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Investments
 9 Months Ended
Sep. 30, 2014
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 $13.8 and $26.2 for the three months ended September 30, 2014 and 2013, respectively. Other-than-temporary impairment losses recognized in income totaled $35.5 and $73.1 for the nine months ended September 30, 2014 and 2013, respectively. There were no individually significant other-than-temporary impairment losses on investments by issuer during the three and nine months ended September 30, 2014 and 2013. 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, 2014 and December 31, 2013 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, 2014:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
United States Government securities
$
342.6

 
$
3.5

 
$
(0.1
)
 
$
(0.2
)
 
$
345.8

 
$
—

Government sponsored securities
127.1

 
0.7

 
(0.1
)
 
(0.7
)
 
127.0

 
—

States, municipalities and political subdivisions, tax-exempt
5,725.1

 
300.2

 
(1.5
)
 
(6.1
)
 
6,017.7

 
—

Corporate securities
8,667.5

 
180.5

 
(56.2
)
 
(34.5
)
 
8,757.3

 
(5.9
)
Options embedded in convertible debt securities
100.4

 
—

 
—

 
—

 
100.4

 
—

Residential mortgage-backed securities
2,173.3

 
62.6

 
(2.0
)
 
(16.4
)
 
2,217.5

 
—

Commercial mortgage-backed securities
502.7

 
7.9

 
(0.5
)
 
(0.7
)
 
509.4

 
—

Other debt securities
705.1

 
7.7

 
(0.7
)
 
(1.2
)
 
710.9

 
—

Total fixed maturity securities
18,343.8

 
563.1

 
(61.1
)
 
(59.8
)
 
18,786.0

 
$
(5.9
)
Equity securities
1,316.6

 
577.1

 
(13.7
)
 
—

 
1,880.0

 
 
Total investments, available-for-sale
$
19,660.4

 
$
1,140.2

 
$
(74.8
)
 
$
(59.8
)
 
$
20,666.0

 
 
December 31, 2013:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
United States Government securities
$
300.8

 
$
2.5

 
$
(3.4
)
 
$
—

 
$
299.9

 
$
—

Government sponsored securities
174.4

 
0.4

 
(1.3
)
 
—

 
173.5

 
—

States, municipalities and political subdivisions, tax-exempt
5,899.5

 
202.9

 
(90.1
)
 
(9.6
)
 
6,002.7

 
(0.6
)
Corporate securities
7,614.1

 
205.2

 
(95.2
)
 
(15.5
)
 
7,708.6

 
(0.1
)
Options embedded in convertible debt securities
89.2

 
—

 
—

 
—

 
89.2

 
—

Residential mortgage-backed securities
2,269.4

 
48.0

 
(41.4
)
 
(7.1
)
 
2,268.9

 
—

Commercial mortgage-backed securities
479.0

 
10.5

 
(2.6
)
 
(0.3
)
 
486.6

 
—

Other debt securities
456.2

 
5.8

 
(2.5
)
 
(0.8
)
 
458.7

 
(0.1
)
Total fixed maturity securities
17,282.6

 
475.3

 
(236.5
)
 
(33.3
)
 
17,488.1

 
$
(0.8
)
Equity securities
1,195.9

 
578.9

 
(8.0
)
 
—

 
1,766.8

 
 
Total investments, available-for-sale
$
18,478.5

 
$
1,054.2

 
$
(244.5
)
 
$
(33.3
)
 
$
19,254.9

 
 

At September 30, 2014, we owned $2,726.9 of mortgage-backed securities and $625.8 of asset-backed securities out of a total available-for-sale investment portfolio of $20,666.0. These securities included sub-prime and Alt-A securities with fair values of $24.8 and $88.4, respectively. These sub-prime and Alt-A securities had accumulated net unrealized gains of $1.6 and $6.5, respectively. The average credit rating of the sub-prime and Alt-A securities was “B” and “CC”, respectively.
The following tables summarize for available-for-sale fixed maturity securities and available-for-sale equity securities in an unrealized loss position at September 30, 2014 and December 31, 2013, 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, 2014:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
United States Government securities
12

 
$
53.6

 
$
(0.1
)
 
3

 
$
5.0

 
$
(0.2
)
Government sponsored securities
10

 
27.0

 
(0.1
)
 
16

 
31.8

 
(0.7
)
States, municipalities and political subdivisions, tax-exempt
95

 
253.6

 
(1.5
)
 
126

 
320.4

 
(6.1
)
Corporate securities
1,828

 
3,281.2

 
(56.2
)
 
336

 
579.7

 
(34.5
)
Residential mortgage-backed securities
132

 
318.7

 
(2.0
)
 
251

 
483.9

 
(16.4
)
Commercial mortgage-backed securities
37

 
123.9

 
(0.5
)
 
17

 
53.5

 
(0.7
)
Other debt securities
51

 
189.8

 
(0.7
)
 
28

 
74.1

 
(1.2
)
Total fixed maturity securities
2,165

 
4,247.8

 
(61.1
)
 
777

 
1,548.4

 
(59.8
)
Equity securities
510

 
161.5

 
(13.7
)
 
—

 
—

 
—

Total fixed maturity and equity securities
2,675

 
$
4,409.3

 
$
(74.8
)
 
777

 
$
1,548.4

 
$
(59.8
)
December 31, 2013:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
United States Government securities
27

 
$
179.2

 
$
(3.4
)
 
—

 
$
—

 
$
—

Government sponsored securities
22

 
73.4

 
(1.3
)
 
—

 
—

 
—

States, municipalities and political subdivisions, tax-exempt
806

 
2,070.9

 
(90.1
)
 
42

 
82.4

 
(9.6
)
Corporate securities
1,448

 
2,586.6

 
(95.2
)
 
107

 
81.3

 
(15.5
)
Residential mortgage-backed securities
605

 
1,243.0

 
(41.4
)
 
80

 
116.2

 
(7.1
)
Commercial mortgage-backed securities
52

 
177.7

 
(2.6
)
 
4

 
5.6

 
(0.3
)
Other debt securities
65

 
185.3

 
(2.5
)
 
17

 
16.2

 
(0.8
)
Total fixed maturity securities
3,025

 
6,516.1

 
(236.5
)
 
250

 
301.7

 
(33.3
)
Equity securities
426

 
120.8

 
(8.0
)
 
—

 
—

 
—

Total fixed maturity and equity securities
3,451

 
$
6,636.9

 
$
(244.5
)
 
250

 
$
301.7

 
$
(33.3
)

The amortized cost and fair value of available-for-sale fixed maturity securities at September 30, 2014, 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
$
613.5

 
$
619.9

Due after one year through five years
4,875.4

 
4,991.3

Due after five years through ten years
5,439.9

 
5,588.8

Due after ten years
4,739.0

 
4,859.1

Mortgage-backed securities
2,676.0

 
2,726.9

Total available-for-sale fixed maturity securities
$
18,343.8

 
$
18,786.0


Proceeds from fixed maturity securities, equity securities and other invested assets and the related gross realized gains and gross realized losses for the three and nine months ended September 30, 2014 and 2013 are as follows:
 
Three Months Ended 
 September 30
 
Nine Months Ended 
 September 30
 
2014
 
2013
 
2014
 
2013
Proceeds
$
2,038.2

 
$
5,442.0

 
$
6,999.6

 
$
10,874.6

Gross realized gains
32.4

 
176.0

 
221.5

 
354.9

Gross realized losses
(6.7
)
 
(80.6
)
 
(88.3
)
 
(188.5
)

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.