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Fair Value (Tables)

12 Months Ended

Dec. 31, 2014

Estimated Fair Value and the Carrying Value of Each Financial Instrument Categorized by Fair Value Hierarcy

				December 31, 2014
				Carrying		Fair
(In millions)				Value		Value		Level 1		Level 2		Level 3

Assets:
	Fixed maturity securities:
		Corporate bonds		$	7,272.6	$	7,272.6	$	---	$	7,183.6	$	89.0
		U.S. government and agency bonds			300.1		300.1		---		300.1		---
		U.S. state and political subdivision bonds			136.1		136.1		---		136.1		---
		Foreign government bonds			64.9		64.9		---		64.9		---
			Total fixed maturity securities	$	7,773.7	$	7,773.7	$	---	$	7,684.7	$	89.0

	Commercial mortgage loans, net			$	5,321.1	$	6,021.5	$	---	$	---	$	6,021.5
	S&P 500 Index options				13.6		13.6		---		---		13.6
	Policy loans				2.2		2.2		---		---		2.2
	Separate account assets				7,179.8		7,179.8		7,066.4		113.4		---

Liabilities:
	Other policyholder funds,
		investment-type contracts		$	5,961.1	$	6,232.5	$	---	$	---	$	6,232.5
	Index-based interest guarantees				77.0		77.0		---		---		77.0
	Interest rate swaps				4.7		4.7		---		4.7		---
	Short-term debt				1.1		1.5		---		1.5		---
	Long-term debt				503.9		538.4		---		538.4		---

				December 31, 2013
				Carrying		Fair
(In millions)				Value		Value		Level 1		Level 2		Level 3

Assets:
	Fixed maturity securities:
		Corporate bonds		$	6,545.7	$	6,545.7	$	---	$	6,429.7	$	116.0
		U.S. government and agency bonds			353.2		353.2		---		353.2		---
		U.S. state and political subdivision bonds			140.3		140.3		---		140.3		---
		Foreign government bonds			65.5		65.5		---		65.5		---
		S&P 500 Index options			15.8		15.8		---		---		15.8
			Total fixed maturity securities	$	7,120.5	$	7,120.5	$	---	$	6,988.7	$	131.8

	Commercial mortgage loans, net			$	5,405.1	$	5,769.6	$	---	$	---	$	5,769.6
	Policy loans				2.5		2.5		---		---		2.5
	Separate account assets				6,393.2		6,393.2		6,249.2		144.0		---

Liabilities:
	Other policyholder funds,
		investment-type contracts		$	5,469.8	$	5,632.7	$	---	$	---	$	5,632.7
	Index-based interest guarantees				67.6		67.6		---		---		67.6
	Short-term debt				1.5		1.9		---		1.9		---
	Long-term debt				551.9		553.6		---		553.6		---

Valuation Techniques Fair Values Of Assets And Liabilities Measured And Recorded At Fair Value On A Recurring Basis

December 31, 2014

December 31, 2013

Fair

Range

Fair

Range

(Dollars in millions)

Valuation Technique

Unobservable Input

Value

of Inputs

Value

of Inputs

S&P 500 Index options

Black-Scholes option pricing model

Various assumptions

13.6

(a)

15.8

(a)

Index-based interest

Discounted cash

Expected future

77.0

1% - 3%

67.6

1% - 6%

guarantees

flow

option purchase

Various assumptions

(b)

Black-Scholes option pricing model

Various assumptions

(a)

Commercial mortgage loans

Appraisals

Reduction on appraisal

56.0

0% - 37%

68.7

0% - 13%

Cash flows

Capitalization rate (c)

7% - 16%

Real Estate Owned

Appraisals

Reduction on appraisal

10.3

0% - 11%

35.2

0% - 53%

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% for both December 31, 2014 and December 31, 2013.
Capitalization rates are used as an internal analysis in converting the underlying property income to an estimated property value.

Reconciliation For All Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Significant Unobservable Level 3 Inputs

		Year ended December 31, 2014
		Assets										Liabilities
				U.S.		U.S. State						Index-
				Government		and Political		S&P 500				Based
		Corporate		and Agency		Subdivision		Index		Total		Interest
(In millions)		Bonds		Bonds		Bonds		Options		Assets		Guarantees

Beginning balance		$	116.0	$	---	$	---	$	15.8	$	131.8	$	67.6
Total realized/unrealized gains (losses):
	Included in net income		---		---		---		8.6		8.6		7.2
	Included in other comprehensive income (loss)		(3.8)		---		---		---		(3.8)		---
Purchases, issuances, sales and settlements:
	Purchases		---		---		---		9.3		9.3		---
	Issuances		---		---		---		---		---		12.2
	Sales		---		---		---		---		---		---
	Settlements		---		---		---		(20.1)		(20.1)		(10.0)
Transfers into Level 3			8.4		---		---		---		8.4		---
Transfers out of Level 3			(31.6)		---		---		---		(31.6)		---

Ending balance		$	89.0	$	---	$	---	$	13.6	$	102.6	$	77.0

		Year ended December 31, 2013
		Assets										Liabilities
				U.S.		U.S. State						Index-
				Government		and Political		S&P 500				Based
		Corporate		and Agency		Subdivision		Index		Total		Interest
(In millions)		Bonds		Bonds		Bonds		Options		Assets		Guarantees

Beginning balance		$	80.4	$	1.1	$	1.7	$	11.3	$	94.5	$	57.4
Total realized/unrealized gains (losses):
	Included in net income		---		---		---		14.4		14.4		9.0
	Included in other comprehensive income (loss)		6.2		---		---		---		6.2		---
Purchases, issuances, sales and settlements:
	Purchases		---		---		---		9.4		9.4		---
	Issuances		---		---		---		---		---		6.0
	Sales		---		---		---		---		---		---
	Settlements		---		---		---		(19.3)		(19.3)		(4.8)
Transfers into Level 3			61.6		---		---		---		61.6		---
Transfers out of Level 3			(32.2)		(1.1)		(1.7)		---		(35.0)		---

Ending balance		$	116.0	$	---	$	---	$	15.8	$	131.8	$	67.6

Changes In Unrealized Gains (Losses) Included In Net Income Relating To Positions Still Held

		Years ended
		December 31,
(In millions)		2014		2013

Assets:
	S&P 500 Index options	$	4.3	$	6.4

Liabilities:
	Index-based interest guarantees	$	14.0	$	(12.9)

Assets Measured At Fair Value On A Nonrecurring Basis And Still Held As Of The Balance Sheet Date

		December 31, 2014
(In millions)		Total		Level 1		Level 2		Level 3

Commercial mortgage loans		$	56.0	$	---	$	---	$	56.0
Real Estate Owned			10.3		---		---		10.3

	Total assets measured at fair value on a nonrecurring basis	$	66.3	$	---	$	---	$	66.3

		December 31, 2013
(In millions)		Total		Level 1		Level 2		Level 3

Commercial mortgage loans		$	68.7	$	---	$	---	$	68.7
Real Estate Owned			35.2		---		---		35.2

	Total assets measured at fair value on a nonrecurring basis	$	103.9	$	---	$	---	$	103.9

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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