Investments (Tables)

9 Months Ended

Sep. 30, 2012

Notes to Financial Statements [Abstract]

Schedule of Available-for-sale Securities Reconciliation

At September 30, 2012 and December 31, 2011, 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, 2012
	(in millions of dollars)
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
United States Government and Government Agencies and Authorities	$	1,031.5	$	345.8	$	0.9	$	1,376.4
States, Municipalities, and Political Subdivisions	1,423.7		316.0		7.1		1,732.6
Foreign Governments	1,209.6		225.4		—		1,435.0
Public Utilities	9,172.9		1,903.2		22.3		11,053.8
Mortgage/Asset-Backed Securities	2,105.3		318.8		0.5		2,423.6
All Other Corporate Bonds	22,481.3		4,263.3		60.2		26,684.4
Redeemable Preferred Stocks	33.0		5.9		—		38.9
Total Fixed Maturity Securities	$	37,457.3	$	7,378.4	$	91.0	$	44,744.7

	December 31, 2011
	(in millions of dollars)
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
United States Government and Government Agencies and Authorities	$	1,005.8	$	299.7	$	1.1	$	1,304.4
States, Municipalities, and Political Subdivisions	1,377.8		222.6		8.8		1,591.6
Foreign Governments	1,139.4		237.3		—		1,376.7
Public Utilities	9,015.7		1,646.2		28.6		10,633.3
Mortgage/Asset-Backed Securities	2,634.6		344.1		5.5		2,973.2
All Other Corporate Bonds	21,411.6		3,314.8		176.3		24,550.1
Redeemable Preferred Stocks	55.8		3.5		1.9		57.4
Total Fixed Maturity Securities	$	36,640.7	$	6,068.2	$	222.2	$	42,486.7

As of September 30, 2012 and December 31, 2011, we held no fixed maturity securities for which a portion of an other-than-temporary impairment had previously been recognized in other comprehensive income.

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, 2012
	(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	$	—	$	—	$	6.6	$	0.9
States, Municipalities, and Political Subdivisions	1.6		—		42.3		7.1
Public Utilities	109.3		7.5		160.2		14.8
Mortgage/Asset-Backed Securities	—		—		8.3		0.5
All Other Corporate Bonds	292.3		11.8		571.4		48.4
Total Fixed Maturity Securities	$	403.2	$	19.3	$	788.8	$	71.7

	December 31, 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	$	—	$	—	$	6.3	$	1.1
States, Municipalities, and Political Subdivisions	51.6		1.3		75.3		7.5
Public Utilities	192.0		7.9		142.2		20.7
Mortgage/Asset-Backed Securities	94.2		4.8		19.6		0.7
All Other Corporate Bonds	1,703.9		65.5		684.9		110.8
Redeemable Preferred Stocks	—		—		20.9		1.9
Total Fixed Maturity Securities	$	2,041.7	$	79.5	$	949.2	$	142.7

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, 2012
	(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	$	990.2	$	23.4	$	988.7	$	0.1	$	24.8
Over 1 year through 5 years	5,613.8		590.6		6,014.8		7.6		182.0
Over 5 years through 10 years	9,776.2		1,623.1		11,051.4		17.0		330.9
Over 10 years	18,971.8		4,822.5		23,082.5		65.8		646.0
	35,352.0		7,059.6		41,137.4		90.5		1,183.7
Mortgage/Asset-Backed Securities	2,105.3		318.8		2,415.3		0.5		8.3
Total Fixed Maturity Securities	$	37,457.3	$	7,378.4	$	43,552.7	$	91.0	$	1,192.0

Note 4 - Investments - Continued

	December 31, 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	$	715.1	$	16.0	$	701.4	$	0.1	$	29.6
Over 1 year through 5 years	5,161.5		449.8		4,949.0		20.7		641.6
Over 5 years through 10 years	9,630.5		1,266.3		9,903.8		52.8		940.2
Over 10 years	18,499.0		3,992.0		21,082.2		143.1		1,265.7
	34,006.1		5,724.1		36,636.4		216.7		2,877.1
Mortgage/Asset-Backed Securities	2,634.6		344.1		2,859.4		5.5		113.8
Total Fixed Maturity Securities	$	36,640.7	$	6,068.2	$	39,495.8	$	222.2	$	2,990.9

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 for which a portion of an other-than-temporary impairment was recognized in other comprehensive income. The fixed maturity security to which the impairment pertained was sold during the three months ended March 31, 2011. We held no fixed maturity securities during the three months ended September 30, 2011, as of the beginning of 2012, or during the nine months ended September 30, 2012 for which a portion of an other-than-temporary impairment was previously recognized in other comprehensive income.

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

Mortgage Loans by Property Type

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

	September 30, 2012				December 31, 2011
	Carrying		Percent of		Carrying		Percent of
	Amount		Total		Amount		Total
	(in millions of dollars)
Property Type
Apartment	$	34.3	2.1	%	$	28.0	1.8	%
Industrial	528.4		31.7		502.0		31.1
Mixed	78.9		4.7		93.5		5.8
Office	677.1		40.7		659.3		40.9
Retail	346.5		20.8		322.4		20.0
Other	—		—		7.1		0.4
Total	$	1,665.2	100.0	%	$	1,612.3	100.0	%

Mortgage Loans by Geographic Region

Region
New England	$	132.4	8.0	%	$	147.0	9.1	%
Mid-Atlantic	161.2		9.7		174.1		10.8
East North Central	212.1		12.7		212.7		13.2
West North Central	147.3		8.8		151.2		9.4
South Atlantic	418.6		25.2		383.8		23.8
East South Central	80.1		4.8		52.4		3.3
West South Central	173.1		10.4		160.4		9.9
Mountain	81.9		4.9		69.5		4.3
Pacific	258.5		15.5		261.2		16.2
Total	$	1,665.2	100.0	%	$	1,612.3	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		December 31
	2012		2011
	(in millions of dollars)
Internal Rating
Aa	$	11.7	$	10.9
A	655.8		712.6
Baa	951.0		855.0
Ba	29.4		20.7
B	17.3		13.1
Total	$	1,665.2	$	1,612.3

Mortgage Loans by Applicable Credit Quality Indicators Loan to Value Ratio

Loan-to-Value Ratio
<= 65%	$	648.6	$	578.4
> 65% <= 75%	781.9		802.3
> 75% <= 85%	186.8		165.1
> 85% <= 100%	47.9		66.5
Total	$	1,665.2	$	1,612.3

Activity in the Allowance for Credit Losses

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

	Three Months Ended September 30				Nine Months Ended September 30
	2012		2011		2012			2011
	(in millions of dollars)
Balance at Beginning of Period	$	1.5	$	1.5	$	1.5		$	1.5
Provision	1.3		—		1.8			—
Charge-offs, Net of Recoveries	—		—		(0.5		)	—
Balance at End of Period	$	2.8	$	1.5	$	2.8		$	1.5

Impaired Mortgage Loans

Impaired mortgage loans are as follows:

	September 30, 2012
	(in millions of dollars)
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
With No Related Allowance Recorded	$	4.3	$	4.3	$	—
With an Allowance Recorded	17.3		20.1		2.8
Total	$	21.6	$	24.4	$	2.8
	December 31, 2011
	(in millions of dollars)
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
With No Related Allowance Recorded	$	9.4	$	9.4	$	—
With an Allowance Recorded	13.1		14.6		1.5
Total	$	22.5	$	24.0	$	1.5

Troubled Debt Restructurings

We had no troubled debt restructurings during the three months ended September 30, 2012 and 2011. Our troubled debt restructurings during the nine months ended September 30, 2012 and 2011 were comprised entirely of loan foreclosures. A summary of our troubled debt restructurings is as follows:

	Nine Months Ended September 30
	2012		2011
	(in millions of dollars)
Carrying Amount	$	13.1	$	9.8
Number of Loans	2		1

We had no realized losses on loan foreclosures during the nine months ended September 30, 2012 and 2011 other than the initial impairment losses realized prior to foreclosure.

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
	2012			2011			2012			2011
	(in millions of dollars)
Fixed Maturity Securities
Gross Gains on Sales	$	4.6		$	14.8		$	14.0		$	33.0
Gross Losses on Sales	(2.3		)	(5.4		)	(9.0		)	(22.1		)
Other-Than-Temporary Impairment Loss	—			(1.2		)	—			(4.2		)
Mortgage Loans and Other Invested Assets
Gross Gains on Sales	2.3			1.6			2.3			7.1
Gross Losses on Sales	—			—			—			(0.2		)
Impairment Loss	(1.3		)	(0.4		)	(1.8		)	(0.4		)
Embedded Derivative in Modified Coinsurance Arrangement	19.7			(33.7		)	28.7			(24.4		)
Foreign Currency Transactions	(1.7		)	0.4			(2.6		)	(1.1		)
Net Realized Investment Gain (Loss)	$	21.3		$	(23.9	)	$	31.6		$	(12.3	)