Investments (Tables)

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements [Abstract]

Schedule of Available-for-sale Securities Reconciliation

At September 30, 2011 and December 31, 2010, all fixed maturity securities were classified as available-for-sale. The amortized cost and fair values of securities by security type are shown as follows.

	September 30, 2011
	(in millions of dollars)
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
United States Government and Government Agencies and Authorities	$	998.8	$	296.0	$	1.2	$	1,293.6
States, Municipalities, and Political Subdivisions	1,360.5		229.0		3.1		1,586.4
Foreign Governments	1,254.3		220.4		—		1,474.7
Public Utilities	8,935.8		1,593.5		28.6		10,500.7
Mortgage/Asset-Backed Securities	2,764.4		386.5		3.9		3,147.0
All Other Corporate Bonds	21,377.1		3,229.8		231.1		24,375.8
Redeemable Preferred Stocks	55.8		2.4		1.7		56.5
Total Fixed Maturity Securities	$	36,746.7	$	5,957.6	$	269.6	$	42,434.7

There were no other-than-temporary impairments recognized in accumulated other comprehensive income as of September 30, 2011.

	December 31, 2010
	(in millions of dollars)
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value		Other-Than- Temporary Impairments in AOCI (1)
United States Government and Government Agencies and Authorities	$	981.7	$	128.6	$	8.6	$	1,101.7	$	—
States, Municipalities, and Political Subdivisions	1,271.0		21.5		47.3		1,245.2		—
Foreign Governments	1,248.6		160.7		—		1,409.3		—
Public Utilities	8,874.2		854.3		44.3		9,684.2		—
Mortgage/Asset-Backed Securities	3,047.8		338.3		0.6		3,385.5		—
All Other Corporate Bonds	21,067.5		2,221.3		134.1		23,154.7		3.9
Redeemable Preferred Stocks	55.8		1.7		2.5		55.0		—
Total Fixed Maturity Securities	$	36,546.6	$	3,726.4	$	237.4	$	40,035.6	$	3.9

(1) Accumulated Other Comprehensive Income (Loss)

Length of Time Fixed Maturity Securities had been in a Gross Unrealized Loss Position

The following charts indicate the length of time our fixed maturity securities had been in a gross unrealized loss position.

	September 30, 2011
	(in millions of dollars)
	Less Than 12 Months				12 Months or Greater
	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
United States Government and Government Agencies and Authorities	$	—	$	—	$	6.2	$	1.2
States, Municipalities, and Political Subdivisions	4.8		0.1		89.8		3.0
Public Utilities	211.8		19.7		74.7		8.9
Mortgage/Asset-Backed Securities	95.5		3.1		20.8		0.8
All Other Corporate Bonds	2,315.6		118.8		639.5		112.3
Redeemable Preferred Stocks	—		—		21.1		1.7
Total Fixed Maturity Securities	$	2,627.7	$	141.7	$	852.1	$	127.9

	December 31, 2010
	(in millions of dollars)
	Less Than 12 Months				12 Months or Greater
	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
United States Government and Government Agencies and Authorities	$	23.9	$	3.1	$	10.9	$	5.5
States, Municipalities, and Political Subdivisions	660.6		28.4		100.3		18.9
Public Utilities	1,073.8		41.0		41.0		3.3
Mortgage/Asset-Backed Securities	34.5		0.1		45.5		0.5
All Other Corporate Bonds	1,667.2		48.3		1,071.7		85.8
Redeemable Preferred Stocks	7.6		0.4		20.7		2.1
Total Fixed Maturity Securities	$	3,467.6	$	121.3	$	1,290.1	$	116.1

Distribution of the Maturity Dates for Fixed Maturity Securities

The following is a distribution of the maturity dates for fixed maturity securities. The maturity dates have not been adjusted for possible calls or prepayments.

	September 30, 2011
	(in millions of dollars)
	Total Amortized Cost		Unrealized Gain Position				Unrealized Loss Position
			Gross Gain		Fair Value		Gross Loss		Fair Value
1 year or less	$	669.6	$	13.4	$	636.9	$	0.2	$	45.9
Over 1 year through 5 years	5,061.2		442.7		4,956.9		15.7		531.3
Over 5 years through 10 years	9,563.7		1,191.2		9,257.3		98.5		1,399.1
Over 10 years	18,687.8		3,923.8		21,073.1		151.3		1,387.2
	33,982.3		5,571.1		35,924.2		265.7		3,363.5
Mortgage/Asset-Backed Securities	2,764.4		386.5		3,030.7		3.9		116.3
Total Fixed Maturity Securities	$	36,746.7	$	5,957.6	$	38,954.9	$	269.6	$	3,479.8

	December 31, 2010
	(in millions of dollars)
	Total Amortized Cost		Unrealized Gain Position				Unrealized Loss Position
			Gross Gain		Fair Value		Gross Loss		Fair Value
1 year or less	$	685.7	$	10.9	$	532.6	$	0.4	$	163.6
Over 1 year through 5 years	4,740.6		394.1		4,886.3		5.5		242.9
Over 5 years through 10 years	9,501.6		931.6		9,415.0		37.1		981.1
Over 10 years	18,570.9		2,051.5		17,138.5		193.8		3,290.1
	33,498.8		3,388.1		31,972.4		236.8		4,677.7
Mortgage/Asset-Backed Securities	3,047.8		338.3		3,305.5		0.6		80.0
Total Fixed Maturity Securities	$	36,546.6	$	3,726.4	$	35,277.9	$	237.4	$	4,757.7

Credit Losses Remaining in Retained Earnings Related to Adoption of Accounting Standard

The following table presents the before-tax credit related portion of other-than-temporary impairments on fixed maturity securities still held as of the dates shown for which a portion of the other-than-temporary impairment was recognized in other comprehensive income.

	Nine Months Ended			Three and Nine Months Ended
	September 30, 2011			September 30, 2010
	(in millions of dollars)
Balance at Beginning of Period	$	8.5		$	18.3
Sales or Maturities of Securities	(8.5		)	—
Balance at End of Period	$	—		$	18.3

There was no activity for the three months ended September 30, 2011 or for the three and nine months ended September 30, 2010.

Mortgage Loans by Property Type

Mortgage loans by property type and geographic region are as follows:

	September 30, 2011				December 31, 2010
	Carrying		Percent of		Carrying		Percent of
	Amount		Total		Amount		Total
	(in millions of dollars)
Property Type
Apartment	$	28.1	1.7	%	$	33.7	2.2	%
Industrial	518.2		32.3		458.2		30.2
Mixed	94.1		5.9		95.8		6.3
Office	658.1		41.0		634.7		41.9
Retail	301.2		18.7		286.9		18.9
Other	7.2		0.4		7.5		0.5
Total	$	1,606.9	100.0	%	$	1,516.8	100.0	%

Mortgage Loans by Geographic Region

Region
New England	$	148.2	9.2	%	$	146.8	9.7	%
Mid-Atlantic	172.3		10.7		184.8		12.2
East North Central	214.0		13.3		171.7		11.3
West North Central	152.4		9.5		134.6		8.9
South Atlantic	390.5		24.3		372.0		24.5
East South Central	52.7		3.3		26.9		1.8
West South Central	161.9		10.1		171.8		11.3
Mountain	59.2		3.7		60.7		4.0
Pacific	255.7		15.9		247.5		16.3
Total	$	1,606.9	100.0	%	$	1,516.8	100.0	%

Mortgage Loans, Sorted by Applicable Credit Quality Indicators, Internal Rating

Mortgage loans, sorted by the applicable credit quality indicators, are as follows:

	September 30 2011		December 31 2010
	(in millions of dollars)
Internal Rating
Aa	$	18.0	$	19.0
A	702.6		744.4
Baa	842.2		732.9
Ba	31.0		20.5
B	13.1		—
Total	$	1,606.9	$	1,516.8

Mortgage Loans, Sorted by Applicable Credit Quality Indicators, Loan to Value Ratio

Loan-to-Value Ratio
<= 65%	$	558.0	$	425.3
> 65% <= 75%	806.4		869.2
> 75% <= 85%	169.7		161.9
> 85% <= 100%	72.8		60.4
Total	$	1,606.9	$	1,516.8

Activity in the Allowance for Credit Losses

The activity in the allowance for credit losses is as follows:

	Three and Nine Months Ended September 30 2011		Three Months Ended September 30 2010		Nine Months Ended September 30 2010
	(in millions of dollars)
Balance at Beginning of Period	$	1.5	$	0.5	$	3.2
Provision	—		0.4		0.9
Charge-offs, Net of Recoveries	—		—		(3.2		)
Balance at End of Period	$	1.5	$	0.9	$	0.9

Impaired Mortgage Loans

Impaired mortgage loans are as follows:

	September 30, 2011
	(in millions of dollars)
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
With No Related Allowance Recorded	$	19.6	$	19.6	$	—
With an Allowance Recorded	13.1		14.6		1.5
Total	$	32.7	$	34.2	$	1.5
	December 31, 2010
	(in millions of dollars)
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
With No Related Allowance Recorded	$	9.8	$	9.8	$	—
With an Allowance Recorded	13.1		14.6		1.5
Total	$	22.9	$	24.4	$	1.5

Realized Investment Gains and Losses Reported in Consolidated Statements of Income

Realized Investment Gain and Loss

Realized investment gains and losses reported in our consolidated statements of income are as follows:

	Three Months Ended September 30						Nine Months Ended September 30
	2011			2010			2011			2010
	(in millions of dollars)
Fixed Maturity Securities
Gross Gains on Sales	$	14.8		$	6.0		$	33.0		$	35.4
Gross Losses on Sales	(5.4		)	(4.1		)	(22.1		)	(25.8		)
Other-Than-Temporary Impairment Loss	(1.2		)	—			(4.2		)	(10.4		)
Mortgage Loans and Other Invested Assets
Gross Gains on Sales	1.6			0.3			7.1			6.9
Gross Losses on Sales	—			—			(0.2		)	(0.5		)
Impairment Loss	(0.4		)	(0.4		)	(0.4		)	(2.1		)
Foreign Currency Transactions	0.4			(2.3		)	(1.1		)	(2.6		)
Embedded Derivative in Modified Coinsurance Arrangement	(33.7		)	1.6			(24.4		)	(3.7		)
Net Realized Investment Gain (Loss)	$	(23.9	)	$	1.1		$	(12.3	)	$	(2.8	)