Investments (Tables)

3 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation

At March 31, 2015 and December 31, 2014, 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:



	March 31, 2015
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
	(in millions of dollars)
United States Government and Government Agencies and Authorities	$	1,140.5	$	273.1	$	0.2	$	1,413.4
States, Municipalities, and Political Subdivisions	1,760.3		402.0		0.2		2,162.1
Foreign Governments	1,033.9		210.0		—		1,243.9
Public Utilities	7,044.5		1,622.1		0.5		8,666.1
Mortgage/Asset-Backed Securities	2,174.6		240.8		0.1		2,415.3
All Other Corporate Bonds	25,828.1		4,162.9		88.9		29,902.1
Redeemable Preferred Stocks	44.0		5.8		—		49.8
Total Fixed Maturity Securities	$	39,025.9	$	6,916.7	$	89.9	$	45,852.7



	December 31, 2014
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
	(in millions of dollars)
United States Government and Government Agencies and Authorities	$	983.5	$	255.5	$	0.5	$	1,238.5
States, Municipalities, and Political Subdivisions	1,745.0		377.6		1.1		2,121.5
Foreign Governments	1,101.1		206.3		—		1,307.4
Public Utilities	7,046.1		1,505.4		0.9		8,550.6
Mortgage/Asset-Backed Securities	2,224.9		207.0		0.1		2,431.8
All Other Corporate Bonds	25,658.8		3,828.6		122.2		29,365.2
Redeemable Preferred Stocks	44.0		5.9		—		49.9
Total Fixed Maturity Securities	$	38,803.4	$	6,386.3	$	124.8	$	45,064.9

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.



	March 31, 2015
	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	$	20.7	$	0.2	$	—	$	—
States, Municipalities, and Political Subdivisions	1.6		—		1.8		0.2
Public Utilities	24.8		0.3		6.8		0.2
Mortgage/Asset-Backed Securities	19.0		—		1.9		0.1
All Other Corporate Bonds	1,108.5		67.9		332.9		21.0
Total Fixed Maturity Securities	$	1,174.6	$	68.4	$	343.4	$	21.5



	December 31, 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	$	—	$	—	$	7.4	$	0.5
States, Municipalities, and Political Subdivisions	1.6		—		42.0		1.1
Public Utilities	5.1		0.2		58.2		0.7
Mortgage/Asset-Backed Securities	28.0		—		1.9		0.1
All Other Corporate Bonds	1,666.2		82.2		729.4		40.0
Total Fixed Maturity Securities	$	1,700.9	$	82.4	$	838.9	$	42.4

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.



	March 31, 2015
	Total Amortized Cost		Unrealized Gain Position				Unrealized Loss Position
	Total Amortized Cost		Gross Gain		Fair Value		Gross Loss		Fair Value
	(in millions of dollars)
1 year or less	$	1,283.3	$	30.1	$	1,313.4	$	—	$	—
Over 1 year through 5 years	6,784.1		741.4		7,391.3		14.8		119.4
Over 5 years through 10 years	10,002.5		1,124.5		10,112.2		46.8		968.0
Over 10 years	18,781.4		4,779.9		23,123.4		28.2		409.7
	36,851.3		6,675.9		41,940.3		89.8		1,497.1
Mortgage/Asset-Backed Securities	2,174.6		240.8		2,394.4		0.1		20.9
Total Fixed Maturity Securities	$	39,025.9	$	6,916.7	$	44,334.7	$	89.9	$	1,518.0



	December 31, 2014
	Total Amortized Cost		Unrealized Gain Position				Unrealized Loss Position
	Total Amortized Cost		Gross Gain		Fair Value		Gross Loss		Fair Value
	(in millions of dollars)
1 year or less	$	1,372.0	$	34.3	$	1,406.3	$	—	$	—
Over 1 year through 5 years	6,871.2		719.3		7,434.0		9.4		147.1
Over 5 years through 10 years	9,532.9		1,003.3		8,792.3		80.9		1,663.0
Over 10 years	18,802.4		4,422.4		22,490.6		34.4		699.8
	36,578.5		6,179.3		40,123.2		124.7		2,509.9
Mortgage/Asset-Backed Securities	2,224.9		207.0		2,401.9		0.1		29.9
Total Fixed Maturity Securities	$	38,803.4	$	6,386.3	$	42,525.1	$	124.8	$	2,539.8

Low Income Housing Tax Credits

The Company invests in tax credit partnerships primarily for the receipt of income tax credits and tax benefits derived from passive losses on the investments. Amounts recognized in the consolidated statements of income are as follows:



	Three Months Ended March 31
	2015			2014
	(in millions of dollars)
Income Tax Credits	$	10.5		$	10.4
Amortization, net of tax	(5.8		)	(5.8		)
Income Tax Benefit	$	4.7		$	4.6

Mortgage Loans by Property Type and Geographic Region

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



	March 31, 2015				December 31, 2014
	(in millions of dollars)
	Carrying		Percent of		Carrying		Percent of
	Amount		Total		Amount		Total
Property Type
Apartment	$	118.0	6.2	%	$	110.1	5.9	%
Industrial	523.7		27.6		542.9		29.2
Office	819.3		43.2		794.0		42.8
Retail	435.5		23.0		409.6		22.1
Total	$	1,896.5	100.0	%	$	1,856.6	100.0	%



Region
New England	$	104.4	5.5	%	$	105.6	5.7	%
Mid-Atlantic	177.9		9.4		179.4		9.7
East North Central	209.0		11.0		210.6		11.4
West North Central	164.3		8.7		166.2		8.9
South Atlantic	446.8		23.5		453.6		24.4
East South Central	80.8		4.3		75.3		4.1
West South Central	213.7		11.3		215.6		11.6
Mountain	165.2		8.7		116.0		6.2
Pacific	334.4		17.6		334.3		18.0
Total	$	1,896.5	100.0	%	$	1,856.6	100.0	%

Mortgage Loans by Internal Credit Ratings and Loan-to-Value Ratios

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



	March 31 2015		December 31 2014
	(in millions of dollars)
Internal Rating
Aa	$	1.7	$	7.7
A	615.1		666.0
Baa	1,253.6		1,156.7
Ba	13.0		13.1
B	13.1		13.1
Total	$	1,896.5	$	1,856.6



Loan-to-Value Ratio
<= 65%	$	916.7	$	898.7
> 65% <= 75%	839.1		818.0
> 75% <= 85%	86.6		102.3
> 85%	54.1		37.6
Total	$	1,896.5	$	1,856.6

Activity in the Allowance for Credit Losses

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



	Three Months Ended March 31
	2015		2014
	(in millions of dollars)
Balance at Beginning of Year	$	1.5	$	1.5
Provision	—		3.0
Balance at End of Period	$	1.5	$	4.5

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.



	March 31, 2015
	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	$	53.2	$	—	$	53.2	$	(21.2	)	$	(28.7	)	$	3.3
Securities Lending	181.1		—		181.1		(155.8		)	(25.3		)	—
Total	$	234.3	$	—	$	234.3	$	(177.0	)	$	(54.0	)	$	3.3

Financial Liabilities:
Derivatives	$	71.8	$	—	$	71.8	$	(49.3	)	$	—		$	22.5
Securities Lending	25.3		—		25.3		(25.3		)	—			—
Total	$	97.1	$	—	$	97.1	$	(74.6	)	$	—		$	22.5



	December 31, 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	$	28.0	$	—	$	28.0	$	(7.2	)	$	(15.4	)	$	5.4
Securities Lending	176.5		—		176.5		(118.1		)	(58.4		)	—
Total	$	204.5	$	—	$	204.5	$	(125.3	)	$	(73.8	)	$	5.4

Financial Liabilities:
Derivatives	$	92.9	$	—	$	92.9	$	(67.0	)	$	—		$	25.9
Securities Lending	58.4		—		58.4		(58.4		)	—			—
Total	$	151.3	$	—	$	151.3	$	(125.4	)	$	—		$	25.9

Net Investment Income

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



	Three Months Ended March 31
	2015		2014
	(in millions of dollars)
Fixed Maturity Securities	$	566.2	$	581.1
Derivatives	10.9		9.9
Mortgage Loans	28.3		28.4
Policy Loans	4.0		3.9
Other Long-term Investments	3.9		3.8
Short-term Investments	0.9		0.5
Gross Investment Income	614.2		627.6
Less Investment Expenses	8.5		8.0
Less Investment Income on Participation Fund Account Assets	3.7		3.8
Net Investment Income	$	602.0	$	615.8

Realized Investment Gains and Losses Reported in Consolidated Statements of Income

Realized Investment Gain and Loss

Realized investment gains and losses are as follows:



	Three Months Ended March 31
	2015			2014
	(in millions of dollars)
Fixed Maturity Securities
Gross Gains on Sales	$	2.5		$	0.9
Gross Losses on Sales	(5.7		)	(5.4		)
Other-Than-Temporary Impairment Loss	(4.5		)	—
Mortgage Loans and Other Invested Assets
Gross Gains on Sales	1.1			7.4
Gross Losses on Sales	—			(0.6		)
Impairment Loss	(2.7		)	(3.0		)
Embedded Derivative in Modified Coinsurance Arrangement	(3.9		)	8.5
All Other Derivatives	(1.1		)	(0.4		)
Foreign Currency Transactions	(1.0		)	(1.1		)
Net Realized Investment Gain (Loss)	$	(15.3	)	$	6.3