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Investments
 9 Months Ended
Sep. 30, 2013
Investments [Abstract]  
Investments
Investments
We evaluate our investment securities for other-than-temporary declines based on qualitative and quantitative factors. Other-than-temporary impairment losses recognized in income totaled $26.2 and $3.8 for the three months ended September 30, 2013 and 2012, respectively. Other-than-temporary impairment losses recognized in income totaled $73.1 and $20.6 for the nine months ended September 30, 2013 and 2012, respectively. There were no individually significant other-than-temporary impairment losses on investments by issuer during the three and nine months ended September 30, 2013 and 2012. We continue to review our investment portfolios under our impairment review policy. Given the current market conditions and the significant judgments involved, there is a continuing risk that further declines in fair value may occur and additional material other-than-temporary impairment losses on investments may be recorded in future periods.
A summary of current and long-term investments, available-for-sale, at September 30, 2013 and December 31, 2012 is as follows:
 
 
 
 
 
 
 
 
 
Non-Credit
Component of
Other-Than-
Temporary
Impairments
Recognized in
AOCI
 
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross Unrealized Losses
 
Estimated
Fair Value
 
 
 
 
Less than
12 Months
 
12 Months
or Greater
 
 
September 30, 2013:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
United States Government securities
$
464.0

 
$
4.1

 
$
(1.4
)
 
$
—

 
$
466.7

 
$
—

Government sponsored securities
195.2

 
0.9

 
(1.5
)
 
—

 
194.6

 
—

States, municipalities and political subdivisions, tax-exempt
6,143.2

 
234.9

 
(93.6
)
 
(1.2
)
 
6,283.3

 
—

Corporate securities
7,780.3

 
212.0

 
(109.3
)
 
(12.4
)
 
7,870.6

 
(0.1
)
Options embedded in convertible debt securities
81.0

 
—

 
—

 
—

 
81.0

 
—

Residential mortgage-backed securities
2,198.4

 
52.6

 
(29.4
)
 
(3.3
)
 
2,218.3

 
—

Commercial mortgage-backed securities
488.1

 
11.3

 
(3.4
)
 
—

 
496.0

 
—

Other debt securities
364.0

 
5.8

 
(3.2
)
 
(1.3
)
 
365.3

 
(0.8
)
Total fixed maturity securities
17,714.2

 
521.6

 
(241.8
)
 
(18.2
)
 
17,975.8

 
$
(0.9
)
Equity securities
1,050.5

 
481.4

 
(16.7
)
 
—

 
1,515.2

 
 
Total investments, available-for-sale
$
18,764.7

 
$
1,003.0

 
$
(258.5
)
 
$
(18.2
)
 
$
19,491.0

 
 
December 31, 2012:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
United States Government securities
$
330.3

 
$
13.1

 
$
(0.2
)
 
$
—

 
$
343.2

 
$
—

Government sponsored securities
153.6

 
2.6

 
—

 
—

 
156.2

 
—

States, municipalities and political subdivisions, tax-exempt
5,501.3

 
388.2

 
(5.7
)
 
(1.6
)
 
5,882.2

 
—

Corporate securities
7,642.0

 
387.0

 
(17.0
)
 
(8.0
)
 
8,004.0

 
(1.7
)
Options embedded in convertible debt securities
67.2

 
—

 
—

 
—

 
67.2

 
—

Residential mortgage-backed securities
2,204.7

 
103.1

 
(1.1
)
 
(1.9
)
 
2,304.8

 
(0.4
)
Commercial mortgage-backed securities
323.2

 
22.5

 
—

 
—

 
345.7

 
—

Other debt securities
236.8

 
7.6

 
(0.2
)
 
(3.1
)
 
241.1

 
(1.3
)
Total fixed maturity securities
16,459.1

 
924.1

 
(24.2
)
 
(14.6
)
 
17,344.4

 
$
(3.4
)
Equity securities
897.0

 
358.0

 
(12.5
)
 
—

 
1,242.5

 
 
Total investments, available-for-sale
$
17,356.1

 
$
1,282.1

 
$
(36.7
)
 
$
(14.6
)
 
$
18,586.9

 
 

At September 30, 2013, we owned $2,714.3 of mortgage-backed securities and $341.8 of asset-backed securities out of a total available-for-sale investment portfolio of $19,491.0. These securities included sub-prime and Alt-A securities with fair values of $33.6 and $108.4, respectively. These sub-prime and Alt-A securities had accumulated net unrealized gains of $1.3 and $6.1, respectively. The average credit rating of the sub-prime and Alt-A securities was “BB” and “CCC”, respectively.
The following tables summarize for fixed maturity securities and equity securities in an unrealized loss position at September 30, 2013 and December 31, 2012, the aggregate fair value and gross unrealized loss by length of time those securities have been continuously in an unrealized loss position: 
 
Less than 12 Months
 
12 Months or Greater
(Securities are whole amounts)
Number of
Securities
 
Estimated
Fair Value
 
Gross
Unrealized
Loss
 
Number of
Securities
 
Estimated
Fair Value
 
Gross
Unrealized
Loss
September 30, 2013:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
United States Government securities
24

 
$
119.9

 
$
(1.4
)
 
—

 
$
—

 
$
—

Government sponsored securities
23

 
56.6

 
(1.5
)
 
—

 
—

 
—

States, municipalities and political subdivisions, tax-exempt
768

 
1,979.3

 
(93.6
)
 
22

 
14.3

 
(1.2
)
Corporate securities
1,700

 
3,075.0

 
(109.3
)
 
57

 
53.0

 
(12.4
)
Residential mortgage-backed securities
434

 
921.9

 
(29.4
)
 
54

 
65.8

 
(3.3
)
Commercial mortgage-backed securities
50

 
216.8

 
(3.4
)
 
1

 
0.6

 
—

Other debt securities
52

 
145.7

 
(3.2
)
 
17

 
17.7

 
(1.3
)
Total fixed maturity securities
3,051

 
6,515.2

 
(241.8
)
 
151

 
151.4

 
(18.2
)
Equity securities
624

 
194.2

 
(16.7
)
 
—

 
—

 
—

Total fixed maturity and equity securities
3,675

 
$
6,709.4

 
$
(258.5
)
 
151

 
$
151.4

 
$
(18.2
)
December 31, 2012:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
United States Government securities
17

 
$
48.5

 
$
(0.2
)
 
—

 
$
—

 
$
—

States, municipalities and political subdivisions, tax-exempt
184

 
420.1

 
(5.7
)
 
1

 
46.9

 
(1.6
)
Corporate securities
457

 
1,066.5

 
(17.0
)
 
74

 
52.6

 
(8.0
)
Residential mortgage-backed securities
79

 
211.0

 
(1.1
)
 
44

 
25.5

 
(1.9
)
Commercial mortgage-backed securities
4

 
10.1

 
—

 
3

 
4.1

 
—

Other debt securities
7

 
5.4

 
(0.2
)
 
21

 
28.9

 
(3.1
)
Total fixed maturity securities
748

 
1,761.6

 
(24.2
)
 
143

 
158.0

 
(14.6
)
Equity securities
961

 
149.6

 
(12.5
)
 
—

 
—

 
—

Total fixed maturity and equity securities
1,709

 
$
1,911.2

 
$
(36.7
)
 
143

 
$
158.0

 
$
(14.6
)

The amortized cost and fair value of fixed maturity securities at September 30, 2013, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations.
 
Amortized
Cost
 
Estimated
Fair Value
Due in one year or less
$
429.4

 
$
448.2

Due after one year through five years
4,704.9

 
4,837.6

Due after five years through ten years
5,176.7

 
5,272.4

Due after ten years
4,716.7

 
4,703.3

Mortgage-backed securities
2,686.5

 
2,714.3

Total available-for-sale fixed maturity securities
$
17,714.2

 
$
17,975.8


Proceeds from fixed maturity and equity securities and the related gross realized gains and gross realized losses for the three and nine months ended September 30, 2013 and 2012 are as follows:
 
Three Months Ended 
 September 30
 
Nine Months Ended 
 September 30
 
2013
 
2012
 
2013
 
2012
Proceeds
$
5,411.6

 
$
3,492.3

 
$
10,821.6

 
$
10,093.5

Gross realized gains
160.4

 
109.0

 
339.3

 
364.1

Gross realized losses
(65.0
)
 
(54.4
)
 
(172.9
)
 
(132.1
)

In the ordinary course of business, we may sell securities at a loss for a number of reasons, including, but not limited to: (i) changes in the investment environment; (ii) expectation that the fair value could deteriorate further; (iii) desire to reduce exposure to an issuer or an industry; (iv) changes in credit quality; or (v) changes in expected cash flow.
All securities sold resulting in investment gains and losses are recorded on the trade date. Realized gains and losses are determined on the basis of the cost or amortized cost of the specific securities sold.