Segments

3 Months Ended

Mar. 31, 2015

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.

Intersegment revenues are comprised of administrative fees charged by Asset Management to manage the fixed maturity securities—available-for-sale (“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:

	Three Months Ended
	March 31,
	2015		2014
	(In millions)
Intersegment administrative fees	$	5.0	$	4.8

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:

						Three Months Ended
						March 31,
						2015		2014
						(In millions)
Premiums:
	Insurance Services:
		Group life and AD&D				$	214.3	$	200.2
		Group long term disability					195.1		189.2
		Group short term disability					60.1		54.3
		Group other					21.1		19.2
		Experience rated refunds					(12.6)		(3.5)
			Total Employee Benefits				478.0		459.4
			Individual Disability				50.4		48.1
				Total Insurance Services premiums			528.4		507.5
	Asset Management:
			Retirement plans				0.5		1.1
			Individual annuities				3.2		1.5
				Total Asset Management premiums			3.7		2.6
					Total premiums	$	532.1	$	510.1
Administrative fees:
	Insurance Services:
			Employee Benefits			$	4.0	$	4.2
				Total Insurance Services administrative fees			4.0		4.2
	Asset Management:
			Retirement plans				24.8		24.0
			Other financial services businesses				8.9		8.2
				Total Asset Management administrative fees			33.7		32.2
			Other administrative fees				(5.0)		(4.8)
					Total administrative fees	$	32.7	$	31.6
Net investment income:
	Insurance Services:
			Employee Benefits			$	63.9	$	65.2
			Individual Disability				13.7		13.4
				Total Insurance Services net investment income			77.6		78.6
	Asset Management:
			Retirement plans				29.7		27.0
			Individual annuities				36.6		40.3
			Other financial services businesses				4.9		2.2
				Total Asset Management net investment income			71.2		69.5
			Other net investment income				4.5		5.8
					Total net investment income	$	153.3	$	153.9

The following tables set forth select segment information:

				Three Months Ended March 31, 2015
								Total
				Employee		Individual		Insurance		Asset
				Benefits		Disability		Services		Management		Other		Total
				(In millions)
Revenues:
	Premiums			$	478.0	$	50.4	$	528.4	$	3.7	$	---	$	532.1
	Administrative fees				4.0		---		4.0		33.7		(5.0)		32.7
	Net investment income				63.9		13.7		77.6		71.2		4.5		153.3
	Net capital losses				---		---		---		---		(8.6)		(8.6)
			Total revenues		545.9		64.1		610.0		108.6		(9.1)		709.5
Benefits and expenses:
	Benefits to policyholders				369.5		22.3		391.8		6.9		---		398.7
	Interest credited				0.7		---		0.7		40.4		---		41.1
	Operating expenses				83.0		7.6		90.6		31.3		---		121.9
	Commissions and bonuses				37.6		12.9		50.5		10.2		---		60.7
	Premium taxes				8.1		1.0		9.1		---		---		9.1
	Interest expense				---		---		---		---		7.8		7.8
	Net (increase) decrease in DAC,
		VOBA and other intangible assets			(5.2)		(2.4)		(7.6)		0.4		---		(7.2)
			Total benefits and expenses		493.7		41.4		535.1		89.2		7.8		632.1
Income (loss) before income taxes				$	52.2	$	22.7	$	74.9	$	19.4	$	(16.9)	$	77.4
Total assets				$	6,032.4	$	2,378.1	$	8,410.5	$	14,407.8	$	369.1	$	23,187.4

				Three Months Ended March 31, 2014
								Total
				Employee		Individual		Insurance		Asset
				Benefits		Disability		Services		Management		Other		Total
				(In millions)
Revenues:
	Premiums			$	459.4	$	48.1	$	507.5	$	2.6	$	---	$	510.1
	Administrative fees				4.2		---		4.2		32.2		(4.8)		31.6
	Net investment income				65.2		13.4		78.6		69.5		5.8		153.9
	Net capital losses				---		---		---		---		(1.1)		(1.1)
			Total revenues		528.8		61.5		590.3		104.3		(0.1)		694.5
Benefits and expenses:
	Benefits to policyholders				370.4		26.0		396.4		4.7		---		401.1
	Interest credited				0.7		---		0.7		42.8		---		43.5
	Operating expenses				77.4		6.8		84.2		29.9		(1.0)		113.1
	Commissions and bonuses				33.3		11.1		44.4		7.4		---		51.8
	Premium taxes				8.1		1.0		9.1		---		---		9.1
	Interest expense				---		---		---		---		8.4		8.4
	Net (increase) decrease in DAC,
		VOBA and other intangible assets			(2.5)		(1.8)		(4.3)		3.1		---		(1.2)
			Total benefits and expenses		487.4		43.1		530.5		87.9		7.4		625.8
Income (loss) before income taxes				$	41.4	$	18.4	$	59.8	$	16.4	$	(7.5)	$	68.7
Total assets				$	5,761.5	$	2,341.8	$	8,103.3	$	12,950.8	$	589.6	$	21,643.7