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Investments
 3 Months Ended
Mar. 31, 2017
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 $8.1 and $66.9 for the three months ended March 31, 2017 and 2016, respectively. There were no individually significant other-than-temporary impairment losses on investments during the three months ended March 31, 2017 and 2016. We continue to review our investment portfolios under our impairment review policy. Given the inherent uncertainty of changes in 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 March 31, 2017 and December 31, 2016 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
 
 
March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
United States Government securities
$
494.1

 
$
2.3

 
$
(3.0
)
 
$
—

 
$
493.4

 
$
—

Government sponsored securities
86.8

 
0.3

 
(0.3
)
 
(0.1
)
 
86.7

 
—

States, municipalities and political subdivisions, tax-exempt
5,441.5

 
153.3

 
(31.0
)
 
(2.1
)
 
5,561.7

 
(1.4
)
Corporate securities
9,422.2

 
174.1

 
(32.4
)
 
(15.8
)
 
9,548.1

 
(0.1
)
Residential mortgage-backed securities
1,914.0

 
31.0

 
(15.1
)
 
(4.1
)
 
1,925.8

 
—

Commercial mortgage-backed securities
145.1

 
0.9

 
(0.3
)
 
(2.9
)
 
142.8

 
—

Other securities
747.1

 
7.7

 
(0.6
)
 
(3.0
)
 
751.2

 
—

Total fixed maturity securities
18,250.8

 
369.6

 
(82.7
)
 
(28.0
)
 
18,509.7

 
$
(1.5
)
Equity securities
1,417.6

 
441.4

 
(13.6
)
 
—

 
1,845.4

 
 
Total investments, available-for-sale
$
19,668.4

 
$
811.0

 
$
(96.3
)
 
$
(28.0
)
 
$
20,355.1

 
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
United States Government securities
$
561.7

 
$
2.5

 
$
(5.7
)
 
$
—

 
$
558.5

 
$
—

Government sponsored securities
40.1

 
0.3

 
(0.3
)
 
(0.1
)
 
40.0

 
—

States, municipalities and political subdivisions, tax-exempt
6,024.6

 
139.1

 
(55.2
)
 
(3.2
)
 
6,105.3

 
(3.8
)
Corporate securities
8,011.7

 
159.5

 
(49.5
)
 
(27.1
)
 
8,094.6

 
(3.4
)
Residential mortgage-backed securities
1,916.9

 
32.3

 
(15.3
)
 
(4.6
)
 
1,929.3

 
—

Commercial mortgage-backed securities
216.8

 
1.2

 
(0.3
)
 
(3.4
)
 
214.3

 
—

Other securities
744.6

 
6.4

 
(1.5
)
 
(4.0
)
 
745.5

 
—

Total fixed maturity securities
17,516.4

 
341.3

 
(127.8
)
 
(42.4
)
 
17,687.5

 
$
(7.2
)
Equity securities
1,103.3

 
407.3

 
(10.7
)
 
—

 
1,499.9

 
 
Total investments, available-for-sale
$
18,619.7

 
$
748.6

 
$
(138.5
)
 
$
(42.4
)
 
$
19,187.4

 
 

For available-for-sale securities in an unrealized loss position at March 31, 2017 and December 31, 2016, the following table summarizes the aggregate fair values and gross unrealized losses by length of time those securities have continuously been 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
March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
United States Government securities
41

 
$
235.8

 
$
(3.0
)
 
—

 
$
—

 
$
—

Government sponsored securities
17

 
42.9

 
(0.3
)
 
1

 
1.0

 
(0.1
)
States, municipalities and political subdivisions, tax-exempt
598

 
1,086.6

 
(31.0
)
 
24

 
40.8

 
(2.1
)
Corporate securities
1,242

 
2,835.5

 
(32.4
)
 
137

 
305.7

 
(15.8
)
Residential mortgage-backed securities
455

 
920.1

 
(15.1
)
 
101

 
101.1

 
(4.1
)
Commercial mortgage-backed securities
19

 
53.7

 
(0.3
)
 
19

 
30.0

 
(2.9
)
Other securities
56

 
122.3

 
(0.6
)
 
39

 
84.4

 
(3.0
)
Total fixed maturity securities
2,428

 
5,296.9

 
(82.7
)
 
321

 
563.0

 
(28.0
)
Equity securities
450

 
270.8

 
(13.6
)
 
—

 
—

 
—

Total investments, available-for-sale
2,878

 
$
5,567.7

 
$
(96.3
)
 
321

 
$
563.0

 
$
(28.0
)
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
United States Government securities
51

 
$
359.9

 
$
(5.7
)
 
—

 
$
—

 
$
—

Government sponsored securities
18

 
26.4

 
(0.3
)
 
1

 
1.0

 
(0.1
)
States, municipalities and political subdivisions, tax-exempt
1,022

 
1,849.0

 
(55.2
)
 
28

 
60.7

 
(3.2
)
Corporate securities
1,272

 
2,640.6

 
(49.5
)
 
203

 
422.8

 
(27.1
)
Residential mortgage-backed securities
430

 
905.8

 
(15.3
)
 
114

 
136.9

 
(4.6
)
Commercial mortgage-backed securities
19

 
61.2

 
(0.3
)
 
24

 
60.8

 
(3.4
)
Other securities
66

 
144.3

 
(1.5
)
 
55

 
133.8

 
(4.0
)
Total fixed maturity securities
2,878

 
5,987.2

 
(127.8
)
 
425

 
816.0

 
(42.4
)
Equity securities
452

 
233.1

 
(10.7
)
 
—

 
—

 
—

Total investments, available-for-sale
3,330

 
$
6,220.3

 
$
(138.5
)
 
425

 
$
816.0

 
$
(42.4
)

The amortized cost and fair value of available-for-sale fixed maturity securities at March 31, 2017, 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
$
373.1

 
$
374.3

Due after one year through five years
4,411.8

 
4,489.4

Due after five years through ten years
5,270.0

 
5,379.6

Due after ten years
6,136.8

 
6,197.8

Mortgage-backed securities
2,059.1

 
2,068.6

Total available-for-sale fixed maturity securities
$
18,250.8

 
$
18,509.7


Proceeds from fixed maturity securities, equity securities and other invested assets and the related gross realized gains and gross realized losses for the three months ended March 31, 2017 and 2016 are as follows:
 
Three Months Ended 
 March 31
 
2017
 
2016
Proceeds
$
3,514.0

 
$
3,062.1

Gross realized gains
59.8

 
121.4

Gross realized losses
(30.2
)
 
(92.7
)

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.
Securities Lending Programs
We participate in securities lending programs whereby marketable securities in our investment portfolio are transferred to independent brokers or dealers in exchange for cash and securities collateral. The fair value of the collateral received at the time of the transactions amounted to $1,233.4 and $1,078.9 at March 31, 2017 and December 31, 2016, respectively. The value of the collateral represented 103% of the market value of the securities on loan at March 31, 2017 and December 31, 2016. We recognize the collateral as an asset under the caption “Securities lending collateral” on our consolidated balance sheets and we recognize a corresponding liability for the obligation to return the collateral to the borrower under the caption “Securities lending payable.” The securities on loan are reported in the applicable investment category on our consolidated balance sheets. Unrealized gains or losses on securities lending collateral are included in accumulated other comprehensive income as a separate component of shareholders’ equity.
The remaining contractual maturity of our securities lending agreements at March 31, 2017 is as follows:
 
Overnight and Continuous
 
Less than 30 days
 
30-90 days
 
Greater Than 90 days
 
Total
Securities lending transactions
 
 
 
 
 
 
 
 
 
United States Government securities
$
69.7

 
$
57.7

 
$
—

 
$
8.6

 
$
136.0

Corporate securities
619.4

 
—

 
—

 
—

 
619.4

Equity securities
311.6

 
5.7

 
—

 
—

 
317.3

Other securities
160.7

 
—

 
—

 
—

 
160.7

Total
$
1,161.4

 
$
63.4

 
$
—

 
$
8.6

 
$
1,233.4


The market value of loaned securities and that of the collateral pledged can fluctuate in non-synchronized fashions. To the extent the loaned securities' value appreciates faster or depreciates slower than the value of the collateral pledged, we are exposed to the risk of the shortfall. As a primary mitigating mechanism, the loaned securities and collateral pledged are marked to market on a daily basis and the shortfall, if any, is collected accordingly. Secondarily, the collateral level is set at 102% of the value of the loaned securities, which provides a cushion before any shortfall arises. The investment of the cash collateral is subject to market risk, which is managed by limiting the investments to higher quality and shorter duration instruments.