |||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
(in millions of dollars) | |||||||||||
Designated as Hedging Instruments | |||||||||||
Interest Rate Swaps and Forwards | Other L-T Investments | $ | — | Other Liabilities | $ | 6.9 | |||||
Foreign Exchange Contracts | Other L-T Investments | 32.7 | Other Liabilities | 13.4 | |||||||
Total | $ | 32.7 | $ | 20.3 | |||||||
Not Designated as Hedging Instruments | |||||||||||
Credit Default Swaps | Other Liabilities | $ | 0.4 | ||||||||
Interest Rate Swaps | Other Liabilities | 0.7 | |||||||||
Foreign Exchange Contracts | Other Liabilities | 31.4 | |||||||||
Embedded Derivative in Modified Coinsurance Arrangement | Other Liabilities | 46.7 | |||||||||
Total | $ | 79.2 |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(in millions of dollars) | ||||||||||||||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives | ||||||||||||||||
Foreign Exchange Contracts | $ | (4.7 | ) | $ | (0.2 | ) | $ | (9.2 | ) | $ | (24.5 | ) | ||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | ||||||||||||||||
Net Investment Income | ||||||||||||||||
Interest Rate Swaps and Forwards | $ | 14.8 | $ | 13.6 | $ | 29.1 | $ | 26.8 | ||||||||
Foreign Exchange Contracts | (0.2 | ) | (0.4 | ) | (0.5 | ) | (0.5 | ) | ||||||||
Net Realized Investment Gain (Loss) | ||||||||||||||||
Interest Rate Swaps | — | — | — | 3.2 | ||||||||||||
Foreign Exchange Contracts | (0.3 | ) | (0.5 | ) | (1.5 | ) | (0.5 | ) | ||||||||
Interest and Debt Expense | ||||||||||||||||
Interest Rate Swaps | (0.5 | ) | (0.4 | ) | (1.0 | ) | (0.9 | ) | ||||||||
Total | $ | 13.8 | $ | 12.3 | $ | 26.1 | $ | 28.1 |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(in millions of dollars) | ||||||||||||||||
Net Realized Investment Gain (Loss) | ||||||||||||||||
Credit Default Swaps | $ | (0.1 | ) | $ | (0.4 | ) | $ | (0.4 | ) | $ | (0.4 | ) | ||||
Interest Rate Swaps | (0.1 | ) | — | (0.1 | ) | — | ||||||||||
Foreign Exchange Contracts | (0.2 | ) | (0.7 | ) | — | (2.0 | ) | |||||||||
Embedded Derivative in Modified Coinsurance Arrangement | 6.2 | 10.2 | 14.8 | 4.6 | ||||||||||||
Total | $ | 5.8 | $ | 9.1 | $ | 14.3 | $ | 2.2 |
Net Unrealized Gain on Securities | Net Gain on Cash Flow Hedges | Foreign Currency Translation Adjustment | Unrecognized Pension and Postretirement Benefit Costs | Total | |||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||
Balance at March 31, 2017 | $ | 483.0 | $ | 316.8 | $ | (336.9 | ) | $ | (462.5 | ) | $ | 0.4 | |||||||||
Other Comprehensive Income (Loss) Before Reclassifications | 76.6 | (3.4 | ) | 39.8 | (1.4 | ) | 111.6 | ||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | (1.4 | ) | (8.9 | ) | — | 3.2 | (7.1 | ) | |||||||||||||
Net Other Comprehensive Income (Loss) | 75.2 | (12.3 | ) | 39.8 | 1.8 | 104.5 | |||||||||||||||
Balance at June 30, 2017 | $ | 558.2 | $ | 304.5 | $ | (297.1 | ) | $ | (460.7 | ) | $ | 104.9 | |||||||||
Balance at March 31, 2016 | $ | 438.4 | $ | 351.8 | $ | (200.0 | ) | $ | (389.5 | ) | $ | 200.7 | |||||||||
Other Comprehensive Income (Loss) Before Reclassifications | 222.0 | (0.2 | ) | (79.4 | ) | 1.5 | 143.9 | ||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | 0.7 | (8.0 | ) | — | 2.5 | (4.8 | ) | ||||||||||||||
Net Other Comprehensive Income (Loss) | 222.7 | (8.2 | ) | (79.4 | ) | 4.0 | 139.1 | ||||||||||||||
Balance at June 30, 2016 | $ | 661.1 | $ | 343.6 | $ | (279.4 | ) | $ | (385.5 | ) | $ | 339.8 | |||||||||
Balance at December 31, 2016 | $ | 440.6 | $ | 327.5 | $ | (354.0 | ) | $ | (465.1 | ) | $ | (51.0 | ) | ||||||||
Other Comprehensive Income (Loss) Before Reclassifications | 121.3 | (6.1 | ) | 56.9 | (2.0 | ) | 170.1 | ||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | (3.7 | ) | (16.9 | ) | — | 6.4 | (14.2 | ) | |||||||||||||
Net Other Comprehensive Income (Loss) | 117.6 | (23.0 | ) | 56.9 | 4.4 | 155.9 | |||||||||||||||
Balance at June 30, 2017 | $ | 558.2 | $ | 304.5 | $ | (297.1 | ) | $ | (460.7 | ) | $ | 104.9 | |||||||||
Balance at December 31, 2015 | $ | 204.3 | $ | 378.0 | $ | (173.6 | ) | $ | (392.6 | ) | $ | 16.1 | |||||||||
Other Comprehensive Income (Loss) Before Reclassifications | 445.8 | (16.1 | ) | (105.8 | ) | 2.0 | 325.9 | ||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | 11.0 | (18.3 | ) | — | 5.1 | (2.2 | ) | ||||||||||||||
Net Other Comprehensive Income (Loss) | 456.8 | (34.4 | ) | (105.8 | ) | 7.1 | 323.7 | ||||||||||||||
Balance at June 30, 2016 | $ | 661.1 | $ | 343.6 | $ | (279.4 | ) | $ | (385.5 | ) | $ | 339.8 |
Change at June 30, 2017 | ||||||||||||||||||||
June 30 | March 31 | December 31 | Three Months | Six Months | ||||||||||||||||
2017 | 2017 | 2016 | Ended | Ended | ||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||
Fixed Maturity Securities | $ | 5,492.2 | $ | 4,925.6 | $ | 4,664.6 | $ | 566.6 | $ | 827.6 | ||||||||||
Other Investments | (4.6 | ) | (17.8 | ) | (22.7 | ) | 13.2 | 18.1 | ||||||||||||
Deferred Acquisition Costs | (45.8 | ) | (40.9 | ) | (38.9 | ) | (4.9 | ) | (6.9 | ) | ||||||||||
Reserves for Future Policy and Contract Benefits | (4,948.2 | ) | (4,467.3 | ) | (4,253.2 | ) | (480.9 | ) | (695.0 | ) | ||||||||||
Reinsurance Recoverable | 360.7 | 335.6 | 321.3 | 25.1 | 39.4 | |||||||||||||||
Income Tax | (296.1 | ) | (252.2 | ) | (230.5 | ) | (43.9 | ) | (65.6 | ) | ||||||||||
Total | $ | 558.2 | $ | 483.0 | $ | 440.6 | $ | 75.2 | $ | 117.6 |
Change at June 30, 2016 | ||||||||||||||||||||
June 30 | March 31 | December 31 | Three Months | Six Months | ||||||||||||||||
2016 | 2016 | 2015 | Ended | Ended | ||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||
Fixed Maturity Securities | $ | 6,299.5 | $ | 4,894.5 | $ | 3,695.7 | $ | 1,405.0 | $ | 2,603.8 | ||||||||||
Other Investments | (21.3 | ) | (18.1 | ) | (33.7 | ) | (3.2 | ) | 12.4 | |||||||||||
Deferred Acquisition Costs | (52.5 | ) | (42.0 | ) | (29.4 | ) | (10.5 | ) | (23.1 | ) | ||||||||||
Reserves for Future Policy and Contract Benefits | (5,578.6 | ) | (4,466.5 | ) | (3,578.4 | ) | (1,112.1 | ) | (2,000.2 | ) | ||||||||||
Reinsurance Recoverable | 366.0 | 310.2 | 263.2 | 55.8 | 102.8 | |||||||||||||||
Income Tax | (352.0 | ) | (239.7 | ) | (113.1 | ) | (112.3 | ) | (238.9 | ) | ||||||||||
Total | $ | 661.1 | $ | 438.4 | $ | 204.3 | $ | 222.7 | $ | 456.8 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||
(in millions of dollars) | |||||||||||||||||
Net Unrealized Gain on Securities | |||||||||||||||||
Net Realized Investment Gain (Loss) | |||||||||||||||||
Net Gain on Sales of Securities and Other Invested Assets | $ | 2.2 | $ | 8.1 | $ | 5.6 | $ | 13.7 | |||||||||
Other-Than-Temporary Impairment Loss | — | (9.4 | ) | — | (30.5 | ) | |||||||||||
2.2 | (1.3 | ) | 5.6 | (16.8 | ) | ||||||||||||
Income Tax Expense (Benefit) | 0.8 | (0.6 | ) | 1.9 | (5.8 | ) | |||||||||||
Total | $ | 1.4 | $ | (0.7 | ) | $ | 3.7 | $ | (11.0 | ) | |||||||
Net Gain on Cash Flow Hedges | |||||||||||||||||
Net Investment Income | |||||||||||||||||
Gain on Interest Rate Swaps and Forwards | $ | 14.8 | $ | 13.6 | $ | 29.1 | $ | 26.8 | |||||||||
Loss on Foreign Exchange Contracts | (0.2 | ) | (0.4 | ) | (0.5 | ) | (0.5 | ) | |||||||||
Net Realized Investment Gain (Loss) | |||||||||||||||||
Gain on Interest Rate Swaps | — | — | — | 3.2 | |||||||||||||
Loss on Foreign Exchange Contracts | (0.3 | ) | (0.5 | ) | (1.5 | ) | (0.5 | ) | |||||||||
Interest and Debt Expense | |||||||||||||||||
Loss on Interest Rate Swaps | (0.5 | ) | (0.4 | ) | (1.0 | ) | (0.9 | ) | |||||||||
13.8 | 12.3 | 26.1 | 28.1 | ||||||||||||||
Income Tax Expense | 4.9 | 4.3 | 9.2 | 9.8 | |||||||||||||
Total | $ | 8.9 | $ | 8.0 | $ | 16.9 | $ | 18.3 | |||||||||
Unrecognized Pension and Postretirement Benefit Costs | |||||||||||||||||
Other Expenses | |||||||||||||||||
Amortization of Net Actuarial Loss | $ | (5.0 | ) | $ | (4.0 | ) | $ | (10.1 | ) | $ | (8.1 | ) | |||||
Amortization of Prior Service Credit | 0.1 | 0.1 | 0.3 | 0.2 | |||||||||||||
(4.9 | ) | (3.9 | ) | (9.8 | ) | (7.9 | ) | ||||||||||
Income Tax Benefit | (1.7 | ) | (1.4 | ) | (3.4 | ) | (2.8 | ) | |||||||||
Total | $ | (3.2 | ) | $ | (2.5 | ) | $ | (6.4 | ) | $ | (5.1 | ) |
2017 | 2016 | ||||||
(in millions of dollars) | |||||||
Balance at January 1 | $ | 23,249.5 | $ | 23,796.1 | |||
Less Reinsurance Recoverable | 2,163.6 | 2,064.6 | |||||
Net Balance at January 1 | 21,085.9 | 21,731.5 | |||||
Incurred Related to | |||||||
Current Year | 2,772.2 | 2,732.7 | |||||
Prior Years | |||||||
Interest | 571.0 | 599.3 | |||||
All Other Incurred | (170.6 | ) | (191.9 | ) | |||
Foreign Currency | 97.1 | (202.2 | ) | ||||
Total Incurred | 3,269.7 | 2,937.9 | |||||
Paid Related to | |||||||
Current Year | (816.2 | ) | (767.1 | ) | |||
Prior Years | (2,475.8 | ) | (2,490.2 | ) | |||
Total Paid | (3,292.0 | ) | (3,257.3 | ) | |||
Net Balance at June 30 | 21,063.6 | 21,412.1 | |||||
Plus Reinsurance Recoverable | 2,146.6 | 2,066.3 | |||||
Balance at June 30 | $ | 23,210.2 | $ | 23,478.4 |
June 30 | |||||||
2017 | 2016 | ||||||
(in millions of dollars) | |||||||
Policy and Contract Benefits | $ | 1,552.5 | $ | 1,486.4 | |||
Reserves for Future Policy and Contract Benefits | 45,136.1 | 45,463.4 | |||||
Total | 46,688.6 | 46,949.8 | |||||
Less: | |||||||
Life Reserves for Future Policy and Contract Benefits | 8,136.5 | 7,970.5 | |||||
Accident and Health Active Life Reserves | 10,393.7 | 9,922.3 | |||||
Adjustment Related to Unrealized Investment Gains and Losses | 4,948.2 | 5,578.6 | |||||
Liability for Unpaid Claims and Claim Adjustment Expenses | $ | 23,210.2 | $ | 23,478.4 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in millions of dollars) | |||||||||||||||
Premium Income | |||||||||||||||
Unum US | |||||||||||||||
Group Disability | |||||||||||||||
Group Long-term Disability | $ | 437.7 | $ | 432.9 | $ | 872.1 | $ | 863.5 | |||||||
Group Short-term Disability | 158.3 | 156.2 | 316.2 | 313.7 | |||||||||||
Group Life and Accidental Death & Dismemberment | |||||||||||||||
Group Life | 363.9 | 348.7 | 731.7 | 700.2 | |||||||||||
Accidental Death & Dismemberment | 36.7 | 34.9 | 73.3 | 69.5 | |||||||||||
Supplemental and Voluntary | |||||||||||||||
Individual Disability | 106.7 | 124.9 | 213.7 | 248.8 | |||||||||||
Voluntary Benefits | 213.2 | 201.8 | 428.4 | 405.0 | |||||||||||
Dental and Vision | 41.2 | — | 82.7 | — | |||||||||||
1,357.7 | 1,299.4 | 2,718.1 | 2,600.7 | ||||||||||||
Unum UK | |||||||||||||||
Group Long-term Disability | 83.8 | 95.5 | 164.6 | 188.6 | |||||||||||
Group Life | 25.4 | 27.3 | 50.2 | 56.0 | |||||||||||
Supplemental | 17.6 | 18.0 | 33.3 | 35.5 | |||||||||||
126.8 | 140.8 | 248.1 | 280.1 | ||||||||||||
Colonial Life | |||||||||||||||
Accident, Sickness, and Disability | 220.1 | 205.9 | 439.2 | 411.5 | |||||||||||
Life | 75.0 | 67.7 | 149.2 | 135.4 | |||||||||||
Cancer and Critical Illness | 81.2 | 77.8 | 162.2 | 155.7 | |||||||||||
376.3 | 351.4 | 750.6 | 702.6 | ||||||||||||
Closed Block | |||||||||||||||
Individual Disability | 118.5 | 130.5 | 239.8 | 264.1 | |||||||||||
Long-term Care | 160.9 | 158.9 | 324.0 | 320.6 | |||||||||||
All Other | 2.0 | 0.6 | 4.5 | 1.0 | |||||||||||
281.4 | 290.0 | 568.3 | 585.7 | ||||||||||||
Total Premium Income | $ | 2,142.2 | $ | 2,081.6 | $ | 4,285.1 | $ | 4,169.1 |
Unum US | Unum UK | Colonial Life | Closed Block | Corporate | Total | ||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Three Months Ended June 30, 2017 | |||||||||||||||||||||||
Premium Income | $ | 1,357.7 | $ | 126.8 | $ | 376.3 | $ | 281.4 | $ | — | $ | 2,142.2 | |||||||||||
Net Investment Income | 205.6 | 33.2 | 36.7 | 340.0 | 5.0 | 620.5 | |||||||||||||||||
Other Income | 30.1 | — | 0.2 | 20.2 | 0.7 | 51.2 | |||||||||||||||||
Operating Revenue | $ | 1,593.4 | $ | 160.0 | $ | 413.2 | $ | 641.6 | $ | 5.7 | $ | 2,813.9 | |||||||||||
Operating Income (Loss) | $ | 247.8 | $ | 28.9 | $ | 81.8 | $ | 32.6 | $ | (37.6 | ) | $ | 353.5 | ||||||||||
Three Months Ended June 30, 2016 | |||||||||||||||||||||||
Premium Income | $ | 1,299.4 | $ | 140.8 | $ | 351.4 | $ | 290.0 | $ | — | $ | 2,081.6 | |||||||||||
Net Investment Income | 207.7 | 34.0 | 35.6 | 341.1 | 4.9 | 623.3 | |||||||||||||||||
Other Income | 27.9 | 0.2 | 0.3 | 21.4 | 1.3 | 51.1 | |||||||||||||||||
Operating Revenue | $ | 1,535.0 | $ | 175.0 | $ | 387.3 | $ | 652.5 | $ | 6.2 | $ | 2,756.0 | |||||||||||
Operating Income (Loss) | $ | 227.2 | $ | 36.9 | $ | 77.9 | $ | 32.6 | $ | (39.7 | ) | $ | 334.9 |
Unum US | Unum UK | Colonial Life | Closed Block | Corporate | Total | ||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Six Months Ended June 30, 2017 | |||||||||||||||||||||||
Premium Income | $ | 2,718.1 | $ | 248.1 | $ | 750.6 | $ | 568.3 | $ | — | $ | 4,285.1 | |||||||||||
Net Investment Income | 408.1 | 59.8 | 71.8 | 675.3 | 7.9 | 1,222.9 | |||||||||||||||||
Other Income | 58.8 | — | 0.5 | 41.0 | 1.1 | 101.4 | |||||||||||||||||
Operating Revenue | $ | 3,185.0 | $ | 307.9 | $ | 822.9 | $ | 1,284.6 | $ | 9.0 | $ | 5,609.4 | |||||||||||
Operating Income (Loss) | $ | 486.9 | $ | 55.5 | $ | 164.2 | $ | 64.2 | $ | (77.4 | ) | $ | 693.4 | ||||||||||
Six Months Ended June 30, 2016 | |||||||||||||||||||||||
Premium Income | $ | 2,600.7 | $ | 280.1 | $ | 702.6 | $ | 585.7 | $ | — | $ | 4,169.1 | |||||||||||
Net Investment Income | 415.1 | 60.8 | 69.6 | 674.5 | 9.7 | 1,229.7 | |||||||||||||||||
Other Income | 56.9 | 0.2 | 0.6 | 43.8 | 1.6 | 103.1 | |||||||||||||||||
Operating Revenue | $ | 3,072.7 | $ | 341.1 | $ | 772.8 | $ | 1,304.0 | $ | 11.3 | $ | 5,501.9 | |||||||||||
Operating Income (Loss) | $ | 443.1 | $ | 70.5 | $ | 155.3 | $ | 66.3 | $ | (75.6 | ) | $ | 659.6 |
June 30 | December 31 | ||||||
2017 | 2016 | ||||||
(in millions of dollars) | |||||||
Assets | |||||||
Unum US | $ | 18,232.8 | $ | 18,036.6 | |||
Unum UK | 3,358.1 | 3,101.4 | |||||
Colonial Life | 4,039.8 | 3,923.2 | |||||
Closed Block | 34,466.6 | 33,734.3 | |||||
Corporate | 3,284.3 | 3,146.0 | |||||
Total Assets | $ | 63,381.6 | $ | 61,941.5 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in millions of dollars) | |||||||||||||||
Total Revenue | $ | 2,822.0 | $ | 2,761.3 | $ | 5,628.5 | $ | 5,486.7 | |||||||
Excluding: | |||||||||||||||
Net Realized Investment Gain (Loss) | 8.1 | 5.3 | 19.1 | (15.2 | ) | ||||||||||
Operating Revenue | $ | 2,813.9 | $ | 2,756.0 | $ | 5,609.4 | $ | 5,501.9 | |||||||
Income Before Income Tax | $ | 361.6 | $ | 340.2 | $ | 691.9 | $ | 644.4 | |||||||
Excluding: | |||||||||||||||
Net Realized Investment Gain (Loss) | 8.1 | 5.3 | 19.1 | (15.2 | ) | ||||||||||
Loss from Guaranty Fund Assessment | — | — | (20.6 | ) | — | ||||||||||
Operating Income | $ | 353.5 | $ | 334.9 | $ | 693.4 | $ | 659.6 |
Three Months Ended June 30 | |||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||
U.S. Plans | U.K. Plan | OPEB | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Service Cost | $ | 1.9 | $ | 1.8 | $ | — | $ | — | $ | — | $ | — | |||||||||||
Interest Cost | 21.1 | 21.3 | 1.5 | 1.8 | 1.5 | 1.8 | |||||||||||||||||
Expected Return on Plan Assets | (25.7 | ) | (25.7 | ) | (1.8 | ) | (2.7 | ) | (0.1 | ) | (0.1 | ) | |||||||||||
Amortization of: | |||||||||||||||||||||||
Net Actuarial Loss | 4.9 | 4.0 | 0.1 | — | — | — | |||||||||||||||||
Prior Service Credit | — | — | — | — | (0.1 | ) | (0.1 | ) | |||||||||||||||
Plan Amendment | — | — | — | — | — | 0.9 | |||||||||||||||||
Total | $ | 2.2 | $ | 1.4 | $ | (0.2 | ) | $ | (0.9 | ) | $ | 1.3 | $ | 2.5 |
Six Months Ended June 30 | |||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||
U.S. Plans | U.K. Plan | OPEB | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Service Cost | $ | 3.9 | $ | 3.5 | $ | — | $ | — | $ | — | $ | — | |||||||||||
Interest Cost | 42.2 | 42.6 | 3.0 | 3.7 | 3.0 | 3.6 | |||||||||||||||||
Expected Return on Plan Assets | (51.5 | ) | (51.4 | ) | (3.8 | ) | (5.4 | ) | (0.3 | ) | (0.3 | ) | |||||||||||
Amortization of: | |||||||||||||||||||||||
Net Actuarial Loss | 9.8 | 8.1 | 0.3 | — | — | — | |||||||||||||||||
Prior Service Credit | (0.1 | ) | (0.1 | ) | — | — | (0.2 | ) | (0.1 | ) | |||||||||||||
Plan Amendment | — | — | — | — | — | 0.9 | |||||||||||||||||
Total | $ | 4.3 | $ | 2.7 | $ | (0.5 | ) | $ | (1.7 | ) | $ | 2.5 | $ | 4.1 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in millions of dollars, except share data) | |||||||||||||||
Numerator | |||||||||||||||
Net Income | $ | 245.1 | $ | 236.8 | $ | 475.0 | $ | 447.4 | |||||||
Denominator (000s) | |||||||||||||||
Weighted Average Common Shares - Basic | 227,454.4 | 236,892.8 | 228,437.0 | 238,254.3 | |||||||||||
Dilution for Assumed Exercises of Stock Options and Nonvested Stock Awards | 724.3 | 426.0 | 836.8 | 368.5 | |||||||||||
Weighted Average Common Shares - Assuming Dilution | 228,178.7 | 237,318.8 | 229,273.8 | 238,622.8 | |||||||||||
Net Income Per Common Share | |||||||||||||||
Basic | $ | 1.08 | $ | 1.00 | $ | 2.08 | $ | 1.88 | |||||||
Assuming Dilution | $ | 1.07 | $ | 1.00 | $ | 2.07 | $ | 1.87 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in millions) | |||||||||||||||
Shares Repurchased | 2.2 | 2.8 | 4.3 | 6.5 | |||||||||||
Cost of Shares Repurchased (1) | $ | 100.1 | $ | 100.1 | $ | 200.1 | $ | 200.1 |
Three Months Ended June 30 | |||||||||||||||
2017 | 2016 | ||||||||||||||
(in millions) | per share * | (in millions) | per share * | ||||||||||||
Net Income | $ | 245.1 | $ | 1.07 | $ | 236.8 | $ | 1.00 | |||||||
Excluding: | |||||||||||||||
Net Realized Investment Gain (net of tax expense of $3.4; $1.5) | 4.7 | 0.02 | 3.8 | 0.02 | |||||||||||
After-tax Operating Income | $ | 240.4 | $ | 1.05 | $ | 233.0 | $ | 0.98 | |||||||
Six Months Ended June 30 | |||||||||||||||
2017 | 2016 | ||||||||||||||
(in millions) | per share * | (in millions) | per share * | ||||||||||||
Net Income | $ | 475.0 | $ | 2.07 | $ | 447.4 | $ | 1.87 | |||||||
Excluding: | |||||||||||||||
Net Realized Investment Gain (Loss) (net of tax expense (benefit) of $7.2; $(5.4)) | 11.9 | 0.05 | (9.8 | ) | (0.05 | ) | |||||||||
Loss from Guaranty Fund Assessment (net of tax benefit of $7.2; $-) | (13.4 | ) | (0.06 | ) | — | — | |||||||||
After-tax Operating Income | $ | 476.5 | $ | 2.08 | $ | 457.2 | $ | 1.92 | |||||||
* Assuming Dilution |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in millions of dollars) | |||||||||||||||
Total Revenue | $ | 2,822.0 | $ | 2,761.3 | $ | 5,628.5 | $ | 5,486.7 | |||||||
Excluding: | |||||||||||||||
Net Realized Investment Gain (Loss) | 8.1 | 5.3 | 19.1 | (15.2 | ) | ||||||||||
Operating Revenue | $ | 2,813.9 | $ | 2,756.0 | $ | 5,609.4 | $ | 5,501.9 | |||||||
Income Before Income Tax | $ | 361.6 | $ | 340.2 | $ | 691.9 | $ | 644.4 | |||||||
Excluding: | |||||||||||||||
Net Realized Investment Gain (Loss) | 8.1 | 5.3 | 19.1 | (15.2 | ) | ||||||||||
Loss from Guaranty Fund Assessment | — | — | (20.6 | ) | — | ||||||||||
Operating Income | $ | 353.5 | $ | 334.9 | $ | 693.4 | $ | 659.6 |
(in millions of dollars) | |||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||
2017 | % Change | 2016 | 2017 | % Change | 2016 | ||||||||||||||||
Revenue | |||||||||||||||||||||
Premium Income | $ | 2,142.2 | 2.9 | % | $ | 2,081.6 | $ | 4,285.1 | 2.8 | % | $ | 4,169.1 | |||||||||
Net Investment Income | 620.5 | (0.4 | ) | 623.3 | 1,222.9 | (0.6 | ) | 1,229.7 | |||||||||||||
Net Realized Investment Gain (Loss) | 8.1 | 52.8 | 5.3 | 19.1 | N.M. | (15.2 | ) | ||||||||||||||
Other Income | 51.2 | 0.2 | 51.1 | 101.4 | (1.6 | ) | 103.1 | ||||||||||||||
Total Revenue | 2,822.0 | 2.2 | 2,761.3 | 5,628.5 | 2.6 | 5,486.7 | |||||||||||||||
Benefits and Expenses | |||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 1,752.0 | 1.1 | 1,733.5 | 3,501.0 | 1.1 | 3,463.3 | |||||||||||||||
Commissions | 261.3 | 2.5 | 255.0 | 531.5 | 3.2 | 514.9 | |||||||||||||||
Interest and Debt Expense | 39.9 | (5.9 | ) | 42.4 | 79.7 | (1.6 | ) | 81.0 | |||||||||||||
Deferral of Acquisition Costs | (153.2 | ) | 4.4 | (146.7 | ) | (315.3 | ) | 5.4 | (299.2 | ) | |||||||||||
Amortization of Deferred Acquisition Costs | 138.3 | 9.6 | 126.2 | 279.8 | 8.3 | 258.4 | |||||||||||||||
Compensation Expense | 215.9 | 6.4 | 202.9 | 422.9 | 3.0 | 410.5 | |||||||||||||||
Other Expenses | 206.2 | (0.8 | ) | 207.8 | 437.0 | 5.7 | 413.4 | ||||||||||||||
Total Benefits and Expenses | 2,460.4 | 1.6 | 2,421.1 | 4,936.6 | 1.9 | 4,842.3 | |||||||||||||||
Income Before Income Tax | 361.6 | 6.3 | 340.2 | 691.9 | 7.4 | 644.4 | |||||||||||||||
Income Tax | 116.5 | 12.7 | 103.4 | 216.9 | 10.1 | 197.0 | |||||||||||||||
Net Income | $ | 245.1 | 3.5 | $ | 236.8 | $ | 475.0 | 6.2 | $ | 447.4 | |||||||||||
N.M. = not a meaningful percentage |
(in millions) | |||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||
2017 | % Change | 2016 | 2017 | % Change | 2016 | ||||||||||||||||
Unum US | $ | 208.0 | 10.7 | % | $ | 187.9 | $ | 471.5 | 10.9 | % | $ | 425.0 | |||||||||
Unum UK | £ | 19.8 | 23.8 | % | £ | 16.0 | £ | 35.7 | 24.0 | % | £ | 28.8 | |||||||||
Colonial Life | $ | 116.6 | 7.5 | % | $ | 108.5 | $ | 213.0 | 7.4 | % | $ | 198.4 |
(in millions of dollars, except ratios) | |||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||
2017 | % Change | 2016 | 2017 | % Change | 2016 | ||||||||||||||||
Operating Revenue | |||||||||||||||||||||
Premium Income | $ | 1,357.7 | 4.5 | % | $ | 1,299.4 | $ | 2,718.1 | 4.5 | % | $ | 2,600.7 | |||||||||
Net Investment Income | 205.6 | (1.0 | ) | 207.7 | 408.1 | (1.7 | ) | 415.1 | |||||||||||||
Other Income | 30.1 | 7.9 | 27.9 | 58.8 | 3.3 | 56.9 | |||||||||||||||
Total | 1,593.4 | 3.8 | 1,535.0 | 3,185.0 | 3.7 | 3,072.7 | |||||||||||||||
Benefits and Expenses | |||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 915.7 | 1.9 | 898.4 | 1,839.1 | 2.1 | 1,800.6 | |||||||||||||||
Commissions | 144.7 | (0.5 | ) | 145.4 | 297.9 | 1.2 | 294.4 | ||||||||||||||
Deferral of Acquisition Costs | (78.5 | ) | (0.3 | ) | (78.7 | ) | (165.8 | ) | 1.3 | (163.6 | ) | ||||||||||
Amortization of Deferred Acquisition Costs | 79.6 | 11.8 | 71.2 | 163.1 | 9.0 | 149.7 | |||||||||||||||
Other Expenses | 284.1 | 4.6 | 271.5 | 563.8 | 2.8 | 548.5 | |||||||||||||||
Total | 1,345.6 | 2.9 | 1,307.8 | 2,698.1 | 2.6 | 2,629.6 | |||||||||||||||
Operating Income | $ | 247.8 | 9.1 | $ | 227.2 | $ | 486.9 | 9.9 | $ | 443.1 | |||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||
Benefit Ratio | 67.4 | % | 69.1 | % | 67.7 | % | 69.2 | % | |||||||||||||
Other Expense Ratio | 20.9 | % | 20.9 | % | 20.7 | % | 21.1 | % | |||||||||||||
Operating Income Ratio | 18.3 | % | 17.5 | % | 17.9 | % | 17.0 | % |
(in millions of dollars, except ratios) | |||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||
2017 | % Change | 2016 | 2017 | % Change | 2016 | ||||||||||||||||
Operating Revenue | |||||||||||||||||||||
Premium Income | |||||||||||||||||||||
Group Long-term Disability | $ | 437.7 | 1.1 | % | $ | 432.9 | $ | 872.1 | 1.0 | % | $ | 863.5 | |||||||||
Group Short-term Disability | 158.3 | 1.3 | 156.2 | 316.2 | 0.8 | 313.7 | |||||||||||||||
Total Premium Income | 596.0 | 1.2 | 589.1 | 1,188.3 | 0.9 | 1,177.2 | |||||||||||||||
Net Investment Income | 118.1 | (1.4 | ) | 119.8 | 233.6 | (2.9 | ) | 240.6 | |||||||||||||
Other Income | 25.6 | 13.8 | 22.5 | 49.6 | 9.3 | 45.4 | |||||||||||||||
Total | 739.7 | 1.1 | 731.4 | 1,471.5 | 0.6 | 1,463.2 | |||||||||||||||
Benefits and Expenses | |||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 455.9 | (3.2 | ) | 471.2 | 909.7 | (3.8 | ) | 945.5 | |||||||||||||
Commissions | 44.9 | — | 44.9 | 91.3 | 1.3 | 90.1 | |||||||||||||||
Deferral of Acquisition Costs | (11.4 | ) | 0.9 | (11.3 | ) | (23.4 | ) | (1.3 | ) | (23.7 | ) | ||||||||||
Amortization of Deferred Acquisition Costs | 9.9 | 11.2 | 8.9 | 19.9 | 10.6 | 18.0 | |||||||||||||||
Other Expenses | 148.0 | 3.3 | 143.3 | 292.9 | 1.5 | 288.5 | |||||||||||||||
Total | 647.3 | (1.5 | ) | 657.0 | 1,290.4 | (2.1 | ) | 1,318.4 | |||||||||||||
Operating Income | $ | 92.4 | 24.2 | $ | 74.4 | $ | 181.1 | 25.1 | $ | 144.8 | |||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||
Benefit Ratio | 76.5 | % | 80.0 | % | 76.6 | % | 80.3 | % | |||||||||||||
Other Expense Ratio | 24.8 | % | 24.3 | % | 24.6 | % | 24.5 | % | |||||||||||||
Operating Income Ratio | 15.5 | % | 12.6 | % | 15.2 | % | 12.3 | % | |||||||||||||
Persistency: | |||||||||||||||||||||
Group Long-term Disability | 89.3 | % | 90.3 | % | |||||||||||||||||
Group Short-term Disability | 85.7 | % | 87.0 | % |
(in millions of dollars, except ratios) | |||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||
2017 | % Change | 2016 | 2017 | % Change | 2016 | ||||||||||||||||
Operating Revenue | |||||||||||||||||||||
Premium Income | |||||||||||||||||||||
Group Life | $ | 363.9 | 4.4 | % | $ | 348.7 | $ | 731.7 | 4.5 | % | $ | 700.2 | |||||||||
Accidental Death & Dismemberment | 36.7 | 5.2 | 34.9 | 73.3 | 5.5 | 69.5 | |||||||||||||||
Total Premium Income | 400.6 | 4.4 | 383.6 | 805.0 | 4.6 | 769.7 | |||||||||||||||
Net Investment Income | 27.8 | (3.8 | ) | 28.9 | 55.4 | (3.5 | ) | 57.4 | |||||||||||||
Other Income | 1.2 | — | 1.2 | 2.2 | — | 2.2 | |||||||||||||||
Total | 429.6 | 3.8 | 413.7 | 862.6 | 4.0 | 829.3 | |||||||||||||||
Benefits and Expenses | |||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 282.8 | 3.1 | 274.4 | 573.5 | 4.2 | 550.3 | |||||||||||||||
Commissions | 32.1 | 3.5 | 31.0 | 64.7 | 2.2 | 63.3 | |||||||||||||||
Deferral of Acquisition Costs | (8.8 | ) | 1.1 | (8.7 | ) | (18.1 | ) | (2.2 | ) | (18.5 | ) | ||||||||||
Amortization of Deferred Acquisition Costs | 8.0 | 11.1 | 7.2 | 16.0 | 8.8 | 14.7 | |||||||||||||||
Other Expenses | 54.6 | 3.2 | 52.9 | 109.6 | 2.2 | 107.2 | |||||||||||||||
Total | 368.7 | 3.3 | 356.8 | 745.7 | 4.0 | 717.0 | |||||||||||||||
Operating Income | $ | 60.9 | 7.0 | $ | 56.9 | $ | 116.9 | 4.1 | $ | 112.3 | |||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||
Benefit Ratio | 70.6 | % | 71.5 | % | 71.2 | % | 71.5 | % | |||||||||||||
Other Expense Ratio | 13.6 | % | 13.8 | % | 13.6 | % | 13.9 | % | |||||||||||||
Operating Income Ratio | 15.2 | % | 14.8 | % | 14.5 | % | 14.6 | % | |||||||||||||
Persistency: | |||||||||||||||||||||
Group Life | 87.7 | % | 90.0 | % | |||||||||||||||||
Accidental Death & Dismemberment | 87.3 | % | 89.4 | % |
(in millions of dollars, except ratios) | |||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||
2017 | % Change | 2016 | 2017 | % Change | 2016 | ||||||||||||||||
Operating Revenue | |||||||||||||||||||||
Premium Income | |||||||||||||||||||||
Individual Disability | $ | 106.7 | (14.6 | )% | $ | 124.9 | $ | 213.7 | (14.1 | )% | $ | 248.8 | |||||||||
Voluntary Benefits | 213.2 | 5.6 | 201.8 | 428.4 | 5.8 | 405.0 | |||||||||||||||
Dental and Vision | 41.2 | — | — | 82.7 | — | — | |||||||||||||||
Total Premium Income | 361.1 | 10.5 | 326.7 | 724.8 | 10.9 | 653.8 | |||||||||||||||
Net Investment Income | 59.7 | 1.2 | 59.0 | 119.1 | 1.7 | 117.1 | |||||||||||||||
Other Income | 3.3 | (21.4 | ) | 4.2 | 7.0 | (24.7 | ) | 9.3 | |||||||||||||
Total | 424.1 | 8.8 | 389.9 | 850.9 | 9.1 | 780.2 | |||||||||||||||
Benefits and Expenses | |||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 177.0 | 15.8 | 152.8 | 355.9 | 16.8 | 304.8 | |||||||||||||||
Commissions | 67.7 | (2.6 | ) | 69.5 | 141.9 | 0.6 | 141.0 | ||||||||||||||
Deferral of Acquisition Costs | (58.3 | ) | (0.7 | ) | (58.7 | ) | (124.3 | ) | 2.4 | (121.4 | ) | ||||||||||
Amortization of Deferred Acquisition Costs | 61.7 | 12.0 | 55.1 | 127.2 | 8.7 | 117.0 | |||||||||||||||
Other Expenses | 81.5 | 8.2 | 75.3 | 161.3 | 5.6 | 152.8 | |||||||||||||||
Total | 329.6 | 12.1 | 294.0 | 662.0 | 11.4 | 594.2 | |||||||||||||||
Operating Income | $ | 94.5 | (1.5 | ) | $ | 95.9 | $ | 188.9 | 1.6 | $ | 186.0 | ||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||
Benefit Ratios: | |||||||||||||||||||||
Individual Disability | 51.2 | % | 53.8 | % | 52.9 | % | 52.4 | % | |||||||||||||
Voluntary Benefits | 43.4 | % | 42.4 | % | 42.8 | % | 43.1 | % | |||||||||||||
Dental and Vision | 72.3 | % | — | 71.9 | % | — | |||||||||||||||
Other Expense Ratio | 22.6 | % | 23.0 | % | 22.3 | % | 23.4 | % | |||||||||||||
Operating Income Ratio | 26.2 | % | 29.4 | % | 26.1 | % | 28.4 | % | |||||||||||||
Persistency: | |||||||||||||||||||||
Individual Disability | 91.0 | % | 91.3 | % | |||||||||||||||||
Voluntary Benefits | 76.2 | % | 76.7 | % | |||||||||||||||||
Dental and Vision | 82.0 | % | — |
(in millions of dollars) | |||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||
2017 | % Change | 2016 | 2017 | % Change | 2016 | ||||||||||||||||
Sales by Product | |||||||||||||||||||||
Group Disability and Group Life and AD&D | |||||||||||||||||||||
Group Long-term Disability | $ | 47.5 | (1.7 | )% | $ | 48.3 | $ | 83.5 | (2.7 | )% | $ | 85.8 | |||||||||
Group Short-term Disability | 27.4 | 10.0 | 24.9 | 44.3 | 7.8 | 41.1 | |||||||||||||||
Group Life and AD&D | 59.5 | 7.6 | 55.3 | 96.7 | 0.6 | 96.1 | |||||||||||||||
Subtotal | 134.4 | 4.6 | 128.5 | 224.5 | 0.7 | 223.0 | |||||||||||||||
Supplemental and Voluntary | |||||||||||||||||||||
Individual Disability | 13.6 | (6.8 | ) | 14.6 | 29.8 | (4.8 | ) | 31.3 | |||||||||||||
Voluntary Benefits | 49.6 | 10.7 | 44.8 | 196.9 | 15.3 | 170.7 | |||||||||||||||
Dental and Vision | 10.4 | — | — | 20.3 | — | — | |||||||||||||||
Subtotal | 73.6 | 23.9 | 59.4 | 247.0 | 22.3 | 202.0 | |||||||||||||||
Total Sales | $ | 208.0 | 10.7 | $ | 187.9 | $ | 471.5 | 10.9 | $ | 425.0 | |||||||||||
Sales by Market Sector | |||||||||||||||||||||
Group Disability and Group Life and AD&D | |||||||||||||||||||||
Core Market (< 2,000 employees) | $ | 90.3 | 5.7 | % | $ | 85.4 | $ | 146.6 | 2.1 | % | $ | 143.6 | |||||||||
Large Case Market | 44.1 | 2.3 | 43.1 | 77.9 | (1.9 | ) | 79.4 | ||||||||||||||
Subtotal | 134.4 | 4.6 | 128.5 | 224.5 | 0.7 | 223.0 | |||||||||||||||
Supplemental and Voluntary | 73.6 | 23.9 | 59.4 | 247.0 | 22.3 | 202.0 | |||||||||||||||
Total Sales | $ | 208.0 | 10.7 | $ | 187.9 | $ | 471.5 | 10.9 | $ | 425.0 |
(in millions of dollars, except ratios) | |||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||
2017 | % Change | 2016 | 2017 | % Change | 2016 | ||||||||||||||||
Operating Revenue | |||||||||||||||||||||
Premium Income | |||||||||||||||||||||
Group Long-term Disability | $ | 83.8 | (12.3 | )% | $ | 95.5 | $ | 164.6 | (12.7 | )% | $ | 188.6 | |||||||||
Group Life | 25.4 | (7.0 | ) | 27.3 | 50.2 | (10.4 | ) | 56.0 | |||||||||||||
Supplemental | 17.6 | (2.2 | ) | 18.0 | 33.3 | (6.2 | ) | 35.5 | |||||||||||||
Total Premium Income | 126.8 | (9.9 | ) | 140.8 | 248.1 | (11.4 | ) | 280.1 | |||||||||||||
Net Investment Income | 33.2 | (2.4 | ) | 34.0 | 59.8 | (1.6 | ) | 60.8 | |||||||||||||
Other Income | — | (100.0 | ) | 0.2 | — | (100.0 | ) | 0.2 | |||||||||||||
Total | 160.0 | (8.6 | ) | 175.0 | 307.9 | (9.7 | ) | 341.1 | |||||||||||||
Benefits and Expenses | |||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 95.8 | (3.0 | ) | 98.8 | 182.5 | (5.7 | ) | 193.5 | |||||||||||||
Commissions | 9.0 | (7.2 | ) | 9.7 | 17.8 | (4.8 | ) | 18.7 | |||||||||||||
Deferral of Acquisition Costs | (2.0 | ) | — | (2.0 | ) | (3.8 | ) | (5.0 | ) | (4.0 | ) | ||||||||||
Amortization of Deferred Acquisition Costs | 2.3 | (4.2 | ) | 2.4 | 4.5 | (11.8 | ) | 5.1 | |||||||||||||
Other Expenses | 26.0 | (11.0 | ) | 29.2 | 51.4 | (10.3 | ) | 57.3 | |||||||||||||
Total | 131.1 | (5.1 | ) | 138.1 | 252.4 | (6.7 | ) | 270.6 | |||||||||||||
Operating Income | $ | 28.9 | (21.7 | ) | $ | 36.9 | $ | 55.5 | (21.3 | ) | $ | 70.5 |
(in millions of pounds, except ratios) | |||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||
2017 | % Change | 2016 | 2017 | % Change | 2016 | ||||||||||||||||
Operating Revenue | |||||||||||||||||||||
Premium Income | |||||||||||||||||||||
Group Long-term Disability | £ | 65.5 | (1.7 | )% | £ | 66.6 | £ | 130.7 | (0.7 | )% | £ | 131.6 | |||||||||
Group Life | 19.9 | 5.3 | 18.9 | 39.9 | 2.3 | 39.0 | |||||||||||||||
Supplemental | 13.7 | 8.7 | 12.6 | 26.4 | 6.5 | 24.8 | |||||||||||||||
Total Premium Income | 99.1 | 1.0 | 98.1 | 197.0 | 0.8 | 195.4 | |||||||||||||||
Net Investment Income | 26.0 | 9.7 | 23.7 | 47.4 | 11.8 | 42.4 | |||||||||||||||
Other Income | — | (100.0 | ) | 0.1 | — | (100.0 | ) | 0.1 | |||||||||||||
Total | 125.1 | 2.6 | 121.9 | 244.4 | 2.7 | 237.9 | |||||||||||||||
Benefits and Expenses | |||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 74.9 | 8.9 | 68.8 | 144.8 | 7.3 | 134.9 | |||||||||||||||
Commissions | 7.1 | 4.4 | 6.8 | 14.2 | 9.2 | 13.0 | |||||||||||||||
Deferral of Acquisition Costs | (1.6 | ) | 14.3 | (1.4 | ) | (3.0 | ) | 7.1 | (2.8 | ) | |||||||||||
Amortization of Deferred Acquisition Costs | 1.8 | 5.9 | 1.7 | 3.5 | (2.8 | ) | 3.6 | ||||||||||||||
Other Expenses | 20.3 | — | 20.3 | 40.9 | 2.3 | 40.0 | |||||||||||||||
Total | 102.5 | 6.5 | 96.2 | 200.4 | 6.2 | 188.7 | |||||||||||||||
Operating Income | £ | 22.6 | (12.1 | ) | £ | 25.7 | £ | 44.0 | (10.6 | ) | £ | 49.2 | |||||||||
Weighted Average Pound/Dollar Exchange Rate | 1.279 | 1.436 | 1.261 | 1.433 | |||||||||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||
Benefit Ratio | 75.6 | % | 70.1 | % | 73.5 | % | 69.0 | % | |||||||||||||
Other Expense Ratio | 20.5 | % | 20.7 | % | 20.8 | % | 20.5 | % | |||||||||||||
Operating Income Ratio | 22.8 | % | 26.2 | % | 22.3 | % | 25.2 | % | |||||||||||||
Persistency: | |||||||||||||||||||||
Group Long-term Disability | 86.4 | % | 87.8 | % | |||||||||||||||||
Group Life | 80.8 | % | 78.8 | % | |||||||||||||||||
Supplemental | 91.3 | % | 89.4 | % |
(in millions of dollars and pounds) | |||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||
2017 | % Change | 2016 | 2017 | % Change | 2016 | ||||||||||||||||
Sales by Product | |||||||||||||||||||||
Group Long-term Disability | $ | 11.5 | (21.2 | )% | $ | 14.6 | $ | 25.0 | 0.8 | % | $ | 24.8 | |||||||||
Group Life | 6.0 | 11.1 | 5.4 | 9.9 | (2.0 | ) | 10.1 | ||||||||||||||
Supplemental | 7.7 | 156.7 | 3.0 | 10.0 | 53.8 | 6.5 | |||||||||||||||
Total Sales | $ | 25.2 | 9.6 | $ | 23.0 | $ | 44.9 | 8.5 | $ | 41.4 | |||||||||||
Sales by Market Sector | |||||||||||||||||||||
Group Long-term Disability and Group Life | |||||||||||||||||||||
Core Market (< 500 employees) | $ | 9.1 | (19.5 | )% | $ | 11.3 | $ | 15.5 | (21.3 | )% | $ | 19.7 | |||||||||
Large Case Market | 8.4 | (3.4 | ) | 8.7 | 19.4 | 27.6 | 15.2 | ||||||||||||||
Subtotal | 17.5 | (12.5 | ) | 20.0 | 34.9 | — | 34.9 | ||||||||||||||
Supplemental | 7.7 | 156.7 | 3.0 | 10.0 | 53.8 | 6.5 | |||||||||||||||
Total Sales | $ | 25.2 | 9.6 | $ | 23.0 | $ | 44.9 | 8.5 | $ | 41.4 | |||||||||||
Sales by Product | |||||||||||||||||||||
Group Long-term Disability | £ | 9.0 | (11.8 | )% | £ | 10.2 | £ | 19.9 | 15.0 | % | £ | 17.3 | |||||||||
Group Life | 4.7 | 23.7 | 3.8 | 7.8 | 11.4 | 7.0 | |||||||||||||||
Supplemental | 6.1 | N.M. | 2.0 | 8.0 | 77.8 | 4.5 | |||||||||||||||
Total Sales | £ | 19.8 | 23.8 | £ | 16.0 | £ | 35.7 | 24.0 | £ | 28.8 | |||||||||||
Sales by Market Sector | |||||||||||||||||||||
Group Long-term Disability and Group Life | |||||||||||||||||||||
Core Market (< 500 employees) | £ | 7.0 | (10.3 | )% | £ | 7.8 | £ | 12.2 | (10.9 | )% | £ | 13.7 | |||||||||
Large Case Market | 6.7 | 8.1 | 6.2 | 15.5 | 46.2 | 10.6 | |||||||||||||||
Subtotal | 13.7 | (2.1 | ) | 14.0 | 27.7 | 14.0 | 24.3 | ||||||||||||||
Supplemental | 6.1 | N.M. | 2.0 | 8.0 | 77.8 | 4.5 | |||||||||||||||
Total Sales | £ | 19.8 | 23.8 | £ | 16.0 | £ | 35.7 | 24.0 | £ | 28.8 | |||||||||||
N.M. = not a meaningful percentage |
(in millions of dollars, except ratios) | |||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||
2017 | % Change | 2016 | 2017 | % Change | 2016 | ||||||||||||||||
Operating Revenue | |||||||||||||||||||||
Premium Income | |||||||||||||||||||||
Accident, Sickness, and Disability | $ | 220.1 | 6.9 | % | $ | 205.9 | $ | 439.2 | 6.7 | % | $ | 411.5 | |||||||||
Life | 75.0 | 10.8 | 67.7 | 149.2 | 10.2 | 135.4 | |||||||||||||||
Cancer and Critical Illness | 81.2 | 4.4 | 77.8 | 162.2 | 4.2 | 155.7 | |||||||||||||||
Total Premium Income | 376.3 | 7.1 | 351.4 | 750.6 | 6.8 | 702.6 | |||||||||||||||
Net Investment Income | 36.7 | 3.1 | 35.6 | 71.8 | 3.2 | 69.6 | |||||||||||||||
Other Income | 0.2 | (33.3 | ) | 0.3 | 0.5 | (16.7 | ) | 0.6 | |||||||||||||
Total | 413.2 | 6.7 | 387.3 | 822.9 | 6.5 | 772.8 | |||||||||||||||
Benefits and Expenses | |||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 192.9 | 7.3 | 179.7 | 383.1 | 6.8 | 358.6 | |||||||||||||||
Commissions | 85.2 | 10.9 | 76.8 | 170.4 | 10.2 | 154.6 | |||||||||||||||
Deferral of Acquisition Costs | (72.7 | ) | 10.2 | (66.0 | ) | (145.7 | ) | 10.7 | (131.6 | ) | |||||||||||
Amortization of Deferred Acquisition Costs | 56.4 | 7.2 | 52.6 | 112.2 | 8.3 | 103.6 | |||||||||||||||
Other Expenses | 69.6 | 5.0 | 66.3 | 138.7 | 4.8 | 132.3 | |||||||||||||||
Total | 331.4 | 7.1 | 309.4 | 658.7 | 6.7 | 617.5 | |||||||||||||||
Operating Income | $ | 81.8 | 5.0 | $ | 77.9 | $ | 164.2 | 5.7 | $ | 155.3 | |||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||
Benefit Ratio | 51.3 | % | 51.1 | % | 51.0 | % | 51.0 | % | |||||||||||||
Other Expense Ratio | 18.5 | % | 18.9 | % | 18.5 | % | 18.8 | % | |||||||||||||
Operating Income Ratio | 21.7 | % | 22.2 | % | 21.9 | % | 22.1 | % | |||||||||||||
Persistency: | |||||||||||||||||||||
Accident, Sickness, and Disability | 74.9 | % | 74.7 | % | |||||||||||||||||
Life | 84.5 | % | 84.5 | % | |||||||||||||||||
Cancer and Critical Illness | 82.2 | % | 81.8 | % |
(in millions of dollars) | |||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||
2017 | % Change | 2016 | 2017 | % Change | 2016 | ||||||||||||||||
Sales by Product | |||||||||||||||||||||
Accident, Sickness, and Disability | $ | 73.6 | 5.0 | % | $ | 70.1 | $ | 135.1 | 5.2 | % | $ | 128.4 | |||||||||
Life | 24.9 | 14.7 | 21.7 | 45.8 | 18.3 | 38.7 | |||||||||||||||
Cancer and Critical Illness | 18.1 | 8.4 | 16.7 | 32.1 | 2.6 | 31.3 | |||||||||||||||
Total Sales | $ | 116.6 | 7.5 | $ | 108.5 | $ | 213.0 | 7.4 | $ | 198.4 | |||||||||||
Sales by Market Sector | |||||||||||||||||||||
Commercial | |||||||||||||||||||||
Core Market (< 1,000 employees) | $ | 80.6 | 13.0 | % | $ | 71.3 | $ | 150.8 | 13.1 | % | $ | 133.3 | |||||||||
Large Case Market | 11.5 | (5.0 | ) | 12.1 | 19.7 | (11.7 | ) | 22.3 | |||||||||||||
Subtotal | 92.1 | 10.4 | 83.4 | 170.5 | 9.6 | 155.6 | |||||||||||||||
Public Sector | 24.5 | (2.4 | ) | 25.1 | 42.5 | (0.7 | ) | 42.8 | |||||||||||||
Total Sales | $ | 116.6 | 7.5 | $ | 108.5 | $ | 213.0 | 7.4 | $ | 198.4 |
(in millions of dollars, except ratios) | |||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||
2017 | % Change | 2016 | 2017 | % Change | 2016 | ||||||||||||||||
Operating Revenue | |||||||||||||||||||||
Premium Income | |||||||||||||||||||||
Individual Disability | $ | 118.5 | (9.2 | )% | $ | 130.5 | $ | 239.8 | (9.2 | )% | $ | 264.1 | |||||||||
Long-term Care | 160.9 | 1.3 | 158.9 | 324.0 | 1.1 | 320.6 | |||||||||||||||
All Other | 2.0 | N.M. | 0.6 | 4.5 | N.M. | 1.0 | |||||||||||||||
Total Premium Income | 281.4 | (3.0 | ) | 290.0 | 568.3 | (3.0 | ) | 585.7 | |||||||||||||
Net Investment Income | 340.0 | (0.3 | ) | 341.1 | 675.3 | 0.1 | 674.5 | ||||||||||||||
Other Income | 20.2 | (5.6 | ) | 21.4 | 41.0 | (6.4 | ) | 43.8 | |||||||||||||
Total | 641.6 | (1.7 | ) | 652.5 | 1,284.6 | (1.5 | ) | 1,304.0 | |||||||||||||
Benefits and Expenses | |||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 547.6 | (1.6 | ) | 556.6 | 1,096.3 | (1.3 | ) | 1,110.6 | |||||||||||||
Commissions | 22.4 | (3.0 | ) | 23.1 | 45.4 | (3.8 | ) | 47.2 | |||||||||||||
Interest and Debt Expense | 1.7 | — | 1.7 | 3.4 | — | 3.4 | |||||||||||||||
Other Expenses | 37.3 | (3.1 | ) | 38.5 | 75.3 | (1.6 | ) | 76.5 | |||||||||||||
Total | 609.0 | (1.8 | ) | 619.9 | 1,220.4 | (1.4 | ) | 1,237.7 | |||||||||||||
Operating Income | $ | 32.6 | — | $ | 32.6 | $ | 64.2 | (3.2 | ) | $ | 66.3 | ||||||||||
Interest Adjusted Loss Ratios: | |||||||||||||||||||||
Individual Disability | 82.3 | % | 84.3 | % | 83.0 | % | 84.1 | % | |||||||||||||
Long-term Care | 89.4 | % | 92.6 | % | 89.0 | % | 90.7 | % | |||||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||
Other Expense Ratio | 13.3 | % | 13.3 | % | 13.3 | % | 13.1 | % | |||||||||||||
Operating Income Ratio | 11.6 | % | 11.2 | % | 11.3 | % | 11.3 | % | |||||||||||||
Persistency: | |||||||||||||||||||||
Individual Disability | 90.0 | % | 90.9 | % | |||||||||||||||||
Long-term Care | 95.3 | % | 94.8 | % | |||||||||||||||||
N.M. = not a meaningful percentage |
(in millions of dollars) | |||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||
2017 | % Change | 2016 | 2017 | % Change | 2016 | ||||||||||||||||
Operating Revenue | |||||||||||||||||||||
Net Investment Income | $ | 5.0 | 2.0 | % | $ | 4.9 | $ | 7.9 | (18.6 | )% | $ | 9.7 | |||||||||
Other Income | 0.7 | (46.2 | ) | 1.3 | 1.1 | (31.3 | ) | 1.6 | |||||||||||||
Total | 5.7 | (8.1 | ) | 6.2 | 9.0 | (20.4 | ) | 11.3 | |||||||||||||
Interest and Other Expenses | 43.3 | (5.7 | ) | 45.9 | 107.0 | 23.1 | 86.9 | ||||||||||||||
Operating Loss Including Loss from Guaranty Fund Assessment | (37.6 | ) | 5.3 | (39.7 | ) | (98.0 | ) | (29.6 | ) | (75.6 | ) | ||||||||||
Loss from Guaranty Fund Assessment | — | — | — | 20.6 | 100.0 | — | |||||||||||||||
Operating Loss | $ | (37.6 | ) | 5.3 | $ | (39.7 | ) | $ | (77.4 | ) | (2.4 | ) | $ | (75.6 | ) |
(in millions of dollars) | ||||||||||||||||||||||||
Classification | Fair Value | Net Unrealized Gain | Fair Value of Fixed Maturity Securities with Gross Unrealized Loss | Gross Unrealized Loss | Fair Value of Fixed Maturity Securities with Gross Unrealized Gain | Gross Unrealized Gain | ||||||||||||||||||
Basic Industry | $ | 2,590.4 | $ | 265.8 | $ | 238.9 | $ | 5.2 | $ | 2,351.5 | $ | 271.0 | ||||||||||||
Capital Goods | 4,316.8 | 527.8 | 199.0 | 4.5 | 4,117.8 | 532.3 | ||||||||||||||||||
Communications | 3,130.8 | 427.9 | 182.6 | 23.0 | 2,948.2 | 450.9 | ||||||||||||||||||
Consumer Cyclical | 1,373.4 | 144.6 | 55.8 | 2.2 | 1,317.6 | 146.8 | ||||||||||||||||||
Consumer Non-Cyclical | 6,799.0 | 766.8 | 554.4 | 21.4 | 6,244.6 | 788.2 | ||||||||||||||||||
Energy | 4,968.2 | 560.3 | 495.1 | 38.4 | 4,473.1 | 598.7 | ||||||||||||||||||
Financial Institutions | 3,352.9 | 326.6 | 200.5 | 2.2 | 3,152.4 | 328.8 | ||||||||||||||||||
Mortgage/Asset-Backed | 2,102.5 | 117.6 | 459.1 | 6.2 | 1,643.4 | 123.8 | ||||||||||||||||||
Sovereigns | 934.0 | 193.6 | — | — | 934.0 | 193.6 | ||||||||||||||||||
Technology | 1,717.3 | 121.1 | 69.4 | 1.1 | 1,647.9 | 122.2 | ||||||||||||||||||
Transportation | 1,932.5 | 268.4 | 130.6 | 1.7 | 1,801.9 | 270.1 | ||||||||||||||||||
U.S. Government Agencies and Municipalities | 3,688.4 | 535.7 | 225.3 | 4.5 | 3,463.1 | 540.2 | ||||||||||||||||||
Public Utilities | 8,212.4 | 1,236.0 | 252.1 | 9.3 | 7,960.3 | 1,245.3 | ||||||||||||||||||
Total | $ | 45,118.6 | $ | 5,492.2 | $ | 3,062.8 | $ | 119.7 | $ | 42,055.8 | $ | 5,611.9 |
(in millions of dollars) | |||||||||||||||||||
2017 | 2016 | ||||||||||||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | |||||||||||||||
Fair Value < 100% >= 70% of Amortized Cost | |||||||||||||||||||
<= 90 days | $ | 4.5 | $ | 4.0 | $ | 119.2 | $ | 2.2 | $ | 0.8 | |||||||||
> 90 <= 180 days | 1.3 | 82.1 | 12.5 | 0.3 | 4.8 | ||||||||||||||
> 180 <= 270 days | 31.7 | 9.5 | 0.1 | 4.0 | 0.4 | ||||||||||||||
> 270 days <= 1 year | 5.9 | 0.1 | 8.9 | — | 2.7 | ||||||||||||||
> 1 year <= 2 years | 4.1 | 10.0 | 9.5 | 8.1 | 25.5 | ||||||||||||||
> 2 years <= 3 years | 3.6 | 1.7 | 0.5 | — | — | ||||||||||||||
> 3 years | 0.1 | 0.7 | 1.1 | 1.1 | 2.2 | ||||||||||||||
Total | $ | 51.2 | $ | 108.1 | $ | 151.8 | $ | 15.7 | $ | 36.4 |
(in millions of dollars) | |||||||||||||||||||
2017 | 2016 | ||||||||||||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | |||||||||||||||
Fair Value < 100% >= 70% of Amortized Cost | |||||||||||||||||||
<= 90 days | $ | 1.1 | $ | 2.9 | $ | 8.2 | $ | 0.4 | $ | 2.4 | |||||||||
> 90 <= 180 days | 3.5 | 2.3 | 1.4 | 0.3 | 3.5 | ||||||||||||||
> 180 <= 270 days | 1.9 | — | 0.5 | 1.6 | 1.9 | ||||||||||||||
> 270 days <= 1 year | — | 0.4 | 4.1 | 0.9 | 14.5 | ||||||||||||||
> 1 year <= 2 years | 11.1 | 20.1 | 19.7 | 30.6 | 71.3 | ||||||||||||||
> 2 years <= 3 years | 22.3 | 13.2 | 16.0 | 11.4 | — | ||||||||||||||
> 3 years | 10.2 | 14.6 | 16.9 | 10.2 | 19.9 | ||||||||||||||
Sub-total | 50.1 | 53.5 | 66.8 | 55.4 | 113.5 | ||||||||||||||
Fair Value < 70% >= 40% of Amortized Cost | |||||||||||||||||||
>270 days <= 1 year | — | — | — | — | 8.9 | ||||||||||||||
> 1 year <= 2 years | 6.6 | — | — | 6.4 | — | ||||||||||||||
> 2 years <= 3 years | 2.8 | — | — | — | — | ||||||||||||||
> 3 years | 9.0 | — | — | 6.6 | 6.8 | ||||||||||||||
Sub-total | 18.4 | — | — | 13.0 | 15.7 | ||||||||||||||
Total | $ | 68.5 | $ | 53.5 | $ | 66.8 | $ | 68.4 | $ | 129.2 |
(in millions of dollars) | |||||||
Six Months Ended June 30 | |||||||
2017 | 2016 | ||||||
Net Cash Provided by Operating Activities | $ | 642.0 | $ | 561.4 | |||
Net Cash Used by Investing Activities | (276.4 | ) | (852.5 | ) | |||
Net Cash Provided (Used) by Financing Activities | (349.0 | ) | 272.0 | ||||
Net Increase (Decrease) in Cash and Bank Deposits | $ | 16.6 | $ | (19.1 | ) |
AM Best | Fitch | Moody's | S&P | ||||
Outlook | Stable | Stable | Stable | Stable | |||
Issuer Credit Ratings | bbb | BBB | Baa2 | BBB | |||
Financial Strength Ratings | |||||||
Provident Life and Accident Insurance Company | A | A | A2 | A | |||
Provident Life and Casualty Insurance Company | A | A | NR | NR | |||
Unum Life Insurance Company of America | A | A | A2 | A | |||
First Unum Life Insurance Company | A | A | A2 | A | |||
Colonial Life & Accident Insurance Company | A | A | A2 | A | |||
The Paul Revere Life Insurance Company | A | A | A2 | A | |||
Starmount Life Insurance Company | A- | NR | NR | NR | |||
Unum Insurance Company | A- | A | A2 | NR | |||
Unum Limited | NR | NR | NR | A- |
(a) Total Number of Shares Purchased | (b) Average Price Paid per Share (1) | (c) Total Number of Shares Purchased as Part of Publicly Announced Programs (2) | (d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs (2) | ||||||||||
April 1 - April 30, 2017 | 75,000 | $ | 46.50 | 75,000 | $ | 392,184,568 | |||||||
May 1 - May 31, 2017 | 1,470,000 | 45.93 | 1,470,000 | 741,907,488 | |||||||||
June 1 - June 30, 2017 | 636,000 | 45.62 | 636,000 | 712,889,993 | |||||||||
Total | 2,181,000 | 2,181,000 |
(1) | The average price paid per share excludes the cost of commissions. |
(2) | In May 2017, our board of directors authorized the repurchase of up to $750 million of Unum Group's common stock through November 25, 2018. This new authorization replaced the May 2016 authorization of $750 million that was scheduled to expire on November 26, 2017. |
Exhibit 10.1 | Unum Group Stock Incentive Plan of 2017 (incorporated by reference to Exhibit A of Unum Group's definitive proxy statement on Schedule 14A filed on April 13, 2017). |
Exhibit 10.2 | Form of Restricted Stock Unit Agreement with Non-Employee Director for awards under the Unum Group Stock Incentive Plan of 2017 (incorporated by reference to Exhibit 10.2 of Unum Group's Form 8-K filed on May 25, 2017). |
Exhibit 10.3 | Form of Restricted Stock Unit Agreement with Employee for awards under the Unum Group Stock Incentive Plan of 2017 (incorporated by reference to Exhibit 10.3 of Unum Group's Form 8-K filed on May 25, 2017). |
Exhibit 10.4 | Form of Performance Share Unit Agreement with Employee for awards under the Unum Group Stock Incentive Plan of 2017 (incorporated by reference to Exhibit 10.4 of Unum Group’s Form 8-K filed on May 25, 2017). |
Exhibit 31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
Exhibit 31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
Exhibit 32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
Exhibit 32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
Exhibit 101 | The following financial statements from Unum Group's Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, filed on July 28, 2017, formatted in XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Stockholders' Equity, (v) Consolidated Statements of Cash Flows, (vi) the Notes to Consolidated Financial Statements. |
Unum Group | ||
(Registrant) | ||
Date: July 28, 2017 | By: | /s/ John F. McGarry |
John F. McGarry | ||
Executive Vice President and Chief Financial Officer | ||
Date: July 28, 2017 | By: | /s/ Daniel J. Waxenberg |
Daniel J. Waxenberg | ||
Senior Vice President, Chief Accounting Officer |
Date: July 28, 2017 | /s/ Richard P. McKenney |
Richard P. McKenney | |
President and Chief Executive Officer |
Date: July 28, 2017 | /s/ John F. McGarry |
John F. McGarry | |
Executive Vice President and Chief Financial Officer |
Date: July 28, 2017 | /s/ Richard P. McKenney |
Richard P. McKenney | |
President and Chief Executive Officer |
Date: July 28, 2017 | /s/ John F. McGarry |
John F. McGarry | |
Executive Vice President and Chief Financial Officer |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Jul. 26, 2017 |
|
Document Document and Entity Information [Abstract] | ||
Entity Registrant Name | Unum Group | |
Trading Symbol | UNM | |
Entity Central Index Key | 0000005513 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 225,682,585 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Investments | ||
Fixed Maturity Securities, Amortized Cost | $ 39,626.4 | $ 39,552.7 |
Stockholders' Equity | ||
Common Stock, Par | $ 0.10 | $ 0.10 |
Common Stock, Authorized | 725,000,000 | 725,000,000 |
Common Stock, Issued | 304,082,323 | 303,552,934 |
Treasury Stock, Shares at Cost | 77,980,192 | 73,729,992 |
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Revenue | ||||
Premium Income | $ 2,142.2 | $ 2,081.6 | $ 4,285.1 | $ 4,169.1 |
Net Investment Income | 620.5 | 623.3 | 1,222.9 | 1,229.7 |
Realized Investment Gain (Loss) | ||||
Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | 0.0 | (9.4) | 0.0 | (30.5) |
Net Realized Investment Gain, Excluding Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | 8.1 | 14.7 | 19.1 | 15.3 |
Net Realized Investment Gain (Loss) | 8.1 | 5.3 | 19.1 | (15.2) |
Other Income | 51.2 | 51.1 | 101.4 | 103.1 |
Total Revenue | 2,822.0 | 2,761.3 | 5,628.5 | 5,486.7 |
Benefits and Expenses | ||||
Benefits and Change in Reserves for Future Benefits | 1,752.0 | 1,733.5 | 3,501.0 | 3,463.3 |
Commissions | 261.3 | 255.0 | 531.5 | 514.9 |
Interest and Debt Expense | 39.9 | 42.4 | 79.7 | 81.0 |
Deferral of Acquisition Costs | (153.2) | (146.7) | (315.3) | (299.2) |
Amortization of Deferred Acquisition Costs | 138.3 | 126.2 | 279.8 | 258.4 |
Compensation Expense | 215.9 | 202.9 | 422.9 | 410.5 |
Other Expenses | 206.2 | 207.8 | 437.0 | 413.4 |
Total Benefits and Expenses | 2,460.4 | 2,421.1 | 4,936.6 | 4,842.3 |
Income Before Income Tax | 361.6 | 340.2 | 691.9 | 644.4 |
Income Tax | ||||
Current | 105.8 | 107.7 | 162.4 | 158.7 |
Deferred | 10.7 | (4.3) | 54.5 | 38.3 |
Total Income Tax | 116.5 | 103.4 | 216.9 | 197.0 |
Net Income | $ 245.1 | $ 236.8 | $ 475.0 | $ 447.4 |
Net Income Per Common Share | ||||
Basic | $ 1.08 | $ 1.00 | $ 2.08 | $ 1.88 |
Assuming Dilution | $ 1.07 | $ 1.00 | $ 2.07 | $ 1.87 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||||
Change in Net Unrealized Gain on Securities Before Adjustment, Tax Expense | $ 206.5 | $ 479.9 | $ 295.5 | $ 894.2 |
Change in Adjustment to Deferred Acquisition Costs and Reserves for Future Policy and Contract Benefits, Net of Reinsurance, Tax Benefit | 162.6 | (367.6) | 229.9 | (655.3) |
Change in Net Gain on Cash Flow Hedges, Tax Benefit | 6.3 | (4.4) | 12.3 | (18.0) |
Change in Foreign Currency Translation Adjustment, Tax Benefit | 0.0 | 0.0 | 0.0 | 0.0 |
Change in Unrecognized Pension and Postretirement Benefit Costs, Tax Expense | $ 1.3 | $ 2.0 | $ 2.8 | $ 3.6 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Retained Earnings | ||
Dividends to Stockholders, per common share | $ 0.4 | $ 0.370 |
Basis of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements of Unum Group and its subsidiaries (the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes included in our annual report on Form 10-K for the year ended December 31, 2016. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Interim results are not necessarily indicative of full year performance. |
Accounting Developments |
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New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Developments | Accounting Developments Accounting Updates Adopted in 2017:
Accounting Updates Outstanding:
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Accounting Updates Adopted in 2017 | Accounting Updates Adopted in 2017:
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Accounting Updates Outstanding | Accounting Updates Outstanding:
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Fair Values of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Financial Instruments | Presented as follows are the carrying amounts and fair values of financial instruments. The carrying values of financial instruments such as short-term investments, cash and bank deposits, accounts and premiums receivable, accrued investment income, and securities lending agreements approximate fair value due to the short-term nature of the instruments. As such, these financial instruments are not included in the following chart.
The methods and assumptions used to estimate fair values of financial instruments are discussed as follows. Fair Value Measurements for Financial Instruments Not Carried at Fair Value Mortgage Loans: Fair values are estimated using discounted cash flow analyses and interest rates currently being offered for similar loans to borrowers with similar credit ratings and maturities. Loans with similar characteristics are aggregated for purposes of the calculations. These financial instruments are assigned a Level 2 within the fair value hierarchy. Policy Loans: Fair values for policy loans, net of reinsurance ceded, are estimated using discounted cash flow analyses and interest rates currently being offered to policyholders with similar policies. Carrying amounts for ceded policy loans, which equal $3,150.4 million and $3,206.1 million as of June 30, 2017 and December 31, 2016, respectively, approximate fair value and are reported on a gross basis in our consolidated balance sheets. A change in interest rates for ceded policy loans will not impact our financial position because the benefits and risks are fully ceded to reinsuring counterparties. These financial instruments are assigned a Level 3 within the fair value hierarchy. Miscellaneous Long-term Investments: Carrying amounts for tax credit partnerships equal the unamortized balance of our contractual commitments and approximate fair value. Fair values for private equity partnerships are primarily derived from net asset values provided by the general partner in the partnerships' financial statements. Our private equity partnerships represent funds that are primarily invested in bank loans, the financial services industry, general private equity, railcar leasing, and mezzanine debt. Distributions received from the funds arise from income generated by the underlying investments as well as the liquidation of the underlying investments. As of June 30, 2017, we estimate that the underlying assets of the funds will be liquidated over the next one to ten years. These financial instruments are assigned a Level 3 within the fair value hierarchy. Our shares of FHLB common stock are carried at cost, which approximates fair value. These financial instruments are considered restricted investments and are assigned a Level 2 within the fair value hierarchy. Policyholders' Funds: Policyholders' funds are comprised primarily of deferred annuity products and supplementary contracts without life contingencies and represent customer deposits plus interest credited at contract rates. Carrying amounts approximate fair value. These financial instruments are assigned a Level 3 within the fair value hierarchy. Fair values for insurance contracts other than investment contracts are not required to be disclosed. However, the fair values of liabilities under all insurance contracts are taken into consideration in our overall management of interest rate risk, which seeks to minimize exposure to changing interest rates through the matching of investment maturities with amounts due under insurance contracts. Long-term Debt: Fair values for long-term debt are obtained from independent pricing services or discounted cash flow analyses based on current incremental borrowing rates for similar types of borrowing arrangements. Debt instruments which are valued by pricing services using active trades for which there was current market activity in that specific debt instrument have fair values of $1,937.8 million and $709.8 million as of June 30, 2017 and December 31, 2016, respectively, and are assigned a Level 1 within the fair value hierarchy. Debt instruments which are valued by pricing services that generally use observable inputs for securities or comparable securities in active markets in their valuation techniques have fair values of $1,351.0 million and $2,466.0 million as of June 30, 2017 and December 31, 2016, respectively, and are assigned a Level 2. FHLB Funding Agreements: Funding agreements with the FHLB represent cash advances used for the purpose of investing in fixed maturity securities. Carrying amounts approximate fair value and are assigned a Level 2 within the fair value hierarchy. Unfunded Commitments to Investment Partnerships: Unfunded equity commitments represent amounts that we have committed to fund certain investment partnerships. These commitments are legally binding, subject to the partnerships meeting specified conditions. Carrying amounts approximate fair value and are assigned a Level 2 within the fair value hierarchy. Fair Value Measurements for Financial Instruments Carried at Fair Value We report fixed maturity securities, derivative financial instruments, and unrestricted equity securities at fair value in our consolidated balance sheets. The degree of judgment utilized in measuring the fair value of financial instruments generally correlates to the level of pricing observability. Financial instruments with readily available active quoted prices or for which fair value can be measured from actively quoted prices in active markets generally have more pricing observability and less judgment utilized in measuring fair value. An active market for a financial instrument is a market in which transactions for an asset or a similar asset occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value and should be used to measure fair value whenever available. Conversely, financial instruments rarely traded or not quoted have less observability and are measured at fair value using valuation techniques that require more judgment. Pricing observability is generally impacted by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction, and overall market conditions. Valuation techniques used for assets and liabilities accounted for at fair value are generally categorized into three types. The market approach uses prices and other relevant information from market transactions involving identical or comparable assets or liabilities. The income approach converts future amounts, such as cash flows or earnings, to a single present amount, or a discounted amount. The cost approach is based upon the amount that currently would be required to replace the service capacity of an asset, or the current replacement cost. We use valuation techniques that are appropriate in the circumstances and for which sufficient data are available that can be obtained without undue cost and effort. In some cases, a single valuation technique will be appropriate (for example, when valuing an asset or liability using quoted prices in an active market for identical assets or liabilities). In other cases, multiple valuation techniques will be appropriate. If we use multiple valuation techniques to measure fair value, we evaluate and weigh the results, as appropriate, considering the reasonableness of the range indicated by those results. A fair value measurement is the point within that range that is most representative of fair value in the circumstances. The selection of the valuation method(s) to apply considers the definition of an exit price and depends on the nature of the asset or liability being valued. For assets and liabilities accounted for at fair value, we generally use valuation techniques consistent with the market approach, and to a lesser extent, the income approach. We believe the market approach provides more observable data than the income approach, considering the type of investments we hold. Our fair value measurements could differ significantly based on the valuation technique and available inputs. When using a pricing service, we obtain the vendor's pricing documentation to ensure we understand their methodologies. We periodically review and approve the selection of our pricing vendors to ensure we are in agreement with their current methodologies. When markets are less active, brokers may rely more on models with inputs based on the information available only to the broker. Our internal investment management professionals, which include portfolio managers and analysts, monitor securities priced by brokers and evaluate their prices for reasonableness based on benchmarking to available primary and secondary market information. In weighing a broker quote as an input to fair value, we place less reliance on quotes that do not reflect the result of market transactions. We also consider the nature of the quote, particularly whether the quote is a binding offer. If prices in an inactive market do not reflect current prices for the same or similar assets, adjustments may be necessary to arrive at fair value. When relevant market data is unavailable, which may be the case during periods of market uncertainty, the income approach can, in suitable circumstances, provide a more appropriate fair value. During 2017, we have applied valuation approaches and techniques on a consistent basis to similar assets and liabilities and consistent with those approaches and techniques used at year end 2016. We use observable and unobservable inputs in measuring the fair value of our fixed maturity and equity securities. For securities categorized as Level 1, fair values equal active Trade Reporting and Compliance Engine (TRACE) pricing or unadjusted broker market maker prices. For securities categorized as Level 2 or Level 3, inputs that may be used in valuing each class of securities at any given time period are presented as follows. Actual inputs used to determine fair values will vary for each reporting period depending on the availability of inputs which may, at times, be affected by the lack of market liquidity.
The management of our investment portfolio includes establishing pricing policy and reviewing the reasonableness of sources and inputs used in developing pricing. We review all prices obtained to ensure they are consistent with a variety of observable market inputs and to verify the validity of a security's price. In the event we receive a vendor's market price that does not appear reasonable based on our market analysis, we may challenge the price and request further information about the assumptions and methodologies used by the vendor to price the security. We may change the vendor price based on a better data source such as an actual trade. We also review all price changes from the prior month which fall outside a predetermined corridor. The overall valuation process for determining fair values may include adjustments to valuations obtained from our pricing sources when they do not represent a valid exit price. These adjustments may be made when, in our judgment and considering our knowledge of the financial conditions and industry in which the issuer operates, certain features of the financial instrument require that an adjustment be made to the value originally obtained from our pricing sources. These features may include the complexity of the financial instrument, the market in which the financial instrument is traded, counterparty credit risk, credit structure, concentration, or liquidity. Additionally, an adjustment to the price derived from a model typically reflects our judgment of the inputs that other participants in the market for the financial instrument being measured at fair value would consider in pricing that same financial instrument. In the event an asset is sold, we test the validity of the fair value determined by our valuation techniques by comparing the selling price to the fair value determined for the asset in the immediately preceding month end reporting period. The parameters and inputs used to validate a price on a security may be adjusted for assumptions about risk and current market conditions on a quarter to quarter basis, as certain features may be more significant drivers of valuation at the time of pricing. Changes to inputs in valuations are not changes to valuation methodologies; rather, the inputs are modified to reflect direct or indirect impacts on asset classes from changes in market conditions. Fair values for derivatives other than embedded derivatives in modified coinsurance arrangements are based on market quotes or pricing models and represent the net amount of cash we would have paid or received if the contracts had been settled or closed as of the last day of the period. We analyze credit default swap spreads relative to the average credit spread embedded within the LIBOR-setting syndicate in determining the effect of credit risk on our derivatives' fair values. If net counterparty credit risk for a derivative asset is determined to be material and is not adequately reflected in the LIBOR-based fair value obtained from our pricing sources, we adjust the valuations obtained from our pricing sources. For purposes of valuing net counterparty risk, we measure the fair value of a group of financial assets and financial liabilities on the basis of the price that would be received to sell a net long position or transfer a net short position for a particular risk exposure in an orderly transaction between market participants at the measurement date under current market conditions. In regard to our own credit risk component, we adjust the valuation of derivative liabilities wherein the counterparty is exposed to our credit risk when the LIBOR-based valuation of our derivatives obtained from pricing sources does not effectively include an adequate credit component for our own credit risk. Fair values for our embedded derivative in a modified coinsurance arrangement are estimated using internal pricing models and represent the hypothetical value of the duration mismatch of assets and liabilities, interest rate risk, and third party credit risk embedded in the modified coinsurance arrangement. Certain of our investments do not have readily determinable market prices and/or observable inputs or may at times be affected by the lack of market liquidity. For these securities, we use internally prepared valuations combining matrix pricing with vendor purchased software programs, including valuations based on estimates of future profitability, to estimate the fair value. Additionally, we may obtain prices from independent third-party brokers to aid in establishing valuations for certain of these securities. Key assumptions used by us to determine fair value for these securities include risk free interest rates, risk premiums, performance of underlying collateral (if any), and other factors involving significant assumptions which may or may not reflect those of an active market. At June 30, 2017, approximately 19.7 percent of our fixed maturity securities were valued using active trades from TRACE pricing or broker market maker prices for which there was current market activity in that specific security (comparable to receiving one binding quote). The prices obtained were not adjusted, and the assets were classified as Level 1, the highest category of the three-level fair value hierarchy classification wherein inputs are unadjusted and represent quoted prices in active markets for identical assets or liabilities. The remaining 80.3 percent of our fixed maturity securities were valued based on non-binding quotes or other observable and unobservable inputs, as discussed below.
We consider transactions in inactive or disorderly markets to be less representative of fair value. We use all available observable inputs when measuring fair value, but when significant other unobservable inputs and adjustments are necessary, we classify these assets or liabilities as Level 3. Fair value measurements by input level for financial instruments carried at fair value are as follows:
Transfers of assets between Level 1 and Level 2 are as follows:
Transfers between Level 1 and Level 2 occurred due to the change in availability of either a TRACE or broker market maker price. Depending on current market conditions, the availability of these Level 1 prices can vary from period to period. For fair value measurements of financial instruments that were transferred either into or out of Level 1 or 2, we reflect the transfers using the fair value at the beginning of the period. Changes in assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are as follows:
Realized and unrealized investment gains and losses presented in the preceding tables represent gains and losses only for the time during which the applicable financial instruments were classified as Level 3. The transfers between levels resulted primarily from a change in observability of three inputs used to determine fair values of the securities transferred: (1) transactional data for new issuance and secondary trades, (2) broker/dealer quotes and pricing, primarily related to changes in the level of activity in the market and whether the market was considered orderly, and (3) comparable bond metrics from which to perform an analysis. For fair value measurements of financial instruments that were transferred either into or out of Level 3, we reflect the transfers using the fair value at the beginning of the period. We believe this allows for greater transparency, as all changes in fair value that arise during the reporting period of the transfer are disclosed as a component of our Level 3 reconciliation. Gains which are included in earnings and are attributable to the change in fair value of assets or liabilities valued using significant unobservable inputs and still held at period end were $6.2 million and $14.8 million for the three and six months ended June 30, 2017, respectively, and $10.2 million and $4.6 million for the three and six months ended June 30, 2016, respectively. These amounts relate entirely to the change in fair value of an embedded derivative in a modified coinsurance arrangement and are reported as a component of realized investment gains and losses. The table below provides quantitative information regarding the significant unobservable inputs used in Level 3 fair value measurements derived from internal models. Certain securities classified as Level 3 are excluded from the table below due to limitations in our ability to obtain the underlying inputs used by external pricing sources.
Isolated increases in unobservable inputs other than market convention will result in a lower fair value measurement, whereas isolated decreases will result in a higher fair value measurement. The unobservable input for market convention is not sensitive to input movements. The projected liability cash flows used in the fair value measurement of our Level 3 embedded derivative are based on expected claim payments. If claim payments increase, the projected liability cash flows will increase, resulting in a decrease in the fair value of the embedded derivative. Decreases in projected liability cash flows will result in an increase in the fair value of the embedded derivative. |
Investments |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments Fixed Maturity Securities At June 30, 2017 and December 31, 2016, all fixed maturity securities were classified as available-for-sale. The amortized cost and fair values of securities by security type are shown as follows:
The following charts indicate the length of time our fixed maturity securities have been in a gross unrealized loss position.
The following is a distribution of the maturity dates for fixed maturity securities. The maturity dates have not been adjusted for possible calls or prepayments.
At June 30, 2017, the fair value of investment-grade fixed maturity securities was $41,764.5 million, with a gross unrealized gain of $5,437.2 million and a gross unrealized loss of $51.2 million. The gross unrealized loss on investment-grade fixed maturity securities was 42.8 percent of the total gross unrealized loss on fixed maturity securities. Unrealized losses on investment-grade fixed maturity securities principally relate to changes in interest rates or changes in market or sector credit spreads which occurred subsequent to the acquisition of the securities. At June 30, 2017, the fair value of below-investment-grade fixed maturity securities was $3,354.1 million, with a gross unrealized gain of $174.7 million and a gross unrealized loss of $68.5 million. The gross unrealized loss on below-investment-grade fixed maturity securities was 57.2 percent of the total gross unrealized loss on fixed maturity securities. Generally, below-investment-grade fixed maturity securities are more likely to develop credit concerns than investment-grade securities. At June 30, 2017, the unrealized losses in our below-investment-grade fixed maturity securities were generally due to credit spreads in certain industries or sectors and, to a lesser extent, credit concerns related to specific securities. For each specific security in an unrealized loss position, we believe that there are positive factors which mitigate credit concerns and that the securities for which we have not recorded an other-than-temporary impairment will recover in value. As of June 30, 2017, we held 226 individual investment-grade fixed maturity securities and 48 individual below-investment-grade fixed maturity securities that were in an unrealized loss position, of which 16 investment-grade fixed maturity securities and 30 below-investment-grade fixed maturity securities had been in an unrealized loss position continuously for over one year. Of the 226 individual investment-grade securities in an unrealized loss position, 116 are held in the portfolio acquired through our 2016 purchase of H&J Capital, L.L.C., parent of Starmount Life Insurance Company and AlwaysCare Benefits (which collectively we refer to as Starmount). The fair value of the Starmount portfolio was $39.0 million and had a net unrealized loss of $0.7 million at June 30, 2017. In determining when a decline in fair value below amortized cost of a fixed maturity security is other than temporary, we evaluate the following factors:
While determining other-than-temporary impairments is a judgmental area, we utilize a formal, well-defined, and disciplined process to monitor and evaluate our fixed income investment portfolio, supported by issuer specific research and documentation as of the end of each period. The process results in a thorough evaluation of problem investments and the recording of losses on a timely basis for investments determined to have an other-than-temporary impairment. We held no fixed maturity securities as of June 30, 2017 or December 31, 2016 for which a portion of an other-than-temporary impairment was recognized in accumulated other comprehensive income. At June 30, 2017, we had commitments of $113.2 million to fund private placement fixed maturity securities, the amount of which may or may not be funded. Variable Interest Entities We invest in variable interests issued by variable interest entities. These investments include tax credit partnerships, private equity partnerships, and special purpose entities. For those variable interests that are not consolidated in our financial statements, we are not the primary beneficiary because we have neither the power to direct the activities that are most significant to economic performance nor the responsibility to absorb a majority of the expected losses. The determination of whether we are the primary beneficiary is performed at the time of our initial investment and at the date of each subsequent reporting period. As of June 30, 2017, the carrying amount of our variable interest entity investments that are not consolidated in our financial statements was $543.3 million, comprised of $146.8 million of tax credit partnerships and $396.5 million of private equity partnerships. At December 31, 2016, the carrying amount of our variable interest entity investments that are not consolidated in our financial statements was $509.3 million, comprised of $165.2 million of tax credit partnerships and $344.1 million of private equity partnerships. These variable interest entity investments are reported as other long-term investments in our consolidated balance sheets. The Company invests in tax credit partnerships primarily for the receipt of income tax credits and tax benefits derived from passive losses on the investments. Amounts recognized in the consolidated statements of income are as follows:
Contractually, we are a limited partner in these tax credit partnerships, and our maximum exposure to loss is limited to the carrying value of our investment, which includes $4.4 million of unfunded unconditional commitments at June 30, 2017. At June 30, 2017, we also have unfunded unconditional commitments of $0.2 million to fund certain private equity partnerships as well as commitments of $331.0 million, the amount of which may or may not be funded. We are the sole beneficiary of a special purpose entity which is consolidated in our financial statements. This entity is a securitized asset trust containing a highly rated bond for principal protection which we contributed into the trust at the time it was established. There are no restrictions on the asset held in this trust, and the trust is free to dispose of the asset at any time. The fair values of the bond were $153.5 million and $151.9 million as of June 30, 2017 and December 31, 2016, respectively. The bond is reported as a component of fixed maturity securities in our consolidated balance sheets. At December 31, 2016, the trust also contained a private equity partnership which we contributed into the trust at the time it was established with a fair value of $1.0 million. During the first quarter of 2017, we received the final distribution from the partnership and recorded a loss of $0.2 million on the disposal. The loss is reported as a component of net realized investments gains and losses in our consolidated statements of income. Mortgage Loans Our mortgage loan portfolio is well diversified by both geographic region and property type to reduce risk of concentration. All of our mortgage loans are collateralized by commercial real estate. When issuing a new loan, our general policy is not to exceed a loan-to-value ratio, or the ratio of the loan balance to the estimated fair value of the underlying collateral, of 75 percent. We update the loan-to-value ratios at least every three years for each loan, and properties undergo a general inspection at least every two years. Our general policy for newly issued loans is to have a debt service coverage ratio greater than 1.25 times on a normalized 25 year amortization period. We update our debt service coverage ratios annually. Mortgage loans by property type and geographic region are presented below.
We evaluate each of our mortgage loans individually for impairment and assign an internal credit quality rating based on a comprehensive rating system used to evaluate the credit risk of the loan. The factors we use to derive our internal credit ratings may include the following:
Although all available and applicable factors are considered in our analysis, loan-to-value and debt service coverage ratios are the most critical factors in determining whether we will initially issue the loan and also in assigning values and determining impairment. We assign an overall rating to each loan using an internal rating scale of Aa (highest quality) to B (lowest quality). We review and adjust, as needed, our internal credit quality ratings on an annual basis. This review process is performed more frequently for mortgage loans deemed to have a higher risk of delinquency. Mortgage loans, sorted by the applicable credit quality indicators, are as follows:
There were no troubled debt restructurings during the three and six months ended June 30, 2017 and 2016. At June 30, 2017 and December 31, 2016, we held no mortgage loans that were greater than 90 days past due regarding principal and/or interest payments. There have been no changes to our accounting policies or methodology from the prior period regarding estimating the allowance for credit losses on our mortgage loans. As of June 30, 2017 and December 31, 2016, we had no allowance for credit losses, and there was no activity in the allowance for credit losses during the three and six months ended June 30, 2017 or 2016. We did not hold any impaired mortgage loans during the three and six months ended June 30, 2017. Our average investment in impaired mortgage loans was $5.4 million and $2.7 million for the three and six months ended June 30, 2016, respectively. We did not recognize any interest income on mortgage loans subsequent to impairment during the three and six months ended June 30, 2017 or 2016. At June 30, 2017, we had commitments of $66.0 million to fund certain commercial mortgage loans, the amount of which may or may not be funded. Transfers of Financial Assets To manage our cash position more efficiently, we may enter into repurchase agreements with unaffiliated financial institutions. We generally use repurchase agreements as a means to finance the purchase of invested assets or for short-term general business purposes until projected cash flows become available from our operations or existing investments. Our repurchase agreements are typically outstanding for less than 30 days. We post collateral through our repurchase agreement transactions whereby the counterparty commits to purchase securities with the agreement to resell them to us at a later, specified date. The fair value of collateral posted is generally 102 percent of the cash received. Our investment policy also permits us to lend fixed maturity securities to unaffiliated financial institutions in short-term securities lending agreements. These agreements increase our investment income with minimal risk. Our securities lending policy requires that a minimum of 102 percent of the fair value of the securities loaned be maintained as collateral. We may receive cash and/or securities as collateral under these agreements. Cash received as collateral is typically reinvested in short-term investments. If securities are received as collateral, we are not permitted to sell or re-post them. As of June 30, 2017, the carrying amount of fixed maturity securities loaned to third parties under our securities lending program was $219.9 million, for which we received collateral in the form of cash and securities of $33.4 million and $195.8 million, respectively. As of December 31, 2016, the carrying amount of fixed maturity securities loaned to third parties under our securities lending program was $178.5 million, for which we received collateral in the form of cash and securities of $29.9 million and $155.3 million, respectively. We had no outstanding repurchase agreements at June 30, 2017 or December 31, 2016. The remaining contractual maturities of our securities lending agreements disaggregated by class of collateral pledged are as follows:
Certain of our U.S. insurance subsidiaries are members of regional FHLBs. Membership, which requires that we purchase a minimum amount of FHLB common stock on which we receive dividends, provides access to low-cost funding. As of June 30, 2017 and December 31, 2016, we owned $34.4 million and $31.6 million, respectively, of FHLB common stock. Advances from the regional FHLBs for the purpose of purchasing fixed maturity securities totaled $350.0 million as of June 30, 2017 and December 31, 2016. As of June 30, 2017, the carrying value of fixed maturity securities and commercial mortgage loans posted as collateral to the regional FHLBs was $219.3 million and $346.5 million, respectively. As of December 31, 2016, the carrying value of fixed maturity securities and commercial mortgage loans posted as collateral to the regional FHLBs was $323.7 million and $288.5 million, respectively. Additional common stock purchases may be required, based on the amount of funds we borrow from the FHLBs. Offsetting of Financial Instruments We enter into master netting agreements with each of our derivatives counterparties. These agreements provide for conditional rights of set-off upon the occurrence of an early termination event. An early termination event is considered a default, and it allows the non-defaulting party to offset its contracts in a loss position against any gain positions or payments due to the defaulting party. Under our agreements, default type events are defined as failure to pay or deliver as contractually agreed, misrepresentation, bankruptcy, or merger without assumption. See Note 5 for further discussion of collateral related to our derivative contracts. We have securities lending agreements with unaffiliated financial institutions that post collateral to us in return for the use of our fixed maturity securities. A right of set-off exists that allows us to keep and apply collateral received in the event of default by the counterparty. Default within a securities lending agreement would typically occur if the counterparty failed to return the securities borrowed from us as contractually agreed. In addition, if we default by not returning collateral received, the counterparty has a right of set-off against our securities or any other amounts due to us. Shown below are our financial instruments that either meet the accounting requirements that allow them to be offset in our balance sheets or that are subject to an enforceable master netting arrangement or similar agreement. Our accounting policy is to not offset these financial instruments in our balance sheets. Net amounts disclosed below have been reduced by the amount of collateral pledged to or received from our counterparties.
Net Investment Income Net investment income reported in our consolidated statements of income is as follows:
Realized Investment Gain and Loss Realized investment gains and losses are as follows:
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Notes to Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments Purpose of Derivatives We are exposed to certain risks relating to our ongoing business operations. The primary risks managed by using derivative instruments are interest rate risk, risk related to matching duration for our assets and liabilities, foreign currency risk, and credit risk. Historically, we have utilized current and forward interest rate swaps, current and forward currency swaps, forward treasury locks, currency forward contracts, forward contracts on specific fixed income securities, and credit default swaps. Transactions hedging interest rate risk are primarily associated with our individual and group long-term care and individual and group disability products. All other product portfolios are periodically reviewed to determine if hedging strategies would be appropriate for risk management purposes. We do not use derivative financial instruments for speculative purposes. Derivatives designated as cash flow hedges and used to reduce our exposure to interest rate and duration risk are as follows:
Derivatives designated as fair value hedges and used to reduce our exposure to interest rate and duration risk are as follows:
Derivatives designated as cash flow hedges and used to reduce our exposure to foreign currency risk are as follows:
Derivatives not designated as hedging instruments and used to reduce our exposure to foreign currency risk, credit losses on securities owned, and interest rate risk are as follows:
Derivative Risks The basic types of risks associated with derivatives are market risk (that the value of the derivative will be adversely impacted by changes in the market, primarily the change in interest and exchange rates) and credit risk (that the counterparty will not perform according to the terms of the contract). The market risk of the derivatives should generally offset the market risk associated with the hedged financial instrument or liability. To help limit the credit exposure of the derivatives, we enter into master netting agreements with our counterparties whereby contracts in a gain position can be offset against contracts in a loss position. We also typically enter into bilateral, cross-collateralization agreements with our counterparties to help limit the credit exposure of the derivatives. These agreements require the counterparty in a loss position to submit acceptable collateral with the other counterparty in the event the net loss position meets or exceeds an agreed upon amount. Credit exposure on derivatives is limited to the value of those contracts in a net gain position, including accrued interest receivable less collateral held. Our current credit exposure on derivatives, which is limited to the value of those contracts in a net gain position, including accrued interest receivable less collateral held, was $1.1 million at June 30, 2017. We held $21.4 million and $26.1 million cash collateral from our counterparties at June 30, 2017 and December 31, 2016, respectively. We post either fixed maturity securities or cash as collateral to our counterparties. The carrying value of fixed maturity securities posted as collateral to our counterparties was $40.2 million and $35.2 million at June 30, 2017 and December 31, 2016, respectively. We had no cash posted as collateral to our counterparties at June 30, 2017 or December 31, 2016. See Note 4 for further discussion of our master netting agreements. The majority of our derivative instruments contain provisions that require us to maintain specified issuer credit ratings and financial strength ratings. Should our ratings fall below these specified levels, we would be in violation of the provisions, and our derivatives counterparties could terminate our contracts and request immediate payment. The aggregate fair value of all derivative instruments with credit risk-related contingent features that were in a liability position was $52.6 million and $52.8 million at June 30, 2017 and December 31, 2016, respectively. Derivative Transactions The table below summarizes, by notional amounts, the activity for each category of derivatives. The notional amounts represent the basis upon which our counterparty pay and receive amounts are calculated.
Cash Flow Hedges As of June 30, 2017 and December 31, 2016, we had $369.3 million and $394.1 million, respectively, notional amount of receive fixed, pay fixed, open current and forward foreign currency interest rate swaps to hedge fixed income foreign currency-denominated securities. For the three and six months ended June 30, 2017 and 2016, there was no material ineffectiveness related to our cash flow hedges, and no component of the derivative instruments' gain or loss was excluded from the assessment of hedge effectiveness. As of June 30, 2017, we expect to amortize approximately $60.6 million of net deferred gains on derivative instruments during the next twelve months. This amount will be reclassified from accumulated other comprehensive income into earnings and reported on the same income statement line item as the hedged item. The income statement line items that will be affected by this amortization are net investment income and interest and debt expense. Additional amounts that may be reclassified from accumulated other comprehensive income into earnings to offset the earnings impact of foreign currency translation of hedged items are not estimable. As of June 30, 2017, we are hedging the variability of future cash flows associated with forecasted transactions through the year 2038. Fair Value Hedges As of June 30, 2017 and December 31, 2016, we had $102.0 million notional amount of receive variable, pay fixed interest rate swaps to hedge the changes in fair value of certain fixed rate securities held. These swaps effectively convert the associated fixed rate securities into floating rate securities, which are used to fund our floating rate long-term debt. The change in fair value of the hedged fixed maturity securities attributable to the hedged benchmark interest rate resulted in a loss of $0.9 million and $2.0 million for the three and six months ended June 30, 2017, and $1.1 million and $2.9 million for the three and six months ended June 30, 2016, respectively, with an offsetting gain on the related interest rate swaps. During the first quarter of 2016, we terminated $24.0 million notional amount of receive variable, pay fixed interest rate swaps in connection with the sale of the hedged securities and recorded a loss on the swap terminations of $1.2 million in our consolidated statements of income as a component of net realized investment gains and losses. As of June 30, 2017 and December 31, 2016, we had $250.0 million notional amount of receive fixed, pay variable interest rate swaps to hedge the changes in the fair value of certain fixed rate long-term debt. These swaps effectively convert the associated fixed rate long-term debt into floating rate debt and provide for a better matching of interest rates with our short-term investments, which have frequent interest rate resets similar to a floating rate security. The change in fair value of the hedged debt attributable to the hedged benchmark interest rate resulted in a loss of $1.1 million and $0.6 million for the three and six months ended June 30, 2017, and $1.0 million and $6.6 million for the three and six months ended June 30, 2016 respectively, with an offsetting gain on the related interest rate swaps. For the three and six months ended June 30, 2017 and 2016, there was no material ineffectiveness related to our fair value hedges, and no component of the derivative instruments' gain or loss was excluded from the assessment of hedge effectiveness. There were no instances wherein we discontinued fair value hedge accounting due to a hedged firm commitment no longer qualifying as a fair value hedge. Derivatives not Designated as Hedging Instruments As of June 30, 2017 and December 31, 2016, we held $222.4 million notional amount of receive fixed, pay fixed, foreign currency interest rate swaps. These derivatives were not designated as hedges, and as such, changes in fair value related to these derivatives will be reported in earnings as a component of net realized investment gain or loss. As of June 30, 2017 and December 31, 2016, we held $70.0 million notional amount of single name credit default swaps. We entered into these swaps in order to mitigate the credit risk associated with specific securities owned. As of December 31, 2016, we held $3.5 million notional amount of a receive variable, pay fixed interest rate swap acquired through our purchase of Starmount in the third quarter of 2016. This swap effectively converted Starmount's floating rate long-term debt into fixed rate debt. During the second quarter of 2017, we purchased and retired the debt and terminated the interest rate swap. We recorded a loss of $0.1 million on the swap termination in our consolidated statements of income as a component of net realized investment gains and losses. See Note 12. We have an embedded derivative in a modified coinsurance arrangement for which we include in our realized investment gains and losses a calculation intended to estimate the value of the option of our reinsurance counterparty to cancel the reinsurance contract with us. However, neither party can unilaterally terminate the reinsurance agreement except in extreme circumstances resulting from regulatory supervision, delinquency proceedings, or other direct regulatory action. Cash settlements or collateral related to this embedded derivative are not required at any time during the reinsurance contract or at termination of the reinsurance contract. There are no credit-related counterparty triggers, and any accumulated embedded derivative gain or loss reduces to zero over time as the reinsured business winds down. Locations and Amounts of Derivative Financial Instruments The following tables summarize the location and fair values of derivative financial instruments, as reported in our consolidated balance sheets.
The following table summarizes the location of gains and losses on the effective portion of derivative financial instruments designated as cash flow hedging instruments, as reported in our consolidated statements of income and consolidated statements of comprehensive income.
The following table summarizes the location of gains and losses on our derivatives not designated as hedging instruments, as reported in our consolidated statements of income.
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Components of our accumulated other comprehensive income (loss), after tax, and related changes are as follows:
The net unrealized gain on securities consists of the following components:
Amounts reclassified from accumulated other comprehensive income or loss were recognized in our consolidated statements of income as follows:
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Liability for Unpaid Claims and CAE Liability for Unpaid Claims |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Future Policy Benefits and Unpaid Claims Disclosure | Changes in the liability for unpaid claims and claim adjustment expenses are as follows:
The majority of the net balances are related to disability claims with long-tail payouts on which interest earned on assets backing liabilities is an integral part of pricing and reserving. Interest accrued on prior year reserves has been calculated on the opening reserve balance less one-half of the period's claim payments relative to prior years at our average reserve discount rate for the respective periods. "Incurred Related to Prior Years - All Other Incurred" shown in the preceding chart is primarily impacted by the level of claim resolutions in the period relative to the long-term expectations reflected in the reserves. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the life of the block of business and will vary from actual experience in any one period, both favorably and unfavorably. Reconciliation A reconciliation of policy and contract benefits and reserves for future policy and contract benefits as reported in our consolidated balance sheets to the liability for unpaid claims and claim adjustment expenses is as follows:
The adjustment related to unrealized investment gains and losses reflects the changes that would be necessary to policyholder liabilities if the unrealized investment gains and losses related to the corresponding available-for-sale securities had been realized. Changes in this adjustment are reported as a component of other comprehensive income or loss. |
Segment Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | We have three principal operating business segments: Unum US, Unum UK, and Colonial Life. Our other segments are Closed Block and Corporate. Segment information is as follows:
We measure and analyze our segment performance on the basis of "operating revenue" and "operating income" or "operating loss", which differ from total revenue and income before income tax as presented in our consolidated statements of income due to the exclusion of net realized investment gains and losses and certain other items as specified in the reconciliations below. We believe operating revenue and operating income or loss are better performance measures and better indicators of the revenue and profitability and underlying trends in our business. These performance measures are in accordance with GAAP guidance for segment reporting, but they should not be viewed as a substitute for total revenue, income before income tax, or net income. Realized investment gains or losses depend on market conditions and do not necessarily relate to decisions regarding the underlying business of our segments. Our investment focus is on investment income to support our insurance liabilities as opposed to the generation of realized investment gains or losses. Although we may experience realized investment gains or losses which will affect future earnings levels, a long-term focus is necessary to maintain profitability over the life of the business since our underlying business is long-term in nature, and we need to earn the interest rates assumed in calculating our liabilities. We previously excluded the amortization of prior period actuarial gains or losses, a component of the net periodic benefit cost for our pension and other postretirement benefit plans. Effective January 1, 2017, the amortization of prior period actuarial gains or losses is now reported as a component of "operating income" in the following chart. Amounts for periods prior to January 1, 2017 have been adjusted to conform to current year reporting. We may at other times exclude certain other items from our discussion of financial ratios and metrics in order to enhance the understanding and comparability of our operational performance and the underlying fundamentals, but this exclusion is not an indication that similar items may not recur and does not replace net income or net loss as a measure of our overall profitability. See Note 11 for further discussion regarding the loss from a guaranty fund assessment. A reconciliation of total revenue to "operating revenue" and income before income tax to "operating income" is as follows:
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Employee Benefit Plans |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Defined Benefit Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans Defined Benefit Pension and Other Postretirement Benefit (OPEB) Plans We sponsor several defined benefit pension and OPEB plans for our employees, including non-qualified pension plans. The U.S. qualified and non-qualified defined benefit pension plans comprise the majority of our total benefit obligation and benefit cost. We maintain a separate defined benefit plan for eligible employees in our U.K. operation. The U.S. defined benefit pension plans were closed to new entrants on December 31, 2013, the OPEB plan was closed to new entrants on December 31, 2012, and the U.K. plan was closed to new entrants on December 31, 2002. Effective August 1, 2016, we amended the retiree medical benefits portion of our OPEB plan to transition a majority of participants to a private exchange for their health insurance coverage. Prior to the plan amendment, participants paid a subsidized premium for their health insurance coverage, but if they elect to continue participation in the plan they will now purchase coverage on a private exchange and will subsequently be reimbursed through a Health Reimbursement Account (HRA) for an amount equivalent to the subsidy that was previously provided. Participants who continued in the plan received a one-time subsidy to minimize the initial out-of-pocket cost of purchasing health insurance. The amendment did not materially change the benefit obligation of the plan. The following table provides the components of the net periodic benefit cost (credit) for the defined benefit pension and OPEB plans.
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Stockholders' Equity and Earnings Per Common Share |
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Stockholders' Equity and Earnings Per Common Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share Disclosure | Earnings Per Common Share Net income per common share is determined as follows:
We use the treasury stock method to account for the effect of outstanding stock options, nonvested restricted stock units, and nonvested performance share units on the computation of diluted earnings per share. Under this method, these potential common shares will each have a dilutive effect, as individually measured, when the average market price of Unum Group common stock during the period exceeds the exercise price of the stock options and the grant price of the nonvested restricted stock units and the nonvested performance share units. The outstanding stock options have exercise prices ranging from $20.78 to $26.29. Both the nonvested restricted stock units and nonvested performance share units have grant prices ranging from $27.85 to $49.86. In computing earnings per share assuming dilution, only potential common shares that are dilutive (those that reduce earnings per share) are included. For the three and six months ended June 30, 2017, there were approximately 0.4 million potential common shares that were excluded in the computation of diluted earnings per share because the impact would be antidilutive, based on then current market prices. There were approximately 0.5 million potential common shares that were antidilutive for the three and six months ended June 30, 2016, respectively. |
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Stockholders' Equity Disclosure | Common Stock During the second quarter of 2017, our board of directors authorized the repurchase of up to $750.0 million of Unum Group's outstanding common stock through November 25, 2018. This authorization replaced the previous authorization of $750.0 million that was scheduled to expire on November 26, 2017. The remaining repurchase amount under the new program was $712.9 million at June 30, 2017. Common stock repurchases, which are accounted for using the cost method and classified as treasury stock until otherwise retired, were as follows:
(1) Includes commissions of $0.1 million for the three and six month periods ended June 30, 2017 and 2016. Preferred Stock Unum Group has 25.0 million shares of preferred stock authorized with a par value of $0.10 per share. No preferred stock has been issued to date. |
Commitments and Contingent Liabilities |
6 Months Ended |
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Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingent Liabilities Contingent Liabilities We are a defendant in a number of litigation matters. In some of these matters, no specified amount is sought. In others, very large or indeterminate amounts, including punitive and treble damages, are asserted. There is a wide variation of pleading practice permitted in the United States courts with respect to requests for monetary damages, including some courts in which no specified amount is required and others which allow the plaintiff to state only that the amount sought is sufficient to invoke the jurisdiction of that court. Further, some jurisdictions permit plaintiffs to allege damages well in excess of reasonably possible verdicts. Based on our extensive experience and that of others in the industry with respect to litigating or resolving claims through settlement over an extended period of time, we believe that the monetary damages asserted in a lawsuit or claim bear little relation to the merits of the case, or the likely disposition value. Therefore, the specific monetary relief sought is not stated. Unless indicated otherwise in the descriptions below, reserves have not been established for litigation and contingencies. An estimated loss is accrued when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Claims Handling Matters We and our insurance subsidiaries, in the ordinary course of our business, are engaged in claim litigation where disputes arise as a result of a denial or termination of benefits. Most typically these lawsuits are filed on behalf of a single claimant or policyholder, and in some of these individual actions punitive damages are sought, such as claims alleging bad faith in the handling of insurance claims. For our general claim litigation, we maintain reserves based on experience to satisfy judgments and settlements in the normal course. We expect that the ultimate liability, if any, with respect to general claim litigation, after consideration of the reserves maintained, will not be material to our consolidated financial condition. Nevertheless, given the inherent unpredictability of litigation, it is possible that an adverse outcome in certain claim litigation involving punitive damages could, from time to time, have a material adverse effect on our consolidated results of operations in a period, depending on the results of operations for the particular period. From time to time class action allegations are pursued where the claimant or policyholder purports to represent a larger number of individuals who are similarly situated. Since each insurance claim is evaluated based on its own merits, there is rarely a single act or series of actions which can properly be addressed by a class action. Nevertheless, we monitor these cases closely and defend ourselves appropriately where these allegations are made. Miscellaneous Matters Beginning in 2011, a number of state regulators began requiring insurers to cross-check specified insurance policies with the Social Security Administration’s Death Master File to identify potential matches. If a potential match was identified, insurers were requested to determine if benefits were due, locate beneficiaries, and make payments where appropriate. We initiated this process where requested, and in 2012 we began implementing this process in all states on a forward-looking basis. In addition to implementing this on a forward-looking basis, in 2013 we began an initiative to search for potential claims from previous years. During 2013, we completed our assessment of benefits which we estimate will be paid under this initiative, and as such, established additional reserves for payment of these benefits. Similar to other insurers, we are undergoing an examination by a third party acting on behalf of a number of state treasurers concerning our compliance with the unclaimed property laws of the participating states. We are cooperating fully with this examination, as well as with a Delaware Market Conduct examination involving the same issue. The legal and regulatory environment around unclaimed death benefits continues to evolve. It is possible that the current examination and/or similar investigations by other state jurisdictions may result in additional payments to beneficiaries, the payment of abandoned funds under state law, and/or administrative penalties, the total of which may be in excess of the reserves established. In December 2012, State of West Virginia ex rel. John D. Perdue v. Provident Life and Accident Insurance Company and State of West Virginia ex rel. John D. Perdue v. Colonial Life & Accident Insurance Company were filed in the Circuit Court of Putnam County, West Virginia. These two separate complaints alleged violations of the West Virginia Uniform Unclaimed Property Act by failing to identify and report all unclaimed insurance policy proceeds due to be escheated to West Virginia. The complaints sought to examine company records and assess penalties and costs in an undetermined amount. In December 2013, the court dismissed both complaints, holding that the West Virginia Uniform Unclaimed Property Act does not require insurance companies to periodically search the Social Security Administrations' Death Master File or escheat unclaimed life insurance benefits until a claim has been submitted. In January 2014, the plaintiff appealed the dismissal of both complaints. In June 2015, the appellate court reinstated the case, holding that the West Virginia Uniform Unclaimed Property Act requires insurers to make reasonable efforts to determine whether their insureds are still living. The case was remanded to the trial court where we answered the complaints. In 2016, the West Virginia Legislature enacted a law defining insurers’ duties with regard to unclaimed benefits for life insurance policies, annuity contracts, and retained asset accounts issued in West Virginia. In December 2016, we filed a motion to dismiss the complaints in light of this law. In June 2017, the court denied the motion. The case is proceeding through the discovery phase. In 2009, a Pennsylvania-based insurance company and its affiliates were ordered into rehabilitation, and the Pennsylvania Insurance Commissioner, who was appointed as the Rehabilitator, filed petitions for liquidation with the Commonwealth Court of Pennsylvania. Under Pennsylvania law, payment of covered claims and other related insurance obligations are provided, within prescribed limits, by state guaranty associations. These guaranty associations assess fees to meet these obligations on insurance companies that sell insurance within the state, which are generally based on a company's pro rata portion of average premiums written or received for several years prior to the insolvency. Under Pennsylvania statutes, an insurer is declared insolvent only after it is placed under an order of liquidation by a court of competent jurisdiction with a finding for insolvency. In March 2017, a formal order of liquidation was issued, and as such, we were subject to an assessment by those guaranty associations that are responsible for policyholder claims, and accordingly accrued an estimated loss contingency of $13.4 million. This amount is net of expected recoverable premium tax offsets of $44.0 million and net of income tax of $7.2 million. Summary Various lawsuits against us, in addition to those discussed above, have arisen in the normal course of business. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning our compliance with applicable insurance and other laws and regulations. Given the complexity and scope of our litigation and regulatory matters, it is not possible to predict the ultimate outcome of all pending investigations or legal proceedings or provide reasonable estimates of potential losses, except if noted in connection with specific matters. It is possible that our results of operations or cash flows in a particular period could be materially affected by an ultimate unfavorable outcome of pending litigation or regulatory matters depending, in part, on our results of operations or cash flows for the particular period. We believe, however, that the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on our financial position. |
Debt |
6 Months Ended |
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Jun. 30, 2017 | |
Debt and Other Disclosures [Abstract] | |
Debt Disclosure | In June 2017, we purchased and retired the remaining $3.4 million of principal on our senior secured floating rate notes acquired through our purchase of Starmount. In conjunction with this retirement, we also terminated the interest rate swap associated with the hedge of these notes and recorded a $0.1 million loss in our consolidated statements of income as a component of net realized investment gains and losses. See Note 5 for further discussion. During the six months ended June 30, 2017, we made principal payments of $30.0 million on our senior secured non-recourse notes issued by Northwind Holdings, LLC. At June 30, 2017, letters of credit totaling $2.1 million had been issued from the credit facility, but there were no borrowed amounts outstanding. |
Basis of Presentation (Policies) |
6 Months Ended |
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Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying consolidated financial statements of Unum Group and its subsidiaries (the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes included in our annual report on Form 10-K for the year ended December 31, 2016. |
Fair Values of Financial Instruments (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amount and Fair Value of Financial Instruments | Presented as follows are the carrying amounts and fair values of financial instruments. The carrying values of financial instruments such as short-term investments, cash and bank deposits, accounts and premiums receivable, accrued investment income, and securities lending agreements approximate fair value due to the short-term nature of the instruments. As such, these financial instruments are not included in the following chart.
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Fair Values by Fair Value Heirarchy Input Level | Fair value measurements by input level for financial instruments carried at fair value are as follows:
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Transfers of Assets between Level 1 and Level 2 | Transfers of assets between Level 1 and Level 2 are as follows:
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Changes in Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs | Changes in assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are as follows:
Realized and unrealized investment gains and losses presented in the preceding tables represent gains and losses only for the time during which the applicable financial instruments were classified as Level 3. The transfers between levels resulted primarily from a change in observability of three inputs used to determine fair values of the securities transferred: (1) transactional data for new issuance and secondary trades, (2) broker/dealer quotes and pricing, primarily related to changes in the level of activity in the market and whether the market was considered orderly, and (3) comparable bond metrics from which to perform an analysis. For fair value measurements of financial instruments that were transferred either into or out of Level 3, we reflect the transfers using the fair value at the beginning of the period. We believe this allows for greater transparency, as all changes in fair value that arise during the reporting period of the transfer are disclosed as a component of our Level 3 reconciliation. Gains which are included in earnings and are attributable to the change in fair value of assets or liabilities valued using significant unobservable inputs and still held at period end were $6.2 million and $14.8 million for the three and six months ended June 30, 2017, respectively, and $10.2 million and $4.6 million for the three and six months ended June 30, 2016, respectively. These amounts relate entirely to the change in fair value of an embedded derivative in a modified coinsurance arrangement and are reported as a component of realized investment gains and losses. |
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Quantitative Information Regarding Significant Unobservable Inputs | The table below provides quantitative information regarding the significant unobservable inputs used in Level 3 fair value measurements derived from internal models. Certain securities classified as Level 3 are excluded from the table below due to limitations in our ability to obtain the underlying inputs used by external pricing sources.
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Investments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Fair Values of Securities by Security Type | At June 30, 2017 and December 31, 2016, all fixed maturity securities were classified as available-for-sale. The amortized cost and fair values of securities by security type are shown as follows:
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Length of Time Fixed Maturity Securities had been in a Gross Unrealized Loss Position | The following charts indicate the length of time our fixed maturity securities have been in a gross unrealized loss position.
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Distribution of the Maturity Dates for Fixed Maturity Securities | The following is a distribution of the maturity dates for fixed maturity securities. The maturity dates have not been adjusted for possible calls or prepayments.
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Low Income Housing Tax Credits | The Company invests in tax credit partnerships primarily for the receipt of income tax credits and tax benefits derived from passive losses on the investments. Amounts recognized in the consolidated statements of income are as follows:
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Mortgage Loans by Property Type and Geographic Region | Mortgage loans by property type and geographic region are presented below.
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Mortgage Loans by Credit Quality Indicators | Mortgage loans, sorted by the applicable credit quality indicators, are as follows:
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Remaining Contractual Maturity of Securities Lending Agreements | The remaining contractual maturities of our securities lending agreements disaggregated by class of collateral pledged are as follows:
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Schedule of Financial Instrument and Derivative Offsetting | Shown below are our financial instruments that either meet the accounting requirements that allow them to be offset in our balance sheets or that are subject to an enforceable master netting arrangement or similar agreement. Our accounting policy is to not offset these financial instruments in our balance sheets. Net amounts disclosed below have been reduced by the amount of collateral pledged to or received from our counterparties.
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Net Investment Income | Net Investment Income Net investment income reported in our consolidated statements of income is as follows:
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Realized Investment Gains and Losses Reported in Consolidated Statements of Income | Realized Investment Gain and Loss Realized investment gains and losses are as follows:
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Derivative Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional Amounts for Each Category of Derivative Activity | The table below summarizes, by notional amounts, the activity for each category of derivatives. The notional amounts represent the basis upon which our counterparty pay and receive amounts are calculated.
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Location and Fair Values of Derivative Financial Instruments | The following tables summarize the location and fair values of derivative financial instruments, as reported in our consolidated balance sheets.
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Location of Gains and Losses on Derivative Instruments Designated as Cash Flow Hedging Instruments | The following table summarizes the location of gains and losses on the effective portion of derivative financial instruments designated as cash flow hedging instruments, as reported in our consolidated statements of income and consolidated statements of comprehensive income.
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Gains and Losses on Derivatives Not Designated as Hedging Instruments | The following table summarizes the location of gains and losses on our derivatives not designated as hedging instruments, as reported in our consolidated statements of income.
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Accumulated Other Comprehensive Income (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | Components of our accumulated other comprehensive income (loss), after tax, and related changes are as follows:
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Schedule of Components of Unrealized Gain on Securities | The net unrealized gain on securities consists of the following components:
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Schedule of Reclassifications Out of Accumulated Other Comprehensive Income | Amounts reclassified from accumulated other comprehensive income or loss were recognized in our consolidated statements of income as follows:
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Liability for Unpaid Claims and CAE Liability for Unpaid Claims (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | Changes in the liability for unpaid claims and claim adjustment expenses are as follows:
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Reconciliation of Policy and Contract Benefits and Reserves for Future Policy and Contract Benefits to Balance Sheet Amounts | A reconciliation of policy and contract benefits and reserves for future policy and contract benefits as reported in our consolidated balance sheets to the liability for unpaid claims and claim adjustment expenses is as follows:
The adjustment related to unrealized investment gains and losses reflects the changes that would be necessary to policyholder liabilities if the unrealized investment gains and losses related to the corresponding available-for-sale securities had been realized. Changes in this adjustment are reported as a component of other comprehensive income or loss. |
Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premium Income by Major Line of Business within Each Segment | Segment information is as follows:
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Selected Operating Statement Data by Segment |
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Assets by Segment |
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Reconciliation of Operating Revenue and Operating Income by Segment to Total Revenue and Income Before Income Tax | A reconciliation of total revenue to "operating revenue" and income before income tax to "operating income" is as follows:
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Employee Benefit Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Defined Benefit Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Periodic Benefit Costs | The following table provides the components of the net periodic benefit cost (credit) for the defined benefit pension and OPEB plans.
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Stockholders' Equity and Earnings Per Common Share (Tables) |
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Stockholders' Equity and Earnings Per Common Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Earnings Per Share | Earnings Per Common Share Net income per common share is determined as follows:
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Treasury Stock Transactions | Common Stock During the second quarter of 2017, our board of directors authorized the repurchase of up to $750.0 million of Unum Group's outstanding common stock through November 25, 2018. This authorization replaced the previous authorization of $750.0 million that was scheduled to expire on November 26, 2017. The remaining repurchase amount under the new program was $712.9 million at June 30, 2017. Common stock repurchases, which are accounted for using the cost method and classified as treasury stock until otherwise retired, were as follows:
(1) Includes commissions of $0.1 million for the three and six month periods ended June 30, 2017 and 2016. |
Fair Value of Financial Instruments Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
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Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Ceded Policy Loans | $ 3,150.4 | $ 3,150.4 | $ 3,206.1 | ||
Long-term Debt | 2,968.4 | 2,968.4 | 2,999.4 | ||
Gain (Loss) on Embedded Derivative | 6.2 | $ 10.2 | 14.8 | $ 4.6 | |
Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Long-term Debt | $ 1,937.8 | $ 1,937.8 | 709.8 | ||
Percentage of Total Fair Value of Fixed Maturities Securities | 19.70% | 19.70% | |||
Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Long-term Debt | $ 1,351.0 | $ 1,351.0 | $ 2,466.0 | ||
Fair Value, Inputs, Level 2 | Pricing Service | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Percentage of Total Fair Value of Fixed Maturities Securities | 66.30% | 66.30% | |||
Fair Value, Inputs, Level 2 | Other Observable Market Data | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Percentage of Total Fair Value of Fixed Maturities Securities | 3.70% | 3.70% | |||
Minimum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Private Equity Partnership Future Liquidation Term | 1 year | ||||
Maximum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Private Equity Partnership Future Liquidation Term | 10 years | ||||
Fair Value Inputs Other Than Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Percentage of Total Fair Value of Fixed Maturities Securities | 80.30% | 80.30% | |||
Fair Value Inputs Level 2 Or Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Percentage of Total Fair Value of Fixed Maturities Securities | 10.30% | 10.30% |
Amortized Cost and Fair Values of Securities by Security Type (Detail) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
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Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | $ 39,626.4 | $ 39,552.7 |
Fair Value of Fixed Maturity Securities | 45,118.6 | 44,217.3 |
United States Government and Government Agencies and Authorities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 1,246.7 | 1,202.8 |
Accumulated Gross Unrealized Gain on Securities | 192.0 | 183.1 |
Accumulated Gross Unrealized Loss on Securities | 2.7 | 3.5 |
Fair Value of Fixed Maturity Securities | 1,436.0 | 1,382.4 |
States, Municipalities, and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 1,906.0 | 1,868.0 |
Accumulated Gross Unrealized Gain on Securities | 348.2 | 294.8 |
Accumulated Gross Unrealized Loss on Securities | 1.8 | 4.8 |
Fair Value of Fixed Maturity Securities | 2,252.4 | 2,158.0 |
Foreign Governments | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 740.4 | 714.8 |
Accumulated Gross Unrealized Gain on Securities | 193.6 | 199.9 |
Accumulated Gross Unrealized Loss on Securities | 0.0 | 0.0 |
Fair Value of Fixed Maturity Securities | 934.0 | 914.7 |
Public Utilities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 6,976.4 | 6,916.1 |
Accumulated Gross Unrealized Gain on Securities | 1,245.3 | 1,123.5 |
Accumulated Gross Unrealized Loss on Securities | 9.3 | 16.9 |
Fair Value of Fixed Maturity Securities | 8,212.4 | 8,022.7 |
Mortgage/Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 1,984.9 | 2,104.9 |
Accumulated Gross Unrealized Gain on Securities | 123.8 | 134.7 |
Accumulated Gross Unrealized Loss on Securities | 6.2 | 9.2 |
Fair Value of Fixed Maturity Securities | 2,102.5 | 2,230.4 |
All Other Corporate Bonds | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 26,733.0 | 26,707.1 |
Accumulated Gross Unrealized Gain on Securities | 3,505.9 | 2,944.0 |
Accumulated Gross Unrealized Loss on Securities | 99.7 | 183.9 |
Fair Value of Fixed Maturity Securities | 30,139.2 | 29,467.2 |
Redeemable Preferred Stocks | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 39.0 | 39.0 |
Accumulated Gross Unrealized Gain on Securities | 3.1 | 3.2 |
Accumulated Gross Unrealized Loss on Securities | 0.0 | 0.3 |
Fair Value of Fixed Maturity Securities | 42.1 | 41.9 |
Fixed Maturity Securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 39,626.4 | 39,552.7 |
Accumulated Gross Unrealized Gain on Securities | 5,611.9 | 4,883.2 |
Accumulated Gross Unrealized Loss on Securities | 119.7 | 218.6 |
Fair Value of Fixed Maturity Securities | $ 45,118.6 | $ 44,217.3 |
Length of Time Fixed Maturity Securities had been in a Gross Unrealized Loss Position (Detail) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Schedule of Available-for-sale Securities | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | $ 2,388.5 | $ 4,667.3 |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 49.9 | 154.9 |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 674.3 | 801.9 |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | 69.8 | 63.7 |
United States Government and Government Agencies and Authorities | ||
Schedule of Available-for-sale Securities | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | 133.7 | 132.8 |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 2.7 | 3.5 |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 0.0 | 0.0 |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | 0.0 | 0.0 |
States, Municipalities, and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | 91.6 | 132.2 |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 1.8 | 4.8 |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 0.0 | 0.0 |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | 0.0 | 0.0 |
Public Utilities | ||
Schedule of Available-for-sale Securities | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | 219.3 | 260.2 |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 5.8 | 15.3 |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 32.8 | 15.6 |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | 3.5 | 1.6 |
Mortgage/Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | 449.2 | 513.2 |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 6.0 | 9.1 |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 9.9 | 0.8 |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | 0.2 | 0.1 |
All Other Corporate Bonds | ||
Schedule of Available-for-sale Securities | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | 1,494.7 | 3,621.0 |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 33.6 | 122.1 |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 631.6 | 774.7 |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | $ 66.1 | 61.8 |
Redeemable Preferred Stocks | ||
Schedule of Available-for-sale Securities | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | 7.9 | |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 0.1 | |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 10.8 | |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | $ 0.2 |
Distribution of the Maturity Dates for Fixed Maturity Securities (Detail) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Available-for-Sale Securities, Total Amortized Cost | ||
1 year or less | $ 1,715.2 | $ 1,338.8 |
Over 1 year through 5 years | 5,495.1 | 6,231.0 |
Over 5 years through 10 years | 11,484.5 | 10,991.6 |
Over 10 years | 18,946.7 | 18,886.4 |
Available-for-sale Securities, Debt Maturities, Gross Subtotal | 37,641.5 | 37,447.8 |
Mortgage/Asset-Backed Securities | 1,984.9 | 2,104.9 |
Amortized Cost of Fixed Maturity Securities | 39,626.4 | 39,552.7 |
Fair Value Maturity Distribution | ||
Total Fixed Maturity Securities | 45,118.6 | 44,217.3 |
Fair Value of Fixed Maturity Securities in Unrealized Gain Position | ||
Available-for-Sale Securities, Unrealized Gain Position, Gross Gain | ||
1 year or less | 41.8 | 28.6 |
Over 1 year through 5 years | 509.5 | 553.5 |
Over 5 years through 10 years | 1,080.1 | 843.8 |
Over 10 years | 3,856.7 | 3,322.6 |
Available-For-Sale Securities, Debt Maturities Unrealized Gain Position, Gross Gain, Gross Subtotal | 5,488.1 | 4,748.5 |
Mortgage/Asset-Backed Securities | 123.8 | 134.7 |
Total Fixed Maturity Securities | 5,611.9 | 4,883.2 |
Fair Value Maturity Distribution | ||
1 year or less | 1,753.1 | 1,355.6 |
Over 1 year through 5 years | 5,854.9 | 6,605.6 |
Over 5 years through 10 years | 11,339.0 | 9,336.2 |
Over 10 years | 21,465.4 | 19,734.3 |
Available-for-sale Securities, Debt Maturities, Fair Value, Gross Subtotal | 40,412.4 | 37,031.7 |
Mortgage/Asset-Backed Securities | 1,643.4 | 1,716.4 |
Total Fixed Maturity Securities | 42,055.8 | 38,748.1 |
Fair Value of Fixed Maturity Securities in Unrealized Loss Position | ||
Fair Value Maturity Distribution | ||
1 year or less | 3.9 | 11.8 |
Over 1 year through 5 years | 143.9 | 170.7 |
Over 5 years through 10 years | 1,173.9 | 2,416.4 |
Over 10 years | 1,282.0 | 2,356.3 |
Available-for-sale Securities, Debt Maturities, Fair Value, Gross Subtotal | 2,603.7 | 4,955.2 |
Mortgage/Asset-Backed Securities | 459.1 | 514.0 |
Total Fixed Maturity Securities | 3,062.8 | 5,469.2 |
Available-for-Sale Securities, Unrealized Loss Position, Gross Loss | ||
1 year or less | 0.0 | 0.0 |
Over 1 year through 5 years | 5.8 | 8.2 |
Over 5 years through 10 years | 51.7 | 82.8 |
Over 10 years | 56.0 | 118.4 |
Available-For-Sale Securities, Debt Maturities Unrealized Gain Position, Gross Loss, Gross Subtotal | 113.5 | 209.4 |
Mortgage/Asset-Backed Securities | 6.2 | 9.2 |
Total Fixed Maturity Securities | $ 119.7 | $ 218.6 |
Investments Low Income Housing Tax Credits (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Investments, All Other Investments [Abstract] | ||||
Low Income Housing Tax Credits | $ 10.5 | $ 10.4 | $ 20.9 | $ 20.9 |
Amortization of Low Income Housing Investments | (5.8) | (5.8) | (11.6) | (11.6) |
Tax Benefits from Low Income Housing Investments | $ 4.7 | $ 4.6 | $ 9.3 | $ 9.3 |
Mortgage Loans by Property Type and Geographic Region (Detail) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 2,081.2 | $ 2,038.9 |
Percent of Total | 100.00% | 100.00% |
New England | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 70.8 | $ 72.7 |
Percent of Total | 3.40% | 3.60% |
Middle Atlantic | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 127.6 | $ 125.3 |
Percent of Total | 6.10% | 6.10% |
East North Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 249.4 | $ 230.1 |
Percent of Total | 12.00% | 11.30% |
West North Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 188.9 | $ 172.0 |
Percent of Total | 9.10% | 8.40% |
South Atlantic | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 435.7 | $ 438.3 |
Percent of Total | 20.90% | 21.50% |
East South Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 90.2 | $ 91.6 |
Percent of Total | 4.30% | 4.50% |
West South Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 260.3 | $ 268.7 |
Percent of Total | 12.50% | 13.20% |
Mountain | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 229.8 | $ 214.1 |
Percent of Total | 11.10% | 10.50% |
Pacific | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 428.5 | $ 426.1 |
Percent of Total | 20.60% | 20.90% |
Apartment | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 309.0 | $ 288.4 |
Percent of Total | 14.80% | 14.10% |
Industrial | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 569.5 | $ 573.6 |
Percent of Total | 27.30% | 28.10% |
Office | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 702.5 | $ 700.1 |
Percent of Total | 33.80% | 34.40% |
Retail | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 467.7 | $ 455.4 |
Percent of Total | 22.50% | 22.40% |
Other Property | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 32.5 | $ 21.4 |
Percent of Total | 1.60% | 1.00% |
Mortgage Loans Sorted by Applicable Internal Credit Ratings and Loan-to-Value Ratios (Detail) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Financing Receivable, Recorded Investment | ||
Mortgage Loans | $ 2,081.2 | $ 2,038.9 |
Aa Credit Rating | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | 0.5 | 0.7 |
A Credit Rating | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | 487.2 | 488.2 |
Baa Credit Rating | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | 1,556.5 | 1,506.6 |
Ba Credit Rating | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | 37.0 | 43.4 |
Loan to Value Ratio Below or Equal to 65 Percent | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | 968.1 | 917.9 |
Loan To Value Ratio Above 65 To 75 Percent | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | 1,011.0 | 1,011.5 |
Loan To Value Ratio Above 75 To 85 Percent | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | 49.9 | 50.8 |
Loan To Value Ratio Above 85 Percent | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | $ 52.2 | $ 58.7 |
Investments Remaining Contractual Maturity of Securities Lending Agreements (Details) - Overnight and Continuous - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | $ 33.4 | $ 29.9 |
Securities Loaned and Securities Sold under Agreement to Repurchase, Gross Including Not Subject to Master Netting Arrangement | 33.4 | 29.9 |
Secured Borrowings, Gross, Difference, Amount | 0.0 | 0.0 |
United States Government and Government Agencies and Authorities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 1.1 | 0.1 |
Public Utilities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 0.1 | 0.1 |
All Other Corporate Bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | ||
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | $ 32.2 | $ 29.7 |
Schedule of Financial Instrument and Derivative Offsetting (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Offsetting Derivative Assets | ||
Gross Derivative Assets | $ 27.0 | $ 32.7 |
Derivative Liabilities Offsetting Derivative Assets in Balance Sheet | 0.0 | 0.0 |
Net Derivative Assets Reported in Balance Sheet | 27.0 | 32.7 |
Securities Received as Collateral on Derivative Assets | (6.0) | (7.3) |
Cash Collateral from Counterparties | (21.0) | (25.4) |
Derivative Assets Net of Collateral | 0.0 | 0.0 |
Offsetting Securities Borrowed | ||
Gross Securities Borrowed | 219.9 | 178.5 |
Liabilities Offsetting Securities Borrowed in Balance Sheet | 0.0 | 0.0 |
Net Securities Borrowed Reported in Balance Sheet | 219.9 | 178.5 |
Securities Received as Collateral on Securities Borrowed | (186.5) | (148.6) |
Cash Received as Collateral on Securities Borrowed | (33.4) | (29.9) |
Securities Borrowed Net of Collateral | 0.0 | 0.0 |
Offsetting of Derivative Assets and Securities Borrowed | ||
Gross Financial Assets | 246.9 | 211.2 |
Financial Liabilities Offsetting Financial Assets in Balance Sheet | 0.0 | 0.0 |
Net Financial Assets Reported in Balance Sheet | 246.9 | 211.2 |
Securities Received as Collateral on Financial Assets | (192.5) | (155.9) |
Cash Received as Collateral on Financial Assets | (54.4) | (55.3) |
Financial Assets Net of Collateral | 0.0 | 0.0 |
Offsetting Derivative Liabilities | ||
Net Derivative Liabilities Reported in Balance Sheet | 84.5 | 99.5 |
Cash Collateral to Counterparties | 0.0 | 0.0 |
Offsetting Securities Loaned | ||
Gross Securities Loaned | 33.4 | 29.9 |
Assets Offsetting Securities Loaned in Balance Sheet | 0.0 | 0.0 |
Net Securities Loaned Reported in Balance Sheet | 33.4 | 29.9 |
Securities Given as Collateral on Securities Loaned | (33.4) | (29.9) |
Cash Given as Collateral on Securities Loaned | 0.0 | 0.0 |
Securities Loaned Net of Collateral | 0.0 | 0.0 |
Derivative Liabilities and Securities Lending Liabilities | ||
Gross Financial Liability | 86.0 | 82.7 |
Financial Assets Offsetting Financial Liabilities in Balance Sheet | 0.0 | 0.0 |
Net Financial Liabilities Reported in Balance Sheet | 86.0 | 82.7 |
Securities Given as Collateral on Financial Liabilities | (74.0) | (67.5) |
Cash Given as Collateral on Financial Liabilities | 0.0 | 0.0 |
Financial Liabilities Net of Collateral | 12.0 | 15.2 |
Over the Counter | ||
Offsetting Derivative Liabilities | ||
Gross Derivative Liability | 52.6 | 52.8 |
Derivative Assets Offsetting Derivative Liabilities in Balance Sheet | 0.0 | 0.0 |
Net Derivative Liabilities Reported in Balance Sheet | 52.6 | 52.8 |
Securities Given as Collateral on Derivative Liabilities | (40.6) | (37.6) |
Cash Collateral to Counterparties | 0.0 | 0.0 |
Derivative Liabilities Net of Collateral | $ 12.0 | $ 15.2 |
Net Investment Income (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Schedule of Investment Income, Reported Amounts, by Category | ||||
Investment Income, Interest and Dividend | $ 632.1 | $ 634.8 | $ 1,246.9 | $ 1,253.0 |
Less Investment Expenses | 8.1 | 7.9 | 16.9 | 16.1 |
Less Investment Income on PFA Assets | 3.5 | 3.6 | 7.1 | 7.2 |
Net Investment Income | 620.5 | 623.3 | 1,222.9 | 1,229.7 |
Fixed Maturity Securities | ||||
Schedule of Investment Income, Reported Amounts, by Category | ||||
Investment Income, Interest and Dividend | 572.0 | 579.6 | 1,135.7 | 1,143.4 |
Derivatives | ||||
Schedule of Investment Income, Reported Amounts, by Category | ||||
Investment Income, Interest and Dividend | 14.0 | 12.4 | 27.4 | 24.3 |
Mortgage Loans | ||||
Schedule of Investment Income, Reported Amounts, by Category | ||||
Investment Income, Interest and Dividend | 25.6 | 30.1 | 51.0 | 57.0 |
Policy Loans | ||||
Schedule of Investment Income, Reported Amounts, by Category | ||||
Investment Income, Interest and Dividend | 4.5 | 4.3 | 8.8 | 8.4 |
Other Long-term Investments | ||||
Schedule of Investment Income, Reported Amounts, by Category | ||||
Investment Income, Interest and Dividend | 13.4 | 6.3 | 19.5 | 16.3 |
Short-term Investments | ||||
Schedule of Investment Income, Reported Amounts, by Category | ||||
Investment Income, Interest and Dividend | $ 2.6 | $ 2.1 | $ 4.5 | $ 3.6 |
Realized Investment Gains and Losses Reported in Consolidated Statements of Income (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Fixed Maturity Securities | ||||
Gross Gains on Sales | $ 1.9 | $ 10.9 | $ 4.3 | $ 27.8 |
Gross Losses on Sales | (1.2) | (4.0) | (2.3) | (13.6) |
Other-Than-Temporary Impairment Loss | 0.0 | (9.4) | 0.0 | (30.5) |
Mortgage Loans and Other Invested Assets | ||||
Gross Gains on Sales | 1.9 | 2.0 | 2.6 | 3.8 |
Gross Losses on Sales | 0.0 | (0.4) | (0.2) | (0.7) |
Other than Temporary Impairment Losses, Investments | 0.0 | 3.1 | 0.0 | 3.1 |
Gain (Loss) on Embedded Derivative | 6.2 | 10.2 | 14.8 | 4.6 |
Gain (Loss) on All Other Derivatives | (0.3) | (1.1) | (0.5) | (3.6) |
Foreign Currency Transactions | (0.4) | 0.2 | 0.4 | 0.1 |
Net Realized Investment Gain (Loss) | $ 8.1 | $ 5.3 | $ 19.1 | $ (15.2) |
Investments - Additional Information (Detail) |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2017
USD ($)
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Mar. 31, 2017
USD ($)
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Jun. 30, 2016
USD ($)
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Jun. 30, 2017
USD ($)
Integer
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Jun. 30, 2016
USD ($)
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Dec. 31, 2016
USD ($)
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|
Schedule of Investments | ||||||
Fair Value of Fixed Maturity Securities | $ 45,118,600,000 | $ 45,118,600,000 | $ 44,217,300,000 | |||
Fixed Maturity Securities Other Than Temporary Impairments in Accumulated Other Comprehensive Income Loss | 0 | 0 | 0 | |||
Commitment to Fund Private Placement Fixed Maturity Securities | 113,200,000 | 113,200,000 | ||||
Carrying Amount of Variable Interest Entity Investments | 543,300,000 | 543,300,000 | 509,300,000 | |||
Unfunded Commitments to Investment Partnerships | 4,400,000 | 4,400,000 | ||||
Unfunded Unconditional Commitment to Fund Private Equity Partnerships | 200,000 | 200,000 | ||||
Commitment to Fund Partnership Equity Investments | 331,000,000 | 331,000,000 | ||||
Other Long-term Investments | 661,300,000 | 661,300,000 | $ 631,500,000 | |||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments | $ (8,100,000) | $ (14,700,000) | $ (19,100,000) | $ (15,300,000) | ||
Mortgage Loan Policy is not to Exceed a Loan-to-value Ratio, Percent | 75.00% | 75.00% | ||||
Loan to Value Ratio Update Frequency | 3 years | |||||
Mortgage Loan Inspection Frequency | 2 years | |||||
Mortage Loan Policy Debt Service Coverage Ratio Lower Range | 125.00% | 125.00% | ||||
Mortgage Loans Issuance, Term Years | 25 | |||||
Number of Financing Receivables on Nonaccrual Status | 0 | 0 | 0 | |||
Number of Changes to Accounting Policy for Estimating Credit Losses on Mortgage Loans | 0 | |||||
Impaired Financing Receivable, Average Recorded Investment | $ 0 | 5,400,000 | $ 0 | 2,700,000 | ||
Impaired Financing Receivable, Interest Income, Accrual Method | 0 | 0 | 0 | 0 | ||
Committments to Fund Commercial Mortgage Loans | $ 66,000,000 | $ 66,000,000 | ||||
Repurchase agreements - Typical Days Outstanding | 30 days | |||||
Minimum Percent of Fair Value of Securities Loaned or Securities Purchased Under Repurchase Agreements to be Maintained as Collateral | 102.00% | 102.00% | ||||
Net Securities Borrowed Reported in Balance Sheet | $ 219,900,000 | $ 219,900,000 | $ 178,500,000 | |||
Outstanding Repurchase Agreements | 0 | 0 | 0 | |||
Federal Home Loan Bank Stock | 34,400,000 | 34,400,000 | 31,600,000 | |||
Federal Home Loan Bank (FHLB) Funding Agreements | 350,000,000 | 350,000,000 | 350,000,000 | |||
Fixed Maturity Securities | ||||||
Schedule of Investments | ||||||
Fair Value of Fixed Maturity Securities | 45,118,600,000 | 45,118,600,000 | 44,217,300,000 | |||
Accumulated Gross Unrealized Gain on Securities | 5,611,900,000 | 5,611,900,000 | 4,883,200,000 | |||
Accumulated Gross Unrealized Loss on Securities | 119,700,000 | 119,700,000 | 218,600,000 | |||
Collateral Pledged to Federal Home Loan Bank (FHLB) | 219,300,000 | 219,300,000 | 323,700,000 | |||
Mortgage Loans as Collateral | ||||||
Schedule of Investments | ||||||
Collateral Pledged to Federal Home Loan Bank (FHLB) | 346,500,000 | 346,500,000 | 288,500,000 | |||
Off Balance Sheet Amount | ||||||
Schedule of Investments | ||||||
Cash Collateral for Borrowed Securities | 33,400,000 | 33,400,000 | 29,900,000 | |||
Securities Received as Collateral | 195,800,000 | 195,800,000 | 155,300,000 | |||
Commercial Real Estate Portfolio Segment | ||||||
Schedule of Investments | ||||||
Financing Receivable, Allowance for Credit Losses | 0 | 0 | 0 | |||
Provision for Loan and Lease Losses | $ 0 | $ 0.0 | $ 0 | $ 0 | ||
Commercial Real Estate Portfolio Segment | ||||||
Schedule of Investments | ||||||
Number of Loan Modifications due to Loan Foreclosure | 0 | 0 | 0 | 0 | ||
Special Purpose Entity | Bonds | ||||||
Schedule of Investments | ||||||
Fair Value of Fixed Maturity Securities | $ 153,500,000 | $ 153,500,000 | 151,900,000 | |||
Special Purpose Entity | Partnership Interest | ||||||
Schedule of Investments | ||||||
Other Long-term Investments | 1,000,000 | |||||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments | $ 200,000 | |||||
Partnership Interests In Tax Credit Investments | ||||||
Schedule of Investments | ||||||
Carrying Amount of Variable Interest Entity Investments | 146,800,000 | 146,800,000 | 165,200,000 | |||
Equity Method Investments | ||||||
Schedule of Investments | ||||||
Carrying Amount of Variable Interest Entity Investments | 396,500,000 | 396,500,000 | $ 344,100,000 | |||
External Credit Rating, Investment Grade | ||||||
Schedule of Investments | ||||||
Fair Value of Fixed Maturity Securities | 41,764,500,000 | 41,764,500,000 | ||||
Accumulated Gross Unrealized Gain on Securities | 5,437,200,000 | 5,437,200,000 | ||||
Accumulated Gross Unrealized Loss on Securities | $ 51,200,000 | $ 51,200,000 | ||||
Percent of Fixed Maturity Securities in Unrealized Loss Position | 42.80% | 42.80% | ||||
Number of Fixed Maturity Securities in an Unrealized Loss Position | 226 | 226 | ||||
Number of Fixed Maturity Securities in an Unrealized Loss Position Continuously for Over One year | 16 | 16 | ||||
External Credit Rating, Non Investment Grade | ||||||
Schedule of Investments | ||||||
Fair Value of Fixed Maturity Securities | $ 3,354,100,000 | $ 3,354,100,000 | ||||
Accumulated Gross Unrealized Gain on Securities | 174,700,000 | 174,700,000 | ||||
Accumulated Gross Unrealized Loss on Securities | $ 68,500,000 | $ 68,500,000 | ||||
Percent of Fixed Maturity Securities in Unrealized Loss Position | 57.20% | 57.20% | ||||
Number of Fixed Maturity Securities in an Unrealized Loss Position | 48 | 48 | ||||
Number of Fixed Maturity Securities in an Unrealized Loss Position Continuously for Over One year | 30 | 30 | ||||
Starmount | ||||||
Schedule of Investments | ||||||
Fair Value of Fixed Maturity Securities | $ 39,000,000 | $ 39,000,000 | ||||
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | (700,000) | $ (700,000) | ||||
Available-for-sale Securities, Gross Unrealized Gain (Loss) | $ 0 | |||||
Starmount | External Credit Rating, Investment Grade | ||||||
Schedule of Investments | ||||||
Number of Fixed Maturity Securities in an Unrealized Loss Position | 116 | 116 |
Notional Amounts for Each Category of Derivative Activity (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Derivative | |||||
Balance at beginning of period | $ 1,021.6 | $ 1,446.3 | $ 1,470.3 | $ 1,052.0 | $ 1,470.3 |
Additions | 16.0 | 0.0 | 16.0 | 0.0 | |
Terminations | 23.9 | 5.8 | 54.3 | 29.8 | |
Balance at ending of period | 1,013.7 | 1,440.5 | 1,446.3 | 1,013.7 | 1,440.5 |
Swaps | Receive Variable/Pay Fixed | |||||
Derivative | |||||
Balance at beginning of period | 105.4 | 126.0 | 150.0 | 105.5 | 150.0 |
Additions | 0.0 | 0.0 | 0.0 | 0.0 | |
Terminations | 3.4 | 0.0 | 24.0 | 3.5 | 24.0 |
Balance at ending of period | 102.0 | 126.0 | 126.0 | 102.0 | 126.0 |
Swaps | Receive Fixed/Pay Fixed | |||||
Derivative | |||||
Balance at beginning of period | 596.2 | 650.3 | 650.3 | 616.5 | 650.3 |
Additions | 0.0 | 0.0 | 0.0 | 0.0 | |
Terminations | 4.5 | 5.8 | 24.8 | 5.8 | |
Balance at ending of period | 591.7 | 644.5 | 650.3 | 591.7 | 644.5 |
Swaps | Receive Fixed/Pay Variable | |||||
Derivative | |||||
Balance at beginning of period | 250.0 | 600.0 | 600.0 | 250.0 | 600.0 |
Additions | 0.0 | 0.0 | 0.0 | 0.0 | |
Terminations | 0.0 | 0.0 | 0.0 | 0.0 | |
Balance at ending of period | 250.0 | 600.0 | 600.0 | 250.0 | 600.0 |
Swaps | Credit Default Swaps | |||||
Derivative | |||||
Balance at beginning of period | 70.0 | 70.0 | 70.0 | 70.0 | 70.0 |
Additions | 0.0 | 0.0 | 0.0 | 0.0 | |
Terminations | 0.0 | 0.0 | 0.0 | 0.0 | |
Balance at ending of period | 70.0 | 70.0 | 70.0 | 70.0 | 70.0 |
Forwards | |||||
Derivative | |||||
Balance at beginning of period | 0.0 | 0.0 | 0.0 | 10.0 | 0.0 |
Additions | 16.0 | 0.0 | 16.0 | 0.0 | |
Terminations | 16.0 | 0.0 | 26.0 | 0.0 | |
Balance at ending of period | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.0 |
Location and Fair Values of Derivative Financial Instruments (Detail) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Derivative | ||
Asset Derivatives Fair Value | $ 27.0 | $ 32.7 |
Designated as Hedging Instrument | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 27.0 | 32.7 |
Designated as Hedging Instrument | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 20.7 | 20.3 |
Designated as Hedging Instrument | Interest Rate Swaps | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 0.0 | 0.0 |
Designated as Hedging Instrument | Interest Rate Swaps | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 4.3 | 6.9 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 27.0 | 32.7 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 16.4 | 13.4 |
Not Designated as Hedging Instrument | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 63.8 | 79.2 |
Not Designated as Hedging Instrument | Interest Rate Swaps | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 0.7 | |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 31.4 | 31.4 |
Not Designated as Hedging Instrument | Credit Risk Contract | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 0.5 | 0.4 |
Not Designated as Hedging Instrument | Embedded Derivative in Modified Coinsurance Arrangement | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | $ 31.9 | $ 46.7 |
Location of Gains and Losses on Derivative Financial Instruments Designated as Cash Flow Hedging Instruments (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ 13.8 | $ 12.3 | $ 26.1 | $ 28.1 |
Foreign Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | (4.7) | (0.2) | (9.2) | (24.5) |
Foreign Exchange Contracts | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (0.2) | (0.4) | (0.5) | (0.5) |
Foreign Exchange Contracts | Net Realized Investments Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (0.3) | (0.5) | (1.5) | (0.5) |
Interest Rate Swaps | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 14.8 | 13.6 | 29.1 | 26.8 |
Interest Rate Swaps | Net Realized Investments Gain (Loss) | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 0.0 | 0.0 | 0.0 | 3.2 |
Interest Rate Swaps | Interest Expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ (0.5) | $ (0.4) | $ (1.0) | $ (0.9) |
Gains and Losses on Derivatives Not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) on Derivatives | $ (0.3) | $ (1.1) | $ (0.5) | $ (3.6) |
Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) on Derivatives | 5.8 | 9.1 | 14.3 | 2.2 |
Not Designated as Hedging Instrument | Credit Default Swaps | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) on Derivatives | (0.1) | (0.4) | (0.4) | (0.4) |
Not Designated as Hedging Instrument | Interest Rate Swaps | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) on Derivatives | (0.1) | 0.0 | (0.1) | 0.0 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) on Derivatives | (0.2) | (0.7) | 0.0 | (2.0) |
Not Designated as Hedging Instrument | Embedded Derivative in Modified Coinsurance Arrangement | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) on Derivatives | $ 6.2 | $ 10.2 | $ 14.8 | $ 4.6 |
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Derivative | ||||||||
Current Credit Exposure on Derivatives | $ 1.1 | $ 1.1 | ||||||
Cash Collateral from Counterparties | 21.0 | 21.0 | $ 25.4 | |||||
Carrying Value of Fixed Maturity Securities Posted as Collateral to Counterparties | 40.2 | 40.2 | 35.2 | |||||
Cash Collateral to Counterparties | 0.0 | 0.0 | 0.0 | |||||
Aggregate Fair Value of all Derivative Instruments with Credit Risk-related Contingent Features in a Liability Position | 52.6 | 52.6 | 52.8 | |||||
Notional Amount of Derivatives | 1,013.7 | $ 1,440.5 | $ 1,446.3 | 1,013.7 | $ 1,440.5 | $ 1,021.6 | 1,052.0 | $ 1,470.3 |
Material Ineffectiveness on Cash Flow Hedges | 0.0 | 0.0 | 0.0 | 0.0 | ||||
Gain from Components Excluded from Assessment of Cash Flow Hedge Effectiveness | 0.0 | 0.0 | 0.0 | 0.0 | ||||
Approximate Amount of Net Deferred Gains on Derivative Instruments Expected to be Amortized During the Next Twelve Months | 60.6 | |||||||
Notional Amount Of Derivatives Terminations | 23.9 | 5.8 | 54.3 | 29.8 | ||||
Material Ineffectiveness on Fair Value Hedges | 0.0 | 0.0 | 0.0 | 0.0 | ||||
Component of Derivative Gain (Loss) Excluded from the Assessment of Hedge Effectiveness | 0.0 | 0.0 | 0.0 | 0.0 | ||||
Discontinued Hedge Accounting Due to Instrument No Longer Qualifying as Fair Value Hedge | 0.0 | 0.0 | 0.0 | 0.0 | ||||
Receive Variable/Pay Fixed | ||||||||
Derivative | ||||||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0.9 | 1.1 | 2.0 | 2.9 | ||||
Receive Fixed/Pay Variable | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 250.0 | 250.0 | 250.0 | |||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 1.1 | 1.0 | 0.6 | 6.6 | ||||
Cash Flow Hedging | Interest Rate Swaps | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 369.3 | 369.3 | 394.1 | |||||
Fair Value Hedging | Receive Variable/Pay Fixed | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 102.0 | 102.0 | 102.0 | |||||
Not Designated as Hedging Instrument | Interest Rate Swaps | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 222.4 | 222.4 | 222.4 | |||||
Not Designated as Hedging Instrument | Receive Variable/Pay Fixed | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 3.5 | |||||||
Loss on Derivative Contract Termination | 0.1 | |||||||
Not Designated as Hedging Instrument | Credit Default Swaps | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 70.0 | 70.0 | 70.0 | |||||
Receive Variable/Pay Fixed | Swaps | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 102.0 | 126.0 | 126.0 | 102.0 | 126.0 | $ 105.4 | 105.5 | $ 150.0 |
Notional Amount Of Derivatives Terminations | 3.4 | $ 0.0 | 24.0 | 3.5 | $ 24.0 | |||
Loss on Derivative Contract Termination | $ 1.2 | |||||||
Total Amount | ||||||||
Derivative | ||||||||
Cash Collateral from Counterparties | $ 21.4 | $ 21.4 | $ 26.1 |
Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Accumulated Other Comprehensive Income, Net of Tax | ||||
Balance at Beginning of Period | $ 0.4 | $ 200.7 | $ (51.0) | $ 16.1 |
Other Comprehensive Income (Loss) Before Reclassifications, Net of Tax | 111.6 | 143.9 | 170.1 | 325.9 |
Reclassification from Accumulated Other Comprehensive Income or Loss | (7.1) | (4.8) | (14.2) | (2.2) |
Net Other Comprehensive Income (Loss) | 104.5 | 139.1 | 155.9 | 323.7 |
Balance at End of Period | 104.9 | 339.8 | 104.9 | 339.8 |
Net Unrealized Gain on Securities | ||||
Accumulated Other Comprehensive Income, Net of Tax | ||||
Balance at Beginning of Period | 483.0 | 438.4 | 440.6 | 204.3 |
Other Comprehensive Income (Loss) Before Reclassifications, Net of Tax | 76.6 | 222.0 | 121.3 | 445.8 |
Reclassification from Accumulated Other Comprehensive Income or Loss | (1.4) | 0.7 | (3.7) | 11.0 |
Net Other Comprehensive Income (Loss) | 75.2 | 222.7 | 117.6 | 456.8 |
Balance at End of Period | 558.2 | 661.1 | 558.2 | 661.1 |
Net Gain on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income, Net of Tax | ||||
Balance at Beginning of Period | 316.8 | 351.8 | 327.5 | 378.0 |
Other Comprehensive Income (Loss) Before Reclassifications, Net of Tax | (3.4) | (0.2) | (6.1) | (16.1) |
Reclassification from Accumulated Other Comprehensive Income or Loss | (8.9) | (8.0) | (16.9) | (18.3) |
Net Other Comprehensive Income (Loss) | (12.3) | (8.2) | (23.0) | (34.4) |
Balance at End of Period | 304.5 | 343.6 | 304.5 | 343.6 |
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income, Net of Tax | ||||
Balance at Beginning of Period | (336.9) | (200.0) | (354.0) | (173.6) |
Other Comprehensive Income (Loss) Before Reclassifications, Net of Tax | 39.8 | (79.4) | 56.9 | (105.8) |
Reclassification from Accumulated Other Comprehensive Income or Loss | 0.0 | 0.0 | 0.0 | 0.0 |
Net Other Comprehensive Income (Loss) | 39.8 | (79.4) | 56.9 | (105.8) |
Balance at End of Period | (297.1) | (279.4) | (297.1) | (279.4) |
Unrecognized Pension and Postretirement Benefit Costs | ||||
Accumulated Other Comprehensive Income, Net of Tax | ||||
Balance at Beginning of Period | (462.5) | (389.5) | (465.1) | (392.6) |
Other Comprehensive Income (Loss) Before Reclassifications, Net of Tax | (1.4) | 1.5 | (2.0) | 2.0 |
Reclassification from Accumulated Other Comprehensive Income or Loss | 3.2 | 2.5 | 6.4 | 5.1 |
Net Other Comprehensive Income (Loss) | 1.8 | 4.0 | 4.4 | 7.1 |
Balance at End of Period | $ (460.7) | $ (385.5) | $ (460.7) | $ (385.5) |
Schedule of Components of Unrealized Gain (Loss) on Securities (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Change in Components of Net Unrealized Gain on Securities | ||||
Change in Net Unrealized Gain on Securities | $ 373.3 | $ 921.9 | $ 550.2 | $ 1,722.0 |
Fixed Maturity Securities | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | 4,925.6 | 4,894.5 | 4,664.6 | 3,695.7 |
Change in Net Unrealized Gain on Securities | 566.6 | 1,405.0 | 827.6 | 2,603.8 |
End of Period Balance | 5,492.2 | 6,299.5 | 5,492.2 | 6,299.5 |
Other Investments | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | (17.8) | (18.1) | (22.7) | (33.7) |
Change in Net Unrealized Gain on Securities | 13.2 | (3.2) | 18.1 | 12.4 |
End of Period Balance | (4.6) | (21.3) | (4.6) | (21.3) |
Deferred Acquisition Costs | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | (40.9) | (42.0) | (38.9) | (29.4) |
Change in Net Unrealized Gain on Securities | (4.9) | (10.5) | (6.9) | (23.1) |
End of Period Balance | (45.8) | (52.5) | (45.8) | (52.5) |
Reserve for Future Policy and Contract Benefits | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | (4,467.3) | (4,466.5) | (4,253.2) | (3,578.4) |
Change in Net Unrealized Gain on Securities | (480.9) | (1,112.1) | (695.0) | (2,000.2) |
End of Period Balance | (4,948.2) | (5,578.6) | (4,948.2) | (5,578.6) |
Reinsurance Recoverable | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | 335.6 | 310.2 | 321.3 | 263.2 |
Change in Net Unrealized Gain on Securities | 25.1 | 55.8 | 39.4 | 102.8 |
End of Period Balance | 360.7 | 366.0 | 360.7 | 366.0 |
Income Tax | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | (252.2) | (239.7) | (230.5) | (113.1) |
Change in Net Unrealized Gain on Securities | (43.9) | (112.3) | (65.6) | (238.9) |
End of Period Balance | (296.1) | (352.0) | (296.1) | (352.0) |
Net Unrealized Gain on Securities | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | 483.0 | 438.4 | 440.6 | 204.3 |
Change in Net Unrealized Gain on Securities | 75.2 | 222.7 | 117.6 | 456.8 |
End of Period Balance | $ 558.2 | $ 661.1 | $ 558.2 | $ 661.1 |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Net Realized Investment Gain, Excluding Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | $ 8.1 | $ 14.7 | $ 19.1 | $ 15.3 |
Other-Than-Temporary Impairment Loss | 0.0 | (9.4) | 0.0 | (30.5) |
Net Investment Income | 620.5 | 623.3 | 1,222.9 | 1,229.7 |
Interest and Debt Expense | (39.9) | (42.4) | (79.7) | (81.0) |
Other Expenses | (206.2) | (207.8) | (437.0) | (413.4) |
Income Before Income Tax | 361.6 | 340.2 | 691.9 | 644.4 |
Total Income Tax | 116.5 | 103.4 | 216.9 | 197.0 |
Net Income | 245.1 | 236.8 | 475.0 | 447.4 |
Reclassification out of Accumulated Other Comprehensive Income or Loss | Net Unrealized Gain on Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Net Realized Investment Gain, Excluding Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | 2.2 | 8.1 | 5.6 | 13.7 |
Other-Than-Temporary Impairment Loss | 0.0 | (9.4) | 0.0 | (30.5) |
Income Before Income Tax | 2.2 | (1.3) | 5.6 | (16.8) |
Total Income Tax | 0.8 | (0.6) | 1.9 | (5.8) |
Net Income | 1.4 | (0.7) | 3.7 | (11.0) |
Reclassification out of Accumulated Other Comprehensive Income or Loss | Net Gain on Cash Flow Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Income Before Income Tax | 13.8 | 12.3 | 26.1 | 28.1 |
Total Income Tax | 4.9 | 4.3 | 9.2 | 9.8 |
Net Income | 8.9 | 8.0 | 16.9 | 18.3 |
Reclassification out of Accumulated Other Comprehensive Income or Loss | Net Gain on Cash Flow Hedges | Interest Rate Swaps | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Net Realized Investment Gain, Excluding Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | 0.0 | 0.0 | 0.0 | 3.2 |
Net Investment Income | 14.8 | 13.6 | 29.1 | 26.8 |
Interest and Debt Expense | (0.5) | (0.4) | (1.0) | (0.9) |
Reclassification out of Accumulated Other Comprehensive Income or Loss | Net Gain on Cash Flow Hedges | Foreign Exchange Contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Net Realized Investment Gain, Excluding Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | (0.3) | (0.5) | (1.5) | (0.5) |
Net Investment Income | (0.2) | (0.4) | (0.5) | (0.5) |
Reclassification out of Accumulated Other Comprehensive Income or Loss | Net Actuarial Loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Other Expenses | (5.0) | (4.0) | (10.1) | (8.1) |
Reclassification out of Accumulated Other Comprehensive Income or Loss | Prior Service Credit | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Other Expenses | 0.1 | 0.1 | 0.3 | 0.2 |
Reclassification out of Accumulated Other Comprehensive Income or Loss | Unrecognized Pension and Postretirement Benefit Costs | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Income Before Income Tax | (4.9) | (3.9) | (9.8) | (7.9) |
Total Income Tax | (1.7) | (1.4) | (3.4) | (2.8) |
Net Income | $ (3.2) | $ (2.5) | $ (6.4) | $ (5.1) |
Liability for Unpaid Claims and CAE Liability for Unpaid Claims and Claims Adjustment Expense (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense | ||
Balance at January 1 | $ 23,249.5 | $ 23,796.1 |
Less Reinsurance Recoverable | 2,163.6 | 2,064.6 |
Net Balance at January 1 | 21,085.9 | 21,731.5 |
Incurred Related to | ||
Current Year | 2,772.2 | 2,732.7 |
Total Incurred | 3,269.7 | 2,937.9 |
Paid Related to | ||
Current Year | (816.2) | (767.1) |
Prior Years | (2,475.8) | (2,490.2) |
Total Paid | (3,292.0) | (3,257.3) |
Net Balance at June 30 | 21,063.6 | 21,412.1 |
Plus Reinsurance Recoverable | 2,146.6 | 2,066.3 |
Balance at June 30 | 23,210.2 | 23,478.4 |
Amount Related to Interest | ||
Incurred Related to | ||
Prior Years | 571.0 | 599.3 |
Incurred Claims | ||
Incurred Related to | ||
Prior Years | (170.6) | (191.9) |
Foreign Currency | ||
Incurred Related to | ||
Prior Years | $ 97.1 | $ (202.2) |
Liability for Unpaid Claims and CAE Reconciliation of Policy and Contract Benefits and Reserves for Future Policy and Contract Benefits (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|---|---|
Insurance [Abstract] | ||||
Policy and Contract Benefits | $ 1,552.5 | $ 1,507.9 | $ 1,486.4 | |
Reserves for Future Policy and Contract Benefits | 45,136.1 | 44,245.9 | 45,463.4 | |
Total Policy and Contract Benefits and Reserves for Future Policy and Contract Benefits | 46,688.6 | 46,949.8 | ||
Life Reserves for Future Policy and Contract Benefits | 8,136.5 | 7,970.5 | ||
Accident and Health Active Life Reserves | 10,393.7 | 9,922.3 | ||
Adjustment Related to Unrealized Investment Gains and Losses | 4,948.2 | 5,578.6 | ||
Liability for Upaid Claims and Claims Adjustment Expense | $ 23,210.2 | $ 23,249.5 | $ 23,478.4 | $ 23,796.1 |
Premium Income by Major Line of Business within Each Segment (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Segment Reporting Information | ||||
Premium Income | $ 2,142.2 | $ 2,081.6 | $ 4,285.1 | $ 4,169.1 |
Operating Segments | ||||
Segment Reporting Information | ||||
Premium Income | 2,142.2 | 2,081.6 | 4,285.1 | 4,169.1 |
Operating Segments | Unum US | ||||
Segment Reporting Information | ||||
Premium Income | 1,357.7 | 1,299.4 | 2,718.1 | 2,600.7 |
Operating Segments | Unum US | Group Long term Disability | ||||
Segment Reporting Information | ||||
Premium Income | 437.7 | 432.9 | 872.1 | 863.5 |
Operating Segments | Unum US | Group Short term Disability | ||||
Segment Reporting Information | ||||
Premium Income | 158.3 | 156.2 | 316.2 | 313.7 |
Operating Segments | Unum US | Group Life | ||||
Segment Reporting Information | ||||
Premium Income | 363.9 | 348.7 | 731.7 | 700.2 |
Operating Segments | Unum US | Accidental Death Dismemberment | ||||
Segment Reporting Information | ||||
Premium Income | 36.7 | 34.9 | 73.3 | 69.5 |
Operating Segments | Unum US | Individual Disability | ||||
Segment Reporting Information | ||||
Premium Income | 106.7 | 124.9 | 213.7 | 248.8 |
Operating Segments | Unum US | Voluntary Benefits | ||||
Segment Reporting Information | ||||
Premium Income | 213.2 | 201.8 | 428.4 | 405.0 |
Operating Segments | Unum US | Dental and Vision | ||||
Segment Reporting Information | ||||
Premium Income | 41.2 | 0.0 | 82.7 | 0.0 |
Operating Segments | Unum UK | ||||
Segment Reporting Information | ||||
Premium Income | 126.8 | 140.8 | 248.1 | 280.1 |
Operating Segments | Unum UK | Group Long term Disability | ||||
Segment Reporting Information | ||||
Premium Income | 83.8 | 95.5 | 164.6 | 188.6 |
Operating Segments | Unum UK | Group Life | ||||
Segment Reporting Information | ||||
Premium Income | 25.4 | 27.3 | 50.2 | 56.0 |
Operating Segments | Unum UK | Supplemental Insurance | ||||
Segment Reporting Information | ||||
Premium Income | 17.6 | 18.0 | 33.3 | 35.5 |
Operating Segments | Colonial Life | ||||
Segment Reporting Information | ||||
Premium Income | 376.3 | 351.4 | 750.6 | 702.6 |
Operating Segments | Colonial Life | Accident, Sickness, and Disability Insurance | ||||
Segment Reporting Information | ||||
Premium Income | 220.1 | 205.9 | 439.2 | 411.5 |
Operating Segments | Colonial Life | Life Insurance Product Line | ||||
Segment Reporting Information | ||||
Premium Income | 75.0 | 67.7 | 149.2 | 135.4 |
Operating Segments | Colonial Life | Cancer and Critical Illness Colonial | ||||
Segment Reporting Information | ||||
Premium Income | 81.2 | 77.8 | 162.2 | 155.7 |
Operating Segments | Closed Block | ||||
Segment Reporting Information | ||||
Premium Income | 281.4 | 290.0 | 568.3 | 585.7 |
Operating Segments | Closed Block | Individual Disability Insurance | ||||
Segment Reporting Information | ||||
Premium Income | 118.5 | 130.5 | 239.8 | 264.1 |
Operating Segments | Closed Block | Long-term Care | ||||
Segment Reporting Information | ||||
Premium Income | 160.9 | 158.9 | 324.0 | 320.6 |
Operating Segments | Closed Block | Other Insurance Product Line | ||||
Segment Reporting Information | ||||
Premium Income | $ 2.0 | $ 0.6 | $ 4.5 | $ 1.0 |
Selected Operating Statement Data by Segment (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Segment Reporting Information | ||||
Premium Income | $ 2,142.2 | $ 2,081.6 | $ 4,285.1 | $ 4,169.1 |
Net Investment Income | 620.5 | 623.3 | 1,222.9 | 1,229.7 |
Other Income | 51.2 | 51.1 | 101.4 | 103.1 |
Operating Segments | ||||
Segment Reporting Information | ||||
Premium Income | 2,142.2 | 2,081.6 | 4,285.1 | 4,169.1 |
Net Investment Income | 620.5 | 623.3 | 1,222.9 | 1,229.7 |
Other Income | 51.2 | 51.1 | 101.4 | 103.1 |
Operating Revenue | 2,813.9 | 2,756.0 | 5,609.4 | 5,501.9 |
Operating Income (Loss) | 353.5 | 334.9 | 693.4 | 659.6 |
Operating Segments | Unum US | ||||
Segment Reporting Information | ||||
Premium Income | 1,357.7 | 1,299.4 | 2,718.1 | 2,600.7 |
Net Investment Income | 205.6 | 207.7 | 408.1 | 415.1 |
Other Income | 30.1 | 27.9 | 58.8 | 56.9 |
Operating Revenue | 1,593.4 | 1,535.0 | 3,185.0 | 3,072.7 |
Operating Income (Loss) | 247.8 | 227.2 | 486.9 | 443.1 |
Operating Segments | Unum UK | ||||
Segment Reporting Information | ||||
Premium Income | 126.8 | 140.8 | 248.1 | 280.1 |
Net Investment Income | 33.2 | 34.0 | 59.8 | 60.8 |
Other Income | 0.0 | 0.2 | 0.0 | 0.2 |
Operating Revenue | 160.0 | 175.0 | 307.9 | 341.1 |
Operating Income (Loss) | 28.9 | 36.9 | 55.5 | 70.5 |
Operating Segments | Colonial Life | ||||
Segment Reporting Information | ||||
Premium Income | 376.3 | 351.4 | 750.6 | 702.6 |
Net Investment Income | 36.7 | 35.6 | 71.8 | 69.6 |
Other Income | 0.2 | 0.3 | 0.5 | 0.6 |
Operating Revenue | 413.2 | 387.3 | 822.9 | 772.8 |
Operating Income (Loss) | 81.8 | 77.9 | 164.2 | 155.3 |
Operating Segments | Closed Block | ||||
Segment Reporting Information | ||||
Premium Income | 281.4 | 290.0 | 568.3 | 585.7 |
Net Investment Income | 340.0 | 341.1 | 675.3 | 674.5 |
Other Income | 20.2 | 21.4 | 41.0 | 43.8 |
Operating Revenue | 641.6 | 652.5 | 1,284.6 | 1,304.0 |
Operating Income (Loss) | 32.6 | 32.6 | 64.2 | 66.3 |
Operating Segments | Corporate and Other | ||||
Segment Reporting Information | ||||
Premium Income | 0.0 | 0.0 | 0.0 | 0.0 |
Net Investment Income | 5.0 | 4.9 | 7.9 | 9.7 |
Other Income | 0.7 | 1.3 | 1.1 | 1.6 |
Operating Revenue | 5.7 | 6.2 | 9.0 | 11.3 |
Operating Income (Loss) | $ (37.6) | $ (39.7) | $ (77.4) | $ (75.6) |
Assets by Segment (Detail) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Segment Reporting Information | ||
Assets | $ 63,381.6 | $ 61,941.5 |
Operating Segments | ||
Segment Reporting Information | ||
Assets | 63,381.6 | 61,941.5 |
Operating Segments | Unum US | ||
Segment Reporting Information | ||
Assets | 18,232.8 | 18,036.6 |
Operating Segments | Unum UK | ||
Segment Reporting Information | ||
Assets | 3,358.1 | 3,101.4 |
Operating Segments | Colonial Life | ||
Segment Reporting Information | ||
Assets | 4,039.8 | 3,923.2 |
Operating Segments | Closed Block | ||
Segment Reporting Information | ||
Assets | 34,466.6 | 33,734.3 |
Operating Segments | Corporate and Other | ||
Segment Reporting Information | ||
Assets | $ 3,284.3 | $ 3,146.0 |
Reconciliation of Operating Revenue and Operating Income by Segment to Revenue and Income Before Tax (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Segment Reporting, Revenue Reconciling Item | ||||
Total Revenue | $ 2,822.0 | $ 2,761.3 | $ 5,628.5 | $ 5,486.7 |
Net Realized Investment Gain (Loss) | 8.1 | 5.3 | 19.1 | (15.2) |
Income Before Income Tax | 361.6 | 340.2 | 691.9 | 644.4 |
Net Realized Investment Gain (Loss) | 8.1 | 5.3 | 19.1 | (15.2) |
Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Total Revenue | 2,822.0 | 2,761.3 | 5,628.5 | 5,486.7 |
Net Realized Investment Gain (Loss) | 8.1 | 5.3 | 19.1 | (15.2) |
Operating Revenue | 2,813.9 | 2,756.0 | 5,609.4 | 5,501.9 |
Income Before Income Tax | 361.6 | 340.2 | 691.9 | 644.4 |
Net Realized Investment Gain (Loss) | 8.1 | 5.3 | 19.1 | (15.2) |
Loss Related to Guaranty Fund Assessment | 0.0 | 0.0 | (20.6) | 0.0 |
Operating Income | $ 353.5 | $ 334.9 | $ 693.4 | $ 659.6 |
Segment Information Segment Information - Additional Information (Details) |
6 Months Ended |
---|---|
Jun. 30, 2017
Integer
| |
Segment Reporting [Abstract] | |
Number of Operating Segments | 3 |
Employee Benefit Plans Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Pension Plan | Domestic Plan | ||||
Defined Benefit Plan and Other Postretirement Benefit Plans Disclosure | ||||
Service Cost | $ 1.9 | $ 1.8 | $ 3.9 | $ 3.5 |
Interest Cost | 21.1 | 21.3 | 42.2 | 42.6 |
Expected Return on Plan Assets | (25.7) | (25.7) | (51.5) | (51.4) |
Amortization of Net Actuarial Loss | 4.9 | 4.0 | 9.8 | 8.1 |
Amortization of Prior Service Credit | 0.0 | 0.0 | (0.1) | (0.1) |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 0.0 | 0.0 | 0.0 | 0.0 |
Net Periodic Benefit Cost | 2.2 | 1.4 | 4.3 | 2.7 |
Pension Plan | Foreign Plan | ||||
Defined Benefit Plan and Other Postretirement Benefit Plans Disclosure | ||||
Service Cost | 0.0 | 0.0 | 0.0 | 0.0 |
Interest Cost | 1.5 | 1.8 | 3.0 | 3.7 |
Expected Return on Plan Assets | (1.8) | (2.7) | (3.8) | (5.4) |
Amortization of Net Actuarial Loss | 0.1 | 0.0 | 0.3 | 0.0 |
Amortization of Prior Service Credit | 0.0 | 0.0 | 0.0 | 0.0 |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 0.0 | 0.0 | 0.0 | 0.0 |
Net Periodic Benefit Cost | (0.2) | (0.9) | (0.5) | (1.7) |
OPEB Plan | ||||
Defined Benefit Plan and Other Postretirement Benefit Plans Disclosure | ||||
Service Cost | 0.0 | 0.0 | 0.0 | 0.0 |
Interest Cost | 1.5 | 1.8 | 3.0 | 3.6 |
Expected Return on Plan Assets | (0.1) | (0.1) | (0.3) | (0.3) |
Amortization of Net Actuarial Loss | 0.0 | 0.0 | 0.0 | 0.0 |
Amortization of Prior Service Credit | (0.1) | (0.1) | (0.2) | (0.1) |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 0.0 | 0.9 | 0.0 | 0.9 |
Net Periodic Benefit Cost | $ 1.3 | $ 2.5 | $ 2.5 | $ 4.1 |
Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Numerator | ||||
Net Income | $ 245.1 | $ 236.8 | $ 475.0 | $ 447.4 |
Denominator (000s) | ||||
Weighted Average Common Shares - Basic | 227,454,400 | 236,892,800 | 228,437,000 | 238,254,300 |
Dilution for Assumed Exercises of Stock Options and Nonvested Stock Awards | 724,300 | 426,000 | 836,800 | 368,500 |
Weighted Average Common Shares - Assuming Dilution | 228,178,700 | 237,318,800 | 229,273,800 | 238,622,800 |
Net Income Per Common Share | ||||
Basic | $ 1.08 | $ 1.00 | $ 2.08 | $ 1.88 |
Assuming Dilution | $ 1.07 | $ 1.00 | $ 2.07 | $ 1.87 |
Stockholders' Equity and Earnings Per Common Share Treasury Stock Transactions (Details) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Equity, Class of Treasury Stock | ||||
Number of Treasury Shares Repurchased | 2.2 | 2.8 | 4.3 | 6.5 |
Cost of Shares Repurchased | $ 100.1 | $ 100.1 | $ 200.1 | $ 200.1 |
Commission Paid on Common Stock Repurchased | 0.1 | $ 0.1 | 0.1 | $ 0.1 |
Repurchase Program Authorized in May 2017 | ||||
Equity, Class of Treasury Stock | ||||
Authorized Stock Repurchases | 750.0 | 750.0 | ||
Remaining Authorized Share Repurchases | 712.9 | 712.9 | ||
Repurchase Program Authorized in May 2016 | ||||
Equity, Class of Treasury Stock | ||||
Authorized Stock Repurchases | $ 750.0 | $ 750.0 |
Stockholders' Equity and Earnings Per Common Share - Additional Information (Detail) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Stockholders Equity and Earnings Per Common Share Additional Information [Abstract] | ||||
Exercise Price Floor on Outstanding Stock Options | $ 20.78 | |||
Exercise Price Ceiling on Outstanding Stock Options | 26.29 | |||
Outstanding Restricted Stock Unit Grant Prices Lower Limit | 27.85 | |||
Outstanding Restricted Stock Unit Grant Prices Upper Limit | 49.86 | |||
Outstanding Performance Share Unit Awards Grant Price Range Lower Limit | 27.85 | |||
Outstanding Performance Share Unit Awards Grant Price Range Upper Limit | $ 49.86 | |||
Number of Antidilutive Securities Excluded from Computation of Earnings Per Share | 400,000 | 500,000 | 400,000 | 500,000 |
Authorized Shares of Preferred Stock | 25,000,000 | 25,000,000 | ||
Par Value Per Share of Preferred Stock | $ 0.10 | $ 0.10 | ||
Issued Shares of Preferred Stock | 0 | 0 |
Commitments and Contingent Liabilities Commitments and Contingent Liabilities - Additional Information (Details) - Settled Litigation - Unfavorable Regulatory Action $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2017
USD ($)
| |
Loss Contingencies | |
Loss Contingency Accrual, Insurance-related Assessment, Premium Tax Offset | $ 44.0 |
Loss Contingency, Loss in Period, Tax | 7.2 |
Net of Tax | |
Loss Contingencies | |
Loss Contingency, Loss in Period | $ 13.4 |
Debt - Additional Information (Detail) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2017
USD ($)
| |
Debt Narrative Detail Information | |
Letters of Credit Outstanding, Amount | $ 2.1 |
Amount Outsanding on Credit Facility | 0.0 |
Northwind Holdings LLC | |
Debt Narrative Detail Information | |
Principal Payments on Long-term Debt | 30.0 |
Long-term Debt | |
Debt Narrative Detail Information | |
Extinguishment of Debt, Amount | 3.4 |
Receive Variable/Pay Fixed | Net Realized Investments Gain (Loss) | |
Debt Narrative Detail Information | |
Loss on Derivative Contract Termination | $ 0.1 |
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