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Fair Value (Tables)
3 Months Ended
Sep. 30, 2012
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Abstract  
Estimated Fair Value and the Carrying Value of Each Financial Instrument Categorized by Fair Value Hierarcy
      September 30, 2012
      Carrying  Fair      
      Value Value Level 1 Level 2 Level 3
                    
      (In millions)
Assets:
 Fixed maturity securities:  
  Corporate bonds$6,427.5 $6,427.5 $0.0 $6,360.8 $66.7
  U.S. government and agency bonds 430.3  430.3  0.0  430.3  0.0
  U.S. state and political subdivision bonds 176.5  176.5  0.0  174.8  1.7
  Foreign government bonds 72.3  72.3  0.0  72.3  0.0
  S&P 500 Index options 13.8  13.8  0.0  0.0  13.8
   Total fixed maturity securities$7,120.4 $7,120.4 $0.0 $7,038.2 $82.2
                   
 Commercial mortgage loans, net$5,149.0 $5,838.5 $0.0 $0.0 $5,838.5
 Policy loans 2.5  2.5  0.0  0.0  2.5
 Separate account assets  5,071.8  5,071.8  4,926.5  145.3  0.0
                   
Liabilities:              
 Total other policyholder funds, investment              
  type contracts$4,700.4 $5,088.7 $0.0 $0.0 $5,088.7
 Index-based interest guarantees 58.6  58.6  0.0  0.0  58.6
 Short-term debt 1.1  0.7  0.0  0.7  0.0
 Long-term debt 551.5  568.7  0.0  568.7  0.0
                   
                    

      December 31, 2011
      Carrying  Fair      
      Value Value Level 1 Level 2 Level 3
                    
      (In millions)
Assets:
 Fixed maturity securities:  
  Corporate bonds$6,059.3 $6,059.3 $0.0 $5,995.3 $64.0
  U.S. government and agency bonds 452.1  452.1  0.0  451.6  0.5
  U.S. state and political subdivision bonds 178.8  178.8  0.0  177.4  1.4
  Foreign government bonds 72.1  72.1  0.0  72.1  0.0
  S&P 500 Index options 7.2  7.2  0.0  0.0  7.2
   Total fixed maturity securities$6,769.5 $6,769.5 $0.0 $6,696.4 $73.1
                   
 Commercial mortgage loans, net$4,902.3 $5,450.9 $0.0 $0.0 $5,450.9
 Policy loans 2.9  2.9  0.0  0.0  2.9
 Separate account assets  4,593.5  4,593.5  4,444.4  149.1  0.0
                   
Liabilities:              
 Total other policyholder funds, investment              
  type contracts$4,449.2 $4,804.8 $0.0 $0.0 $4,804.8
 Index-based interest guarantees 49.5  49.5  0.0  0.0  49.5
 Short-term debt 251.2  263.7  0.0  263.7  0.0
 Long-term debt 300.9  272.0  0.0  272.0  0.0
Estimated Fair Values of Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
   September 30, 2012
    
   Fair Value Valuation Technique Unobservable Input Range of inputs
   (Dollars in millions)
    
         
S&P 500 Index options$ 13.8 Black-Scholes option pricing model Various assumptions (a)
           
Index-based interest guarantees  58.6 Discounted cash flow Expected future option purchase 1%-5%
        Various assumptions (b)
      Black-Scholes option pricing model Various assumptions (a)
           
Commercial mortgage loans  55.1 Appraisals Reduction on appraisal  0%-43%
      Cash flows Capitalization rate (c) 7%-14%
         
Real estate owned  32.9 Appraisals Reduction on appraisal  0%-44%

  • Represents various assumptions derived from market data, which include estimates of bid ask spreads and the implied volatilities for the S&P 500 index.
  • Represents various actuarial assumptions which include combined lapse, mortality and withdrawal decrement rates which generally have a range of inputs from 5%-36%.
  • Capitalization rates are used as an internal analysis in converting the underlying property's income to an estimated property value.

 

Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Level 3 Inputs
   Three Months Ended September 30, 2012
   Assets Liabilities
   U.S. U.S. State          Index-
  Government and Political    S&P 500    Based
  and Agency Subdivision Corporate Index Total Interest
  Bonds Bonds Bonds Options Assets Guarantees
                    
   (In millions)
Beginning balance$0.0 $1.8 $58.6 $12.4 $72.8 $56.0
Total realized/unrealized gains (losses):                 
 Included in net income 0.0  0.0  0.0  2.9  2.9  2.5
 Included in other comprehensive income (loss) 0.0  (0.1)  0.4  0.0  0.3  0.0
Purchases, issuances, sales and settlements:                 
 Purchases 0.0  0.0  8.2  2.1  10.3  0.0
 Issuances 0.0  0.0  0.0  0.0  0.0  0.9
 Sales 0.0  0.0  (0.1)  0.0  (0.1)  0.0
 Settlements 0.0  0.0  0.0  (3.6)  (3.6)  (0.8)
Transfers into level 3 0.0  0.0  (0.4)  0.0  (0.4)  0.0
Transfers out of level 3 0.0  0.0  0.0  0.0  0.0  0.0
                    
Ending balance$0.0 $1.7 $66.7 $13.8 $82.2 $58.6

   Three Months Ended September 30, 2011
   Assets Liabilities
   U.S. U.S. State          Index-
  Government and Political    S&P 500    Based
  and Agency Subdivision Corporate Index Total Interest
  Bonds Bonds Bonds Options Assets Guarantees
                    
   (In millions)
Beginning balance$0.7 $1.4 $55.2 $12.8 $70.1 $51.1
Total realized/unrealized gains (losses):                 
 Included in net income 0.0  0.0  0.0  (6.8)  (6.8)  (3.8)
 Included in other comprehensive income (loss) (0.1)  0.0  0.6  0.0  0.5  0.0
Purchases, issuances, sales and settlements:                 
 Purchases 0.0  0.0  0.0  2.2  2.2  0.0
 Issuances 0.0  0.0  0.0  0.0  0.0  0.4
 Sales 0.0  0.0  (0.2)  0.0  (0.2)  0.0
 Settlements 0.0  0.0  0.0  (3.8)  (3.8)  (0.5)
Transfers into level 3 0.0  0.0  6.1  0.0  6.1  0.0
Transfers out of level 3 0.0  0.0  0.0  0.0  0.0  0.0
                    
Ending balance$0.6 $1.4 $61.7 $4.4 $68.1 $47.2

   Nine Months Ended September 30, 2012
   Assets Liabilities
 U.S. U.S. State          Index-
 Government and Political    S&P 500    Based
 and Agency Subdivision Corporate Index Total Interest
 Bonds Bonds Bonds Options Assets Guarantees
                    
   (In millions)
Beginning balance$0.5 $1.4 $64.0 $7.2 $73.1 $49.5
Total realized/unrealized gains (losses):                 
 Included in net income 0.0  0.0  0.0  7.3  7.3  7.2
 Included in other comprehensive income (loss) 0.0  (0.1)  (1.0)  0.0  (1.1)  0.0
Purchases, issuances, sales and settlements:                 
 Purchases 0.0  0.0  8.2  6.9  15.1  0.0
 Issuances 0.0  0.0  0.0  0.0  0.0  4.1
 Sales 0.0  0.0  (0.1)  0.0  (0.1)  0.0
 Settlements 0.0  0.0  0.0  (7.6)  (7.6)  (2.2)
Transfers into level 3 0.0  0.4  5.1  0.0  5.5  0.0
Transfers out of level 3 (0.5)  0.0  (9.5)  0.0  (10.0)  0.0
                    
Ending balance$0.0 $1.7 $66.7 $13.8 $82.2 $58.6

   Nine Months Ended September 30, 2011
   Assets Liabilities
   U.S. U.S. State          Index-
  Government and Political    S&P 500    Based
  and Agency Subdivision Corporate Index Total Interest
  Bonds Bonds Bonds Options Assets Guarantees
                    
   (In millions)
Beginning balance$0.9 $1.7 $59.0 $13.3 $74.9 $48.5
Total realized/unrealized gains (losses):                 
 Included in net income 0.0  0.0  0.0  (3.0)  (3.0)  (1.7)
 Included in other comprehensive income (loss) (0.3)  0.1  (1.5)  0.0  (1.7)  0.0
Purchases, issuances, sales and settlements:                 
 Purchases 0.0  0.0  0.0  6.9  6.9  0.0
 Issuances 0.0  0.0  0.0  0.0  0.0  1.6
 Sales 0.0  0.0  (1.9)  0.0  (1.9)  0.0
 Settlements 0.0  0.0  0.0  (12.8)  (12.8)  (1.2)
Transfers into level 3 0.0  0.0  6.1  0.0  6.1  0.0
Transfers out of level 3 0.0  (0.4)  0.0  0.0  (0.4)  0.0
                    
Ending balance$0.6 $1.4 $61.7 $4.4 $68.1 $47.2
Changes in unrealized gains (losses) included in net income relating to positions still held
  Three Months Ended Nine Months Ended
  September 30, September 30,
  2012 2011 2012 2011
             
  (In millions)
Assets:           
 S&P 500 Index options$2.7 $(7.0) $4.0 $(5.9)
            
Liabilities:           
 Index-based interest guarantees$(5.4) $3.0 $(11.8) $(1.4)
Assets measured at fair value on a nonrecurring basis and still held as of the balance sheet date
  September 30, 2012
 Total Level 1 Level 2 Level 3
             
 (In millions)
Commercial mortgage loans$55.1 $0.0 $0.0 $55.1
Real estate owned 32.9  0.0  0.0  32.9
             
 Total assets measured at fair value on a nonrecurring basis$88.0 $0.0 $0.0 $88.0

  December 31, 2011
 Total Level 1 Level 2 Level 3
             
 (In millions)
Commercial mortgage loans$49.2 $0.0 $0.0 $49.2
Real estate owned 50.1  0.0  0.0  50.1
             
 Total assets measured at fair value on a nonrecurring basis$99.3 $0.0 $0.0 $99.3