Segments

12 Months Ended

Dec. 31, 2014

Segments [Abstract]

Segments

5. SEGMENTS

The Company collectively views and operates its businesses as Insurance Services and Asset Management. Insurance Services contains two reportable product segments, Employee Benefits and Individual Disability. Insurance Services offers group and individual disability insurance, group life and AD&D insurance, group dental and group vision insurance, and absence management services. Asset Management is a separate reportable segment. Asset Management provides investment and asset management products and services. Asset Management offers full-service 401(k) plans, 403(b) plans, 457 plans, defined benefit plans, money purchase pension plans, profit sharing plans and non-qualified deferred compensation products and services. Asset Management also offers investment advisory and management services, origination and servicing of fixed-rate commercial mortgage loans, individual fixed and indexed annuity products, group annuity contracts and retirement plan trust products. The Other category includes return on capital not allocated to the product segments, holding company expenses, operations of certain unallocated subsidiaries, interest on debt, unallocated expenses, net capital gains and losses primarily related to the impairment or the disposition of the Company’s invested assets and adjustments made in consolidation. Resources are allocated and performance is evaluated at the segment level.The accounting policies of the segments are the same as those described in the summary of significant accounting policies. See “Note 1—Summary of Significant Accounting Policies.”

Intersegment revenues are comprised of administrative fees charged by Asset Management to manage the fixed maturity securities and commercial mortgage loan portfolios for the Company’s insurance subsidiaries. Intersegment fees are determined based on the level of assets in the insurance subsidiaries’ fixed maturity securities and commercial mortgage loan portfolios.

The following table sets forth intersegment revenues:

	Years ended
	December 31,
(In millions)	2014		2013		2012
Intersegment administrative fees	$	19.3	$	18.6	$	17.9

The following table sets forth premiums, administrative fees and net investment income by major product line or category within each of the Company’s segments:

						Years ended
						December 31,
(In millions)						2014		2013		2012
Premiums:
	Insurance Services:
		Group life and AD&D				$	808.6	$	849.7	$	883.7
		Group long term disability					753.8		783.0		801.4
		Group short term disability					219.0		229.0		212.6
		Group other					79.0		78.3		78.9
		Experience rated refunds					(17.6)		(13.1)		4.0
			Total Employee Benefits				1,842.8		1,926.9		1,980.6
			Individual Disability				199.1		190.5		176.6
				Total Insurance Services premiums			2,041.9		2,117.4		2,157.2
	Asset Management:
			Retirement plans				1.7		2.2		1.9
			Individual annuities				8.8		4.7		4.8
				Total Asset Management premiums			10.5		6.9		6.7
					Total premiums	$	2,052.4	$	2,124.3	$	2,163.9
Administrative fees:
	Insurance Services:
			Employee Benefits			$	16.5	$	15.1	$	13.7
			Individual Disability				0.2		0.2		0.2
				Total Insurance Services administrative fees			16.7		15.3		13.9
	Asset Management:
			Retirement plans				99.7		93.3		88.0
			Other financial services businesses				33.7		31.6		30.8
				Total Asset Management administrative fees			133.4		124.9		118.8
	Other administrative fees						(19.3)		(18.6)		(18.0)
					Total administrative fees	$	130.8	$	121.6	$	114.7
Net investment income:
	Insurance Services:
			Employee Benefits			$	247.4	$	267.8	$	286.0
			Individual Disability				52.1		52.8		53.7
				Total Insurance Services net investment income			299.5		320.6		339.7
	Asset Management:
			Retirement plans				113.2		103.2		94.9
			Individual annuities				155.9		177.2		170.6
			Other financial services businesses				14.2		12.8		13.1
				Total Asset Management net investment income			283.3		293.2		278.6
	Other net investment income						18.1		16.1		10.2
					Total net investment income	$	600.9	$	629.9	$	628.5

The following tables set forth select segment information:

				Year ended
				December 31, 2014
								Total
				Employee		Individual		Insurance		Asset
(In millions)				Benefits		Disability		Services		Management		Other		Total
Revenues:
	Premiums			$	1,842.8	$	199.1	$	2,041.9	$	10.5	$	---	$	2,052.4
	Administrative fees				16.5		0.2		16.7		133.4		(19.3)		130.8
	Net investment income				247.4		52.1		299.5		283.3		18.1		600.9
	Net capital losses				---		---		---		---		(14.0)		(14.0)
			Total revenues		2,106.7		251.4		2,358.1		427.2		(15.2)		2,770.1
Benefits and expenses:
	Benefits to policyholders				1,431.4		130.0		1,561.4		20.8		---		1,582.2
	Interest credited				2.6		---		2.6		162.0		---		164.6
	Operating expenses				321.4		27.8		349.2		122.7		(1.3)		470.6
	Commissions and bonuses				122.6		48.0		170.6		36.6		---		207.2
	Premium taxes				27.9		3.6		31.5		---		---		31.5
	Interest expense				---		---		---		---		31.8		31.8
	Net (increase) decrease in DAC,
		VOBA and other intangible assets			(1.0)		(10.9)		(11.9)		7.2		---		(4.7)
			Total benefits and expenses		1,904.9		198.5		2,103.4		349.3		30.5		2,483.2
Income (loss) before income taxes				$	201.8	$	52.9	$	254.7	$	77.9	$	(45.7)	$	286.9
Total assets				$	5,952.5	$	2,399.5	$	8,352.0	$	14,025.6	$	352.3	$	22,729.9

				Year ended
				December 31, 2013
								Total
				Employee		Individual		Insurance		Asset
(In millions)				Benefits		Disability		Services		Management		Other		Total
Revenues:
	Premiums			$	1,926.9	$	190.5	$	2,117.4	$	6.9	$	---	$	2,124.3
	Administrative fees				15.1		0.2		15.3		124.9		(18.6)		121.6
	Net investment income				267.8		52.8		320.6		293.2		16.1		629.9
	Net capital losses				---		---		---		---		(15.7)		(15.7)
			Total revenues		2,209.8		243.5		2,453.3		425.0		(18.2)		2,860.1
Benefits and expenses:
	Benefits to policyholders				1,515.9		121.8		1,637.7		17.7		---		1,655.4
	Interest credited				4.3		---		4.3		172.1		---		176.4
	Operating expenses				313.3		26.7		340.0		116.5		(13.9)		442.6
	Commissions and bonuses				126.7		47.5		174.2		33.7		---		207.9
	Premium taxes				31.3		3.9		35.2		0.1		---		35.3
	Interest expense				---		---		---		---		34.4		34.4
	Net decrease (increase) in DAC,
		VOBA and other intangible assets			1.9		(12.4)		(10.5)		5.6		---		(4.9)
			Total benefits and expenses		1,993.4		187.5		2,180.9		345.7		20.5		2,547.1
Income (loss) before income taxes				$	216.4	$	56.0	$	272.4	$	79.3	$	(38.7)	$	313.0
Total assets				$	5,744.7	$	2,343.4	$	8,088.1	$	12,777.1	$	528.1	$	21,393.3

				Year ended
				December 31, 2012
								Total
				Employee		Individual		Insurance		Asset
(In millions)				Benefits		Disability		Services		Management		Other		Total
Revenues:
	Premiums			$	1,980.6	$	176.6	$	2,157.2	$	6.7	$	---	$	2,163.9
	Administrative fees				13.7		0.2		13.9		118.8		(18.0)		114.7
	Net investment income				286.0		53.7		339.7		278.6		10.2		628.5
	Net capital losses				---		---		---		---		(8.7)		(8.7)
			Total revenues		2,280.3		230.5		2,510.8		404.1		(16.5)		2,898.4
Benefits and expenses:
	Benefits to policyholders				1,657.1		116.2		1,773.3		19.7		---		1,793.0
	Interest credited				4.2		---		4.2		167.1		---		171.3
	Operating expenses				323.6		25.5		349.1		117.4		4.0		470.5
	Commissions and bonuses				125.1		47.6		172.7		31.0		---		203.7
	Premium taxes				33.6		3.9		37.5		---		---		37.5
	Interest expense				---		---		---		---		39.9		39.9
	Net decrease (increase) in DAC,
		VOBA and other intangible assets			6.9		(12.7)		(5.8)		4.9		---		(0.9)
			Total benefits and expenses		2,150.5		180.5		2,331.0		340.1		43.9		2,715.0
Income (loss) before income taxes				$	129.8	$	50.0	$	179.8	$	64.0	$	(60.4)	$	183.4
Total assets				$	5,991.4	$	2,259.4	$	8,250.8	$	11,046.0	$	494.5	$	19,791.3