Investments (Tables)

6 Months Ended

Jun. 30, 2014

Notes to Financial Statements [Abstract]

Amortized Cost and Fair Values of Securities by Security Type

The amortized cost and fair values of securities by security type are shown as follows.

	June 30, 2014
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
	(in millions of dollars)
United States Government and Government Agencies and Authorities	$	967.1	$	223.2	$	1.6	$	1,188.7
States, Municipalities, and Political Subdivisions	1,733.2		287.1		6.6		2,013.7
Foreign Governments	1,224.1		170.1		0.6		1,393.6
Public Utilities	7,187.2		1,315.4		7.2		8,495.4
Mortgage/Asset-Backed Securities	2,355.8		209.3		0.5		2,564.6
All Other Corporate Bonds	25,373.4		3,869.8		48.5		29,194.7
Redeemable Preferred Stocks	44.0		6.2		—		50.2
Total Fixed Maturity Securities	$	38,884.8	$	6,081.1	$	65.0	$	44,900.9

	December 31, 2013
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
	(in millions of dollars)
United States Government and Government Agencies and Authorities	$	1,028.6	$	173.1	$	5.6	$	1,196.1
States, Municipalities, and Political Subdivisions	1,706.0		117.2		40.0		1,783.2
Foreign Governments	1,226.4		149.6		2.8		1,373.2
Public Utilities	7,121.7		901.2		25.7		7,997.2
Mortgage/Asset-Backed Securities	1,858.7		184.6		4.0		2,039.3
All Other Corporate Bonds	25,315.2		2,828.3		225.8		27,917.7
Redeemable Preferred Stocks	33.0		4.7		—		37.7
Total Fixed Maturity Securities	$	38,289.6	$	4,358.7	$	303.9	$	42,344.4

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 have been in a gross unrealized loss position.

	June 30, 2014
	Less Than 12 Months				12 Months or Greater
	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
	(in millions of dollars)
United States Government and Government Agencies and Authorities	$	—	$	—	$	6.2	$	1.6
States, Municipalities, and Political Subdivisions	31.4		0.2		144.6		6.4
Foreign Governments	36.5		0.6		—		—
Public Utilities	23.1		0.7		139.9		6.5
Mortgage/Asset-Backed Securities	—		—		17.8		0.5
All Other Corporate Bonds	151.8		2.5		1,250.5		46.0
Total Fixed Maturity Securities	$	242.8	$	4.0	$	1,559.0	$	61.0

	December 31, 2013
	Less Than 12 Months				12 Months or Greater
	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
	(in millions of dollars)
United States Government and Government Agencies and Authorities	$	41.1	$	3.1	$	5.2	$	2.5
States, Municipalities, and Political Subdivisions	412.5		33.5		37.2		6.5
Foreign Governments	87.2		2.8		—		—
Public Utilities	506.0		23.7		27.5		2.0
Mortgage/Asset-Backed Securities	341.0		3.6		2.5		0.4
All Other Corporate Bonds	3,776.9		197.4		238.6		28.4
Total Fixed Maturity Securities	$	5,164.7	$	264.1	$	311.0	$	39.8

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.

	June 30, 2014
	Total Amortized Cost		Unrealized Gain Position				Unrealized Loss Position
			Gross Gain		Fair Value		Gross Loss		Fair Value
	(in millions of dollars)
1 year or less	$	947.1	$	26.4	$	973.5	$	—	$	—
Over 1 year through 5 years	7,070.5		802.6		7,872.7		—		0.4
Over 5 years through 10 years	9,619.7		1,111.9		10,025.6		18.8		687.2
Over 10 years	18,891.7		3,930.9		21,680.5		45.7		1,096.4
	36,529.0		5,871.8		40,552.3		64.5		1,784.0
Mortgage/Asset-Backed Securities	2,355.8		209.3		2,546.8		0.5		17.8
Total Fixed Maturity Securities	$	38,884.8	$	6,081.1	$	43,099.1	$	65.0	$	1,801.8

	December 31, 2013
	Total Amortized Cost		Unrealized Gain Position				Unrealized Loss Position
			Gross Gain		Fair Value		Gross Loss		Fair Value
	(in millions of dollars)
1 year or less	$	903.9	$	20.6	$	915.5	$	—	$	9.0
Over 1 year through 5 years	7,098.2		727.1		7,678.5		0.6		146.2
Over 5 years through 10 years	9,492.6		940.2		8,137.4		95.8		2,199.6
Over 10 years	18,936.2		2,486.2		18,441.5		203.5		2,777.4
	36,430.9		4,174.1		35,172.9		299.9		5,132.2
Mortgage/Asset-Backed Securities	1,858.7		184.6		1,695.8		4.0		343.5
Total Fixed Maturity Securities	$	38,289.6	$	4,358.7	$	36,868.7	$	303.9	$	5,475.7

Mortgage Loans by Property Type

Mortgage loans by property type and geographic region are presented below.

	June 30, 2014				December 31, 2013
	(in millions of dollars)
	Carrying		Percent of		Carrying		Percent of
	Amount		Total		Amount		Total
Property Type
Apartment	$	80.4	4.4	%	$	61.1	3.3	%
Industrial	533.3		29.3		567.8		31.3
Office	799.1		43.8		776.5		42.8
Retail	411.0		22.5		409.7		22.6
Total	$	1,823.8	100.0	%	$	1,815.1	100.0	%

Mortgage Loans by Geographic Region

Region
New England	$	113.2	6.2	%	$	100.9	5.6	%
Mid-Atlantic	182.3		10.0		191.5		10.5
East North Central	232.0		12.7		244.3		13.5
West North Central	169.0		9.3		162.3		8.9
South Atlantic	447.0		24.5		447.7		24.7
East South Central	66.1		3.6		67.7		3.7
West South Central	202.5		11.1		190.9		10.5
Mountain	108.4		6.0		101.9		5.6
Pacific	303.3		16.6		307.9		17.0
Total	$	1,823.8	100.0	%	$	1,815.1	100.0	%

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

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

	June 30 2014		December 31 2013
	(in millions of dollars)
Internal Rating
Aa	$	8.0	$	10.8
A	693.7		683.1
Baa	1,077.6		1,094.6
Ba	13.3		13.5
B	31.2		13.1
Total	$	1,823.8	$	1,815.1

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

Loan-to-Value Ratio
<= 65%	$	864.0	$	777.4
> 65% <= 75%	832.2		867.5
> 75% <= 85%	90.0		107.6
> 85%	37.6		62.6
Total	$	1,823.8	$	1,815.1

Troubled Debt Restructurings

A summary of our troubled debt restructurings is as follows:

	Three Months Ended June 30				Six Months Ended June 30
	2014		2013		2014		2013
	(in millions of dollars)
Foreclosure
Carrying Amount	$	—	$	4.3	$	—	$	4.3
Number of Loans	—		1		—		1
Modification of Loan Terms
Carrying Amount	$	—	$	—	$	18.1	$	—
Realized Loss	$	—	$	—	$	3.0	$	—
Number of Loans	—		—		1		—

Activity in the Allowance for Credit Losses

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

	Three Months Ended June 30				Six Months Ended June 30
	2014		2013		2014		2013
	(in millions of dollars)
Balance at Beginning of Period	$	4.5	$	1.5	$	1.5	$	1.5
Provision	—		—		3.0		—
Balance at End of Period	$	4.5	$	1.5	$	4.5	$	1.5

Impaired Mortgage Loans

Impaired mortgage loans are as follows:

	June 30, 2014
	(in millions of dollars)
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
With an Allowance Recorded	$	31.2	$	35.7	$	4.5
	December 31, 2013
	(in millions of dollars)
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
With an Allowance Recorded	$	13.1	$	14.6	$	1.5

Schedule of Financial Instrument and Derivative Offsetting

Shown below are our financial instruments that either meet the accounting requirements that allow them to be offset in our balance sheets or that are subject to an enforceable master netting arrangement or similar agreement. Our accounting policy is to not offset these financial instruments in our balance sheets. Net amounts disclosed below have been reduced by the amount of collateral pledged to or received from our counterparties.

	June 30, 2014
	Gross Amount						Gross Amount Not
	of Recognized		Gross Amount		Net Amount		Offset in Balance Sheet
	Financial		Offset in		Presented in		Financial			Cash			Net
	Instruments		Balance Sheet		Balance Sheet		Instruments			Collateral			Amount
	(in millions of dollars)
Financial Assets:
Derivatives	$	11.4	$	—	$	11.4	$	(8.0	)	$	(3.4	)	$	—
Securities Lending	176.9		—		176.9		(119.5		)	(57.4		)	—
Total	$	188.3	$	—	$	188.3	$	(127.5	)	$	(60.8	)	$	—
Financial Liabilities:
Derivatives	$	133.2	$	—	$	133.2	$	(100.9	)	$	—		$	32.3
Securities Lending	57.4		—		57.4		(57.4		)	—			—
Total	$	190.6	$	—	$	190.6	$	(158.3	)	$	—		$	32.3

	December 31, 2013
	Gross Amount						Gross Amount Not
	of Recognized		Gross Amount		Net Amount		Offset in Balance Sheet
	Financial		Offset in		Presented in		Financial			Cash			Net
	Instruments		Balance Sheet		Balance Sheet		Instruments			Collateral			Amount
	(in millions of dollars)
Financial Assets:
Derivatives	$	10.8	$	—	$	10.8	$	(9.5	)	$	(1.1	)	$	0.2
Securities Lending	201.6		—		201.6		(125.1		)	(76.5		)	—
Total	$	212.4	$	—	$	212.4	$	(134.6	)	$	(77.6	)	$	0.2
Financial Liabilities:
Derivatives	$	135.6	$	—	$	135.6	$	(98.6	)	$	—		$	37.0
Securities Lending	76.5		—		76.5		(76.5		)	—			—
Total	$	212.1	$	—	$	212.1	$	(175.1	)	$	—		$	37.0

Net Investment Income

Net Investment Income

Net investment income reported in our consolidated statements of income is as follows:

	Three Months Ended June 30				Six Months Ended June 30
	2014		2013		2014		2013
	(in millions of dollars)
Fixed Maturity Securities	$	589.6	$	597.2	$	1,170.7	$	1,187.1
Derivatives	10.3		9.0		20.2		16.7
Mortgage Loans	26.6		27.1		55.0		53.1
Policy Loans	4.0		3.9		7.9		7.6
Other Long-term Investments	11.9		2.8		15.7		10.5
Short-term Investments	0.6		0.6		1.1		1.4
Gross Investment Income	643.0		640.6		1,270.6		1,276.4
Less Investment Expenses	6.9		6.8		14.9		13.9
Less Investment Income on Participation Fund Account Assets	3.8		3.9		7.6		7.9
Less Amortization of Tax Credit Partnerships	3.2		3.8		6.5		7.4
Net Investment Income	$	629.1	$	626.1	$	1,241.6	$	1,247.2

Realized Investment Gains and Losses

Realized Investment Gain and Loss

Realized investment gains and losses, which for sales are based upon specific identification of the investments sold, are as follows:

	Three Months Ended June 30						Six Months Ended June 30
	2014			2013			2014			2013
	(in millions of dollars)
Fixed Maturity Securities
Gross Gains on Sales	$	1.0		$	2.6		$	1.9		$	9.2
Gross Losses on Sales	(1.1		)	(1.6		)	(6.5		)	(7.1		)
Other-Than-Temporary Impairment Loss	—			—			—			(0.8		)
Mortgage Loans and Other Invested Assets
Gross Gains on Sales	2.4			1.4			9.8			9.0
Gross Losses on Sales	—			—			(0.6		)	—
Impairment Loss	(0.4		)	—			(3.4		)	(1.0		)
Embedded Derivative in Modified Coinsurance Arrangement	12.4			12.4			20.9			18.8
All Other Derivatives	12.7			(0.2		)	12.3			(0.5		)
Foreign Currency Transactions	(1.1		)	(1.3		)	(2.2		)	(4.0		)
Net Realized Investment Gain	$	25.9		$	13.3		$	32.2		$	23.6