FAIR VALUE MEASUREMENTS (TABLES)

9 Months Ended

Sep. 30, 2011

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The categorization of fair value measurements, by input level, for our fixed maturity securities, equity securities, trading securities, certain other invested assets, assets held in separate accounts and embedded derivative instruments included in liabilities for insurance products at September 30, 2011 is as follows (dollars in millions):

	Quoted prices in active markets  for identical assets or liabilities (Level 1)		Significant other observable inputs  (Level 2)			Significant unobservable inputs  (Level 3)			Total
Assets:
Fixed maturities, available for sale:
Corporate securities	$	—	$	15,486.5		$	295.4		$	15,781.9
United States Treasury securities and obligations of United States government corporations and agencies	10.0		410.7			1.7			422.4
States and political subdivisions	—		1,931.0			12.0			1,943.0
Debt securities issued by foreign governments	—		1.4			—			1.4
Asset-backed securities	—		887.0			19.7			906.7
Collateralized debt obligations	—		—			260.1			260.1
Commercial mortgage-backed securities	—		1,430.0			—			1,430.0
Mortgage pass-through securities	—		34.5			2.9			37.4
Collateralized mortgage obligations	—		2,055.6			178.2			2,233.8
Total fixed maturities, available for sale	10.0		22,236.7			770.0			23,016.7
Equity securities	16.1		72.5			75.7			164.3
Trading securities:
Corporate securities	—		47.0			3.1			50.1
United States Treasury securities and obligations of United States government corporations and agencies	—		4.9			—			4.9
States and political subdivisions	—		16.4			—			16.4
Asset-backed securities	—		—			—			—
Commercial mortgage-backed securities	—		4.2			—			4.2
Mortgage pass-through securities	—		.3			—			.3
Collateralized mortgage obligations	—		.9			—			.9
Equity securities	3.8		—			1.2			5.0
Total trading securities	3.8		73.7			4.3			81.8
Investments held by variable interest entities	—		453.5			—			453.5
Other invested assets	—		125.1		(a)	—			125.1
Assets held in separate accounts	—		15.4			—			15.4
Liabilities:
Liabilities for insurance products:
Interest-sensitive products	—		—			641.9		(b)	641.9

_____________

(a) Includes company-owned life insurance and derivatives.

(b) Includes $638.6 million of embedded derivatives associated with our fixed index annuity products and $3.3 million of embedded derivatives associated with a modified coinsurance agreement.

The categorization of fair value measurements, by input level, for our fixed maturity securities, equity securities, trading securities, certain other invested assets, assets held in separate accounts and embedded derivative instruments included in liabilities for insurance products at December 31, 2010 is as follows (dollars in millions):

	Quoted prices in active markets  for identical assets or liabilities  (Level 1)		Significant other observable inputs (Level 2)			Significant unobservable inputs  (Level 3)			Total
Assets:
Fixed maturities, available for sale:
Corporate securities	$	—	$	12,240.1		$	1,977.5		$	14,217.6
United States Treasury securities and obligations of United States government corporations and agencies	10.0		282.2			2.0			294.2
States and political subdivisions	—		1,772.1			11.4			1,783.5
Debt securities issued by foreign governments	—		.9			—			.9
Asset-backed securities	—		652.7			121.0			773.7
Collateralized debt obligations	—		—			256.5			256.5
Commercial mortgage-backed securities	—		1,363.7			—			1,363.7
Mortgage pass-through securities	27.8		—			3.5			31.3
Collateralized mortgage obligations	—		1,715.4			197.1			1,912.5
Total fixed maturities, available for sale	37.8		18,027.1			2,569.0			20,633.9
Equity securities	—		37.5			30.6			68.1
Trading securities:
Corporate securities	—		47.5			2.9			50.4
United States Treasury securities and obligations of United States government corporations and agencies	—		293.8			—			293.8
States and political subdivisions	—		16.1			—			16.1
Asset-backed securities	—		.6			—			.6
Commercial mortgage-backed securities	—		5.2			—			5.2
Mortgage pass-through securities	.3		—			—			.3
Collateralized mortgage obligations	—		1.2			.4			1.6
Equity securities	3.2		—			1.4			4.6
Total trading securities	3.5		364.4			4.7			372.6
Investments held by variable interest entities	—		414.2			6.7			420.9
Other invested assets	—		192.0		(a)	—			192.0
Assets held in separate accounts	—		17.5			—			17.5
Liabilities:
Liabilities for insurance products:
Interest-sensitive products	—		—			553.2		(b)	553.2

_____________

(a) Includes company-owned life insurance and derivatives.

(b) Includes $553.6 million of embedded derivatives associated with our fixed index annuity products and $(.4) million of embedded derivatives associated with a modified coinsurance agreement.

Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following table presents additional information about assets and liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value for the nine months ended September 30, 2011 (dollars in millions):

	September 30, 2011
	Beginning balance as of December 31, 2010			Purchases, sales, issuances and settlements, net (c)			Total realized and unrealized gains (losses) included in net income			Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)			Transfers into Level 3 (a)		Transfers out of Level 3 (a) (b)			Ending balance as of September 30, 2011			Amount of total gains (losses) for the nine months ended September 30, 2011 included in our net income relating to assets and liabilities still held as of the reporting date
Assets:
Fixed maturities, available for sale:
Corporate securities	$	1,977.5		$	(291.0	)	$	(16.1	)	$	14.6		$	42.7	$	(1,432.3	)	$	295.4		$	—
United States Treasury securities and obligations of United States government corporations and agencies	2.0			—			—			(.3		)	—		—			1.7			—
States and political subdivisions	11.4			(2.8		)	(.1		)	1.5			2.0		—			12.0			—
Asset-backed securities	121.0			1.5			—			.8			11.4		(115.0		)	19.7			—
Collateralized debt obligations	256.5			3.5			1.8			(1.7		)	—		—			260.1			—
Mortgage pass-through securities	3.5			(.6		)	—			—			—		—			2.9			—
Collateralized mortgage obligations	197.1			48.5			(2.1		)	3.2			5.9		(74.4		)	178.2			—
Total fixed maturities, available for sale	2,569.0			(240.9		)	(16.5		)	18.1			62.0		(1,621.7		)	770.0			—
Equity securities	30.6			67.7			(.2		)	.1			—		(22.5		)	75.7			—
Trading securities:
Corporate securities	2.9			—			.2			—			—		—			3.1			.2
Collateralized mortgage obligations	.4			(.4		)	—			—			—		—			—			—
Equity securities	1.4			—			(.2		)	—			—		—			1.2			(.2		)
Total trading securities	4.7			(.4		)	—			—			—		—			4.3			—
Investments held by variable interest entities:
Corporate securities	6.7			(7.9		)	1.5			(.3		)	—		—			—			—
Liabilities:
Liabilities for insurance products:
Interest-sensitive products	(553.2		)	(35.0		)	(53.7		)	—			—		—			(641.9		)	(53.7		)

____________

(a) Transfers in/out of Level 3 are reported as having occurred at the beginning of the period.

(b) Transfers out of Level 3 are primarily related to our re-evaluation of the observability of pricing inputs related to investment grade privately placed securities.

(c) Purchases, sales, issuances and settlements, net, represent the activity that occurred during the period that results in a change of the asset or liability but does not represent changes in fair value for the instruments held at the beginning of the period.  Such activity primarily consists of purchases and sales of fixed maturity, equity and trading securities, purchases and settlements of derivative instruments, and changes to embedded derivative instruments related to insurance products resulting from the issuance of new contracts, or changes to existing contracts.  The following summarizes such activity for the nine months ended September 30, 2011 (dollars in millions):

												Purchases, sales, issuances and settlements, net
	Purchases			Sales			Issuances			Settlements
Assets:
Fixed maturities, available for sale:
Corporate securities	$	2.0		$	(293.0	)	$	—		$	—	$	(291.0	)
United States Treasury securities and obligations of United States governement corporations and agencies	—			—			—			—		—
States and political subdivisions	—			(2.8		)	—			—		(2.8		)
Asset-backed securities	3.9			(2.4		)	—			—		1.5
Collateralized debt obligations	106.6			(103.1		)	—			—		3.5
Mortgage pass-through securities	—			(.6		)	—			—		(.6		)
Collateralized mortgage obligations	94.5			(46.0		)	—			—		48.5
Total fixed maturities, available for sale	207.0			(447.9		)	—			—		(240.9		)
Equity securities	73.0			(5.3		)	—			—		67.7
Trading securities:
Collateralized mortgage obligations	—			(.4		)	—			—		(.4		)
Investments held by variable interest entities:
Corporate securities	—			(7.9		)	—			—		(7.9		)
Liabilities:
Liabilities for insurance products:
Interest-sensitive products	(85.5		)	51.8			(28.4		)	27.1		(35.0		)

	September 30, 2010
	Beginning balance as of December 31, 2009			Cumulative effect of accounting change (a)			Purchases, sales, issuances and settlements, net			Total realized and unrealized gains (losses) included in net income			Total realized and unrealized gains (losses) included in other comprehensive income (loss)		Transfers into Level 3 (b)		Transfers out of Level 3 (b)			Ending balance as of September 30, 2010			Amount of total gains (losses) for the nine months ended September 30, 2010 included in our net income relating to assets and liabilities still held as of the reporting date
Assets:
Fixed maturities, available for sale:
Corporate securities	$	2,147.8		$	(5.9	)	$	58.5		$	(2.2	)	$	158.8	$	19.6	$	(32.0	)	$	2,344.6		$	—
United States Treasury securities and obligations of United States government corporations and agencies	2.2			—			(.1		)	—			.1		—		—			2.2			—
States and political subdivisions	10.7			—			—			—			.7		—		(1.7		)	9.7			—
Asset-backed securities	115.1			—			13.8			(11.3		)	26.9		—		—			144.5			—
Collateralized debt obligations	92.8			(5.7		)	119.8			(.1		)	3.2		—		—			210.0			—
Commercial mortgage-backed securities	13.7			—			(2.8		)	—			1.6		—		(5.9		)	6.6			—
Mortgage pass-through securities	4.2			—			(.5		)	—			—		—		—			3.7			—
Collateralized mortgage obligations	11.4			—			77.1			—			2.1		—		(11.1		)	79.5			—
Total fixed maturities, available for sale	2,397.9			(11.6		)	265.8			(13.6		)	193.4		19.6		(50.7		)	2,800.8			—
Equity securities	30.9			—			.1			—			0.1		—		—			31.1			—
Trading securities:
Corporate securities	2.4			—			—			.3			—		—		—			2.7			.3
Equity securities	1.3			—			—			.1			—		—		—			1.4			.1
Total trading securities	3.7			—			—			.4			—		—		—			4.1			.4
Investments held by variable interest entities:
Corporate securities	—			6.9			(1.0		)	—			.3		—		—			6.2			—
Securities lending collateral:
Corporate securities	13.7			—			(13.7		)	—			—		—		—			—			—
Asset-backed securities	22.9			—			(20.9		)	—			—		—		(2.0		)	—			—
Total securities lending collateral	36.6			—			(34.6		)	—			—		—		(2.0		)	—			—
Other invested assets	2.4			(2.4		)	—			—			—		—		—			—			—
Liabilities:
Liabilities for insurance products:
Interest-sensitive products	(496.0		)	—			33.1			(58.3		)	—		—		—			(521.2		)	(58.3		)

__________

(a) Amounts represent adjustments to investments related to a VIE that was required to be consolidated effective January 1, 2010, as well as the reclassification of investments of a VIE which was consolidated at December 31, 2009.

(b) Transfers in/out of Level 3 are reported as having occurred at the beginning of the period.

The following table presents additional information about assets and liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value for the three months ended September 30, 2010 (dollars in millions):

	September 30, 2010
	Beginning balance as of June 30, 2010			Purchases, sales, issuances and settlements, net			Total realized and unrealized gains (losses) included in net income			Total realized and unrealized gains (losses) included in other comprehensive income (loss)			Transfers into Level 3 (a)		Transfers out of Level 3 (a)			Ending balance as of September 30, 2010			Amount of total gains (losses) for the three months ended September 30, 2010 included in our net income relating to assets and liabilities still held as of the reporting date
Assets:
Fixed maturities, available for sale:
Corporate securities	$	2,328.6		$	8.5		$	(1.7	)	$	45.3		$	—	$	(36.1	)	$	2,344.6		$	—
United States Treasury securities and obligations of United States government corporations and agencies	2.1			—			—			.1			—		—			2.2			—
States and political subdivisions	10.0			—			—			(.3		)	—		—			9.7			—
Asset-backed securities	131.1			7.6			—			5.8			—		—			144.5			—
Collateralized debt obligations	136.8			69.7			.1			3.4			—		—			210.0			—
Commercial mortgage-backed securities	10.5			(2.2		)	—			(.3		)	—		(1.4		)	6.6			—
Mortgage pass-through securities	3.9			(.2		)	—			—			—		—			3.7			—
Collateralized mortgage obligations	24.1			53.3			—			2.1			—		—			79.5			—
Total fixed maturities, available for sale	2,647.1			136.7			(1.6		)	56.1			—		(37.5		)	2,800.8			—
Equity securities	31.0			—			—			.1			—		—			31.1			—
Trading securities:
Corporate securities	2.9			(.5		)	.3			—			—		—			2.7			.3
Equity securities	1.2			—			.2			—			—		—			1.4			.2
Total trading securities	4.1			(.5		)	.5			—			—		—			4.1			.5
Investments held by variable interest entities:
Corporate securities	7.2			(1.0		)	—			—			—		—			6.2			—
Securities lending collateral:
Asset-backed securities	4.9			(4.9		)	—			—			—		—			—			—
Liabilities:
Liabilities for insurance products:
Interest-sensitive products	(500.5		)	(1.9		)	(18.8		)	—			—		—			(521.2		)	(18.8		)

____________

(a) Transfers in/out of Level 3 are reported as having occurred at the beginning of the period.

The following table presents additional information about assets and liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value for the three months ended September 30, 2011 (dollars in millions):

	September 30, 2011
	Beginning balance as of June 30, 2011			Purchases, sales, issuances and settlements, net (c)			Total realized and unrealized gains (losses) included in net income			Total realized and unrealized gains (losses) included in accumulated other comprehensive income (loss)			Transfers into Level 3 (a)		Transfers out of Level 3 (a) (b)			Ending balance as of September 30, 2011			Amount of total gains (losses) for the three months ended September 30, 2011 included in our net income relating to assets and liabilities still held as of the reporting date
Assets:
Fixed maturities, available for sale:
Corporate securities	$	415.2		$	(112.9	)	$	4.9		$	5.3		$	.5	$	(17.6	)	$	295.4		$	—
United States Treasury securities and obligations of United States government corporations and agencies	1.7			—			—			—			—		—			1.7			—
States and political subdivisions	9.2			—			—			.8			2.0		—			12.0			—
Asset-backed securities	126.4			2.9			—			(.3		)	4.1		(113.4		)	19.7			—
Collateralized debt obligations	193.5			72.7			—			(6.1		)	—		—			260.1			—
Mortgage pass-through securities	3.2			(.3		)	—			—			—		—			2.9			—
Collateralized mortgage obligations	204.1			3.6			—			.7			—		(30.2		)	178.2			—
Total fixed maturities, available for sale	953.3			(34.0		)	4.9			.4			6.6		(161.2		)	770.0			—
Equity securities	49.9			27.3			(.5		)	(1.0		)	—		—			75.7			—
Trading securities:
Corporate securities	3.3			—			(.2		)	—			—		—			3.1			(.2		)
Collateralized mortgage obligations	—			—			—			—			—		—			—			—
Equity securities	1.3			—			(.1		)	—			—		—			1.2			(.1		)
Total trading securities	4.6			—			(.3		)	—			—		—			4.3			(.3		)
Investments held by variable interest entities:
Corporate securities	—			—			—			—			—		—			—			—
Liabilities:
Liabilities for insurance products:
Interest-sensitive products	(613.4		)	16.3			(44.8		)	—			—		—			(641.9		)	(44.8		)

____________

(a) Transfers in/out of Level 3 are reported as having occurred at the beginning of the period.

(b) Transfers out of Level 3 are primarily related to our re-evaluation of the observability of pricing inputs related to investment grade privately placed securities.

(c) Purchases, sales, issuances and settlements, net, represent the activity that occurred during the period that results in a change of the asset or liability but does not represent changes in fair value for the instruments held at the beginning of the period.  Such activity primarily consists of purchases and sales of fixed maturity, equity and trading securities, purchases and settlements of derivative instruments, and changes to embedded derivative instruments related to insurance products resulting from the issuance of new contracts, or changes to existing contracts.  The following summarizes such activity for the three months ended September 30, 2011 (dollars in millions):

												Purchases, sales, issuances and settlements, net
	Purchases			Sales			Issuances			Settlements
Assets:
Fixed maturities, available for sale:
Corporate securities	$	2.0		$	(114.9	)	$	—		$	—	$	(112.9	)
States and political subdivisions	—			—			—			—		—
Asset-backed securities	3.9			(1.0		)	—			—		2.9
Collateralized debt obligations	84.2			(11.5		)	—			—		72.7
Mortgage pass-through securities	—			(.3		)	—			—		(.3		)
Collateralized mortgage obligations	20.5			(16.9		)	—			—		3.6
Total fixed maturities, available for sale	110.6			(144.6		)	—			—		(34.0		)
Equity securities	31.6			(4.3		)	—			—		27.3
Investments held by variable interest entities:
Corporate securities	—			—			—			—		—
Liabilities:
Liabilities for insurance products:
Interest-sensitive products	(33.1		)	41.7			(2.6		)	10.3		16.3

Fair Value, by Balance Sheet Grouping [Table Text Block]

The estimated fair values of our financial instruments at September 30, 2011 and December 31, 2010, were as follows (dollars in millions):

	September 30, 2011				December 31, 2010
	Carrying amount		Estimated fair value		Carrying amount		Estimated fair value
Financial assets:
Fixed maturities, available for sale	$	23,016.7	$	23,016.7	$	20,633.9	$	20,633.9
Equity securities	164.3		164.3		68.1		68.1
Mortgage loans	1,648.2		1,777.4		1,761.2		1,762.6
Policy loans	279.6		279.6		284.4		284.4
Trading securities	81.8		81.8		372.6		372.6
Investments held by securitization entities	453.5		453.5		420.9		420.9
Other invested assets	190.9		190.9		240.9		240.9
Cash and cash equivalents	481.6		481.6		598.7		598.7
Financial liabilities:
Insurance liabilities for interest-sensitive products (a)	$	13,168.2	$	13,168.2	$	13,194.7	$	13,194.7
Investment borrowings	1,509.1		1,575.3		1,204.1		1,265.3
Borrowings related to variable interest entities	405.6		369.1		386.9		345.1
Notes payable – direct corporate obligations	871.2		958.9		998.5		1,166.4

____________________

(a) The estimated fair value of insurance liabilities for interest-sensitive products was approximately equal to its carrying value at September 30, 2011 and December 31, 2010.  This was because interest rates credited on the vast majority of account balances approximate current rates paid on similar products and because these rates are not generally guaranteed beyond one year.