Delaware | 62-1598430 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
1 FOUNTAIN SQUARE CHATTANOOGA, TENNESSEE | 37402 |
(Address of principal executive offices) | (Zip Code) |
423.294.1011 | |
(Registrant's telephone number, including area code) |
Title of each class | Name of each exchange on which registered |
Common stock, $0.10 par value | New York Stock Exchange |
Page | |||
• | Sustained periods of low interest rates. |
• | Fluctuation in insurance reserve liabilities and claim payments due to changes in claim incidence, recovery rates, mortality and morbidity rates, and policy benefit offsets due to, among other factors, the rate of unemployment and consumer confidence, the emergence of new diseases, epidemics, or pandemics, new trends and developments in medical treatments, the effectiveness of our claims operational processes, and changes in government programs. |
• | Unfavorable economic or business conditions, both domestic and foreign. |
• | Legislative, regulatory, or tax changes, both domestic and foreign, including the effect of potential legislation and increased regulation in the current political environment. |
• | Investment results, including, but not limited to, changes in interest rates, defaults, changes in credit spreads, impairments, and the lack of appropriate investments in the market which can be acquired to match our liabilities. |
• | A cyber attack or other security breach could result in the unauthorized disclosure of confidential data. |
• | The failure of our business recovery and incident management processes to resume our business operations in the event of a natural catastrophe, cyber attack, or other event. |
• | Increased competition from other insurers and financial services companies due to industry consolidation, new entrants to our markets, or other factors. |
• | Execution risk related to our technology needs. |
• | Changes in our financial strength and credit ratings. |
• | Damage to our reputation due to, among other factors, regulatory investigations, legal proceedings, external events, and/or inadequate or failed internal controls and procedures. |
• | Actual experience that deviates from our assumptions used in pricing, underwriting, and reserving. |
• | Actual persistency and/or sales growth that is higher or lower than projected. |
• | Changes in demand for our products due to, among other factors, changes in societal attitudes, the rate of unemployment, consumer confidence, and/or legislative and regulatory changes, including healthcare reform. |
• | Effectiveness of our risk management program. |
• | Contingencies and the level and results of litigation. |
• | Availability of reinsurance in the market and the ability of our reinsurers to meet their obligations to us. |
• | Ineffectiveness of our derivatives hedging programs due to changes in the economic environment, counterparty risk, ratings downgrades, capital market volatility, changes in interest rates, and/or regulation. |
• | Changes in accounting standards, practices, or policies. |
• | Fluctuation in foreign currency exchange rates. |
• | Ability to generate sufficient internal liquidity and/or obtain external financing. |
• | Recoverability and/or realization of the carrying value of our intangible assets, long-lived assets, and deferred tax assets. |
• | Terrorism, both within the U.S. and abroad, ongoing military actions, and heightened security measures in response to these types of threats. |
Unum US | 61.4 | % |
Unum UK | 7.1 | |
Colonial Life | 16.6 | |
Closed Block | 14.9 | |
Total | 100.0 | % |
Group Disability | 45.4 | % |
Group Life and Accidental Death & Dismemberment | 29.8 | |
Individual Disability | 9.7 | |
Voluntary Benefits | 15.1 | |
Total | 100.0 | % |
Group Long-term Disability | 69.0 | % |
Group Life | 21.1 | |
Supplemental | 9.9 | |
Total | 100.0 | % |
Accident, Sickness, and Disability | 58.9 | % |
Life | 18.9 | |
Cancer and Critical Illness | 22.2 | |
Total | 100.0 | % |
Layer | Coverage (in millions) | Percent Coverage | |||||
First | $ | 50.0 | 50 | % | |||
Second | 55.0 | 55 | |||||
Third | 90.0 | 60 | |||||
Fourth | 180.0 | 60 | |||||
Total Catastrophic Coverage | $ | 375.0 |
Layer | Coverage (in millions) | Percent Coverage | |||||
First | £ | 9.0 | 15 | % | |||
Second | 18.0 | 30 | |||||
Total Catastrophic Coverage | £ | 27.0 |
Name | Age | Position |
Richard P. McKenney | 47 | President and Chief Executive Officer and a Director |
Timothy G. Arnold | 53 | Executive Vice President, President and Chief Executive Officer, Colonial Life |
Breege A. Farrell | 56 | Executive Vice President, Chief Investment Officer |
Lisa G. Iglesias | 50 | Executive Vice President, General Counsel |
Christopher J. Jerome | 54 | Executive Vice President, Global Services |
John F. McGarry | 58 | Executive Vice President and Chief Financial Officer |
Peter G. O'Donnell | 49 | President and Chief Executive Officer, Unum UK |
Michael Q. Simonds | 42 | Executive Vice President, President and Chief Executive Officer, Unum US |
Market Price | |||||||||||
High | Low | Dividend | |||||||||
2015 | |||||||||||
4th Quarter | $ | 37.26 | $ | 31.22 | $ | 0.185 | |||||
3rd Quarter | 38.15 | 29.81 | 0.185 | ||||||||
2nd Quarter | 37.17 | 33.05 | 0.165 | ||||||||
1st Quarter | 35.21 | 30.72 | 0.165 | ||||||||
2014 | |||||||||||
4th Quarter | $ | 35.77 | $ | 31.25 | $ | 0.165 | |||||
3rd Quarter | 37.15 | 33.60 | 0.165 | ||||||||
2nd Quarter | 35.78 | 32.07 | 0.145 | ||||||||
1st Quarter | 36.30 | 30.66 | 0.145 |
(a) Total Number of Shares Purchased | (b) Average Price Paid per Share (1) | (c) Total Number of Shares Purchased as Part of Publicly Announced Program (2) | (d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (2) | ||||||||||
October 1 - October 31, 2015 | — | $ | — | — | $ | 602,674,164 | |||||||
November 1 - November 30, 2015 | 1,540,000 | 36.51 | 1,540,000 | 546,453,841 | |||||||||
December 1 - December 31, 2015 | 1,280,959 | 34.43 | 1,280,959 | 502,346,496 | |||||||||
Total | 2,820,959 | 2,820,959 |
(in millions of dollars, except share data) | |||||||||||||||||||
At or for the Year Ended December 31 | |||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
As Adjusted (1) | |||||||||||||||||||
Income Statement Data | |||||||||||||||||||
Revenue | |||||||||||||||||||
Premium Income | $ | 8,082.4 | $ | 7,797.2 | $ | 7,624.7 | $ | 7,716.1 | $ | 7,514.2 | |||||||||
Net Investment Income | 2,481.2 | 2,492.2 | 2,506.9 | 2,531.3 | 2,533.8 | ||||||||||||||
Net Realized Investment Gain (Loss) | (43.8 | ) | 16.1 | 6.8 | 56.2 | (4.9 | ) | ||||||||||||
Other Income | 211.5 | 219.0 | 230.2 | 227.9 | 249.1 | ||||||||||||||
Total | 10,731.3 | 10,524.5 | 10,368.6 | 10,531.5 | 10,292.2 | ||||||||||||||
Benefits and Expenses | |||||||||||||||||||
Benefits and Change in Reserves for Future Benefits (2) | 6,782.8 | 7,310.8 | 6,595.7 | 6,722.2 | 7,209.5 | ||||||||||||||
Commissions | 996.3 | 935.3 | 909.5 | 917.2 | 879.2 | ||||||||||||||
Interest and Debt Expense | 152.8 | 167.5 | 149.4 | 145.4 | 143.3 | ||||||||||||||
Other Expenses (3) | 1,561.1 | 1,568.9 | 1,494.0 | 1,481.1 | 1,712.7 | ||||||||||||||
Total | 9,493.0 | 9,982.5 | 9,148.6 | 9,265.9 | 9,944.7 | ||||||||||||||
Income Before Income Tax | 1,238.3 | 542.0 | 1,220.0 | 1,265.6 | 347.5 | ||||||||||||||
Income Tax | 371.2 | 139.9 | 373.0 | 377.5 | 63.9 | ||||||||||||||
Net Income | $ | 867.1 | $ | 402.1 | $ | 847.0 | $ | 888.1 | $ | 283.6 | |||||||||
Balance Sheet Data | |||||||||||||||||||
Assets | $ | 60,589.7 | $ | 62,450.2 | $ | 59,374.1 | $ | 62,223.7 | $ | 59,552.6 | |||||||||
Long-term Debt | $ | 2,475.1 | $ | 2,628.7 | $ | 2,612.0 | $ | 2,755.4 | $ | 2,570.2 | |||||||||
Accumulated Other Comprehensive Income | $ | 16.1 | $ | 166.4 | $ | 255.0 | $ | 628.0 | $ | 461.8 | |||||||||
Other Stockholders' Equity | 8,647.8 | 8,355.5 | 8,384.9 | 7,976.6 | 7,706.2 | ||||||||||||||
Total Stockholders' Equity | $ | 8,663.9 | $ | 8,521.9 | $ | 8,639.9 | $ | 8,604.6 | $ | 8,168.0 | |||||||||
Per Share Data | |||||||||||||||||||
Net Income | |||||||||||||||||||
Basic | $ | 3.51 | $ | 1.57 | $ | 3.20 | $ | 3.16 | $ | 0.94 | |||||||||
Assuming Dilution | $ | 3.50 | $ | 1.57 | $ | 3.19 | $ | 3.15 | $ | 0.94 | |||||||||
Stockholders' Equity | $ | 35.96 | $ | 33.78 | $ | 33.23 | $ | 31.84 | $ | 27.91 | |||||||||
Cash Dividends | $ | 0.700 | $ | 0.620 | $ | 0.550 | $ | 0.470 | $ | 0.395 | |||||||||
Weighted Average Common Shares Outstanding | |||||||||||||||||||
Basic (000s) | 246,986.7 | 255,525.9 | 264,725.8 | 281,355.9 | 302,399.8 | ||||||||||||||
Assuming Dilution (000s) | 247,854.7 | 256,652.8 | 265,949.2 | 281,756.8 | 303,571.0 |
(in millions of dollars) | |||||||||||
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
Operating Revenue | $ | 10,775.1 | $ | 10,508.4 | $ | 10,361.8 | |||||
Net Realized Investment Gain (Loss) | (43.8 | ) | 16.1 | 6.8 | |||||||
Total Revenue | $ | 10,731.3 | $ | 10,524.5 | $ | 10,368.6 | |||||
Before-tax Operating Income | $ | 1,294.0 | $ | 1,307.3 | $ | 1,256.6 | |||||
Net Realized Investment Gain (Loss) | (43.8 | ) | 16.1 | 6.8 | |||||||
Non-operating Retirement-related Loss | (11.9 | ) | (70.0 | ) | (32.9 | ) | |||||
Costs Related to Early Retirement of Debt | — | (13.2 | ) | — | |||||||
Long-term Care Reserve Increase | — | (698.2 | ) | — | |||||||
Unclaimed Death Benefits Reserve Increase | — | — | (95.5 | ) | |||||||
Group Life Waiver of Premium Benefit Reserve Reduction | — | — | 85.0 | ||||||||
Income Before Income Tax | $ | 1,238.3 | $ | 542.0 | $ | 1,220.0 |
Year Ended December 31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||
(in millions) | per share * | (in millions) | per share * | (in millions) | per share * | ||||||||||||||||||
After-tax Operating Income | $ | 901.0 | $ | 3.64 | $ | 899.1 | $ | 3.51 | $ | 871.4 | $ | 3.28 | |||||||||||
Net Realized Investment Gain (Loss), Net of Tax | (26.1 | ) | (0.11 | ) | 12.8 | 0.05 | 3.9 | 0.02 | |||||||||||||||
Non-operating Retirement-related Loss, Net of Tax | (7.8 | ) | (0.03 | ) | (45.6 | ) | (0.18 | ) | (21.4 | ) | (0.08 | ) | |||||||||||
Costs Related to Early Retirement of Debt, Net of Tax | — | — | (10.4 | ) | (0.04 | ) | — | — | |||||||||||||||
Long-term Care Reserve Increase, Net of Tax | — | — | (453.8 | ) | (1.77 | ) | — | — | |||||||||||||||
Unclaimed Death Benefits Reserve Increase, Net of Tax | — | — | — | — | (62.1 | ) | (0.24 | ) | |||||||||||||||
Group Life Waiver of Premium Benefit Reserve Reduction, Net of Tax | — | — | — | — | 55.2 | 0.21 | |||||||||||||||||
Net Income | $ | 867.1 | $ | 3.50 | $ | 402.1 | $ | 1.57 | $ | 847.0 | $ | 3.19 | |||||||||||
* Assuming Dilution |
• | Persistency assumptions are based on our actual historical experience adjusted for future expectations. |
• | Claim incidence and claim resolution rate assumptions related to mortality and morbidity are based on actual experience or industry standards adjusted as appropriate to reflect our actual experience and future expectations. |
• | Discount rate assumptions are based on our current and expected net investment returns. |
(in millions of dollars) | December 31, 2015 | ||||||||||||||||||||||||||||
Gross | Total Reinsurance Ceded | ||||||||||||||||||||||||||||
Policy Reserves | Claim Reserves | Total Net | |||||||||||||||||||||||||||
% | Incurred | IBNR | % | Total | |||||||||||||||||||||||||
Group Disability | $ | — | — | % | $ | 6,347.0 | $ | 597.2 | 29.2 | % | $ | 6,944.2 | $ | 66.3 | $ | 6,877.9 | |||||||||||||
Group Life and Accidental Death & Dismemberment | 68.3 | 0.4 | 725.9 | 186.8 | 3.8 | 981.0 | 4.8 | 976.2 | |||||||||||||||||||||
Individual Disability | 552.9 | 3.1 | 1,238.2 | 130.8 | 5.8 | 1,921.9 | 109.9 | 1,812.0 | |||||||||||||||||||||
Voluntary Benefits | 1,434.4 | 8.1 | 48.9 | 48.5 | 0.4 | 1,531.8 | 28.6 | 1,503.2 | |||||||||||||||||||||
Unum US Segment | 2,055.6 | 11.6 | 8,360.0 | 963.3 | 39.2 | 11,378.9 | 209.6 | 11,169.3 | |||||||||||||||||||||
Unum UK Segment | 21.0 | 0.1 | 2,053.6 | 135.0 | 9.2 | 2,209.6 | 101.2 | 2,108.4 | |||||||||||||||||||||
Colonial Life Segment | 1,760.0 | 10.0 | 276.5 | 132.2 | 1.7 | 2,168.7 | 8.1 | 2,160.6 | |||||||||||||||||||||
Individual Disability | 620.0 | 3.5 | 9,922.8 | 259.2 | 42.8 | 10,802.0 | 1,568.5 | 9,233.5 | |||||||||||||||||||||
Long-term Care | 7,383.3 | 41.9 | 1,225.4 | 123.4 | 5.7 | 8,732.1 | 42.5 | 8,689.6 | |||||||||||||||||||||
Other | 5,810.8 | 32.9 | 204.2 | 140.5 | 1.4 | 6,155.5 | 4,991.0 | 1,164.5 | |||||||||||||||||||||
Closed Block Segment | 13,814.1 | 78.3 | 11,352.4 | 523.1 | 49.9 | 25,689.6 | 6,602.0 | 19,087.6 | |||||||||||||||||||||
Subtotal | $ | 17,650.7 | 100.0 | % | $ | 22,042.5 | $ | 1,753.6 | 100.0 | % | 41,446.8 | 6,920.9 | 34,525.9 | ||||||||||||||||
Adjustment Related to Unrealized Investment Gains and Losses | 3,578.4 | 263.2 | 3,315.2 | ||||||||||||||||||||||||||
Consolidated | $ | 45,025.2 | $ | 7,184.1 | $ | 37,841.1 |
December 31, 2014 | |||||||||||||||||||||||||||||
Gross | Total Reinsurance Ceded | ||||||||||||||||||||||||||||
Policy Reserves | Claim Reserves | Total Net | |||||||||||||||||||||||||||
% | Incurred | IBNR | % | Total | |||||||||||||||||||||||||
Group Disability | $ | — | — | % | $ | 6,558.4 | $ | 581.1 | 29.5 | % | $ | 7,139.5 | $ | 66.9 | $ | 7,072.6 | |||||||||||||
Group Life and Accidental Death & Dismemberment | 68.8 | 0.4 | 712.6 | 195.4 | 3.7 | 976.8 | 3.9 | 972.9 | |||||||||||||||||||||
Individual Disability | 555.6 | 3.2 | 1,201.5 | 127.3 | 5.5 | 1,884.4 | 112.5 | 1,771.9 | |||||||||||||||||||||
Voluntary Benefits | 1,366.4 | 8.0 | 52.3 | 58.4 | 0.5 | 1,477.1 | 29.1 | 1,448.0 | |||||||||||||||||||||
Unum US Segment | 1,990.8 | 11.6 | 8,524.8 | 962.2 | 39.2 | 11,477.8 | 212.4 | 11,265.4 | |||||||||||||||||||||
Unum UK Segment | 22.8 | 0.1 | 2,168.2 | 145.2 | 9.6 | 2,336.2 | 112.3 | 2,223.9 | |||||||||||||||||||||
Colonial Life Segment | 1,670.4 | 9.8 | 279.4 | 127.3 | 1.7 | 2,077.1 | 9.9 | 2,067.2 | |||||||||||||||||||||
Individual Disability | 735.0 | 4.3 | 10,150.9 | 285.6 | 43.1 | 11,171.5 | 1,551.7 | 9,619.8 | |||||||||||||||||||||
Long-term Care | 6,884.2 | 40.2 | 1,083.3 | 111.9 | 4.9 | 8,079.4 | 42.5 | 8,036.9 | |||||||||||||||||||||
Other | 5,811.4 | 34.0 | 214.3 | 140.7 | 1.5 | 6,166.4 | 4,959.8 | 1,206.6 | |||||||||||||||||||||
Closed Block Segment | 13,430.6 | 78.5 | 11,448.5 | 538.2 | 49.5 | 25,417.3 | 6,554.0 | 18,863.3 | |||||||||||||||||||||
Subtotal | $ | 17,114.6 | 100.0 | % | $ | 22,420.9 | $ | 1,772.9 | 100.0 | % | 41,308.4 | 6,888.6 | 34,419.8 | ||||||||||||||||
Adjustment Related to Unrealized Investment Gains and Losses | 6,150.3 | 365.0 | 5,785.3 | ||||||||||||||||||||||||||
Consolidated | $ | 47,458.7 | $ | 7,253.6 | $ | 40,205.1 |
1. | The discount rate, which is used in calculating both policy reserves and incurred and IBNR claim reserves, is the interest rate that we use to discount future claim payments to determine the present value. A higher discount rate produces a lower reserve. If the discount rate is higher than our future investment returns, our invested assets will not earn enough investment income to support our future claim payments. In this case, the reserves may eventually be insufficient. We set our assumptions based on our current and expected future investment yield of the assets supporting the reserves, considering current and expected future market conditions. If the investment yield on new investments that are purchased is below or above the investment yield of the existing investment portfolio, it is likely that the discount rate assumption on claims will be established to reflect the effect of the new investment yield. |
2. | The claim resolution rate, used for both policy reserves and incurred and IBNR claim reserves, is the probability that a disability or long-term care claim will close due to recovery or death of the insured. It is important because it is used to estimate how long benefits will be paid for a claim. Estimated resolution rates that are set too high will result in reserves that are lower than they need to be to pay the claim benefits over time. Claim resolution assumptions involve many factors, including the cause of disability, the policyholder's age, the type of contractual benefits provided, and the time since initially becoming disabled. We primarily use our own claim experience to develop our claim resolution assumptions. These assumptions are established for the probability of death and the probability of recovery from disability. Our studies review actual claim resolution experience over a number of years, with more weight placed on our experience in the more recent years. We also consider any expected future changes in claim resolution experience. |
3. | The incidence rate, used for policy reserves and IBNR claim reserves, is the rate at which new claims are submitted to us. The incidence rate is affected by many factors, including the age of the insured, the insured's occupation or industry, the benefit plan design, and certain external factors such as consumer confidence and levels of unemployment. We establish our incidence assumption using a historical review of actual incidence results along with an outlook of future incidence expectations. |
Potential impact, positive or negative, of variations in reserve assumptions on our December 31, 2015 claim reserve balance (in millions of dollars) | ||
Unum US group long-term disability | 3.3% | $220 |
Closed Block individual disability | 2.4% | $224 |
Balance Remaining as a % | DAC Balances | ||||||||||||||
Amortization | of Initial Deferral | at December 31 | |||||||||||||
Period | Year 3 | Year 10 | Year 15 | 2015 | 2014 | ||||||||||
Unum US | (in millions of dollars) | ||||||||||||||
Group Disability | 6 | 27% | 0% | 0% | $ | 79.3 | $ | 69.8 | |||||||
Group Life and Accidental Death & Dismemberment | 6 | 29% | 0% | 0% | 66.9 | 59.8 | |||||||||
Supplemental and Voluntary: | |||||||||||||||
Individual Disability | 20 | 71% | 43% | 21% | 421.4 | 423.6 | |||||||||
Voluntary Benefits | 20 | 57% | 24% | 10% | 568.8 | 543.3 | |||||||||
Unum UK | |||||||||||||||
Group Long-term Disability | 3 | 0% | 0% | 0% | 4.7 | 5.1 | |||||||||
Group Life | 3 | 0% | 0% | 0% | 1.3 | 1.3 | |||||||||
Supplemental | 20 | 55% | 13% | 2% | 21.1 | 24.0 | |||||||||
Colonial Life | |||||||||||||||
Accident, Sickness, and Disability | 15 | 45% | 12% | 1% | 415.1 | 378.2 | |||||||||
Life | 25 | 69% | 31% | 14% | 238.8 | 215.2 | |||||||||
Cancer and Critical Illness | 19 | 58% | 25% | 10% | 191.1 | 181.0 | |||||||||
Totals | $ | 2,008.5 | $ | 1,901.3 |
• | Risk-free interest rates of 1.76 percent for five-year maturities to 3.02 percent for 30-year maturities were derived from the December 31, 2015 yield curve for U.S. Treasury Bonds with similar maturities. This compares to interest rates of 1.65 percent for five-year maturities to 2.75 percent for 30-year maturities used at December 31, 2014. |
• | Baa corporate bond spread adjustments ranging from 1.60 percent to 3.30 percent were added to the risk-free rate to reflect additional credit risk and the lack of liquidity. We used spread adjustments ranging from 1.21 percent to 2.54 percent at December 31, 2014. The changes were based on observable market spreads. Newly issued private placement securities have historically offered yield premiums higher than a similar interest rate spread on comparable newly issued public securities. |
• | Additional basis points were added as deemed appropriate for foreign investments, certain industries, and individual securities in certain industries that are considered to be of greater risk. |
• | Whether we expect to recover the entire amortized cost basis of the security |
• | Whether we intend to sell the security or will be required to sell the security before the recovery of its amortized cost basis |
• | Whether the security is current as to principal and interest payments |
• | The significance of the decline in value |
• | The time period during which there has been a significant decline in value |
• | Current and future business prospects and trends of earnings |
• | The valuation of the security’s underlying collateral |
• | Relevant industry conditions and trends relative to their historical cycles |
• | Market conditions |
• | Rating agency and governmental actions |
• | Bid and offering prices and the level of trading activity |
• | Adverse changes in estimated cash flows for securitized investments |
• | Changes in fair value subsequent to the balance sheet date |
• | Any other key measures for the related security |
• | The assessment of a borrower's ability to meet its contractual obligations will change. |
• | The economic outlook, either domestic or foreign, may be less favorable or may have a more significant impact on the borrower than anticipated, and as such, the investment may not recover in value. |
• | New information may become available concerning the security, such as disclosure of accounting irregularities, fraud, or corporate governance issues. |
• | Significant changes in credit spreads may occur in the related industry. |
• | Significant increases in interest rates may occur and may not return to levels similar to when securities were initially purchased. |
• | Adverse rating agency actions may occur. |
• | Discount rate - This interest assumption is based on the yield derived from a portfolio of high quality fixed income corporate debt instruments that reasonably match the timing and amounts of projected future benefits for each of our retirement-related benefit plans. The rate is determined at the measurement date. A lower discount rate increases the present value of benefit obligations and increases our net periodic benefit cost. |
• | Long-term rate of return - This assumption is selected from a range of probable return outcomes generated by statistical analysis of the asset portfolio. The market-related value as it relates to our estimate of long-term rate of return equals the fair value of plan assets, determined as of the measurement date. The return on plan assets recognizes all asset gains and losses, including changes in fair value, through the measurement date. Our expectations for the future investment returns of the asset categories are based on a combination of historical market performance, evaluations of investment forecasts obtained from external consultants and economists, and current market yields. The expected return for the total portfolio is calculated based on the plan's current asset holdings. The actual rate of return on plan assets is determined based on the fair value of the plan assets at the beginning and the end of the period, adjusted for contributions and benefit payments. A lower long-term rate of return on plan assets increases our net periodic benefit cost. |
• | Mortality rate - This assumption reflects our best estimate, as of the measurement date, of the life expectancies of plan participants in order to determine the expected length of time for benefit payments. We derive our assumptions from industry mortality tables. |
Pension Benefits | ||||||||||||||||||
U.S. Plans | U.K. Plan | OPEB | ||||||||||||||||
Assumption | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Discount Rate | 4.80 | % | 4.40 | % | 3.80 | % | 3.60 | % | 4.70 | % | 4.30 | % | ||||||
Expected Long-term Rate of Return on Plan Assets | 7.50 | % | 7.50 | % | 4.90 | % | 5.20 | % | 5.75 | % | 5.75 | % |
($ in millions) | At or for the Year Ended December 31, 2015 | |||||||||||||
Assumption | Change | Net Periodic Benefit Cost, Before Tax | Benefit Obligation | Stockholders' Equity, After Tax | ||||||||||
Discount Rate | + 50 bp | $ | (1.6 | ) | $ | (163.3 | ) | $ | 109.4 | |||||
Discount Rate | - 50 bp | 1.7 | 182.4 | (122.2 | ) | |||||||||
Expected Long-term Rate of Return on Plan Assets | + 50 bp | (8.6 | ) | N/A | N/A | |||||||||
Expected Long-term Rate of Return on Plan Assets | - 50 bp | 8.6 | N/A | N/A |
(in millions of dollars) | |||||||||||||||||
Year Ended December 31 | |||||||||||||||||
2015 | % Change | 2014 | % Change | 2013 | |||||||||||||
Revenue | |||||||||||||||||
Premium Income | $ | 8,082.4 | 3.7 | % | $ | 7,797.2 | 2.3 | % | $ | 7,624.7 | |||||||
Net Investment Income | 2,481.2 | (0.4 | ) | 2,492.2 | (0.6 | ) | 2,506.9 | ||||||||||
Net Realized Investment Gain (Loss) | (43.8 | ) | N.M. | 16.1 | 136.8 | 6.8 | |||||||||||
Other Income | 211.5 | (3.4 | ) | 219.0 | (4.9 | ) | 230.2 | ||||||||||
Total Revenue | 10,731.3 | 2.0 | 10,524.5 | 1.5 | 10,368.6 | ||||||||||||
Benefits and Expenses | |||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 6,782.8 | (7.2 | ) | 7,310.8 | 10.8 | 6,595.7 | |||||||||||
Commissions | 996.3 | 6.5 | 935.3 | 2.8 | 909.5 | ||||||||||||
Interest and Debt Expense | 152.8 | (8.8 | ) | 167.5 | 12.1 | 149.4 | |||||||||||
Deferral of Acquisition Costs | (569.7 | ) | 8.7 | (524.0 | ) | 12.3 | (466.8 | ) | |||||||||
Amortization of Deferred Acquisition Costs | 482.3 | 9.4 | 440.8 | 5.2 | 418.9 | ||||||||||||
Compensation Expense | 835.1 | 1.7 | 820.9 | 3.9 | 790.4 | ||||||||||||
Other Expenses | 813.4 | (2.1 | ) | 831.2 | 10.6 | 751.5 | |||||||||||
Total Benefits and Expenses | 9,493.0 | (4.9 | ) | 9,982.5 | 9.1 | 9,148.6 | |||||||||||
Income Before Income Tax | 1,238.3 | 128.5 | 542.0 | (55.6 | ) | 1,220.0 | |||||||||||
Income Tax | 371.2 | 165.3 | 139.9 | (62.5 | ) | 373.0 | |||||||||||
Net Income | $ | 867.1 | 115.6 | $ | 402.1 | (52.5 | ) | $ | 847.0 | ||||||||
N.M. = not a meaningful percentage |
(in millions) | |||||||||||||||||
Year Ended December 31 | |||||||||||||||||
2015 | % Change | 2014 | % Change | 2013 | |||||||||||||
Unum US | $ | 939.6 | 4.2 | % | $ | 902.1 | 21.0 | % | $ | 745.6 | |||||||
Unum UK | £ | 55.1 | 6.2 | % | £ | 51.9 | 7.2 | % | £ | 48.4 | |||||||
Colonial Life | $ | 438.5 | 6.9 | % | $ | 410.1 | 11.6 | % | $ | 367.6 |
(in millions of dollars, except ratios) | |||||||||||||||||
Year Ended December 31 | |||||||||||||||||
2015 | % Change | 2014 | % Change | 2013 | |||||||||||||
Operating Revenue | |||||||||||||||||
Premium Income | $ | 4,960.0 | 6.4 | % | $ | 4,659.7 | 3.2 | % | $ | 4,517.1 | |||||||
Net Investment Income | 865.3 | (1.5 | ) | 878.9 | (4.4 | ) | 919.4 | ||||||||||
Other Income | 119.2 | (2.4 | ) | 122.1 | (4.8 | ) | 128.3 | ||||||||||
Total | 5,944.5 | 5.0 | 5,660.7 | 1.7 | 5,564.8 | ||||||||||||
Benefits and Expenses | |||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 3,476.7 | 5.7 | 3,288.1 | 2.0 | 3,222.4 | ||||||||||||
Commissions | 562.2 | 6.3 | 528.7 | 4.7 | 505.2 | ||||||||||||
Deferral of Acquisition Costs | (307.3 | ) | 5.0 | (292.7 | ) | 16.2 | (252.0 | ) | |||||||||
Amortization of Deferred Acquisition Costs | 272.3 | 9.8 | 248.1 | 7.9 | 230.0 | ||||||||||||
Other Expenses | 1,090.6 | 4.5 | 1,043.6 | 4.3 | 1,000.8 | ||||||||||||
Total | 5,094.5 | 5.8 | 4,815.8 | 2.3 | 4,706.4 | ||||||||||||
Income Before Income Tax and Net Realized Investment Gains and Losses | 850.0 | 0.6 | 844.9 | (1.6 | ) | 858.4 | |||||||||||
Unclaimed Death Benefits (UDB) Reserve Increase | — | — | — | — | 75.4 | ||||||||||||
Group Life Waiver of Premium Benefit (Waiver) Reserve Reduction | — | — | — | — | (85.0 | ) | |||||||||||
Operating Income | $ | 850.0 | 0.6 | $ | 844.9 | (0.5 | ) | $ | 848.8 | ||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||
Benefit Ratio | 70.1 | % | 70.6 | % | 71.3 | % | |||||||||||
Benefit Ratio Excluding the UDB and Waiver Reserve Adjustments | 71.6 | % | |||||||||||||||
Other Expense Ratio | 22.0 | % | 22.4 | % | 22.2 | % | |||||||||||
Income Ratio | 17.1 | % | 18.1 | % | 19.0 | % | |||||||||||
Operating Income Ratio | 17.1 | % | 18.1 | % | 18.8 | % |
(in millions of dollars, except ratios) | |||||||||||||||||
Year Ended December 31 | |||||||||||||||||
2015 | % Change | 2014 | % Change | 2013 | |||||||||||||
Operating Revenue | |||||||||||||||||
Premium Income | |||||||||||||||||
Group Long-term Disability | $ | 1,644.7 | 5.9 | % | $ | 1,553.5 | — | % | $ | 1,553.9 | |||||||
Group Short-term Disability | 607.4 | 8.8 | 558.1 | 7.4 | 519.6 | ||||||||||||
Total Premium Income | 2,252.1 | 6.7 | 2,111.6 | 1.8 | 2,073.5 | ||||||||||||
Net Investment Income | 496.5 | (3.8 | ) | 515.9 | (5.8 | ) | 547.4 | ||||||||||
Other Income | 92.9 | 2.1 | 91.0 | (4.8 | ) | 95.6 | |||||||||||
Total | 2,841.5 | 4.5 | 2,718.5 | 0.1 | 2,716.5 | ||||||||||||
Benefits and Expenses | |||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 1,834.0 | 5.0 | 1,746.4 | 0.8 | 1,732.9 | ||||||||||||
Commissions | 172.2 | 6.8 | 161.2 | (1.7 | ) | 164.0 | |||||||||||
Deferral of Acquisition Costs | (43.2 | ) | 7.5 | (40.2 | ) | 35.8 | (29.6 | ) | |||||||||
Amortization of Deferred Acquisition Costs | 33.7 | 28.1 | 26.3 | 24.6 | 21.1 | ||||||||||||
Other Expenses | 572.4 | 4.1 | 550.0 | 3.3 | 532.4 | ||||||||||||
Total | 2,569.1 | 5.1 | 2,443.7 | 0.9 | 2,420.8 | ||||||||||||
Operating Income | $ | 272.4 | (0.9 | ) | $ | 274.8 | (7.1 | ) | $ | 295.7 | |||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||
Benefit Ratio | 81.4 | % | 82.7 | % | 83.6 | % | |||||||||||
Other Expense Ratio | 25.4 | % | 26.0 | % | 25.7 | % | |||||||||||
Operating Income Ratio | 12.1 | % | 13.0 | % | 14.3 | % | |||||||||||
Persistency: | |||||||||||||||||
Group Long-term Disability | 92.1 | % | 90.6 | % | 87.2 | % | |||||||||||
Group Short-term Disability | 88.1 | % | 89.6 | % | 88.0 | % |
(in millions of dollars, except ratios) | |||||||||||||||||
Year Ended December 31 | |||||||||||||||||
2015 | % Change | 2014 | % Change | 2013 | |||||||||||||
Operating Revenue | |||||||||||||||||
Premium Income | |||||||||||||||||
Group Life | $ | 1,347.4 | 6.7 | % | $ | 1,262.3 | 4.0 | % | $ | 1,213.9 | |||||||
Accidental Death & Dismemberment | 131.7 | 4.6 | 125.9 | 3.5 | 121.6 | ||||||||||||
Total Premium Income | 1,479.1 | 6.5 | 1,388.2 | 3.9 | 1,335.5 | ||||||||||||
Net Investment Income | 135.1 | (0.1 | ) | 135.2 | (2.8 | ) | 139.1 | ||||||||||
Other Income | 2.1 | 50.0 | 1.4 | (22.2 | ) | 1.8 | |||||||||||
Total | 1,616.3 | 6.0 | 1,524.8 | 3.3 | 1,476.4 | ||||||||||||
Benefits and Expenses | |||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 1,061.6 | 8.8 | 975.8 | 7.2 | 909.9 | ||||||||||||
Commissions | 121.2 | 7.0 | 113.3 | 4.0 | 108.9 | ||||||||||||
Deferral of Acquisition Costs | (33.3 | ) | 6.4 | (31.3 | ) | 26.7 | (24.7 | ) | |||||||||
Amortization of Deferred Acquisition Costs | 26.2 | 22.4 | 21.4 | 37.2 | 15.6 | ||||||||||||
Other Expenses | 215.7 | 5.1 | 205.2 | 3.5 | 198.2 | ||||||||||||
Total | 1,391.4 | 8.3 | 1,284.4 | 6.3 | 1,207.9 | ||||||||||||
Income Before Income Tax and Net Realized Investment Gains and Losses | 224.9 | (6.4 | ) | 240.4 | (10.5 | ) | 268.5 | ||||||||||
Unclaimed Death Benefits (UDB) Reserve Increase | — | — | — | — | 49.1 | ||||||||||||
Group Life Waiver of Premium Benefit (Waiver) Reserve Reduction | — | — | — | — | (85.0 | ) | |||||||||||
Operating Income | $ | 224.9 | (6.4 | ) | $ | 240.4 | 3.4 | $ | 232.6 | ||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||
Benefit Ratio | 71.8 | % | 70.3 | % | 68.1 | % | |||||||||||
Benefit Ratio Excluding the UDB and Waiver Reserve Adjustments | 70.8 | % | |||||||||||||||
Other Expense Ratio | 14.6 | % | 14.8 | % | 14.8 | % | |||||||||||
Income Ratio | 15.2 | % | 17.3 | % | 20.1 | % | |||||||||||
Operating Income Ratio | 15.2 | % | 17.3 | % | 17.4 | % | |||||||||||
Persistency: | |||||||||||||||||
Group Life | 89.2 | % | 90.8 | % | 88.1 | % | |||||||||||
Accidental Death & Dismemberment | 89.8 | % | 91.1 | % | 88.8 | % |
(in millions of dollars, except ratios) | |||||||||||||||||
Year Ended December 31 | |||||||||||||||||
2015 | % Change | 2014 | % Change | 2013 | |||||||||||||
Operating Revenue | |||||||||||||||||
Premium Income | |||||||||||||||||
Individual Disability | $ | 478.9 | 2.7 | % | $ | 466.1 | 0.2 | % | $ | 465.3 | |||||||
Voluntary Benefits | 749.9 | 8.1 | 693.8 | 7.9 | 642.8 | ||||||||||||
Total Premium Income | 1,228.8 | 5.9 | 1,159.9 | 4.7 | 1,108.1 | ||||||||||||
Net Investment Income | 233.7 | 2.6 | 227.8 | (2.2 | ) | 232.9 | |||||||||||
Other Income | 24.2 | (18.5 | ) | 29.7 | (3.9 | ) | 30.9 | ||||||||||
Total | 1,486.7 | 4.9 | 1,417.4 | 3.3 | 1,371.9 | ||||||||||||
Benefits and Expenses | |||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 581.1 | 2.7 | 565.9 | (2.4 | ) | 579.6 | |||||||||||
Commissions | 268.8 | 5.7 | 254.2 | 9.4 | 232.3 | ||||||||||||
Deferral of Acquisition Costs | (230.8 | ) | 4.3 | (221.2 | ) | 11.9 | (197.7 | ) | |||||||||
Amortization of Deferred Acquisition Costs | 212.4 | 6.0 | 200.4 | 3.7 | 193.3 | ||||||||||||
Other Expenses | 302.5 | 4.9 | 288.4 | 6.7 | 270.2 | ||||||||||||
Total | 1,134.0 | 4.3 | 1,087.7 | 0.9 | 1,077.7 | ||||||||||||
Income Before Income Tax and Net Realized Investment Gains and Losses | 352.7 | 7.0 | 329.7 | 12.1 | 294.2 | ||||||||||||
Unclaimed Death Benefits (UDB) Reserve Increase | — | — | — | — | 26.3 | ||||||||||||
Operating Income | $ | 352.7 | 7.0 | $ | 329.7 | 2.9 | $ | 320.5 | |||||||||
Interest Adjusted Loss Ratio: | |||||||||||||||||
Individual Disability | 30.9 | % | 30.0 | % | 29.6 | % | |||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||
Benefit Ratios: | |||||||||||||||||
Individual Disability | 51.8 | % | 51.6 | % | 51.3 | % | |||||||||||
Voluntary Benefits | 44.4 | % | 46.9 | % | 53.0 | % | |||||||||||
Benefit Ratio Excluding the UDB Reserve Increase | |||||||||||||||||
Voluntary Benefits | 48.9 | % | |||||||||||||||
Other Expense Ratio | 24.6 | % | 24.9 | % | 24.4 | % | |||||||||||
Income Ratio | 28.7 | % | 28.4 | % | 26.5 | % | |||||||||||
Operating Income Ratio | 28.7 | % | 28.4 | % | 28.9 | % | |||||||||||
Persistency: | |||||||||||||||||
Individual Disability | 90.3 | % | 90.0 | % | 90.5 | % | |||||||||||
Voluntary Benefits | 75.9 | % | 77.6 | % | 77.0 | % |
(in millions of dollars) | |||||||||||||||||
Year Ended December 31 | |||||||||||||||||
2015 | % Change | 2014 | % Change | 2013 | |||||||||||||
Sales by Product | |||||||||||||||||
Group Disability and Group Life and AD&D | |||||||||||||||||
Group Long-term Disability | $ | 239.7 | 7.2 | % | $ | 223.6 | 29.0 | % | $ | 173.3 | |||||||
Group Short-term Disability | 119.7 | 0.8 | 118.8 | 16.6 | 101.9 | ||||||||||||
Group Life and AD&D | 250.1 | (5.6 | ) | 264.8 | 32.8 | 199.4 | |||||||||||
Subtotal | 609.5 | 0.4 | 607.2 | 27.9 | 474.6 | ||||||||||||
Supplemental and Voluntary | |||||||||||||||||
Individual Disability | 67.5 | 18.8 | 56.8 | 8.8 | 52.2 | ||||||||||||
Voluntary Benefits | 262.6 | 10.3 | 238.1 | 8.8 | 218.8 | ||||||||||||
Subtotal | 330.1 | 11.9 | 294.9 | 8.8 | 271.0 | ||||||||||||
Total Sales | $ | 939.6 | 4.2 | $ | 902.1 | 21.0 | $ | 745.6 | |||||||||
Sales by Market Sector | |||||||||||||||||
Group Disability and Group Life and AD&D | |||||||||||||||||
Core Market (< 2,000 lives) | $ | 405.4 | 0.9 | % | $ | 401.7 | 23.8 | % | $ | 324.4 | |||||||
Large Case Market | 204.1 | (0.7 | ) | 205.5 | 36.8 | 150.2 | |||||||||||
Subtotal | 609.5 | 0.4 | 607.2 | 27.9 | 474.6 | ||||||||||||
Supplemental and Voluntary | 330.1 | 11.9 | 294.9 | 8.8 | 271.0 | ||||||||||||
Total Sales | $ | 939.6 | 4.2 | $ | 902.1 | 21.0 | $ | 745.6 |
(in millions of dollars, except ratios) | |||||||||||||||||
Year Ended December 31 | |||||||||||||||||
2015 | % Change | 2014 | % Change | 2013 | |||||||||||||
Operating Revenue | |||||||||||||||||
Premium Income | |||||||||||||||||
Group Long-term Disability | $ | 397.4 | (5.1 | )% | $ | 418.9 | 7.4 | % | $ | 389.9 | |||||||
Group Life | 121.5 | (8.8 | ) | 133.2 | 25.2 | 106.4 | |||||||||||
Supplemental | 57.3 | 4.0 | 55.1 | (8.6 | ) | 60.3 | |||||||||||
Total Premium Income | 576.2 | (5.1 | ) | 607.2 | 9.1 | 556.6 | |||||||||||
Net Investment Income | 124.9 | (17.3 | ) | 151.0 | 1.7 | 148.5 | |||||||||||
Other Income | — | — | — | (100.0 | ) | 0.1 | |||||||||||
Total | 701.1 | (7.5 | ) | 758.2 | 7.5 | 705.2 | |||||||||||
Benefits and Expenses | |||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 394.8 | (8.4 | ) | 431.0 | 4.3 | 413.3 | |||||||||||
Commissions | 41.8 | (2.3 | ) | 42.8 | 12.6 | 38.0 | |||||||||||
Deferral of Acquisition Costs | (9.6 | ) | (8.6 | ) | (10.5 | ) | 7.1 | (9.8 | ) | ||||||||
Amortization of Deferred Acquisition Costs | 11.3 | (9.6 | ) | 12.5 | (15.0 | ) | 14.7 | ||||||||||
Other Expenses | 122.2 | (9.2 | ) | 134.6 | 15.0 | 117.0 | |||||||||||
Total | 560.5 | (8.2 | ) | 610.4 | 6.5 | 573.2 | |||||||||||
Operating Income | $ | 140.6 | (4.9 | ) | $ | 147.8 | 12.0 | $ | 132.0 |
(in millions of pounds, except ratios) | |||||||||||||||||
Year Ended December 31 | |||||||||||||||||
2015 | % Change | 2014 | % Change | 2013 | |||||||||||||
Operating Revenue | |||||||||||||||||
Premium Income | |||||||||||||||||
Group Long-term Disability | £ | 259.9 | 2.2 | % | £ | 254.4 | 2.1 | % | £ | 249.2 | |||||||
Group Life | 79.5 | (1.6 | ) | 80.8 | 18.5 | 68.2 | |||||||||||
Supplemental | 37.5 | 12.3 | 33.4 | (13.2 | ) | 38.5 | |||||||||||
Total Premium Income | 376.9 | 2.3 | 368.6 | 3.6 | 355.9 | ||||||||||||
Net Investment Income | 81.6 | (10.9 | ) | 91.6 | (3.5 | ) | 94.9 | ||||||||||
Other Income | — | — | 0.1 | — | 0.1 | ||||||||||||
Total | 458.5 | (0.4 | ) | 460.3 | 2.1 | 450.9 | |||||||||||
Benefits and Expenses | |||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 258.1 | (1.3 | ) | 261.4 | (1.2 | ) | 264.5 | ||||||||||
Commissions | 27.4 | 5.4 | 26.0 | 7.0 | 24.3 | ||||||||||||
Deferral of Acquisition Costs | (6.3 | ) | (1.6 | ) | (6.4 | ) | 3.2 | (6.2 | ) | ||||||||
Amortization of Deferred Acquisition Costs | 7.4 | (2.6 | ) | 7.6 | (18.3 | ) | 9.3 | ||||||||||
Other Expenses | 79.9 | (2.4 | ) | 81.9 | 9.6 | 74.7 | |||||||||||
Total | 366.5 | (1.1 | ) | 370.5 | 1.1 | 366.6 | |||||||||||
Operating Income | £ | 92.0 | 2.4 | £ | 89.8 | 6.5 | £ | 84.3 | |||||||||
Weighted Average Pound/Dollar Exchange Rate | 1.528 | 1.646 | 1.566 | ||||||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||
Benefit Ratio | 68.5 | % | 70.9 | % | 74.3 | % | |||||||||||
Other Expense Ratio | 21.2 | % | 22.2 | % | 21.0 | % | |||||||||||
Operating Income Ratio | 24.4 | % | 24.4 | % | 23.7 | % | |||||||||||
Persistency: | |||||||||||||||||
Group Long-term Disability | 89.2 | % | 90.1 | % | 82.2 | % | |||||||||||
Group Life | 80.0 | % | 76.0 | % | 66.7 | % | |||||||||||
Supplemental | 87.7 | % | 86.6 | % | 78.8 | % |
(in millions of dollars and pounds) | |||||||||||||||||
Year Ended December 31 | |||||||||||||||||
2015 | % Change | 2014 | % Change | 2013 | |||||||||||||
Sales by Product | |||||||||||||||||
Group Long-term Disability | $ | 53.4 | (7.0 | )% | $ | 57.4 | 13.7 | % | $ | 50.5 | |||||||
Group Life | 25.7 | 8.0 | 23.8 | 11.2 | 21.4 | ||||||||||||
Supplemental | 5.0 | 28.2 | 3.9 | — | 3.9 | ||||||||||||
Total Sales | $ | 84.1 | (1.2 | ) | $ | 85.1 | 12.3 | $ | 75.8 | ||||||||
Sales by Market Sector | |||||||||||||||||
Group Long-term Disability and Group Life | |||||||||||||||||
Core Market (< 500 lives) | $ | 44.3 | 4.2 | % | $ | 42.5 | 9.3 | % | $ | 38.9 | |||||||
Large Case Market | 34.8 | (10.1 | ) | 38.7 | 17.3 | 33.0 | |||||||||||
Subtotal | 79.1 | (2.6 | ) | 81.2 | 12.9 | 71.9 | |||||||||||
Supplemental | 5.0 | 28.2 | 3.9 | — | 3.9 | ||||||||||||
Total Sales | $ | 84.1 | (1.2 | ) | $ | 85.1 | 12.3 | $ | 75.8 | ||||||||
Sales by Product | |||||||||||||||||
Group Long-term Disability | £ | 35.0 | (0.3 | )% | £ | 35.1 | 9.0 | % | £ | 32.2 | |||||||
Group Life | 16.8 | 16.7 | 14.4 | 5.1 | 13.7 | ||||||||||||
Supplemental | 3.3 | 37.5 | 2.4 | (4.0 | ) | 2.5 | |||||||||||
Total Sales | £ | 55.1 | 6.2 | £ | 51.9 | 7.2 | £ | 48.4 | |||||||||
Sales by Market Sector | |||||||||||||||||
Group Long-term Disability and Group Life | |||||||||||||||||
Core Market (< 500 lives) | £ | 29.0 | 12.4 | % | £ | 25.8 | 3.6 | % | £ | 24.9 | |||||||
Large Case Market | 22.8 | (3.8 | ) | 23.7 | 12.9 | 21.0 | |||||||||||
Subtotal | 51.8 | 4.6 | 49.5 | 7.8 | 45.9 | ||||||||||||
Supplemental | 3.3 | 37.5 | 2.4 | (4.0 | ) | 2.5 | |||||||||||
Total Sales | £ | 55.1 | 6.2 | £ | 51.9 | 7.2 | £ | 48.4 |
(in millions of dollars, except ratios) | |||||||||||||||||
Year Ended December 31 | |||||||||||||||||
2015 | % Change | 2014 | % Change | 2013 | |||||||||||||
Operating Revenue | |||||||||||||||||
Premium Income | |||||||||||||||||
Accident, Sickness, and Disability | $ | 789.0 | 3.8 | % | $ | 759.8 | 2.9 | % | $ | 738.7 | |||||||
Life | 252.4 | 8.9 | 231.8 | 4.8 | 221.1 | ||||||||||||
Cancer and Critical Illness | 297.2 | 5.4 | 282.1 | 3.6 | 272.4 | ||||||||||||
Total Premium Income | 1,338.6 | 5.1 | 1,273.7 | 3.4 | 1,232.2 | ||||||||||||
Net Investment Income | 145.4 | (0.1 | ) | 145.5 | 1.0 | 144.1 | |||||||||||
Other Income | 0.1 | — | 0.1 | (50.0 | ) | 0.2 | |||||||||||
Total | 1,484.1 | 4.6 | 1,419.3 | 3.1 | 1,376.5 | ||||||||||||
Benefits and Expenses | |||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 683.0 | 3.4 | 660.6 | (1.0 | ) | 667.0 | |||||||||||
Commissions | 293.5 | 11.9 | 262.3 | 3.9 | 252.5 | ||||||||||||
Deferral of Acquisition Costs | (252.8 | ) | 14.5 | (220.8 | ) | 7.7 | (205.0 | ) | |||||||||
Amortization of Deferred Acquisition Costs | 198.7 | 10.3 | 180.2 | 3.4 | 174.2 | ||||||||||||
Other Expenses | 252.6 | 6.1 | 238.0 | 6.1 | 224.3 | ||||||||||||
Total | 1,175.0 | 4.9 | 1,120.3 | 0.7 | 1,113.0 | ||||||||||||
Income Before Income Tax and Net Realized Investment Gains and Losses | 309.1 | 3.4 | 299.0 | 13.5 | 263.5 | ||||||||||||
Unclaimed Death Benefits (UDB) Reserve Increase | — | — | — | — | 20.1 | ||||||||||||
Operating Income | $ | 309.1 | 3.4 | $ | 299.0 | 5.4 | $ | 283.6 | |||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||
Benefit Ratio | 51.0 | % | 51.9 | % | 54.1 | % | |||||||||||
Benefit Ratio Excluding the UDB Reserve Increase | 52.5 | % | |||||||||||||||
Other Expense Ratio | 18.9 | % | 18.7 | % | 18.2 | % | |||||||||||
Income Ratio | 23.1 | % | 23.5 | % | 21.4 | % | |||||||||||
Operating Income Ratio | 23.1 | % | 23.5 | % | 23.0 | % | |||||||||||
Persistency: | |||||||||||||||||
Accident, Sickness, and Disability | 74.8 | % | 75.5 | % | 75.2 | % | |||||||||||
Life | 84.9 | % | 85.2 | % | 85.2 | % | |||||||||||
Cancer and Critical Illness | 81.2 | % | 83.5 | % | 83.1 | % |
(in millions of dollars) | |||||||||||||||||
Year Ended December 31 | |||||||||||||||||
2015 | % Change | 2014 | % Change | 2013 | |||||||||||||
Sales by Product | |||||||||||||||||
Accident, Sickness, and Disability | $ | 276.1 | 5.9 | % | $ | 260.7 | 9.4 | % | $ | 238.2 | |||||||
Life | 85.6 | 8.6 | 78.8 | 15.7 | 68.1 | ||||||||||||
Cancer and Critical Illness | 76.8 | 8.8 | 70.6 | 15.2 | 61.3 | ||||||||||||
Total Sales | $ | 438.5 | 6.9 | $ | 410.1 | 11.6 | $ | 367.6 | |||||||||
Sales by Market Sector | |||||||||||||||||
Commercial | |||||||||||||||||
Core Market (< 1,000 lives) | $ | 290.8 | 5.5 | % | $ | 275.6 | 12.0 | % | $ | 246.0 | |||||||
Large Case Market | 54.2 | 1.9 | 53.2 | 8.6 | 49.0 | ||||||||||||
Subtotal | 345.0 | 4.9 | 328.8 | 11.5 | 295.0 | ||||||||||||
Public Sector | 93.5 | 15.0 | 81.3 | 12.0 | 72.6 | ||||||||||||
Total Sales | $ | 438.5 | 6.9 | $ | 410.1 | 11.6 | $ | 367.6 |
(in millions of dollars, except ratios) | |||||||||||||||||
Year Ended December 31 | |||||||||||||||||
2015 | % Change | 2014 | % Change | 2013 | |||||||||||||
Operating Revenue | |||||||||||||||||
Premium Income | |||||||||||||||||
Individual Disability | $ | 572.4 | (8.4 | )% | $ | 624.8 | (9.1 | )% | $ | 687.5 | |||||||
Long-term Care | 633.5 | 0.4 | 630.9 | — | 630.6 | ||||||||||||
All Other | 1.7 | 88.9 | 0.9 | 28.6 | 0.7 | ||||||||||||
Total Premium Income | 1,207.6 | (3.9 | ) | 1,256.6 | (4.7 | ) | 1,318.8 | ||||||||||
Net Investment Income | 1,320.0 | 3.0 | 1,281.5 | 0.9 | 1,270.2 | ||||||||||||
Other Income | 89.3 | (2.7 | ) | 91.8 | (2.2 | ) | 93.9 | ||||||||||
Total | 2,616.9 | (0.5 | ) | 2,629.9 | (2.0 | ) | 2,682.9 | ||||||||||
Benefits and Expenses | |||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 2,228.3 | (24.0 | ) | 2,931.1 | 27.8 | 2,293.0 | |||||||||||
Commissions | 98.8 | (2.7 | ) | 101.5 | (10.8 | ) | 113.8 | ||||||||||
Interest and Debt Expense | 6.6 | (9.6 | ) | 7.3 | (13.1 | ) | 8.4 | ||||||||||
Other Expenses | 164.1 | (2.4 | ) | 168.2 | 4.9 | 160.4 | |||||||||||
Total | 2,497.8 | (22.1 | ) | 3,208.1 | 24.6 | 2,575.6 | |||||||||||
Income (Loss) Before Income Tax and Net Realized Investment Gains and Losses | 119.1 | 120.6 | (578.2 | ) | (638.9 | ) | 107.3 | ||||||||||
Long-term Care Reserve Increase | — | — | 698.2 | — | — | ||||||||||||
Operating Income | $ | 119.1 | (0.8 | ) | $ | 120.0 | 11.8 | $ | 107.3 | ||||||||
Interest Adjusted Loss Ratios: | |||||||||||||||||
Individual Disability | 82.8 | % | 83.6 | % | 82.6 | % | |||||||||||
Long-term Care | 87.6 | % | 196.6 | % | 89.6 | % | |||||||||||
Long-term Care Excluding the Reserve Increase | 85.9 | % | |||||||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||
Other Expense Ratio | 13.6 | % | 13.4 | % | 12.2 | % | |||||||||||
Income (Loss) Ratio | 9.9 | % | (46.0 | )% | 8.1 | % | |||||||||||
Operating Income Ratio | 9.9 | % | 9.5 | % | 8.1 | % | |||||||||||
Persistency: | |||||||||||||||||
Individual Disability | 90.9 | % | 91.3 | % | 91.8 | % | |||||||||||
Long-term Care | 95.7 | % | 95.4 | % | 95.5 | % |
(in millions of dollars) | |||||||||||||||||
Year Ended December 31 | |||||||||||||||||
2015 | % Change | 2014 | % Change | 2013 | |||||||||||||
Operating Revenue | |||||||||||||||||
Net Investment Income | $ | 25.6 | (27.5 | )% | $ | 35.3 | 42.9 | % | $ | 24.7 | |||||||
Other Income | 2.9 | (42.0 | ) | 5.0 | (35.1 | ) | 7.7 | ||||||||||
Total | 28.5 | (29.3 | ) | 40.3 | 24.4 | 32.4 | |||||||||||
Interest and Other Expenses | 153.3 | (2.9 | ) | 157.9 | 7.1 | 147.5 | |||||||||||
Operating Loss Including Costs Related to Early Retirement of Debt | (124.8 | ) | (6.1 | ) | (117.6 | ) | (2.2 | ) | (115.1 | ) | |||||||
Costs Related to Early Retirement of Debt | — | — | 13.2 | — | — | ||||||||||||
Operating Loss | $ | (124.8 | ) | (19.5 | ) | $ | (104.4 | ) | 9.3 | $ | (115.1 | ) |
• | The majority of investments are in high quality publicly traded securities to ensure the desired liquidity and preserve the capital value of our portfolios. |
• | The long-term nature of our insurance liabilities also allows us to invest in less liquid investments to obtain superior returns. A maximum of 10 percent of the total investment portfolio may be invested in below-investment-grade securities, 2 percent in equity securities, 3 percent in tax credit partnerships, 35 percent in private placements, and 10 percent in commercial mortgage loans. The remaining assets can be held in publicly traded investment-grade corporate securities, mortgage/asset backed securities, bank loans, government and government agency securities, and municipal securities. |
• | We intend to manage the risk of losses due to changes in interest rates by matching asset duration with liabilities, in the aggregate. |
• | The weighted average credit quality rating of the portfolio should be Baa1 or higher. |
• | The maximum investment per issuer group is limited based on internal limits reviewed by the risk and finance committee of Unum Group's board of directors and approved by the boards of directors of our insurance subsidiaries and is more restrictive than the five percent limit generally allowed by the state insurance departments which regulate the type of investments our insurance subsidiaries are allowed to own. These internal limits are as follows: |
Rating | Internal Limit | ||||
($ in millions) | |||||
AAA/AA | $ | 200 | |||
A | 175 | ||||
BBB+ | 150 | ||||
BBB | 125 | ||||
BBB- | 90 | ||||
BB+ | 75 | ||||
BB | 60 | ||||
BB- | 50 | ||||
B+ | 30 | ||||
B/B- | 20 | ||||
CCC | 10 |
• | The portfolio is to be diversified across industry classification and geographic lines. |
• | Derivative instruments may be used to replicate permitted asset classes, hedge interest rate risk, credit risk, and foreign currency risk, and match liability duration and cash flows consistent with the plan reviewed by the risk and finance committee of Unum Group's board of directors and approved by the boards of directors of our insurance subsidiaries. |
• | Asset mix guidelines and limits are established by us, reviewed by the risk and finance committee of Unum Group's board of directors, and approved by the boards of directors of our insurance subsidiaries. |
• | The allocation of assets and the selection and timing of the acquisition and disposition of investments are subject to ratification, on a weekly basis, by an investment subcommittee appointed by the boards of directors of our insurance subsidiaries. These actions are also reviewed by the risk and finance committee of Unum Group's board of directors on a quarterly basis. |
• | We review these investment policies and guidelines annually, or more frequently if deemed necessary, and recommend adjustments, as appropriate. Any revisions or exceptions are reviewed by the risk and finance committee of Unum Group's board of directors and must be approved by the boards of directors of our insurance subsidiaries. |
(in millions of dollars) | ||||||||||||||||||||||||
Classification | Fair Value | Net Unrealized Gain(Loss) | Fair Value of Fixed Maturity Securities with Gross Unrealized Loss | Gross Unrealized Loss | Fair Value of Fixed Maturity Securities with Gross Unrealized Gain | Gross Unrealized Gain | ||||||||||||||||||
Basic Industry | $ | 2,401.0 | $ | 68.2 | $ | 849.8 | $ | 79.8 | $ | 1,551.2 | $ | 148.0 | ||||||||||||
Capital Goods | 3,977.7 | 370.7 | 616.2 | 27.7 | 3,361.5 | 398.4 | ||||||||||||||||||
Communications | 2,979.4 | 285.6 | 600.9 | 34.7 | 2,378.5 | 320.3 | ||||||||||||||||||
Consumer Cyclical | 1,480.7 | 108.1 | 341.6 | 14.1 | 1,139.1 | 122.2 | ||||||||||||||||||
Consumer Non-Cyclical | 6,037.1 | 566.0 | 1,026.3 | 41.1 | 5,010.8 | 607.1 | ||||||||||||||||||
Energy | 5,011.5 | (51.4 | ) | 1,994.3 | 372.6 | 3,017.2 | 321.2 | |||||||||||||||||
Financial Institutions | 3,299.4 | 284.8 | 373.7 | 6.4 | 2,925.7 | 291.2 | ||||||||||||||||||
Mortgage/Asset-Backed | 2,481.5 | 162.9 | 513.3 | 4.7 | 1,968.2 | 167.6 | ||||||||||||||||||
Sovereigns | 1,051.6 | 154.4 | — | — | 1,051.6 | 154.4 | ||||||||||||||||||
Technology | 1,325.9 | 38.5 | 578.8 | 18.5 | 747.1 | 57.0 | ||||||||||||||||||
Transportation | 1,705.9 | 178.6 | 338.5 | 13.9 | 1,367.4 | 192.5 | ||||||||||||||||||
U.S. Government Agencies and Municipalities | 3,582.3 | 488.2 | 329.1 | 12.5 | 3,253.2 | 500.7 | ||||||||||||||||||
Public Utilities | 8,020.4 | 1,041.1 | 418.7 | 16.3 | 7,601.7 | 1,057.4 | ||||||||||||||||||
Total | $ | 43,354.4 | $ | 3,695.7 | $ | 7,981.2 | $ | 642.3 | $ | 35,373.2 | $ | 4,338.0 |
(in millions of dollars) | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||||||
Fair Value < 100% >= 70% of Amortized Cost | |||||||||||||||||||
<= 90 days | $ | 73.2 | $ | 34.0 | $ | 103.9 | $ | 3.0 | $ | 23.2 | |||||||||
> 90 <= 180 days | 56.0 | 108.4 | 15.6 | 5.7 | 0.7 | ||||||||||||||
> 180 <= 270 days | 157.9 | 17.2 | 8.7 | — | 0.1 | ||||||||||||||
> 270 days <= 1 year | 24.9 | 15.5 | 0.1 | — | — | ||||||||||||||
> 1 year <= 2 years | 17.3 | 0.1 | 0.6 | 7.4 | 20.4 | ||||||||||||||
> 2 years <= 3 years | 9.7 | 10.2 | 11.9 | 1.3 | 2.2 | ||||||||||||||
> 3 years | 2.9 | 0.1 | 0.1 | 0.1 | 0.9 | ||||||||||||||
Sub-total | 341.9 | 185.5 | 140.9 | 17.5 | 47.5 | ||||||||||||||
Fair Value < 70% >= 40% of Amortized Cost | |||||||||||||||||||
> 90 <= 180 days | 3.8 | 9.0 | — | — | — | ||||||||||||||
> 180 <= 270 days | 11.1 | — | — | — | — | ||||||||||||||
> 1 year <= 2 years | 3.6 | — | — | — | — | ||||||||||||||
Sub-total | 18.5 | 9.0 | — | — | — | ||||||||||||||
Total | $ | 360.4 | $ | 194.5 | $ | 140.9 | $ | 17.5 | $ | 47.5 |
(in millions of dollars) | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||||||
Fair Value < 100% >= 70% of Amortized Cost | |||||||||||||||||||
<= 90 days | $ | 10.2 | $ | 36.4 | $ | 21.7 | $ | 2.5 | $ | 20.2 | |||||||||
> 90 <= 180 days | 50.8 | 58.7 | 1.2 | 29.1 | 31.4 | ||||||||||||||
> 180 <= 270 days | 51.1 | 3.7 | 15.9 | 15.5 | — | ||||||||||||||
> 270 days <= 1 year | 1.3 | 14.1 | 11.5 | — | — | ||||||||||||||
> 1 year <= 2 years | 34.5 | 21.8 | 1.6 | 9.1 | 12.8 | ||||||||||||||
> 2 years <= 3 years | 15.0 | 16.4 | 9.4 | 0.4 | 0.4 | ||||||||||||||
> 3 years | 5.3 | 8.6 | 5.9 | 3.2 | 5.7 | ||||||||||||||
Sub-total | 168.2 | 159.7 | 67.2 | 59.8 | 70.5 | ||||||||||||||
Fair Value < 70% >= 40% of Amortized Cost | |||||||||||||||||||
<= 90 days | — | — | — | — | 6.8 | ||||||||||||||
> 90 <= 180 days | 9.6 | 6.3 | — | 8.0 | — | ||||||||||||||
> 180 <= 270 days | 21.6 | — | — | 4.6 | — | ||||||||||||||
> 270 days <= 1 year | 4.1 | 20.8 | — | — | — | ||||||||||||||
> 1 year <= 2 years | 21.8 | 1.9 | — | — | — | ||||||||||||||
> 2 years <= 3 years | 7.6 | 8.9 | — | — | — | ||||||||||||||
> 3 years | 5.0 | 0.2 | — | — | — | ||||||||||||||
Sub-total | 69.7 | 38.1 | — | 12.6 | 6.8 | ||||||||||||||
Fair Value <= 40% of Amortized Cost | |||||||||||||||||||
> 180 <= 270 days | 20.4 | — | — | — | — | ||||||||||||||
> 270 days <= 1 year | — | — | 7.8 | — | — | ||||||||||||||
> 1 year <= 2 years | 10.3 | — | — | — | — | ||||||||||||||
> 2 years <= 3 years | 13.3 | — | — | — | — | ||||||||||||||
Sub-total | 44.0 | — | 7.8 | — | — | ||||||||||||||
Total | $ | 281.9 | $ | 197.8 | $ | 75.0 | $ | 72.4 | $ | 77.3 |
(in millions of dollars) | ||||||||||
Classification | Fair Value | Gross Unrealized Loss | Number of Issuers | |||||||
Investment-Grade | ||||||||||
Basic Industry | $ | 35.7 | $ | 11.8 | 1 | |||||
Energy | 267.0 | 59.2 | 5 | |||||||
Total | $ | 302.7 | $ | 71.0 | 6 | |||||
Below-Investment-Grade | ||||||||||
Energy | $ | 120.7 | $ | 86.7 | 6 |
(in millions of dollars) | ||||||||||||||||||||||||
Classification by Subsector | Fair Value | Net Unrealized Gain(Loss) | Fair Value of Fixed Maturity Securities with Gross Unrealized Loss | Gross Unrealized Loss | Fair Value of Fixed Maturity Securities with Gross Unrealized Gain | Gross Unrealized Gain | ||||||||||||||||||
Midstream | $ | 2,145.6 | $ | (49.5 | ) | $ | 982.4 | $ | 143.0 | $ | 1,163.2 | $ | 93.5 | |||||||||||
Oil and Gas-Independent | 1,494.3 | (94.1 | ) | 663.5 | 181.5 | 830.8 | 87.4 | |||||||||||||||||
Oilfield | 200.6 | (20.8 | ) | 133.9 | 30.1 | 66.7 | 9.3 | |||||||||||||||||
Oil-Integrated | 850.5 | 112.0 | 90.7 | 6.9 | 759.8 | 118.9 | ||||||||||||||||||
Oil-Refining | 272.0 | 2.5 | 75.3 | 9.6 | 196.7 | 12.1 | ||||||||||||||||||
Other Energy | 48.5 | (1.5 | ) | 48.5 | 1.5 | — | — | |||||||||||||||||
Total | $ | 5,011.5 | $ | (51.4 | ) | $ | 1,994.3 | $ | 372.6 | $ | 3,017.2 | $ | 321.2 |
(in millions of dollars) | |||||||||||||||||||
Total | In 1 Year or Less | After 1 Year up to 3 Years | After 3 Years up to 5 Years | After 5 Years | |||||||||||||||
Payments Due | |||||||||||||||||||
Short-term Debt | $ | 364.9 | $ | 364.9 | $ | — | $ | — | $ | — | |||||||||
Long-term Debt | 4,116.3 | 127.0 | 447.6 | 620.3 | 2,921.4 | ||||||||||||||
Policyholder Liabilities | 43,505.6 | 4,623.9 | 6,935.5 | 5,415.9 | 26,530.3 | ||||||||||||||
Pension and OPEB | 724.7 | 19.4 | 38.3 | 37.5 | 629.5 | ||||||||||||||
Payables for Collateral on Investments | 417.6 | 365.5 | 52.1 | — | — | ||||||||||||||
Miscellaneous Liabilities | 673.0 | 594.8 | 21.8 | 10.3 | 46.1 | ||||||||||||||
Operating Leases | 220.9 | 56.8 | 61.5 | 36.8 | 65.8 | ||||||||||||||
Purchase Obligations | 307.0 | 299.7 | 7.3 | — | — | ||||||||||||||
Total | $ | 50,330.0 | $ | 6,452.0 | $ | 7,564.1 | $ | 6,120.8 | $ | 30,193.1 | |||||||||
Receipts Due | |||||||||||||||||||
Reinsurance Recoverable | $ | 7,703.8 | $ | 313.2 | $ | 586.6 | $ | 602.0 | $ | 6,202.0 |
(in millions of dollars) | ||||||||||||
Year Ended December 31 | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Net Cash Provided by Operating Activities | $ | 1,292.1 | $ | 1,223.6 | $ | 1,031.5 | ||||||
Net Cash Used by Investing Activities | (713.0 | ) | (886.6 | ) | (419.2 | ) | ||||||
Net Cash Used by Financing Activities | (568.7 | ) | (328.6 | ) | (595.5 | ) | ||||||
Net Increase in Cash and Bank Deposits | $ | 10.4 | $ | 8.4 | $ | 16.8 |
AM Best | Fitch | Moody's | S&P | ||||
Outlook | Stable | Stable | Stable | Stable | |||
Issuer Credit Ratings | bbb | BBB | Baa2 | BBB | |||
Financial Strength Ratings | |||||||
Provident Life and Accident | A | A | A2 | A | |||
Provident Life and Casualty | A | A | NR | NR | |||
Unum Life of America | A | A | A2 | A | |||
First Unum Life | A | A | A2 | A | |||
Colonial Life & Accident | A | A | A2 | A | |||
Paul Revere Life | A | A | A2 | A | |||
Unum Insurance Company | B++ | A | A2 | NR | |||
Unum Limited | NR | NR | NR | A- |
December 31, 2015 | ||||||||||||
(in millions of dollars) | Notional Amount of Derivatives | Fair Value | Hypothetical | |||||||||
FV + 100 BP | Change in FV | |||||||||||
Assets | ||||||||||||
Fixed Maturity Securities (1) | $ | 43,354.4 | $ | 39,917.3 | $ | (3,437.1 | ) | |||||
Mortgage Loans | 2,013.9 | 1,914.1 | (99.8 | ) | ||||||||
Policy Loans, Net of Reinsurance Ceded | 347.9 | 321.5 | (26.4 | ) | ||||||||
Liabilities | ||||||||||||
Unrealized Adjustment to Reserves, Net of Reinsurance Ceded and Deferred Acquisition Costs (2) | $ | (3,344.6 | ) | $ | (1,038.5 | ) | $ | 2,306.1 | ||||
Short-term Debt | (366.2 | ) | (363.6 | ) | 2.6 | |||||||
Long-term Debt | (2,645.9 | ) | (2,472.4 | ) | 173.5 | |||||||
Derivatives (1) | ||||||||||||
Swaps | $ | 1,470.3 | $ | (0.4 | ) | $ | (7.2 | ) | $ | (6.8 | ) | |
Embedded Derivative in Modified Coinsurance Arrangement | (87.6 | ) | (88.1 | ) | (0.5 | ) |
December 31, 2014 | ||||||||||||
(in millions of dollars) | Notional Amount of Derivatives | Fair Value | Hypothetical | |||||||||
FV + 100 BP | Change in FV | |||||||||||
Assets | ||||||||||||
Fixed Maturity Securities (1) | $ | 45,064.9 | $ | 41,394.8 | $ | (3,670.1 | ) | |||||
Mortgage Loans | 2,024.2 | 1,931.3 | (92.9 | ) | ||||||||
Policy Loans, Net of Reinsurance Ceded | 339.2 | 313.2 | (26.0 | ) | ||||||||
Liabilities | ||||||||||||
Unrealized Adjustment to Reserves, Net of Reinsurance Ceded and Deferred Acquisition Costs (2) | $ | (5,836.1 | ) | $ | (3,071.9 | ) | $ | 2,764.2 | ||||
Short-term Debt | (158.9 | ) | (157.8 | ) | 1.1 | |||||||
Long-term Debt | (2,912.6 | ) | (2,745.6 | ) | 167.0 | |||||||
Derivatives (1) | ||||||||||||
Swaps | $ | 1,687.4 | $ | (64.9 | ) | $ | (86.8 | ) | $ | (21.9 | ) | |
Embedded Derivative in Modified Coinsurance Arrangement | (49.9 | ) | (55.6 | ) | (5.7 | ) |
• | Risk culture and governance |
• | Risk appetite policy |
• | Risk identification and prioritization |
• | Risk and capital modeling |
• | Risk management activities |
• | Risk reporting |
1st Line: Own and Manage | 2nd Line: Oversee | 3rd Line: Independent Assurance | ||
Business processes and procedures employed throughout the Company through which management assumes and monitors significant risks | Management committees chartered with oversight of activities within the 1st and 2nd lines of defense, mitigation of substantial exposures, and management of emerging risks | Independent review of ERM framework and risk mitigation |
• | We believe in the benefits of specialization and a focused business strategy. We seek profitable risk-taking in areas where we have established risk management skills and capabilities. |
• | We seek to manage our exposure to insurance risk through a combination of prudent underwriting with effective risk selection, maintaining pricing discipline, sound reserving practices, claims operational effectiveness, and selective use of reinsurance. Detailed underwriting guidelines and claim policies are tools used to manage our insurance risk exposure. We also monitor exposures against internally prescribed limits, and we diversify to reduce potential concentration risk and volatility. |
• | We maintain a detailed set of investment policies and guidelines, including fundamental credit analysis, that are used to manage our credit risk exposure and diversify our risks across asset classes and issuers. |
• | Finally, we foster a culture that embeds our corporate values and our code of conduct in our daily operations and preserves our reputation with customers and other key stakeholders. We monitor a composite set of operational risk metrics that measure operating effectiveness from the customer perspective. |
December 31 | |||||||
2015 | 2014 | ||||||
(in millions of dollars) | |||||||
As Adjusted | |||||||
Assets | |||||||
Investments | |||||||
Fixed Maturity Securities - at fair value (amortized cost: $39,658.7; $38,803.4) | $ | 43,354.4 | $ | 45,064.9 | |||
Mortgage Loans | 1,883.6 | 1,856.6 | |||||
Policy Loans | 3,395.4 | 3,306.6 | |||||
Other Long-term Investments | 583.0 | 545.0 | |||||
Short-term Investments | 807.3 | 974.3 | |||||
Total Investments | 50,023.7 | 51,747.4 | |||||
Other Assets | |||||||
Cash and Bank Deposits | 112.9 | 102.5 | |||||
Accounts and Premiums Receivable | 1,598.4 | 1,634.7 | |||||
Reinsurance Recoverable | 4,725.1 | 4,906.4 | |||||
Accrued Investment Income | 702.8 | 696.1 | |||||
Deferred Acquisition Costs | 2,008.5 | 1,901.3 | |||||
Goodwill | 230.9 | 198.7 | |||||
Property and Equipment | 523.9 | 531.7 | |||||
Income Tax Receivable | — | 69.5 | |||||
Other Assets | 663.5 | 661.9 | |||||
Total Assets | $ | 60,589.7 | $ | 62,450.2 |
December 31 | |||||||
2015 | 2014 | ||||||
(in millions of dollars) | |||||||
As Adjusted | |||||||
Liabilities and Stockholders' Equity | |||||||
Liabilities | |||||||
Policy and Contract Benefits | $ | 1,484.6 | $ | 1,529.3 | |||
Reserves for Future Policy and Contract Benefits | 43,540.6 | 45,929.4 | |||||
Unearned Premiums | 384.2 | 396.6 | |||||
Other Policyholders’ Funds | 1,674.6 | 1,657.8 | |||||
Income Tax Payable | 6.0 | — | |||||
Deferred Income Tax | 91.8 | 62.0 | |||||
Short-term Debt | 352.4 | 151.9 | |||||
Long-term Debt | 2,475.1 | 2,628.7 | |||||
Payables for Collateral on Investments | 415.4 | 73.8 | |||||
Other Liabilities | 1,501.1 | 1,498.8 | |||||
Total Liabilities | 51,925.8 | 53,928.3 | |||||
Commitments and Contingent Liabilities - Note 14 | |||||||
Stockholders' Equity | |||||||
Common Stock, $0.10 par | |||||||
Authorized: 725,000,000 shares | |||||||
Issued: 302,702,811 and 301,834,556 shares | 30.3 | 30.2 | |||||
Additional Paid-in Capital | 2,247.2 | 2,221.2 | |||||
Accumulated Other Comprehensive Income | 16.1 | 166.4 | |||||
Retained Earnings | 7,995.2 | 7,302.3 | |||||
Treasury Stock - at cost: 61,785,466 and 49,524,849 shares | (1,624.9 | ) | (1,198.2 | ) | |||
Total Stockholders' Equity | 8,663.9 | 8,521.9 | |||||
Total Liabilities and Stockholders' Equity | $ | 60,589.7 | $ | 62,450.2 |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars, except share data) | |||||||||||
As Adjusted | |||||||||||
Revenue | |||||||||||
Premium Income | $ | 8,082.4 | $ | 7,797.2 | $ | 7,624.7 | |||||
Net Investment Income | 2,481.2 | 2,492.2 | 2,506.9 | ||||||||
Realized Investment Gain (Loss) | |||||||||||
Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | (32.4 | ) | (13.5 | ) | (0.8 | ) | |||||
Other Net Realized Investment Gain (Loss) | (11.4 | ) | 29.6 | 7.6 | |||||||
Net Realized Investment Gain (Loss) | (43.8 | ) | 16.1 | 6.8 | |||||||
Other Income | 211.5 | 219.0 | 230.2 | ||||||||
Total Revenue | 10,731.3 | 10,524.5 | 10,368.6 | ||||||||
Benefits and Expenses | |||||||||||
Benefits and Change in Reserves for Future Benefits | 6,782.8 | 7,310.8 | 6,595.7 | ||||||||
Commissions | 996.3 | 935.3 | 909.5 | ||||||||
Interest and Debt Expense | 152.8 | 167.5 | 149.4 | ||||||||
Deferral of Acquisition Costs | (569.7 | ) | (524.0 | ) | (466.8 | ) | |||||
Amortization of Deferred Acquisition Costs | 482.3 | 440.8 | 418.9 | ||||||||
Compensation Expense | 835.1 | 820.9 | 790.4 | ||||||||
Other Expenses | 813.4 | 831.2 | 751.5 | ||||||||
Total Benefits and Expenses | 9,493.0 | 9,982.5 | 9,148.6 | ||||||||
Income Before Income Tax | 1,238.3 | 542.0 | 1,220.0 | ||||||||
Income Tax | |||||||||||
Current | 342.1 | 135.5 | 328.5 | ||||||||
Deferred | 29.1 | 4.4 | 44.5 | ||||||||
Total Income Tax | 371.2 | 139.9 | 373.0 | ||||||||
Net Income | $ | 867.1 | $ | 402.1 | $ | 847.0 | |||||
Net Income Per Common Share | |||||||||||
Basic | $ | 3.51 | $ | 1.57 | $ | 3.20 | |||||
Assuming Dilution | $ | 3.50 | $ | 1.57 | $ | 3.19 |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars) | |||||||||||
As Adjusted | |||||||||||
Net Income | $ | 867.1 | $ | 402.1 | $ | 847.0 | |||||
Other Comprehensive Income (Loss) | |||||||||||
Change in Net Unrealized Gain on Securities Before Adjustment (net of tax expense (benefit) of $(892.5); $725.8; $(1,102.8)) | (1,720.9 | ) | 1,439.3 | (2,101.2 | ) | ||||||
Change in Adjustment to Deferred Acquisition Costs and Reserves for Future Policy and Contract Benefits, Net of Reinsurance (net of tax expense (benefit) of $856.6; $(665.1); $743.3) | 1,634.9 | (1,284.7 | ) | 1,363.4 | |||||||
Change in Net Gain on Cash Flow Hedges (net of tax benefit of $4.3; $2.0; $1.3) | (13.0 | ) | (5.3 | ) | (5.3 | ) | |||||
Change in Foreign Currency Translation Adjustment (net of tax benefit of $0.1; $-; $-) | (60.2 | ) | (66.3 | ) | 25.5 | ||||||
Change in Unrecognized Pension and Postretirement Benefit Costs (net of tax expense (benefit) of $3.2; $(92.4); $185.2) | 8.9 | (171.6 | ) | 344.6 | |||||||
Total Other Comprehensive Loss | (150.3 | ) | (88.6 | ) | (373.0 | ) | |||||
Comprehensive Income | $ | 716.8 | $ | 313.5 | $ | 474.0 |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars) | |||||||||||
As Adjusted | |||||||||||
Common Stock | |||||||||||
Balance at Beginning of Year | $ | 30.2 | $ | 36.1 | $ | 36.0 | |||||
Common Stock Activity | 0.1 | 0.1 | 0.1 | ||||||||
Retirement of Treasury Stock | — | (6.0 | ) | — | |||||||
Balance at End of Year | 30.3 | 30.2 | 36.1 | ||||||||
Additional Paid-in Capital | |||||||||||
Balance at Beginning of Year | 2,221.2 | 2,634.1 | 2,607.7 | ||||||||
Common Stock Activity | 26.0 | 28.4 | 26.4 | ||||||||
Retirement of Treasury Stock | — | (441.3 | ) | — | |||||||
Balance at End of Year | 2,247.2 | 2,221.2 | 2,634.1 | ||||||||
Accumulated Other Comprehensive Income | |||||||||||
Balance at Beginning of Year | 166.4 | 255.0 | 628.0 | ||||||||
Other Comprehensive Loss | (150.3 | ) | (88.6 | ) | (373.0 | ) | |||||
Balance at End of Year | 16.1 | 166.4 | 255.0 | ||||||||
Retained Earnings | |||||||||||
Balance at Beginning of Year | 7,302.3 | 8,064.0 | 7,363.5 | ||||||||
Net Income | 867.1 | 402.1 | 847.0 | ||||||||
Dividends to Stockholders (per common share: $0.70; $0.62; $0.55) | (174.2 | ) | (159.4 | ) | (146.5 | ) | |||||
Retirement of Treasury Stock | — | (1,004.4 | ) | — | |||||||
Balance at End of Year | 7,995.2 | 7,302.3 | 8,064.0 | ||||||||
Treasury Stock | |||||||||||
Balance at Beginning of Year | (1,198.2 | ) | (2,349.3 | ) | (2,030.7 | ) | |||||
Purchases of Treasury Stock | (426.7 | ) | (300.6 | ) | (318.6 | ) | |||||
Retirement of Treasury Stock | — | 1,451.7 | — | ||||||||
Balance at End of Year | (1,624.9 | ) | (1,198.2 | ) | (2,349.3 | ) | |||||
Total Stockholders' Equity at End of Year | $ | 8,663.9 | $ | 8,521.9 | $ | 8,639.9 |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars) | |||||||||||
As Adjusted | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Net Income | $ | 867.1 | $ | 402.1 | $ | 847.0 | |||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | |||||||||||
Change in Receivables | 29.3 | (21.5 | ) | (196.7 | ) | ||||||
Change in Deferred Acquisition Costs | (87.4 | ) | (83.2 | ) | (47.9 | ) | |||||
Change in Insurance Reserves and Liabilities | 293.9 | 972.2 | 572.5 | ||||||||
Change in Income Taxes | 180.5 | (18.6 | ) | (23.5 | ) | ||||||
Change in Other Accrued Liabilities | 20.0 | 105.2 | 21.2 | ||||||||
Non-cash Components of Net Investment Income | (194.1 | ) | (195.7 | ) | (226.3 | ) | |||||
Net Realized Investment (Gain) Loss | 43.8 | (16.1 | ) | (6.8 | ) | ||||||
Depreciation | 99.5 | 87.9 | 84.8 | ||||||||
Other, Net | 39.5 | (8.7 | ) | 7.2 | |||||||
Net Cash Provided by Operating Activities | 1,292.1 | 1,223.6 | 1,031.5 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Proceeds from Sales of Fixed Maturity Securities | 880.1 | 450.1 | 1,040.5 | ||||||||
Proceeds from Maturities of Fixed Maturity Securities | 2,417.0 | 1,819.4 | 2,146.4 | ||||||||
Proceeds from Sales and Maturities of Other Investments | 347.0 | 235.0 | 243.4 | ||||||||
Purchase of Fixed Maturity Securities | (4,305.3 | ) | (2,918.4 | ) | (3,553.6 | ) | |||||
Purchase of Other Investments | (409.5 | ) | (285.2 | ) | (363.7 | ) | |||||
Net Sales (Purchases) of Short-term Investments | 170.6 | (69.3 | ) | 551.3 | |||||||
Net Increase (Decrease) in Payables for Collateral on Investments | 341.6 | (3.8 | ) | (378.2 | ) | ||||||
Acquisition of Business | (54.3 | ) | — | — | |||||||
Net Purchases of Property and Equipment | (100.2 | ) | (114.5 | ) | (105.5 | ) | |||||
Other, Net | — | 0.1 | 0.2 | ||||||||
Net Cash Used by Investing Activities | (713.0 | ) | (886.6 | ) | (419.2 | ) | |||||
Cash Flows from Financing Activities | |||||||||||
Issuance of Long-term Debt | 271.4 | 347.2 | — | ||||||||
Long-term Debt Repayments | (226.3 | ) | (186.6 | ) | (116.2 | ) | |||||
Cost Related to Early Retirement of Debt | — | (13.2 | ) | — | |||||||
Issuance of Common Stock | 6.4 | 12.3 | 11.4 | ||||||||
Repurchase of Common Stock | (417.9 | ) | (306.0 | ) | (317.2 | ) | |||||
Dividends Paid to Stockholders | (174.2 | ) | (159.4 | ) | (146.5 | ) | |||||
Other, Net | (28.1 | ) | (22.9 | ) | (27.0 | ) | |||||
Net Cash Used by Financing Activities | (568.7 | ) | (328.6 | ) | (595.5 | ) | |||||
Net Increase in Cash and Bank Deposits | 10.4 | 8.4 | 16.8 | ||||||||
Cash and Bank Deposits at Beginning of Year | 102.5 | 94.1 | 77.3 | ||||||||
Cash and Bank Deposits at End of Year | $ | 112.9 | $ | 102.5 | $ | 94.1 |
Accounting Standards Codification (ASC) | Description | Date of Adoption | Effect on Financial Statements | |||
ASC 860 "Transfers and Servicing" | This update changed the accounting for repurchase-to-maturity transactions and linked repurchase financings to secured borrowing accounting, which is consistent with the accounting for other repurchase agreements. The update also required disclosures for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions. | January 1, 2015, except for certain disclosures, which were effective April 1, 2015. | The adoption of this update expanded our disclosures, but had no effect on our financial position or results of operations. | |||
ASC 323 "Investments - Equity Method and Joint Ventures" | This update permitted entities to make an accounting policy election to account for investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). Additional disclosures concerning investments in qualified affordable housing projects were also required. We elected to adopt this guidance and applied the amendments in the update retrospectively, adjusting all prior periods in our consolidated financial statements and accompanying notes. | January 1, 2015 | The cumulative effect at January 1, 2013, was an $8.1 million reduction in stockholders' equity. The following table summarizes the effects of our retrospective adoption on periods reported herein. |
Historical | Effect | Historical | Effect | ||||||||||||||||||||
Accounting | As | of | Accounting | As | of | ||||||||||||||||||
Method | Adjusted | Change | Method | Adjusted | Change | ||||||||||||||||||
(in millions of dollars, except share data) | |||||||||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | ||||||||||||||||||||||
Consolidated Statements of Income | |||||||||||||||||||||||
Net Investment Income | $ | 2,477.4 | $ | 2,492.2 | $ | 14.8 | $ | 2,492.1 | $ | 2,506.9 | $ | 14.8 | |||||||||||
Income Tax - Current | 103.3 | 135.5 | 32.2 | 296.6 | 328.5 | 31.9 | |||||||||||||||||
Income Tax - Deferred | 10.5 | 4.4 | (6.1 | ) | 50.5 | 44.5 | (6.0 | ) | |||||||||||||||
Net Income | 413.4 | 402.1 | (11.3 | ) | 858.1 | 847.0 | (11.1 | ) | |||||||||||||||
Net Income Per Common Share | |||||||||||||||||||||||
Basic | 1.62 | 1.57 | (0.05 | ) | 3.24 | 3.20 | (0.04 | ) | |||||||||||||||
Assuming Dilution | 1.61 | 1.57 | (0.04 | ) | 3.23 | 3.19 | (0.04 | ) | |||||||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||||||||||||||
Net Income | $ | 413.4 | $ | 402.1 | $ | (11.3 | ) | $ | 858.1 | $ | 847.0 | $ | (11.1 | ) | |||||||||
Consolidated Statements of Stockholders' Equity | |||||||||||||||||||||||
Retained Earnings | |||||||||||||||||||||||
Balance at Beginning of Year | $ | 8,083.2 | $ | 8,064.0 | $ | (19.2 | ) | $ | 7,371.6 | $ | 7,363.5 | $ | (8.1 | ) | |||||||||
Net Income | 413.4 | 402.1 | (11.3 | ) | 858.1 | 847.0 | (11.1 | ) | |||||||||||||||
Balance at End of Year | 7,332.8 | 7,302.3 | (30.5 | ) | 8,083.2 | 8,064.0 | (19.2 | ) | |||||||||||||||
Consolidated Statements of Cash Flows | |||||||||||||||||||||||
Net Income | $ | 413.4 | $ | 402.1 | $ | (11.3 | ) | $ | 858.1 | $ | 847.0 | $ | (11.1 | ) | |||||||||
Change in Income Taxes | (44.7 | ) | (18.6 | ) | 26.1 | (49.4 | ) | (23.5 | ) | 25.9 | |||||||||||||
Non-cash Components of Net Investment Income | (180.9 | ) | (195.7 | ) | (14.8 | ) | (211.5 | ) | (226.3 | ) | (14.8 | ) | |||||||||||
December 31, 2014 | |||||||||||||||||||||||
Consolidated Balance Sheets | |||||||||||||||||||||||
Other Long-term Investments | $ | 591.9 | $ | 545.0 | $ | (46.9 | ) | ||||||||||||||||
Deferred Income Tax | 78.4 | 62.0 | (16.4 | ) | |||||||||||||||||||
Retained Earnings | 7,332.8 | 7,302.3 | (30.5 | ) |
ASC | Description | Date of Adoption | Effect on Financial Statements | |||
ASC 825 "Financial Instruments - Overall" | This update changes the accounting and disclosure requirements for certain financial instruments. These changes include a requirement to measure equity investments, other than those that result in consolidation or are accounted for under the equity method, at fair value through net income unless the investment qualifies for certain practicability exceptions. In addition, the update clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale fixed maturity securities. Changes also include the modification of certain disclosures around the fair value of financial instruments, including the requirement for separate presentation of financial assets and liabilities by measurement category, as well as the elimination of certain disclosures around methods and significant assumptions used to estimate fair value. The guidance is to be applied retrospectively. | January 1, 2018 | We have not yet determined the expected impact on our financial position or results of operations. | |||
ASC 606 "Revenue from Contracts with Customers" | This update supersedes virtually all existing guidance regarding the recognition of revenue from customers. Specifically excluded from the scope of this update are insurance contracts, although our fee-based service products are included within the scope. The core principle of this guidance is that revenue recognition should depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance is to be applied retrospectively. | January 1, 2018 | The adoption of this update will not have a material effect on our financial position or results of operations. | |||
ASC 835 "Interest - Imputation of Interest" | This update simplifies the presentation of deferred debt issuance costs by requiring these costs to be presented in the balance sheet as a reduction of the carrying amount of the debt liability to which the deferred costs relate, rather than classifying the deferred costs as an asset. This classification is consistent with the treatment of debt discounts. The guidance is to be applied retrospectively. | January 1, 2016 | The adoption of this update will result in reclassification adjustments to our consolidated balance sheets but will not have an effect on our financial position or results of operations. | |||
ASC 944 "Financial Services - Insurance" | This update changes the disclosure requirements for certain insurance contracts. These changes include a requirement to disclose the rollforward of the liability for unpaid claims and claim adjustment expenses in both interim and annual reporting periods for long-duration and short-duration insurance contracts. Additional claims disclosures will also be required for short-duration contracts. The guidance is to be applied retrospectively. | January 1, 2016 for annual reporting period disclosures and January 1, 2017 for interim reporting period disclosures. | The adoption of this update will modify our disclosures but will not have an effect on our financial position or results of operations. | |||
ASC 820 "Fair Value Measurement" | This update eliminates the requirement to categorize within the fair value hierarchy table investments whose fair value is measured at net asset value using the practical expedient. Instead, entities will be required to disclose the fair value of these investments so that financial statement users can reconcile amounts reported in the fair value hierarchy table to the amounts reported on the consolidated balance sheets. The guidance is to be applied retrospectively. | January 1, 2016 | The adoption of this update will modify our disclosures but will not have an effect on our financial position or results of operations. |
December 31, 2015 | December 31, 2014 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
(in millions of dollars) | |||||||||||||||
Assets | |||||||||||||||
Fixed Maturity Securities | $ | 43,354.4 | $ | 43,354.4 | $ | 45,064.9 | $ | 45,064.9 | |||||||
Mortgage Loans | 1,883.6 | 2,013.9 | 1,856.6 | 2,024.2 | |||||||||||
Policy Loans | 3,395.4 | 3,498.0 | 3,306.6 | 3,407.6 | |||||||||||
Other Long-term Investments | |||||||||||||||
Derivatives | 49.8 | 49.8 | 28.0 | 28.0 | |||||||||||
Equity Securities | 1.4 | 1.4 | 12.5 | 12.5 | |||||||||||
Miscellaneous Long-term Investments | 474.4 | 474.4 | 438.7 | 438.7 | |||||||||||
Liabilities | |||||||||||||||
Policyholders' Funds | |||||||||||||||
Deferred Annuity Products | $ | 608.8 | $ | 608.8 | $ | 621.4 | $ | 621.4 | |||||||
Supplementary Contracts without Life Contingencies | 641.1 | 641.1 | 600.4 | 600.4 | |||||||||||
Short-term Debt | 352.4 | 366.2 | 151.9 | 158.9 | |||||||||||
Long-term Debt | 2,475.1 | 2,645.9 | 2,628.7 | 2,912.6 | |||||||||||
Payables for Collateral on Investments | |||||||||||||||
Federal Home Loan Bank (FHLB) Funding Agreements | 350.0 | 350.0 | — | — | |||||||||||
Other Liabilities | |||||||||||||||
Derivatives | 50.2 | 50.2 | 92.9 | 92.9 | |||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | 87.6 | 87.6 | 49.9 | 49.9 | |||||||||||
Unfunded Commitments to Investment Partnerships | 5.0 | 5.0 | 12.8 | 12.8 |
Level 2 | Level 3 | ||||
Instrument | Observable Inputs | Unobservable Inputs | |||
United States Government and Government Agencies and Authorities | |||||
Valuation Techniques | Principally the market approach | Not applicable | |||
Key Inputs | Prices obtained from external pricing services | ||||
States, Municipalities, and Political Subdivisions | |||||
Valuation Techniques | Principally the market approach | Principally the market approach | |||
Key Inputs | Prices obtained from external pricing services | Analysis of similar bonds, adjusted for comparability | |||
Relevant reports issued by analysts and rating agencies | Non-binding broker quotes | ||||
Audited financial statements | Security and issuer level spreads | ||||
Foreign Governments | |||||
Valuation Techniques | Principally the market approach | Principally the market approach | |||
Key Inputs | Prices obtained from external pricing services | Analysis of similar bonds, adjusted for comparability | |||
Non-binding broker quotes | Non-binding broker quotes | ||||
Call provisions | Security and issuer level spreads | ||||
Public Utilities | |||||
Valuation Techniques | Principally the market and income approaches | Principally the market and income approaches | |||
Key Inputs | TRACE pricing | Change in benchmark reference | |||
Prices obtained from external pricing services | Analysis of similar bonds, adjusted for comparability | ||||
Non-binding broker quotes | Discount for size - illiquidity | ||||
Benchmark yields | Non-binding broker quotes | ||||
Transactional data for new issuances and secondary trades | Lack of marketability | ||||
Security cash flows and structures | Security and issuer level spreads | ||||
Recent issuance / supply | Volatility of credit | ||||
Security and issuer level spreads | |||||
Security creditor ratings/maturity/capital structure/optionality | |||||
Public covenants | |||||
Comparative bond analysis | |||||
Relevant reports issued by analysts and rating agencies | |||||
Audited financial statements | |||||
Mortgage/Asset-Backed Securities | |||||
Valuation Techniques | Principally the market and income approaches | Principally the market approach | |||
Key Inputs | Prices obtained from external pricing services | Analysis of similar bonds, adjusted for comparability |
Level 2 | Level 3 | ||||
Instrument | Observable Inputs | Unobservable Inputs | |||
Non-binding broker quotes | Non-binding broker quotes | ||||
Security cash flows and structures | Security and issuer level spreads | ||||
Underlying collateral | |||||
Prepayment speeds/loan performance/delinquencies | |||||
Relevant reports issued by analysts and rating agencies | |||||
Audited financial statements | |||||
All Other Corporate Bonds | |||||
Valuation Techniques | Principally the market and income approaches | Principally the market and income approaches | |||
Key Inputs | TRACE pricing | Change in benchmark reference | |||
Prices obtained from external pricing services | Analysis of similar bonds, adjusted for comparability | ||||
Non-binding broker quotes | Discount for size - illiquidity | ||||
Benchmark yields | Non-binding broker quotes | ||||
Transactional data for new issuances and secondary trades | Lack of marketability | ||||
Security cash flows and structures | Security and issuer level spreads | ||||
Recent issuance / supply | Volatility of credit | ||||
Security and issuer level spreads | |||||
Security creditor ratings/maturity/capital structure/optionality | |||||
Public covenants | |||||
Comparative bond analysis | |||||
Relevant reports issued by analysts and rating agencies | |||||
Audited financial statements | |||||
Redeemable Preferred Stocks | |||||
Valuation Techniques: | Principally the market approach | Principally the market approach | |||
Key Inputs: | Non-binding broker quotes | Non-binding broker quotes | |||
Benchmark yields | |||||
Comparative bond analysis | |||||
Call provisions | |||||
Relevant reports issued by analysts and rating agencies | |||||
Audited financial statements | |||||
Equity Securities | |||||
Valuation Techniques: | Principally the market approach | Principally the market and income approaches | |||
Key Inputs: | Prices obtained from external pricing services | Financial statement analysis | |||
Non-binding broker quotes | Non-binding broker quotes |
• | Approximately 78.3 percent of our fixed maturity securities were valued based on prices from pricing services that generally use observable inputs such as prices for securities or comparable securities in active markets in their valuation techniques. These assets were classified as Level 2. Level 2 assets or liabilities are those valued using inputs (other than prices included in Level 1) that are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument's anticipated life. |
• | Approximately 3.4 percent of our fixed maturity securities were valued based on one or more non-binding broker quotes, if validated by observable market data, or on TRACE prices for identical or similar assets absent current market activity. When only one price is available, it is used if observable inputs and analysis confirms that it is appropriate. These assets, for which we were able to validate the price using other observable market data, were classified as Level 2. |
• | Approximately 11.5 percent of our fixed maturity securities were valued based on prices of comparable securities, matrix pricing, market models, and/or internal models or were valued based on non-binding quotes with no other observable market data. These assets were classified as either Level 2 or Level 3, with the categorization dependent on whether there was other observable market data. Level 3 is the lowest category of the fair value hierarchy and reflects the judgment of management regarding what market participants would use in pricing assets or liabilities at the measurement date. Financial assets and liabilities categorized as Level 3 are generally those that are valued using unobservable inputs to extrapolate an estimated fair value. |
December 31, 2015 | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
(in millions of dollars) | |||||||||||||||
Assets | |||||||||||||||
Fixed Maturity Securities | |||||||||||||||
United States Government and Government Agencies and Authorities | $ | 97.3 | $ | 1,367.9 | $ | — | $ | 1,465.2 | |||||||
States, Municipalities, and Political Subdivisions | — | 1,994.9 | 122.2 | 2,117.1 | |||||||||||
Foreign Governments | — | 998.7 | 52.9 | 1,051.6 | |||||||||||
Public Utilities | 59.1 | 7,687.2 | 274.1 | 8,020.4 | |||||||||||
Mortgage/Asset-Backed Securities | — | 2,481.5 | — | 2,481.5 | |||||||||||
All Other Corporate Bonds | 2,770.4 | 23,992.8 | 1,408.2 | 28,171.4 | |||||||||||
Redeemable Preferred Stocks | — | 23.4 | 23.8 | 47.2 | |||||||||||
Total Fixed Maturity Securities | 2,926.8 | 38,546.4 | 1,881.2 | 43,354.4 | |||||||||||
Other Long-term Investments | |||||||||||||||
Derivatives | |||||||||||||||
Interest Rate Swaps | — | 2.4 | — | 2.4 | |||||||||||
Foreign Exchange Contracts | — | 47.4 | — | 47.4 | |||||||||||
Total Derivatives | — | 49.8 | — | 49.8 | |||||||||||
Equity Securities | — | — | 1.4 | 1.4 | |||||||||||
Liabilities | |||||||||||||||
Other Liabilities | |||||||||||||||
Derivatives | |||||||||||||||
Interest Rate Swaps | $ | — | $ | 12.3 | $ | — | $ | 12.3 | |||||||
Foreign Exchange Contracts | — | 37.6 | — | 37.6 | |||||||||||
Credit Default Swaps | — | 0.3 | — | 0.3 | |||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | — | — | 87.6 | 87.6 | |||||||||||
Total Derivatives | — | 50.2 | 87.6 | 137.8 |
December 31, 2014 | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
(in millions of dollars) | |||||||||||||||
Assets | |||||||||||||||
Fixed Maturity Securities | |||||||||||||||
United States Government and Government Agencies and Authorities | $ | 297.5 | $ | 941.0 | $ | — | $ | 1,238.5 | |||||||
States, Municipalities, and Political Subdivisions | — | 1,981.4 | 140.1 | 2,121.5 | |||||||||||
Foreign Governments | — | 1,238.1 | 69.3 | 1,307.4 | |||||||||||
Public Utilities | 106.2 | 8,129.4 | 315.0 | 8,550.6 | |||||||||||
Mortgage/Asset-Backed Securities | — | 2,431.8 | — | 2,431.8 | |||||||||||
All Other Corporate Bonds | 2,556.6 | 25,383.3 | 1,425.3 | 29,365.2 | |||||||||||
Redeemable Preferred Stocks | — | 25.0 | 24.9 | 49.9 | |||||||||||
Total Fixed Maturity Securities | 2,960.3 | 40,130.0 | 1,974.6 | 45,064.9 | |||||||||||
Other Long-term Investments | |||||||||||||||
Derivatives | |||||||||||||||
Interest Rate Swaps | — | 5.7 | — | 5.7 | |||||||||||
Foreign Exchange Contracts | — | 22.3 | — | 22.3 | |||||||||||
Total Derivatives | — | 28.0 | — | 28.0 | |||||||||||
Equity Securities | — | 11.1 | 1.4 | 12.5 | |||||||||||
Liabilities | |||||||||||||||
Other Liabilities | |||||||||||||||
Derivatives | |||||||||||||||
Interest Rate Swaps | $ | — | $ | 20.8 | $ | — | $ | 20.8 | |||||||
Foreign Exchange Contracts | — | 70.9 | — | 70.9 | |||||||||||
Credit Default Swaps | — | 1.2 | — | 1.2 | |||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | — | — | 49.9 | 49.9 | |||||||||||
Total Derivatives | — | 92.9 | 49.9 | 142.8 |
Year Ended December 31 | |||||||||||||||
2015 | 2014 | ||||||||||||||
Transfers into | |||||||||||||||
Level 1 from Level 2 | Level 2 from Level 1 | Level 1 from Level 2 | Level 2 from Level 1 | ||||||||||||
(in millions of dollars) | |||||||||||||||
Fixed Maturity Securities | |||||||||||||||
United States Government and Government Agencies and Authorities | $ | — | $ | 195.3 | $ | 163.2 | $ | — | |||||||
Public Utilities | 7.3 | 85.1 | 81.8 | 253.4 | |||||||||||
All Other Corporate Bonds | 1,369.2 | 1,556.7 | 1,592.1 | 1,598.3 | |||||||||||
Total Fixed Maturity Securities | $ | 1,376.5 | $ | 1,837.1 | $ | 1,837.1 | $ | 1,851.7 |
Year Ended December 31, 2015 | |||||||||||||||||||||||||||||||
Total Realized and Unrealized Investment Gains (Losses) Included in | |||||||||||||||||||||||||||||||
Beginning of Year | Earnings | Other Comprehensive Income or Loss | Purchases | Sales | Level 3 Transfers | End of Year | |||||||||||||||||||||||||
Into | Out of | ||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||
States, Municipalities, and Political Subdivisions | $ | 140.1 | $ | (0.1 | ) | $ | (5.3 | ) | $ | 12.0 | $ | (16.5 | ) | $ | — | $ | (8.0 | ) | $ | 122.2 | |||||||||||
Foreign Governments | 69.3 | — | (1.4 | ) | — | (15.0 | ) | — | — | 52.9 | |||||||||||||||||||||
Public Utilities | 315.0 | — | (6.9 | ) | 40.0 | (2.4 | ) | 118.5 | (190.1 | ) | 274.1 | ||||||||||||||||||||
All Other Corporate Bonds | 1,425.3 | (7.0 | ) | (113.2 | ) | 55.3 | (220.8 | ) | 810.2 | (541.6 | ) | 1,408.2 | |||||||||||||||||||
Redeemable Preferred Stocks | 24.9 | — | (1.1 | ) | — | — | — | — | 23.8 | ||||||||||||||||||||||
Total Fixed Maturity Securities | 1,974.6 | (7.1 | ) | (127.9 | ) | 107.3 | (254.7 | ) | 928.7 | (739.7 | ) | 1,881.2 | |||||||||||||||||||
Equity Securities | 1.4 | — | — | — | — | — | — | 1.4 | |||||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | (49.9 | ) | (37.7 | ) | — | — | — | — | — | (87.6 | ) | ||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||||||||
Total Realized and Unrealized Investment Gains (Losses) Included in | |||||||||||||||||||||||||||||||
Beginning of Year | Earnings | Other Comprehensive Income or Loss | Purchases | Sales | Level 3 Transfers | End of Year | |||||||||||||||||||||||||
Into | Out of | ||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||
States, Municipalities, and Political Subdivisions | $ | 175.1 | $ | — | $ | 21.0 | $ | — | $ | (1.4 | ) | $ | — | $ | (54.6 | ) | $ | 140.1 | |||||||||||||
Foreign Governments | 78.5 | 1.1 | 0.8 | — | (11.1 | ) | — | — | 69.3 | ||||||||||||||||||||||
Public Utilities | 139.3 | — | 6.9 | — | (0.8 | ) | 199.9 | (30.3 | ) | 315.0 | |||||||||||||||||||||
Mortgage/Asset-Backed Securities | 0.5 | (0.2 | ) | 0.3 | — | (0.6 | ) | — | — | — | |||||||||||||||||||||
All Other Corporate Bonds | 1,923.3 | 0.7 | 44.8 | 91.1 | (147.7 | ) | 626.9 | (1,113.8 | ) | 1,425.3 | |||||||||||||||||||||
Redeemable Preferred Stocks | 23.8 | — | 1.1 | — | — | — | — | 24.9 | |||||||||||||||||||||||
Total Fixed Maturity Securities | 2,340.5 | 1.6 | 74.9 | 91.1 | (161.6 | ) | 826.8 | (1,198.7 | ) | 1,974.6 | |||||||||||||||||||||
Equity Securities | 4.6 | 10.5 | (0.2 | ) | — | (13.5 | ) | — | — | 1.4 | |||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | (53.2 | ) | 3.3 | — | — | — | — | — | (49.9 | ) |
December 31, 2015 | |||||||
Fair Value | Unobservable Input | Range/Weighted Average | |||||
(in millions of dollars) | |||||||
Fixed Maturity Securities | |||||||
States, Municipalities, and Political Subdivisions - Private | $ | 73.3 | Change in Benchmark Reference | (a) | 0.50% - 1.00% / 0.70% | ||
States, Municipalities, and Political Subdivisions - Public | 12.0 | Market Convention | (f) | Priced at Par | |||
All Other Corporate Bonds - Private | 151.0 | Comparability Adjustment Discount for Size Lack of Marketability Volatility of Credit Market Convention | (b) (c) (d) (e) (f) | 0.50% - 0.50% / 0.50% 0.50% - 0.50% / 0.50% 1.00% - 2.00% / 1.75% 0.25% - 5.56% / 0.94% Priced at Par | |||
All Other Corporate Bonds - Public | 36.2 | Lack of Marketability | (d) | 1.00% - 1.00% / 1.00% | |||
Equity Securities - Private | 1.1 | Market Convention | (f) | Priced at Cost or Owner's Equity | |||
Embedded Derivative in Modified Coinsurance Arrangement | (87.6 | ) | Projected Liability Cash Flows | (g) | Actuarial Assumptions |
December 31, 2014 | |||||||
Fair Value | Unobservable Input | Range/Weighted Average | |||||
(in millions of dollars) | |||||||
Fixed Maturity Securities | |||||||
States, Municipalities, and Political Subdivisions - Private | $ | 101.0 | Comparability Adjustment | (b) | 0.25% - 1.00% / 0.71% | ||
All Other Corporate Bonds - Private | 432.8 | Comparability Adjustment Discount for Size Lack of Marketability Volatility of Credit Market Convention | (b) (c) (d) (e) (f) | 0.50% - 0.70% / 0.60% 0.50% - 0.50% / 0.50% 0.48% - 0.48% / 0.48% 0.20% - 2.00% / 0.64% Priced at Par | |||
All Other Corporate Bonds - Public | 128.7 | Comparability Adjustment Lack of Marketability Volatility of Credit | (b) (d) (e) | 0.10% - 0.50% / 0.40% 0.20% - 0.35% / 0.29% (0.30)% - 0.50% / (0.05)% | |||
Equity Securities - Private | 1.1 | Market Convention | (f) | Priced at Cost or Owner's Equity | |||
Embedded Derivative in Modified Coinsurance Arrangement | (49.9 | ) | Projected Liability Cash Flows | (g) | Actuarial Assumptions |
(a) | Represents basis point adjustments for changes in benchmark spreads associated with various ratings categories |
(b) | Represents basis point adjustments for changes in benchmark spreads associated with various industry sectors |
(c) | Represents basis point adjustments based on issue/issuer size relative to the benchmark |
(d) | Represents basis point adjustments to apply a discount due to the illiquidity of an investment |
(e) | Represents basis point adjustments for credit-specific factors |
(f) | Represents a decision to price based on par value, cost, or owner's equity when limited data is available |
(g) | Represents various actuarial assumptions required to derive the liability cash flows including incidence, termination, and lapse rates |
December 31, 2015 | |||||||||||||||
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | ||||||||||||
(in millions of dollars) | |||||||||||||||
United States Government and Government Agencies and Authorities | $ | 1,265.8 | $ | 207.3 | $ | 7.9 | $ | 1,465.2 | |||||||
States, Municipalities, and Political Subdivisions | 1,828.3 | 293.4 | 4.6 | 2,117.1 | |||||||||||
Foreign Governments | 897.2 | 154.4 | — | 1,051.6 | |||||||||||
Public Utilities | 6,979.3 | 1,057.4 | 16.3 | 8,020.4 | |||||||||||
Mortgage/Asset-Backed Securities | 2,318.6 | 167.6 | 4.7 | 2,481.5 | |||||||||||
All Other Corporate Bonds | 26,325.5 | 2,454.1 | 608.2 | 28,171.4 | |||||||||||
Redeemable Preferred Stocks | 44.0 | 3.8 | 0.6 | 47.2 | |||||||||||
Total Fixed Maturity Securities | $ | 39,658.7 | $ | 4,338.0 | $ | 642.3 | $ | 43,354.4 |
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 |
December 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 | $ | 213.5 | $ | 7.9 | $ | — | $ | — | |||||||
States, Municipalities, and Political Subdivisions | 112.3 | 4.3 | 3.3 | 0.3 | |||||||||||
Public Utilities | 408.4 | 14.4 | 10.3 | 1.9 | |||||||||||
Mortgage/Asset-Backed Securities | 504.3 | 4.6 | 9.0 | 0.1 | |||||||||||
All Other Corporate Bonds | 6,155.0 | 464.2 | 554.7 | 144.0 | |||||||||||
Redeemable Preferred Stocks | 10.4 | 0.6 | — | — | |||||||||||
Total Fixed Maturity Securities | $ | 7,403.9 | $ | 496.0 | $ | 577.3 | $ | 146.3 |
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 |
December 31, 2015 | |||||||||||||||||||
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 | $ | 1,112.2 | $ | 20.6 | $ | 1,098.8 | $ | 0.2 | $ | 33.8 | |||||||||
Over 1 year through 5 years | 6,514.0 | 554.4 | 6,649.5 | 49.8 | 369.1 | ||||||||||||||
Over 5 years through 10 years | 10,519.3 | 746.3 | 7,124.4 | 320.5 | 3,820.7 | ||||||||||||||
Over 10 years | 19,194.6 | 2,849.1 | 18,532.3 | 267.1 | 3,244.3 | ||||||||||||||
37,340.1 | 4,170.4 | 33,405.0 | 637.6 | 7,467.9 | |||||||||||||||
Mortgage/Asset-Backed Securities | 2,318.6 | 167.6 | 1,968.2 | 4.7 | 513.3 | ||||||||||||||
Total Fixed Maturity Securities | $ | 39,658.7 | $ | 4,338.0 | $ | 35,373.2 | $ | 642.3 | $ | 7,981.2 |
December 31, 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 | $ | 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 |
• | Whether we expect to recover the entire amortized cost basis of the security |
• | Whether we intend to sell the security or will be required to sell the security before the recovery of its amortized cost basis |
• | Whether the security is current as to principal and interest payments |
• | The significance of the decline in value |
• | The time period during which there has been a significant decline in value |
• | Current and future business prospects and trends of earnings |
• | The valuation of the security's underlying collateral |
• | Relevant industry conditions and trends relative to their historical cycles |
• | Market conditions |
• | Rating agency and governmental actions |
• | Bid and offering prices and the level of trading activity |
• | Adverse changes in estimated cash flows for securitized investments |
• | Changes in fair value subsequent to the balance sheet date |
• | Any other key measures for the related security |
Year Ended December 31 | |||||||
2015 | 2014 | ||||||
(in millions of dollars) | |||||||
Income Tax Credits | $ | 41.8 | $ | 41.8 | |||
Amortization, net of tax | (23.3 | ) | (23.2 | ) | |||
Income Tax Benefit | $ | 18.5 | $ | 18.6 |
December 31 | |||||||||||||
2015 | 2014 | ||||||||||||
(in millions of dollars) | |||||||||||||
Carrying | Percent of | Carrying | Percent of | ||||||||||
Amount | Total | Amount | Total | ||||||||||
Property Type | |||||||||||||
Apartment | $ | 130.6 | 6.9 | % | $ | 110.1 | 5.9 | % | |||||
Industrial | 574.1 | 30.5 | 542.9 | 29.2 | |||||||||
Office | 764.7 | 40.6 | 794.0 | 42.8 | |||||||||
Retail | 392.3 | 20.8 | 409.6 | 22.1 | |||||||||
Other | 21.9 | 1.2 | — | — | |||||||||
Total | $ | 1,883.6 | 100.0 | % | $ | 1,856.6 | 100.0 | % |
Region | |||||||||||||
New England | $ | 97.6 | 5.2 | % | $ | 105.6 | 5.7 | % | |||||
Mid-Atlantic | 128.8 | 6.9 | 179.4 | 9.7 | |||||||||
East North Central | 186.4 | 9.9 | 210.6 | 11.4 | |||||||||
West North Central | 162.6 | 8.6 | 166.2 | 8.9 | |||||||||
South Atlantic | 409.3 | 21.7 | 453.6 | 24.4 | |||||||||
East South Central | 79.1 | 4.2 | 75.3 | 4.1 | |||||||||
West South Central | 237.6 | 12.6 | 215.6 | 11.6 | |||||||||
Mountain | 196.5 | 10.4 | 116.0 | 6.2 | |||||||||
Pacific | 385.7 | 20.5 | 334.3 | 18.0 | |||||||||
Total | $ | 1,883.6 | 100.0 | % | $ | 1,856.6 | 100.0 | % |
• | Loan-to-value ratio |
• | Debt service coverage ratio based on current operating income |
• | Property location, including regional economics, trends and demographics |
• | Age, condition, and construction quality of property |
• | Current and historical occupancy of property |
• | Lease terms relative to market |
• | Tenant size and financial strength |
• | Borrower's financial strength |
• | Borrower's equity in transaction |
• | Additional collateral, if any |
December 31 | |||||||
2015 | 2014 | ||||||
(in millions of dollars) | |||||||
Internal Rating | |||||||
Aa | $ | 1.1 | $ | 7.7 | |||
A | 586.6 | 666.0 | |||||
Baa | 1,285.8 | 1,156.7 | |||||
Ba | 10.1 | 13.1 | |||||
B | — | 13.1 | |||||
Total | $ | 1,883.6 | $ | 1,856.6 |
Loan-to-Value Ratio | |||||||
<= 65% | $ | 937.2 | $ | 898.7 | |||
> 65% <= 75% | 842.5 | 818.0 | |||||
> 75% <= 85% | 88.4 | 102.3 | |||||
> 85% | 15.5 | 37.6 | |||||
Total | $ | 1,883.6 | $ | 1,856.6 |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars) | |||||||||||
Foreclosure | |||||||||||
Carrying Amount | $ | — | $ | 18.1 | $ | 4.3 | |||||
Number of Loans | — | 1 | 1 |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars) | |||||||||||
Balance at Beginning of Year | $ | 1.5 | $ | 1.5 | $ | 1.5 | |||||
Provision | 0.5 | 3.0 | — | ||||||||
Charge-offs, Net of Recoveries | (2.0 | ) | (3.0 | ) | — | ||||||
Balance at End of Year | $ | — | $ | 1.5 | $ | 1.5 |
December 31, 2015 | |||
Overnight and Continuous | |||
(in millions of dollars) | |||
United States Government and Government Agencies and Authorities | $ | 1.2 | |
Public Utilities | 4.0 | ||
All Other Corporate Bonds | 23.8 | ||
Total Borrowings | 29.0 | ||
Gross Amount of Recognized Liability for Securities Lending Transactions | 29.0 | ||
Amounts Related to Agreements Not Included in Offsetting Disclosure Contained Herein | $ | — |
December 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 | $ | 49.8 | $ | — | $ | 49.8 | $ | (12.8 | ) | $ | (36.4 | ) | $ | 0.6 | ||||||||||
Securities Lending | 181.6 | — | 181.6 | (152.6 | ) | (29.0 | ) | — | ||||||||||||||||
Total | $ | 231.4 | $ | — | $ | 231.4 | $ | (165.4 | ) | $ | (65.4 | ) | $ | 0.6 | ||||||||||
Financial Liabilities: | ||||||||||||||||||||||||
Derivatives | $ | 50.2 | $ | — | $ | 50.2 | $ | (35.6 | ) | $ | — | $ | 14.6 | |||||||||||
Securities Lending | 29.0 | — | 29.0 | (29.0 | ) | — | — | |||||||||||||||||
Total | $ | 79.2 | $ | — | $ | 79.2 | $ | (64.6 | ) | $ | — | $ | 14.6 |
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 |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars) | |||||||||||
Fixed Maturity Securities | $ | 2,327.1 | $ | 2,344.4 | $ | 2,371.6 | |||||
Derivatives | 44.2 | 40.4 | 35.2 | ||||||||
Mortgage Loans | 114.0 | 109.8 | 109.2 | ||||||||
Policy Loans | 16.7 | 16.3 | 15.7 | ||||||||
Other Long-term Investments | 21.6 | 23.0 | 18.0 | ||||||||
Short-term Investments | 3.4 | 2.4 | 2.4 | ||||||||
Gross Investment Income | 2,527.0 | 2,536.3 | 2,552.1 | ||||||||
Less Investment Expenses | 31.2 | 29.0 | 29.5 | ||||||||
Less Investment Income on Participation Fund Account Assets | 14.6 | 15.1 | 15.7 | ||||||||
Net Investment Income | $ | 2,481.2 | $ | 2,492.2 | $ | 2,506.9 |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars) | |||||||||||
Fixed Maturity Securities | |||||||||||
Gross Gains on Sales | $ | 23.8 | $ | 9.3 | $ | 15.8 | |||||
Gross Losses on Sales | (25.6 | ) | (7.5 | ) | (45.7 | ) | |||||
Other-Than-Temporary Impairment Loss | (32.4 | ) | (13.5 | ) | (0.8 | ) | |||||
Mortgage Loans and Other Invested Assets | |||||||||||
Gross Gains on Sales | 16.0 | 21.2 | 15.6 | ||||||||
Gross Losses on Sales | (0.1 | ) | (0.8 | ) | — | ||||||
Impairment Loss | (5.9 | ) | (3.4 | ) | (2.0 | ) | |||||
Embedded Derivative in Modified Coinsurance Arrangement | (37.7 | ) | 3.3 | 30.7 | |||||||
All Other Derivatives | 35.7 | 11.0 | (1.9 | ) | |||||||
Foreign Currency Transactions | (17.6 | ) | (3.5 | ) | (4.9 | ) | |||||
Net Realized Investment Gain (Loss) | $ | (43.8 | ) | $ | 16.1 | $ | 6.8 |
• | Interest rate swaps are used to hedge interest rate risks and to improve the matching of assets and liabilities. An interest rate swap is an agreement in which we agree with other parties to exchange, at specified intervals, the difference between fixed rate and variable rate interest amounts. We use interest rate swaps to hedge the anticipated purchase of fixed maturity securities thereby protecting us from the potential adverse impact of declining interest rates on the associated policy reserves. We also use interest rate swaps to hedge the potential adverse impact of rising interest rates in anticipation of issuing fixed rate long-term debt. |
• | Forward treasury locks are used to minimize interest rate risk associated with the anticipated purchase or disposal of fixed maturity securities. A forward treasury lock is a derivative contract without an initial investment where we and the counterparty agree to purchase or sell a specific U.S. Treasury bond at a future date at a pre-determined price. |
• | Options on U.S. Treasury rates are used to hedge the interest rate risk associated with the anticipated purchase of fixed maturity securities. These options give us the right, but not the obligation, to receive a specific interest rate for a specified period of time. These options enable us to lock in a minimum investment yield to hedge the potential adverse impact of declining interest rates. |
• | Interest rate swaps are used to effectively convert certain of our fixed rate securities into floating rate securities which are used to fund our floating rate long-term debt. Under these swap agreements, we receive a variable rate of interest and pay a fixed rate of interest. Additionally, we use interest rate swaps to effectively convert certain fixed rate, long-term debt into floating rate long-term debt. Under these swap agreements, we receive a fixed rate of interest and pay a variable rate of interest. |
• | Foreign currency interest rate swaps have historically been used to hedge the currency risk of certain foreign currency-denominated fixed maturity securities owned for portfolio diversification and to hedge the currency risk associated with certain of the principal and interest payments of the U.S. dollar-denominated debt issued by one of our U.K. subsidiaries. For hedges of fixed maturity securities, we agree to pay, at specified intervals, fixed rate foreign currency-denominated principal and interest payments in exchange for fixed rate payments in the functional currency of the operating segment. For hedges of debt issued, we paid, at specified intervals, fixed rate foreign currency-denominated principal and interest payments to the counterparty in exchange for fixed rate U.S. dollar-denominated principal and interest payments. |
• | Foreign currency interest rate swaps previously designated as hedges were used to hedge the currency risk of certain foreign currency-denominated fixed maturity securities owned for portfolio diversification. We agree to pay, at specified intervals, fixed rate foreign currency-denominated principal and interest payments in exchange for fixed rate payments in the functional currency of the operating segment. We hold offsetting swaps wherein we agree to pay fixed rate principal and interest payments in the functional currency of the operating segment in exchange for fixed rate foreign currency-denominated payments. |
• | Credit default swaps are used as economic hedges against credit risk but do not qualify for hedge accounting. A credit default swap is an agreement in which we agree with another party to pay, at specified intervals, a fixed-rate fee in exchange for insurance against a credit event on a specific investment. If a defined credit event occurs, our counterparty may either pay us a net cash settlement, or we may surrender the specific investment to them in exchange for cash equal to the full notional amount of the swap. Credit events typically include events such as bankruptcy, failure to pay, or certain types of debt restructuring. |
Swaps | |||||||||||||||||||||||||||
Receive Variable/Pay Fixed | Receive Fixed/Pay Fixed | Receive Fixed/Pay Variable | Credit Default | Forwards | Options | Total | |||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 174.0 | $ | 508.8 | $ | 750.0 | $ | — | $ | — | $ | — | $ | 1,432.8 | |||||||||||||
Additions | — | 160.0 | — | 97.0 | 24.0 | 10.0 | 291.0 | ||||||||||||||||||||
Terminations | 24.0 | 38.4 | 150.0 | — | 24.0 | 10.0 | 246.4 | ||||||||||||||||||||
Balance at December 31, 2013 | 150.0 | 630.4 | 600.0 | 97.0 | — | — | 1,477.4 | ||||||||||||||||||||
Additions | — | 250.1 | — | — | 68.0 | — | 318.1 | ||||||||||||||||||||
Terminations | — | 40.1 | — | — | 68.0 | — | 108.1 | ||||||||||||||||||||
Balance at December 31, 2014 | 150.0 | 840.4 | 600.0 | 97.0 | — | — | 1,687.4 | ||||||||||||||||||||
Additions | — | — | — | 2.0 | 94.0 | — | 96.0 | ||||||||||||||||||||
Terminations | — | 190.1 | — | 29.0 | 94.0 | — | 313.1 | ||||||||||||||||||||
Balance at December 31, 2015 | $ | 150.0 | $ | 650.3 | $ | 600.0 | $ | 70.0 | $ | — | $ | — | $ | 1,470.3 |
December 31, 2015 | |||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
(in millions of dollars) | |||||||||||
Designated as Hedging Instruments | |||||||||||
Interest Rate Swaps | Other L-T Investments | $ | 2.4 | Other Liabilities | $ | 12.3 | |||||
Foreign Exchange Contracts | Other L-T Investments | 47.4 | Other Liabilities | 6.0 | |||||||
Total | $ | 49.8 | $ | 18.3 | |||||||
Not Designated as Hedging Instruments | |||||||||||
Credit Default Swaps | Other Liabilities | $ | 0.3 | ||||||||
Foreign Exchange Contracts | Other Liabilities | 31.6 | |||||||||
Embedded Derivative in Modified Coinsurance Arrangement | Other Liabilities | 87.6 | |||||||||
Total | $ | 119.5 |
December 31, 2014 | |||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
(in millions of dollars) | |||||||||||
Designated as Hedging Instruments | |||||||||||
Interest Rate Swaps | Other L-T Investments | $ | 5.7 | Other Liabilities | $ | 20.8 | |||||
Foreign Exchange Contracts | Other L-T Investments | 22.3 | Other Liabilities | 39.6 | |||||||
Total | $ | 28.0 | $ | 60.4 | |||||||
Not Designated as Hedging Instruments | |||||||||||
Credit Default Swaps | Other Liabilities | $ | 1.2 | ||||||||
Foreign Exchange Contracts | Other Liabilities | 31.3 | |||||||||
Embedded Derivative in Modified Coinsurance Arrangement | Other Liabilities | 49.9 | |||||||||
Total | $ | 82.4 |
Year Ended December 31 | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
(in millions of dollars) | ||||||||||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives | ||||||||||||
Interest Rate Swaps and Forwards | $ | (0.7 | ) | $ | (0.1 | ) | $ | (7.2 | ) | |||
Options | — | — | (0.1 | ) | ||||||||
Foreign Exchange Contracts | 68.1 | 16.2 | 22.6 | |||||||||
Total | $ | 67.4 | $ | 16.1 | $ | 15.3 | ||||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | ||||||||||||
Net Investment Income | ||||||||||||
Interest Rate Swaps and Forwards | $ | 50.2 | $ | 47.8 | $ | 43.1 | ||||||
Foreign Exchange Contracts | (1.6 | ) | (4.2 | ) | (5.9 | ) | ||||||
Net Realized Investment Gain (Loss) | ||||||||||||
Interest Rate Swaps | 0.5 | 4.3 | 1.3 | |||||||||
Foreign Exchange Contracts | 36.1 | 6.9 | (13.8 | ) | ||||||||
Interest and Debt Expense | ||||||||||||
Interest Rate Swaps | (1.8 | ) | (1.8 | ) | (1.7 | ) | ||||||
Total | $ | 83.4 | $ | 53.0 | $ | 23.0 |
Year Ended December 31 | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
(in millions of dollars) | ||||||||||||
Net Realized Investment Gain (Loss) | ||||||||||||
Credit Default Swaps | $ | 0.1 | $ | (0.3 | ) | $ | (1.9 | ) | ||||
Foreign Exchange Contracts | (0.3 | ) | (1.8 | ) | — | |||||||
Embedded Derivative in Modified Coinsurance Arrangement | (37.7 | ) | 3.3 | 30.7 | ||||||||
Total | $ | (37.9 | ) | $ | 1.2 | $ | 28.8 |
Net Unrealized Gain on Securities | Net Gain on Cash Flow Hedges | Foreign Currency Translation Adjustment | Unrecognized Pension and Postretirement Benefit Costs | Total | |||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||
Balance at December 31, 2012 | $ | 873.5 | $ | 401.6 | $ | (72.6 | ) | $ | (574.5 | ) | $ | 628.0 | |||||||||
Other Comprehensive Income (Loss) Before Reclassifications | (746.4 | ) | 9.7 | 25.5 | 328.6 | (382.6 | ) | ||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | 8.6 | (15.0 | ) | — | 16.0 | 9.6 | |||||||||||||||
Net Other Comprehensive Income (Loss) | (737.8 | ) | (5.3 | ) | 25.5 | 344.6 | (373.0 | ) | |||||||||||||
Balance at December 31, 2013 | 135.7 | 396.3 | (47.1 | ) | (229.9 | ) | 255.0 | ||||||||||||||
Other Comprehensive Income (Loss) Before Reclassifications | 154.3 | 31.1 | (66.3 | ) | (216.1 | ) | (97.0 | ) | |||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | 0.3 | (36.4 | ) | — | 44.5 | 8.4 | |||||||||||||||
Net Other Comprehensive Income (Loss) | 154.6 | (5.3 | ) | (66.3 | ) | (171.6 | ) | (88.6 | ) | ||||||||||||
Balance at December 31, 2014 | 290.3 | 391.0 | (113.4 | ) | (401.5 | ) | 166.4 | ||||||||||||||
Other Comprehensive Income (Loss) Before Reclassifications | (114.7 | ) | 43.3 | (60.2 | ) | 1.3 | (130.3 | ) | |||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | 28.7 | (56.3 | ) | — | 7.6 | (20.0 | ) | ||||||||||||||
Net Other Comprehensive Income (Loss) | (86.0 | ) | (13.0 | ) | (60.2 | ) | 8.9 | (150.3 | ) | ||||||||||||
Balance at December 31, 2015 | $ | 204.3 | $ | 378.0 | $ | (173.6 | ) | $ | (392.6 | ) | $ | 16.1 |
December 31 | Change for the Year Ended December 31 | |||||||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2015 | 2014 | 2013 | ||||||||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||||||||||
Fixed Maturity Securities | $ | 3,695.7 | $ | 6,261.5 | $ | 4,054.8 | $ | 7,221.5 | $ | (2,565.8 | ) | $ | 2,206.7 | $ | (3,166.7 | ) | ||||||||||||
Other Investments | (33.7 | ) | 13.9 | 55.5 | 92.8 | (47.6 | ) | (41.6 | ) | (37.3 | ) | |||||||||||||||||
Deferred Acquisition Costs | (29.4 | ) | (50.8 | ) | (41.6 | ) | (67.0 | ) | 21.4 | (9.2 | ) | 25.4 | ||||||||||||||||
Reserves for Future Policy and Contract Benefits | (3,578.4 | ) | (6,150.3 | ) | (4,108.5 | ) | (6,277.5 | ) | 2,571.9 | (2,041.8 | ) | 2,169.0 | ||||||||||||||||
Reinsurance Recoverable | 263.2 | 365.0 | 263.8 | 351.5 | (101.8 | ) | 101.2 | (87.7 | ) | |||||||||||||||||||
Income Tax | (113.1 | ) | (149.0 | ) | (88.3 | ) | (447.8 | ) | 35.9 | (60.7 | ) | 359.5 | ||||||||||||||||
Total | $ | 204.3 | $ | 290.3 | $ | 135.7 | $ | 873.5 | $ | (86.0 | ) | $ | 154.6 | $ | (737.8 | ) |
Year Ended December 31 | ||||||||||||||
2015 | 2014 | 2013 | ||||||||||||
(in millions of dollars) | ||||||||||||||
Net Unrealized Gain on Securities | ||||||||||||||
Net Realized Investment Gain (Loss) | ||||||||||||||
Gain (Loss) on Sales of Securities and Other Invested Assets | $ | (12.2 | ) | $ | 12.6 | $ | (12.6 | ) | ||||||
Other-Than-Temporary Impairment Loss | (32.4 | ) | (13.5 | ) | (0.8 | ) | ||||||||
(44.6 | ) | (0.9 | ) | (13.4 | ) | |||||||||
Income Tax Benefit | (15.9 | ) | (0.6 | ) | (4.8 | ) | ||||||||
Total | $ | (28.7 | ) | $ | (0.3 | ) | $ | (8.6 | ) | |||||
Net Gain on Cash Flow Hedges | ||||||||||||||
Net Investment Income | ||||||||||||||
Gain on Interest Rate Swaps and Forwards | $ | 50.2 | $ | 47.8 | $ | 43.1 | ||||||||
Loss on Foreign Exchange Contracts | (1.6 | ) | (4.2 | ) | (5.9 | ) | ||||||||
Net Realized Investment Gain (Loss) | ||||||||||||||
Gain on Interest Rate Swaps | 0.5 | 4.3 | 1.3 | |||||||||||
Gain (Loss) on Foreign Exchange Contracts | 36.1 | 6.9 | (13.8 | ) | ||||||||||
Interest and Debt Expense | ||||||||||||||
Loss on Interest Rate Swaps | (1.8 | ) | (1.8 | ) | (1.7 | ) | ||||||||
83.4 | 53.0 | 23.0 | ||||||||||||
Income Tax Expense | 27.1 | 16.6 | 8.0 | |||||||||||
Total | $ | 56.3 | $ | 36.4 | $ | 15.0 | ||||||||
Unrecognized Pension and Postretirement Benefit Costs | ||||||||||||||
Other Expenses | ||||||||||||||
Amortization of Net Actuarial Loss | $ | (11.9 | ) | $ | (5.6 | ) | $ | (32.9 | ) | |||||
Amortization of Prior Service Credit | 0.3 | 1.7 | 5.0 | |||||||||||
Curtailment Gain | — | — | 3.0 | |||||||||||
Settlement Loss | — | (64.4 | ) | — | ||||||||||
(11.6 | ) | (68.3 | ) | (24.9 | ) | |||||||||
Income Tax Benefit | (4.0 | ) | (23.8 | ) | (8.9 | ) | ||||||||
Total | $ | (7.6 | ) | $ | (44.5 | ) | $ | (16.0 | ) |
2015 | 2014 | 2013 | |||||||||
(in millions of dollars) | |||||||||||
Balance at January 1 | $ | 24,194.0 | $ | 24,535.6 | $ | 24,567.1 | |||||
Less Reinsurance Recoverable | 2,066.9 | 2,072.8 | 2,006.0 | ||||||||
Net Balance at January 1 | 22,127.1 | 22,462.8 | 22,561.1 | ||||||||
Incurred Related to | |||||||||||
Current Year | 5,058.1 | 4,851.5 | 4,751.9 | ||||||||
Prior Years | |||||||||||
Interest | 1,177.6 | 1,214.7 | 1,230.0 | ||||||||
All Other Incurred | (111.6 | ) | (13.5 | ) | (44.7 | ) | |||||
Foreign Currency | (119.5 | ) | (138.7 | ) | 41.2 | ||||||
Total Incurred | 6,004.6 | 5,914.0 | 5,978.4 | ||||||||
Paid Related to | |||||||||||
Current Year | (1,853.7 | ) | (1,702.3 | ) | (1,657.3 | ) | |||||
Prior Years | (4,546.5 | ) | (4,547.4 | ) | (4,419.4 | ) | |||||
Total Paid | (6,400.2 | ) | (6,249.7 | ) | (6,076.7 | ) | |||||
Net Balance at December 31 | 21,731.5 | 22,127.1 | 22,462.8 | ||||||||
Plus Reinsurance Recoverable | 2,064.6 | 2,066.9 | 2,072.8 | ||||||||
Balance at December 31 | $ | 23,796.1 | $ | 24,194.0 | $ | 24,535.6 |
December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars) | |||||||||||
Policy and Contract Benefits | $ | 1,484.6 | $ | 1,529.3 | $ | 1,511.0 | |||||
Reserves for Future Policy and Contract Benefits | 43,540.6 | 45,929.4 | 43,099.1 | ||||||||
Total | 45,025.2 | 47,458.7 | 44,610.1 | ||||||||
Less: | |||||||||||
Life Reserves for Future Policy and Contract Benefits | 7,946.3 | 7,850.9 | 7,740.5 | ||||||||
Accident and Health Active Life Reserves | 9,704.4 | 9,263.5 | 8,225.5 | ||||||||
Adjustment Related to Unrealized Investment Gains and Losses | 3,578.4 | 6,150.3 | 4,108.5 | ||||||||
Liability for Unpaid Claims and Claim Adjustment Expenses | $ | 23,796.1 | $ | 24,194.0 | $ | 24,535.6 |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars) | |||||||||||
Net Income | $ | 371.2 | $ | 139.9 | $ | 373.0 | |||||
Stockholders' Equity - Additional Paid-in Capital | |||||||||||
Stock-Based Compensation | (3.6 | ) | (3.0 | ) | (0.8 | ) | |||||
Stockholders' Equity - Accumulated Other Comprehensive Income | |||||||||||
Change in Net Unrealized Gain on Securities Before Adjustment | (892.5 | ) | 725.8 | (1,102.8 | ) | ||||||
Change in Adjustment to Deferred Acquisition Costs and Reserves for Future Policy and Contract Benefits, Net of Reinsurance | 856.6 | (665.1 | ) | 743.3 | |||||||
Change in Net Gain on Cash Flow Hedges | (4.3 | ) | (2.0 | ) | (1.3 | ) | |||||
Change in Foreign Currency Translation Adjustment | (0.1 | ) | — | — | |||||||
Change in Unrecognized Pension and Postretirement Benefit Costs | 3.2 | (92.4 | ) | 185.2 | |||||||
Total | $ | 330.5 | $ | 103.2 | $ | 196.6 |
Year Ended December 31 | ||||||||
2015 | 2014 | 2013 | ||||||
Statutory Income Tax | 35.0 | % | 35.0 | % | 35.0 | % | ||
Foreign Rate Differential, Inclusive of Foreign Rate Changes | (2.5 | ) | (4.0 | ) | (1.8 | ) | ||
Tax Credits | (1.4 | ) | (4.5 | ) | (1.9 | ) | ||
Other Items, Net | (1.1 | ) | (0.7 | ) | (0.7 | ) | ||
Effective Tax | 30.0 | % | 25.8 | % | 30.6 | % |
December 31 | |||||||
2015 | 2014 | ||||||
(in millions of dollars) | |||||||
Deferred Tax Liability | |||||||
Deferred Acquisition Costs | $ | 140.4 | $ | 97.4 | |||
Fixed Assets | 87.1 | 95.6 | |||||
Invested Assets | 1,128.4 | 1,982.8 | |||||
Other | 55.4 | 64.6 | |||||
Gross Deferred Tax Liability | 1,411.3 | 2,240.4 | |||||
Deferred Tax Asset | |||||||
Reserves | 1,060.5 | 1,919.2 | |||||
Employee Benefits | 246.0 | 254.0 | |||||
Other | 14.3 | 5.2 | |||||
Gross Deferred Tax Asset | 1,320.8 | 2,178.4 | |||||
Less: Valuation Allowance | 1.3 | — | |||||
Net Deferred Tax Asset | 1,319.5 | 2,178.4 | |||||
Net Deferred Tax Liability | $ | 91.8 | $ | 62.0 |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars) | |||||||||||
Income Before Tax | |||||||||||
United States - Federal | $ | 1,057.8 | $ | 391.7 | $ | 1,086.8 | |||||
Foreign | 180.5 | 150.3 | 133.2 | ||||||||
Total | $ | 1,238.3 | $ | 542.0 | $ | 1,220.0 | |||||
Current Tax Expense (Benefit) | |||||||||||
United States - Federal | $ | 280.5 | $ | 160.6 | $ | 309.8 | |||||
Foreign | 61.6 | (25.1 | ) | 18.7 | |||||||
Total | 342.1 | 135.5 | 328.5 | ||||||||
Deferred Tax Expense (Benefit) | |||||||||||
United States - Federal | 56.9 | (50.5 | ) | 41.3 | |||||||
Foreign | (27.8 | ) | 54.9 | 3.2 | |||||||
Total | 29.1 | 4.4 | 44.5 | ||||||||
Total | $ | 371.2 | $ | 139.9 | $ | 373.0 |
December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars) | |||||||||||
Balance at Beginning of Year | $ | 19.8 | $ | 18.4 | $ | 17.5 | |||||
Additions to Tax Positions Taken During Prior Years | — | 1.7 | 5.7 | ||||||||
Settlements with Tax Authorities | (19.0 | ) | (0.6 | ) | (4.8 | ) | |||||
Tax Positions Taken During Current Year | — | 0.3 | — | ||||||||
Balance at End of Year | 0.8 | 19.8 | 18.4 | ||||||||
Less Tax Attributable to Temporary Items Included Above | — | (10.4 | ) | (10.2 | ) | ||||||
Total Unrecognized Tax Benefits That if Recognized Would Affect the Effective Tax Rate | $ | 0.8 | $ | 9.4 | $ | 8.2 |
December 31 | |||||||||||
2015 | 2014 | ||||||||||
Interest Rates | Maturities | (in millions of dollars) | |||||||||
Long-term Debt | |||||||||||
Senior Secured Notes issued 2007 | Variable | 2037 | $ | 324.0 | $ | 398.4 | |||||
Senior Notes issued 1998 | 7.000% | 2018 | 200.0 | 200.0 | |||||||
Senior Notes issued 1998 | 6.750 - 7.250% | 2028 | 365.8 | 365.8 | |||||||
Senior Notes issued 2002 | 7.375% | 2032 | 39.5 | 39.5 | |||||||
Senior Notes issued 2009 | 7.125% | 2016 | — | 350.0 | |||||||
Senior Notes issued 2010 | 5.625% | 2020 | 399.8 | 399.7 | |||||||
Senior Notes issued 2012 | 5.750% | 2042 | 248.7 | 248.7 | |||||||
Senior Notes issued 2014 | 4.000% | 2024 | 349.5 | 349.5 | |||||||
Senior Notes issued 2015 | 3.875% | 2025 | 273.2 | — | |||||||
Medium-term Notes issued 1990 - 1996 | 7.000 - 7.190% | 2023 - 2028 | 50.8 | 50.8 | |||||||
Junior Subordinated Debt Securities issued 1998 | 7.405% | 2038 | 226.5 | 226.5 | |||||||
Fair Value Hedges Adjustment | (2.7 | ) | (0.2 | ) | |||||||
Total Long-term Debt | 2,475.1 | 2,628.7 | |||||||||
Short-term Debt | |||||||||||
Senior Notes issued 2005 | 6.850% | 2015 | — | 151.9 | |||||||
Senior Notes issued 2009 | 7.125% | 2016 | 350.0 | — | |||||||
Fair Value Hedges Adjustment | 2.4 | — | |||||||||
Total Short-term Debt | 352.4 | 151.9 | |||||||||
Total Debt | $ | 2,827.5 | $ | 2,780.6 |
Pension Benefits | |||||||||||||||||||||||
U.S. Plans | U.K. Plan | OPEB | |||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Change in Benefit Obligation | |||||||||||||||||||||||
Benefit Obligation at Beginning of Year | $ | 1,892.6 | $ | 1,718.7 | $ | 226.9 | $ | 208.7 | $ | 173.9 | $ | 165.3 | |||||||||||
Service Cost | 3.8 | 3.7 | — | 2.3 | — | 0.3 | |||||||||||||||||
Interest Cost | 82.2 | 89.9 | 7.9 | 9.1 | 7.2 | 7.9 | |||||||||||||||||
Plan Participant Contributions | — | — | — | — | 4.6 | 4.1 | |||||||||||||||||
Actuarial (Gain) Loss | (103.6 | ) | 343.5 | (14.7 | ) | 25.2 | (9.1 | ) | 12.9 | ||||||||||||||
Benefits and Expenses Paid | (59.3 | ) | (48.7 | ) | (4.6 | ) | (4.3 | ) | (16.2 | ) | (16.6 | ) | |||||||||||
Settlements | — | (214.5 | ) | — | — | — | — | ||||||||||||||||
Plan Amendment | (7.5 | ) | — | — | — | — | — | ||||||||||||||||
Change in Foreign Exchange Rates | — | — | (11.7 | ) | (14.1 | ) | — | — | |||||||||||||||
Benefit Obligation at End of Year | $ | 1,808.2 | $ | 1,892.6 | $ | 203.8 | $ | 226.9 | $ | 160.4 | $ | 173.9 | |||||||||||
Accumulated Benefit Obligation at December 31 | $ | 1,808.2 | $ | 1,892.6 | $ | 194.8 | $ | 215.3 | N/A | N/A | |||||||||||||
Change in Fair Value of Plan Assets | |||||||||||||||||||||||
Fair Value of Plan Assets at Beginning of Year | $ | 1,473.7 | $ | 1,590.7 | $ | 246.3 | $ | 225.7 | $ | 11.3 | $ | 11.4 | |||||||||||
Actual Return on Plan Assets | (17.5 | ) | 140.9 | 2.9 | 37.8 | 0.3 | 0.4 | ||||||||||||||||
Employer Contributions | 6.4 | 5.3 | — | 2.3 | 11.2 | 12.0 | |||||||||||||||||
Plan Participant Contributions | — | — | — | — | 4.6 | 4.1 | |||||||||||||||||
Benefits and Expenses Paid | (59.3 | ) | (48.7 | ) | (4.6 | ) | (4.3 | ) | (16.2 | ) | (16.6 | ) | |||||||||||
Settlements | — | (214.5 | ) | — | — | — | — | ||||||||||||||||
Change in Foreign Exchange Rates | — | — | (13.1 | ) | (15.2 | ) | — | — | |||||||||||||||
Fair Value of Plan Assets at End of Year | $ | 1,403.3 | $ | 1,473.7 | $ | 231.5 | $ | 246.3 | $ | 11.2 | $ | 11.3 | |||||||||||
Underfunded (Overfunded) Status | $ | 404.9 | $ | 418.9 | $ | (27.7 | ) | $ | (19.4 | ) | $ | 149.2 | $ | 162.6 |
Pension Benefits | |||||||||||||||||||||||
U.S. Plans | U.K. Plan | OPEB | |||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Current Liability | $ | 5.9 | $ | 5.4 | $ | — | $ | — | $ | 13.0 | $ | 13.7 | |||||||||||
Noncurrent Liability | 399.0 | 413.5 | — | — | 136.2 | 148.9 | |||||||||||||||||
Noncurrent Asset | — | — | (27.7 | ) | (19.4 | ) | — | — | |||||||||||||||
Underfunded (Overfunded) Status | $ | 404.9 | $ | 418.9 | $ | (27.7 | ) | $ | (19.4 | ) | $ | 149.2 | $ | 162.6 | |||||||||
Unrecognized Pension and Postretirement Benefit Costs | |||||||||||||||||||||||
Net Actuarial Gain (Loss) | $ | (604.2 | ) | $ | (593.0 | ) | $ | (28.1 | ) | $ | (35.4 | ) | $ | 6.2 | $ | (2.6 | ) | ||||||
Prior Service Credit | 7.5 | — | — | — | 0.4 | 0.7 | |||||||||||||||||
(596.7 | ) | (593.0 | ) | (28.1 | ) | (35.4 | ) | 6.6 | (1.9 | ) | |||||||||||||
Income Tax | 208.8 | 207.5 | 8.9 | 10.4 | 7.9 | 10.9 | |||||||||||||||||
Total Included in Accumulated Other Comprehensive Income (Loss) | $ | (387.9 | ) | $ | (385.5 | ) | $ | (19.2 | ) | $ | (25.0 | ) | $ | 14.5 | $ | 9.0 |
Pension Benefits | |||||||||||||||||||||||
U.S. Plans | U.K. Plan | OPEB | |||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) at Beginning of Year | $ | (385.5 | ) | $ | (222.4 | ) | $ | (25.0 | ) | $ | (26.0 | ) | $ | 9.0 | $ | 18.5 | |||||||
Net Actuarial Gain (Loss) | |||||||||||||||||||||||
Amortization | 11.6 | 5.2 | 0.3 | 0.4 | — | — | |||||||||||||||||
Settlements | — | 64.4 | — | — | — | — | |||||||||||||||||
All Other Changes | (22.8 | ) | (320.5 | ) | 7.0 | 1.1 | 8.8 | (12.9 | ) | ||||||||||||||
Prior Service Credit (Cost) | |||||||||||||||||||||||
Amortization | — | — | — | — | (0.3 | ) | (1.7 | ) | |||||||||||||||
Plan Amendment | 7.5 | — | — | — | — | — | |||||||||||||||||
Change in Income Tax | 1.3 | 87.8 | (1.5 | ) | (0.5 | ) | (3.0 | ) | 5.1 | ||||||||||||||
Accumulated Other Comprehensive Income (Loss) at End of Year | $ | (387.9 | ) | $ | (385.5 | ) | $ | (19.2 | ) | $ | (25.0 | ) | $ | 14.5 | $ | 9.0 |
Asset Class | Asset Type | Benchmark Indices | ||
Equity Securities | Collective fund; Individual holdings | Standard & Poor's 400 and 500 Midcap; Russell 2000 Value and Growth; Morgan Stanley Capital International (MSCI) All Country World Excluding U.S.; MSCI Europe Australasia Far East; and MSCI Emerging Markets | ||
Fixed Income; Opportunistic Credits | Collective fund; Individual holdings | Custom Index | ||
Real Estate | Collective fund | National Council of Real Estate Investment Fund Open-end Diversified Core Equity Index | ||
Alternative Investments (Hedge and Private Equity) | Fund of funds; Direct investments | Hedge Fund Research Institute Fund of Funds; Russell 2000 |
December 31, 2015 | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
(in millions of dollars) | |||||||||||||||
Invested Assets | |||||||||||||||
Equity Securities: | |||||||||||||||
U.S. Large Cap | $ | — | $ | 176.2 | $ | — | $ | 176.2 | |||||||
U.S. Mid Cap | — | 55.0 | — | 55.0 | |||||||||||
U.S. Small Cap | 56.9 | — | — | 56.9 | |||||||||||
International | 63.7 | 62.9 | — | 126.6 | |||||||||||
Emerging Markets | — | 35.5 | — | 35.5 | |||||||||||
Fixed Income Securities: | |||||||||||||||
U.S. Government and Agencies | 231.5 | 12.8 | — | 244.3 | |||||||||||
Corporate | — | 291.4 | — | 291.4 | |||||||||||
State and Municipal Securities | — | 2.1 | — | 2.1 | |||||||||||
Opportunistic Credits | — | 163.5 | — | 163.5 | |||||||||||
Real Estate | — | 83.5 | — | 83.5 | |||||||||||
Alternative Investments: | |||||||||||||||
Private Equity Direct Investments | — | — | 30.4 | 30.4 | |||||||||||
Private Equity Funds of Funds | — | — | 35.3 | 35.3 | |||||||||||
Hedge Funds of Funds | — | — | 70.9 | 70.9 | |||||||||||
Cash Equivalents | 28.0 | — | — | 28.0 | |||||||||||
Total Invested Assets | $ | 380.1 | $ | 882.9 | $ | 136.6 | $ | 1,399.6 |
December 31, 2014 | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
(in millions of dollars) | |||||||||||||||
Invested Assets | |||||||||||||||
Equity Securities: | |||||||||||||||
U.S. Large Cap | $ | — | $ | 181.4 | $ | — | $ | 181.4 | |||||||
U.S. Mid Cap | — | 88.3 | — | 88.3 | |||||||||||
U.S. Small Cap | 118.7 | — | — | 118.7 | |||||||||||
International | 71.0 | 63.5 | — | 134.5 | |||||||||||
Emerging Markets | — | 40.0 | — | 40.0 | |||||||||||
Fixed Income Securities: | |||||||||||||||
U.S. Government and Agencies | 243.5 | 14.6 | — | 258.1 | |||||||||||
Corporate | 1.6 | 321.2 | — | 322.8 | |||||||||||
State and Municipal Securities | — | 2.9 | — | 2.9 | |||||||||||
Opportunistic Credits | 62.8 | 85.0 | — | 147.8 | |||||||||||
Alternative Investments: | |||||||||||||||
Private Equity Direct Investments | — | — | 17.2 | 17.2 | |||||||||||
Private Equity Funds of Funds | — | — | 34.9 | 34.9 | |||||||||||
Hedge Funds of Funds | — | — | 70.0 | 70.0 | |||||||||||
Cash Equivalents | 52.8 | — | — | 52.8 | |||||||||||
Total Invested Assets | $ | 550.4 | $ | 796.9 | $ | 122.1 | $ | 1,469.4 |
Year Ended December 31, 2015 | |||||||||||||||||||||||||||||||
Beginning of Year | Actual Return on Plan Assets | Purchases | Sales | Level 3 Transfers | End of Year | ||||||||||||||||||||||||||
Held at Year End | Sold During the Year | Into | Out of | ||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||
Private Equity Direct Investments | $ | 17.2 | $ | 4.2 | $ | (0.2 | ) | $ | 11.9 | $ | (2.7 | ) | $ | — | $ | — | $ | 30.4 | |||||||||||||
Private Equity Funds of Funds | 34.9 | 2.5 | 2.0 | 2.4 | (6.5 | ) | — | — | 35.3 | ||||||||||||||||||||||
Hedge Funds of Funds | 70.0 | 1.1 | (0.2 | ) | 0.2 | (0.2 | ) | — | — | 70.9 | |||||||||||||||||||||
Total | $ | 122.1 | $ | 7.8 | $ | 1.6 | $ | 14.5 | $ | (9.4 | ) | $ | — | $ | — | $ | 136.6 |
Year Ended December 31, 2014 | |||||||||||||||||||||||||||||||
Beginning of Year | Actual Return on Plan Assets | Purchases | Sales | Level 3 Transfers | End of Year | ||||||||||||||||||||||||||
Held at Year End | Sold During the Year | Into | Out of | ||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||
Private Equity Direct Investments | $ | 7.2 | $ | 1.7 | $ | 0.1 | $ | 9.0 | $ | (0.8 | ) | $ | — | $ | — | $ | 17.2 | ||||||||||||||
Private Equity Funds of Funds | 29.6 | 4.8 | 2.6 | 3.9 | (6.0 | ) | — | — | 34.9 | ||||||||||||||||||||||
Hedge Funds of Funds | 66.9 | 3.2 | (0.1 | ) | 25.9 | (25.9 | ) | — | — | 70.0 | |||||||||||||||||||||
Total | $ | 103.7 | $ | 9.7 | $ | 2.6 | $ | 38.8 | $ | (32.7 | ) | $ | — | $ | — | $ | 122.1 |
December 31, 2015 | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
(in millions of dollars) | |||||||||||||||
Plan Assets | |||||||||||||||
Diversified Growth Assets | $ | — | $ | 156.3 | $ | — | $ | 156.3 | |||||||
Fixed Interest and Index-linked Securities | 62.2 | 5.3 | — | 67.5 | |||||||||||
Cash Equivalents | 7.7 | — | — | 7.7 | |||||||||||
Total Plan Assets | $ | 69.9 | $ | 161.6 | $ | — | $ | 231.5 |
December 31, 2014 | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
(in millions of dollars) | |||||||||||||||
Plan Assets | |||||||||||||||
Diversified Growth Assets | $ | — | $ | 167.6 | $ | — | $ | 167.6 | |||||||
Fixed Interest and Index-linked Securities | 78.0 | — | — | 78.0 | |||||||||||
Cash Equivalents | 0.7 | — | — | 0.7 | |||||||||||
Total Plan Assets | $ | 78.7 | $ | 167.6 | $ | — | $ | 246.3 |
December 31, 2015 | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
(in millions of dollars) | |||||||||||||||
Assets | |||||||||||||||
Life Insurance Contracts | $ | — | $ | — | $ | 11.2 | $ | 11.2 |
December 31, 2014 | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
(in millions of dollars) | |||||||||||||||
Assets | |||||||||||||||
Life Insurance Contracts | $ | — | $ | — | $ | 11.3 | $ | 11.3 |
Year Ended December 31, 2015 | |||||||||||||||||||
Beginning of Year | Actual Return on Plan Assets | Contributions | Net Benefits and Expenses Paid | End of Year | |||||||||||||||
(in millions of dollars) | |||||||||||||||||||
Life Insurance Contracts | $ | 11.3 | $ | 0.3 | $ | 15.8 | $ | (16.2 | ) | $ | 11.2 |
Year Ended December 31, 2014 | |||||||||||||||||||
Beginning of Year | Actual Return on Plan Assets | Contributions | Net Benefits and Expenses Paid | End of Year | |||||||||||||||
(in millions of dollars) | |||||||||||||||||||
Life Insurance Contracts | $ | 11.4 | $ | 0.4 | $ | 16.1 | $ | (16.6 | ) | $ | 11.3 |
Pension Benefits | |||||||||||||||||
U.S. Plans | U.K. Plan | OPEB | |||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Benefit Obligations | |||||||||||||||||
Discount Rate | 4.80 | % | 4.40 | % | 3.80 | % | 3.60 | % | 4.70 | % | 4.30 | % | |||||
Rate of Compensation Increase | N/A | N/A | 3.60 | % | 3.60 | % | N/A | N/A | |||||||||
Net Periodic Benefit Cost | |||||||||||||||||
Discount Rate | 4.40 | % | 5.30 | % | 3.60 | % | 4.40 | % | 4.30 | % | 5.00 | % | |||||
Expected Return on Plan Assets | 7.50 | % | 7.50 | % | 5.20 | % | 6.10 | % | 5.75 | % | 5.75 | % | |||||
Rate of Compensation Increase | N/A | N/A | 3.60 | % | 3.90 | % | N/A | N/A |
Pension Benefits | |||||||||||||||||||||||||||||||||||
U.S. Plans | U.K. Plan | OPEB | |||||||||||||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||
Service Cost | $ | 3.8 | $ | 3.7 | $ | 59.4 | $ | — | $ | 2.3 | $ | 4.3 | $ | — | $ | 0.3 | $ | 0.7 | |||||||||||||||||
Interest Cost | 82.2 | 89.9 | 86.3 | 7.9 | 9.1 | 8.6 | 7.2 | 7.9 | 8.0 | ||||||||||||||||||||||||||
Expected Return on Plan Assets | (108.9 | ) | (117.8 | ) | (105.5 | ) | (12.4 | ) | (13.7 | ) | (12.5 | ) | (0.7 | ) | (0.7 | ) | (0.6 | ) | |||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||||
Net Actuarial Loss | 11.6 | 5.2 | 31.7 | 0.3 | 0.4 | 1.2 | — | — | — | ||||||||||||||||||||||||||
Prior Service Credit | — | — | (0.1 | ) | — | — | — | (0.3 | ) | (1.7 | ) | (4.9 | ) | ||||||||||||||||||||||
Curtailment | — | — | 0.7 | — | — | (3.7 | ) | — | — | — | |||||||||||||||||||||||||
Settlement | — | 64.4 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Total Net Periodic Benefit Cost | $ | (11.3 | ) | $ | 45.4 | $ | 72.5 | $ | (4.2 | ) | $ | (1.9 | ) | $ | (2.1 | ) | $ | 6.2 | $ | 5.8 | $ | 3.2 |
Pension Benefits | |||||||||||||||||||
U.S. Plans | U.K. Plan | OPEB | |||||||||||||||||
(in millions of dollars) | |||||||||||||||||||
Year | Gross | Subsidy Payments | Net | ||||||||||||||||
2016 | $ | 66.3 | $ | 5.3 | $ | 15.3 | $ | 1.9 | $ | 13.4 | |||||||||
2017 | 68.7 | 5.6 | 15.0 | 2.1 | 12.9 | ||||||||||||||
2018 | 71.9 | 5.9 | 14.7 | 2.3 | 12.4 | ||||||||||||||
2019 | 74.9 | 5.9 | 14.4 | 2.5 | 11.9 | ||||||||||||||
2020 | 79.1 | 6.5 | 14.0 | 2.7 | 11.3 | ||||||||||||||
2021-2025 | 452.7 | 37.7 | 62.7 | 15.2 | 47.5 |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars, except share data) | |||||||||||
Numerator | |||||||||||
Net Income | $ | 867.1 | $ | 402.1 | $ | 847.0 | |||||
Denominator (000s) | |||||||||||
Weighted Average Common Shares - Basic | 246,986.7 | 255,525.9 | 264,725.8 | ||||||||
Dilution for Assumed Exercises of Stock Options and Nonvested Stock Awards | 868.0 | 1,126.9 | 1,223.4 | ||||||||
Weighted Average Common Shares - Assuming Dilution | 247,854.7 | 256,652.8 | 265,949.2 | ||||||||
Net Income Per Common Share | |||||||||||
Basic | $ | 3.51 | $ | 1.57 | $ | 3.20 | |||||
Assuming Dilution | $ | 3.50 | $ | 1.57 | $ | 3.19 |
Share Repurchase Program Authorized During | |||||||||||
May 2015 | December 2013 | July 2012 | |||||||||
(in millions of dollars) | |||||||||||
Authorized Repurchase Amount | $ | 750.0 | $ | 750.0 | $ | 750.0 | |||||
Remaining Repurchase Amount at Year End 2015 | $ | 502.3 | $ | — | $ | — |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions) | |||||||||||
Shares Repurchased | 12.3 | 8.7 | 11.2 | ||||||||
Cost of Shares Repurchased (1) | $ | 426.7 | $ | 300.6 | $ | 318.6 |
Weighted Average | ||||||
Shares | Grant Date | |||||
(000s) | Fair Value | |||||
Outstanding at December 31, 2014 | 281 | $ | 30.83 | |||
Granted | 226 | 35.13 | ||||
Vested | (120 | ) | 25.26 | |||
Forfeited | (4 | ) | 35.03 | |||
Outstanding at December 31, 2015 | 383 | 35.05 |
Year Ended December 31 | ||||||||
2015 | 2014 | 2013 | ||||||
Expected Volatility (based on our and our peer group historical daily stock prices) | 22 | % | 31 | % | 35 | % | ||
Expected Life (equals the performance period) | 3.0 years | 3.0 years | 3.0 years | |||||
Risk Free Interest Rate (based on U.S. Treasury yields at the date of grant) | 0.91 | % | 0.65 | % | 0.38 | % |
Weighted Average | ||||||
Shares | Grant Date | |||||
(000s) | Fair Value | |||||
Outstanding at December 31, 2014 | 1,081 | $ | 28.41 | |||
Granted | 576 | 34.08 | ||||
Vested | (762 | ) | 28.12 | |||
Forfeited | (29 | ) | 31.83 | |||
Outstanding at December 31, 2015 | 866 | 32.40 |
Weighted Average | ||||||
Shares | Grant Date | |||||
(000s) | Fair Value | |||||
Outstanding at December 31, 2014 | 123 | $ | 27.31 | |||
Granted | 46 | 33.92 | ||||
Vested | (169 | ) | 29.11 | |||
Outstanding at December 31, 2015 | — | — |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars, except per unit data) | |||||||||||
Weighted Average Grant Date Fair Value per Unit Granted | $ | 33.92 | $ | 33.85 | $ | 24.22 | |||||
Total Fair Value of Units Vested | $ | 4.9 | $ | 2.1 | $ | 2.4 | |||||
Total Fair Value of Units Paid | $ | 2.5 | $ | 2.9 | $ | 2.5 |
Remaining | Intrinsic | |||||||||||
Shares | Weighted Average | Contractual Term | Value | |||||||||
(000s) | Exercise Price | (in years) | (in millions) | |||||||||
Outstanding at December 31, 2014 | 999 | $ | 20.23 | |||||||||
Exercised | (240 | ) | 11.37 | |||||||||
Outstanding at December 31, 2015 | 759 | 23.02 | 3.2 | $ | 7.8 | |||||||
Exercisable at December 31, 2015 | 744 | $ | 23.00 | 3.1 | $ | 7.7 |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars) | |||||||||||
Total Intrinsic Value of Options Exercised | $ | 5.6 | $ | 4.0 | $ | 4.4 | |||||
Total Fair Value of Options Vested | $ | 1.1 | $ | 2.4 | $ | 2.4 |
Year Ended December 31 | |||
2013 | |||
Weighted Average Grant Date Fair Value per Option | $ | 9.77 | |
Expected Volatility (based on historical daily stock prices) | 52 | % | |
Expected Life (based on historical average years to exercise) | 6.0 years | ||
Expected Dividend Yield (based on the dividend rate at the date of grant) | 2.14 | % | |
Risk Free Interest Rate (based on U.S. Treasury yields at the date of grant) | 1.12 | % |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars) | |||||||||||
Performance Share Units | $ | 4.5 | $ | 2.5 | $ | 1.1 | |||||
Restricted Stock Units and Cash-Settled Awards | 18.6 | 19.0 | 21.0 | ||||||||
Stock Options | 0.2 | 0.6 | 1.0 | ||||||||
Other | 0.5 | 0.5 | 0.5 | ||||||||
Total Compensation Expense, Before Income Tax | $ | 23.8 | $ | 22.6 | $ | 23.6 | |||||
Total Compensation Expense, Net of Income Tax | $ | 15.7 | $ | 14.9 | $ | 15.6 |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars) | |||||||||||
Direct Premium Income | $ | 8,151.9 | $ | 7,899.3 | $ | 7,777.3 | |||||
Reinsurance Assumed | 202.8 | 189.8 | 203.2 | ||||||||
Reinsurance Ceded | (272.3 | ) | (291.9 | ) | (355.8 | ) | |||||
Net Premium Income | $ | 8,082.4 | $ | 7,797.2 | $ | 7,624.7 | |||||
Ceded Benefits and Change in Reserves for Future Benefits | $ | 662.7 | $ | 662.7 | $ | 728.7 |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars) | |||||||||||
Premium Income | |||||||||||
Unum US | |||||||||||
Group Disability | |||||||||||
Group Long-term Disability | $ | 1,644.7 | $ | 1,553.5 | $ | 1,553.9 | |||||
Group Short-term Disability | 607.4 | 558.1 | 519.6 | ||||||||
Group Life and Accidental Death & Dismemberment | |||||||||||
Group Life | 1,347.4 | 1,262.3 | 1,213.9 | ||||||||
Accidental Death & Dismemberment | 131.7 | 125.9 | 121.6 | ||||||||
Supplemental and Voluntary | |||||||||||
Individual Disability | 478.9 | 466.1 | 465.3 | ||||||||
Voluntary Benefits | 749.9 | 693.8 | 642.8 | ||||||||
4,960.0 | 4,659.7 | 4,517.1 | |||||||||
Unum UK | |||||||||||
Group Long-term Disability | 397.4 | 418.9 | 389.9 | ||||||||
Group Life | 121.5 | 133.2 | 106.4 | ||||||||
Supplemental | 57.3 | 55.1 | 60.3 | ||||||||
576.2 | 607.2 | 556.6 | |||||||||
Colonial Life | |||||||||||
Accident, Sickness, and Disability | 789.0 | 759.8 | 738.7 | ||||||||
Life | 252.4 | 231.8 | 221.1 | ||||||||
Cancer and Critical Illness | 297.2 | 282.1 | 272.4 | ||||||||
1,338.6 | 1,273.7 | 1,232.2 | |||||||||
Closed Block | |||||||||||
Individual Disability | 572.4 | 624.8 | 687.5 | ||||||||
Long-term Care | 633.5 | 630.9 | 630.6 | ||||||||
All Other | 1.7 | 0.9 | 0.7 | ||||||||
1,207.6 | 1,256.6 | 1,318.8 | |||||||||
Total Premium Income | $ | 8,082.4 | $ | 7,797.2 | $ | 7,624.7 |
Unum US | Unum UK | Colonial Life | Closed Block | Corporate | Total | ||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Year Ended December 31, 2015 | |||||||||||||||||||||||
Premium Income | $ | 4,960.0 | $ | 576.2 | $ | 1,338.6 | $ | 1,207.6 | $ | — | $ | 8,082.4 | |||||||||||
Net Investment Income | 865.3 | 124.9 | 145.4 | 1,320.0 | 25.6 | 2,481.2 | |||||||||||||||||
Other Income | 119.2 | — | 0.1 | 89.3 | 2.9 | 211.5 | |||||||||||||||||
Operating Revenue | $ | 5,944.5 | $ | 701.1 | $ | 1,484.1 | $ | 2,616.9 | $ | 28.5 | $ | 10,775.1 | |||||||||||
Operating Income (Loss) | $ | 850.0 | $ | 140.6 | $ | 309.1 | $ | 119.1 | $ | (124.8 | ) | $ | 1,294.0 | ||||||||||
Interest and Debt Expense | $ | — | $ | — | $ | — | $ | 6.6 | $ | 146.2 | $ | 152.8 | |||||||||||
Depreciation and Amortization | $ | 347.0 | $ | 18.0 | $ | 214.6 | $ | 6.6 | $ | 0.9 | $ | 587.1 | |||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||
Premium Income | $ | 4,659.7 | $ | 607.2 | $ | 1,273.7 | $ | 1,256.6 | $ | — | $ | 7,797.2 | |||||||||||
Net Investment Income | 878.9 | 151.0 | 145.5 | 1,281.5 | 35.3 | 2,492.2 | |||||||||||||||||
Other Income | 122.1 | — | 0.1 | 91.8 | 5.0 | 219.0 | |||||||||||||||||
Operating Revenue | $ | 5,660.7 | $ | 758.2 | $ | 1,419.3 | $ | 2,629.9 | $ | 40.3 | $ | 10,508.4 | |||||||||||
Operating Income (Loss) | $ | 844.9 | $ | 147.8 | $ | 299.0 | $ | 120.0 | $ | (104.4 | ) | $ | 1,307.3 | ||||||||||
Interest and Debt Expense Excluding Costs Related to Early Retirement of Debt | $ | — | $ | — | $ | — | $ | 7.3 | $ | 147.0 | $ | 154.3 | |||||||||||
Depreciation and Amortization | $ | 314.2 | $ | 19.2 | $ | 194.1 | $ | 5.9 | $ | 1.0 | $ | 534.4 | |||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||
Premium Income | $ | 4,517.1 | $ | 556.6 | $ | 1,232.2 | $ | 1,318.8 | $ | — | $ | 7,624.7 | |||||||||||
Net Investment Income | 919.4 | 148.5 | 144.1 | 1,270.2 | 24.7 | 2,506.9 | |||||||||||||||||
Other Income | 128.3 | 0.1 | 0.2 | 93.9 | 7.7 | 230.2 | |||||||||||||||||
Operating Revenue | $ | 5,564.8 | $ | 705.2 | $ | 1,376.5 | $ | 2,682.9 | $ | 32.4 | $ | 10,361.8 | |||||||||||
Operating Income (Loss) | $ | 848.8 | $ | 132.0 | $ | 283.6 | $ | 107.3 | $ | (115.1 | ) | $ | 1,256.6 | ||||||||||
Interest and Debt Expense | $ | 0.1 | $ | — | $ | — | $ | 8.4 | $ | 140.9 | $ | 149.4 | |||||||||||
Depreciation and Amortization | $ | 292.5 | $ | 22.5 | $ | 188.7 | $ | 5.2 | $ | 0.9 | $ | 509.8 |
Colonial | |||||||||||||||
Unum US | Unum UK | Life | Total | ||||||||||||
(in millions of dollars) | |||||||||||||||
Deferred Acquisition Costs | |||||||||||||||
Year Ended December 31, 2015 | |||||||||||||||
Beginning of Year | $ | 1,096.5 | $ | 30.4 | $ | 774.4 | $ | 1,901.3 | |||||||
Capitalization | 307.3 | 9.6 | 252.8 | 569.7 | |||||||||||
Amortization | (272.3 | ) | (11.3 | ) | (198.7 | ) | (482.3 | ) | |||||||
Adjustment Related to Unrealized Investment Gains and Losses | 4.9 | — | 16.5 | 21.4 | |||||||||||
Foreign Currency | — | (1.6 | ) | — | (1.6 | ) | |||||||||
End of Year | $ | 1,136.4 | $ | 27.1 | $ | 845.0 | $ | 2,008.5 | |||||||
Year Ended December 31, 2014 | |||||||||||||||
Beginning of Year | $ | 1,051.5 | $ | 34.3 | $ | 743.4 | $ | 1,829.2 | |||||||
Capitalization | 292.7 | 10.5 | 220.8 | 524.0 | |||||||||||
Amortization | (248.1 | ) | (12.5 | ) | (180.2 | ) | (440.8 | ) | |||||||
Adjustment Related to Unrealized Investment Gains and Losses | 0.4 | — | (9.6 | ) | (9.2 | ) | |||||||||
Foreign Currency | — | (1.9 | ) | — | (1.9 | ) | |||||||||
End of Year | $ | 1,096.5 | $ | 30.4 | $ | 774.4 | $ | 1,901.3 | |||||||
Year Ended December 31, 2013 | |||||||||||||||
Beginning of Year | $ | 1,024.3 | $ | 38.8 | $ | 692.4 | $ | 1,755.5 | |||||||
Capitalization | 252.0 | 9.8 | 205.0 | 466.8 | |||||||||||
Amortization | (230.0 | ) | (14.7 | ) | (174.2 | ) | (418.9 | ) | |||||||
Adjustment Related to Unrealized Investment Gains and Losses | 5.2 | — | 20.2 | 25.4 | |||||||||||
Foreign Currency | — | 0.4 | — | 0.4 | |||||||||||
End of Year | $ | 1,051.5 | $ | 34.3 | $ | 743.4 | $ | 1,829.2 |
December 31 | |||||||
2015 | 2014 | ||||||
(in millions of dollars) | |||||||
Assets | |||||||
Unum US | $ | 18,242.4 | $ | 18,676.5 | |||
Unum UK | 3,432.4 | 3,702.5 | |||||
Colonial Life | 3,776.8 | 3,692.2 | |||||
Closed Block | 32,992.4 | 33,960.2 | |||||
Corporate | 2,145.7 | 2,418.8 | |||||
Total Assets | $ | 60,589.7 | $ | 62,450.2 |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars) | |||||||||||
Operating Revenue | $ | 10,775.1 | $ | 10,508.4 | $ | 10,361.8 | |||||
Net Realized Investment Gain (Loss) | (43.8 | ) | 16.1 | 6.8 | |||||||
Total Revenue | $ | 10,731.3 | $ | 10,524.5 | $ | 10,368.6 | |||||
Operating Income | $ | 1,294.0 | $ | 1,307.3 | $ | 1,256.6 | |||||
Net Realized Investment Gain (Loss) | (43.8 | ) | 16.1 | 6.8 | |||||||
Non-operating Retirement-related Loss | (11.9 | ) | (70.0 | ) | (32.9 | ) | |||||
Costs Related to Early Retirement of Debt for Corporate | — | (13.2 | ) | — | |||||||
Long-term Care Reserve Increase for Closed Block | — | (698.2 | ) | — | |||||||
Unclaimed Death Benefits Reserve Increase for Unum US | — | — | (75.4 | ) | |||||||
Unclaimed Death Benefits Reserve Increase for Colonial Life | — | — | (20.1 | ) | |||||||
Group Life Waiver of Premium Benefit Reserve Reduction for Unum US | — | — | 85.0 | ||||||||
Income Before Income Tax | $ | 1,238.3 | $ | 542.0 | $ | 1,220.0 |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars) | |||||||||||
Combined Net Income (Loss) | |||||||||||
Traditional U.S. Life Insurance Subsidiaries | $ | 653.7 | $ | 623.1 | $ | 584.5 | |||||
Captive Reinsurers | $ | (56.3 | ) | $ | (123.0 | ) | $ | 13.3 | |||
Combined Net Gain (Loss) from Operations | |||||||||||
Traditional U.S. Life Insurance Subsidiaries | $ | 689.2 | $ | 618.1 | $ | 617.5 | |||||
Captive Reinsurers | $ | (54.3 | ) | $ | (123.8 | ) | $ | 13.6 |
December 31 | |||||||
2015 | 2014 | ||||||
(in millions of dollars) | |||||||
Combined Capital and Surplus | |||||||
Traditional U.S. Life Insurance Subsidiaries | $ | 3,470.3 | $ | 3,462.8 | |||
Captive Reinsurers | $ | 1,672.3 | $ | 1,668.3 |
2015 | |||||||||||||||
4th | 3rd | 2nd | 1st | ||||||||||||
(in millions of dollars, except share data) | |||||||||||||||
Premium Income | $ | 2,037.8 | $ | 2,020.8 | $ | 2,017.5 | $ | 2,006.3 | |||||||
Net Investment Income | 636.4 | 612.1 | 630.7 | 602.0 | |||||||||||
Net Realized Investment Gain (Loss) | (2.7 | ) | (26.6 | ) | 0.8 | (15.3 | ) | ||||||||
Total Revenue | 2,722.4 | 2,657.8 | 2,703.7 | 2,647.4 | |||||||||||
Income Before Income Tax | 316.6 | 298.9 | 319.8 | 303.0 | |||||||||||
Net Income | 226.1 | 203.8 | 224.3 | 212.9 | |||||||||||
Net Income Per Common Share | |||||||||||||||
Basic | 0.93 | 0.83 | 0.90 | 0.85 | |||||||||||
Assuming Dilution | 0.93 | 0.83 | 0.90 | 0.84 |
2014 | |||||||||||||||
4th | 3rd | 2nd | 1st | ||||||||||||
(in millions of dollars, except share data) | |||||||||||||||
Premium Income | $ | 1,967.9 | $ | 1,947.2 | $ | 1,943.6 | $ | 1,938.5 | |||||||
Net Investment Income | 632.7 | 611.3 | 632.4 | 615.8 | |||||||||||
Net Realized Investment Gain (Loss) | (17.3 | ) | 1.2 | 25.9 | 6.3 | ||||||||||
Total Revenue | 2,639.0 | 2,614.3 | 2,656.8 | 2,614.4 | |||||||||||
Income (Loss) Before Income Tax | (454.6 | ) | 317.0 | 349.8 | 329.8 | ||||||||||
Net Income (Loss) | (282.2 | ) | 219.1 | 239.4 | 225.8 | ||||||||||
Net Income (Loss) Per Common Share | |||||||||||||||
Basic | (1.12 | ) | 0.86 | 0.93 | 0.87 | ||||||||||
Assuming Dilution | (1.12 | ) | 0.86 | 0.93 | 0.86 |
• | Fourth quarter of 2014 reserve increase of $698.2 million before tax and $453.8 million after tax related to long-term care. |
• | Fourth quarter of 2014 settlement loss of $64.4 million before tax and $41.9 million after tax related to a pension plan amendment. |
(a) | List of Documents filed as part of this report: | Page | ||
(1) | Financial Statements | |||
The following report and consolidated financial statements of Unum Group and Subsidiaries are included in Item 8. | ||||
(2) | Financial Statement Schedules | |||
I. | ||||
II. | ||||
III. | ||||
IV. | ||||
V. | ||||
Schedules not referred to have been omitted as inapplicable or because they are not required by Regulation S-X. | ||||
(3) | Exhibits | |||
Unum Group | ||
(Registrant) | ||
By: | /s/ Richard P. McKenney | |
Richard P. McKenney | ||
President and Chief Executive Officer | ||
Date: | February 24, 2016 |
Name | Title | Date |
/s/ Richard P. McKenney | President and Chief Executive Officer | February 24, 2016 | ||
Richard P. McKenney | and a Director (principal executive officer) | |||
/s/ John F. McGarry | Executive Vice President and Chief Financial Officer | February 24, 2016 | ||
John F. McGarry | (principal financial officer) | |||
/s/ Vicki W. Corbett | Senior Vice President, Controller (controller) | February 24, 2016 | ||
Vicki W. Corbett |
Name | Title | Date |
* | Director | February 24, 2016 | ||
Theodore H. Bunting, Jr. | ||||
* | Director | February 24, 2016 | ||
E. Michael Caulfield | ||||
* | Director | February 24, 2016 | ||
Cynthia L. Egan | ||||
* | Director | February 24, 2016 | ||
Pamela H. Godwin | ||||
* | Director | February 24, 2016 | ||
Kevin T. Kabat | ||||
* | Director | February 24, 2016 | ||
Timothy F. Keaney | ||||
* | Director | February 24, 2016 | ||
Gloria C. Larson | ||||
* | Director | February 24, 2016 | ||
A. S. MacMillan, Jr. | ||||
* | Director | February 24, 2016 | ||
Edward J. Muhl | ||||
* | Director | February 24, 2016 | ||
Ronald P. O'Hanley | ||||
* | Director | February 24, 2016 | ||
William J. Ryan | ||||
* | Director | February 24, 2016 | ||
Francis J. Shammo | ||||
* | Director | February 24, 2016 | ||
Thomas R. Watjen | ||||
* By: /s/ J. Paul Jullienne | For all of the Directors | February 24, 2016 | ||
J. Paul Jullienne | ||||
Attorney-in-Fact |
Type of Investment | Cost or Amortized Cost (1) | Fair Value | Amount shown on the balance sheet | ||||||||||
(in millions of dollars) | |||||||||||||
Fixed Maturity Securities: | |||||||||||||
Bonds | |||||||||||||
United States Government and Government Agencies and Authorities | $ | 1,265.8 | $ | 1,465.2 | $ | 1,465.2 | |||||||
States, Municipalities, and Political Subdivisions | 1,828.3 | 2,117.1 | 2,117.1 | ||||||||||
Foreign Governments | 897.2 | 1,051.6 | 1,051.6 | ||||||||||
Public Utilities | 6,979.3 | 8,020.4 | 8,020.4 | ||||||||||
Mortgage/Asset-Backed Securities | 2,318.6 | 2,481.5 | 2,481.5 | ||||||||||
All Other Corporate Bonds | 26,325.5 | 28,171.4 | 28,171.4 | ||||||||||
Redeemable Preferred Stocks | 44.0 | 47.2 | 47.2 | ||||||||||
Total Fixed Maturity Securities | 39,658.7 | $ | 43,354.4 | 43,354.4 | |||||||||
Mortgage Loans | 1,883.6 | 1,883.6 | |||||||||||
Policy Loans | 3,395.4 | 3,395.4 | |||||||||||
Other Long-term Investments | |||||||||||||
Derivatives | — | 49.8 | (2) | ||||||||||
Equity Securities | 1.2 | 1.4 | |||||||||||
Miscellaneous Long-term Investments | 527.9 | 531.8 | (3) | ||||||||||
Short-term Investments | 807.3 | 807.3 | |||||||||||
Total Investments | $ | 46,274.1 | $ | 50,023.7 |
(1) | The amortized cost for fixed maturity securities and mortgage loans represents original cost reduced by repayments, write-downs from other-than-temporary declines in fair value, amortization of premiums, and/or accretion of discounts. |
(2) | Derivatives are carried at fair value. |
(3) | The difference between amortized cost and carrying value primarily results from changes in the partnership owner's equity since acquisition. |
December 31 | |||||||
2015 | 2014 | ||||||
(in millions of dollars) | |||||||
As Adjusted | |||||||
Assets | |||||||
Fixed Maturity Securities - at fair value (amortized cost: $273.7; $161.4) | $ | 273.4 | $ | 162.2 | |||
Other Long-term Investments | 22.7 | 51.9 | |||||
Short-term Investments | 288.1 | 326.2 | |||||
Investment in Subsidiaries | 10,689.1 | 10,332.2 | |||||
Deferred Income Tax | 160.1 | 160.1 | |||||
Other Assets | 572.5 | 568.3 | |||||
Total Assets | $ | 12,005.9 | $ | 11,600.9 | |||
Liabilities and Stockholders' Equity | |||||||
Liabilities | |||||||
Short-term Debt | $ | 352.4 | $ | — | |||
Long-term Debt | 2,151.1 | 2,230.3 | |||||
Pension and Postretirement Benefits | 554.1 | 581.5 | |||||
Other Liabilities | 284.4 | 267.2 | |||||
Total Liabilities | 3,342.0 | 3,079.0 | |||||
Stockholders' Equity | |||||||
Common Stock | 30.3 | 30.2 | |||||
Additional Paid-in Capital | 2,247.2 | 2,221.2 | |||||
Accumulated Other Comprehensive Income | 16.1 | 166.4 | |||||
Retained Earnings | 7,995.2 | 7,302.3 | |||||
Treasury Stock | (1,624.9 | ) | (1,198.2 | ) | |||
Total Stockholders' Equity | 8,663.9 | 8,521.9 | |||||
Total Liabilities and Stockholders' Equity | $ | 12,005.9 | $ | 11,600.9 |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars) | |||||||||||
As Adjusted | |||||||||||
Cash Dividends from Subsidiaries | $ | 671.8 | $ | 645.2 | $ | 636.6 | |||||
Other Income | 52.8 | 116.3 | 56.9 | ||||||||
Total Revenue | 724.6 | 761.5 | 693.5 | ||||||||
Interest and Debt Expense | 137.5 | 132.4 | 120.9 | ||||||||
Other Expenses | 16.7 | 66.0 | 48.9 | ||||||||
Total Expenses | 154.2 | 198.4 | 169.8 | ||||||||
Income of Parent Company Before Income Tax | 570.4 | 563.1 | 523.7 | ||||||||
Income Tax Benefit | (16.2 | ) | (24.5 | ) | (14.7 | ) | |||||
Income of Parent Company | 586.6 | 587.6 | 538.4 | ||||||||
Equity in Undistributed Earnings (Loss) of Subsidiaries | 280.5 | (185.5 | ) | 308.6 | |||||||
Net Income | 867.1 | 402.1 | 847.0 | ||||||||
Other Comprehensive Loss, Net of Tax | (150.3 | ) | (88.6 | ) | (373.0 | ) | |||||
Comprehensive Income | $ | 716.8 | $ | 313.5 | $ | 474.0 |
Year Ended December 31 | |||||||||||
2015 | 2014 | 2013 | |||||||||
(in millions of dollars) | |||||||||||
Cash Provided by Operating Activities | $ | 672.2 | $ | 683.0 | $ | 612.5 | |||||
Cash Flows from Investing Activities | |||||||||||
Proceeds from Sales of Fixed Maturity Securities | 7.8 | 25.0 | — | ||||||||
Proceeds from Maturities of Fixed Maturity Securities | 112.2 | 76.1 | 38.5 | ||||||||
Proceeds from Sales and Maturities of Other Investments | 26.4 | 31.9 | 9.4 | ||||||||
Purchase of Fixed Maturity Securities | (233.7 | ) | (118.9 | ) | (139.8 | ) | |||||
Purchase of Other Investments | — | (19.0 | ) | (1.0 | ) | ||||||
Net Sales (Purchases) of Short-term Investments | 38.1 | (162.1 | ) | 269.5 | |||||||
Cash Distributions to Subsidiaries | (231.0 | ) | (316.1 | ) | (225.1 | ) | |||||
Net Purchases of Property and Equipment | (78.9 | ) | (102.5 | ) | (78.8 | ) | |||||
Other, Net | 0.1 | (0.2 | ) | (6.2 | ) | ||||||
Cash Used by Investing Activities | (359.0 | ) | (585.8 | ) | (133.5 | ) | |||||
Cash Flows from Financing Activities | |||||||||||
Issuance of Long-term Debt | 271.4 | 347.2 | — | ||||||||
Issuance of Common Stock | 6.4 | 12.3 | 11.4 | ||||||||
Repurchase of Common Stock | (417.9 | ) | (306.0 | ) | (317.2 | ) | |||||
Dividends Paid to Stockholders | (174.2 | ) | (159.4 | ) | (146.5 | ) | |||||
Other, Net | 2.9 | 1.9 | (0.3 | ) | |||||||
Cash Used by Financing Activities | (311.4 | ) | (104.0 | ) | (452.6 | ) | |||||
Increase (Decrease) in Cash | $ | 1.8 | $ | (6.8 | ) | $ | 26.4 |
December 31 | |||||||||||
2015 | 2014 | ||||||||||
Interest Rates | Maturities | (in millions of dollars) | |||||||||
Long-term Debt | |||||||||||
Senior Notes issued 1998 | 7.000% | 2018 | $ | 200.0 | $ | 200.0 | |||||
Senior Notes issued 1998 | 6.750 - 7.250% | 2028 | 365.8 | 365.8 | |||||||
Senior Notes issued 2002 | 7.375% | 2032 | 39.5 | 39.5 | |||||||
Senior Notes issued 2009 | 7.125% | 2016 | — | 350.0 | |||||||
Senior Notes issued 2010 | 5.625% | 2020 | 399.8 | 399.7 | |||||||
Senior Notes issued 2012 | 5.750% | 2042 | 248.7 | 248.7 | |||||||
Senior Notes issued 2014 | 4.000% | 2024 | 349.5 | 349.5 | |||||||
Senior Notes issued 2015 | 3.875% | 2025 | 273.2 | — | |||||||
Medium-term Notes issued 1990 - 1996 | 7.000 - 7.190% | 2023 - 2028 | 50.8 | 50.8 | |||||||
Junior Subordinated Debt Securities issued 1998 | 7.405% | 2038 | 226.5 | 226.5 | |||||||
Fair Value Hedges Adjustment | (2.7 | ) | (0.2 | ) | |||||||
Total Long-term Debt | 2,151.1 | 2,230.3 | |||||||||
Short-term Debt | |||||||||||
Senior Notes issued 2009 | 7.125% | 2016 | 350.0 | — | |||||||
Fair Value Hedges Adjustment | 2.4 | — | |||||||||
Total Short-term Debt | 352.4 | — | |||||||||
Total Debt | $ | 2,503.5 | $ | 2,230.3 |
Segment | Deferred Acquisition Costs | Reserves for Future Policy Contract Benefits | Unearned Premiums | Policy and Contract Benefits | ||||||||||||
(in millions of dollars) | ||||||||||||||||
December 31, 2015 | ||||||||||||||||
Unum US | $ | 1,136.4 | $ | 11,273.5 | $ | 45.5 | $ | 940.8 | ||||||||
Unum UK | 27.1 | 2,377.5 | 128.2 | 114.3 | ||||||||||||
Colonial Life | 845.0 | 1,989.8 | 32.0 | 191.2 | ||||||||||||
Closed Block | — | 27,899.8 | 178.5 | 238.3 | ||||||||||||
Total | $ | 2,008.5 | $ | 43,540.6 | $ | 384.2 | $ | 1,484.6 | ||||||||
December 31, 2014 | ||||||||||||||||
Unum US | $ | 1,096.5 | $ | 11,828.0 | $ | 46.6 | $ | 953.7 | ||||||||
Unum UK | 30.4 | 2,596.7 | 130.6 | 127.6 | ||||||||||||
Colonial Life | 774.4 | 1,919.7 | 30.8 | 191.4 | ||||||||||||
Closed Block | — | 29,585.0 | 188.6 | 256.6 | ||||||||||||
Total | $ | 1,901.3 | $ | 45,929.4 | $ | 396.6 | $ | 1,529.3 |
Segment | Premium Income | Net Investment Income (2) | Benefits and Change in Reserves for Future Benefits (3) | Amortization of Deferred Acquisition Costs | All Other Expenses (4) | Premiums Written (5) | ||||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||||||
December 31, 2015 | ||||||||||||||||||||||||
Unum US | $ | 4,960.0 | $ | 865.3 | $ | 3,476.7 | $ | 272.3 | $ | 1,345.5 | $ | 3,353.8 | ||||||||||||
Unum UK | 576.2 | 124.9 | 394.8 | 11.3 | 154.4 | 453.0 | ||||||||||||||||||
Colonial Life | 1,338.6 | 145.4 | 683.0 | 198.7 | 293.3 | 1,088.3 | ||||||||||||||||||
Closed Block | 1,207.6 | 1,320.0 | 2,228.3 | — | 269.5 | 1,198.5 | ||||||||||||||||||
Corporate | — | 25.6 | — | — | 165.2 | — | ||||||||||||||||||
Total | $ | 8,082.4 | $ | 2,481.2 | $ | 6,782.8 | $ | 482.3 | $ | 2,227.9 | ||||||||||||||
December 31, 2014 - As Adjusted (1) | ||||||||||||||||||||||||
Unum US | $ | 4,659.7 | $ | 878.9 | $ | 3,288.1 | $ | 248.1 | $ | 1,279.6 | $ | 3,144.1 | ||||||||||||
Unum UK | 607.2 | 151.0 | 431.0 | 12.5 | 166.9 | 479.9 | ||||||||||||||||||
Colonial Life | 1,273.7 | 145.5 | 660.6 | 180.2 | 279.5 | 1,042.7 | ||||||||||||||||||
Closed Block | 1,256.6 | 1,281.5 | 2,931.1 | — | 277.0 | 1,248.6 | ||||||||||||||||||
Corporate | — | 35.3 | — | — | 227.9 | — | ||||||||||||||||||
Total | $ | 7,797.2 | $ | 2,492.2 | $ | 7,310.8 | $ | 440.8 | $ | 2,230.9 | ||||||||||||||
December 31, 2013 - As Adjusted (1) | ||||||||||||||||||||||||
Unum US | $ | 4,517.1 | $ | 919.4 | $ | 3,222.4 | $ | 230.0 | $ | 1,254.0 | $ | 3,068.0 | ||||||||||||
Unum UK | 556.6 | 148.5 | 413.3 | 14.7 | 145.2 | 448.1 | ||||||||||||||||||
Colonial Life | 1,232.2 | 144.1 | 667.0 | 174.2 | 271.8 | 1,011.8 | ||||||||||||||||||
Closed Block | 1,318.8 | 1,270.2 | 2,293.0 | — | 282.6 | 1,307.0 | ||||||||||||||||||
Corporate | — | 24.7 | — | — | 180.4 | — | ||||||||||||||||||
Total | $ | 7,624.7 | $ | 2,506.9 | $ | 6,595.7 | $ | 418.9 | $ | 2,134.0 |
(1) | Prior year amounts have been adjusted for the retrospective adoption of the accounting standards update for tax credit partnership investments in qualified affordable housing projects. See Note 1 of the "Notes to Consolidated Financial Statements" contained herein in Item 8 for further discussion. |
(2) | Net investment income is allocated based upon segmentation. Each segment has its own specifically identified assets and receives the investment income generated by those assets. |
(3) | Included in 2014 is a reserve charge of $698.2 million in the Closed Block segment related to our long-term care business. Included in 2013 are unclaimed death benefits reserve increases of $75.4 million in the Unum US segment and $20.1 million in the Colonial Life segment and a group life waiver of premium benefit reserve reduction of $85.0 million in the Unum US segment. |
(4) | Includes commissions; interest and debt expense; deferral of acquisition costs; compensation expense; non-operating retirement related loss, which in 2014 included a settlement loss of $64.4 million in the Corporate segment related to a pension plan amendment; and other expenses. Where not directly attributable to a segment, expenses are generally allocated based on activity levels, time information, and usage statistics. |
(5) | Excludes life insurance. |
Gross Amount | Ceded to Other Companies | Assumed from Other Companies | Net Amount | Percentage Amount Assumed to Net | ||||||||||||||
(in millions of dollars) | ||||||||||||||||||
Year Ended December 31, 2015 | ||||||||||||||||||
Life Insurance in Force | $ | 827,515.2 | $ | 24,062.6 | $ | 993.5 | $ | 804,446.1 | 0.1 | % | ||||||||
Premium Income: | ||||||||||||||||||
Life Insurance | $ | 2,150.1 | $ | 176.3 | $ | 9.4 | $ | 1,983.2 | 0.5 | % | ||||||||
Accident, Health, and Other Insurance | 6,001.8 | 96.0 | 193.4 | 6,099.2 | 3.2 | % | ||||||||||||
Total | $ | 8,151.9 | $ | 272.3 | $ | 202.8 | $ | 8,082.4 | 2.5 | % | ||||||||
Year Ended December 31, 2014 | ||||||||||||||||||
Life Insurance in Force | $ | 790,952.1 | $ | 24,416.7 | $ | 999.7 | $ | 767,535.1 | 0.1 | % | ||||||||
Premium Income: | ||||||||||||||||||
Life Insurance | $ | 2,056.4 | $ | 194.8 | $ | 9.6 | $ | 1,871.2 | 0.5 | % | ||||||||
Accident, Health, and Other Insurance | 5,842.9 | 97.1 | 180.2 | 5,926.0 | 3.0 | % | ||||||||||||
Total | $ | 7,899.3 | $ | 291.9 | $ | 189.8 | $ | 7,797.2 | 2.4 | % | ||||||||
Year Ended December 31, 2013 | ||||||||||||||||||
Life Insurance in Force | $ | 781,495.9 | $ | 25,904.7 | $ | 1,026.2 | $ | 756,617.4 | 0.1 | % | ||||||||
Premium Income: | ||||||||||||||||||
Life Insurance | $ | 2,018.7 | $ | 253.6 | $ | 10.0 | $ | 1,775.1 | 0.6 | % | ||||||||
Accident, Health, and Other Insurance | 5,758.6 | 102.2 | 193.2 | 5,849.6 | 3.3 | % | ||||||||||||
Total | $ | 7,777.3 | $ | 355.8 | $ | 203.2 | $ | 7,624.7 | 2.7 | % |
Description | Balance at Beginning of Period | Additions Charged to Costs and Expenses | Additions Charged to Other Accounts (1) | Deductions (2) | Balance at End of Period | |||||||||||||||
(in millions of dollars) | ||||||||||||||||||||
Year Ended December 31, 2015 | ||||||||||||||||||||
Real Estate reserve (deducted from other long-term investments) | $ | 0.3 | $ | 1.2 | $ | — | $ | 0.3 | $ | 1.2 | ||||||||||
Allowance for doubtful accounts (deducted from accounts and premiums receivable) | $ | 6.4 | $ | 1.7 | $ | — | $ | 1.9 | $ | 6.2 | ||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Real Estate reserve (deducted from other long-term investments) | $ | 1.8 | $ | 0.4 | $ | — | $ | 1.9 | $ | 0.3 | ||||||||||
Allowance for doubtful accounts (deducted from accounts and premiums receivable) | $ | 5.6 | $ | 1.4 | $ | 0.3 | $ | 0.9 | $ | 6.4 | ||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Real Estate reserve (deducted from other long-term investments) | $ | 0.3 | $ | 1.5 | $ | — | $ | — | $ | 1.8 | ||||||||||
Allowance for doubtful accounts (deducted from accounts and premiums receivable) | $ | 6.2 | $ | 0.7 | $ | — | $ | 1.3 | $ | 5.6 |
(1) | Additions charged to other accounts are comprised of amounts related to fluctuations in the foreign currency exchange rate. |
(2) | Deductions include amounts deemed to reduce exposure of probable losses, amounts deemed uncollectible, and amounts related to fluctuations in the foreign currency exchange rate. |
(3.1) | Amended and Restated Certificate of Incorporation of Unum Group, effective May 23, 2013 (incorporated by reference to Exhibit 3.1 of our Form 8-K filed on May 24, 2013). |
(3.2) | Amended and Restated Bylaws of Unum Group, effective December 12, 2014 (incorporated by reference to Exhibit 3.1 of our Form 8-K filed on December 12, 2014). |
(4.1) | Indenture for Senior Debt Securities dated as of March 9, 2001 (incorporated by reference to Exhibit 4.1 of our Registration Statement on Form S-3 (Registration No. 333-100953) filed on November 1, 2002). |
(4.2) | Second Supplemental Indenture, dated as of June 18, 2002, between Unum Group and JPMorgan Chase Bank, as Trustee (incorporated by reference to Exhibit 4.2 of our Form 8-K filed on June 21, 2002). |
(4.3) | Indenture for Senior Debt Securities between Unum Group and The Bank of New York Mellon Trust Company, N.A. as Trustee dated as of September 30, 2009 (incorporated by reference to Exhibit 4.2 of our Form 8-K filed on September 30, 2009). |
(4.4) | Form of 7.125% Senior Note due 2016 (incorporated by reference to Exhibit 4.1 of our Form 8-K filed on September 30, 2009). |
(4.5) | Form of 5.625% Senior Note due 2020 (incorporated by reference to Exhibit 4.1 of our Form 8-K filed on September 15, 2010). |
(4.6) | Indenture for Senior Debt Securities, dated as of August 23, 2012, between Unum Group and The Bank of New York Mellon Trust Company, N.A., as Trustee (incorporated by reference to Exhibit 4.2 of our Form 8-K filed on August 23, 2012). |
(4.7) | Form of 5.75% Senior Note due 2042 (incorporated by reference to Exhibit 4.1 of our Form 8-K filed on August 23, 2012). |
(4.8) | Form of 4.000% Senior Note due 2024 (incorporated by reference to Exhibit 4.1 of our Form 8-K filed on March 14, 2014). |
(4.9) | Form of 3.875% Senior Note due 2025 (incorporated by reference to Exhibit 4.1 of our Form 8-K filed on November 5, 2015). |
(10.1) | Agreement between Provident Companies, Inc. and certain subsidiaries and American General Corporation and certain subsidiaries dated as of December 8, 1997 (incorporated by reference to Exhibit 10.18 of Provident Companies Inc.'s Form 10-Q for fiscal quarter ended September 30, 1998). |
(10.2) | Form of Change in Control Severance Agreement, as amended (incorporated by reference to Exhibit 10.8 of our Form 10-K for the fiscal year ended December 31, 2008). * |
(10.3) | Form of Change in Control Severance Agreement, effective April 25, 2011 (incorporated by reference to Exhibit 10.3 of our Form 10-K for the fiscal year ended December 31, 2014). * |
(10.4) | Form of Change in Control Severance Agreement, effective January 1, 2015 (incorporated by reference to Exhibit 10.4 of our Form 10-K for the fiscal year ended December 31, 2014). * |
(10.5) | Unum Group Supplemental Pension Plan, as amended and restated effective January 1, 2010 (incorporated by reference to Exhibit 10.6 of our Form 10-K for the fiscal year ended December 31, 2013). * |
(10.6) | First Amendment to the Unum Group Supplemental Pension Plan, effective as of June 17, 2013 (incorporated by reference to Exhibit 10.7 of our Form 10-K for the fiscal year ended December 31, 2013). * |
(10.7) | Second Amendment to the Unum Group Supplemental Pension Plan, effective as of December 31, 2013 (incorporated by reference to Exhibit 10.8 of our Form 10-K for the fiscal year ended December 31, 2013). * |
(10.8) | Third Amendment to the Unum Group Supplemental Pension Plan, effective as of January 1, 2013. * |
(10.9) | Administrative Reinsurance Agreement between Provident Life and Accident Insurance Company and Reassure America Life Insurance Company dated to be effective July 1, 2000 (incorporated by reference to Exhibit 10.1 of our Form 8-K filed on March 2, 2001). |
(10.10) | Unum Group Amended and Restated Non-Employee Director Compensation Plan of 2004, as amended (incorporated by reference to Exhibit 10.19 of our Form 10-K for the fiscal year ended December 31, 2008). * |
(10.11) | Unum Group Senior Executive Retirement Plan, as amended and restated effective January 1, 2008 (incorporated by reference to Exhibit 10.11 of our Form 10-K for the fiscal year ended December 31, 2013). * |
(10.12) | First Amendment to the Unum Group Senior Executive Retirement Plan, effective as of December 31, 2013(incorporated by reference to Exhibit 10.12 of our Form 10-K for the fiscal year ended December 31, 2013). * |
(10.13) | California Settlement Agreement (incorporated by reference to Exhibit 10.1 of our Form 8-K filed on October 3, 2005). |
(10.14) | Amendment to Regulatory Settlement Agreement (incorporated by reference to Exhibit 10.2 of our Form 8‑K filed on October 3, 2005). |
(10.15) | Second Amended and Restated Employment Agreement between Unum Group and Thomas R. Watjen dated as of December 27, 2013 (incorporated by reference to Exhibit 10.15 of our Form 10-K for the fiscal year ended December 31, 2013). * |
(10.16) | Unum Group Stock Incentive Plan of 2007, as amended (incorporated by reference to Exhibit 10.26 of our Form 10-K for the fiscal year ended December 31, 2008). * |
(10.17) | Form of Restricted Stock Unit Agreement with Director, as amended, for awards under the Unum Group Stock Incentive Plan of 2007 (incorporated by reference to Exhibit 10.32 of our Form 10-K for the fiscal year ended December 31, 2008). * |
(10.18) | Severance Pay Plan for Executive Vice Presidents (EVPs) (incorporated by reference to Exhibit 10.35 of our Form 10-K for the fiscal year ended December 31, 2008). * |
(10.19) | Unum Group Stock Incentive Plan of 2012 (incorporated by reference to Appendix A of our Definitive Proxy Statement on Schedule 14A filed on April 12, 2012). * |
(10.20) | Form of Restricted Stock Unit Agreement with Director for awards under the Unum Group Stock Incentive Plan of 2012 (incorporated by reference to Exhibit 10.1 of our Form 10-Q filed on November 1, 2012). * |
(10.21) | Form of Restricted Stock Unit Agreement with Employee for awards under the Unum Group Stock Incentive Plan of 2012 (incorporated by reference to Exhibit 10.1 of our Form 10-Q filed on May 2, 2013). * |
(10.22) | Form of Restricted Stock Unit Agreement with Employee for awards in 2014 under the Unum Group Stock Incentive Plan of 2012 (incorporated by reference to Exhibit 10.1 of our Form 10-Q filed on May 8, 2014). * |
(10.23) | Form of Restricted Stock Unit Agreement with Employee for awards in 2015 under the Unum Group Stock Incentive Plan of 2012 (incorporated by reference to Exhibit 10.4 of our Form 10-Q filed on April 30, 2015). * |
(10.24) | Form of Cash-Settled Restricted Stock Unit Agreement with Employee for awards under the Unum Group Stock Incentive Plan of 2012 (incorporated by reference to Exhibit 10.2 of our Form 10-Q filed on May 2, 2013). * |
(10.25) | Form of Cash-Settled Restricted Stock Unit Agreement with Employee for awards in 2014 under the Unum Group Stock Incentive Plan of 2012 (incorporated by reference to Exhibit 10.2 of our Form 10-Q filed on May 8, 2014). * |
(10.26) | Form of Cash-Settled Restricted Stock Unit Agreement with Employee for awards in 2015 under the Unum Group Stock Incentive Plan of 2012 (incorporated by reference to Exhibit 10.5 of our Form 10-Q filed on April 30, 2015). * |
(10.27) | Form of Nonqualified Stock Option Agreement for awards under the Unum Group Stock Incentive Plan of 2012 (incorporated by reference to Exhibit 10.3 of our Form 10-Q filed on May 2, 2013). * |
(10.28) | Form of Performance Share Unit Agreement with Employee for awards under the Unum Group Stock Incentive Plan of 2012 (incorporated by reference to Exhibit 10.4 of our Form 10-Q filed on May 2, 2013). * |
(10.29) | Form of Performance Share Unit Agreement with Employee for awards in 2014 under the Unum Group Stock Incentive Plan of 2012 (incorporated by reference to Exhibit 10.3 of our Form 10-Q filed on May 8, 2014). * |
(10.30) | Form of Performance Share Unit Agreement with Employee for awards in 2015 under the Unum Group Stock Incentive Plan of 2012 (incorporated by reference to Exhibit 10.6 of our Form 10-Q filed on April 30, 2015). * |
(10.31) | Annual Incentive Plan of Unum Group (incorporated by reference to Exhibit 10.1 of our Form 8-K filed on May 24, 2013). * |
(10.32) | Unum Group Non-Qualified Defined Contribution Retirement Plan, effective January 1, 2014 (incorporated by reference to Exhibit 10.31 of our Form 10-K for the fiscal year ended December 31, 2013). * |
(10.33) | Credit Agreement, dated as of August 29, 2013, among Unum Group, as Borrower, Wells Fargo Bank, National Association, as Administrative Agent, L/C Agent, Fronting Bank and Swingline Lender, JPMorgan Chase Bank, N.A. and SunTrust Bank, as Co-Syndication Agents, and the other lenders named therein (incorporated by reference to Exhibit 10.1 of our Form 8-K filed on August 30, 2013). |
(10.34) | First Amendment to Credit Agreement, dated as of January 15, 2015, among Unum Group, as Borrower, the lenders party thereto, and Wells Fargo Bank, National Association, as Administrative Agent (incorporated by reference to Exhibit 10.35 of our Form 10-K for the fiscal year ended December 31, 2014). |
(10.35) | Letter Agreement with Richard P. McKenney, dated January 30, 2015 (incorporated by reference to Exhibit 10.1 of our Form 8-K filed on February 3, 2015). * |
(10.36) | Severance Agreement between Unum Group and Richard P. McKenney, dated effective as of April 1, 2015 (incorporated by reference to Exhibit 10.2 of our Form 8-K filed on February 3, 2015). * |
(10.37) | Aircraft Time-Sharing Agreement between Unum Group and Richard P. McKenney, dated effective as of May 21, 2015 (incorporated by reference to Exhibit 10.3 of our Form 8-K filed on February 3, 2015). * |
(11) | Statement Regarding Computation of Per Share Earnings (incorporated herein by reference to Note 10 of the "Notes to Consolidated Financial Statements"). |
(12) | Statement Regarding Computation of Ratio of Earnings to Fixed Charges. |
(21) | Subsidiaries of the Registrant. |
(23) | Consent of Independent Registered Public Accounting Firm. |
(24) | Power of Attorney. |
(31.1) | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
(31.2) | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
(32.1) | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
(32.2) | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
(101) | The following financial statements from Unum Group's Annual Report on Form 10-K for the year ended December 31, 2015, filed on February 24, 2016, formatted in XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Stockholders' Equity, (v) Consolidated Statements of Cash Flows, (vi) the Notes to Consolidated Financial Statements, (vii) Financial Statement Schedules. |
* | Management contract or compensatory plan required to be filed as an exhibit to this form pursuant to Item 15(c) of Form 10-K. |
Year Ended December 31 | |||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
(in millions of dollars, except ratios) | |||||||||||||||||||
Earnings | |||||||||||||||||||
Income Before Income Tax | $ | 1,238.3 | $ | 542.0 | $ | 1,220.0 | $ | 1,265.6 | $ | 347.5 | |||||||||
Fixed Charges | 179.0 | 184.1 | 175.1 | 169.8 | 165.5 | ||||||||||||||
Adjusted Earnings | $ | 1,417.3 | $ | 726.1 | $ | 1,395.1 | $ | 1,435.4 | $ | 513.0 | |||||||||
Fixed Charges | |||||||||||||||||||
Interest and Debt Expense, excluding Costs Related to Early Retirement of Debt | $ | 152.8 | $ | 154.3 | $ | 149.4 | $ | 145.4 | $ | 143.3 | |||||||||
Interest Credited on Investment Products | 11.2 | 14.3 | 10.2 | 9.7 | 9.4 | ||||||||||||||
Portion of Rents Deemed Representative of Interest | 14.2 | 14.7 | 14.7 | 13.9 | 12.0 | ||||||||||||||
Other | 0.8 | 0.8 | 0.8 | 0.8 | 0.8 | ||||||||||||||
Total Fixed Charges | $ | 179.0 | $ | 184.1 | $ | 175.1 | $ | 169.8 | $ | 165.5 | |||||||||
Ratio of Earnings to Fixed Charges | 7.9 | 3.9 | 8.0 | 8.5 | 3.1 |
Company Name | State or Jurisdiction of Incorporation | |
Unum Group | Delaware | |
First Unum Life Insurance Company | New York | |
Unum Life Insurance Company of America | Maine | |
Duncanson & Holt, Inc. | New York | |
Duncanson & Holt Services, Inc. | Maine | |
Duncanson & Holt Canada Ltd. | Canada | |
Duncanson & Holt Underwriters Ltd. | England and Wales | |
Duncanson & Holt Europe Ltd. | England and Wales | |
Unum European Holding Company Limited | England and Wales | |
Unum Limited | England and Wales | |
Claims Services International Limited | England and Wales | |
Unum Select Limited | England and Wales | |
National Dental Plan Limited | England and Wales | |
Claims Assistance (UK) Limited | England and Wales | |
NDPH Limited | England and Wales | |
NDP (UK) Limited | England and Wales | |
MIC Guernsey Limited | Guernsey | |
MIC Holdings Limited | Guernsey | |
Minories Insurance PCC Limited | Guernsey | |
UnumProvident Finance Company plc | England and Wales | |
Unum Ireland Limited | Ireland | |
Colonial Life & Accident Insurance Company | South Carolina | |
Fairwind Insurance Company | Vermont | |
Northwind Holdings, LLC | Delaware | |
Northwind Reinsurance Company | Vermont | |
The Paul Revere Life Insurance Company | Massachusetts | |
Unum Insurance Company | Maine | |
Provident Life and Accident Insurance Company | Tennessee | |
Provident Life and Casualty Insurance Company | Tennessee | |
Provident Investment Management, LLC | Tennessee |
1. | Registration Statement (Form S-8 No. 333-81669) pertaining to: |
a. | Provident Companies, Inc. Stock Plan of 1999 |
b. | Provident Companies, Inc. Non-Employee Director Compensation Plan of 1998 |
c. | Employee Stock Option Plan of 1998 |
d. | Amended and Restated Annual Management Incentive Compensation Plan of 1994, |
2. | Registration Statement (Form S-8 No. 333-85882) pertaining to: |
a. | UnumProvident Corporation Stock Plan of 1999 |
b. | UnumProvident Corporation 401(k) Retirement Plan (as amended on February 15, 2002) |
c. | UnumProvident Corporation Broad-Based Stock Plan of 2001 (as amended on February 8, 2001) |
d. | UnumProvident Corporation Broad-Based Stock Plan of 2002 |
e. | UnumProvident Corporation Employee Stock Option Plan, |
3. | Registration Statement (Form S-8 No. 333-123422) of Unum Group (formerly UnumProvident Corporation) pertaining to: |
a. | UnumProvident Corporation Amended and Restated Employee Stock Purchase Plan |
b. | UnumProvident Corporation Amended and Restated Non-Employee Director Compensation Plan of 2004, |
4. | Registration Statement (Form S-8 No. 333-145400) of Unum Group pertaining to the Unum Group Stock Incentive Plan of 2007, |
5. | Registration Statement (Form S-8 No. 333-158885) of Unum Group pertaining to the Unum Limited Savings-Related Share Option Scheme of 2008, |
6. | Registration Statement (Form S-8 No. 333-183732) of Unum Group pertaining to the Unum European Holding Company Limited Savings-Related Share Option Scheme 2011, |
7. | Registration Statement (Form S-8 No. 333-183733) of Unum Group pertaining to the Unum Group Stock Incentive Plan of 2012, |
8. | Registration Statement (Form S-3 ASR No. 333-199999) and related Prospectus, and |
9. | Registration Statement (Form S-8 No. 333-203694) of Unum Group pertaining to the Unum Group 401(k) Retirement Plan. |
/s/ Theodore H. Bunting, Jr. | /s/ A.S. MacMillan, Jr. | |
Theodore H. Bunting, Jr. | A.S. MacMillan, Jr. | |
/s/ E. Michael Caulfield | /s/ Richard P. McKenney | |
E. Michael Caulfield | Richard P. McKenney | |
/s/ Cynthia L. Egan | /s/ Edward J. Muhl | |
Cynthia L. Egan | Edward J. Muhl | |
/s/ Pamela H. Godwin | /s/ Ronald P. O'Hanley | |
Pamela H. Godwin | Ronald P. O'Hanley | |
/s/ Kevin T. Kabat | /s/ William J. Ryan | |
Kevin T. Kabat | William J. Ryan | |
/s/ Timothy F. Keaney | /s/ Francis J. Shammo | |
Timothy F. Keaney | Francis J. Shammo | |
/s/ Gloria C. Larson | /s/ Thomas R. Watjen | |
Gloria C. Larson | Thomas R. Watjen | |
Date: February 24, 2016 | /s/ Richard P. McKenney |
Richard P. McKenney | |
President and Chief Executive Officer |
Date: February 24, 2016 | /s/ John F. McGarry |
John F. McGarry | |
Executive Vice President and Chief Financial Officer |
Date: February 24, 2016 | /s/ Richard P. McKenney |
Richard P. McKenney | |
President and Chief Executive Officer |
Date: February 24, 2016 | /s/ John F. McGarry |
John F. McGarry | |
Executive Vice President and Chief Financial Officer |
Document and Entity Information - USD ($) $ in Billions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Feb. 22, 2016 |
Jun. 30, 2015 |
|
Document Document and Entity Information [Abstract] | |||
Entity Registrant Name | Unum Group | ||
Trading Symbol | UNM | ||
Entity Central Index Key | 0000005513 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 238,856,627 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 8.8 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Investments | ||
Amortized Cost of Fixed Maturity Securities | $ 39,658.7 | $ 38,803.4 |
Stockholders' Equity | ||
Common Stock, Par | $ 0.10 | $ 0.10 |
Common Stock, Authorized | 725,000,000 | 725,000,000 |
Common Stock, Issued | 302,702,811 | 301,834,556 |
Treasury Stock, Shares | 61,785,466 | 49,524,849 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Statement of Comprehensive Income [Abstract] | |||
Change in Net Unrealized Gain on Securities Before Adjustment, Tax Expense (Benefit) | $ (892.5) | $ 725.8 | $ (1,102.8) |
Change in Adjustment to Deferred Acquisition Costs and Reserves for Future Policy and Contract Benefits, Net of Reinsurance, Tax Expense (Benefit) | 856.6 | (665.1) | 743.3 |
Change in Net Gain on Cash Flow Hedges, Tax Benefit | 4.3 | 2.0 | 1.3 |
Change in Foreign Currency Translation Adjustment, Tax Benefit | 0.1 | 0.0 | 0.0 |
Change in Unrecognized Pension and Postretirement Benefit Costs, Tax Expense (Benefit) | $ 3.2 | $ (92.4) | $ 185.2 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Retained Earnings | |||
Dividends to Stockholders, per common share | $ 0.70 | $ 0.620 | $ 0.55 |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Cash Flows from Operating Activities | |||
Net Income | $ 867.1 | $ 402.1 | $ 847.0 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | |||
Change in Receivables | 29.3 | (21.5) | (196.7) |
Change in Deferred Acquisition Costs | (87.4) | (83.2) | (47.9) |
Change in Insurance Reserves and Liabilities | 293.9 | 972.2 | 572.5 |
Change in Income Taxes | 180.5 | (18.6) | (23.5) |
Change in Other Accrued Liabilities | 20.0 | 105.2 | 21.2 |
Non-cash Components of Net Investment Income | (194.1) | (195.7) | (226.3) |
Net Realized Investment (Gain) Loss | 43.8 | (16.1) | (6.8) |
Depreciation | 99.5 | 87.9 | 84.8 |
Other, Net | 39.5 | (8.7) | 7.2 |
Net Cash Provided by Operating Activities | 1,292.1 | 1,223.6 | 1,031.5 |
Cash Flows from Investing Activities | |||
Proceeds from Sales of Fixed Maturity Securities | 880.1 | 450.1 | 1,040.5 |
Proceeds from Maturities of Fixed Maturity Securities | 2,417.0 | 1,819.4 | 2,146.4 |
Proceeds from Sales and Maturities of Other Investments | 347.0 | 235.0 | 243.4 |
Purchase of Fixed Maturity Securities | (4,305.3) | (2,918.4) | (3,553.6) |
Purchase of Other Investments | (409.5) | (285.2) | (363.7) |
Net Sales (Purchases) of Short-term Investments | 170.6 | (69.3) | 551.3 |
Net Increase (Decrease) in Payables for Collateral on Investments | 341.6 | (3.8) | (378.2) |
Acquisition of Business | (54.3) | 0.0 | 0.0 |
Net Purchases of Property and Equipment | (100.2) | (114.5) | (105.5) |
Other, Net | 0.0 | 0.1 | 0.2 |
Net Cash Used by Investing Activities | (713.0) | (886.6) | (419.2) |
Cash Flows from Financing Activities | |||
Issuance of Long-term Debt | 271.4 | 347.2 | 0.0 |
Long-term Debt Repayments | (226.3) | (186.6) | (116.2) |
Cost Related to Early Retirement of Debt | 0.0 | (13.2) | 0.0 |
Issuance of Common Stock | 6.4 | 12.3 | 11.4 |
Repurchase of Common Stock | (417.9) | (306.0) | (317.2) |
Dividends Paid to Stockholders | (174.2) | (159.4) | (146.5) |
Other, Net | (28.1) | (22.9) | (27.0) |
Net Cash Used by Financing Activities | (568.7) | (328.6) | (595.5) |
Net Increase in Cash and Bank Deposits | 10.4 | 8.4 | 16.8 |
Cash and Bank Deposits at Beginning of Year | 102.5 | 94.1 | 77.3 |
Cash and Bank Deposits at End of Year | $ 112.9 | $ 102.5 | $ 94.1 |
Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies | Basis of Presentation: The accompanying consolidated financial statements of Unum Group and its subsidiaries (the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). Such accounting principles differ from statutory accounting principles (see Note 15). Intercompany transactions have been eliminated. Description of Business: We are the largest provider of group and individual disability products in the United States and the United Kingdom. We also provide a complementary portfolio of other insurance products, including life insurance, employer- and employee-paid group benefits, and other related services, either as stand-alone products or combined with other coverages. We market our products primarily through the workplace. We have three principal operating business segments: Unum US, Unum UK, and Colonial Life. Our other reporting segments are Closed Block and Corporate. See Note 13 for further discussion of our operating segments. Use of Estimates: The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein. Fixed Maturity Securities: Fixed maturity securities include long-term bonds and redeemable preferred stocks. Our fixed maturity securities are classified as available-for-sale and reported at fair value. Changes in the fair value of available-for-sale fixed maturity securities, except for amounts related to other-than-temporary impairment losses recognized in earnings, are reported as a component of other comprehensive income. These amounts are net of income tax and valuation adjustments to deferred acquisition costs and reserves for future policy and contract benefits which would have been recorded had the related unrealized gain or loss on these securities been realized. Interest income is recorded as part of net investment income when earned, using an effective yield method giving effect to amortization of premium and accretion of discount. Included within fixed maturity securities are mortgage-backed and asset-backed securities. We recognize investment income on these securities using a constant effective yield based on projected prepayments of the underlying loans and the estimated economic life of the securities. Actual prepayment experience is reviewed periodically, and effective yields are recalculated when differences arise between prepayments originally projected and the actual prepayments received and currently projected. The effective yield is recalculated on a retrospective basis, and the adjustment is reflected in net investment income. For fixed maturity securities on which collection of investment income is uncertain, we discontinue the accrual of investment income and recognize investment income when interest and dividends are received. Payment terms specified for fixed maturity securities may include a prepayment penalty for unscheduled payoff of the investment. Prepayment penalties are recognized as investment income when received. In determining when a decline in fair value below amortized cost of a fixed maturity security is other than temporary, we evaluate available information, both positive and negative, in reaching our conclusions. In particular, we consider the strength of the issuer's balance sheet, its debt obligations and near-term funding requirements, cash flow and liquidity, the profitability of its core businesses, the availability of marketable assets which could be sold to increase liquidity, its industry fundamentals and regulatory environment, and its access to capital markets. Although all available and applicable factors are considered in our analysis, our expectation of recovering the entire amortized cost basis of the security, whether we intend to sell the security, whether it is more likely than not that we will be required to sell the security before recovery of its amortized cost, and whether the security is current on principal and interest payments are the most critical factors in determining whether impairments are other than temporary. The significance of the decline in value and the length of time during which there has been a significant decline are also important factors, but we generally do not record an impairment loss based solely on these two factors, since often other more relevant factors will impact our evaluation of a security. If we determine that the decline in value of an investment is other than temporary, the investment is written down to fair value, and an impairment loss is recognized in the current period, either in earnings or in both earnings and other comprehensive income, as applicable. Other-than-temporary impairment losses on fixed maturity securities which we intend to sell or more likely than not will be required to sell before recovery in value are recognized in earnings and equal the entire difference between the security's amortized cost basis and its fair value. For securities which we do not intend to sell and it is not more likely than not that we will be required to sell before recovery in value, other-than-temporary impairment losses recognized in earnings generally represent the difference between the amortized cost of the security and the present value of our best estimate of cash flows expected to be collected, discounted using the effective interest rate implicit in the security at the date of acquisition. For fixed maturity securities for which we have recognized an other-than-temporary impairment loss through earnings, if through subsequent evaluation there is a significant increase in expected cash flows, the difference between the new amortized cost basis and the cash flows expected to be collected is accreted as net investment income over the remaining life of the investment. See Notes 2 and 3. Mortgage Loans: Mortgage loans are generally held for investment and are carried at amortized cost less an allowance for probable losses. Interest income is accrued on the principal amount of the loan based on the loan's contractual interest rate. Prepayment penalties are recognized as investment income when received. For mortgage loans on which collection of interest income is uncertain, we discontinue the accrual of interest and recognize it in the period when an interest payment is received. We typically do not resume the accrual of interest on mortgage loans on nonaccrual status until there are significant improvements in the underlying financial condition of the borrower. We consider a loan to be delinquent if full payment is not received in accordance with the contractual terms of the loan. We evaluate each of our mortgage loans individually for impairment and assign an internal credit quality rating based on a comprehensive rating system used to evaluate the credit risk of the loan. Although all available and applicable factors are considered in our analysis, loan-to-value and debt service coverage ratios are the most critical factors in determining impairment. If we determine that it is probable we will be unable to collect all amounts due under the contractual terms of a mortgage loan, we establish an allowance for credit loss. If we expect to foreclose on the property, the amount of the allowance typically equals the excess carrying value of the mortgage loan over the fair value of the underlying collateral. If we expect to retain the mortgage loan until payoff, the allowance equals the excess carrying value of the mortgage loan over the expected future cash flows of the loan. Additions and reductions to our allowance for credit losses on mortgage loans are reported as a component of net realized investment gains and losses. We do not purchase mortgage loans with existing credit impairments. See Note 3. Policy Loans: Policy loans are presented at unpaid balances directly related to policyholders. Interest income is accrued on the principal amount of the loan based on the loan's contractual interest rate. Included in policy loans are $3,150.1 million and $3,068.4 million of policy loans ceded to reinsurers at December 31, 2015 and 2014, respectively. Other Long-term Investments: Other long-term investments are comprised primarily of tax credit partnerships and private equity partnerships. Tax credit partnerships in which we have invested were formed for the purpose of investing in the construction and rehabilitation of low-income housing. Because the partnerships are structured such that there is no return of principal, the primary sources of investment return from our tax credit partnerships are tax credits and tax benefits derived from passive losses on the investments, both of which may exhibit variability over the life of the investment. These partnerships are accounted for using either the proportional or the effective yield method, depending primarily on whether the tax credits are guaranteed through a letter of credit, a tax indemnity agreement, or another similar arrangement. Tax credits received from these partnerships are reported in our consolidated statements of income as either a reduction of premium tax or a reduction of income tax. The amortization of the principal amount invested in these partnerships is reported as a component of either premium tax or income tax. Our investments in private equity partnerships are passive in nature. The underlying investments held by these partnerships include both equity and debt securities and are accounted for using the equity or cost method, depending on the level of ownership and the degree of our influence over partnership operating and financial policies. For partnerships accounted for under the equity method, our portion of partnership earnings is reported as a component of net investment income in our consolidated statements of income. For those partnerships accounted for under the cost method, we record income received from partnership distributions as either a component of net investment income or net realized investment gain or loss, in accordance with the source of the funds distributed from the partnership. See Notes 2 and 3. Short-term Investments: Short-term investments are carried at cost. Short-term investments include investments maturing within one year, such as corporate commercial paper and U.S. Treasury bills, bank term deposits, and other cash accounts and cash equivalents earning interest. See Note 2. Cash and Bank Deposits: Cash and bank deposits include cash on hand and non-interest bearing cash and deposit accounts. Derivative Financial Instruments: Derivative financial instruments (including certain derivative instruments embedded in other contracts) are recognized as either other long-term investments or other liabilities in our consolidated balance sheets and are reported at fair value. The accounting for a derivative depends on whether it has been designated and qualifies as part of a hedging relationship, and further, on the type of hedging relationship. To qualify for hedge accounting, at the inception of the hedging transaction, we formally document the risk management objective and strategy for undertaking the hedging transaction, as well as the designation of the hedge as either a fair value hedge or a cash flow hedge. Included in this documentation is how the hedging instrument is expected to hedge the designated risk(s) related to specific assets or liabilities on the balance sheet or to specific forecasted transactions as well as a description of the method that will be used to retrospectively and prospectively assess the hedging instrument's effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk(s) of the hedged item. Hedge effectiveness is formally assessed at inception and periodically throughout the life of the designated hedging relationship, using qualitative and quantitative methods. Qualitative methods include comparison of critical terms of the derivative to the hedged item. Quantitative methods include regression or other statistical analysis of changes in fair value or cash flows associated with the hedge relationship. Changes in the fair value of a derivative designated as a fair value hedge, including amounts measured as ineffectiveness, and changes in the fair value of the hedged item attributable to the risk being hedged are recognized in earnings as a component of net realized investment gain or loss during the period of change in fair value. The gain or loss on the termination of a fair value hedge is recognized in earnings as a component of net realized investment gain or loss during the period in which the termination occurs. When interest rate swaps are used in hedge accounting relationships, periodic settlements are recorded in the same income statement line as the related settlements of the hedged items. To the extent it is effective, changes in the fair value of a derivative designated as a cash flow hedge are reported in other comprehensive income and reclassified into earnings and reported on the same income statement line item as the hedged item and in the same period or periods during which the hedged item affects earnings. The ineffective portion of the hedge, if any, is recognized in earnings as a component of net realized investment gain or loss during the period of change in fair value. The gain or loss on the termination of an effective cash flow hedge is reported in other comprehensive income and reclassified into earnings and reported on the same income statement line item as the hedged item and in the same period or periods during which the hedged item affects earnings. Gains or losses on the termination of ineffective fair value or cash flow hedges are reported in earnings as a component of net realized investment gain or loss. In the event a hedged item is disposed of or the anticipated transaction being hedged is no longer likely to occur, we will terminate the related derivative and recognize the gain or loss on termination in current earnings as a component of net realized investment gain or loss. In the event a hedged item is disposed of subsequent to the termination of the hedging transaction, we reclassify any remaining gain or loss on the cash flow hedge out of accumulated other comprehensive income into earnings as a component of the same income statement line item wherein we report the gain or loss on disposition of the hedged item. For a derivative not designated as a hedging instrument, changes in the fair value of the derivative, together with the payment of periodic fees, if applicable, are recognized in earnings as a component of net realized investment gain or loss during the period of change in fair value. Cash flow activity from the settlement of derivative contracts is reported in the consolidated statements of cash flows as a component of proceeds from sales and maturities of other investments. In our consolidated balance sheets, we do not offset fair value amounts recognized for derivatives executed with the same counterparty under a master netting agreement and fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from those master netting agreements. See Notes 2, 3 and 4. Fair Value Measurement: Certain assets and liabilities are reported at fair value in our consolidated balance sheets and in our notes to our consolidated financial statements. We define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Therefore, fair value represents an exit price, not an entry price. The exit price objective applies regardless of our intent and/or ability to sell the asset or transfer the liability at the measurement date. Assets or liabilities with readily available actively quoted prices or for which fair value can be measured from actively quoted prices in active markets generally have more pricing observability and less judgment utilized in measuring fair value. When actively quoted prices are not available, fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical assets or liabilities, or other observable inputs. If observable inputs are not available, unobservable inputs and/or adjustments to observable inputs requiring management judgment are used to determine fair value. We categorize our assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the significance of the inputs. The fair value hierarchy gives the highest priority to inputs which are unadjusted and represent quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). See Note 2. Realized Investment Gains and Losses: Realized investment gains and losses are reported as a component of revenue in the consolidated statements of income and are based upon specific identification of the investments sold. See Note 3. Deferred Acquisition Costs: Incremental direct costs associated with the successful acquisition of new or renewal insurance contracts have been deferred. Such costs include commissions, other agency compensation, certain selection and policy issue expenses, and certain field expenses. Acquisition costs that do not vary with the production of new business, such as commissions on group products which are generally level throughout the life of the policy, are excluded from deferral. Deferred acquisition costs are subject to recoverability testing at the time of policy issue and loss recognition testing in subsequent years. Deferred acquisition costs related to non-interest sensitive policies are amortized in proportion to the premium income we expect to receive over the life of the policies. Deferred acquisition costs related to interest sensitive policies are amortized over the lives of the policies in relation to the present value of estimated gross profits from surrender charges, mortality margins, investment returns, and expense margins. Deviations from projections result in a change to the rate of amortization in the period during which such events occur. Generally, the amortization periods for these policies approximate the estimated lives of the policies. For certain products, policyholders can elect to modify product benefits, features, rights, or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacement transactions. Internal replacement transactions wherein the modification does not substantially change the policy are accounted for as continuations of the replaced contracts. Unamortized deferred acquisition costs from the original policy continue to be amortized over the expected life of the new policy, and the costs of replacing the policy are accounted for as policy maintenance costs and expensed as incurred. Internal replacement transactions, principally on group contracts, that result in a policy that is substantially changed are accounted for as an extinguishment of the original policy and the issuance of a new policy. Unamortized deferred acquisition costs on the original policy that was replaced are immediately expensed, and the costs of acquiring the new policy are capitalized and amortized in accordance with our accounting policies for deferred acquisition costs. Loss recognition is performed on an annual basis, or more frequently if appropriate, using best estimate assumptions as to future experience as of the date of the test. Insurance contracts are grouped for each major product line within a segment when we perform the loss recognition tests. If loss recognition testing indicates that deferred acquisition costs are not recoverable, the deficiency is charged to expense. Goodwill: Goodwill is the excess of the amount paid to acquire a business over the fair value of the net assets acquired. We review the carrying amount of goodwill for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the carrying amount might not be recoverable. Goodwill impairment testing compares the fair value of a reporting unit with its carrying amount, including goodwill. The fair values of the reporting units are determined using discounted cash flow models. The critical estimates necessary in determining fair value are projected earnings and the discount rate. We set our discount rate assumption based on an expected risk adjusted cost of capital. If the fair value of the reporting unit to which the goodwill relates is less than the carrying amount of the unamortized goodwill, the carrying amount is reduced with a corresponding charge to expense. Property and Equipment: Property and equipment is reported at cost less accumulated depreciation, which is calculated on the straight-line method over the estimated useful life. The accumulated depreciation for property and equipment was $902.6 million and $823.3 million as of December 31, 2015 and 2014, respectively. Value of Business Acquired: Value of business acquired represents the present value of future profits recorded in connection with the acquisition of a block of insurance policies. The asset is amortized based upon expected future premium income for non-interest sensitive insurance policies and estimated future gross profits from surrender charges, mortality margins, investment returns, and expense margins for interest sensitive insurance policies. The value of business acquired, which is included in other assets in our consolidated balance sheets, was $24.0 million and $15.2 million at December 31, 2015 and 2014, respectively. The accumulated amortization for value of business acquired was $133.1 million and $134.7 million as of December 31, 2015 and 2014, respectively. The amortization of value of business acquired, which is included in other expenses in the consolidated statements of income, was $4.6 million, $3.5 million, and $4.5 million for the years ended December 31, 2015, 2014, and 2013, respectively. We periodically review the carrying amount of value of business acquired using the same methods used to evaluate deferred acquisition costs. Policy and Contract Benefits: Policy and contract benefits represent amounts paid and expected to be paid based on reported losses and estimates of incurred but not reported losses for non-interest sensitive life and accident and health products. For interest sensitive products, benefits are the amounts paid and expected to be paid on insured claims in excess of the policyholders' policy fund balances. Reserves for Policy and Contract Benefits: Policy reserves represent future policy and contract benefits for claims not yet incurred. Policy reserves for non-interest sensitive life and accident and health products are determined using the net level premium method. The reserves are calculated based upon assumptions as to interest, persistency, morbidity, and mortality that were appropriate at the date of issue. Discount rate assumptions are based on actual and expected net investment returns. Persistency assumptions are based on our actual historical experience adjusted for future expectations. Claim incidence and claim resolution rate assumptions related to morbidity and mortality are based on actual experience or industry standards adjusted as appropriate to reflect our actual experience and future expectations. The assumptions vary by plan, year of issue, and policy duration and include a provision for adverse deviation. Policy reserves for group single premium annuities are developed on a net single premium method. The reserves are calculated based on assumptions as to interest, mortality, and retirement that were appropriate at the date of issue. Mortality assumptions are based upon industry standards adjusted as appropriate to reflect our actual experience and future expectations. The assumptions vary by year of issue. Policy reserves for interest sensitive products are principally policyholder account values. Policy reserves require ongoing loss recognition testing. We perform loss recognition tests on our policy reserves annually, or more frequently if appropriate, using best estimate assumptions as of the date of the test, without a provision for adverse deviation. We group the policy reserves for each major product line within a segment when we perform the loss recognition tests. If the policy reserves determined using these best estimate assumptions are higher than our existing policy reserves net of any deferred acquisition cost balance, the existing policy reserves are increased or deferred acquisition costs are reduced to immediately recognize the deficiency. This becomes the new basis for policy reserves going forward, subject to future loss recognition testing. Claim reserves represent future policy and contract benefits for claims that have been incurred or are estimated to have been incurred but not yet reported to us. Our claim reserves relate primarily to disability policies and are calculated based on assumptions as to interest and claim resolution rates that are currently appropriate. Claim resolution rate assumptions are based on our actual experience. The interest rate assumptions used for discounting claim reserves are based on projected portfolio yield rates, after consideration for defaults and investment expenses, for the assets supporting the liabilities for the various product lines. Unlike policy reserves for which assumptions are generally established and locked in at the time of policy issuance, claim reserves are subject to revision as current claim experience and projections of future factors affecting claim experience change. See Note 6. Policyholders' Funds: Policyholders' funds represent customer deposits plus interest credited at contract rates. We control interest rate risk by investing in quality assets which have an aggregate duration that closely matches the expected duration of the liabilities. Income Tax: Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial statement purposes and the amounts used for income tax purposes. Deferred taxes have been measured using enacted statutory income tax rates and laws that are currently in effect. We record deferred tax assets for tax positions taken in the U.S. and other tax jurisdictions based on our assessment of whether a position is more likely than not to be sustained upon examination based solely on its technical merits. A valuation allowance is established for deferred tax assets when it is more likely than not that an amount will not be realized. See Note 7. Short-term and Long-term Debt: Debt is generally carried at the unpaid principal balance, net of unamortized discount or premium. Short-term debt consists of debt due within the next twelve months, including that portion of debt otherwise classified as long-term. Original issue discount or premium as well as debt issue costs are recognized as a component of interest expense over the period the debt is expected to be outstanding. The carrying amount of long-term debt that is part of a fair value hedge program includes an adjustment to reflect the effect of the change in fair value attributable to the risk being hedged. Net interest settlements for fair value hedges on our long-term debt are recognized as a component of interest expense. See Note 8. Treasury Stock and Retirement of Common Stock: Treasury stock is reflected as a reduction of stockholders' equity at cost. When shares are retired, the par value is removed from common stock, and the excess of the repurchase price over par is allocated between additional paid-in capital and retained earnings. See Note 10. Revenue Recognition: Our non-interest sensitive life and accident and health products are long-duration contracts, and premium income is recognized as revenue when due from policyholders. If the contracts are experience rated, the estimated ultimate premium is recognized as revenue over the period of the contract. The estimated ultimate premium, which is revised to reflect current experience, is based on estimated claim costs, expenses, and profit margins. For interest sensitive products, the amounts collected from policyholders are considered deposits, and only the deductions during the period for cost of insurance, policy administration, and surrenders are included in revenue. Policyholders' funds represent funds deposited by contract holders and are not included in revenue. Fees from our administrative-services only and family medical leave products are reported as other income when services are rendered. Reinsurance: We routinely enter into reinsurance agreements with other insurance companies to spread risk and thereby limit losses from large exposures. For each of our reinsurance agreements, we determine if the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. If we determine that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, we record the agreement using the deposit method of accounting. Reinsurance activity is accounted for on a basis consistent with the terms of the reinsurance contracts and the accounting used for the original policies issued. Premium income and benefits and change in reserves for future benefits are presented in our consolidated statements of income net of reinsurance ceded. Ceded liabilities for policy and contract benefits, future policy and contract benefits, and unearned premiums are reported on a gross basis in our consolidated balance sheets, as are ceded policy loans. Our reinsurance recoverable includes the balances due from reinsurers under the terms of the reinsurance agreements for these ceded balances as well as settlement amounts currently due. Where applicable, gains or losses on reinsurance transactions are deferred and amortized into earnings based upon expected future premium income for non-interest sensitive insurance policies and estimated future gross profits for interest sensitive insurance policies. The deferred gain on reinsurance included in other liabilities in our consolidated balance sheets at December 31, 2015 and 2014 was $31.9 million and $41.7 million, respectively. Under ceded reinsurance agreements wherein we are not relieved of our legal liability to our policyholders, if the assuming reinsurer is unable to meet its obligations, we remain contingently liable. We evaluate the financial condition of reinsurers and monitor concentration of credit risk to minimize this exposure. We may also require assets in trust, letters of credit, or other acceptable collateral to support our reinsurance recoverable balances. In the event that reinsurers do not meet their obligations to us under the terms of the reinsurance agreements, certain amounts reported in our reinsurance recoverable could become uncollectible, in which case the reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. See Note 12. Premium Tax Expense: Premium tax expense is included in other expenses in the consolidated statements of income. For the years ended December 31, 2015, 2014, and 2013, premium tax expense was $146.5 million, $139.2 million, and $137.0 million, respectively. Stock-Based Compensation: The cost of stock-based compensation is generally measured based on the grant-date fair value of the award. The Black-Scholes options valuation model is used for estimating the fair value of stock options, and the Monte-Carlo valuation model is used for estimating the fair value of performance share units. Restricted stock units are valued based on the fair value of common stock at the grant date, and cash-settled awards are measured each reporting period based on the current stock price. Stock-based awards are expensed over the requisite service period, or for performance share units over the requisite service period, or remaining service period, if and when it becomes probable that the performance conditions will be satisfied, with an offsetting increase to additional paid-in capital in stockholders' equity. See Note 11. Earnings Per Share: We compute basic earnings per share by dividing net income by the weighted average number of common shares outstanding for the period. Earnings per share assuming dilution is computed by dividing net income by the weighted average number of shares outstanding for the period plus the shares representing the dilutive effect of stock-based awards. In computing earnings per share assuming dilution, only potential common shares resulting from stock-based awards that are dilutive (those that reduce earnings per share) are included. We use the treasury stock method to account for the effect of outstanding stock options and nonvested stock awards on the computation of earnings per share assuming dilution. See Note 10. Translation of Foreign Currency: Revenues and expenses of our foreign operations are translated at average exchange rates. Assets and liabilities are translated at the rate of exchange on the balance sheet dates. The translation gain or loss is generally reported in accumulated other comprehensive income, net of deferred tax. We do not provide for deferred taxes to the extent unremitted foreign earnings are deemed permanently invested. Accounting for Participating Individual Life Insurance: Participating policies issued by one of our subsidiaries prior to its 1986 conversion from a mutual to a stock life insurance company will remain participating as long as the policies remain in-force. A Participation Fund Account (PFA) was established for the benefit of all such individual participating life and annuity policies and contracts. The assets of the PFA provide for the benefit, dividend, and certain expense obligations of the participating individual life insurance policies and annuity contracts. The assets of the PFA were $338.8 million and $358.6 million at December 31, 2015 and 2014, respectively. Accounting Updates Adopted in 2015:
Accounting Updates Outstanding:
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Fair Values of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Financial Instruments | Presented as follows are the carrying amounts and fair values of financial instruments. The carrying values of financial instruments such as short-term investments, cash and bank deposits, accounts and premiums receivable, accrued investment income, and securities lending agreements approximate fair value due to the short-term nature of the instruments. As such, these financial instruments are not included in the following chart.
The methods and assumptions used to estimate fair values of financial instruments are discussed as follows. Fair Value Measurements for Financial Instruments Not Carried at Fair Value Mortgage Loans: Fair values are estimated using discounted cash flow analyses and interest rates currently being offered for similar loans to borrowers with similar credit ratings and maturities. Loans with similar characteristics are aggregated for purposes of the calculations. These financial instruments are assigned a Level 2 within the fair value hierarchy. Policy Loans: Fair values for policy loans, net of reinsurance ceded, are estimated using discounted cash flow analyses and interest rates currently being offered to policyholders with similar policies. Carrying amounts for ceded policy loans, which equal $3,150.1 million and $3,068.4 million as of December 31, 2015 and 2014, respectively, approximate fair value and are reported on a gross basis in our consolidated balance sheets. A change in interest rates for ceded policy loans will not impact our financial position because the benefits and risks are fully ceded to reinsuring counterparties. These financial instruments are assigned a Level 3 within the fair value hierarchy. Miscellaneous Long-term Investments: Carrying amounts for tax credit partnerships equal the unamortized balance of our contractual commitments and approximate fair value. Fair values for private equity partnerships are primarily derived from net asset values provided by the general partner in the partnerships' financial statements. Our private equity partnerships represent funds that are primarily invested in railcar leasing, the financial services industry, mezzanine debt, and bank loans. Distributions received from the funds arise from income generated by the underlying investments as well as the liquidation of the underlying investments. As of December 31, 2015, we estimate that the underlying assets of the funds will be liquidated over the next one to twelve years. These financial instruments are assigned a Level 3 within the fair value hierarchy. Our shares of FHLB common stock are carried at cost, which approximates fair value. These financial instruments are considered restricted investments and are assigned a Level 2 within the fair value hierarchy. Policyholders' Funds: Policyholders' funds are comprised primarily of deferred annuity products and supplementary contracts without life contingencies and represent customer deposits plus interest credited at contract rates. Carrying amounts approximate fair value. These financial instruments are assigned a Level 3 within the fair value hierarchy. Fair values for insurance contracts other than investment contracts are not required to be disclosed. However, the fair values of liabilities under all insurance contracts are taken into consideration in our overall management of interest rate risk, which seeks to minimize exposure to changing interest rates through the matching of investment maturities with amounts due under insurance contracts. Short-term Debt: Fair values for short-term debt are determined based on prices from independent pricing services that generally use observable inputs for securities or comparable securities in active markets in their valuation techniques. These financial instruments are assigned a Level 1. Long-term Debt: Fair values for long-term debt are obtained from independent pricing services or discounted cash flow analyses based on current incremental borrowing rates for similar types of borrowing arrangements. Debt instruments which are valued by pricing services using active trades for which there was current market activity in that specific debt instrument have fair values of $956.4 million and $849.7 million as of December 31, 2015 and 2014, respectively, and are assigned a Level 1 within the fair value hierarchy. Debt instruments which are valued based on prices from pricing services that generally use observable inputs for securities or comparable securities in active markets in their valuation techniques have fair values of $1,689.5 million and $2,062.9 million as of December 31, 2015 and 2014, respectively, and are assigned a Level 2. FHLB Funding Agreements: Funding agreements with the FHLB represent cash advances used for the purpose of investing in fixed maturity securities. Carrying amounts approximate fair value and are assigned a Level 2 within the fair value hierarchy. Unfunded Commitments to Investment Partnerships: Unfunded equity commitments represent amounts that we have committed to fund certain investment partnerships. These commitments are legally binding, subject to the partnerships meeting specified conditions. Carrying amounts approximate fair value and are assigned a Level 2 within the fair value hierarchy. Fair Value Measurements for Financial Instruments Carried at Fair Value We report fixed maturity securities, derivative financial instruments, and unrestricted equity securities at fair value in our consolidated balance sheets. The degree of judgment utilized in measuring the fair value of financial instruments generally correlates to the level of pricing observability. Financial instruments with readily available active quoted prices or for which fair value can be measured from actively quoted prices in active markets generally have more pricing observability and less judgment utilized in measuring fair value. An active market for a financial instrument is a market in which transactions for an asset or a similar asset occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value and should be used to measure fair value whenever available. Conversely, financial instruments rarely traded or not quoted have less observability and are measured at fair value using valuation techniques that require more judgment. Pricing observability is generally impacted by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction, and overall market conditions. Valuation techniques used for assets and liabilities accounted for at fair value are generally categorized into three types. The market approach uses prices and other relevant information from market transactions involving identical or comparable assets or liabilities. The income approach converts future amounts, such as cash flows or earnings, to a single present amount, or a discounted amount. The cost approach is based upon the amount that currently would be required to replace the service capacity of an asset, or the current replacement cost. We use valuation techniques that are appropriate in the circumstances and for which sufficient data are available that can be obtained without undue cost and effort. In some cases, a single valuation technique will be appropriate (for example, when valuing an asset or liability using quoted prices in an active market for identical assets or liabilities). In other cases, multiple valuation techniques will be appropriate. If we use multiple valuation techniques to measure fair value, we evaluate and weigh the results, as appropriate, considering the reasonableness of the range indicated by those results. A fair value measurement is the point within that range that is most representative of fair value in the circumstances. The selection of the valuation method(s) to apply considers the definition of an exit price and depends on the nature of the asset or liability being valued. For assets and liabilities accounted for at fair value, we generally use valuation techniques consistent with the market approach, and to a lesser extent, the income approach. We believe the market approach valuation technique provides more observable data than the income approach, considering the type of investments we hold. Our fair value measurements could differ significantly based on the valuation technique and available inputs. When using a pricing service, we obtain the vendor's pricing documentation to ensure we understand their methodologies. We periodically review and approve the selection of our pricing vendors to ensure we are in agreement with their current methodologies. When markets are less active, brokers may rely more on models with inputs based on the information available only to the broker. Our internal investment management professionals, which include portfolio managers and analysts, monitor securities priced by brokers and evaluate their prices for reasonableness based on benchmarking to available primary and secondary market information. In weighing a broker quote as an input to fair value, we place less reliance on quotes that do not reflect the result of market transactions. We also consider the nature of the quote, particularly whether the quote is a binding offer. If prices in an inactive market do not reflect current prices for the same or similar assets, adjustments may be necessary to arrive at fair value. When relevant market data is unavailable, which may be the case during periods of market uncertainty, the income approach can, in suitable circumstances, provide a more appropriate fair value. During 2015, we have applied valuation techniques on a consistent basis to similar assets and liabilities and consistent with those techniques used at year end 2014. We use observable and unobservable inputs in measuring the fair value of our fixed maturity and equity securities. For securities categorized as Level 1, fair values equal active Trade Reporting and Compliance Engine (TRACE) pricing or unadjusted broker market maker prices. For securities categorized as Level 2 or Level 3, inputs that may be used in valuing each class of securities at any given time period are presented as follows. Actual inputs used to determine fair values will vary for each reporting period depending on the availability of inputs which may, at times, be affected by the lack of market liquidity.
The management of our investment portfolio includes establishing pricing policy and reviewing the reasonableness of sources and inputs used in developing pricing. We review all prices obtained to ensure they are consistent with a variety of observable market inputs and to verify the validity of a security's price. In the event we receive a vendor's market price that does not appear reasonable based on our market analysis, we may challenge the price and request further information about the assumptions and methodologies used by the vendor to price the security. We may change the vendor price based on a better data source such as an actual trade. We also review all price changes from the prior month which fall outside a predetermined corridor. The overall valuation process for determining fair values may include adjustments to valuations obtained from our pricing sources when they do not represent a valid exit price. These adjustments may be made when, in our judgment and considering our knowledge of the financial conditions and industry in which the issuer operates, certain features of the financial instrument require that an adjustment be made to the value originally obtained from our pricing sources. These features may include the complexity of the financial instrument, the market in which the financial instrument is traded, counterparty credit risk, credit structure, concentration, or liquidity. Additionally, an adjustment to the price derived from a model typically reflects our judgment of the inputs that other participants in the market for the financial instrument being measured at fair value would consider in pricing that same financial instrument. In the event an asset is sold, we test the validity of the fair value determined by our valuation techniques by comparing the selling price to the fair value determined for the asset in the immediately preceding month end reporting period. The parameters and inputs used to validate a price on a security may be adjusted for assumptions about risk and current market conditions on a quarter to quarter basis, as certain features may be more significant drivers of valuation at the time of pricing. Changes to inputs in valuations are not changes to valuation methodologies; rather, the inputs are modified to reflect direct or indirect impacts on asset classes from changes in market conditions. Fair values for derivatives other than embedded derivatives in modified coinsurance arrangements are based on market quotes or pricing models and represent the net amount of cash we would have paid or received if the contracts had been settled or closed as of the last day of the period. We analyze credit default swap spreads relative to the average credit spread embedded within the LIBOR-setting syndicate in determining the effect of credit risk on our derivatives' fair values. If net counterparty credit risk for a derivative asset is determined to be material and is not adequately reflected in the LIBOR-based fair value obtained from our pricing sources, we adjust the valuations obtained from our pricing sources. For purposes of valuing net counterparty risk, we measure the fair value of a group of financial assets and financial liabilities on the basis of the price that would be received to sell a net long position or transfer a net short position for a particular risk exposure in an orderly transaction between market participants at the measurement date under current market conditions. In regard to our own credit risk component, we adjust the valuation of derivative liabilities wherein the counterparty is exposed to our credit risk when the LIBOR-based valuation of our derivatives obtained from pricing sources does not effectively include an adequate credit component for our own credit risk. Fair values for our embedded derivative in a modified coinsurance arrangement are estimated using internal pricing models and represent the hypothetical value of the duration mismatch of assets and liabilities, interest rate risk, and third party credit risk embedded in the modified coinsurance arrangement. Certain of our investments do not have readily determinable market prices and/or observable inputs or may at times be affected by the lack of market liquidity. For these securities, we use internally prepared valuations combining matrix pricing with vendor purchased software programs, including valuations based on estimates of future profitability, to estimate the fair value. Additionally, we may obtain prices from independent third-party brokers to aid in establishing valuations for certain of these securities. Key assumptions used by us to determine fair value for these securities include risk-free interest rates, risk premiums, performance of underlying collateral (if any), and other factors involving significant assumptions which may or may not reflect those of an active market. At December 31, 2015, approximately 6.8 percent of our fixed maturity securities were valued using active trades from TRACE pricing or broker market maker prices for which there was current market activity in that specific security (comparable to receiving one binding quote). The prices obtained were not adjusted, and the assets were classified as Level 1, the highest category of the three-level fair value hierarchy classification wherein inputs are unadjusted and represent quoted prices in active markets for identical assets or liabilities. The remaining 93.2 percent of our fixed maturity securities were valued based on non-binding quotes or other observable and unobservable inputs, as discussed below.
We consider transactions in inactive or disorderly markets to be less representative of fair value. We use all available observable inputs when measuring fair value, but when significant other unobservable inputs and adjustments are necessary, we classify these assets or liabilities as Level 3. Fair value measurements by input level for financial instruments carried at fair value are as follows:
Transfers of assets between Level 1 and Level 2 are as follows:
Transfers between Level 1 and Level 2 occurred due to the change in availability of either a TRACE or broker market maker price. Depending on current market conditions, the availability of these Level 1 prices can vary from period to period. For fair value measurements of financial instruments that were transferred either into or out of Level 1 or 2, we reflect the transfers using the fair value at the beginning of the period. Changes in assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are as follows:
Realized and unrealized investment gains and losses presented in the preceding tables represent gains and losses only for the time during which the applicable financial instruments were classified as Level 3. The transfers between levels resulted primarily from a change in observability of three inputs used to determine fair values of the securities transferred: (1) transactional data for new issuance and secondary trades, (2) broker/dealer quotes and pricing, primarily related to changes in the level of activity in the market and whether the market was considered orderly, and (3) comparable bond metrics from which to perform an analysis. For fair value measurements of financial instruments that were transferred either into or out of Level 3, we reflect the transfers using the fair value at the beginning of the period. We believe this allows for greater transparency, as all changes in fair value that arise during the reporting period of the transfer are disclosed as a component of our Level 3 reconciliation. Gains (losses) which are included in earnings and are attributable to the change in unrealized gains or losses relating to assets or liabilities valued using significant unobservable inputs and still held at each year end were $(37.7) million and $3.3 million for the years ended December 31, 2015 and 2014, respectively. These amounts relate entirely to the changes in fair value of an embedded derivative in a modified coinsurance arrangement which are reported as realized investment gains and losses. The table below provides quantitative information regarding the significant unobservable inputs used in Level 3 fair value measurements derived from internal models. Certain securities classified as Level 3 are excluded from the table below due to limitations in our ability to obtain the underlying inputs used by external pricing sources.
Isolated increases in unobservable inputs other than market convention will result in a lower fair value measurement, whereas isolated decreases will result in a higher fair value measurement. The unobservable input for market convention is not sensitive to input movements. The projected liability cash flows used in the fair value measurement of our Level 3 embedded derivative are based on expected claim payments. If claim payments increase, the projected liability cash flows will increase, resulting in a decrease in the fair value of the embedded derivative. Decreases in projected liability cash flows will result in an increase in the fair value of the embedded derivative. |
Investments |
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Notes to Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Fixed Maturity Securities At December 31, 2015 and 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:
The following charts indicate the length of time our fixed maturity securities have been in a gross unrealized loss position.
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.
At December 31, 2015, the fair value of investment-grade fixed maturity securities was $40,056.3 million, with a gross unrealized gain of $4,264.4 million and a gross unrealized loss of $360.4 million. The gross unrealized loss on investment-grade fixed maturity securities was 56.1 percent of the total gross unrealized loss on fixed maturity securities. Unrealized losses on investment-grade fixed maturity securities principally relate to changes in interest rates or changes in market or sector credit spreads which occurred subsequent to the acquisition of the securities. At December 31, 2015, the fair value of below-investment-grade fixed maturity securities was $3,298.1 million, with a gross unrealized gain of $73.6 million and a gross unrealized loss of $281.9 million. The gross unrealized loss on below-investment-grade fixed maturity securities was 43.9 percent of the total gross unrealized loss on fixed maturity securities. Generally, below-investment-grade fixed maturity securities are more likely to develop credit concerns than investment-grade securities. At December 31, 2015, the unrealized losses in our below-investment-grade fixed maturity securities were generally due to credit spreads in certain industries or sectors and, to a lesser extent, credit concerns related to specific securities. For each specific security in an unrealized loss position, we believe that there are positive factors which mitigate credit concerns and that the securities for which we have not recorded an other-than-temporary impairment will recover in value. As of December 31, 2015, we held 269 individual investment-grade fixed maturity securities and 100 individual below-investment-grade fixed maturity securities that were in an unrealized loss position, of which 14 investment-grade fixed maturity securities and 32 below-investment-grade fixed maturity securities had been in an unrealized loss position continuously for over one year. In determining when a decline in fair value below amortized cost of a fixed maturity security is other than temporary, we evaluate the following factors:
While determining other-than-temporary impairments is a judgmental area, we utilize a formal, well-defined, and disciplined process to monitor and evaluate our fixed income investment portfolio, supported by issuer specific research and documentation as of the end of each period. The process results in a thorough evaluation of problem investments and the recording of losses on a timely basis for investments determined to have an other-than-temporary impairment. We held no fixed maturity securities as of December 31, 2015 and 2014, for which a portion of an other-than-temporary impairment was recognized in accumulated other comprehensive income. At December 31, 2015, we had commitments of $56.0 million to fund private placement fixed maturity securities, the amount of which may or may not be funded. Variable Interest Entities We invest in variable interests issued by variable interest entities. These investments include tax credit partnerships, private equity partnerships, and special purpose entities. For those variable interests that are not consolidated in our financial statements, we are not the primary beneficiary because we have neither the power to direct the activities that are most significant to economic performance nor the responsibility to absorb a majority of the expected losses. The determination of whether we are the primary beneficiary is performed at the time of our initial investment and at the date of each subsequent reporting period. As of December 31, 2015, the carrying amount of our variable interest entity investments that are not consolidated in our financial statements was $442.6 million, comprised of $202.1 million of tax credit partnerships and $240.5 million of private equity partnerships. These variable interest entity investments are reported as other long-term investments in our consolidated balance sheets. 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:
Contractually, we are a limited partner in these tax credit partnerships, and our maximum exposure to loss is limited to the carrying value of our investment, which includes $5.0 million of unfunded unconditional commitments at December 31, 2015. We also had commitments of $168.5 million to fund certain private equity partnerships at December 31, 2015, the amount of which may or may not be funded. We are the sole beneficiary of a special purpose entity which is consolidated in our financial statements. This entity is a securitized asset trust containing a highly rated bond for principal protection and a private equity partnership investment which we contributed into the trust at the time it was established. There are no restrictions on the assets held in this trust, and the trust is free to dispose of the assets at any time. The fair values of the bond and partnership were $148.0 million and $0.9 million, respectively, as of December 31, 2015 and $143.9 million and $1.4 million, respectively, as of December 31, 2014. The bond is reported as a component of fixed maturity securities, and the partnership is reported as a component of other long-term investments in our consolidated balance sheets. At December 31, 2015, we had no commitments to fund the underlying partnership, nor did we fund any amounts to the partnership during the years ended December 31, 2015, 2014, and 2013. Mortgage Loans Our mortgage loan portfolio is well diversified by both geographic region and property type to reduce risk of concentration. All of our mortgage loans are collateralized by commercial real estate. When issuing a new loan, our general policy is not to exceed a loan-to-value ratio, or the ratio of the loan balance to the estimated fair value of the underlying collateral, of 75 percent. We update the loan-to-value ratios at least every three years for each loan, and properties undergo a general inspection at least every two years. Our general policy for newly issued loans is to have a debt service coverage ratio greater than 1.25 times on a normalized 25 year amortization period. We update our debt service coverage ratios annually. Mortgage loans by property type and geographic region are presented below.
We evaluate each of our mortgage loans individually for impairment and assign an internal credit quality rating based on a comprehensive rating system used to evaluate the credit risk of the loan. The factors we use to derive our internal credit ratings may include the following:
Although all available and applicable factors are considered in our analysis, loan-to-value and debt service coverage ratios are the most critical factors in determining whether we will initially issue the loan and also in assigning values and determining impairment. We assign an overall rating to each loan using an internal rating scale of Aa (highest quality) to B (lowest quality). We review and adjust, as needed, our internal credit quality ratings on an annual basis. This review process is performed more frequently for mortgage loans deemed to have a higher risk of delinquency. Mortgage loans, sorted by the applicable credit quality indicators, are as follows:
A summary of our troubled debt restructurings is as follows:
We had no realized losses on loan foreclosures for the years ended December 31, 2015, 2014, and 2013 other than the initial impairment losses recognized prior to foreclosure. During 2014, we modified the terms of a mortgage loan with a carrying value of $18.1 million, recognized a $3.0 million realized loss on the troubled debt restructuring, and foreclosed on the property in a subsequent quarter of 2014. At December 31, 2015 and 2014, we held no mortgage loans that were greater than 90 days past due regarding principal and/or interest payments. There have been no changes to our accounting policies or methodology from the prior period regarding estimating the allowance for credit losses on our mortgage loans. The activity in the allowance for credit losses is as follows:
At December 31, 2014, we held one impaired mortgage loan with an unpaid principal balance of $14.6 million, a related allowance for credit losses of $1.5 million, and a carrying value of $13.1 million. During 2015, we increased the allowance for credit losses for the impaired loan by $0.5 million and recognized a corresponding investment loss. The loan was repaid in a subsequent quarter of 2015, with an additional de minimis loss recognized at repayment. Our average investment in impaired mortgage loans was $8.6 million, $26.7 million, and $14.9 million for the years ended December 31, 2015, 2014, and 2013, respectively. Interest income recognized on mortgage loans subsequent to impairment was $0.6 million, $1.0 million, and $0.8 million, for the years ended December 31, 2015, 2014, and 2013, respectively. At December 31, 2015, we had commitments of $67.0 million to fund certain commercial mortgage loans, the amount of which may or may not be funded. Transfers of Financial Assets To manage our cash position more efficiently, we may enter into repurchase agreements with unaffiliated financial institutions. We generally use repurchase agreements as a means to finance the purchase of invested assets or for short-term general business purposes until projected cash flows become available from our operations or existing investments. Our repurchase agreements are typically outstanding for less than 30 days. We post collateral through our repurchase agreement transactions whereby the counterparty commits to purchase securities with the agreement to resell them to us at a later, specified date. The fair value of collateral posted is generally 102 percent of the cash received. Our investment policy also permits us to lend fixed maturity securities to unaffiliated financial institutions in short-term securities lending agreements. These agreements increase our investment income with minimal risk. Our securities lending policy requires that a minimum of 102 percent of the fair value of the securities loaned be maintained as collateral. We may receive cash and/or securities as collateral under these agreements. Cash received as collateral is typically reinvested in short-term investments. If securities are received as collateral, we are not permitted to sell or re-post them. As of December 31, 2015, the carrying amount of fixed maturity securities loaned to third parties under our securities lending program was $181.6 million, for which we received collateral in the form of cash and securities of $29.0 million and $159.3 million, respectively. As of December 31, 2014, the carrying amount of fixed maturity securities loaned to third parties under our securities lending program was $176.5 million, for which we received collateral in the form of cash and securities of $58.4 million and $128.5 million, respectively. We had no outstanding repurchase agreements at December 31, 2015 or 2014. The remaining contractual maturities of our securities lending agreements disaggregated by class of collateral pledged are as follows:
Certain of our U.S. insurance subsidiaries are members of regional FHLBs. Membership, which requires that we purchase a minimum amount of FHLB common stock on which we receive dividends, provides access to low-cost funding. As of December 31, 2015, we owned $30.9 million of FHLB common stock and had obtained $350.0 million in advances from the regional FHLBs for the purpose of purchasing fixed maturity securities. As of December 31, 2015, the carrying value of fixed maturity securities and commercial mortgage loans posted as collateral to the regional FHLBs was $317.2 million and $96.0 million, respectively. Additional common stock purchases may be required, based on the amount of funds we borrow from the FHLBs. Offsetting of Financial Instruments We enter into master netting agreements with each of our derivatives counterparties. These agreements provide for conditional rights of set-off upon the occurrence of an early termination event. An early termination event is considered a default, and it allows the non-defaulting party to offset its contracts in a loss position against any gain positions or payments due to the defaulting party. Under our agreements, default type events are defined as failure to pay or deliver as contractually agreed, misrepresentation, bankruptcy, or merger without assumption. See Note 4 for further discussion of collateral related to our derivative contracts. We have securities lending agreements with unaffiliated financial institutions that post collateral to us in return for the use of our fixed maturity securities. A right of set-off exists that allows us to keep and apply collateral received in the event of default by the counterparty. Default within a securities lending agreement would typically occur if the counterparty failed to return the securities borrowed from us as contractually agreed. In addition, if we default by not returning collateral received, the counterparty has a right of set-off against our securities or any other amounts due to us. 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.
Net Investment Income Net investment income reported in our consolidated statements of income is as follows:
Realized Investment Gain and Loss Realized investment gains and losses are as follows:
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Derivative Financial Instruments |
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Notes to Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Purpose of Derivatives We are exposed to certain risks relating to our ongoing business operations. The primary risks managed by using derivative instruments are interest rate risk, risk related to matching duration for our assets and liabilities, foreign currency risk, and credit risk. Historically, we have utilized current and forward interest rate swaps and options on forward interest rate swaps and U.S. Treasury rates, current and forward currency swaps, forward treasury locks, currency forward contracts, forward contracts on specific fixed income securities, and credit default swaps. Transactions hedging interest rate risk are primarily associated with our individual and group long-term care and individual and group disability products. All other product portfolios are periodically reviewed to determine if hedging strategies would be appropriate for risk management purposes. We do not use derivative financial instruments for speculative purposes. Derivatives designated as cash flow hedges and used to reduce our exposure to interest rate and duration risk are as follows:
Derivatives designated as fair value hedges and used to reduce our exposure to interest rate and duration risk are as follows:
Derivatives designated as cash flow hedges and used to reduce our exposure to foreign currency risk are as follows:
Derivatives not designated as hedging instruments and used to reduce our exposure to foreign currency risk and credit losses on securities owned are as follows:
Derivative Risks The basic types of risks associated with derivatives are market risk (that the value of the derivative will be adversely impacted by changes in the market, primarily the change in interest and exchange rates) and credit risk (that the counterparty will not perform according to the terms of the contract). The market risk of the derivatives should generally offset the market risk associated with the hedged financial instrument or liability. To help limit the credit exposure of the derivatives, we enter into master netting agreements with our counterparties whereby contracts in a gain position can be offset against contracts in a loss position. We also typically enter into bilateral, cross-collateralization agreements with our counterparties to help limit the credit exposure of the derivatives. These agreements require the counterparty in a loss position to submit acceptable collateral with the other counterparty in the event the net loss position meets or exceeds an agreed upon amount. Our current credit exposure on derivatives, which is limited to the value of those contracts in a net gain position, including accrued interest receivable less collateral held, was $8.5 million at December 31, 2015. We held cash collateral from our counterparties of $36.4 million and $15.4 million at December 31, 2015 and 2014, respectively. We post either fixed maturity securities or cash as collateral to our counterparties. The carrying value of fixed maturity securities posted as collateral to our counterparties was $27.3 million and $67.0 million at December 31, 2015 and 2014, respectively. We had no cash posted as collateral to our counterparties at December 31, 2015 and 2014. See Note 3 for further discussion of our master netting agreements. The majority of our derivative instruments contain provisions that require us to maintain specified issuer credit ratings and financial strength ratings. Should our ratings fall below these specified levels, we would be in violation of the provisions, and our derivatives counterparties could terminate our contracts and request immediate payment. The aggregate fair value of all derivative instruments with credit risk-related contingent features that were in a liability position was $50.2 million and $92.9 million at December 31, 2015 and 2014, respectively. Derivative Transactions The table below summarizes, by notional amounts, the activity for each category of derivatives. The notional amounts represent the basis upon which our counterparty pay and receive amounts are calculated.
Cash Flow Hedges As of December 31, 2015 and 2014, we had $427.9 million and $618.0 million, respectively, notional amount of receive fixed, pay fixed, open current and forward foreign currency interest rate swaps to hedge fixed income foreign currency-denominated securities and U.S. dollar-denominated debt issued by one of our U.K. subsidiaries. During the fourth quarter of 2015, the remaining principal balance of the U.S. dollar-denominated debt issued by one of our U.K. subsidiaries matured, at which time we terminated the related foreign currency swaps with a notional amount of $150.0 million and reclassified the cash flow hedge gain of $8.2 million from accumulated other comprehensive income to realized investment gain in our consolidated statements of income. We also reclassified the remaining deferred cash flow hedge gain of $27.7 million from previously terminated derivatives associated with the hedge of this debt from accumulated other comprehensive income to realized investment gain. During 2014, we redeemed a portion of this debt and reclassified $13.1 million, the applicable portion of the deferred gain on cash flow hedges from the previously terminated derivatives associated with the hedge of this debt, from accumulated other comprehensive income to realized investment gain in our consolidated statements of income. See Note 8. During 2014, we novated certain of our foreign currency interest rate swaps with a notional amount of $97.0 million and a fair value of $(29.5) million to a new counterparty. At the time of novation, these derivatives were effective hedges, and we therefore deferred the unrealized loss into other comprehensive income and will recognize the loss in earnings during the periods in which the hedged items affect earnings. In conjunction with the novation, these derivatives were de-designated as hedges, and subsequent changes in their fair value will be reported in earnings as a component of net realized investment gain or loss. To establish a new effective hedging relationship with the fixed income foreign currency denominated securities previously hedged, we entered into $124.7 million notional amount of foreign currency interest rate swaps during 2014 whereby we receive fixed rate functional currency principal and interest in exchange for fixed rate payments in foreign currency. During 2013, we terminated, as scheduled, $150.0 million notional amount of received fixed, pay variable forward starting interest rate swaps used to hedge the anticipated purchase of fixed maturity securities. For the years ended December 31, 2015, 2014, and 2013 there was no material ineffectiveness related to our cash flow hedges, and no component of the derivative instruments' gain or loss was excluded from the assessment of hedge effectiveness. As of December 31, 2015, we expect to amortize approximately $53.6 million of net deferred gains on derivative instruments during the next twelve months. This amount will be reclassified from accumulated other comprehensive income into earnings and reported on the same income statement line item as the hedged item. The income statement line items that will be affected by this amortization are net investment income and interest and debt expense. Additional amounts that may be reclassified from accumulated other comprehensive income into earnings to offset the earnings impact of foreign currency translation of hedged items are not estimable. As of December 31, 2015, we are hedging the variability of future cash flows associated with forecasted transactions through the year 2038. Fair Value Hedges As of December 31, 2015 and 2014, we had $150.0 million notional amount of receive variable, pay fixed interest rate swaps to hedge the changes in fair value of certain fixed rate securities held. These swaps effectively convert the associated fixed rate securities into floating rate securities, which are used to fund our floating rate long-term debt. The change in fair value of the hedged fixed maturity securities attributable to the hedged benchmark interest rate resulted in a loss of $5.3 million, $5.3 million, and $11.5 million for the years ended December 31, 2015, 2014, and 2013, respectively, with an offsetting gain on the related interest rate swaps. As of December 31, 2015 and 2014, we had $600.0 million notional amount of receive fixed, pay variable interest rate swaps to hedge the changes in the fair value of certain fixed rate long-term debt. These swaps effectively convert the associated fixed rate long-term debt into floating rate debt and provide for a better matching of interest rates with our short-term investments, which have frequent interest rate resets similar to a floating rate security. The change in fair value of the hedged debt attributable to the hedged benchmark interest rate resulted in a gain (loss) of $0.1 million, $(5.5) million, and $21.1 million for the years ended December 31, 2015, 2014, and 2013, respectively, with an offsetting gain or loss on the related interest rate swaps. For the years ended December 31, 2015, 2014, and 2013, there was no material ineffectiveness related to our fair value hedges, and no component of the derivative instruments' gain or loss was excluded from the assessment of hedge effectiveness. There were no instances wherein we discontinued fair value hedge accounting due to a hedged firm commitment no longer qualifying as a fair value hedge. Derivatives not Designated as Hedging Instruments As of December 31, 2015 and 2014, we held $222.4 million notional amount of receive fixed, pay fixed, foreign currency interest rate swaps. During 2014, we entered into $125.4 million notional amount of foreign currency interest rate swaps in conjunction with the previously discussed transaction wherein we de-designated foreign currency interest rate swaps with a notional amount of $97.0 million. These derivatives were not designated as hedges, and as such, changes in fair value related to these derivatives will be reported in earnings as a component of net realized investment gain or loss. We expect the changes in fair value of these derivatives to materially offset the changes in fair value related to the de-designated derivatives. As of December 31, 2015 and 2014, we held $70.0 million and $97.0 million, respectively, notional amount of single name credit default swaps. We entered into these swaps in order to mitigate the credit risk associated with specific securities owned. We have an embedded derivative in a modified coinsurance arrangement for which we include in our realized investment gains and losses a calculation intended to estimate the value of the option of our reinsurance counterparty to cancel the reinsurance contract with us. However, neither party can unilaterally terminate the reinsurance agreement except in extreme circumstances resulting from regulatory supervision, delinquency proceedings, or other direct regulatory action. Cash settlements or collateral related to this embedded derivative are not required at any time during the reinsurance contract or at termination of the reinsurance contract. There are no credit-related counterparty triggers, and any accumulated embedded derivative gain or loss reduces to zero over time as the reinsured business winds down. Locations and Amounts of Derivative Financial Instruments The following tables summarize the location and fair values of derivative financial instruments, as reported in our consolidated balance sheets.
The following table summarizes the location of gains and losses on the effective portion of derivative financial instruments designated as cash flow hedging instruments, as reported in our consolidated statements of income and consolidated statements of comprehensive income.
The following table summarizes the location of gains and losses on our derivatives not designated as hedging instruments, as reported in our consolidated statements of income.
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Accumulated Other Comprehensive Income |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Components of our accumulated other comprehensive income, after tax, and related changes are as follows:
The net unrealized gain on securities consists of the following components:
Amounts reclassified from accumulated other comprehensive income were recognized in our consolidated statements of income as follows:
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Liability for Unpaid Claims |
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Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Unpaid Claims Disclosure | Changes in the liability for unpaid claims and claim adjustment expenses are as follows:
The majority of the net balances are related to disability claims with long-tail payouts on which interest earned on assets backing liabilities is an integral part of pricing and reserving. Interest accrued on prior year reserves has been calculated on the opening reserve balance less one-half year's cash payments at our average reserve discount rate used during 2015, 2014, and 2013. "Incurred Related to Prior Years - All Other Incurred" for the years shown in the preceding chart includes the reserve adjustments as discussed in the following paragraphs, which create variances year over year. Excluding those adjustments, the variability exhibited year over year is caused primarily by the level of claim resolutions in the period relative to the long-term expectations reflected in the reserves. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the life of the block of business and will vary from actual experience in any one period, both favorably and unfavorably. 2014 Long-term Care Reserve Increase Policy reserves for our long-term care block of business are determined using the gross premium valuation method and, prior to 2014, were valued based on assumptions established as of December 31, 2011, the date of the initial loss recognition. Gross premium valuation assumptions do not change after the date of loss recognition unless reserves are again determined to be deficient. We undertake a review of policy reserve adequacy annually during the fourth quarter of each year, or more frequently if appropriate, using best estimate assumptions as of the date of the review. Included in our 2014 review was an analysis of our reserve assumptions, including those for the discount rate, mortality and morbidity rates, persistency, and premium rate increases. Our analysis of reserve discount rate assumptions considered the continued historic low interest rate environment, future market expectations, and our view of future portfolio yields. The assumptions we established in 2011 were set at a level that we estimated would be sustainable in a low interest rate environment for three to five years, with improvements in market yields beginning after the third year. Since that time, however, interest rates had continued to hover near historic lows, and credit spreads had tightened. Our assumption update for mortality incorporated the last three years of Company-specific experience and emerging trends as well as industry data, where available and appropriate, and reflected improvements in life expectancies beyond what was initially anticipated in 2011. Our morbidity assumptions were updated to reflect trends from our own emerging Company experience in claim incidence and terminations, as well as trends based on available and appropriate industry data and studies. Our premium rate increase assumptions were updated to reflect progress-to-date and our on-going rate increase strategy. Based on our analysis at that time, we lowered the discount rate assumption to reflect the low interest rate environment and our revised expectation of future investment portfolio yield rates. Our revised assumptions anticipated the low interest rate environment persisting for the next three to five years, with a return to more historical averages over the following five year period. We updated our mortality assumptions to reflect emerging experience due to an increase in life expectancies which increases the ultimate number of people who will utilize long-term care benefits and also lengthens the amount of time a claimant may receive long-term care benefits. We changed our morbidity assumptions to reflect emerging industry experience as well as our own Company experience, and we updated our projection of future premium rate increase approvals. Using our revised best estimate assumptions, as of December 31, 2014, we determined that our policy and claim reserves should be increased $698.2 million to reflect our current estimate of future benefit obligations. Of this amount, $85.8 million was related to claim reserves, which can be attributed to prior year incurred claims, thereby impacting the results shown in the preceding chart. 2013 Unclaimed Death Benefits Reserve Increase Beginning in 2011, a number of state regulators began requiring insurers to cross-check specified insurance policies with the Social Security Administration’s Death Master File to identify potential matches. If a potential match was identified, insurers were requested to determine if benefits were due, locate beneficiaries, and make payments where appropriate. We initiated this process where requested, and in 2012 we began implementing this process in all states on a forward-looking basis. In addition to implementing this on a forward-looking basis, in 2013 we began an initiative to search for potential claims from previous years. During 2013, we completed our assessment of benefits which we estimated would be paid under this initiative, and as such, established $95.5 million of additional claim reserves for payment of these benefits. Claim reserves were increased $49.1 million for Unum US group life, $26.3 million for Unum US voluntary life, and $20.1 million for Colonial Life voluntary life. The reserves established were attributed to prior year incurred claims, thereby impacting the results shown in the preceding chart. 2013 Group Life Waiver of Premium Benefit Reserve Reduction Within our Unum US segment, we offer group life insurance coverage which consists primarily of renewable term life insurance and includes a provision for waiver of premium, if disabled. The group life waiver of premium benefit (group life waiver) provides for continuation of life insurance coverage when an insured, or the employer on behalf of the insured, is no longer paying premium because the employee is not actively at work due to a disability. The group life waiver claim reserve is the present value of future anticipated death benefits reflecting the probability of death while remaining disabled. Claim reserves are calculated using assumptions based on past experience adjusted for current trends and any other factors that would modify past experience and are subject to revision as current claim experience emerges and alters our view of future expectations. The two fundamental assumptions in the development of the group life waiver reserve are mortality and recovery. Our emerging experience and that which continues to emerge within the industry indicate an increase in life expectancies, which decreases the ultimate anticipated death benefits to be paid under the group life waiver benefit. Emerging experience also reflects an improvement in claim recovery rates, which also lessens the likelihood of payment of a death benefit while the insured is disabled. During 2013, we completed a review of our assumptions and modified our mortality and claim recovery assumptions for our Unum US group life waiver reserves and, as a result, reduced claim reserves by $85.0 million. Of this amount, approximately $78.0 million was attributed to prior year incurred claims, thereby impacting the results shown in the preceding chart. Reconciliation A reconciliation of policy and contract benefits and reserves for future policy and contract benefits as reported in our consolidated balance sheets to the liability for unpaid claims and claim adjustment expenses is as follows:
The adjustment related to unrealized investment gains and losses reflects the changes that would be necessary to policyholder liabilities if the unrealized investment gains and losses related to the corresponding available-for-sale securities had been realized. Changes in this adjustment are reported as a component of other comprehensive income or loss. |
Income Tax |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure | Income Tax Total income tax expense (benefit) is allocated as follows:
A reconciliation of the income tax provision at the U.S. federal statutory rate to the income tax rate as reported in our consolidated statements of income is as follows. Certain prior year amounts have been reclassified to conform to current year reporting.
In 2014, our U.S. earnings included a long-term care reserve charge that resulted in a larger proportion of our 2014 earnings derived from our foreign operations and taxed at the lower rate, therefore reducing our overall effective tax rate. Our net deferred tax liability consists of the following. Certain prior year amounts have been reclassified to conform to current year reporting.
Our consolidated statements of income include amounts subject to both domestic and foreign taxation. The income and related tax expense (benefit) are as follows:
The U.K. government enacted income tax rate reductions during 2015 and 2013. During 2015, the rate was reduced from 20 percent to 19 percent effective April 2017, and to 18 percent effective April 2020. During 2013, the rate was reduced from 23 percent to 21 percent effective April 2014, and to 20 percent effective April 2015. Although the rate reductions in each instance became or will become effective during a subsequent year, we are required to adjust deferred tax assets and liabilities through income on the date of enactment of a rate change. As a result, we recorded income tax benefits of $6.5 million and $6.3 million for the tax rate reductions enacted during 2015 and 2013, respectively. We have not provided U.S. deferred taxes on the cumulative earnings of our non-U.S. subsidiaries. We consider these unremitted earnings to be permanently invested as they relate to ongoing operations of our non-U.S. subsidiaries. We do not intend to repatriate these earnings to fund our U.S. operations as we expect that future domestic cash flow generation will be sufficient to meet future domestic cash needs. As of December 31, 2015, we had not recorded a deferred tax liability on approximately $1 billion of the excess of the carrying amount for financial reporting over the tax basis of investments in non-U.S. subsidiaries that is considered permanent in duration. This amount becomes taxable upon repatriation of assets from a foreign subsidiary or a sale or liquidation of foreign subsidiaries. Should we sell the stock in our non-U.S. subsidiaries for an amount equal to the carrying amount for financial reporting, we would recognize tax expense of approximately $200 million, assuming our ability to fully utilize foreign tax credits. Our consolidated statements of income include the following changes in unrecognized tax benefits:
Included in the balances at December 31, 2014 and 2013 were $10.4 million and $10.2 million, respectively, of unrecognized tax benefits for tax positions for which the ultimate deductibility was highly certain but for which there was uncertainty about the timing of such deductibility. Other than potential interest and penalties, the disallowance of the shorter deductibility period would not have affected our results of operations but would have accelerated the payment of cash to the taxing authority. We recognize interest expense and penalties, if applicable, related to unrecognized tax benefits in tax expense net of federal income tax. We recognized an increase (reduction) in interest expense related to unrecognized tax benefits of $(1.0) million, $0.2 million, and $(1.1) million during 2015, 2014, and 2013, respectively. We held a de minimis liability in our consolidated balance sheets for accrued interest and penalties related to unrecognized tax benefits at December 31, 2015. At December 31, 2014, we held a liability of $1.0 million. There are no positions for which it is reasonably possible that unrecognized tax benefits could materially increase or decrease within the next 12 months. We file federal and state income tax returns in the United States and in foreign jurisdictions. We have been under continuous examination by the Internal Revenue Service (IRS) with regard to our U.S. federal income tax returns. During 2015, we settled our IRS audit for 2009 and 2010 and resolved a claim for refund we filed related to tax credits for years 2003 through 2012. As a result, we recognized a tax benefit of $6.8 million in our consolidated statements of income and paid an immaterial amount of additional tax. Tax years subsequent to 2010 remain subject to examination by tax authorities in the U.S., and tax years subsequent to 2013 remain subject to examination in major foreign jurisdictions. We believe sufficient provision has been made for all potential adjustments for years that are not closed by the statute of limitations in all major tax jurisdictions and that any such adjustments would not have a material adverse effect on our financial position, liquidity, or results of operations. As of December 31, 2015 and 2014, we had no net operating loss carryforward for U.S. income taxes. We record a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. During 2015, we recorded a valuation allowance of $1.3 million related to unrealized tax losses on buildings which we own and occupy in the U.K. We had no valuation allowance at December 31, 2014. Total income taxes paid net of refunds during 2015, 2014, and 2013 were $189.1 million, $155.7 million, and $398.1 million, respectively. |
Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure | sists of the following:
Collateralized debt is comprised of our senior secured notes and ranks highest in priority, followed by unsecured notes, which consist of senior notes and medium-term notes, followed by junior subordinated debt securities. The senior notes due 2018 and medium-term notes are non-callable and the junior subordinated debt securities are callable under limited, specified circumstances. The remaining debt is callable and may be redeemed, in whole or in part, at any time. The aggregate contractual principal maturities are $350.0 million in 2016, $200.0 million in 2018, $400.0 million in 2020, and $1,881.6 million thereafter. Senior Secured Notes In 2007, Northwind Holdings, LLC (Northwind Holdings), a wholly-owned subsidiary of Unum Group, issued $800.0 million of insured, senior secured notes (the Northwind notes) in a private offering. The Northwind notes bear interest at a floating rate equal to the three-month LIBOR plus 0.78%. Northwind Holdings’ ability to meet its obligations to pay principal, interest, and other amounts due on the Northwind notes will be dependent principally on its receipt of dividends from Northwind Reinsurance Company (Northwind Re), the sole subsidiary of Northwind Holdings. Northwind Re reinsured the risks attributable to specified individual disability insurance policies issued by or reinsured by Provident Life and Accident Insurance Company, Unum Life Insurance Company of America, and The Paul Revere Life Insurance Company (collectively, the ceding insurers) pursuant to separate reinsurance agreements between Northwind Re and each of the ceding insurers. The ability of Northwind Re to pay dividends to Northwind Holdings will depend on its satisfaction of applicable regulatory requirements and the performance of the reinsured policies. Recourse for the payment of principal, interest, and other amounts due on the Northwind notes is limited to the collateral for the Northwind notes and the other assets, if any, of Northwind Holdings. The collateral consists of a first priority, perfected security interest in (a) the debt service coverage account (DSCA) that Northwind Holdings is required to maintain in accordance with the indenture pursuant to which the Northwind notes were issued (the Northwind indenture), (b) the capital stock of Northwind Re and the dividends and distributions on such capital stock, and (c) Northwind Holdings' rights under the transaction documents related to the Northwind notes to which Northwind Holdings is a party. At December 31, 2015, the amount in the DSCA was $5.4 million. None of Unum Group, the ceding insurers, Northwind Re, or any other affiliate of Northwind Holdings is an obligor or guarantor with respect to the Northwind notes. Northwind Holdings is required to repay a portion of the outstanding principal under the Northwind notes at par on the quarterly scheduled payment dates under the Northwind notes in an amount equal to the lesser of (i) a targeted amortization amount as defined in the Northwind indenture and (ii) the amount of the remaining available funds in the DSCA minus an amount equal to the minimum balance that is required to be maintained in the DSCA under the Northwind indenture, provided that Northwind Holdings has sufficient funds available to pay its other expenses, including interest payments on the Northwind notes, and to maintain the minimum balance in the DSCA as required under the Northwind indenture. During 2015, 2014, and 2013, Northwind Holdings made principal payments of $74.4 million, $41.6 million, and $60.0 million, respectively, on the Northwind notes. In 2006, Tailwind Holdings, LLC (Tailwind Holdings) a wholly-owned subsidiary of Unum Group, issued $130.0 million of insured, senior, secured notes due 2036 in a private offering. In 2013, we purchased and retired the outstanding principal of $62.5 million on these notes, resulting in a before-tax gain of $4.0 million. Unsecured Notes In 2014, we purchased and retired $145.0 million principal of our 6.85% notes, including a make-whole amount of $13.2 million, for a total cost of $158.2 million. In conjunction with this retirement, we reclassified $13.1 million of the deferred gain on previously terminated derivatives associated with the hedge of this debt from accumulated other comprehensive income to realized investment gain in our consolidated statements of income. The remaining $151.9 million balance of these notes matured in November 2015. Fair Value Hedges As of December 31, 2015 and 2014, we had $600.0 million notional amount interest rate swaps which effectively convert certain of our unsecured senior notes into floating rate debt. Under these agreements, we receive fixed rates of interest and pay variable rates of interest, based off of three-month LIBOR. See Note 4 for further information on our interest rate swaps. Junior Subordinated Debt Securities In 1998, Provident Financing Trust I (the trust), a 100 percent-owned finance subsidiary of Unum Group, issued $300.0 million of 7.405% capital securities in a public offering. These capital securities are fully and unconditionally guaranteed by Unum Group, have a liquidation value of $1,000 per capital security, and have a mandatory redemption feature under certain circumstances. Unum Group issued 7.405% junior subordinated deferrable interest debentures to the trust in connection with the capital securities offering. The debentures mature in 2038. The sole assets of the trust are the junior subordinated debt securities. Interest Paid Interest paid on long-term and short-term debt and related securities during 2015, 2014, and 2013 was $146.9 million, $145.9 million, and $144.6 million, respectively. Credit Facility In August 2013, we entered into a five-year, $400.0 million unsecured revolving credit facility. Under the terms of the agreement, we may request that the credit facility be increased up to $600.0 million. Borrowings under the credit facility are for general corporate uses and are subject to financial covenants, negative covenants, and events of default that are customary. The credit facility provides for borrowing at an interest rate based either on the prime rate or LIBOR. In addition, the credit facility provides for the issuance of letters of credit subject to certain terms and limitations. At December 31, 2015 and 2014, letters of credit totaling $2.1 million had been issued from the credit facility, but there were no borrowed amounts outstanding. |
Employee Benefit Plans |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits Disclosure | Employee Benefit Plans Defined Benefit Pension and Other Postretirement Benefit (OPEB) Plans We sponsor several defined benefit pension and OPEB plans for our employees, including non-qualified pension plans. The U.S. qualified and non-qualified defined benefit pension plans comprise the majority of our total benefit obligation and benefit cost. We maintain a separate defined benefit plan for eligible employees in our U.K. operation. The U.S. defined benefit pension plans were closed to new entrants on December 31, 2013, the OPEB plan was closed to new entrants on December 31, 2012, and the U.K. plan was closed to new entrants on December 31, 2002. Amendments to U.S. Pension Plans In 2015, we amended our U.S. qualified defined benefit pension plan to increase the eligibility limit from $10,000 to $100,000 for a participant who terminates from the plan after December 31, 2015 and elects to receive a lump-sum settlement of his or her entire accrued pension benefit. As a result of this plan amendment, we recognized a decrease in the net pension liability of $7.5 million, with a corresponding prior service credit included in accumulated other comprehensive income. In 2014, we amended our U.S. qualified defined benefit pension plan to allow a limited-time offer of benefit payouts to eligible former employees with a vested right to a pension benefit. The offer provided eligible former employees, regardless of age, with an option to elect to receive a lump-sum settlement of his or her entire accrued pension benefit in December 2014 or to elect receipt of monthly pension benefits commencing in January 2015. For those who elected to receive lump-sum settlements, we made payments totaling $214.5 million from plan assets in December 2014. We recognized a before-tax settlement loss of $64.4 million in earnings during 2014, with a corresponding reduction in the unrecognized actuarial loss included in accumulated other comprehensive income that pertained to the settled benefit obligation. In 2013, we adopted plan amendments which froze participation and benefit accruals in our U.S. qualified and non-qualified defined benefit pension plans, effective December 31, 2013. Because the amendments eliminated all future service accruals subsequent to December 31, 2013 for active participants in these plans, we were required to remeasure the benefit obligations during 2013. The discount rate assumption increased from 4.50 percent at December 31, 2012 to 5.00 percent at the remeasurement date, reflecting the change in market interest rates during that period. The expected long-term rate of return on plan assets of 7.50 percent remained unchanged from December 31, 2012. The remeasurement resulted in a decrease in our net pension liability of $327.4 million at the remeasurement date, with a corresponding increase in other comprehensive income, less applicable income tax of $114.6 million. The decrease in the net pension liability resulted primarily from the curtailment of benefits under the plan amendments as well as the increase in the discount rate assumption used to remeasure the benefit obligations. As a result of the 2013 plan amendments, we recognized a before-tax curtailment loss of $0.7 million in earnings during 2013, with a corresponding reduction in the prior service cost included in accumulated other comprehensive income and associated with years of service no longer expected to be rendered. Amendments to U.K. Pension Plan In 2013, we adopted amendments to our U.K. pension plan which froze participation in our plan and which reduced the maximum rate of inflation indexation from 5.0 percent to 2.5 percent for pension benefits which were earned prior to April 1997. The amendment to reduce the maximum rate of inflation indexation was effective September 12, 2013, and the amendment to freeze participation became effective June 30, 2014. Although all future service accruals were eliminated for active participants, pension payments to participants currently employed are based on the higher of (i) pensionable earnings at a participant's retirement age or the date a participant's employment ceases, subject to the inflation indexation provisions in the plan, or (ii) pensionable earnings as of June 30, 2014, also subject to the inflation indexation provisions. Because the amendments eliminated all future service accruals subsequent to June 30, 2014 for active participants in the plan, we were required to remeasure the benefit obligation of the plan during 2013. The discount rate assumption increased from 4.50 percent at December 31, 2012 to 4.60 percent at the remeasurement date, reflecting the change in market interest rates during that period. The expected long-term rate of return on plan assets changed from 6.20 percent at December 31, 2012 to 6.35 percent at the remeasurement date. The remeasurement resulted in a $2.3 million, or £1.5 million, increase in our net pension asset at the remeasurement date. As a result of these plan amendments, we recognized a before-tax curtailment gain of $3.7 million, or £2.3 million, in earnings during 2013, with a corresponding decrease in the prior service credit included in accumulated other comprehensive income and associated with years of service no longer expected to be rendered. The majority of the prior service credit was related to the amendment to reduce the rate of inflation indexation. Amortization Period of Actuarial Gain or Loss and Prior Service Cost or Credit Because all participants in the U.S. and U.K. pension plans are considered inactive as a result of the 2013 plan amendments, we are required to amortize the net actuarial loss and prior service credit for these plans over the average remaining life expectancy of the plans. As of December 31, 2015, the estimate of the average remaining life expectancy of the plans was approximately 25 years for the U.S. plan and 34 years for U.K. plan. The following tables provide the changes in the benefit obligation and fair value of plan assets and statements of the funded status of the plans.
The amounts recognized in our consolidated balance sheets for our pension and OPEB plans at December 31, 2015 and 2014 are as follows.
The following table provides the changes recognized in other comprehensive income for the years ended December 31, 2015 and 2014.
Plan Assets The objective of our U.S. pension and OPEB plans is to maximize long-term return, within acceptable risk levels, in a manner that is consistent with the fiduciary standards of the Employee Retirement Income Security Act (ERISA), while maintaining sufficient liquidity to pay current benefits and expenses. Our U.S. qualified defined benefit pension plan assets include a diversified blend of domestic and international equity securities, fixed income securities, opportunistic credit securities, real estate investments, alternative investments, and cash equivalents. Equity securities are comprised of funds and individual securities that are designed to track the respective indices specified below. International equity funds may allocate a certain percentage of assets to forward currency contracts. Fixed income securities include U.S. government and agency asset-backed securities, corporate investment-grade bonds, private placement securities, and bonds issued by states or other municipalities. Opportunistic credits consist of investments in funds that hold varied fixed income investments purchased at depressed values with the intention to later sell those investments for a gain. Real estate investments consist primarily of commercial real estate investments. Alternative investments, which include private equity direct investments, private equity funds of funds, and hedge funds of funds, utilize proprietary strategies that are intended to have a low correlation to the U.S. stock market. Prohibited investments include, but are not limited to, unlisted securities, futures contracts, options, short sales, and investments in securities issued by Unum Group or its affiliates. The invested asset classes, asset types, and benchmark indices for our U.S. qualified defined benefit pension plan is as follows. We target approximately 35 percent to equity securities, 40 percent to fixed income securities, and 25 percent to opportunistic credits, alternative, and real estate investments.
Assets for our U.K. pension plan are primarily invested in a pooled diversified growth fund. This fund invests in assets such as global equities, hedge funds, commodities, below-investment-grade fixed income securities, and currencies. The objectives of the fund are to generate capital appreciation over the course of a complete economic and market cycle and to deliver equity-like returns in the medium-to-long term while maintaining approximately two thirds of the volatility of equity markets. Performance of this fund is measured against the U.K. inflation rate plus four percent. The remaining assets in the U.K. plan are invested in leveraged interest rate and inflation swap and gilt funds of varying durations designed to broadly match the interest rate and inflation sensitivities of the plan's liabilities. The current target allocation for the assets is 70 percent diversified growth assets and 30 percent interest rate and inflation swap funds. There are no categories of investments that are specifically prohibited by the U.K. plan, but there are general guidelines that ensure prudent investment action is taken. Such guidelines include the prevention of the plan from using derivatives for speculative purposes and limiting the concentration of risk in any one type of investment. Assets for the OPEB plan are invested in life insurance contracts issued by one of our insurance subsidiaries. The assets support life insurance benefits payable to certain former retirees covered under the OPEB plan. The terms of these contracts are consistent in all material respects with those the subsidiary offers to unaffiliated parties that are similarly situated. There are no categories of investments specifically prohibited by the OPEB plan. We believe our investment portfolios are well diversified by asset class and sector, with no undue risk concentrations in any one category. The categorization of fair value measurements by input level for the invested assets in our U.S. pension plans is as follows:
Level 1 investments consist of individual holdings and funds that are valued based on unadjusted quoted prices from active markets for identical securities. Level 2 equity, opportunistic credit, and real estate investments consist of funds that are valued based on the net asset value (NAV) of the underlying holdings. These investments have no unfunded commitments and no specific redemption restrictions. Level 2 fixed income securities are valued using observable inputs through market corroborated pricing. Alternative investments are valued based on the NAV of the underlying holdings in a period ranging from one month to one quarter in arrears. We evaluate the need for adjustments to the NAV based on market conditions and discussions with fund managers in the period subsequent to the valuation date and prior to issuance of the financial statements. We made no adjustments to the NAV for 2015 or 2014. The private equity direct investments and private equity funds of funds generally cannot be redeemed by investors, and distributions are received following the maturity of the underlying assets. It is estimated that these underlying assets will begin to mature between five and eight years from the date of initial investment. We have assigned a Level 3 classification to the private equity direct investments and private equity funds of funds due to the redemption restrictions on the investments. Redemptions on the hedge funds of funds can be made on either a quarterly or bi-annual basis, depending on the fund, with prior notice of at least 90 calendar days. Because of these redemption restrictions, we have classified the hedge funds of funds as Level 3. Changes in our U.S. pension plans' assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2015 and 2014 are as follows:
The categorization of fair value measurements by input level for the assets in our U.K. pension plan is as follows.
Level 1 fixed interest and index-linked securities consist of individual funds that are valued based on unadjusted quoted prices from active markets for identical securities. Level 2 investments consist of funds that are valued based on the NAV of the underlying holdings. These investments have no unfunded commitments and no specific redemption restrictions. The categorization of fair value measurements by input level for the assets in our OPEB plan is as follows:
The fair value is represented by the actuarial present value of future cash flows of the contracts. Changes in our OPEB plan assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2015 and 2014 are as follows:
For the years ended December 31, 2015 and 2014, the actual return on plan assets relates solely to investments still held at the reporting date. There were no transfers into or out of Level 3 during 2015 or 2014. Measurement Assumptions We use a December 31 measurement date for each of our plans. The weighted average assumptions used in the measurement of our benefit obligations as of December 31 and our net periodic benefit costs for the years ended December 31 are as follows:
We set the discount rate assumption annually for each of our retirement-related benefit plans at the measurement date to reflect the yield on a portfolio of high quality fixed income corporate debt instruments matched against the projected cash flows for future benefits. Our long-term rate of return on plan assets assumption is selected from a range of probable return outcomes generated by statistical analysis of the asset portfolio. Our expectations for the future investment returns of the asset categories are based on a combination of historical market performance, evaluations of investment forecasts obtained from external consultants and economists, and current market yields. The methodology underlying the return assumption includes the various elements of the expected return for each asset class such as long-term rates of return, volatility of returns, and the correlation of returns between various asset classes. The expected return for the total portfolio is calculated based on the plan's strategic asset allocation. Investment risk is measured and monitored on an ongoing basis through annual liability measurements, periodic asset/liability studies, and quarterly investment portfolio reviews. Risk tolerance is established through consideration of plan liabilities, plan funded status, and corporate financial condition. Our mortality rate assumption reflects our best estimate, as of the measurement date, of the life expectancies of plan participants in order to determine the expected length of time for benefit payments. We derive our assumptions from industry mortality tables. The expected return assumption for the life insurance reserve for our OPEB plan at December 31, 2015 and 2014 is 5.75 percent, which is based on full investment in fixed income securities with an average book yield of 5.24 percent and 5.46 percent in 2015 and 2014, respectively. The rate of compensation increase assumption for our U.K. pension plan is generally based on periodic studies of compensation trends. At December 31, 2015 and 2014, the annual rate of increase in the per capita cost of covered postretirement health care benefits assumed for the next calendar year is 7.50 percent for each year for benefits payable to both retirees prior to Medicare eligibility as well as Medicare eligible retirees. The rate is assumed to change gradually to 5.00 percent by 2021 for measurement at December 31, 2015 and remain at that level thereafter. The medical and dental premiums used to determine the per retiree employer subsidy are capped. Certain of the current retirees and all future retirees are subject to the cap. Net Periodic Benefit Cost The following table provides the components of the net periodic benefit cost for the plans described above for the years ended December 31.
A one percent increase or decrease in the assumed health care cost trend rate at December 31, 2015 would have increased (decreased) the service cost and interest cost by $0.2 million and $(0.1) million, respectively, and the postretirement benefit obligation by $4.3 million and $(3.2) million, respectively. The unrecognized net actuarial loss and the prior service credit included in accumulated other comprehensive income and expected to be amortized and included in net periodic pension cost during 2016 is $16.5 million and $0.5 million before tax, respectively. Benefit Payments The following table provides expected benefit payments, which reflect expected future service, as appropriate.
Funding Policy The funding policy for our U.S. qualified defined benefit plan is to contribute annually an amount at least equal to the minimum annual contribution required under ERISA and other applicable laws, but generally not greater than the maximum amount that can be deducted for federal income tax purposes. We had no regulatory contribution requirements for our U.S. qualified defined benefit plan in 2015 and made no voluntary contributions during 2015. We do not expect to make any contributions in 2016. The funding policy for our U.S. non-qualified defined benefit pension plan is to contribute the amount of the benefit payments made during the year. Our expected return on plan assets and discount rate will not affect the cash contributions we are required to make to our U.S. pension and OPEB plans because such contributions are determined under the minimum funding requirements as set forth in ERISA. We made no contributions to our U.K. plan during 2015, nor do we expect to make any contributions in 2016, either voluntary or those required to meet the minimum funding requirements under U.K. legislation. Our OPEB plan represents a non-vested, non-guaranteed obligation, and current regulations do not require specific funding levels for these benefits, which are comprised of retiree life, medical, and dental benefits. It is our practice to use general assets to pay medical and dental claims as they come due in lieu of utilizing plan assets for the medical and dental benefit portions of our OPEB plan. Defined Contribution Plans We offer a 401(k) plan to all eligible U.S. employees under which a portion of employee contributions is matched. Effective January 1, 2014, we began matching dollar-for-dollar up to 5.0 percent of base salary and any recognized sales and performance-based incentive compensation for employee contributions into the plan. Also effective January 1, 2014, we began making an additional non-elective contribution of 4.5 percent of earnings for all eligible employees and a separate transition contribution for eligible employees who met certain age and years of service criteria as of December 31, 2013. Prior to January 1, 2014, we matched dollar-for-dollar up to 3.0 percent of base salary and $0.50 on the dollar for each of the next 2.0 percent of base salary for employee contributions into the plan. The 401(k) plan remains in compliance with ERISA guidelines and continues to qualify for a “safe harbor” from annual discrimination testing. We also offer a defined contribution plan to all eligible U.K. employees under which a portion of employee contributions is matched. Effective July 1, 2014, we increased benefits under the defined contribution plan wherein we match two pounds for every one pound on the first 1.0 percent of employee contributions into the plan and match additional employee contributions pound-for-pound up to 5.0 percent of base salary. We previously matched pound-for-pound up to 5.0 percent of base salary for employee contributions into the defined contribution plan and made an additional non-elective contribution of 5.0 percent of base salary. Also effective July 1, 2014, we increased the non-elective contribution to 6.0 percent of base salary for all eligible employees, and a separate transition contribution is made for all eligible employees through March 31, 2016. During the years ended December 31, 2015, 2014, and 2013, we recognized costs of $71.5 million, $76.0 million, and $18.8 million, respectively, for our U.S. defined contribution plan and $5.7 million, $5.0 million, and $2.9 million, respectively, for our U.K. defined contribution plan. |
Stockholders' Equity and Earnings Per Common Share |
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Earnings Per Share Disclosure | Earnings Per Common Share Net income per common share is determined as follows:
We use the treasury stock method to account for the effect of outstanding stock options, nonvested restricted stock units, and nonvested performance share units on the computation of diluted earnings per share. Under this method, these potential common shares will each have a dilutive effect, as individually measured, when the average market price of Unum Group common stock during the period exceeds the exercise price of the stock options and the grant price of the nonvested restricted stock units and the nonvested performance share units. The outstanding stock options have exercise prices ranging from $11.37 to $26.29; the nonvested restricted stock units have grant prices ranging from $23.97 to $36.95; and the nonvested performance share units have grant prices ranging from $23.97 to $34.08. See Note 11. In computing earnings per share assuming dilution, only potential common shares that are dilutive (those that reduce earnings per share) are included. Potential common shares not included in the computation of diluted earnings per share because the impact would be antidilutive, based on then current market prices, approximated 0.3 million, 0.1 million, and 0.1 million for the years ended December 31, 2015, 2014, and 2013, respectively. |
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Stockholders' Equity Disclosure | Common Stock Our board of directors has authorized the repurchase of Unum Group's common stock under the following repurchase programs:
The May 2015 share repurchase program has an expiration date of November 21, 2016. Common stock repurchases, which are accounted for using the cost method and classified as treasury stock until otherwise retired, were as follows:
(1) Includes commissions of $0.3 million, $0.1 million, and $0.2 million for the years ended December 31, 2015, 2014, and 2013, respectively. During 2014, we retired 60.0 million shares of our treasury stock with an average total cost of $1,451.7 million. Preferred Stock Unum Group has 25.0 million shares of preferred stock authorized with a par value of $0.10 per share. No preferred stock has been issued to date. |
Stock-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments | Stock-Based Compensation Description of Stock Plans Under the Stock Incentive Plan of 2012 (the 2012 Plan), up to 20 million shares of common stock are available for awards to our employees, officers, consultants, and directors. Awards may be in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, performance share units, and other stock-based awards. Each full-value award, defined as any award other than a stock option or stock appreciation right, is counted as 1.76 shares. The exercise price for stock options issued cannot be less than the fair value of the underlying common stock as of the grant date. Stock options generally have a term of eight years after the date of grant and fully vest after three years. At December 31, 2015, approximately 15.67 million shares were available for future grants under the 2012 Plan. Under the Stock Incentive Plan of 2007 (the 2007 Plan), which was terminated in May 2012 for purposes of any further grants, up to 35 million shares of common stock were available for awards to our employees, officers, consultants, and directors. Awards could be in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, performance share units, and other stock-based awards. Each full-value award, defined as any award other than a stock option or stock appreciation right, is counted as 2.7 shares. Awards granted before the termination of the 2007 Plan remain outstanding in accordance with the plan's terms. Stock options generally have a term of eight years after the date of grant and fully vest after three years. We issue new shares of common stock for all of our stock plan vestings and exercises. Performance Share Units (PSUs) Activity for PSUs classified as equity is as follows:
During 2015, 2014, and 2013, we issued PSUs with a weighted average grant date fair value per share of $35.13, $34.72, and $25.26, respectively. Vesting for the PSUs occurs at the end of a three-year period and is contingent upon our achievement of prospective company performance goals and our total shareholder return relative to a particular peer group during the three-year period. Actual performance, including modification for relative total shareholder return, may result in the ultimate award of 40 to 180 percent of the initial number of PSUs issued, with the potential for no award if company performance goals are not achieved during the three-year period. Forfeitable dividend equivalents on PSUs are accrued in the form of additional PSUs. PSU shares in the preceding table represent aggregate initial target awards and accrued dividend equivalents and do not reflect potential increases or decreases resulting from the performance factor determined after the end of the performance periods. At December 31, 2015, the three-year performance period for the 2013 PSU grant was completed, but the performance factor had not yet been applied. The preceding table includes 0.1 million vested PSUs for which the 2013 through 2015 performance factor will be applied during the first quarter of 2016, with distribution of the stock thereafter. At December 31, 2015, we had approximately $8.1 million of unrecognized compensation cost related to PSUs that will be recognized over a weighted average period of 1.6 years. The estimated compensation expense is adjusted for actual performance experience and is recognized ratably during the service period, or remaining service period, if and when it becomes probable that the performance conditions will be satisfied. Compensation cost for PSUs subject to accelerated vesting at the date of retirement eligibility is recognized over the implicit service period. The fair value of PSUs is estimated on the date of initial grant using the Monte-Carlo simulation model. The assumptions used to value PSUs granted during the years shown are as follows:
Restricted Stock Units (RSUs) Activity for RSUs classified as equity is as follows:
During 2015, 2014, and 2013, we issued RSUs with a weighted average grant date fair value per share of $34.08, $33.77, and $24.68, respectively. RSUs vest over a one to three-year service period, beginning at the date of grant, and the compensation cost is recognized ratably during the vesting period. Forfeitable dividend equivalents on RSUs are accrued in the form of additional RSUs. Compensation cost for RSUs subject to accelerated vesting at the date of retirement eligibility is recognized over the implicit service period. The total fair value of shares vested during 2015, 2014, and 2013 was $21.4 million, $19.8 million, and $18.3 million, respectively. At December 31, 2015, we had $12.0 million of unrecognized compensation cost related to RSUs that will be recognized over a weighted average period of 0.9 years. Cash-Settled Awards Activity for cash-settled awards classified as a liability is as follows:
Cash-settled awards vest over a one to three-year service period, beginning at the date of grant, and the compensation cost is recognized ratably during the vesting period. Forfeitable dividend equivalents on cash-settled awards are accrued in the form of additional units. Compensation cost for cash-settled awards subject to accelerated vesting at the date of retirement eligibility is recognized over the implicit service period. The amount payable per unit awarded is equal to the price per share of Unum Group's common stock at settlement of the award, and as such, we measure the value of the award each reporting period based on the current stock price. The effects of changes in the stock price during the service period are recognized as compensation cost over the service period. Changes in the amount of the liability due to stock price changes after the service period are recognized as compensation cost during the period in which the changes occur.
There is no unrecognized compensation cost related to the cash-settled awards, other than future changes in the liability due to future stock price changes, as the units do not require additional future service. Stock Options Stock option activity is summarized as follows:
All outstanding stock options at December 31, 2015 are expected to vest. Stock options vest over a one to three-year service period, beginning at the date of grant, and the compensation cost is recognized ratably during the vesting period. Compensation cost for stock options subject to accelerated vesting at the date of retirement eligibility is recognized over the implicit service period. The intrinsic value of options exercised and fair value of options vested are as follows:
At December 31, 2015, we had a de minimis amount of unrecognized compensation cost related to stock options that will be recognized over a weighted average period of 0.1 years. The fair value of stock options is estimated on the date of initial grant using the Black-Scholes valuation model. The grant date fair value and the assumptions used to value stock options granted during 2013 are as follows. There were no stock options granted in 2015 or 2014.
Expense Compensation expense for the stock plans, as reported in our consolidated statements of income, is as follows:
Cash received under all share-based payment arrangements for the years ended December 31, 2015, 2014, and 2013 was $6.4 million, $12.3 million, and $11.4 million, respectively. |
Reinsurance |
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Reinsurance | Thirteen major companies account for approximately 92 percent of our reinsurance recoverable at December 31, 2015, and all are rated A or better by A.M. Best Company (AM Best) or are fully securitized by letters of credit or investment-grade fixed maturity securities held in trust. Approximately seven percent of our reinsurance recoverable relates to business reinsured either with companies rated A- or better by AM Best, with overseas entities with equivalent ratings or backed by letters of credit or trust agreements, or through reinsurance arrangements wherein we retain the assets in our general account. The remaining one percent of our reinsurance recoverable is held by companies either rated below A- by AM Best or not rated. Reinsurance data is as follows:
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information We have three principal operating business segments: Unum US, Unum UK, and Colonial Life. Our other segments are Closed Block and Corporate. The Unum US segment includes group long-term and short-term disability insurance, group life and accidental death and dismemberment products, and supplemental and voluntary lines of business. The supplemental and voluntary lines of business are comprised of individual disability and voluntary benefits products. These products are marketed through our field sales personnel who work in conjunction with independent brokers and consultants. The Unum UK segment includes insurance for group long-term disability, group life, and supplemental lines of business, which include dental, individual disability, and critical illness products. Unum UK's products are sold primarily in the United Kingdom through field sales personnel and independent brokers and consultants. The Colonial Life segment includes insurance for accident, sickness, and disability products, life products, and cancer and critical illness products marketed to employees at the workplace through an independent contractor agency sales force and brokers. The Closed Block segment consists of individual disability, group and individual long-term care, and other insurance products no longer actively marketed. The individual disability line of business in this segment generally consists of policies we sold prior to the mid-1990s and entirely discontinued selling in 2004, other than update features contractually allowable on existing policies. We discontinued offering individual long-term care in 2009 and group long-term care in 2012. Other insurance products include group pension, individual life and corporate-owned life insurance, reinsurance pools and management operations, and other miscellaneous product lines. The Corporate segment includes investment income on corporate assets not specifically allocated to a line of business, interest expense on corporate debt other than non-recourse debt, and certain other corporate income and expense not allocated to a line of business. Business Acquired In September 2015, we acquired 100 percent of the common shares and voting interests in National Dental Plan Limited and associated companies (National Dental) for a total cash purchase price of £35.9 million or $54.3 million. National Dental, a provider of dental insurance in the U.K. workplace, is reported in our Unum UK segment as part of our supplemental product line. The acquisition of National Dental extends our market reach, broadening our employee benefit offerings in the U.K. National Dental's revenues totaled £14.7 million, or $24.2 million, in 2014. Total assets were £18.6 million, or $28.1 million at the acquisition date, and were primarily comprised of short-term investments, accounts receivable, and intangible assets attributable to benefits derived from National Dental's customer relationships and dental provider network. Total liabilities were £5.0 million, or $7.5 million at the acquisition date, and were primarily comprised of outstanding claims liabilities, unearned premiums, and a deferred tax liability. The purchase price exceeded the fair value of the identifiable net assets by £22.3 million, or $33.7 million, and has been identified as goodwill, primarily attributable to the value of adding dental to our current employee benefit offerings. The goodwill is not deductible for income tax purposes except upon disposition of the acquired entity. This acquisition, the results of which are included in our consolidated financial statements for the period subsequent to the date of acquisition, did not have a material impact on revenue or operating results for 2015. Segment information is as follows:
Revenue is primarily derived from sources in the United States and the United Kingdom. There are no material revenues or assets attributable to foreign operations other than those reported in our Unum UK segment. We report goodwill in our Unum US segment and in our Unum UK segment, which are the segments expected to benefit from the originating business combinations. At December 31, 2015 and 2014, goodwill was $230.9 million and $198.7 million, respectively, with $187.6 million attributable to Unum US in each year and the remainder attributable to Unum UK. Stockholders' equity is allocated to the operating segments on the basis of an internal allocation formula that reflects the volume and risk components of each operating segment's business and aligns allocated equity with our target capital levels for regulatory and rating agency purposes. We modify this formula periodically to recognize changes in the views of capital requirements. We measure and analyze our segment performance using non-GAAP financial measures. A non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. The non-GAAP financial measures of "operating revenue" and "operating income" or "operating loss" differ from total revenue and income before income tax as presented in our consolidated statements of income due to the exclusion of net realized investment gains and losses, non-operating retirement-related gains or losses, and certain other items as specified in the reconciliations below. We believe operating revenue and operating income or loss are better performance measures and better indicators of the revenue and profitability and underlying trends in our business. Realized investment gains or losses depend on market conditions and do not necessarily relate to decisions regarding the underlying business of our segments. Our investment focus is on investment income to support our insurance liabilities as opposed to the generation of realized investment gains or losses. Although we may experience realized investment gains or losses which will affect future earnings levels, a long-term focus is necessary to maintain profitability over the life of the business since our underlying business is long-term in nature, and we need to earn the interest rates assumed in calculating our liabilities. The amortization of prior period actuarial gains or losses, a component of the net periodic benefit cost for our pensions and other postretirement benefit plans, is driven by market performance as well as plan amendments and is not indicative of the operational results of our businesses. We believe that excluding the amortization of prior period gains or losses, as well as the 2014 settlement loss resulting from our pension plan amendment, from operating income or loss provides investors with additional information for comparison and analysis of our operating results. Although we manage our non-operating retirement-related gains or losses separately from the operational performance of our business, these gains or losses impact the overall profitability of our company and have historically increased or decreased over time, depending on plan amendments and market conditions and the resulting impact on the actuarial gains or losses in our pensions and other postretirement benefit plans. We believe that excluding the 2014 costs related to the early retirement of debt is appropriate because in conjunction with the debt redemption, we recognized in realized investment gains and losses a deferred gain from previously terminated derivatives which were associated with the hedge of this debt. The amount recognized as a realized investment gain, which basically offsets the cost of the debt redemption, is also excluded from our non-GAAP financial measures since we analyze our performance excluding amounts reported as realized investment gains or losses. We believe it provides investors with a more realistic view of our overall profitability if we are consistent in excluding both the cost of the debt retirement as well as the gain on the hedge of the debt. We may at other times exclude certain other items from our discussion of financial ratios and metrics in order to enhance the understanding and comparability of our operational performance and the underlying fundamentals, but this exclusion is not an indication that similar items may not recur and does not replace net income or net loss as a measure of our overall profitability. A reconciliation of "operating revenue" to total revenue and "operating income" to income before income tax is as follows:
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Commitments and Contingent Liabilities |
12 Months Ended |
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Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingent Liabilities Commitments We have noncancelable lease obligations on certain office space and equipment. As of December 31, 2015, the aggregate net minimum lease payments were $220.9 million payable as follows: $56.8 million in 2016, $40.1 million in 2017, $21.4 million in 2018, $19.9 million in 2019, $16.9 million in 2020, and $65.8 million thereafter. Rental expense for the years ended December 31, 2015, 2014, and 2013 was $42.5 million, $44.2 million, and $44.1 million, respectively. At December 31, 2015, we had unfunded commitments of $291.5 million for certain of our investments, the amount of which may or may not be funded. Contingent Liabilities We are a defendant in a number of litigation matters. In some of these matters, no specified amount is sought. In others, very large or indeterminate amounts, including punitive and treble damages, are asserted. There is a wide variation of pleading practice permitted in the United States courts with respect to requests for monetary damages, including some courts in which no specified amount is required and others which allow the plaintiff to state only that the amount sought is sufficient to invoke the jurisdiction of that court. Further, some jurisdictions permit plaintiffs to allege damages well in excess of reasonably possible verdicts. Based on our extensive experience and that of others in the industry with respect to litigating or resolving claims through settlement over an extended period of time, we believe that the monetary damages asserted in a lawsuit or claim bear little relation to the merits of the case, or the likely disposition value. Therefore, the specific monetary relief sought is not stated. Unless indicated otherwise in the descriptions below, reserves have not been established for litigation and contingencies. An estimated loss is accrued when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Claims Handling Matters We and our insurance subsidiaries, in the ordinary course of our business, are engaged in claim litigation where disputes arise as a result of a denial or termination of benefits. Most typically these lawsuits are filed on behalf of a single claimant or policyholder, and in some of these individual actions punitive damages are sought, such as claims alleging bad faith in the handling of insurance claims. For our general claim litigation, we maintain reserves based on experience to satisfy judgments and settlements in the normal course. We expect that the ultimate liability, if any, with respect to general claim litigation, after consideration of the reserves maintained, will not be material to our consolidated financial condition. Nevertheless, given the inherent unpredictability of litigation, it is possible that an adverse outcome in certain claim litigation involving punitive damages could, from time to time, have a material adverse effect on our consolidated results of operations in a period, depending on the results of operations for the particular period. From time to time class action allegations are pursued where the claimant or policyholder purports to represent a larger number of individuals who are similarly situated. Since each insurance claim is evaluated based on its own merits, there is rarely a single act or series of actions which can properly be addressed by a class action. Nevertheless, we monitor these cases closely and defend ourselves appropriately where these allegations are made. Miscellaneous Matters Beginning in 2011, a number of state regulators began requiring insurers to cross-check specified insurance policies with the Social Security Administration’s Death Master File to identify potential matches. If a potential match was identified, insurers were requested to determine if benefits were due, locate beneficiaries, and make payments where appropriate. We initiated this process where requested, and in 2012 we began implementing this process in all states on a forward-looking basis. In addition to implementing this on a forward-looking basis, in 2013 we began an initiative to search for potential claims from previous years. During 2013, we completed our assessment of benefits which we estimate will be paid under this initiative, and as such, established additional reserves for payment of these benefits. Similar to other insurers, we are undergoing an examination by a third party acting on behalf of a number of state treasurers concerning our compliance with the unclaimed property laws of the participating states. We are cooperating fully with this examination, as well as with a Delaware Market Conduct examination involving the same issue. The legal and regulatory environment around unclaimed death benefits continues to evolve. It is possible that the current examination and/or similar investigations by other state jurisdictions may result in additional payments to beneficiaries, the payment of abandoned funds under state law, and/or administrative penalties, the total of which may be in excess of the reserves established. In December 2012, State of West Virginia ex rel. John D. Perdue v. Provident Life and Accident Insurance Company and State of West Virginia ex rel. John D. Perdue v. Colonial Life & Accident Insurance Company were filed in the Circuit Court of Putnam County, West Virginia. These two separate complaints alleged violations of the West Virginia Uniform Unclaimed Property Act by failing to identify and report all unclaimed insurance policy proceeds due to be escheated to West Virginia. The complaints sought to examine company records and assess penalties and costs in an undetermined amount. In December 2013, the court dismissed both complaints, holding that the West Virginia Uniform Unclaimed Property Act does not require insurance companies to periodically search the Social Security Administrations' Death Master File or escheat unclaimed life insurance benefits until a claim has been submitted. In January 2014, the plaintiff appealed the dismissal of both complaints. In June 2015, the appellate court reinstated the case, holding that the West Virginia Uniform Unclaimed Property Act requires insurers to make reasonable efforts to determine whether their insureds are still living. The case was remanded to the trial court where we answered the complaints. In May 2013, a purported class action complaint was filed in the Superior Court of California, County of Los Angeles. The plaintiff sought to represent a class of California insureds who were issued long-term care policies containing an inflation protection feature. The plaintiff alleged we incorrectly administered the inflation protection feature, resulting in an underpayment of benefits. The complaint made allegations against us for breach of contract, bad faith, fraud, violation of Business and Professions Code 17200, and injunctive relief. We removed the case to the United States District Court for the Central District of California, and plaintiff filed an amended complaint on behalf of a nationwide class of insureds who were issued long-term care policies containing an inflation protection feature. After we answered the complaint, the court permitted the plaintiff to file another amended complaint entitled Michael Don, Executor of The Estate of Ruben Don, Leroy Little, by and through his Guardian ad Litem Tamara Pelham, and Carolyn Little v. Unum Group, and Unum Life Insurance Company of America containing similar allegations. In April 2015, we again answered the complaint. The plaintiffs filed a motion seeking certification of five subclasses, and we filed our opposition. In February 2016, the plaintiffs filed a motion for preliminary approval of settlement for a class of certain insureds issued long-term care policies containing an inflation protection feature as well as certain insureds who requested copies of their long-term care policies. The court has not yet ruled on this motion. We accrued an estimated loss contingency in 2015, the amount of which was immaterial to our consolidated financial position and results of operations. Summary Various lawsuits against us, in addition to those discussed above, have arisen in the normal course of business. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning our compliance with applicable insurance and other laws and regulations. Given the complexity and scope of our litigation and regulatory matters, it is not possible to predict the ultimate outcome of all pending investigations or legal proceedings or provide reasonable estimates of potential losses, except if noted in connection with specific matters. It is possible that our results of operations or cash flows in a particular period could be materially affected by an ultimate unfavorable outcome of pending litigation or regulatory matters depending, in part, on our results of operations or cash flows for the particular period. We believe, however, that the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on our financial position. |
Statutory Financial Information |
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Statutory Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statutory Financial Information | Statutory Financial Information Statutory Net Income, Capital and Surplus, and Dividends Statutory net income for U.S. life insurance companies is reported in conformity with statutory accounting principles prescribed by the National Association of Insurance Commissioners (NAIC) and adopted by applicable domiciliary state laws. The commissioners of the states of domicile have the right to permit other specific practices that may deviate from prescribed practices. Our traditional U.S. life insurance subsidiaries have no prescribed or permitted statutory accounting practices that differ materially from statutory accounting principles prescribed by the NAIC. Certain of our traditional U.S. life insurance subsidiaries cede blocks of business to Northwind Re and Fairwind Insurance Company (Fairwind), both of which are affiliated captive reinsurance subsidiaries (captive reinsurers) domiciled in the United States, with Unum Group as the ultimate parent. These captive reinsurers were established for the limited purpose of reinsuring risks attributable to specified policies issued or reinsured by our life insurance subsidiaries. During 2015, Tailwind Reinsurance Company (Tailwind Re), also an affiliated captive reinsurance subsidiary domiciled in the United States, merged with one of our traditional U.S. life insurance subsidiaries, with the traditional U.S. life insurance subsidiary remaining as the surviving company. Following the merger, the majority of the block of business previously ceded to Tailwind Re was ceded to an unaffiliated reinsurer. These two transactions did not materially impact the statutory results of operations, capital adequacy, or ability of our insurance subsidiaries to pay dividends to Unum Group. Fairwind, which is domiciled in the State of Vermont, is required to follow GAAP in accordance with Vermont reporting requirements for pure captive insurance companies, unless the commissioner permits the use of some other basis of accounting. Fairwind has permission from Vermont to follow accounting practices that are generally consistent with current NAIC statutory accounting principles for its insurance reserves and invested assets supporting reserves. All other assets and liabilities are accounted for in accordance with GAAP, as prescribed by Vermont, which allows for the full recognition of deferred tax assets which are more likely than not to be realized. Statutory accounting principles have a stricter limitation for the recognition of deferred tax assets. The impact of following the prescribed and permitted practices of Vermont rather than statutory accounting principles prescribed by the NAIC resulted in higher capital and surplus for Fairwind of approximately $208 million and $200 million as of December 31, 2015 and 2014, respectively. Northwind Re has no material state prescribed accounting practices that differ from statutory accounting principles prescribed by the NAIC. The operating results and capital and surplus of our traditional U.S. life insurance subsidiaries and our captive reinsurers, prepared in accordance with prescribed or permitted accounting practices of the NAIC or states of domicile, are presented separately below.
As derived from the most recent annual statutory basis financial statements filed with insurance regulators, the statutory net income and statutory capital and surplus of our United Kingdom insurance subsidiary, Unum Limited, were £50.7 million and £445.9 million, respectively. Risk‑based capital (RBC) standards for U.S. life insurance companies are prescribed by the NAIC. The domiciliary states of our U.S. insurance subsidiaries have all adopted a version of the RBC model formula of the NAIC, which prescribes a system for assessing the adequacy of statutory capital and surplus for all life and health insurers. The basis of the system is a risk-based formula that applies prescribed factors to the various risk elements in a life and health insurer's business to report a minimum capital requirement proportional to the amount of risk assumed by the insurer. The life and health RBC formula is designed to measure annually (i) the risk of loss from asset defaults and asset value fluctuations, (ii) the risk of loss from adverse mortality and morbidity experience, (iii) the risk of loss from mismatching of asset and liability cash flow due to changing interest rates, and (iv) business risks. The formula is used as an early warning tool to identify companies that are potentially inadequately capitalized. State insurance laws grant insurance regulators the authority to require various actions by, or take various actions against, insurers whose total adjusted capital does not meet or exceed certain RBC levels. The total adjusted capital of each of our U.S. insurance subsidiaries at December 31, 2015 is in excess of those RBC levels. Restrictions under applicable state insurance laws limit the amount of dividends that can be paid to a parent company from its insurance subsidiaries in any 12-month period without prior approval by regulatory authorities. For life insurance companies domiciled in the U.S., that limitation generally equals, depending on the state of domicile, either ten percent of an insurer's statutory surplus with respect to policyholders as of the preceding year end or the statutory net gain from operations, excluding realized investment gains and losses, of the preceding year. The payment of dividends to a parent company from a life insurance subsidiary is generally further limited to the amount of unassigned funds. Based on the restrictions under current law, $663.6 million is available, without prior approval by regulatory authorities, during 2016 for the payment of dividends to Unum Group from its traditional U.S. life insurance subsidiaries. The ability of our captive insurers to pay dividends to their respective parent companies will depend on their satisfaction of applicable regulatory requirements and on the performance of the business reinsured. We also have the ability to receive dividends from Unum Limited, subject to applicable insurance company regulations and capital guidance in the United Kingdom. As of January 1, 2016, Solvency II, a European Union directive that prescribes new capital requirements and risk management standards for the European insurance industry, replaced the previous capital requirements for Unum Limited. There was no material change to capital requirements or to solvency ratios. We have £147.8 million available for the payment of dividends from Unum Limited during 2016, subject to regulatory approval. Deposits At December 31, 2015 and 2014, our U.S. insurance subsidiaries had on deposit with U.S. regulatory authorities securities with a book value of $284.1 million and $279.1 million, respectively, held for the protection of policyholders. |
Unaudited Quarterly Results |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information | Quarterly Results of Operations (Unaudited) The following is a summary of our unaudited quarterly results of operations for 2015 and 2014:
Items affecting the comparability of our financial results are as follows:
See Notes 6 and 9 for further discussion of the above items. |
Schedule I - Summary of Investments, Other Than Investments in Related Parties Schedule I - Summary of Investments, Other Than Investments in Related Parties |
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Summary of Investments, Other than Investments in Related Parties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Investments, Other Than Investments in Related Parties | SCHEDULE I--SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES Unum Group and Subsidiaries
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Schedule II Condensed Finacial Information of Registrant |
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Schedule II - Condensed Financial Info [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure | SCHEDULE II--CONDENSED FINANCIAL INFORMATION OF REGISTRANT Unum Group (Parent Company) BALANCE SHEETS
See notes to condensed financial information. SCHEDULE II--CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued) Unum Group (Parent Company) STATEMENTS OF INCOME
See notes to condensed financial information. SCHEDULE II--CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued) Unum Group (Parent Company) STATEMENTS OF CASH FLOWS
See notes to condensed financial information. SCHEDULE II--CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued) Unum Group (Parent Company) NOTES TO CONDENSED FINANCIAL INFORMATION Note 1 - Basis of Presentation The accompanying condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto of Unum Group and subsidiaries. Note 2 - Debt Debt consists of the following:
The senior notes due 2018 and the medium-term notes are non-callable. The junior subordinated debt securities are callable under limited, specified circumstances. The remaining debt is callable and may be redeemed, in whole or in part, at any time. The aggregate contractual principal maturities are $350.0 million in 2016, $200.0 million in 2018, $400.0 million in 2020, and $1,557.6 million thereafter. Fair Value Hedges As of December 31, 2015 and 2014, we had $600.0 million notional amount interest rate swaps which effectively convert certain of our unsecured senior notes into floating rate debt. Under these agreements, we receive fixed rates of interest and pay variable rates of interest, based off of the three-month London Interbank Offered Rate (LIBOR). Junior Subordinated Debt Securities In 1998, Provident Financing Trust I (the trust), a 100 percent-owned finance subsidiary of Unum Group, issued $300.0 million of 7.405% capital securities in a public offering. These capital securities are fully and unconditionally guaranteed by Unum Group, have a liquidation value of $1,000 per capital security, and have a mandatory redemption feature under certain circumstances. Unum Group issued 7.405% junior subordinated deferrable interest debentures to the trust in connection with the capital securities offering. The debentures mature in 2038. The sole assets of the trust are the junior subordinated debt securities. SCHEDULE II--CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued) Unum Group (Parent Company) NOTES TO CONDENSED FINANCIAL INFORMATION - CONTINUED Interest Paid Interest paid on debt and related securities during 2015, 2014, and 2013 was $130.9 million, $123.6 million, and $116.5 million, respectively. Credit Facility In August 2013, we entered into a five-year, $400.0 million unsecured revolving credit facility. Under the terms of the agreement, we may request that the credit facility be increased up to $600.0 million. Borrowings under the credit facility are for general corporate uses and are subject to financial covenants, negative covenants, and events of default that are customary. The credit facility provides for borrowing at an interest rate based either on the prime rate or LIBOR. In addition, the credit facility provides for the issuance of letters of credit subject to certain terms and limitations. At December 31, 2015 and 2014, letters of credit totaling $2.1 million had been issued from the credit facility, but there were no borrowed amounts outstanding. Note 3 - Guarantees In 2005, UnumProvident Finance Company plc, a wholly-owned subsidiary of Unum Group, issued $400.0 million of 6.85% senior debentures. The remaining balance on these debentures, which we had fully and unconditionally guaranteed, matured in 2015. |
Schedule III Supplementary Insurance Information |
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Schedule III - Supplementary Insurance Info [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplementary Insurance Information, for Insurance Companies Disclosure | SCHEDULE III--SUPPLEMENTARY INSURANCE INFORMATION Unum Group and Subsidiaries
SCHEDULE III--SUPPLEMENTARY INSURANCE INFORMATION Unum Group and Subsidiaries (continued from preceding page)
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Schedule IV Reinsurance |
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Schedule IV - Reinsurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Text Block] | SCHEDULE IV--REINSURANCE Unum Group and Subsidiaries
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Schedule V Valuation and Qualifying Accounts |
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Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE V--VALUATION AND QUALIFYING ACCOUNTS Unum Group and Subsidiaries
See Notes 3 and 7 of the "Notes to Consolidated Financial Statements" contained herein in Item 8 for a discussion of the mortgage loan allowance for credit losses and the deferred tax asset valuation allowance not included in the amounts reported above. |
Signficant Accounting Policies (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation: The accompanying consolidated financial statements of Unum Group and its subsidiaries (the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). Such accounting principles differ from statutory accounting principles (see Note 15). Intercompany transactions have been eliminated. |
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Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein. |
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Fixed Maturity Securities | Fixed Maturity Securities: Fixed maturity securities include long-term bonds and redeemable preferred stocks. Our fixed maturity securities are classified as available-for-sale and reported at fair value. Changes in the fair value of available-for-sale fixed maturity securities, except for amounts related to other-than-temporary impairment losses recognized in earnings, are reported as a component of other comprehensive income. These amounts are net of income tax and valuation adjustments to deferred acquisition costs and reserves for future policy and contract benefits which would have been recorded had the related unrealized gain or loss on these securities been realized. Interest income is recorded as part of net investment income when earned, using an effective yield method giving effect to amortization of premium and accretion of discount. Included within fixed maturity securities are mortgage-backed and asset-backed securities. We recognize investment income on these securities using a constant effective yield based on projected prepayments of the underlying loans and the estimated economic life of the securities. Actual prepayment experience is reviewed periodically, and effective yields are recalculated when differences arise between prepayments originally projected and the actual prepayments received and currently projected. The effective yield is recalculated on a retrospective basis, and the adjustment is reflected in net investment income. For fixed maturity securities on which collection of investment income is uncertain, we discontinue the accrual of investment income and recognize investment income when interest and dividends are received. Payment terms specified for fixed maturity securities may include a prepayment penalty for unscheduled payoff of the investment. Prepayment penalties are recognized as investment income when received. In determining when a decline in fair value below amortized cost of a fixed maturity security is other than temporary, we evaluate available information, both positive and negative, in reaching our conclusions. In particular, we consider the strength of the issuer's balance sheet, its debt obligations and near-term funding requirements, cash flow and liquidity, the profitability of its core businesses, the availability of marketable assets which could be sold to increase liquidity, its industry fundamentals and regulatory environment, and its access to capital markets. Although all available and applicable factors are considered in our analysis, our expectation of recovering the entire amortized cost basis of the security, whether we intend to sell the security, whether it is more likely than not that we will be required to sell the security before recovery of its amortized cost, and whether the security is current on principal and interest payments are the most critical factors in determining whether impairments are other than temporary. The significance of the decline in value and the length of time during which there has been a significant decline are also important factors, but we generally do not record an impairment loss based solely on these two factors, since often other more relevant factors will impact our evaluation of a security. If we determine that the decline in value of an investment is other than temporary, the investment is written down to fair value, and an impairment loss is recognized in the current period, either in earnings or in both earnings and other comprehensive income, as applicable. Other-than-temporary impairment losses on fixed maturity securities which we intend to sell or more likely than not will be required to sell before recovery in value are recognized in earnings and equal the entire difference between the security's amortized cost basis and its fair value. For securities which we do not intend to sell and it is not more likely than not that we will be required to sell before recovery in value, other-than-temporary impairment losses recognized in earnings generally represent the difference between the amortized cost of the security and the present value of our best estimate of cash flows expected to be collected, discounted using the effective interest rate implicit in the security at the date of acquisition. For fixed maturity securities for which we have recognized an other-than-temporary impairment loss through earnings, if through subsequent evaluation there is a significant increase in expected cash flows, the difference between the new amortized cost basis and the cash flows expected to be collected is accreted as net investment income over the remaining life of the investment. See Notes 2 and 3. |
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Mortgage Loans | Mortgage Loans: Mortgage loans are generally held for investment and are carried at amortized cost less an allowance for probable losses. Interest income is accrued on the principal amount of the loan based on the loan's contractual interest rate. Prepayment penalties are recognized as investment income when received. For mortgage loans on which collection of interest income is uncertain, we discontinue the accrual of interest and recognize it in the period when an interest payment is received. We typically do not resume the accrual of interest on mortgage loans on nonaccrual status until there are significant improvements in the underlying financial condition of the borrower. We consider a loan to be delinquent if full payment is not received in accordance with the contractual terms of the loan. We evaluate each of our mortgage loans individually for impairment and assign an internal credit quality rating based on a comprehensive rating system used to evaluate the credit risk of the loan. Although all available and applicable factors are considered in our analysis, loan-to-value and debt service coverage ratios are the most critical factors in determining impairment. If we determine that it is probable we will be unable to collect all amounts due under the contractual terms of a mortgage loan, we establish an allowance for credit loss. If we expect to foreclose on the property, the amount of the allowance typically equals the excess carrying value of the mortgage loan over the fair value of the underlying collateral. If we expect to retain the mortgage loan until payoff, the allowance equals the excess carrying value of the mortgage loan over the expected future cash flows of the loan. Additions and reductions to our allowance for credit losses on mortgage loans are reported as a component of net realized investment gains and losses. We do not purchase mortgage loans with existing credit impairments. See Note 3. |
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Policy Loans | Policy Loans: Policy loans are presented at unpaid balances directly related to policyholders. Interest income is accrued on the principal amount of the loan based on the loan's contractual interest rate. Included in policy loans are $3,150.1 million and $3,068.4 million of policy loans ceded to reinsurers at December 31, 2015 and 2014, respectively. |
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Other Investments | Other Long-term Investments: Other long-term investments are comprised primarily of tax credit partnerships and private equity partnerships. Tax credit partnerships in which we have invested were formed for the purpose of investing in the construction and rehabilitation of low-income housing. Because the partnerships are structured such that there is no return of principal, the primary sources of investment return from our tax credit partnerships are tax credits and tax benefits derived from passive losses on the investments, both of which may exhibit variability over the life of the investment. These partnerships are accounted for using either the proportional or the effective yield method, depending primarily on whether the tax credits are guaranteed through a letter of credit, a tax indemnity agreement, or another similar arrangement. Tax credits received from these partnerships are reported in our consolidated statements of income as either a reduction of premium tax or a reduction of income tax. The amortization of the principal amount invested in these partnerships is reported as a component of either premium tax or income tax. Our investments in private equity partnerships are passive in nature. The underlying investments held by these partnerships include both equity and debt securities and are accounted for using the equity or cost method, depending on the level of ownership and the degree of our influence over partnership operating and financial policies. For partnerships accounted for under the equity method, our portion of partnership earnings is reported as a component of net investment income in our consolidated statements of income. For those partnerships accounted for under the cost method, we record income received from partnership distributions as either a component of net investment income or net realized investment gain or loss, in accordance with the source of the funds distributed from the partnership. See Notes 2 and 3. Short-term Investments: Short-term investments are carried at cost. Short-term investments include investments maturing within one year, such as corporate commercial paper and U.S. Treasury bills, bank term deposits, and other cash accounts and cash equivalents earning interest. See Note 2. |
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Cash and Bank Deposits | Cash and Bank Deposits: Cash and bank deposits include cash on hand and non-interest bearing cash and deposit accounts. |
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Derivative Financial Instruments | Derivative Financial Instruments: Derivative financial instruments (including certain derivative instruments embedded in other contracts) are recognized as either other long-term investments or other liabilities in our consolidated balance sheets and are reported at fair value. The accounting for a derivative depends on whether it has been designated and qualifies as part of a hedging relationship, and further, on the type of hedging relationship. To qualify for hedge accounting, at the inception of the hedging transaction, we formally document the risk management objective and strategy for undertaking the hedging transaction, as well as the designation of the hedge as either a fair value hedge or a cash flow hedge. Included in this documentation is how the hedging instrument is expected to hedge the designated risk(s) related to specific assets or liabilities on the balance sheet or to specific forecasted transactions as well as a description of the method that will be used to retrospectively and prospectively assess the hedging instrument's effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk(s) of the hedged item. Hedge effectiveness is formally assessed at inception and periodically throughout the life of the designated hedging relationship, using qualitative and quantitative methods. Qualitative methods include comparison of critical terms of the derivative to the hedged item. Quantitative methods include regression or other statistical analysis of changes in fair value or cash flows associated with the hedge relationship. Changes in the fair value of a derivative designated as a fair value hedge, including amounts measured as ineffectiveness, and changes in the fair value of the hedged item attributable to the risk being hedged are recognized in earnings as a component of net realized investment gain or loss during the period of change in fair value. The gain or loss on the termination of a fair value hedge is recognized in earnings as a component of net realized investment gain or loss during the period in which the termination occurs. When interest rate swaps are used in hedge accounting relationships, periodic settlements are recorded in the same income statement line as the related settlements of the hedged items. To the extent it is effective, changes in the fair value of a derivative designated as a cash flow hedge are reported in other comprehensive income and reclassified into earnings and reported on the same income statement line item as the hedged item and in the same period or periods during which the hedged item affects earnings. The ineffective portion of the hedge, if any, is recognized in earnings as a component of net realized investment gain or loss during the period of change in fair value. The gain or loss on the termination of an effective cash flow hedge is reported in other comprehensive income and reclassified into earnings and reported on the same income statement line item as the hedged item and in the same period or periods during which the hedged item affects earnings. Gains or losses on the termination of ineffective fair value or cash flow hedges are reported in earnings as a component of net realized investment gain or loss. In the event a hedged item is disposed of or the anticipated transaction being hedged is no longer likely to occur, we will terminate the related derivative and recognize the gain or loss on termination in current earnings as a component of net realized investment gain or loss. In the event a hedged item is disposed of subsequent to the termination of the hedging transaction, we reclassify any remaining gain or loss on the cash flow hedge out of accumulated other comprehensive income into earnings as a component of the same income statement line item wherein we report the gain or loss on disposition of the hedged item. For a derivative not designated as a hedging instrument, changes in the fair value of the derivative, together with the payment of periodic fees, if applicable, are recognized in earnings as a component of net realized investment gain or loss during the period of change in fair value. Cash flow activity from the settlement of derivative contracts is reported in the consolidated statements of cash flows as a component of proceeds from sales and maturities of other investments. In our consolidated balance sheets, we do not offset fair value amounts recognized for derivatives executed with the same counterparty under a master netting agreement and fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from those master netting agreements. See Notes 2, 3 and 4. |
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Fair Value Measurement | Fair Value Measurement: Certain assets and liabilities are reported at fair value in our consolidated balance sheets and in our notes to our consolidated financial statements. We define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Therefore, fair value represents an exit price, not an entry price. The exit price objective applies regardless of our intent and/or ability to sell the asset or transfer the liability at the measurement date. Assets or liabilities with readily available actively quoted prices or for which fair value can be measured from actively quoted prices in active markets generally have more pricing observability and less judgment utilized in measuring fair value. When actively quoted prices are not available, fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical assets or liabilities, or other observable inputs. If observable inputs are not available, unobservable inputs and/or adjustments to observable inputs requiring management judgment are used to determine fair value. We categorize our assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the significance of the inputs. The fair value hierarchy gives the highest priority to inputs which are unadjusted and represent quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). See Note 2. |
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Realized Investment Gains and Losses | Realized Investment Gains and Losses: Realized investment gains and losses are reported as a component of revenue in the consolidated statements of income and are based upon specific identification of the investments sold. See Note 3. |
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Deferred Acquisition Costs | Deferred Acquisition Costs: Incremental direct costs associated with the successful acquisition of new or renewal insurance contracts have been deferred. Such costs include commissions, other agency compensation, certain selection and policy issue expenses, and certain field expenses. Acquisition costs that do not vary with the production of new business, such as commissions on group products which are generally level throughout the life of the policy, are excluded from deferral. Deferred acquisition costs are subject to recoverability testing at the time of policy issue and loss recognition testing in subsequent years. Deferred acquisition costs related to non-interest sensitive policies are amortized in proportion to the premium income we expect to receive over the life of the policies. Deferred acquisition costs related to interest sensitive policies are amortized over the lives of the policies in relation to the present value of estimated gross profits from surrender charges, mortality margins, investment returns, and expense margins. Deviations from projections result in a change to the rate of amortization in the period during which such events occur. Generally, the amortization periods for these policies approximate the estimated lives of the policies. For certain products, policyholders can elect to modify product benefits, features, rights, or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacement transactions. Internal replacement transactions wherein the modification does not substantially change the policy are accounted for as continuations of the replaced contracts. Unamortized deferred acquisition costs from the original policy continue to be amortized over the expected life of the new policy, and the costs of replacing the policy are accounted for as policy maintenance costs and expensed as incurred. Internal replacement transactions, principally on group contracts, that result in a policy that is substantially changed are accounted for as an extinguishment of the original policy and the issuance of a new policy. Unamortized deferred acquisition costs on the original policy that was replaced are immediately expensed, and the costs of acquiring the new policy are capitalized and amortized in accordance with our accounting policies for deferred acquisition costs. Loss recognition is performed on an annual basis, or more frequently if appropriate, using best estimate assumptions as to future experience as of the date of the test. Insurance contracts are grouped for each major product line within a segment when we perform the loss recognition tests. If loss recognition testing indicates that deferred acquisition costs are not recoverable, the deficiency is charged to expense. |
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Goodwill | Goodwill: Goodwill is the excess of the amount paid to acquire a business over the fair value of the net assets acquired. We review the carrying amount of goodwill for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the carrying amount might not be recoverable. Goodwill impairment testing compares the fair value of a reporting unit with its carrying amount, including goodwill. The fair values of the reporting units are determined using discounted cash flow models. The critical estimates necessary in determining fair value are projected earnings and the discount rate. We set our discount rate assumption based on an expected risk adjusted cost of capital. If the fair value of the reporting unit to which the goodwill relates is less than the carrying amount of the unamortized goodwill, the carrying amount is reduced with a corresponding charge to expense. |
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Property and Equipment | Property and Equipment: Property and equipment is reported at cost less accumulated depreciation, which is calculated on the straight-line method over the estimated useful life. The accumulated depreciation for property and equipment was $902.6 million and $823.3 million as of December 31, 2015 and 2014, respectively. |
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Value of Business Acquired | Value of Business Acquired: Value of business acquired represents the present value of future profits recorded in connection with the acquisition of a block of insurance policies. The asset is amortized based upon expected future premium income for non-interest sensitive insurance policies and estimated future gross profits from surrender charges, mortality margins, investment returns, and expense margins for interest sensitive insurance policies. The value of business acquired, which is included in other assets in our consolidated balance sheets, was $24.0 million and $15.2 million at December 31, 2015 and 2014, respectively. The accumulated amortization for value of business acquired was $133.1 million and $134.7 million as of December 31, 2015 and 2014, respectively. The amortization of value of business acquired, which is included in other expenses in the consolidated statements of income, was $4.6 million, $3.5 million, and $4.5 million for the years ended December 31, 2015, 2014, and 2013, respectively. We periodically review the carrying amount of value of business acquired using the same methods used to evaluate deferred acquisition costs. |
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Policy and Contract Benefits | Policy and Contract Benefits: Policy and contract benefits represent amounts paid and expected to be paid based on reported losses and estimates of incurred but not reported losses for non-interest sensitive life and accident and health products. For interest sensitive products, benefits are the amounts paid and expected to be paid on insured claims in excess of the policyholders' policy fund balances. |
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Reserves for Policy and Contract Benefits | Reserves for Policy and Contract Benefits: Policy reserves represent future policy and contract benefits for claims not yet incurred. Policy reserves for non-interest sensitive life and accident and health products are determined using the net level premium method. The reserves are calculated based upon assumptions as to interest, persistency, morbidity, and mortality that were appropriate at the date of issue. Discount rate assumptions are based on actual and expected net investment returns. Persistency assumptions are based on our actual historical experience adjusted for future expectations. Claim incidence and claim resolution rate assumptions related to morbidity and mortality are based on actual experience or industry standards adjusted as appropriate to reflect our actual experience and future expectations. The assumptions vary by plan, year of issue, and policy duration and include a provision for adverse deviation. Policy reserves for group single premium annuities are developed on a net single premium method. The reserves are calculated based on assumptions as to interest, mortality, and retirement that were appropriate at the date of issue. Mortality assumptions are based upon industry standards adjusted as appropriate to reflect our actual experience and future expectations. The assumptions vary by year of issue. Policy reserves for interest sensitive products are principally policyholder account values. Policy reserves require ongoing loss recognition testing. We perform loss recognition tests on our policy reserves annually, or more frequently if appropriate, using best estimate assumptions as of the date of the test, without a provision for adverse deviation. We group the policy reserves for each major product line within a segment when we perform the loss recognition tests. If the policy reserves determined using these best estimate assumptions are higher than our existing policy reserves net of any deferred acquisition cost balance, the existing policy reserves are increased or deferred acquisition costs are reduced to immediately recognize the deficiency. This becomes the new basis for policy reserves going forward, subject to future loss recognition testing. Claim reserves represent future policy and contract benefits for claims that have been incurred or are estimated to have been incurred but not yet reported to us. Our claim reserves relate primarily to disability policies and are calculated based on assumptions as to interest and claim resolution rates that are currently appropriate. Claim resolution rate assumptions are based on our actual experience. The interest rate assumptions used for discounting claim reserves are based on projected portfolio yield rates, after consideration for defaults and investment expenses, for the assets supporting the liabilities for the various product lines. Unlike policy reserves for which assumptions are generally established and locked in at the time of policy issuance, claim reserves are subject to revision as current claim experience and projections of future factors affecting claim experience change. See Note 6. |
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Policyholders' Funds | Policyholders' Funds: Policyholders' funds represent customer deposits plus interest credited at contract rates. We control interest rate risk by investing in quality assets which have an aggregate duration that closely matches the expected duration of the liabilities. |
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Income Tax | Income Tax: Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial statement purposes and the amounts used for income tax purposes. Deferred taxes have been measured using enacted statutory income tax rates and laws that are currently in effect. We record deferred tax assets for tax positions taken in the U.S. and other tax jurisdictions based on our assessment of whether a position is more likely than not to be sustained upon examination based solely on its technical merits. A valuation allowance is established for deferred tax assets when it is more likely than not that an amount will not be realized. See Note 7. |
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Short-term and Long-term Debt | Short-term and Long-term Debt: Debt is generally carried at the unpaid principal balance, net of unamortized discount or premium. Short-term debt consists of debt due within the next twelve months, including that portion of debt otherwise classified as long-term. Original issue discount or premium as well as debt issue costs are recognized as a component of interest expense over the period the debt is expected to be outstanding. The carrying amount of long-term debt that is part of a fair value hedge program includes an adjustment to reflect the effect of the change in fair value attributable to the risk being hedged. Net interest settlements for fair value hedges on our long-term debt are recognized as a component of interest expense. See Note 8. |
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Treasury Stock and Retirement of Common Stock | Treasury Stock and Retirement of Common Stock: Treasury stock is reflected as a reduction of stockholders' equity at cost. When shares are retired, the par value is removed from common stock, and the excess of the repurchase price over par is allocated between additional paid-in capital and retained earnings. |
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Revenue Recognition | Revenue Recognition: Our non-interest sensitive life and accident and health products are long-duration contracts, and premium income is recognized as revenue when due from policyholders. If the contracts are experience rated, the estimated ultimate premium is recognized as revenue over the period of the contract. The estimated ultimate premium, which is revised to reflect current experience, is based on estimated claim costs, expenses, and profit margins. For interest sensitive products, the amounts collected from policyholders are considered deposits, and only the deductions during the period for cost of insurance, policy administration, and surrenders are included in revenue. Policyholders' funds represent funds deposited by contract holders and are not included in revenue. |
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Revenue from Service Fees | Fees from our administrative-services only and family medical leave products are reported as other income when services are rendered. |
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Reinsurance | Reinsurance: We routinely enter into reinsurance agreements with other insurance companies to spread risk and thereby limit losses from large exposures. For each of our reinsurance agreements, we determine if the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. If we determine that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, we record the agreement using the deposit method of accounting. Reinsurance activity is accounted for on a basis consistent with the terms of the reinsurance contracts and the accounting used for the original policies issued. Premium income and benefits and change in reserves for future benefits are presented in our consolidated statements of income net of reinsurance ceded. Ceded liabilities for policy and contract benefits, future policy and contract benefits, and unearned premiums are reported on a gross basis in our consolidated balance sheets, as are ceded policy loans. Our reinsurance recoverable includes the balances due from reinsurers under the terms of the reinsurance agreements for these ceded balances as well as settlement amounts currently due. Where applicable, gains or losses on reinsurance transactions are deferred and amortized into earnings based upon expected future premium income for non-interest sensitive insurance policies and estimated future gross profits for interest sensitive insurance policies. The deferred gain on reinsurance included in other liabilities in our consolidated balance sheets at December 31, 2015 and 2014 was $31.9 million and $41.7 million, respectively. Under ceded reinsurance agreements wherein we are not relieved of our legal liability to our policyholders, if the assuming reinsurer is unable to meet its obligations, we remain contingently liable. We evaluate the financial condition of reinsurers and monitor concentration of credit risk to minimize this exposure. We may also require assets in trust, letters of credit, or other acceptable collateral to support our reinsurance recoverable balances. In the event that reinsurers do not meet their obligations to us under the terms of the reinsurance agreements, certain amounts reported in our reinsurance recoverable could become uncollectible, in which case the reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. See Note 12. |
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Premium Tax Expense | Premium Tax Expense: Premium tax expense is included in other expenses in the consolidated statements of income. For the years ended December 31, 2015, 2014, and 2013, premium tax expense was $146.5 million, $139.2 million, and $137.0 million, respectively. |
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Stock-Based Compensation | Stock-Based Compensation: The cost of stock-based compensation is generally measured based on the grant-date fair value of the award. The Black-Scholes options valuation model is used for estimating the fair value of stock options, and the Monte-Carlo valuation model is used for estimating the fair value of performance share units. Restricted stock units are valued based on the fair value of common stock at the grant date, and cash-settled awards are measured each reporting period based on the current stock price. Stock-based awards are expensed over the requisite service period, or for performance share units over the requisite service period, or remaining service period, if and when it becomes probable that the performance conditions will be satisfied, with an offsetting increase to additional paid-in capital in stockholders' equity. See Note 11. |
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Earnings Per Share | Earnings Per Share: We compute basic earnings per share by dividing net income by the weighted average number of common shares outstanding for the period. Earnings per share assuming dilution is computed by dividing net income by the weighted average number of shares outstanding for the period plus the shares representing the dilutive effect of stock-based awards. In computing earnings per share assuming dilution, only potential common shares resulting from stock-based awards that are dilutive (those that reduce earnings per share) are included. We use the treasury stock method to account for the effect of outstanding stock options and nonvested stock awards on the computation of earnings per share assuming dilution. See Note 10. |
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Translation of Foreign Curency | Translation of Foreign Currency: Revenues and expenses of our foreign operations are translated at average exchange rates. Assets and liabilities are translated at the rate of exchange on the balance sheet dates. The translation gain or loss is generally reported in accumulated other comprehensive income, net of deferred tax. We do not provide for deferred taxes to the extent unremitted foreign earnings are deemed permanently invested. |
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Accounting for Participating Individual Life Insurance | Accounting for Participating Individual Life Insurance: Participating policies issued by one of our subsidiaries prior to its 1986 conversion from a mutual to a stock life insurance company will remain participating as long as the policies remain in-force. A Participation Fund Account (PFA) was established for the benefit of all such individual participating life and annuity policies and contracts. The assets of the PFA provide for the benefit, dividend, and certain expense obligations of the participating individual life insurance policies and annuity contracts. The assets of the PFA were $338.8 million and $358.6 million at December 31, 2015 and 2014, respectively. |
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Accounting Updates Outstanding | Accounting Updates Outstanding:
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Significant Accounting Policies (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements | Accounting Updates Adopted in 2015:
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Fair Values of Financial Instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amount and Fair Value of Financial Instruments | Presented as follows are the carrying amounts and fair values of financial instruments. The carrying values of financial instruments such as short-term investments, cash and bank deposits, accounts and premiums receivable, accrued investment income, and securities lending agreements approximate fair value due to the short-term nature of the instruments. As such, these financial instruments are not included in the following chart.
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Fair Values by Fair Value Hierarchy Input Level | Fair value measurements by input level for financial instruments carried at fair value are as follows:
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Transfers of Assets between Level 1 and Level 2 | Transfers of assets between Level 1 and Level 2 are as follows:
Transfers between Level 1 and Level 2 occurred due to the change in availability of either a TRACE or broker market maker price. Depending on current market conditions, the availability of these Level 1 prices can vary from period to period. For fair value measurements of financial instruments that were transferred either into or out of Level 1 or 2, we reflect the transfers using the fair value at the beginning of the period. |
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Changes in Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs | Changes in assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are as follows:
Realized and unrealized investment gains and losses presented in the preceding tables represent gains and losses only for the time during which the applicable financial instruments were classified as Level 3. The transfers between levels resulted primarily from a change in observability of three inputs used to determine fair values of the securities transferred: (1) transactional data for new issuance and secondary trades, (2) broker/dealer quotes and pricing, primarily related to changes in the level of activity in the market and whether the market was considered orderly, and (3) comparable bond metrics from which to perform an analysis. For fair value measurements of financial instruments that were transferred either into or out of Level 3, we reflect the transfers using the fair value at the beginning of the period. We believe this allows for greater transparency, as all changes in fair value that arise during the reporting period of the transfer are disclosed as a component of our Level 3 reconciliation. Gains (losses) which are included in earnings and are attributable to the change in unrealized gains or losses relating to assets or liabilities valued using significant unobservable inputs and still held at each year end were $(37.7) million and $3.3 million for the years ended December 31, 2015 and 2014, respectively. These amounts relate entirely to the changes in fair value of an embedded derivative in a modified coinsurance arrangement which are reported as realized investment gains and losses. |
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Quantitative Information Regarding Significant Unobservable Inputs | The table below provides quantitative information regarding the significant unobservable inputs used in Level 3 fair value measurements derived from internal models. Certain securities classified as Level 3 are excluded from the table below due to limitations in our ability to obtain the underlying inputs used by external pricing sources.
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Investments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Notes to Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Fair Values of Securities by Security Type | At December 31, 2015 and 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:
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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.
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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.
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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:
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Mortgage Loans by Property Type and Geographic Region | Mortgage loans by property type and geographic region are presented below.
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Mortgage Loans by Credit Quality Indicators | Mortgage loans, sorted by the applicable credit quality indicators, are as follows:
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Troubled Debt Restructurings on Financing Receivables | A summary of our troubled debt restructurings is as follows:
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Activity in the Allowance for Credit Losses | The activity in the allowance for credit losses is as follows:
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Remaining Contractual Maturity of Securities Lending Agreements | The remaining contractual maturities of our securities lending agreements disaggregated by class of collateral pledged are as follows:
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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.
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Investment Income | Net Investment Income Net investment income reported in our consolidated statements of income is as follows:
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Realized Investment Gains and Losses Reported in Consolidated Statements of Income | Realized Investment Gain and Loss Realized investment gains and losses are as follows:
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Derivative Financial Instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional Amounts for Each Category of Derivative Activity | The table below summarizes, by notional amounts, the activity for each category of derivatives. The notional amounts represent the basis upon which our counterparty pay and receive amounts are calculated.
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Location and Fair Values of Derivative Financial Instruments | The following tables summarize the location and fair values of derivative financial instruments, as reported in our consolidated balance sheets.
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Location of Gains and Losses on Derivative Instruments Designated as Cash Flow Hedging Instruments | The following table summarizes the location of gains and losses on the effective portion of derivative financial instruments designated as cash flow hedging instruments, as reported in our consolidated statements of income and consolidated statements of comprehensive income.
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Gains and Losses on Derivatives Not Designated as Hedging Instruments | The following table summarizes the location of gains and losses on our derivatives not designated as hedging instruments, as reported in our consolidated statements of income.
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Accumulated Other Comprehensive Income (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income | Components of our accumulated other comprehensive income, after tax, and related changes are as follows:
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Schedule of Components of Unrealized Gain on Securities | The net unrealized gain on securities consists of the following components:
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Schedule of Reclassification out of Accumulated Other Comprehensive Income | Amounts reclassified from accumulated other comprehensive income were recognized in our consolidated statements of income as follows:
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Liability for Unpaid Claims (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | Changes in the liability for unpaid claims and claim adjustment expenses are as follows:
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Reconciliation of Policy and Contract Benefits and Reserves for Future Policy and Contract Benefits to Balance Sheet Amounts | A reconciliation of policy and contract benefits and reserves for future policy and contract benefits as reported in our consolidated balance sheets to the liability for unpaid claims and claim adjustment expenses is as follows:
The adjustment related to unrealized investment gains and losses reflects the changes that would be necessary to policyholder liabilities if the unrealized investment gains and losses related to the corresponding available-for-sale securities had been realized. Changes in this adjustment are reported as a component of other comprehensive income or loss. |
Income Tax (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | Total income tax expense (benefit) is allocated as follows:
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Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the income tax provision at the U.S. federal statutory rate to the income tax rate as reported in our consolidated statements of income is as follows. Certain prior year amounts have been reclassified to conform to current year reporting.
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Schedule of Deferred Tax Assets and Liabilities | Our net deferred tax liability consists of the following. Certain prior year amounts have been reclassified to conform to current year reporting.
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Schedule of Income before Income Tax, Domestic and Foreign | Our consolidated statements of income include amounts subject to both domestic and foreign taxation. The income and related tax expense (benefit) are as follows:
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Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible | Our consolidated statements of income include the following changes in unrecognized tax benefits:
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Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Debt consists of the following:
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Employee Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Projected Benefit Obligations and Fair Value of Plan Assets | The following tables provide the changes in the benefit obligation and fair value of plan assets and statements of the funded status of the plans.
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Schedule of Amounts Recognized in Balance Sheet | The amounts recognized in our consolidated balance sheets for our pension and OPEB plans at December 31, 2015 and 2014 are as follows.
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Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | The following table provides the changes recognized in other comprehensive income for the years ended December 31, 2015 and 2014.
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Fair Values by Fair Value Hierarchy Input Level | Fair value measurements by input level for financial instruments carried at fair value are as follows:
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Changes in assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are as follows:
Realized and unrealized investment gains and losses presented in the preceding tables represent gains and losses only for the time during which the applicable financial instruments were classified as Level 3. The transfers between levels resulted primarily from a change in observability of three inputs used to determine fair values of the securities transferred: (1) transactional data for new issuance and secondary trades, (2) broker/dealer quotes and pricing, primarily related to changes in the level of activity in the market and whether the market was considered orderly, and (3) comparable bond metrics from which to perform an analysis. For fair value measurements of financial instruments that were transferred either into or out of Level 3, we reflect the transfers using the fair value at the beginning of the period. We believe this allows for greater transparency, as all changes in fair value that arise during the reporting period of the transfer are disclosed as a component of our Level 3 reconciliation. Gains (losses) which are included in earnings and are attributable to the change in unrealized gains or losses relating to assets or liabilities valued using significant unobservable inputs and still held at each year end were $(37.7) million and $3.3 million for the years ended December 31, 2015 and 2014, respectively. These amounts relate entirely to the changes in fair value of an embedded derivative in a modified coinsurance arrangement which are reported as realized investment gains and losses. |
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Schedule of Assumptions Used | We use a December 31 measurement date for each of our plans. The weighted average assumptions used in the measurement of our benefit obligations as of December 31 and our net periodic benefit costs for the years ended December 31 are as follows:
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Schedule of Net Benefit Costs | Net Periodic Benefit Cost The following table provides the components of the net periodic benefit cost for the plans described above for the years ended December 31.
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Schedule of Expected Benefit Payments | The following table provides expected benefit payments, which reflect expected future service, as appropriate.
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Pension Benefits, U.S. Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values by Fair Value Hierarchy Input Level | The categorization of fair value measurements by input level for the invested assets in our U.S. pension plans is as follows:
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Changes in our U.S. pension plans' assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2015 and 2014 are as follows:
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Pension Benefits, Non U.S. Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values by Fair Value Hierarchy Input Level | The categorization of fair value measurements by input level for the assets in our U.K. pension plan is as follows.
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Other Postretirement Benefit Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values by Fair Value Hierarchy Input Level | The categorization of fair value measurements by input level for the assets in our OPEB plan is as follows:
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The fair value is represented by the actuarial present value of future cash flows of the contracts. Changes in our OPEB plan assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2015 and 2014 are as follows:
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Stockholders' Equity and Earnings Per Common Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity and Earnings Per Common Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Earnings Per Share | Net income per common share is determined as follows:
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Treasury Stock Transactions | Our board of directors has authorized the repurchase of Unum Group's common stock under the following repurchase programs:
The May 2015 share repurchase program has an expiration date of November 21, 2016. Common stock repurchases, which are accounted for using the cost method and classified as treasury stock until otherwise retired, were as follows:
(1) Includes commissions of $0.3 million, $0.1 million, and $0.2 million for the years ended December 31, 2015, 2014, and 2013, respectively. |
Stock-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity for PSUs Classified as Equity | Activity for PSUs classified as equity is as follows:
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Valuation Assumptions on PSU Grants | The fair value of PSUs is estimated on the date of initial grant using the Monte-Carlo simulation model. The assumptions used to value PSUs granted during the years shown are as follows:
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Schedule of Stock Option Activity | Stock option activity is summarized as follows:
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Valuation Assumptions on Stock Option Grants | The fair value of stock options is estimated on the date of initial grant using the Black-Scholes valuation model. The grant date fair value and the assumptions used to value stock options granted during 2013 are as follows. There were no stock options granted in 2015 or 2014.
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Schedule of Compensation Cost for Share-based Payment Arrangements | Compensation expense for the stock plans, as reported in our consolidated statements of income, is as follows:
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Restricted Stock Units (RSUs) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity for Restricted Stock Units and Cash Settled Awards Activity | Activity for RSUs classified as equity is as follows:
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Cash Settled Awards | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity for Restricted Stock Units and Cash Settled Awards Activity | Activity for cash-settled awards classified as a liability is as follows:
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Fair Value and Intrinsic Value of Cash Settled Awards and Stock Options |
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Stock Options | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value and Intrinsic Value of Cash Settled Awards and Stock Options | The intrinsic value of options exercised and fair value of options vested are as follows:
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Reinsurance (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance Premiums for Insurance Companies | Reinsurance data is as follows:
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Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premium Income by Major Line of Business within Each Segment |
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Selected Operating Statement Data by Segment |
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Deferred Policy Acquisition Costs by Segment |
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Assets by Segment |
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Reconciliation of Operating Revenue and Operating Income by Segment to Total Revenue and Income Before Income Tax | A reconciliation of "operating revenue" to total revenue and "operating income" to income before income tax is as follows:
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Statutory Financial Information (Tables) |
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Statutory Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statutory Earnings and Surplus | The operating results and capital and surplus of our traditional U.S. life insurance subsidiaries and our captive reinsurers, prepared in accordance with prescribed or permitted accounting practices of the NAIC or states of domicile, are presented separately below.
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Unaudited Quarterly Results (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | The following is a summary of our unaudited quarterly results of operations for 2015 and 2014:
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Schedule II Condensed Financial Information of Registrant (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Schedule II - Condensed Financial Information of Registrant Balance Sheet [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Balance Sheets | BALANCE SHEETS
See notes to condensed financial information. |
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Condensed Financial Information of Parent Company Only Statement of Earnings | STATEMENTS OF INCOME
See notes to condensed financial information. |
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Condensed Financial Information of Parent Company Only Statements of Cash Flows | STATEMENTS OF CASH FLOWS
See notes to condensed financial information. |
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Schedule of Debt Instruments Parent Company Only | Debt consists of the following:
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Significant Accounting Policies Schedule of New Accounting Pronouncements (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
|
Consolidated Statements of Income | ||||||||||||
Net Investment Income | $ 636.4 | $ 612.1 | $ 630.7 | $ 602.0 | $ 632.7 | $ 611.3 | $ 632.4 | $ 615.8 | $ 2,481.2 | $ 2,492.2 | $ 2,506.9 | |
Income Tax - Current | 342.1 | 135.5 | 328.5 | |||||||||
Income Tax - Deferred | 29.1 | 4.4 | 44.5 | |||||||||
Net Income | $ 226.1 | $ 203.8 | $ 224.3 | $ 212.9 | $ (282.2) | $ 219.1 | $ 239.4 | $ 225.8 | $ 867.1 | $ 402.1 | $ 847.0 | |
Basic Earnings Per Share | $ 0.93 | $ 0.83 | $ 0.90 | $ 0.85 | $ (1.12) | $ 0.86 | $ 0.93 | $ 0.87 | $ 3.51 | $ 1.57 | $ 3.20 | |
Diluted Earnings Per Share | $ 0.93 | $ 0.83 | $ 0.90 | $ 0.84 | $ (1.12) | $ 0.86 | $ 0.93 | $ 0.86 | $ 3.50 | $ 1.57 | $ 3.19 | |
Consolidated Statements of Stockholders' Equity | ||||||||||||
Retained Earnings | $ 7,995.2 | $ 7,302.3 | $ 7,995.2 | $ 7,302.3 | $ 8,064.0 | $ 7,363.5 | ||||||
Consolidated Statements of Cash Flows | ||||||||||||
Change in Income Taxes | 180.5 | (18.6) | (23.5) | |||||||||
Non-cash Components of Net Investment Income | (194.1) | (195.7) | (226.3) | |||||||||
Consolidated Balance Sheets | ||||||||||||
Other Long-term Investments | 583.0 | 545.0 | 583.0 | 545.0 | ||||||||
Deferred Income Tax | $ 91.8 | 62.0 | $ 91.8 | 62.0 | ||||||||
Previously Reported | ||||||||||||
Consolidated Statements of Income | ||||||||||||
Net Investment Income | 2,477.4 | 2,492.1 | ||||||||||
Income Tax - Current | 103.3 | 296.6 | ||||||||||
Income Tax - Deferred | 10.5 | 50.5 | ||||||||||
Net Income | $ 413.4 | $ 858.1 | ||||||||||
Basic Earnings Per Share | $ 1.62 | $ 3.24 | ||||||||||
Diluted Earnings Per Share | $ 1.61 | $ 3.23 | ||||||||||
Consolidated Statements of Stockholders' Equity | ||||||||||||
Retained Earnings | 7,332.8 | $ 7,332.8 | $ 8,083.2 | 7,371.6 | ||||||||
Consolidated Statements of Cash Flows | ||||||||||||
Change in Income Taxes | (44.7) | (49.4) | ||||||||||
Non-cash Components of Net Investment Income | (180.9) | (211.5) | ||||||||||
Consolidated Balance Sheets | ||||||||||||
Other Long-term Investments | 591.9 | 591.9 | ||||||||||
Deferred Income Tax | 78.4 | 78.4 | ||||||||||
Accounting Standards Update 2014-01 | Restatement Adjustment | ||||||||||||
Consolidated Statements of Income | ||||||||||||
Net Investment Income | 14.8 | 14.8 | ||||||||||
Income Tax - Current | 32.2 | 31.9 | ||||||||||
Income Tax - Deferred | (6.1) | (6.0) | ||||||||||
Net Income | $ (11.3) | $ (11.1) | ||||||||||
Basic Earnings Per Share | $ (0.05) | $ (0.04) | ||||||||||
Diluted Earnings Per Share | $ (0.04) | $ (0.04) | ||||||||||
Consolidated Statements of Stockholders' Equity | ||||||||||||
Retained Earnings | (30.5) | $ (30.5) | $ (19.2) | $ (8.1) | ||||||||
Consolidated Statements of Cash Flows | ||||||||||||
Change in Income Taxes | 26.1 | 25.9 | ||||||||||
Non-cash Components of Net Investment Income | (14.8) | $ (14.8) | ||||||||||
Consolidated Balance Sheets | ||||||||||||
Other Long-term Investments | (46.9) | (46.9) | ||||||||||
Deferred Income Tax | $ (16.4) | $ (16.4) |
Significant Accounting Policies - Additional Information (Detail) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015
USD ($)
Integer
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of Operating Segments | Integer | 3 | ||
Ceded Policy Loans | $ 3,150.1 | $ 3,068.4 | |
Accumulated Depreciation for Property and Equipment | 902.6 | 823.3 | |
Value of Business Acquired | 24.0 | 15.2 | |
Accumulated Amortization of Value of Business Acquired | 133.1 | 134.7 | |
Amortization of Value of Business Acquired | 4.6 | 3.5 | $ 4.5 |
Deferred Gain on Reinsurance | 31.9 | 41.7 | |
Premium tax expense | 146.5 | 139.2 | $ 137.0 |
Participation Fund Account Assets (PFA) | $ 338.8 | $ 358.6 |
Carrying Amount and Fair Value of Financial Instruments (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Assets | ||
Fixed Maturity Securities | $ 43,354.4 | $ 45,064.9 |
Mortgage Loans | 1,883.6 | 1,856.6 |
Policy Loans | 3,395.4 | 3,306.6 |
Other Long-term Investments | ||
Derivative Assets | 49.8 | 28.0 |
Equity Securities | 1.4 | 12.5 |
Policyholders' Funds | ||
Long-term Debt | 2,475.1 | 2,628.7 |
Advances from FHLB | 350.0 | |
Other Liabilities | ||
Derivative Liabilities | 137.8 | 142.8 |
Carrying Amount | ||
Assets | ||
Fixed Maturity Securities | 43,354.4 | 45,064.9 |
Mortgage Loans | 1,883.6 | 1,856.6 |
Policy Loans | 3,395.4 | 3,306.6 |
Other Long-term Investments | ||
Derivative Assets | 49.8 | 28.0 |
Equity Securities | 1.4 | 12.5 |
Miscellaneous Long-Term Investments | 474.4 | 438.7 |
Policyholders' Funds | ||
Deferred Annuity Products | 608.8 | 621.4 |
Supplementary Contracts without Life Contingencies | 641.1 | 600.4 |
Short-term Debt | 352.4 | 151.9 |
Long-term Debt | 2,475.1 | 2,628.7 |
Advances from FHLB | 350.0 | 0.0 |
Other Liabilities | ||
Derivative Liabilities | 50.2 | 92.9 |
Embedded Derivative in Modified Coinsurance Arrangement | 87.6 | 49.9 |
Unfunded commitment to fund Investment Partnerships | 5.0 | 12.8 |
Fair Value | ||
Assets | ||
Fixed Maturity Securities | 43,354.4 | 45,064.9 |
Mortgage Loans | 2,013.9 | 2,024.2 |
Policy Loans | 3,498.0 | 3,407.6 |
Other Long-term Investments | ||
Derivative Assets | 49.8 | 28.0 |
Equity Securities | 1.4 | 12.5 |
Miscellaneous Long-Term Investments | 474.4 | 438.7 |
Policyholders' Funds | ||
Deferred Annuity Products | 608.8 | 621.4 |
Supplementary Contracts without Life Contingencies | 641.1 | 600.4 |
Short-term Debt | 366.2 | 158.9 |
Long-term Debt | 2,645.9 | 2,912.6 |
Advances from FHLB | 350.0 | 0.0 |
Other Liabilities | ||
Derivative Liabilities | 50.2 | 92.9 |
Embedded Derivative in Modified Coinsurance Arrangement | 87.6 | 49.9 |
Unfunded commitment to fund Investment Partnerships | $ 5.0 | $ 12.8 |
Fair Value Measurements by Input Level (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Fixed Maturity Securities | ||
Fixed Maturity Securities | $ 43,354.4 | $ 45,064.9 |
Other Long-term Investments | ||
Derivative Assets | 49.8 | 28.0 |
Equity Securities | 1.4 | 12.5 |
Other Liabilities | ||
Derivative Liabilities | 137.8 | 142.8 |
Fair Value, Inputs, Level 1 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 2,926.8 | 2,960.3 |
Other Long-term Investments | ||
Derivative Assets | 0.0 | 0.0 |
Equity Securities | 0.0 | 0.0 |
Other Liabilities | ||
Derivative Liabilities | 0.0 | 0.0 |
Fair Value, Inputs, Level 2 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 38,546.4 | 40,130.0 |
Other Long-term Investments | ||
Derivative Assets | 49.8 | 28.0 |
Equity Securities | 0.0 | 11.1 |
Other Liabilities | ||
Derivative Liabilities | 50.2 | 92.9 |
Fair Value, Inputs, Level 3 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 1,881.2 | 1,974.6 |
Other Long-term Investments | ||
Derivative Assets | 0.0 | 0.0 |
Equity Securities | 1.4 | 1.4 |
Other Liabilities | ||
Derivative Liabilities | 87.6 | 49.9 |
Interest Rate Swaps | ||
Other Long-term Investments | ||
Derivative Assets | 2.4 | 5.7 |
Other Liabilities | ||
Derivative Liabilities | 12.3 | 20.8 |
Interest Rate Swaps | Fair Value, Inputs, Level 1 | ||
Other Long-term Investments | ||
Derivative Assets | 0.0 | 0.0 |
Other Liabilities | ||
Derivative Liabilities | 0.0 | 0.0 |
Interest Rate Swaps | Fair Value, Inputs, Level 2 | ||
Other Long-term Investments | ||
Derivative Assets | 2.4 | 5.7 |
Other Liabilities | ||
Derivative Liabilities | 12.3 | 20.8 |
Interest Rate Swaps | Fair Value, Inputs, Level 3 | ||
Other Long-term Investments | ||
Derivative Assets | 0.0 | 0.0 |
Other Liabilities | ||
Derivative Liabilities | 0.0 | 0.0 |
Foreign Exchange Contracts | ||
Other Long-term Investments | ||
Derivative Assets | 47.4 | 22.3 |
Other Liabilities | ||
Derivative Liabilities | 37.6 | 70.9 |
Foreign Exchange Contracts | Fair Value, Inputs, Level 1 | ||
Other Long-term Investments | ||
Derivative Assets | 0.0 | 0.0 |
Other Liabilities | ||
Derivative Liabilities | 0.0 | 0.0 |
Foreign Exchange Contracts | Fair Value, Inputs, Level 2 | ||
Other Long-term Investments | ||
Derivative Assets | 47.4 | 22.3 |
Other Liabilities | ||
Derivative Liabilities | 37.6 | 70.9 |
Foreign Exchange Contracts | Fair Value, Inputs, Level 3 | ||
Other Long-term Investments | ||
Derivative Assets | 0.0 | 0.0 |
Other Liabilities | ||
Derivative Liabilities | 0.0 | 0.0 |
Credit Default Swaps | ||
Other Liabilities | ||
Derivative Liabilities | 0.3 | 1.2 |
Credit Default Swaps | Fair Value, Inputs, Level 1 | ||
Other Liabilities | ||
Derivative Liabilities | 0.0 | 0.0 |
Credit Default Swaps | Fair Value, Inputs, Level 2 | ||
Other Liabilities | ||
Derivative Liabilities | 0.3 | 1.2 |
Credit Default Swaps | Fair Value, Inputs, Level 3 | ||
Other Liabilities | ||
Derivative Liabilities | 0.0 | 0.0 |
Embedded Derivative in Modified Coinsurance Arrangement | ||
Other Liabilities | ||
Derivative Liabilities | 87.6 | 49.9 |
Embedded Derivative in Modified Coinsurance Arrangement | Fair Value, Inputs, Level 1 | ||
Other Liabilities | ||
Derivative Liabilities | 0.0 | 0.0 |
Embedded Derivative in Modified Coinsurance Arrangement | Fair Value, Inputs, Level 2 | ||
Other Liabilities | ||
Derivative Liabilities | 0.0 | 0.0 |
Embedded Derivative in Modified Coinsurance Arrangement | Fair Value, Inputs, Level 3 | ||
Other Liabilities | ||
Derivative Liabilities | 87.6 | 49.9 |
United States Government and Government Agencies and Authorities | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 1,465.2 | 1,238.5 |
United States Government and Government Agencies and Authorities | Fair Value, Inputs, Level 1 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 97.3 | 297.5 |
United States Government and Government Agencies and Authorities | Fair Value, Inputs, Level 2 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 1,367.9 | 941.0 |
United States Government and Government Agencies and Authorities | Fair Value, Inputs, Level 3 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 0.0 | 0.0 |
States, Municipalities, and Political Subdivisions | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 2,117.1 | 2,121.5 |
States, Municipalities, and Political Subdivisions | Fair Value, Inputs, Level 1 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 0.0 | 0.0 |
States, Municipalities, and Political Subdivisions | Fair Value, Inputs, Level 2 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 1,994.9 | 1,981.4 |
States, Municipalities, and Political Subdivisions | Fair Value, Inputs, Level 3 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 122.2 | 140.1 |
Foreign Governments | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 1,051.6 | 1,307.4 |
Foreign Governments | Fair Value, Inputs, Level 1 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 0.0 | 0.0 |
Foreign Governments | Fair Value, Inputs, Level 2 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 998.7 | 1,238.1 |
Foreign Governments | Fair Value, Inputs, Level 3 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 52.9 | 69.3 |
Public Utilities | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 8,020.4 | 8,550.6 |
Public Utilities | Fair Value, Inputs, Level 1 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 59.1 | 106.2 |
Public Utilities | Fair Value, Inputs, Level 2 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 7,687.2 | 8,129.4 |
Public Utilities | Fair Value, Inputs, Level 3 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 274.1 | 315.0 |
Mortgage/Asset-backed Securities | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 2,481.5 | 2,431.8 |
Mortgage/Asset-backed Securities | Fair Value, Inputs, Level 1 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 0.0 | 0.0 |
Mortgage/Asset-backed Securities | Fair Value, Inputs, Level 2 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 2,481.5 | 2,431.8 |
Mortgage/Asset-backed Securities | Fair Value, Inputs, Level 3 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 0.0 | 0.0 |
Corporate Debt Securities | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 28,171.4 | 29,365.2 |
Corporate Debt Securities | Fair Value, Inputs, Level 1 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 2,770.4 | 2,556.6 |
Corporate Debt Securities | Fair Value, Inputs, Level 2 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 23,992.8 | 25,383.3 |
Corporate Debt Securities | Fair Value, Inputs, Level 3 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 1,408.2 | 1,425.3 |
Redeemable Preferred Stocks | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 47.2 | 49.9 |
Redeemable Preferred Stocks | Fair Value, Inputs, Level 1 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 0.0 | 0.0 |
Redeemable Preferred Stocks | Fair Value, Inputs, Level 2 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | 23.4 | 25.0 |
Redeemable Preferred Stocks | Fair Value, Inputs, Level 3 | ||
Fixed Maturity Securities | ||
Fixed Maturity Securities | $ 23.8 | $ 24.9 |
Transfers of Assets between Level 1 and Level 2 (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Transfers Between Level 1 and Level 2 | ||
Level 1 from Level 2 Transfers | $ 1,376.5 | $ 1,837.1 |
Level 2 from Level 1 Transfers | 1,837.1 | 1,851.7 |
United States Government and Government Agencies and Authorities | ||
Transfers Between Level 1 and Level 2 | ||
Level 1 from Level 2 Transfers | 0.0 | 163.2 |
Level 2 from Level 1 Transfers | 195.3 | 0.0 |
Public Utilities | ||
Transfers Between Level 1 and Level 2 | ||
Level 1 from Level 2 Transfers | 7.3 | 81.8 |
Level 2 from Level 1 Transfers | 85.1 | 253.4 |
Corporate Debt Securities | ||
Transfers Between Level 1 and Level 2 | ||
Level 1 from Level 2 Transfers | 1,369.2 | 1,592.1 |
Level 2 from Level 1 Transfers | $ 1,556.7 | $ 1,598.3 |
Changes in Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs (Level 3) (Detail) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
States, Municipalities, and Political Subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance of Assets Measured with Unobservable Inputs | $ 140.1 | $ 175.1 |
Investment Gain (Loss) included in Earnings | (0.1) | 0.0 |
Investment Gain (Loss) included in OCI | (5.3) | 21.0 |
Investment Purchases | 12.0 | 0.0 |
Investment Sales | (16.5) | (1.4) |
Level 3 Transfers Into | 0.0 | 0.0 |
Level 3 Transfers Out of | (8.0) | (54.6) |
Ending Balance of Assets Measured with Unobservable Inputs | 122.2 | 140.1 |
Foreign Governments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance of Assets Measured with Unobservable Inputs | 69.3 | 78.5 |
Investment Gain (Loss) included in Earnings | 0.0 | 1.1 |
Investment Gain (Loss) included in OCI | (1.4) | 0.8 |
Investment Purchases | 0.0 | 0.0 |
Investment Sales | (15.0) | (11.1) |
Level 3 Transfers Into | 0.0 | 0.0 |
Level 3 Transfers Out of | 0.0 | 0.0 |
Ending Balance of Assets Measured with Unobservable Inputs | 52.9 | 69.3 |
Public Utilities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance of Assets Measured with Unobservable Inputs | 315.0 | 139.3 |
Investment Gain (Loss) included in Earnings | 0.0 | 0.0 |
Investment Gain (Loss) included in OCI | (6.9) | 6.9 |
Investment Purchases | 40.0 | 0.0 |
Investment Sales | (2.4) | (0.8) |
Level 3 Transfers Into | 118.5 | 199.9 |
Level 3 Transfers Out of | (190.1) | (30.3) |
Ending Balance of Assets Measured with Unobservable Inputs | 274.1 | 315.0 |
Mortgage/Asset-backed Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance of Assets Measured with Unobservable Inputs | 0.0 | 0.5 |
Investment Gain (Loss) included in Earnings | (0.2) | |
Investment Gain (Loss) included in OCI | 0.3 | |
Investment Purchases | 0.0 | |
Investment Sales | (0.6) | |
Level 3 Transfers Into | 0.0 | |
Level 3 Transfers Out of | 0.0 | |
Ending Balance of Assets Measured with Unobservable Inputs | 0.0 | |
Corporate Debt Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance of Assets Measured with Unobservable Inputs | 1,425.3 | 1,923.3 |
Investment Gain (Loss) included in Earnings | (7.0) | 0.7 |
Investment Gain (Loss) included in OCI | (113.2) | 44.8 |
Investment Purchases | 55.3 | 91.1 |
Investment Sales | (220.8) | (147.7) |
Level 3 Transfers Into | 810.2 | 626.9 |
Level 3 Transfers Out of | (541.6) | (1,113.8) |
Ending Balance of Assets Measured with Unobservable Inputs | 1,408.2 | 1,425.3 |
Redeemable Preferred Stocks | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance of Assets Measured with Unobservable Inputs | 24.9 | 23.8 |
Investment Gain (Loss) included in Earnings | 0.0 | 0.0 |
Investment Gain (Loss) included in OCI | (1.1) | 1.1 |
Investment Purchases | 0.0 | 0.0 |
Investment Sales | 0.0 | 0.0 |
Level 3 Transfers Into | 0.0 | 0.0 |
Level 3 Transfers Out of | 0.0 | 0.0 |
Ending Balance of Assets Measured with Unobservable Inputs | 23.8 | 24.9 |
Fixed Maturity Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance of Assets Measured with Unobservable Inputs | 1,974.6 | 2,340.5 |
Investment Gain (Loss) included in Earnings | (7.1) | 1.6 |
Investment Gain (Loss) included in OCI | (127.9) | 74.9 |
Investment Purchases | 107.3 | 91.1 |
Investment Sales | (254.7) | (161.6) |
Level 3 Transfers Into | 928.7 | 826.8 |
Level 3 Transfers Out of | (739.7) | (1,198.7) |
Ending Balance of Assets Measured with Unobservable Inputs | 1,881.2 | 1,974.6 |
Equity Securites | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance of Assets Measured with Unobservable Inputs | 1.4 | 4.6 |
Investment Gain (Loss) included in Earnings | 0.0 | 10.5 |
Investment Gain (Loss) included in OCI | 0.0 | (0.2) |
Investment Purchases | 0.0 | 0.0 |
Investment Sales | 0.0 | (13.5) |
Level 3 Transfers Into | 0.0 | 0.0 |
Level 3 Transfers Out of | 0.0 | 0.0 |
Ending Balance of Assets Measured with Unobservable Inputs | 1.4 | 1.4 |
Embedded Derivative in Modified Coinsurance Arrangement | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Derivatives Measured with Unobservable Inputs, Beginning Balance | (49.9) | (53.2) |
Derivative Liability Gain (Loss) Included in Earnings | (37.7) | 3.3 |
Derivative Liability Gain (Loss) Included in OCI | 0.0 | 0.0 |
Derivative Purchases | 0.0 | 0.0 |
Derivative Sales | 0.0 | 0.0 |
Derivative Transfers Into Level 3 | 0.0 | 0.0 |
Derivative Transfers Out of Level 3 | 0.0 | 0.0 |
Derivatives Measured with Unobservable Inputs, Ending Balance | $ (87.6) | $ (49.9) |
Quantitative Information Regarding Significant Unobservable Inputs (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Millions |
12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||||||||||||
Embedded Derivative Liability | |||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||||||||||||||||
Fair Value of Financial Instrument Using Internally Derived Unobservable Inputs | $ (87.6) | $ (49.9) | |||||||||||||||
Embedded Derivative Liability | Projected Cash Flows | |||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||||||||||||||||
Significant Assumptions to Calculating Fair Value of Level 3 Instrument | [1] | Actuarial Assumptions | Actuarial Assumptions | ||||||||||||||
States, Municipalities, and Political Subdivisions - Private | |||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||||||||||||||||
Fair Value of Financial Instrument Using Internally Derived Unobservable Inputs | $ 73.3 | $ 101.0 | |||||||||||||||
States, Municipalities, and Political Subdivisions - Private | Minimum | |||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||||||||||||||||
Change in Benchmark Reference | [2] | 0.50% | |||||||||||||||
Comparability Adjustments | [3] | 0.25% | |||||||||||||||
States, Municipalities, and Political Subdivisions - Private | Maximum | |||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||||||||||||||||
Change in Benchmark Reference | [2] | 1.00% | |||||||||||||||
Comparability Adjustments | [3] | 1.00% | |||||||||||||||
States, Municipalities, and Political Subdivisions - Private | Weighted Average | |||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||||||||||||||||
Change in Benchmark Reference | [2] | 0.70% | |||||||||||||||
Comparability Adjustments | [3] | 0.71% | |||||||||||||||
States, Municipalities, and Political Subdivisions - Public | |||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||||||||||||||||
Fair Value of Financial Instrument Using Internally Derived Unobservable Inputs | $ 12.0 | ||||||||||||||||
States, Municipalities, and Political Subdivisions - Public | Market Convention | |||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||||||||||||||||
Significant Assumptions to Calculating Fair Value of Level 3 Instrument | [4] | Priced at Par | |||||||||||||||
All Other Corporate Bonds - Private | |||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||||||||||||||||
Fair Value of Financial Instrument Using Internally Derived Unobservable Inputs | $ 151.0 | $ 432.8 | |||||||||||||||
All Other Corporate Bonds - Private | Market Convention | |||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||||||||||||||||
Significant Assumptions to Calculating Fair Value of Level 3 Instrument | [4] | Priced at Par | Priced at Par | ||||||||||||||
All Other Corporate Bonds - Private | Minimum | |||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||||||||||||||||
Comparability Adjustments | [3] | 0.50% | 0.50% | ||||||||||||||
Discount for Size | [5] | 0.50% | 0.50% | ||||||||||||||
Lack of Marketability | [6] | 1.00% | 0.48% | ||||||||||||||
Volatility of Credit | [7] | 0.25% | 0.20% | ||||||||||||||
All Other Corporate Bonds - Private | Maximum | |||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||||||||||||||||
Comparability Adjustments | [3] | 0.50% | 0.70% | ||||||||||||||
Discount for Size | [5] | 0.50% | 0.50% | ||||||||||||||
Lack of Marketability | [6] | 2.00% | 0.48% | ||||||||||||||
Volatility of Credit | [7] | 5.56% | 2.00% | ||||||||||||||
All Other Corporate Bonds - Private | Weighted Average | |||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||||||||||||||||
Comparability Adjustments | [3] | 0.50% | 0.60% | ||||||||||||||
Discount for Size | [5] | 0.50% | 0.50% | ||||||||||||||
Lack of Marketability | [6] | 1.75% | 0.48% | ||||||||||||||
Volatility of Credit | [7] | 0.94% | 0.64% | ||||||||||||||
All Other Corporate Bonds - Public | |||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||||||||||||||||
Fair Value of Financial Instrument Using Internally Derived Unobservable Inputs | $ 36.2 | $ 128.7 | |||||||||||||||
All Other Corporate Bonds - Public | Minimum | |||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||||||||||||||||
Comparability Adjustments | [3] | 0.10% | |||||||||||||||
Lack of Marketability | [6] | 1.00% | 0.20% | ||||||||||||||
Volatility of Credit | [7] | (0.30%) | |||||||||||||||
All Other Corporate Bonds - Public | Maximum | |||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||||||||||||||||
Comparability Adjustments | [3] | 0.50% | |||||||||||||||
Lack of Marketability | [6] | 1.00% | 0.35% | ||||||||||||||
Volatility of Credit | [7] | 0.50% | |||||||||||||||
All Other Corporate Bonds - Public | Weighted Average | |||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||||||||||||||||
Comparability Adjustments | [3] | 0.40% | |||||||||||||||
Lack of Marketability | [6] | 1.00% | 0.29% | ||||||||||||||
Volatility of Credit | [7] | (0.05%) | |||||||||||||||
Equity Securites | |||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||||||||||||||||
Fair Value of Financial Instrument Using Internally Derived Unobservable Inputs | $ 1.1 | $ 1.1 | |||||||||||||||
Equity Securites | Market Convention | |||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | |||||||||||||||||
Significant Assumptions to Calculating Fair Value of Level 3 Instrument | [4] | Priced at Cost or Owner's Equity | Priced at Cost or Owner's Equity | ||||||||||||||
|
Fair Value of Financial Instruments Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Ceded Policy Loans | $ 3,150.1 | $ 3,068.4 | |
Long-term Debt | 2,475.1 | 2,628.7 | |
Gain (Loss) on Embedded Derivative | $ (37.7) | 3.3 | $ 30.7 |
Other Than Fair Value Inputs Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Percentage of Total Fair Value of Fixed Maturities Securities | 93.20% | ||
Fair Value, Inputs, Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Long-term Debt | $ 956.4 | 849.7 | |
Percentage of Total Fair Value of Fixed Maturities Securities | 6.80% | ||
Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Long-term Debt | $ 1,689.5 | $ 2,062.9 | |
Fair Value, Inputs, Level 2 | Pricing Service | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Percentage of Total Fair Value of Fixed Maturities Securities | 78.30% | ||
Fair Value, Inputs, Level 2 | Other Observable Market Data | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Percentage of Total Fair Value of Fixed Maturities Securities | 3.40% | ||
Fair Value Inputs Level 2 Or Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Percentage of Total Fair Value of Fixed Maturities Securities | 11.50% | ||
Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Private Equity Partnership Future Liquidation Term | 1 year | ||
Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Private Equity Partnership Future Liquidation Term | 12 years |
Amortized Cost and Fair Values of Securities by Security Type (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | $ 39,658.7 | $ 38,803.4 |
Fair value of Fixed Maturity Securities | 43,354.4 | 45,064.9 |
United States Government and Government Agencies and Authorities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 1,265.8 | 983.5 |
Accumulated Gross Unrealized Gain on Securities | 207.3 | 255.5 |
Accumulated Gross Unrealized Loss on Securities | 7.9 | 0.5 |
Fair value of Fixed Maturity Securities | 1,465.2 | 1,238.5 |
States, Municipalities, and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 1,828.3 | 1,745.0 |
Accumulated Gross Unrealized Gain on Securities | 293.4 | 377.6 |
Accumulated Gross Unrealized Loss on Securities | 4.6 | 1.1 |
Fair value of Fixed Maturity Securities | 2,117.1 | 2,121.5 |
Foreign Governments | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 897.2 | 1,101.1 |
Accumulated Gross Unrealized Gain on Securities | 154.4 | 206.3 |
Accumulated Gross Unrealized Loss on Securities | 0.0 | 0.0 |
Fair value of Fixed Maturity Securities | 1,051.6 | 1,307.4 |
Public Utilities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 6,979.3 | 7,046.1 |
Accumulated Gross Unrealized Gain on Securities | 1,057.4 | 1,505.4 |
Accumulated Gross Unrealized Loss on Securities | 16.3 | 0.9 |
Fair value of Fixed Maturity Securities | 8,020.4 | 8,550.6 |
Mortgage/Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 2,318.6 | 2,224.9 |
Accumulated Gross Unrealized Gain on Securities | 167.6 | 207.0 |
Accumulated Gross Unrealized Loss on Securities | 4.7 | 0.1 |
Fair value of Fixed Maturity Securities | 2,481.5 | 2,431.8 |
All Other Corporate Bonds | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 26,325.5 | 25,658.8 |
Accumulated Gross Unrealized Gain on Securities | 2,454.1 | 3,828.6 |
Accumulated Gross Unrealized Loss on Securities | 608.2 | 122.2 |
Fair value of Fixed Maturity Securities | 28,171.4 | 29,365.2 |
Redeemable Preferred Stocks | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 44.0 | 44.0 |
Accumulated Gross Unrealized Gain on Securities | 3.8 | 5.9 |
Accumulated Gross Unrealized Loss on Securities | 0.6 | 0.0 |
Fair value of Fixed Maturity Securities | 47.2 | 49.9 |
Fixed Maturity Securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost of Fixed Maturity Securities | 39,658.7 | 38,803.4 |
Accumulated Gross Unrealized Gain on Securities | 4,338.0 | 6,386.3 |
Accumulated Gross Unrealized Loss on Securities | 642.3 | 124.8 |
Fair value of Fixed Maturity Securities | $ 43,354.4 | $ 45,064.9 |
Length of Time Fixed Maturity Securities had been in a Gross Unrealized Loss Position (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Schedule of Available-for-sale Securities | ||
Fair Value of Fixed Maturity Securities in Unrealized Loss Position Less than Twelve Months | $ 7,403.9 | $ 1,700.9 |
Accumulated Loss of Fixed Maturity Securities in Unrealized Loss Position Less than Twelve Months | 496.0 | 82.4 |
Fair Value of Fixed Maturity Securities in Unrealized Loss Position Twelve Months or Longer | 577.3 | 838.9 |
Accumulated Loss of Fixed Maturity Securities in Unrealized Loss Position Twelve Months or Longer | 146.3 | 42.4 |
United States Government and Government Agencies and Authorities | ||
Schedule of Available-for-sale Securities | ||
Fair Value of Fixed Maturity Securities in Unrealized Loss Position Less than Twelve Months | 213.5 | 0.0 |
Accumulated Loss of Fixed Maturity Securities in Unrealized Loss Position Less than Twelve Months | 7.9 | 0.0 |
Fair Value of Fixed Maturity Securities in Unrealized Loss Position Twelve Months or Longer | 0.0 | 7.4 |
Accumulated Loss of Fixed Maturity Securities in Unrealized Loss Position Twelve Months or Longer | 0.0 | 0.5 |
States, Municipalities, and Political Subdivisions | ||
Schedule of Available-for-sale Securities | ||
Fair Value of Fixed Maturity Securities in Unrealized Loss Position Less than Twelve Months | 112.3 | 1.6 |
Accumulated Loss of Fixed Maturity Securities in Unrealized Loss Position Less than Twelve Months | 4.3 | 0.0 |
Fair Value of Fixed Maturity Securities in Unrealized Loss Position Twelve Months or Longer | 3.3 | 42.0 |
Accumulated Loss of Fixed Maturity Securities in Unrealized Loss Position Twelve Months or Longer | 0.3 | 1.1 |
Public Utilities | ||
Schedule of Available-for-sale Securities | ||
Fair Value of Fixed Maturity Securities in Unrealized Loss Position Less than Twelve Months | 408.4 | 5.1 |
Accumulated Loss of Fixed Maturity Securities in Unrealized Loss Position Less than Twelve Months | 14.4 | 0.2 |
Fair Value of Fixed Maturity Securities in Unrealized Loss Position Twelve Months or Longer | 10.3 | 58.2 |
Accumulated Loss of Fixed Maturity Securities in Unrealized Loss Position Twelve Months or Longer | 1.9 | 0.7 |
Mortgage/Asset-backed Securities | ||
Schedule of Available-for-sale Securities | ||
Fair Value of Fixed Maturity Securities in Unrealized Loss Position Less than Twelve Months | 504.3 | 28.0 |
Accumulated Loss of Fixed Maturity Securities in Unrealized Loss Position Less than Twelve Months | 4.6 | 0.0 |
Fair Value of Fixed Maturity Securities in Unrealized Loss Position Twelve Months or Longer | 9.0 | 1.9 |
Accumulated Loss of Fixed Maturity Securities in Unrealized Loss Position Twelve Months or Longer | 0.1 | 0.1 |
All Other Corporate Bonds | ||
Schedule of Available-for-sale Securities | ||
Fair Value of Fixed Maturity Securities in Unrealized Loss Position Less than Twelve Months | 6,155.0 | 1,666.2 |
Accumulated Loss of Fixed Maturity Securities in Unrealized Loss Position Less than Twelve Months | 464.2 | 82.2 |
Fair Value of Fixed Maturity Securities in Unrealized Loss Position Twelve Months or Longer | 554.7 | 729.4 |
Accumulated Loss of Fixed Maturity Securities in Unrealized Loss Position Twelve Months or Longer | 144.0 | $ 40.0 |
Redeemable Preferred Stocks | ||
Schedule of Available-for-sale Securities | ||
Fair Value of Fixed Maturity Securities in Unrealized Loss Position Less than Twelve Months | 10.4 | |
Accumulated Loss of Fixed Maturity Securities in Unrealized Loss Position Less than Twelve Months | 0.6 | |
Fair Value of Fixed Maturity Securities in Unrealized Loss Position Twelve Months or Longer | 0.0 | |
Accumulated Loss of Fixed Maturity Securities in Unrealized Loss Position Twelve Months or Longer | $ 0.0 |
Distribution of the Maturity Dates for Fixed Maturity Securities (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Available-for-Sale Securities, Total Amortized Cost | ||
1 year or less | $ 1,112.2 | $ 1,372.0 |
Over 1 year through 5 years | 6,514.0 | 6,871.2 |
Over 5 years through 10 years | 10,519.3 | 9,532.9 |
Over 10 years | 19,194.6 | 18,802.4 |
Available-for-sale Securities, Debt Maturities, Gross Subtotal | 37,340.1 | 36,578.5 |
Mortgage/Asset-Backed Securities | 2,318.6 | 2,224.9 |
Amortized Cost of Fixed Maturity Securities | 39,658.7 | 38,803.4 |
Fair Value Maturity Distribution [Abstract] | ||
Total Fixed Maturity Securities | 43,354.4 | 45,064.9 |
Fair Value of Fixed Maturity Securities in Unrealized Gain Position | ||
Available-for-Sale Securities, Unrealized Gain Position, Gross Gain | ||
1 year or less | 20.6 | 34.3 |
Over 1 year through 5 years | 554.4 | 719.3 |
Over 5 years through 10 years | 746.3 | 1,003.3 |
Over 10 years | 2,849.1 | 4,422.4 |
Available-For-Sale Securities, Debt Maturities Unrealized Gain Position, Gross Gain, Gross Subtotal | 4,170.4 | 6,179.3 |
Mortgage/Asset-Backed Securities | 167.6 | 207.0 |
Total Fixed Maturity Securities | 4,338.0 | 6,386.3 |
Fair Value Maturity Distribution [Abstract] | ||
1 year or less | 1,098.8 | 1,406.3 |
Over 1 year through 5 years | 6,649.5 | 7,434.0 |
Over 5 years through 10 years | 7,124.4 | 8,792.3 |
Over 10 years | 18,532.3 | 22,490.6 |
Available-for-sale Securities, Debt Maturities, Fair Value, Gross Subtotal | 33,405.0 | 40,123.2 |
Mortgage/Asset-Backed Securities | 1,968.2 | 2,401.9 |
Total Fixed Maturity Securities | 35,373.2 | 42,525.1 |
Fair Value of Fixed Maturity Securities in Unrealized Loss Position | ||
Fair Value Maturity Distribution [Abstract] | ||
1 year or less | 33.8 | 0.0 |
Over 1 year through 5 years | 369.1 | 147.1 |
Over 5 years through 10 years | 3,820.7 | 1,663.0 |
Over 10 years | 3,244.3 | 699.8 |
Available-for-sale Securities, Debt Maturities, Fair Value, Gross Subtotal | 7,467.9 | 2,509.9 |
Mortgage/Asset-Backed Securities | 513.3 | 29.9 |
Total Fixed Maturity Securities | 7,981.2 | 2,539.8 |
Available-for-Sale Securities, Unrealized Loss Position, Gross Loss | ||
1 year or less | 0.2 | 0.0 |
Over 1 year through 5 years | 49.8 | 9.4 |
Over 5 years through 10 years | 320.5 | 80.9 |
Over 10 years | 267.1 | 34.4 |
Available-For-Sale Securities, Debt Maturities Unrealized Gain Position, Gross Loss, Gross Subtotal | 637.6 | 124.7 |
Mortgage/Asset-Backed Securities | 4.7 | 0.1 |
Total Fixed Maturity Securities | $ 642.3 | $ 124.8 |
Investments Low Income Housing Tax Credits (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Low Income Housing Tax Credits [Abstract] | ||
Affordable Housing Tax Credits | $ 41.8 | $ 41.8 |
Amortization of Affordable Housing Tax Credit Investments | (23.3) | (23.2) |
Tax Benefits from Low Income Housing Investments | $ 18.5 | $ 18.6 |
Mortgage Loans by Property Type and Geographic Region (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 1,883.6 | $ 1,856.6 |
Percent of Total | 100.00% | 100.00% |
Apartment | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 130.6 | $ 110.1 |
Percent of Total | 6.90% | 5.90% |
Industrial | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 574.1 | $ 542.9 |
Percent of Total | 30.50% | 29.20% |
Office | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 764.7 | $ 794.0 |
Percent of Total | 40.60% | 42.80% |
Retail | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 392.3 | $ 409.6 |
Percent of Total | 20.80% | 22.10% |
Other Property | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 21.9 | $ 0.0 |
Percent of Total | 1.20% | 0.00% |
New England | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 97.6 | $ 105.6 |
Percent of Total | 5.20% | 5.70% |
Mid-Atlantic | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 128.8 | $ 179.4 |
Percent of Total | 6.90% | 9.70% |
East North Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 186.4 | $ 210.6 |
Percent of Total | 9.90% | 11.40% |
West North Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 162.6 | $ 166.2 |
Percent of Total | 8.60% | 8.90% |
South Atlantic | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 409.3 | $ 453.6 |
Percent of Total | 21.70% | 24.40% |
East South Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 79.1 | $ 75.3 |
Percent of Total | 4.20% | 4.10% |
West South Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 237.6 | $ 215.6 |
Percent of Total | 12.60% | 11.60% |
Mountain | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 196.5 | $ 116.0 |
Percent of Total | 10.40% | 6.20% |
Pacific | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 385.7 | $ 334.3 |
Percent of Total | 20.50% | 18.00% |
Mortgage Loans, Sorted by Applicable Credit Quality Indicators (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 1,883.6 | $ 1,856.6 |
Loan to Value Ratio Below or Equal to 65 Percent | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | 937.2 | 898.7 |
Loan To Value Ratio Above 65 To 75 Percent | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | 842.5 | 818.0 |
Loan To Value Ratio Above 75 To 85 Percent | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | 88.4 | 102.3 |
Loan To Value Ratio Above 85 Percent | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | 15.5 | 37.6 |
Aa Credit Rating | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | 1.1 | 7.7 |
A Credit Rating | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | 586.6 | 666.0 |
Baa Credit Rating | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | 1,285.8 | 1,156.7 |
Ba Credit Rating | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | 10.1 | 13.1 |
B Credit Rating | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 0.0 | $ 13.1 |
Investments Troubled Debt Restructurings on Financing Receivables (Details) - Commercial Real Estate Portfolio Segment $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
|
Financing Receivable Modifications | |||
Recorded Investment in Mortgage Loan Modifications Due to Foreclosure | $ 0.0 | $ 18.1 | $ 4.3 |
Number of Modifications Due to Loan Foreclosure | 0 | 1 | 1 |
Activity in Allowance for Credit Losses (Detail) - Commercial Real Estate Portfolio Segment - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Financing Receivable, Allowance for Credit Losses | |||
Balance at Beginning of Year | $ 1.5 | $ 1.5 | $ 1.5 |
Provisions | 0.5 | 3.0 | 0.0 |
Charge-offs, Net of Recoveries | (2.0) | (3.0) | 0.0 |
Balance at End of Period | $ 0.0 | $ 1.5 | $ 1.5 |
Investments Remaining Contractual Maturity of Security Lending Agreements (Details) - Overnight and Continuous $ in Millions |
Dec. 31, 2015
USD ($)
|
---|---|
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | |
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | $ 29.0 |
Securities Loaned and Securities Sold under Agreement to Repurchase, Gross Including Not Subject to Master Netting Arrangement | 29.0 |
Secured Borrowings, Gross, Difference, Amount | 0.0 |
United States Government and Government Agencies and Authorities | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | |
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 1.2 |
Public Utilities | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | |
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | 4.0 |
Corporate Bond Securities - Public | |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | |
Securities Loaned, Including Not Subject to Master Netting Arrangement and Assets other than Securities Transferred | $ 23.8 |
Investments Offsetting for Derivatives and Securities Lending Balances (Details) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Offsetting Derivative Assets | ||
Gross Derivative Asset | $ 49.8 | $ 28.0 |
Derivative Liabilities Offsetting Derivative Assets in Balance Sheet | 0.0 | 0.0 |
Net Derivative Assets Reported in Balance Sheet | 49.8 | 28.0 |
Securities Received as Collateral on Derivative Assets | (12.8) | (7.2) |
Cash collateral from counterparties | (36.4) | (15.4) |
Derivative Assets Net of Collateral | 0.6 | 5.4 |
Offsetting Securities Borrowed | ||
Gross Securities Borrowed | 181.6 | 176.5 |
Liabilities Offsetting Securities Borrowed in Balance Sheet | 0.0 | 0.0 |
Net Securities Borrowed Reported in Balance Sheet | 181.6 | 176.5 |
Securities Received as Collateral on Securities Borrowed | (152.6) | (118.1) |
Cash Received as Collateral on Securities Borrowed | (29.0) | (58.4) |
Securities Borrowed Net of Collateral | 0.0 | 0.0 |
Offsetting Financial Assets | ||
Gross Financial Assets | 231.4 | 204.5 |
Financial Liabilities Offsetting Financial Assets in Balance Sheet | 0.0 | 0.0 |
Net Financial Assets Reported in Balance Sheet | 231.4 | 204.5 |
Securities Received as Collateral on Financial Assets | (165.4) | (125.3) |
Cash Received as Collateral on Financial Assets | (65.4) | (73.8) |
Financial Assets Net of Collateral | 0.6 | 5.4 |
Offsetting Derivative Liabilities | ||
Net Derivative Liabilities Reported in Balance Sheet | 137.8 | 142.8 |
Cash Collateral to counterparties | 0.0 | 0.0 |
Offsetting Securities Loaned | ||
Gross Securities Loaned | 29.0 | 58.4 |
Assets Offsetting Securities Loaned in Balance Sheet | 0.0 | 0.0 |
Net Securities Loaned Reported in Balance Sheet | 29.0 | 58.4 |
Securities Given as Collateral on Securities Loaned | (29.0) | (58.4) |
Cash Given as Collateral on Securities Loaned | 0.0 | 0.0 |
Securities Loaned Net of Collateral | 0.0 | 0.0 |
Offsetting Financial Liabilities | ||
Gross Financial Liability | 79.2 | 151.3 |
Financial Assets Offsetting Financial Liabilities in Balance Sheet | 0.0 | 0.0 |
Net Financial Liabilities Reported in Balance Sheet | 79.2 | 151.3 |
Securities Given as Collateral on Financial Liabilities | (64.6) | (125.4) |
Cash Given as Collateral on Financial Liabilities | 0.0 | 0.0 |
Financial Liabilities Net of Collateral | 14.6 | 25.9 |
Over the Counter | ||
Offsetting Derivative Liabilities | ||
Gross Derivative Liability | 50.2 | 92.9 |
Derivative Assets Offsetting Derivative Liabilities in Balance Sheet | 0.0 | 0.0 |
Net Derivative Liabilities Reported in Balance Sheet | 50.2 | 92.9 |
Securities Given as Collateral on Derivative Liabilities | (35.6) | (67.0) |
Cash Collateral to counterparties | 0.0 | 0.0 |
Derivative Liabilities Net of Collateral | $ 14.6 | $ 25.9 |
Investments Investment Income (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Net Investment Income | |||||||||||
Investment Income, Interest and Dividend | $ 2,527.0 | $ 2,536.3 | $ 2,552.1 | ||||||||
Less Investment Expenses | 31.2 | 29.0 | 29.5 | ||||||||
Less Investment Income on PFA Assets | 14.6 | 15.1 | 15.7 | ||||||||
Net Investment Income | $ 636.4 | $ 612.1 | $ 630.7 | $ 602.0 | $ 632.7 | $ 611.3 | $ 632.4 | $ 615.8 | 2,481.2 | 2,492.2 | 2,506.9 |
Fixed Maturity Securities | |||||||||||
Net Investment Income | |||||||||||
Investment Income, Interest and Dividend | 2,327.1 | 2,344.4 | 2,371.6 | ||||||||
Derivatives | |||||||||||
Net Investment Income | |||||||||||
Investment Income, Interest and Dividend | 44.2 | 40.4 | 35.2 | ||||||||
Mortgage Loans | |||||||||||
Net Investment Income | |||||||||||
Investment Income, Interest and Dividend | 114.0 | 109.8 | 109.2 | ||||||||
Policy Loans | |||||||||||
Net Investment Income | |||||||||||
Investment Income, Interest and Dividend | 16.7 | 16.3 | 15.7 | ||||||||
Other Long-term Investments | |||||||||||
Net Investment Income | |||||||||||
Investment Income, Interest and Dividend | 21.6 | 23.0 | 18.0 | ||||||||
Short-term Investments | |||||||||||
Net Investment Income | |||||||||||
Investment Income, Interest and Dividend | $ 3.4 | $ 2.4 | $ 2.4 |
Realized Investment Gains and Losses Reported in Consolidated Statements of Income (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Fixed Maturity Securities | |||||||||||
Gross Gains on Sales | $ 23.8 | $ 9.3 | $ 15.8 | ||||||||
Gross Losses on Sales | (25.6) | (7.5) | (45.7) | ||||||||
Other-Than-Temporary Impairment Loss | (32.4) | (13.5) | (0.8) | ||||||||
Mortgage Loans and Other Invested Assets | |||||||||||
Gross Gains on Sales | 16.0 | 21.2 | 15.6 | ||||||||
Gross Losses on Sales | (0.1) | (0.8) | 0.0 | ||||||||
Impairment Loss | (5.9) | (3.4) | (2.0) | ||||||||
Gain (Loss) on Embedded Derivative | (37.7) | 3.3 | 30.7 | ||||||||
All Other Derivatives | 35.7 | 11.0 | (1.9) | ||||||||
Foreign Currency Transactions | (17.6) | (3.5) | (4.9) | ||||||||
Net Realized Investment Gain (Loss) | $ (2.7) | $ (26.6) | $ 0.8 | $ (15.3) | $ (17.3) | $ 1.2 | $ 25.9 | $ 6.3 | $ (43.8) | $ 16.1 | $ 6.8 |
Investments - Additional Information (Detail) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
|
Schedule of Investments | |||
Fair value of Fixed Maturity Securities | $ 43,354,400,000 | $ 45,064,900,000 | |
Fixed Maturity Securities Other Than Temporary Impairments in Accumulated Other Comprehensive Income Loss | 0.0 | 0 | |
Commitment to fund private placement fixed maturity securities | 56,000,000 | ||
Carrying amount of variable interest entity investments | 442,600,000 | ||
Commitments to Qualified Affordable Housing Project Investments | 5,000,000 | ||
Commitment to fund partnership Equity Investments | 168,500,000 | ||
Other Long-term Investments | 583,000,000 | $ 545,000,000 | |
Commitments to Fund Special Purpose Entities | $ 0 | ||
Amount Funded to Special Purpose Entity Partnerships | nor did we fund any amounts to the partnership | nor did we fund any amounts to the partnership | nor did we fund any amounts to the partnership |
Mortgage Loan policy is not to exceed a loan-to-value ratio, percent | 75.00% | ||
Loan to Value Ratio Update Frequency | three | ||
Mortgage Loan Inspection Frequency | two | ||
Mortage Loan Policy Debt Service coverage ratio lower range | 125.00% | ||
Mortgage Loans issuance, term years | 25 | ||
Foreclosed Real Estate Expense | $ 0 | $ 0 | $ 0 |
Financing Receivable, Recorder Investment, Nonaccrual status | 0 | 0 | 0 |
Number of Changes to Accounting Policy for Estimating Credit Losses on Mortgage Loans | 0 | ||
Average Recorded Investment of Impaired Mortgage Loans | $ 8,600,000 | $ 26,700,000 | $ 14,900,000 |
Interest Income on Mortgage Loans Subsequent to Impairment | 600,000 | 1,000,000 | 800,000 |
Committments to Fund Commercial Mortgage Loans | $ 67,000,000 | ||
Repurchase agreements - Typical Days outstanding | 30 | ||
Minimum percent of the fair value of securities loaned or securities purchased under repurchase agreements be maintained as collateral | 102.00% | ||
Gross Securities Borrowed | $ 181,600,000 | 176,500,000 | |
Outstanding Repurchase Agreements | 0 | 0 | |
Federal Home Loan Bank Stock | 30,900,000 | ||
Advances from FHLB | 350,000,000 | ||
Off Balance Sheet Amount | |||
Schedule of Investments | |||
Cash Collateral for Borrowed Securities | 29,000,000 | 58,400,000 | |
Securities Received as Collateral | 159,300,000 | 128,500,000 | |
Commercial Real Estate Portfolio Segment | |||
Schedule of Investments | |||
Unpaid Principal Balance of Impaired Mortgage Loan | 14,600,000 | ||
Impaired Financing Receivable, Related Allowance | 1,500,000 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 13,100,000 | ||
Provisions | 500,000 | 3,000,000 | 0 |
Special Purpose Entity | Bonds | |||
Schedule of Investments | |||
Fair value of Fixed Maturity Securities | 148,000,000 | 143,900,000 | |
Special Purpose Entity | Partnership Interest | |||
Schedule of Investments | |||
Other Long-term Investments | 900,000 | 1,400,000 | |
Partnership Interests In Tax Credit Investments | |||
Schedule of Investments | |||
Carrying amount of variable interest entity investments | 202,100,000 | ||
Equity Method Investments | |||
Schedule of Investments | |||
Carrying amount of variable interest entity investments | 240,500,000 | ||
External Credit Rating, Investment Grade | |||
Schedule of Investments | |||
Fair value of Fixed Maturity Securities | 40,056,300,000 | ||
Accumulated Gross Unrealized Gain on Securities | 4,264,400,000 | ||
Accumulated Gross Unrealized Loss on Securities | $ 360,400,000 | ||
Percent of Fixed Maturity Securities in Unrealized Loss Position | 56.10% | ||
Number of fixed maturity securities that were in an unrealized loss position | 269 | ||
Number of fixed maturity securities in an unrealized loss position continuously for over one year | 14 | ||
External Credit Rating, Below-Investment-Grade | |||
Schedule of Investments | |||
Fair value of Fixed Maturity Securities | $ 3,298,100,000 | ||
Accumulated Gross Unrealized Gain on Securities | 73,600,000 | ||
Accumulated Gross Unrealized Loss on Securities | $ 281,900,000 | ||
Percent of Fixed Maturity Securities in Unrealized Loss Position | 43.90% | ||
Number of fixed maturity securities that were in an unrealized loss position | 100 | ||
Number of fixed maturity securities in an unrealized loss position continuously for over one year | 32 | ||
Collateralized Mortgage Backed Securities | |||
Schedule of Investments | |||
Collateral Pledged to FHLB | $ 96,000,000 | ||
Fixed Maturity Securities | |||
Schedule of Investments | |||
Fair value of Fixed Maturity Securities | 43,354,400,000 | 45,064,900,000 | |
Accumulated Gross Unrealized Gain on Securities | 4,338,000,000 | 6,386,300,000 | |
Accumulated Gross Unrealized Loss on Securities | 642,300,000 | 124,800,000 | |
Collateral Pledged to FHLB | 317,200,000 | ||
Commercial Real Estate Portfolio Segment | |||
Schedule of Investments | |||
Recorded Investment in Mortgage Loan Modifications Due to Foreclosure | $ 0 | 18,100,000 | $ 4,300,000 |
Troubled Debt Restructuring Write-down | $ 3,000,000 |
Notional Amounts for Each Category of Derivative Activity (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Derivative | |||
Balance at beginning of period | $ 1,687.4 | $ 1,477.4 | $ 1,432.8 |
Additions | 96.0 | 318.1 | 291.0 |
Terminations | 313.1 | 108.1 | 246.4 |
Balance at ending of period | 1,470.3 | 1,687.4 | 1,477.4 |
Swaps | Receive Variable/Pay Fixed | |||
Derivative | |||
Balance at beginning of period | 150.0 | 150.0 | 174.0 |
Additions | 0.0 | 0.0 | 0.0 |
Terminations | 0.0 | 0.0 | 24.0 |
Balance at ending of period | 150.0 | 150.0 | 150.0 |
Swaps | Receive Fixed/Pay Fixed | |||
Derivative | |||
Balance at beginning of period | 840.4 | 630.4 | 508.8 |
Additions | 0.0 | 250.1 | 160.0 |
Terminations | 190.1 | 40.1 | 38.4 |
Balance at ending of period | 650.3 | 840.4 | 630.4 |
Swaps | Receive Fixed/Pay Variable | |||
Derivative | |||
Balance at beginning of period | 600.0 | 600.0 | 750.0 |
Additions | 0.0 | 0.0 | 0.0 |
Terminations | 0.0 | 0.0 | 150.0 |
Balance at ending of period | 600.0 | 600.0 | 600.0 |
Swaps | Credit Default Swaps | |||
Derivative | |||
Balance at beginning of period | 97.0 | 97.0 | 0.0 |
Additions | 2.0 | 0.0 | 97.0 |
Terminations | 29.0 | 0.0 | 0.0 |
Balance at ending of period | 70.0 | 97.0 | 97.0 |
Forwards | |||
Derivative | |||
Balance at beginning of period | 0.0 | 0.0 | 0.0 |
Additions | 94.0 | 68.0 | 24.0 |
Terminations | 94.0 | 68.0 | 24.0 |
Balance at ending of period | 0.0 | 0.0 | 0.0 |
Options Held | |||
Derivative | |||
Balance at beginning of period | 0.0 | 0.0 | 0.0 |
Additions | 0.0 | 0.0 | 10.0 |
Terminations | 0.0 | 0.0 | 10.0 |
Balance at ending of period | $ 0.0 | $ 0.0 | $ 0.0 |
Location and Fair Values of Derivative Financial Instruments (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Derivative | ||
Asset Derivatives Fair Value | $ 49.8 | $ 28.0 |
Designated as Hedging Instrument | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 49.8 | 28.0 |
Designated as Hedging Instrument | Other Liability | ||
Derivative | ||
Liability Derivatives Fair Value | 18.3 | 60.4 |
Designated as Hedging Instrument | Interest Rate Swaps | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 2.4 | 5.7 |
Designated as Hedging Instrument | Interest Rate Swaps | Other Liability | ||
Derivative | ||
Liability Derivatives Fair Value | 12.3 | 20.8 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 47.4 | 22.3 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Other Liability | ||
Derivative | ||
Liability Derivatives Fair Value | 6.0 | 39.6 |
Not Designated as Hedging Instrument | Other Liability | ||
Derivative | ||
Liability Derivatives Fair Value | 119.5 | 82.4 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other Liability | ||
Derivative | ||
Liability Derivatives Fair Value | 31.6 | 31.3 |
Not Designated as Hedging Instrument | Credit Risk Contract | Other Liability | ||
Derivative | ||
Liability Derivatives Fair Value | 0.3 | 1.2 |
Not Designated as Hedging Instrument | Embedded Derivative in Modified Coinsurance Arrangement | Other Liability | ||
Derivative | ||
Liability Derivatives Fair Value | $ 87.6 | $ 49.9 |
Location of Gains and Losses on Derivative Instruments Designated as Cash Flow Hedging Instruments (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ 67.4 | $ 16.1 | $ 15.3 |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 83.4 | 53.0 | 23.0 |
Interest Rate Swaps | |||
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | (0.7) | (0.1) | (7.2) |
Interest Rate Swaps | Net Investment Income | |||
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 50.2 | 47.8 | 43.1 |
Interest Rate Swaps | Net Realized Investments Gain (Loss) | |||
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 0.5 | 4.3 | 1.3 |
Interest Rate Swaps | Interest and Debt Expense | |||
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (1.8) | (1.8) | (1.7) |
Options Held | |||
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | 0.0 | 0.0 | (0.1) |
Foreign Exchange Contracts | |||
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | 68.1 | 16.2 | 22.6 |
Foreign Exchange Contracts | Net Investment Income | |||
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (1.6) | (4.2) | (5.9) |
Foreign Exchange Contracts | Net Realized Investments Gain (Loss) | |||
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ 36.1 | $ 6.9 | $ (13.8) |
Gains and Losses on Derivatives Not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Net Realized Investment Gain (Loss) | |||
Net Gain (Loss) on Derivatives | $ 35.7 | $ 11.0 | $ (1.9) |
Not Designated as Hedging Instrument | |||
Net Realized Investment Gain (Loss) | |||
Net Gain (Loss) on Derivatives | (37.9) | 1.2 | 28.8 |
Not Designated as Hedging Instrument | Credit Default Swaps | |||
Net Realized Investment Gain (Loss) | |||
Net Gain (Loss) on Derivatives | 0.1 | (0.3) | (1.9) |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | |||
Net Realized Investment Gain (Loss) | |||
Net Gain (Loss) on Derivatives | (0.3) | (1.8) | 0.0 |
Not Designated as Hedging Instrument | Embedded Derivative in Modified Coinsurance Arrangement | |||
Net Realized Investment Gain (Loss) | |||
Net Gain (Loss) on Derivatives | $ (37.7) | $ 3.3 | $ 30.7 |
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
|
Derivative | ||||
Credit Exposure on Derivatives | $ 8.5 | |||
Cash collateral from counterparties | 36.4 | $ 15.4 | ||
Carrying value of fixed maturity securities posted as collateral to our counterparties | 27.3 | 67.0 | ||
Cash Collateral to counterparties | 0.0 | 0.0 | ||
Aggregate fair value of all derivative instruments with credit risk-related contingent features in a liability position | 50.2 | 92.9 | ||
Notional Amount of Derivatives | 1,470.3 | 1,687.4 | $ 1,477.4 | $ 1,432.8 |
Notional Amount Of Derivatives Terminations | 313.1 | 108.1 | 246.4 | |
Material Ineffectiveness on Cash Flow Hedges | 0.0 | 0.0 | 0.0 | |
Gain from Components Excluded from Assessment of Cash Flow Hedge Effectiveness | 0.0 | 0.0 | 0.0 | |
Approximate amount of net deferred gains on derivative instruments expected to be amortized during the next twelve months | $ 53.6 | |||
Maximum Length of Time Hedged in Cash Flow Hedge | 23 years | |||
Material Ineffectiveness on Fair Value Hedges | $ 0.0 | 0.0 | 0.0 | |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0.0 | 0.0 | 0.0 | |
Discontinued Hedge Accounting Due to Instrument No Longer Qualifying as FV Hedge | 0.0 | |||
Novated Foreign Currency Interest Rate Swap | ||||
Derivative | ||||
Notional Amount of Derivatives | 97.0 | |||
Gross Derivative Liability | (29.5) | |||
Foreign Exchange Contracts | ||||
Derivative | ||||
Hedge Gain Reclassification from AOCI to Earnings | 8.2 | 13.1 | ||
Receive Variable/Pay Fixed | Swaps | ||||
Derivative | ||||
Notional Amount of Derivatives | 150.0 | 150.0 | ||
Receive Variable/Pay Fixed | Interest Rate Swaps | ||||
Derivative | ||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 5.3 | 5.3 | 11.5 | |
Receive Fixed/Pay Variable | Swaps | ||||
Derivative | ||||
Notional Amount of Derivatives | 600.0 | 600.0 | ||
Receive Fixed/Pay Variable | Interest Rate Swaps | ||||
Derivative | ||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0.1 | (5.5) | 21.1 | |
Credit Default Swaps | ||||
Derivative | ||||
Notional Amount of Derivatives | 70.0 | 97.0 | ||
Cash Flow Hedging | Interest Rate Swaps | ||||
Derivative | ||||
Notional Amount of Derivatives | 427.9 | 618.0 | ||
Notional Amount Of Derivatives Terminations | 150.0 | 150.0 | ||
Long-term Debt | ||||
Derivative | ||||
Hedge Gain Reclassification from AOCI to Earnings | 27.7 | 13.1 | ||
Designated as Hedging Instrument | Foreign Currency Swap | ||||
Derivative | ||||
Notional Amount of Derivatives | 124.7 | |||
Not Designated as Hedging Instrument | Interest Rate Swaps | ||||
Derivative | ||||
Notional Amount of Derivatives | 222.4 | 222.4 | ||
Not Designated as Hedging Instrument | Foreign Currency Swap | ||||
Derivative | ||||
Notional Amount of Derivatives | 125.4 | |||
Credit Default Swaps | Swaps | ||||
Derivative | ||||
Notional Amount of Derivatives | 70.0 | 97.0 | 97.0 | $ 0.0 |
Notional Amount Of Derivatives Terminations | $ 29.0 | $ 0.0 | $ 0.0 |
Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Accumulated Other Comprehensive Income (Loss) | |||
Balance at Beginning of Year | $ 166.4 | $ 255.0 | $ 628.0 |
Other Comprehensive Income (Loss) Before Reclassifications, Net of Tax | (130.3) | (97.0) | (382.6) |
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | (20.0) | 8.4 | 9.6 |
Net Other Comprehensive Income (Loss) | (150.3) | (88.6) | (373.0) |
Balance at End of Year | 16.1 | 166.4 | 255.0 |
Net Unrealized Gain on Securities | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at Beginning of Year | 290.3 | 135.7 | 873.5 |
Other Comprehensive Income (Loss) Before Reclassifications, Net of Tax | (114.7) | 154.3 | (746.4) |
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | 28.7 | 0.3 | 8.6 |
Net Other Comprehensive Income (Loss) | (86.0) | 154.6 | (737.8) |
Balance at End of Year | 204.3 | 290.3 | 135.7 |
Net Gain on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at Beginning of Year | 391.0 | 396.3 | 401.6 |
Other Comprehensive Income (Loss) Before Reclassifications, Net of Tax | 43.3 | 31.1 | 9.7 |
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | (56.3) | (36.4) | (15.0) |
Net Other Comprehensive Income (Loss) | (13.0) | (5.3) | (5.3) |
Balance at End of Year | 378.0 | 391.0 | 396.3 |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at Beginning of Year | (113.4) | (47.1) | (72.6) |
Other Comprehensive Income (Loss) Before Reclassifications, Net of Tax | (60.2) | (66.3) | 25.5 |
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | 0.0 | 0.0 | 0.0 |
Net Other Comprehensive Income (Loss) | (60.2) | (66.3) | 25.5 |
Balance at End of Year | (173.6) | (113.4) | (47.1) |
Unrecognized Pension and Postretirement Benefit Costs | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at Beginning of Year | (401.5) | (229.9) | (574.5) |
Other Comprehensive Income (Loss) Before Reclassifications, Net of Tax | 1.3 | (216.1) | 328.6 |
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | 7.6 | 44.5 | 16.0 |
Net Other Comprehensive Income (Loss) | 8.9 | (171.6) | 344.6 |
Balance at End of Year | $ (392.6) | $ (401.5) | $ (229.9) |
Schedule of Components of Unrealized Gain (Loss) on Securities (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Change in Components of Net Unrealized Gain on Securities | |||
Change in Net Unrealized Gain (Loss) on Securities | $ (1,720.9) | $ 1,439.3 | $ (2,101.2) |
Fixed Maturity Securities | |||
Change in Components of Net Unrealized Gain on Securities | |||
Beginning of Year Balance | 6,261.5 | 4,054.8 | 7,221.5 |
Change in Net Unrealized Gain (Loss) on Securities | (2,565.8) | 2,206.7 | (3,166.7) |
End of Year Balance | 3,695.7 | 6,261.5 | 4,054.8 |
Other Investments | |||
Change in Components of Net Unrealized Gain on Securities | |||
Beginning of Year Balance | 13.9 | 55.5 | 92.8 |
Change in Net Unrealized Gain (Loss) on Securities | (47.6) | (41.6) | (37.3) |
End of Year Balance | (33.7) | 13.9 | 55.5 |
Deferred Acquisition Costs | |||
Change in Components of Net Unrealized Gain on Securities | |||
Beginning of Year Balance | (50.8) | (41.6) | (67.0) |
Change in Net Unrealized Gain (Loss) on Securities | 21.4 | (9.2) | 25.4 |
End of Year Balance | (29.4) | (50.8) | (41.6) |
Reserve for Future Policy and Contract Benefits | |||
Change in Components of Net Unrealized Gain on Securities | |||
Beginning of Year Balance | (6,150.3) | (4,108.5) | (6,277.5) |
Change in Net Unrealized Gain (Loss) on Securities | 2,571.9 | (2,041.8) | 2,169.0 |
End of Year Balance | (3,578.4) | (6,150.3) | (4,108.5) |
Reinsurance Recoverable | |||
Change in Components of Net Unrealized Gain on Securities | |||
Beginning of Year Balance | 365.0 | 263.8 | 351.5 |
Change in Net Unrealized Gain (Loss) on Securities | (101.8) | 101.2 | (87.7) |
End of Year Balance | 263.2 | 365.0 | 263.8 |
Deferred Income Tax Charges | |||
Change in Components of Net Unrealized Gain on Securities | |||
Beginning of Year Balance | (149.0) | (88.3) | (447.8) |
Change in Net Unrealized Gain (Loss) on Securities | 35.9 | (60.7) | 359.5 |
End of Year Balance | (113.1) | (149.0) | (88.3) |
Net Unrealized Gain on Securities | |||
Change in Components of Net Unrealized Gain on Securities | |||
Beginning of Year Balance | 290.3 | 135.7 | 873.5 |
Change in Net Unrealized Gain (Loss) on Securities | (86.0) | 154.6 | (737.8) |
End of Year Balance | $ 204.3 | $ 290.3 | $ 135.7 |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||||||||
Other Net Realized Investment Gain (Loss) | $ (11.4) | $ 29.6 | $ 7.6 | ||||||||
Other-Than-Temporary Impairment Loss | (32.4) | (13.5) | (0.8) | ||||||||
Net Investment Income | $ 636.4 | $ 612.1 | $ 630.7 | $ 602.0 | $ 632.7 | $ 611.3 | $ 632.4 | $ 615.8 | 2,481.2 | 2,492.2 | 2,506.9 |
Interest and Debt Expense | (152.8) | (167.5) | (149.4) | ||||||||
Other Expenses | (813.4) | (831.2) | (751.5) | ||||||||
Income (Loss) Before Income Tax | 316.6 | 298.9 | 319.8 | 303.0 | (454.6) | 317.0 | 349.8 | 329.8 | 1,238.3 | 542.0 | 1,220.0 |
Income Tax Expense (Benefit) | 371.2 | 139.9 | 373.0 | ||||||||
Net Income | $ 226.1 | $ 203.8 | $ 224.3 | $ 212.9 | $ (282.2) | $ 219.1 | $ 239.4 | $ 225.8 | 867.1 | 402.1 | 847.0 |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gain on Securities | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||||||||
Other Net Realized Investment Gain (Loss) | (12.2) | 12.6 | (12.6) | ||||||||
Other-Than-Temporary Impairment Loss | (32.4) | (13.5) | (0.8) | ||||||||
Income (Loss) Before Income Tax | (44.6) | (0.9) | (13.4) | ||||||||
Income Tax Expense (Benefit) | (15.9) | (0.6) | (4.8) | ||||||||
Net Income | (28.7) | (0.3) | (8.6) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Net Gain on Cash Flow Hedges | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||||||||
Income (Loss) Before Income Tax | 83.4 | 53.0 | 23.0 | ||||||||
Income Tax Expense (Benefit) | 27.1 | 16.6 | 8.0 | ||||||||
Net Income | 56.3 | 36.4 | 15.0 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Net Gain on Cash Flow Hedges | Interest Rate Swaps | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||||||||
Other Net Realized Investment Gain (Loss) | 0.5 | 4.3 | 1.3 | ||||||||
Net Investment Income | 50.2 | 47.8 | 43.1 | ||||||||
Interest and Debt Expense | (1.8) | (1.8) | (1.7) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Net Gain on Cash Flow Hedges | Foreign Exchange Contracts | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||||||||
Other Net Realized Investment Gain (Loss) | 36.1 | 6.9 | (13.8) | ||||||||
Net Investment Income | (1.6) | (4.2) | (5.9) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Net Actuarial Loss | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||||||||
Other Expenses | (11.9) | (5.6) | (32.9) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Prior Service Credit | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||||||||
Other Expenses | 0.3 | 1.7 | 5.0 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Pension Curtailment Gain | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||||||||
Other Expenses | 0.0 | 0.0 | 3.0 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Pension Settlement Loss | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||||||||
Other Expenses | 0.0 | (64.4) | 0.0 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Unrecognized Pension and Postretirement Benefit Costs | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||||||||
Income (Loss) Before Income Tax | (11.6) | (68.3) | (24.9) | ||||||||
Income Tax Expense (Benefit) | (4.0) | (23.8) | (8.9) | ||||||||
Net Income | $ (7.6) | $ (44.5) | $ (16.0) |
Liability for Unpaid Claims and Claims Adjustment Expense (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense | |||
Balance at January 1 | $ 24,194.0 | $ 24,535.6 | $ 24,567.1 |
Less Reinsurance Recoverable | 2,066.9 | 2,072.8 | 2,006.0 |
Net Balance at January 1 | 22,127.1 | 22,462.8 | 22,561.1 |
Incurred Related to | |||
Current Year | 5,058.1 | 4,851.5 | 4,751.9 |
Paid Related to | |||
Current Year | (1,853.7) | (1,702.3) | (1,657.3) |
Prior Years | (4,546.5) | (4,547.4) | (4,419.4) |
Total Paid | (6,400.2) | (6,249.7) | (6,076.7) |
Net Balance at December 31 | 21,731.5 | 22,127.1 | 22,462.8 |
Plus Reinsurance Recoverable | 2,064.6 | 2,066.9 | 2,072.8 |
Balance at December 31 | 23,796.1 | 24,194.0 | 24,535.6 |
Amount Related to Interest | |||
Incurred Related to | |||
Prior Years | 1,177.6 | 1,214.7 | 1,230.0 |
Incurred Claims | |||
Incurred Related to | |||
Prior Years | (111.6) | (13.5) | (44.7) |
Foreign Currency | |||
Incurred Related to | |||
Prior Years | (119.5) | (138.7) | 41.2 |
Operating Expense | |||
Incurred Related to | |||
Total Incurred | $ 6,004.6 | $ 5,914.0 | $ 5,978.4 |
Reconciliation of Policy and Contract Benefits and Reserves for Future Policy and Contract Benefits (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
---|---|---|---|---|
Insurance [Abstract] | ||||
Policy and Contract Benefits | $ 1,484.6 | $ 1,529.3 | $ 1,511.0 | |
Reserves for Future Policy and Contract Benefits | 43,540.6 | 45,929.4 | 43,099.1 | |
Total Policy and Contract Benefits and Reserves for Future Policy and Contract Benefits | 45,025.2 | 47,458.7 | 44,610.1 | |
Life Reserves for Future Policy and Contract Benefits | 7,946.3 | 7,850.9 | 7,740.5 | |
Accident and Health Active Life Reserves | 9,704.4 | 9,263.5 | 8,225.5 | |
Adjustment Related to Unrealized Investment Gains and Losses | 3,578.4 | 6,150.3 | 4,108.5 | |
Liability for Claims and Claims Adjustment Expense | $ 23,796.1 | $ 24,194.0 | $ 24,535.6 | $ 24,567.1 |
Liability for Unpaid Claims - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Liability for Unpaid Claims and CAE Narrative Information | |||
Reserve Increase for Long-term Care | $ 698.2 | ||
Unclaimed Death Benefit Reserve Increase (Decrease) Before Taxes | $ 95.5 | ||
Group Life | |||
Liability for Unpaid Claims and CAE Narrative Information | |||
Unclaimed Death Benefit Reserve Increase (Decrease) Before Taxes | 49.1 | ||
Unum US Voluntary Life | |||
Liability for Unpaid Claims and CAE Narrative Information | |||
Unclaimed Death Benefit Reserve Increase (Decrease) Before Taxes | 26.3 | ||
Unum U.S. | |||
Liability for Unpaid Claims and CAE Narrative Information | |||
Unclaimed Death Benefit Reserve Increase (Decrease) Before Taxes | 75.4 | ||
Unum U.S. | Group Life | |||
Liability for Unpaid Claims and CAE Narrative Information | |||
Waiver of Premium Benefit Reserve Decrease Before Tax | 85.0 | ||
Claim Reserve Prior Year | |||
Liability for Unpaid Claims and CAE Narrative Information | |||
Reserve Increase for Long-term Care | $ 85.8 | ||
Claim Reserve Prior Year | Unum U.S. | Group Life | |||
Liability for Unpaid Claims and CAE Narrative Information | |||
Waiver of Premium Benefit Reserve Decrease Before Tax | $ 78.0 |
Income Tax Expense (Benefit) (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Tax [Abstract] | |||
Income Tax Expense | $ 371.2 | $ 139.9 | $ 373.0 |
Additional Paid in Capital | |||
Stock-Based Compensation | (3.6) | (3.0) | (0.8) |
Other Comprehensive Income (Loss), Tax | |||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | (892.5) | 725.8 | (1,102.8) |
Change in Adjustment to Deferred Acquisition Costs and Reserves for Future Policy and Contract Benefits, Net of Reinsurance, Tax Expense | 856.6 | (665.1) | 743.3 |
Change in Net Gain on Cash Flow Hedges | (4.3) | (2.0) | (1.3) |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | (0.1) | 0.0 | 0.0 |
Change in Unrecognized Pension and Postretirement Benefit Costs | 3.2 | (92.4) | 185.2 |
Total | $ 330.5 | $ 103.2 | $ 196.6 |
Reconciliation of income tax computed at US Federal tax rates (Detail) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Tax [Abstract] | |||
Statutory Income Tax | 35.00% | 35.00% | 35.00% |
Foreign Rate Differential, Inclusive of Foreign Rate Changes | (2.50%) | (4.00%) | (1.80%) |
Tax Credits | (1.40%) | (4.50%) | (1.90%) |
Other Items, Net | (1.10%) | (0.70%) | (0.70%) |
Effective Tax | 30.00% | 25.80% | 30.60% |
Schedule of deferred income tax assets and liabilities (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Income Tax [Abstract] | ||
Deferred Acquisition Cost | $ 140.4 | $ 97.4 |
Deferred Tax Liabilities for Fixed Assets | 87.1 | 95.6 |
Deferred Tax Liabilities on Invested Assets | 1,128.4 | 1,982.8 |
Other | 55.4 | 64.6 |
Gross Deferred Tax Liability | 1,411.3 | 2,240.4 |
Reserves | 1,060.5 | 1,919.2 |
Employee Benefits | 246.0 | 254.0 |
Other | 14.3 | 5.2 |
Gross Deferred Tax Asset | 1,320.8 | 2,178.4 |
Less: Valuation Allowance | 1.3 | 0.0 |
Net Deferred Tax Asset | 1,319.5 | 2,178.4 |
Net Deferred Tax Liability | $ 91.8 | $ 62.0 |
Schedule of Income subject to domestic and foreign taxation (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Tax [Abstract] | |||||||||||
Income Before Tax United States - Federal | $ 1,057.8 | $ 391.7 | $ 1,086.8 | ||||||||
Income Before Tax Foreign | 180.5 | 150.3 | 133.2 | ||||||||
Income Before Income Tax | $ 316.6 | $ 298.9 | $ 319.8 | $ 303.0 | $ (454.6) | $ 317.0 | $ 349.8 | $ 329.8 | 1,238.3 | 542.0 | 1,220.0 |
Current Tax Expense United States - Federal | 280.5 | 160.6 | 309.8 | ||||||||
Current Tax Expense Foreign | 61.6 | (25.1) | 18.7 | ||||||||
Income Tax - Current | 342.1 | 135.5 | 328.5 | ||||||||
Deferred Tax Expense (Benefit) United States - Federal | 56.9 | (50.5) | 41.3 | ||||||||
Deferred Tax Expense (Benefit) Foreign | (27.8) | 54.9 | 3.2 | ||||||||
Income Tax - Deferred | 29.1 | 4.4 | 44.5 | ||||||||
Income Tax Expense | $ 371.2 | $ 139.9 | $ 373.0 |
Unrecognized tax benefits (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Tax [Abstract] | |||
Balance at Beginning of Year | $ 19.8 | $ 18.4 | $ 17.5 |
Additions to Tax Positions Taken During Prior Years | 0.0 | 1.7 | 5.7 |
Settlements with Tax Authorities | (19.0) | (0.6) | (4.8) |
Tax Positions Taken During Current Year | 0.0 | 0.3 | 0.0 |
Balance at End of Year | 0.8 | 19.8 | 18.4 |
Less Tax Attributable to Temporary Items Included Above | 0.0 | (10.4) | (10.2) |
Total Unrecognized Tax Benefits that if Recognized Would Affect the Effective Tax Rate | $ 0.8 | $ 9.4 | $ 8.2 |
Income Tax Additional Information (Detail) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Federal Income Tax Note | |||
2015 UK Tax Rate | 20.00% | ||
2017 UK Tax Rate | 19.00% | ||
2020 UK Tax Rate | 18.00% | ||
2013 UK Tax Rate | 23.00% | ||
2014 UK Tax Rate | 21.00% | ||
Income Tax Benefit from Enacted Tax Rate Changes | $ 6,500,000 | $ 6,300,000 | |
Excess of Financial Reporting Carrying Amount Over the Tax Basis of Investments in Foreign Subsidiaries, Provision Not Practicable | 1,000,000,000.0 | ||
Tax Expense Not Recognized Due To Permanent Differences | 200,000,000 | ||
Liability for unrecognized tax benefits | 10,400,000 | $ 10,200,000 | |
Unrecognized Tax Benefits, Interest on Income Taxes Expense | (1,000,000) | 200,000 | (1,100,000) |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 1,000,000 | ||
Tax Adjustments, Settlements, and Unusual Provisions | 6,800,000 | ||
Operating Loss Carryforwards | 0 | 0 | |
Valuation Allowance on Deferred Tax Assets | 1,300,000 | 0 | |
Income Taxes Paid, Net | $ 189,100,000 | $ 155,700,000 | $ 398,100,000 |
Debt Schedule (Detail) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Debt Instrument | ||||
Non-current Portion of Long-term Debt | $ 2,475.1 | $ 2,628.7 | ||
Current Maturities of Long-term Debt | 352.4 | 151.9 | ||
Long-term Debt | 2,827.5 | 2,780.6 | ||
Fair Value Hedge Adjustment, LT Debt | ||||
Debt Instrument | ||||
Non-current Portion of Long-term Debt | (2.7) | (0.2) | ||
Current Maturities of Long-term Debt | 2.4 | 0.0 | ||
Secured Notes Issued in 2007 | Senior Notes | ||||
Debt Instrument | ||||
Non-current Portion of Long-term Debt | 324.0 | 398.4 | ||
Year of Maturity | Dec. 31, 2037 | |||
Interest Rate Terms | Variable | |||
Notes Issued in 1998 with 2018 Maturity Date | Senior Notes | ||||
Debt Instrument | ||||
Non-current Portion of Long-term Debt | 200.0 | 200.0 | ||
Year of Maturity | Dec. 31, 2018 | |||
Stated Interest Rate of Debt | 7.00% | |||
Notes Issued in 1998 with 2028 Maturity Date | Senior Notes | ||||
Debt Instrument | ||||
Non-current Portion of Long-term Debt | 365.8 | 365.8 | ||
Year of Maturity | Dec. 31, 2028 | |||
Notes Issued in 1998 with 2028 Maturity Date | Minimum | Senior Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 6.75% | |||
Notes Issued in 1998 with 2028 Maturity Date | Maximum | Senior Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 7.25% | |||
Notes Issued in 2002 | Senior Notes | ||||
Debt Instrument | ||||
Non-current Portion of Long-term Debt | 39.5 | 39.5 | ||
Year of Maturity | Dec. 31, 2032 | |||
Stated Interest Rate of Debt | 7.375% | |||
Notes Issued in 2009 | ||||
Debt Instrument | ||||
Current Maturities of Long-term Debt | 350.0 | 0.0 | ||
Year of Maturity | Dec. 31, 2016 | |||
Stated Interest Rate of Debt | 7.125% | |||
Notes Issued in 2009 | Senior Notes | ||||
Debt Instrument | ||||
Non-current Portion of Long-term Debt | 0.0 | 350.0 | ||
Year of Maturity | Dec. 31, 2016 | |||
Stated Interest Rate of Debt | 7.125% | |||
Notes Issued in 2010 | Senior Notes | ||||
Debt Instrument | ||||
Non-current Portion of Long-term Debt | 399.8 | 399.7 | ||
Year of Maturity | Dec. 31, 2020 | |||
Stated Interest Rate of Debt | 5.625% | |||
Notes Issued in 2012 | Senior Notes | ||||
Debt Instrument | ||||
Non-current Portion of Long-term Debt | 248.7 | 248.7 | ||
Year of Maturity | Dec. 31, 2042 | |||
Stated Interest Rate of Debt | 5.75% | |||
Notes Issued in 2014 | Senior Notes | ||||
Debt Instrument | ||||
Non-current Portion of Long-term Debt | 349.5 | 349.5 | ||
Year of Maturity | Dec. 31, 2024 | |||
Stated Interest Rate of Debt | 4.00% | |||
Notes Issued in 2015 | Senior Notes | ||||
Debt Instrument | ||||
Non-current Portion of Long-term Debt | 273.2 | 0.0 | ||
Year of Maturity | Dec. 31, 2025 | |||
Stated Interest Rate of Debt | 3.875% | |||
Notes Issued 1990 to 1996 | Medium-term Notes | ||||
Debt Instrument | ||||
Non-current Portion of Long-term Debt | 50.8 | 50.8 | ||
Debt Instrument, Maturity Date Range, Start | Dec. 31, 2023 | |||
Debt Instrument, Maturity Date Range, End | Dec. 31, 2028 | |||
Notes Issued 1990 to 1996 | Minimum | Medium-term Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 7.00% | |||
Notes Issued 1990 to 1996 | Maximum | Medium-term Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 7.19% | |||
Notes Issued in 1998 with 2038 Maturity Date | Junior Subordinated Debt | ||||
Debt Instrument | ||||
Non-current Portion of Long-term Debt | 226.5 | 226.5 | ||
Year of Maturity | Dec. 31, 2038 | |||
Stated Interest Rate of Debt | 7.405% | 7.405% | ||
Notes Issued in 2005 | ||||
Debt Instrument | ||||
Current Maturities of Long-term Debt | $ 0.0 | $ 151.9 | ||
Year of Maturity | Dec. 31, 2015 | |||
Stated Interest Rate of Debt | 6.85% |
Debt - Additional Information Domain (Detail) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2007 |
Dec. 31, 2006 |
Dec. 31, 1998 |
Dec. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2012 |
|
Debt Narrative Detail Information | ||||||||||
Repayments of Principal in Next Twelve Months | $ 350.0 | |||||||||
Repayments of Principal in 2018 | 200.0 | |||||||||
Repayments of Principal in 2020 | 400.0 | |||||||||
Repayments of Principal Thereafter | 1,881.6 | |||||||||
Repayments of Long-term Debt | $ 226.3 | $ 186.6 | $ 116.2 | |||||||
Payments of Debt Extinguishment Costs | $ 0.0 | 13.2 | 0.0 | |||||||
Current Maturities of Long-term Debt | 151.9 | 352.4 | ||||||||
Notional Amount of Derivatives | 1,687.4 | 1,477.4 | 1,470.3 | $ 1,432.8 | ||||||
Unum Group Percentage Ownership of Provident Financing Trust | 100.00% | |||||||||
Interest Paid | $ 146.9 | 145.9 | 144.6 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 400.0 | |||||||||
Line Of Credit Facility Maximum Borrowing Capacity If Requested | 600.0 | |||||||||
Letters of Credit Outstanding | 2.1 | 2.1 | ||||||||
Amount Outstanding on Line of Credit | 0.0 | 0.0 | ||||||||
Receive Fixed/Pay Variable | Swaps | ||||||||||
Debt Narrative Detail Information | ||||||||||
Notional Amount of Derivatives | 600.0 | 600.0 | ||||||||
Northwind Holdings LLC | ||||||||||
Debt Narrative Detail Information | ||||||||||
Proceeds from Issuance of Senior Long-term Debt | $ 800.0 | |||||||||
Basis Spread on LIBOR | 0.78% | |||||||||
Debt service coverage account (DSCA) | 5.4 | |||||||||
Periodic Principal Payments | $ 74.4 | 41.6 | 60.0 | |||||||
Tailwind Holdings LLC | ||||||||||
Debt Narrative Detail Information | ||||||||||
Proceeds from Issuance of Senior Long-term Debt | $ 130.0 | |||||||||
Repayments of Long-term Debt | 62.5 | |||||||||
Gains (Losses) on Extinguishment of Debt | $ 4.0 | |||||||||
Long-term Debt | ||||||||||
Debt Narrative Detail Information | ||||||||||
Extinguishment of Debt, Amount | $ 145.0 | |||||||||
Stated Interest Rate of Debt | 6.85% | |||||||||
Payments of Debt Extinguishment Costs | $ 13.2 | |||||||||
Repayment of Long-term Debt, Including Cost of Make-whole Call Premium | 158.2 | |||||||||
Hedge Gain Reclassification from AOCI to Earnings | $ 27.7 | 13.1 | ||||||||
Notes Issued in 2005 | ||||||||||
Debt Narrative Detail Information | ||||||||||
Stated Interest Rate of Debt | 6.85% | |||||||||
Current Maturities of Long-term Debt | $ 151.9 | $ 0.0 | ||||||||
Notes Issued in 1998 with 2038 Maturity Date | Junior Subordinated Debt | ||||||||||
Debt Narrative Detail Information | ||||||||||
Proceeds from Issuance of Senior Long-term Debt | $ 300.0 | |||||||||
Stated Interest Rate of Debt | 7.405% | 7.405% | ||||||||
Liquidation value per capital security | $ 1,000 |
Employee Benefit Plans Change in Projected Benefit Obligation Amount (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Pension Benefits, U.S. Plans | |||
Defined Benefit Plan, Change in Benefit Obligation | |||
Benefit Obligation at Beginning of Year | $ 1,892.6 | $ 1,718.7 | |
Service Cost | 3.8 | 3.7 | $ 59.4 |
Interest Cost | 82.2 | 89.9 | 86.3 |
Contributions by Plan Participants | 0.0 | 0.0 | |
Defined Benefit Plan, Actuarial Gain (Loss) | (103.6) | 343.5 | |
Net Benefit Expenses Paid | (59.3) | (48.7) | |
Benefits Paid on Settlement | 0.0 | (214.5) | |
Plan Amendments | (7.5) | 0.0 | |
Change in Foreign Exchange Rates | 0.0 | 0.0 | |
Benefit Obligation at End of Year | 1,808.2 | 1,892.6 | 1,718.7 |
Accumulated Benefit Obligation | 1,808.2 | 1,892.6 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets | |||
Fair Value of Plan Assets at Beginning of Year | 1,473.7 | 1,590.7 | |
Defined Benefit Plan, Actual Return on Plan Assets | (17.5) | 140.9 | |
Employer Contributions to Defined Benefit Plan | 6.4 | 5.3 | |
Contributions by Plan Participants | 0.0 | 0.0 | |
Net Benefit Expenses Paid | (59.3) | (48.7) | |
Benefits Paid on Settlement | 0.0 | (214.5) | |
Effect of Foreign Exchange Rates on Plan Assets | 0.0 | 0.0 | |
Fair Value of Plan Assets at End of Year | 1,403.3 | 1,473.7 | 1,590.7 |
Funded Status of Plan | 404.9 | 418.9 | |
Pension Benefits, Non U.S. Plans | |||
Defined Benefit Plan, Change in Benefit Obligation | |||
Benefit Obligation at Beginning of Year | 226.9 | 208.7 | |
Service Cost | 0.0 | 2.3 | 4.3 |
Interest Cost | 7.9 | 9.1 | 8.6 |
Contributions by Plan Participants | 0.0 | 0.0 | |
Defined Benefit Plan, Actuarial Gain (Loss) | (14.7) | 25.2 | |
Net Benefit Expenses Paid | (4.6) | (4.3) | |
Benefits Paid on Settlement | 0.0 | 0.0 | |
Plan Amendments | 0.0 | 0.0 | |
Change in Foreign Exchange Rates | (11.7) | (14.1) | |
Benefit Obligation at End of Year | 203.8 | 226.9 | 208.7 |
Accumulated Benefit Obligation | 194.8 | 215.3 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets | |||
Fair Value of Plan Assets at Beginning of Year | 246.3 | 225.7 | |
Defined Benefit Plan, Actual Return on Plan Assets | 2.9 | 37.8 | |
Employer Contributions to Defined Benefit Plan | 0.0 | 2.3 | |
Contributions by Plan Participants | 0.0 | 0.0 | |
Net Benefit Expenses Paid | (4.6) | (4.3) | |
Benefits Paid on Settlement | 0.0 | 0.0 | |
Effect of Foreign Exchange Rates on Plan Assets | (13.1) | (15.2) | |
Fair Value of Plan Assets at End of Year | 231.5 | 246.3 | 225.7 |
Funded Status of Plan | (27.7) | (19.4) | |
Other Postretirement Benefit Plans | |||
Defined Benefit Plan, Change in Benefit Obligation | |||
Benefit Obligation at Beginning of Year | 173.9 | 165.3 | |
Service Cost | 0.0 | 0.3 | 0.7 |
Interest Cost | 7.2 | 7.9 | 8.0 |
Contributions by Plan Participants | 4.6 | 4.1 | |
Defined Benefit Plan, Actuarial Gain (Loss) | (9.1) | 12.9 | |
Net Benefit Expenses Paid | (16.2) | (16.6) | |
Benefits Paid on Settlement | 0.0 | 0.0 | |
Plan Amendments | 0.0 | 0.0 | |
Change in Foreign Exchange Rates | 0.0 | 0.0 | |
Benefit Obligation at End of Year | 160.4 | 173.9 | 165.3 |
Defined Benefit Plan, Change in Fair Value of Plan Assets | |||
Fair Value of Plan Assets at Beginning of Year | 11.3 | 11.4 | |
Defined Benefit Plan, Actual Return on Plan Assets | 0.3 | 0.4 | |
Employer Contributions to Defined Benefit Plan | 11.2 | 12.0 | |
Contributions by Plan Participants | 4.6 | 4.1 | |
Net Benefit Expenses Paid | (16.2) | (16.6) | |
Benefits Paid on Settlement | 0.0 | 0.0 | |
Effect of Foreign Exchange Rates on Plan Assets | 0.0 | 0.0 | |
Fair Value of Plan Assets at End of Year | 11.2 | 11.3 | $ 11.4 |
Funded Status of Plan | $ 149.2 | $ 162.6 |
Employee Benefit Plans Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
---|---|---|---|
Pension Benefits, U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Current Pension Liability | $ 5.9 | $ 5.4 | |
Noncurrent Pension Liability | 399.0 | 413.5 | |
Noncurrent Pension Asset | 0.0 | 0.0 | |
Funded Status of Plan | 404.9 | 418.9 | |
Net Actuarial Gain (Loss) in Balance Sheet | (604.2) | (593.0) | |
Prior Service Credit in Balance Sheet | 7.5 | 0.0 | |
Pension Recognized in Balance Sheet, Gross of Deferred Tax | (596.7) | (593.0) | |
Pension Deferred Tax Asset in Balance Sheet | 208.8 | 207.5 | |
Pension Recognized in Balance Sheet, Net of Deferred Tax | (387.9) | (385.5) | $ (222.4) |
Pension Benefits, Non U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Current Pension Liability | 0.0 | 0.0 | |
Noncurrent Pension Liability | 0.0 | 0.0 | |
Noncurrent Pension Asset | (27.7) | (19.4) | |
Funded Status of Plan | (27.7) | (19.4) | |
Net Actuarial Gain (Loss) in Balance Sheet | (28.1) | (35.4) | |
Prior Service Credit in Balance Sheet | 0.0 | 0.0 | |
Pension Recognized in Balance Sheet, Gross of Deferred Tax | (28.1) | (35.4) | |
Pension Deferred Tax Asset in Balance Sheet | 8.9 | 10.4 | |
Pension Recognized in Balance Sheet, Net of Deferred Tax | (19.2) | (25.0) | (26.0) |
Other Postretirement Benefit Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Current Pension Liability | 13.0 | 13.7 | |
Noncurrent Pension Liability | 136.2 | 148.9 | |
Noncurrent Pension Asset | 0.0 | 0.0 | |
Funded Status of Plan | 149.2 | 162.6 | |
Net Actuarial Gain (Loss) in Balance Sheet | 6.2 | (2.6) | |
Prior Service Credit in Balance Sheet | 0.4 | 0.7 | |
Pension Recognized in Balance Sheet, Gross of Deferred Tax | 6.6 | (1.9) | |
Pension Deferred Tax Asset in Balance Sheet | 7.9 | 10.9 | |
Pension Recognized in Balance Sheet, Net of Deferred Tax | $ 14.5 | $ 9.0 | $ 18.5 |
Employee Benefit Plans Amounts Recognized in Other Comprehensive Income (Details) £ in Millions, $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
Dec. 31, 2013
GBP (£)
|
|
Pension Benefits, U.S. Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Pension Recognized in Balance Sheet, Net of Deferred Tax | $ (385.5) | $ (222.4) | ||
Amortization of Net Actuarial Loss | 11.6 | 5.2 | $ 31.7 | |
Non-operating retirement related loss due to settlement | 0.0 | 64.4 | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax | (22.8) | (320.5) | ||
Amortization of Prior Service Cost (Credit) | 0.0 | 0.0 | (0.1) | |
Recognized Net Gain (Loss) Due to Curtailments | 0.0 | 0.0 | 0.7 | |
Plan Amendments | 7.5 | 0.0 | ||
Change in Unrecognized Pension and Postretirement Benefit Costs, Tax Expense | 1.3 | 87.8 | ||
Pension Recognized in Balance Sheet, Net of Deferred Tax | (387.9) | (385.5) | (222.4) | |
Pension Benefits, Non U.S. Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Pension Recognized in Balance Sheet, Net of Deferred Tax | (25.0) | (26.0) | ||
Amortization of Net Actuarial Loss | 0.3 | 0.4 | 1.2 | |
Non-operating retirement related loss due to settlement | 0.0 | 0.0 | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax | 7.0 | 1.1 | ||
Amortization of Prior Service Cost (Credit) | 0.0 | 0.0 | 0.0 | |
Recognized Net Gain (Loss) Due to Curtailments | 0.0 | 0.0 | (3.7) | £ (2.3) |
Plan Amendments | 0.0 | 0.0 | ||
Change in Unrecognized Pension and Postretirement Benefit Costs, Tax Expense | (1.5) | (0.5) | ||
Pension Recognized in Balance Sheet, Net of Deferred Tax | (19.2) | (25.0) | (26.0) | |
Other Postretirement Benefit Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Pension Recognized in Balance Sheet, Net of Deferred Tax | 9.0 | 18.5 | ||
Amortization of Net Actuarial Loss | 0.0 | 0.0 | 0.0 | |
Non-operating retirement related loss due to settlement | 0.0 | 0.0 | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax | 8.8 | (12.9) | ||
Amortization of Prior Service Cost (Credit) | (0.3) | (1.7) | (4.9) | |
Recognized Net Gain (Loss) Due to Curtailments | 0.0 | 0.0 | 0.0 | |
Plan Amendments | 0.0 | 0.0 | ||
Change in Unrecognized Pension and Postretirement Benefit Costs, Tax Expense | (3.0) | 5.1 | ||
Pension Recognized in Balance Sheet, Net of Deferred Tax | $ 14.5 | $ 9.0 | $ 18.5 |
Employee Benefit Plans US Pension Assets, Fair Value Inputs (Details) - Pension Benefits, U.S. Plans - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | $ 1,399.6 | $ 1,469.4 |
Fair Value, Inputs, Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 380.1 | 550.4 |
Fair Value, Inputs, Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 882.9 | 796.9 |
Fair Value, Inputs, Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 136.6 | 122.1 |
United States Government and Government Agencies and Authorities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 244.3 | 258.1 |
United States Government and Government Agencies and Authorities | Fair Value, Inputs, Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 231.5 | 243.5 |
United States Government and Government Agencies and Authorities | Fair Value, Inputs, Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 12.8 | 14.6 |
United States Government and Government Agencies and Authorities | Fair Value, Inputs, Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 0.0 |
Corporate Debt Securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 291.4 | 322.8 |
Corporate Debt Securities | Fair Value, Inputs, Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 1.6 |
Corporate Debt Securities | Fair Value, Inputs, Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 291.4 | 321.2 |
Corporate Debt Securities | Fair Value, Inputs, Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 0.0 |
States, Municipalities, and Political Subdivisions | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 2.1 | 2.9 |
States, Municipalities, and Political Subdivisions | Fair Value, Inputs, Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 0.0 |
States, Municipalities, and Political Subdivisions | Fair Value, Inputs, Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 2.1 | 2.9 |
States, Municipalities, and Political Subdivisions | Fair Value, Inputs, Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 0.0 |
Opportunistic Credits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 163.5 | 147.8 |
Opportunistic Credits | Fair Value, Inputs, Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 62.8 |
Opportunistic Credits | Fair Value, Inputs, Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 163.5 | 85.0 |
Opportunistic Credits | Fair Value, Inputs, Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 0.0 |
Real Estate | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 83.5 | |
Real Estate | Fair Value, Inputs, Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | |
Real Estate | Fair Value, Inputs, Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 83.5 | |
Real Estate | Fair Value, Inputs, Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | |
Private Equity Direct Investments | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 30.4 | 17.2 |
Private Equity Direct Investments | Fair Value, Inputs, Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 0.0 |
Private Equity Direct Investments | Fair Value, Inputs, Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 0.0 |
Private Equity Direct Investments | Fair Value, Inputs, Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 30.4 | 17.2 |
Private Equity Funds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 35.3 | 34.9 |
Private Equity Funds | Fair Value, Inputs, Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 0.0 |
Private Equity Funds | Fair Value, Inputs, Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 0.0 |
Private Equity Funds | Fair Value, Inputs, Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 35.3 | 34.9 |
Hedge Funds | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 70.9 | 70.0 |
Hedge Funds | Fair Value, Inputs, Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 0.0 |
Hedge Funds | Fair Value, Inputs, Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 0.0 |
Hedge Funds | Fair Value, Inputs, Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 70.9 | 70.0 |
Cash and Cash Equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 28.0 | 52.8 |
Cash and Cash Equivalents | Fair Value, Inputs, Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 28.0 | 52.8 |
Cash and Cash Equivalents | Fair Value, Inputs, Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 0.0 |
Cash and Cash Equivalents | Fair Value, Inputs, Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 0.0 |
U.S. Large Cap | Equity Securites | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 176.2 | 181.4 |
U.S. Large Cap | Equity Securites | Fair Value, Inputs, Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 0.0 |
U.S. Large Cap | Equity Securites | Fair Value, Inputs, Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 176.2 | 181.4 |
U.S. Large Cap | Equity Securites | Fair Value, Inputs, Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 0.0 |
U.S. Mid Cap | Equity Securites | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 55.0 | 88.3 |
U.S. Mid Cap | Equity Securites | Fair Value, Inputs, Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 0.0 |
U.S. Mid Cap | Equity Securites | Fair Value, Inputs, Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 55.0 | 88.3 |
U.S. Mid Cap | Equity Securites | Fair Value, Inputs, Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 0.0 |
U.S. Small Cap | Equity Securites | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 56.9 | 118.7 |
U.S. Small Cap | Equity Securites | Fair Value, Inputs, Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 56.9 | 118.7 |
U.S. Small Cap | Equity Securites | Fair Value, Inputs, Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 0.0 |
U.S. Small Cap | Equity Securites | Fair Value, Inputs, Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 0.0 |
International Securities | Equity Securites | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 126.6 | 134.5 |
International Securities | Equity Securites | Fair Value, Inputs, Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 63.7 | 71.0 |
International Securities | Equity Securites | Fair Value, Inputs, Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 62.9 | 63.5 |
International Securities | Equity Securites | Fair Value, Inputs, Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 0.0 |
Emerging Markets | Equity Securites | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 35.5 | 40.0 |
Emerging Markets | Equity Securites | Fair Value, Inputs, Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 0.0 | 0.0 |
Emerging Markets | Equity Securites | Fair Value, Inputs, Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | 35.5 | 40.0 |
Emerging Markets | Equity Securites | Fair Value, Inputs, Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Fair Value of Invested Pension Assets | $ 0.0 | $ 0.0 |
Employee Benefit Plans US Changes in Assets measured at fair value using significant unobservable inputs (Details) - Fair Value, Inputs, Level 3 - Pension Benefits, U.S. Plans - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance of Assets Measured with Unobservable Inputs | $ 122.1 | $ 103.7 |
Actual Return on Plan Assets Still Held | 7.8 | 9.7 |
Actual Return on Plan Assets Sold During Period | 1.6 | 2.6 |
Purchases | 14.5 | 38.8 |
Sales | (9.4) | (32.7) |
Level 3 Transfers Into | 0.0 | 0.0 |
Level 3 Transfers Out of | 0.0 | 0.0 |
Ending Balance of Assets Measured with Unobservable Inputs | 136.6 | 122.1 |
Private Equity Direct Investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance of Assets Measured with Unobservable Inputs | 17.2 | 7.2 |
Actual Return on Plan Assets Still Held | 4.2 | 1.7 |
Actual Return on Plan Assets Sold During Period | (0.2) | 0.1 |
Purchases | 11.9 | 9.0 |
Sales | (2.7) | (0.8) |
Level 3 Transfers Into | 0.0 | 0.0 |
Level 3 Transfers Out of | 0.0 | 0.0 |
Ending Balance of Assets Measured with Unobservable Inputs | 30.4 | 17.2 |
Private Equity Funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance of Assets Measured with Unobservable Inputs | 34.9 | 29.6 |
Actual Return on Plan Assets Still Held | 2.5 | 4.8 |
Actual Return on Plan Assets Sold During Period | 2.0 | 2.6 |
Purchases | 2.4 | 3.9 |
Sales | (6.5) | (6.0) |
Level 3 Transfers Into | 0.0 | 0.0 |
Level 3 Transfers Out of | 0.0 | 0.0 |
Ending Balance of Assets Measured with Unobservable Inputs | 35.3 | 34.9 |
Hedge Funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance of Assets Measured with Unobservable Inputs | 70.0 | 66.9 |
Actual Return on Plan Assets Still Held | 1.1 | 3.2 |
Actual Return on Plan Assets Sold During Period | (0.2) | (0.1) |
Purchases | 0.2 | 25.9 |
Sales | (0.2) | (25.9) |
Level 3 Transfers Into | 0.0 | 0.0 |
Level 3 Transfers Out of | 0.0 | 0.0 |
Ending Balance of Assets Measured with Unobservable Inputs | $ 70.9 | $ 70.0 |
Employee Benefit Plans UK Pension Assets, Fair Value Measurement by Input Level (Details) - Pension Benefits, Non U.S. Plans - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
---|---|---|---|
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Diversified Growth Assets | $ 156.3 | $ 167.6 | |
Fixed Interest and Index-linked Securities | 67.5 | 78.0 | |
Cash Equivalents | 7.7 | 0.7 | |
Fair Value of Plan Assets | 231.5 | 246.3 | $ 225.7 |
Fair Value, Inputs, Level 1 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Diversified Growth Assets | 0.0 | 0.0 | |
Fixed Interest and Index-linked Securities | 62.2 | 78.0 | |
Cash Equivalents | 7.7 | 0.7 | |
Fair Value of Plan Assets | 69.9 | 78.7 | |
Fair Value, Inputs, Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Diversified Growth Assets | 156.3 | 167.6 | |
Fixed Interest and Index-linked Securities | 5.3 | 0.0 | |
Cash Equivalents | 0.0 | 0.0 | |
Fair Value of Plan Assets | 161.6 | 167.6 | |
Fair Value, Inputs, Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Diversified Growth Assets | 0.0 | 0.0 | |
Fixed Interest and Index-linked Securities | 0.0 | 0.0 | |
Cash Equivalents | 0.0 | 0.0 | |
Fair Value of Plan Assets | $ 0.0 | $ 0.0 |
Employee Benefit Plans OPEB Plan Assets, Fair Value Measurements by Input Level (Details) - Other Postretirement Benefit Plans - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Life Settlement Contracts, Fair Value Method, Face Value | $ 11.2 | $ 11.3 |
Fair Value, Inputs, Level 1 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Life Settlement Contracts, Fair Value Method, Face Value | 0.0 | 0.0 |
Fair Value, Inputs, Level 2 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Life Settlement Contracts, Fair Value Method, Face Value | 0.0 | 0.0 |
Fair Value, Inputs, Level 3 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Life Settlement Contracts, Fair Value Method, Face Value | $ 11.2 | $ 11.3 |
Employee Benefit Plans OPEB Changes in Assets Measured at Fair Value Using Signficant Unobservable Inputs (Details) - Other Postretirement Benefit Plans - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Contributions by Plan Participants | $ 4.6 | $ 4.1 |
Net Benefit Expenses Paid | (16.2) | (16.6) |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance of Assets Measured with Unobservable Inputs | 11.3 | 11.4 |
Actual Return on Plan Assets Still Held | 0.3 | 0.4 |
Contributions by Plan Participants | 15.8 | 16.1 |
Net Benefit Expenses Paid | (16.2) | (16.6) |
Ending Balance of Assets Measured with Unobservable Inputs | $ 11.2 | $ 11.3 |
Employee Benefit Plans Measurement Assumptions (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2015
Rate
|
Dec. 31, 2014 |
|
Pension Benefits, U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Discount Rate Assumptions Used Calculating Benefit Obligation | 4.80% | 4.80% | 4.40% |
Discount Rate Assumptions Used Calculating Net Periodic Benefit Cost | 4.40% | 5.30% | |
Expected Long-term Return on Assets Assumptions Used Calculating Net Periodic Benefit Cost | 7.50% | 7.50% | |
Pension Benefits, Non U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Discount Rate Assumptions Used Calculating Benefit Obligation | 3.80% | 3.80% | 3.60% |
Rate of Compensation Increase Assumptions Used Calculating Benefit Obligation | 3.60% | 3.60% | 3.60% |
Discount Rate Assumptions Used Calculating Net Periodic Benefit Cost | 3.60% | 4.40% | |
Expected Long-term Return on Assets Assumptions Used Calculating Net Periodic Benefit Cost | 5.20% | 6.10% | |
Rate of Compensation Increase Assumptions Used Calculating Net Periodic Benefit Cost | 3.60% | 3.90% | |
Other Postretirement Benefit Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Discount Rate Assumptions Used Calculating Benefit Obligation | 4.70% | 4.70% | 4.30% |
Discount Rate Assumptions Used Calculating Net Periodic Benefit Cost | 4.30% | 5.00% | |
Expected Long-term Return on Assets Assumptions Used Calculating Net Periodic Benefit Cost | 5.75% | 5.75% | 5.75% |
Employee Benefit Plans Net Periodic Benefit Cost (Detail) £ in Millions, $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
Dec. 31, 2013
GBP (£)
|
|
Pension Benefits, U.S. Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Service Cost | $ 3.8 | $ 3.7 | $ 59.4 | |
Interest Cost | 82.2 | 89.9 | 86.3 | |
Expected Return on Plan Assets | (108.9) | (117.8) | (105.5) | |
Amortization of Net Actuarial Loss | 11.6 | 5.2 | 31.7 | |
Amortization of Prior Service Cost (Credit) | 0.0 | 0.0 | (0.1) | |
Recognized Net Gain (Loss) Due to Curtailments | 0.0 | 0.0 | 0.7 | |
Pension Settlement Costs | 0.0 | 64.4 | 0.0 | |
Net Periodic Benefit Cost | (11.3) | 45.4 | 72.5 | |
Pension Benefits, Non U.S. Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Service Cost | 0.0 | 2.3 | 4.3 | |
Interest Cost | 7.9 | 9.1 | 8.6 | |
Expected Return on Plan Assets | (12.4) | (13.7) | (12.5) | |
Amortization of Net Actuarial Loss | 0.3 | 0.4 | 1.2 | |
Amortization of Prior Service Cost (Credit) | 0.0 | 0.0 | 0.0 | |
Recognized Net Gain (Loss) Due to Curtailments | 0.0 | 0.0 | (3.7) | £ (2.3) |
Pension Settlement Costs | 0.0 | 0.0 | 0.0 | |
Net Periodic Benefit Cost | (4.2) | (1.9) | (2.1) | |
Other Postretirement Benefit Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Service Cost | 0.0 | 0.3 | 0.7 | |
Interest Cost | 7.2 | 7.9 | 8.0 | |
Expected Return on Plan Assets | (0.7) | (0.7) | (0.6) | |
Amortization of Net Actuarial Loss | 0.0 | 0.0 | 0.0 | |
Amortization of Prior Service Cost (Credit) | (0.3) | (1.7) | (4.9) | |
Recognized Net Gain (Loss) Due to Curtailments | 0.0 | 0.0 | 0.0 | |
Pension Settlement Costs | 0.0 | 0.0 | 0.0 | |
Net Periodic Benefit Cost | $ 6.2 | $ 5.8 | $ 3.2 |
Employee Benefit Plans Expected Benefit Payments (Details) $ in Millions |
Dec. 31, 2015
USD ($)
|
---|---|
Pension Benefits, U.S. Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans | |
Benefit Payments in Year One | $ 66.3 |
Benefit Payments in Year Two | 68.7 |
Benefit Payments in Year Three | 71.9 |
Benefit Payments in Year Four | 74.9 |
Benefit Payments in Year Five | 79.1 |
Benefit Payments in Five Fiscal Years Thereafter | 452.7 |
Pension Benefits, Non U.S. Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans | |
Benefit Payments in Year One | 5.3 |
Benefit Payments in Year Two | 5.6 |
Benefit Payments in Year Three | 5.9 |
Benefit Payments in Year Four | 5.9 |
Benefit Payments in Year Five | 6.5 |
Benefit Payments in Five Fiscal Years Thereafter | 37.7 |
Other Postretirement Benefit Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans | |
Benefit Payments in Year One | 15.3 |
Prescription Drug Subsidy Receipts in Year One | 1.9 |
Net OPEB Payments in Year One | 13.4 |
Benefit Payments in Year Two | 15.0 |
Prescription Drug Subsidy Receipts in Year Two | 2.1 |
Net OPEB Payments in Year Two | 12.9 |
Benefit Payments in Year Three | 14.7 |
Prescription Drug Subsidy Receipts in Year Three | 2.3 |
Net OPEB Payments in Year Three | 12.4 |
Benefit Payments in Year Four | 14.4 |
Prescription Drug Subsidy Receipts in Year Four | 2.5 |
Net OPEB Payments in Year Four | 11.9 |
Benefit Payments in Year Five | 14.0 |
Prescription Drug Subsidy Receipts in Year Five | 2.7 |
Net OPEB Payments in Year Five | 11.3 |
Benefit Payments in Five Fiscal Years Thereafter | 62.7 |
Prescription Drug Subsidy Receipts in Five Fiscal Years Thereafter | 15.2 |
Net OPEB Payments in Five Fiscal Years Thereafter | $ 47.5 |
Employee Benefit Plans - Additional Information (Detail) |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2015
USD ($)
|
Dec. 31, 2015
GBP (£)
|
Dec. 31, 2015
Rate
|
Dec. 31, 2014
USD ($)
Rate
|
Dec. 31, 2013
USD ($)
Rate
|
Dec. 31, 2013
GBP (£)
Rate
|
Dec. 31, 2012 |
|
Pension and Other Postretirement Benefits Disclosure | |||||||||
Health Care Cost Trend Rate Assumed for Next Fiscal Year | Rate | 7.50% | ||||||||
Ultimate Health Care Cost Trend Rate | Rate | 5.00% | ||||||||
Effect of One Percentage Point Increase on Service and Interest Cost Components | $ 200,000 | ||||||||
Effect of One Percentage Point Decrease on Service and Interest Cost Components | (100,000) | ||||||||
Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | 4,300,000 | ||||||||
Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | (3,200,000) | ||||||||
Future Amortization of Actuarial Gain (Loss) | 16,500,000 | ||||||||
Future Amortization of Prior Service Cost (Credit) | 500,000 | ||||||||
Pension Benefits, U.S. Plans | |||||||||
Pension and Other Postretirement Benefits Disclosure | |||||||||
Plan Amendments | 7,500,000 | $ 0 | |||||||
Pension Plan Lump-sum Settlement Payment | 0 | 214,500,000 | |||||||
Pension Settlement Costs | $ 0 | $ 64,400,000 | $ 0 | ||||||
Discount Rate Assumptions Used Calculating Benefit Obligation | 4.80% | 4.80% | 4.80% | 4.80% | 4.80% | 4.40% | |||
Expected Long-term Return on Assets Assumptions Used Calculating Net Periodic Benefit Cost | 7.50% | 7.50% | |||||||
Decrease in Pension Liability Due to Remeasurement | 327,400,000 | ||||||||
Tax Impact of Curtailments | 114,600,000 | ||||||||
Recognized Net Gain (Loss) Due to Curtailments | $ 0 | $ 0 | (700,000) | ||||||
Average Remaining Life Expectancy of Plan Participants | 25 years | ||||||||
General Discussion of Pension and Other Postretirement Benefits | We had no regulatory contribution requirements for our U.S. qualified defined benefit plan in 2015 | ||||||||
Pension Benefits, Non U.S. Plans | |||||||||
Pension and Other Postretirement Benefits Disclosure | |||||||||
Plan Amendments | 0 | 0 | |||||||
Pension Plan Lump-sum Settlement Payment | 0 | 0 | |||||||
Pension Settlement Costs | $ 0 | $ 0 | 0 | ||||||
Discount Rate Assumptions Used Calculating Benefit Obligation | 3.80% | 3.80% | 3.80% | 3.80% | 3.80% | 3.60% | |||
Expected Long-term Return on Assets Assumptions Used Calculating Net Periodic Benefit Cost | 5.20% | 6.10% | |||||||
Decrease in Pension Liability Due to Remeasurement | 2,300,000 | £ 1,500,000 | |||||||
Recognized Net Gain (Loss) Due to Curtailments | $ 0 | $ 0 | $ 3,700,000 | £ 2,300,000 | |||||
Maximum Inflation Rate on Pensionable Earnings | Rate | 2.50% | 5.00% | 5.00% | ||||||
Average Remaining Life Expectancy of Plan Participants | 34 years | ||||||||
Pension Contributions | 0 | ||||||||
Other Postretirement Benefit Plans | |||||||||
Pension and Other Postretirement Benefits Disclosure | |||||||||
Plan Amendments | 0 | $ 0 | |||||||
Pension Plan Lump-sum Settlement Payment | 0 | 0 | |||||||
Pension Settlement Costs | $ 0 | $ 0 | $ 0 | ||||||
Discount Rate Assumptions Used Calculating Benefit Obligation | 4.70% | 4.70% | 4.70% | 4.70% | 4.70% | 4.30% | |||
Expected Long-term Return on Assets Assumptions Used Calculating Net Periodic Benefit Cost | 5.75% | 5.75% | 5.75% | ||||||
Recognized Net Gain (Loss) Due to Curtailments | $ 0 | $ 0 | $ 0 | ||||||
Level 3 Transfers Into | 0 | 0 | |||||||
Level 3 Transfers Out of | 0 | $ 0 | |||||||
Interest Rate During Period | 5.24% | 5.46% | |||||||
Health Care Cost Trend Rate Assumed for Next Fiscal Year | Rate | 7.50% | ||||||||
Equity Securites | Pension Benefits, U.S. Plans | |||||||||
Pension and Other Postretirement Benefits Disclosure | |||||||||
Target Plan Asset Allocations | Rate | 35.00% | ||||||||
Fixed Maturity Securities | Pension Benefits, U.S. Plans | |||||||||
Pension and Other Postretirement Benefits Disclosure | |||||||||
Target Plan Asset Allocations | Rate | 40.00% | ||||||||
Alternative Investments | Pension Benefits, U.S. Plans | |||||||||
Pension and Other Postretirement Benefits Disclosure | |||||||||
Target Plan Asset Allocations | Rate | 25.00% | ||||||||
Diversified Growth Assets | Pension Benefits, Non U.S. Plans | |||||||||
Pension and Other Postretirement Benefits Disclosure | |||||||||
Target Plan Asset Allocations | Rate | 70.00% | ||||||||
Interest Rate Contract | Pension Benefits, Non U.S. Plans | |||||||||
Pension and Other Postretirement Benefits Disclosure | |||||||||
Target Plan Asset Allocations | Rate | 30.00% | ||||||||
Minimum | |||||||||
Pension and Other Postretirement Benefits Disclosure | |||||||||
Private Equity Partnership Future Liquidation Term | 1 year | ||||||||
Minimum | Private Equity Funds | Pension Benefits, U.S. Plans | |||||||||
Pension and Other Postretirement Benefits Disclosure | |||||||||
Private Equity Partnership Future Liquidation Term | 5 years | ||||||||
Maximum | |||||||||
Pension and Other Postretirement Benefits Disclosure | |||||||||
Private Equity Partnership Future Liquidation Term | 12 years | ||||||||
Maximum | Private Equity Funds | Pension Benefits, U.S. Plans | |||||||||
Pension and Other Postretirement Benefits Disclosure | |||||||||
Private Equity Partnership Future Liquidation Term | 8 years | ||||||||
Prior to Pension Amendments | Pension Benefits, Non U.S. Plans | |||||||||
Pension and Other Postretirement Benefits Disclosure | |||||||||
Discount Rate Assumptions Used Calculating Benefit Obligation | 4.50% | ||||||||
Expected Long-term Return on Assets Assumptions Used Calculating Net Periodic Benefit Cost | 6.20% | ||||||||
After Pension Amendment | Pension Benefits, U.S. Plans | |||||||||
Pension and Other Postretirement Benefits Disclosure | |||||||||
Discount Rate Assumptions Used Calculating Benefit Obligation | 5.00% | 5.00% | |||||||
After Pension Amendment | Pension Benefits, Non U.S. Plans | |||||||||
Pension and Other Postretirement Benefits Disclosure | |||||||||
Discount Rate Assumptions Used Calculating Benefit Obligation | 4.60% | 4.60% | |||||||
Expected Long-term Return on Assets Assumptions Used Calculating Net Periodic Benefit Cost | 6.35% | 6.35% | |||||||
U.S. Defined Contribution Plan | |||||||||
Pension and Other Postretirement Benefits Disclosure | |||||||||
Matching Contribution Percent of Employees' Gross Pay | Rate | 5.00% | 3.00% | 3.00% | ||||||
Employer Discretionary Contribution Percentage of earnings | Rate | 4.50% | ||||||||
Employer Matching Contribution on amts over 3% | $ 0.50 | ||||||||
Employer Matching Contribution % for $0.50 | Rate | 2.00% | 2.00% | |||||||
Cost Recognized | 71,500,000.0 | $ 76,000,000 | $ 18,800,000.0 | ||||||
Non U.S. Defined Contribution Plan | |||||||||
Pension and Other Postretirement Benefits Disclosure | |||||||||
Matching Contribution Percent of Employees' Gross Pay | 5.00% | 5.00% | 5.00% | ||||||
Employer Discretionary Contribution Percentage of earnings | 6.00% | 5.00% | 5.00% | ||||||
Employer Matching Contribution for Every Pound on the First One Percent of Employee Contributions | £ | £ 2 | ||||||||
Employee Contribution Percentage Received 2-for-1 Employer Match | 1.00% | ||||||||
Cost Recognized | $ 5,700,000.0 | $ 5,000,000 | $ 2,900,000.0 |
Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Numerator | |||||||||||
Net Income | $ 226.1 | $ 203.8 | $ 224.3 | $ 212.9 | $ (282.2) | $ 219.1 | $ 239.4 | $ 225.8 | $ 867.1 | $ 402.1 | $ 847.0 |
Denominator | |||||||||||
Weighted Average Common Shares - Basic | 246,986,700 | 255,525,900 | 264,725,800 | ||||||||
Dilution for Assumed Exercises of Stock Options and Nonvested Stock Awards | 868,000 | 1,126,900 | 1,223,400 | ||||||||
Weighted Average Common Shares - Assuming Dilution | 247,854,700 | 256,652,800 | 265,949,200 | ||||||||
Net Income Per Common Share | |||||||||||
Basic | $ 0.93 | $ 0.83 | $ 0.90 | $ 0.85 | $ (1.12) | $ 0.86 | $ 0.93 | $ 0.87 | $ 3.51 | $ 1.57 | $ 3.20 |
Assuming Dilution | $ 0.93 | $ 0.83 | $ 0.90 | $ 0.84 | $ (1.12) | $ 0.86 | $ 0.93 | $ 0.86 | $ 3.50 | $ 1.57 | $ 3.19 |
Treasury Stock Transactions (Details) - USD ($) shares in Millions, $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||
Equity, Class of Treasury Stock | |||||
Expiration Date of Share Repurchase Program Authorized in May 2015 | Nov. 21, 2016 | ||||
Number of Treasury Shares Repurchased | 12.3 | 8.7 | 11.2 | ||
Cost of Shares Repurchased | [1] | $ 426.7 | $ 300.6 | $ 318.6 | |
Commission Paid on Stock Repurchases | 0.3 | $ 0.1 | $ 0.2 | ||
Repurchase Program Authorized in May 2015 | |||||
Equity, Class of Treasury Stock | |||||
Authorized Amount of Treasury Share Repurchases Under Stock Repurchase Program | 750.0 | ||||
Remaining Amount of Treasury Share Repurchases Authorized Under Stock Repurchase Program | 502.3 | ||||
Repurchase Program Authorized in December 2013 | |||||
Equity, Class of Treasury Stock | |||||
Authorized Amount of Treasury Share Repurchases Under Stock Repurchase Program | 750.0 | ||||
Remaining Amount of Treasury Share Repurchases Authorized Under Stock Repurchase Program | 0.0 | ||||
Repurchase Program Authorized in July 2012 | |||||
Equity, Class of Treasury Stock | |||||
Authorized Amount of Treasury Share Repurchases Under Stock Repurchase Program | 750.0 | ||||
Remaining Amount of Treasury Share Repurchases Authorized Under Stock Repurchase Program | $ 0.0 | ||||
|
Stockholders' Equity and Earnings Per Common Share - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Stockholders Equity and Earnings Per Common Share Additional Information [Abstract] | |||
Exercise Price Floor on Outstanding Stock Options | $ 11.37 | ||
Exercise Price Ceiling on Outstanding Stock Options | 26.29 | ||
Outstanding Restricted Stock Unit Grant Prices Lower Limit | 23.97 | ||
Outstanding Restricted Stock Unit Grant Prices Upper Limit | 36.95 | ||
Outstanding Performance Share Unit Awards Grant Price Range Lower Limit | 23.97 | ||
Outstanding Performance Share Unit Awards Grant Price Range Upper Limit | $ 34.08 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | 300,000 | 100,000 | 100,000 |
Shares of Treasury Stock Retired | 60,000,000 | ||
Cost of Retired Treasury Stock | $ 1,451.7 | ||
Authorized Shares of Preferred Stock | 25,000,000 | ||
Par Value Per Share of Preferred Stock | $ 0.1 | ||
Issued Shares of Preferred Stock | 0 |
Stock-Based Compensation - Activity for PSUs Classified as Equity (Details) - Performance Share Units - $ / shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted Average Grant Date Fair Value at Beginning of Period | $ 30.83 | ||
Weighted Average Grant Date Fair Value of Shares Granted | 35.13 | $ 34.72 | $ 25.26 |
Weighted Average Grant Date Fair Value of Shares Vested | 25.26 | ||
Weighted Average Grant Date Fair Value of Shares Forfeited | 35.03 | ||
Weighted Average Grant Date Fair Value at End of Period | $ 35.05 | $ 30.83 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Shares Outstanding Beginning Balance | 281 | ||
Shares Granted | 226 | ||
Shares Vested | (120) | ||
Shares Forfeited | (4) | ||
Shares Outstanding Ending Balance | 383 | 281 |
Stock-Based Compensation - Valuation Assumptions on PSU Grants (Details) - Performance Share Units |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015
Rate
|
Dec. 31, 2014
Rate
|
Dec. 31, 2013
Rate
|
|
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected Volatility Rate | 22.00% | 31.00% | 35.00% |
Expected Life | 3 years | 3 years | 3 years |
Risk Free Interest Rate | 0.91% | 0.65% | 0.38% |
Stock-Based Compensation - Nonvested Stock Awards Classified in Equity (Detail) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted Average Grant Date Fair Value at Beginning of Period | $ 28.41 | ||
Weighted Average Grant Date Fair Value of Shares Granted | 34.08 | $ 33.77 | $ 24.68 |
Weighted Average Grant Date Fair Value of Shares Vested | 28.12 | ||
Weighted Average Grant Date Fair Value of Shares Forfeited | 31.83 | ||
Weighted Average Grant Date Fair Value at End of Period | $ 32.40 | $ 28.41 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Shares Outstanding Beginning Balance | 1,081 | ||
Shares Granted | 576 | ||
Shares Vested | (762) | ||
Shares Forfeited | (29) | ||
Shares Outstanding Ending Balance | 866 | 1,081 |
Stock-Based Compensation - Cash Settled Awards Classified as Liability (Details) - Cash Settled Awards - $ / shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted Average Grant Date Fair Value at Beginning of Period | $ 27.31 | ||
Weighted Average Grant Date Fair Value of Shares Granted | 33.92 | $ 33.85 | $ 24.22 |
Weighted Average Grant Date Fair Value of Shares Vested | 29.11 | ||
Weighted Average Grant Date Fair Value at End of Period | $ 0.00 | $ 27.31 | |
Share-based Compensation Arrangement by Share-based Payment Award, Cash Settled Awards Classified as Liabilities | |||
Shares Outstanding Beginning Balance | 123 | ||
Shares Granted | 46 | ||
Shares Vested | (169) | ||
Shares Outstanding Ending Balance | 0 | 123 |
Fair Value of Cash Settled Awards (Details) - Cash Settled Awards - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted Average Grant Date Fair Value of Shares Granted | $ 33.92 | $ 33.85 | $ 24.22 |
Fair Value of Awards Vested During the Period | $ 4.9 | $ 2.1 | $ 2.4 |
Fair Value of Share-based Liabilities Paid | $ 2.5 | $ 2.9 | $ 2.5 |
Stock option activity (Detail) - Stock Options $ / shares in Units, shares in Thousands, $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award | |
Shares Exercisable | shares | 744 |
Weighted Average Exercise Price of Exercisable Shares | $ / shares | $ 23.00 |
Weighted Average Exercise Price of Shares Outstanding at Beginning of Period | $ / shares | 20.23 |
Weighted Average Exercise Price of Shares Exercised | $ / shares | 11.37 |
Weighted Average Exercise Price of Shares Outstanding at End of Period | $ / shares | $ 23.02 |
Weighted Average Remaining Contractual Term of Outstanding Options | 3 years 2 months 12 days |
Weighted Average Remaining Contractual Term of Exercisable Option | 3 years 1 month 6 days |
Options Outstanding, Intrinsic Value | $ | $ 7.8 |
Options, Exercisable, Intrinsic Value | $ | $ 7.7 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding | |
Shares Outstanding at Beginning of Period | shares | 999 |
Shares Exercised | shares | (240) |
Shares Outstanding at End of Period | shares | 759 |
Intrinsic Value of Options Exercised and Fair Value of Options Vested (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award | |||
Intrinsic Value of Options Exercised | $ 5.6 | $ 4.0 | $ 4.4 |
Fair Value of Options Vested | $ 1.1 | $ 2.4 | $ 2.4 |
Valuation Assumptions on Stock Option Grants (Details) - Stock Options |
12 Months Ended |
---|---|
Dec. 31, 2013
$ / shares
Rate
| |
Share-based Compensation Arrangement by Share-based Payment Award | |
Weighted Average Grant Date Fair Value of Shares Granted | $ / shares | $ 9.77 |
Expected Volatility Rate | 52.00% |
Expected Life | 6 years |
Expected Dividend Rate | 2.14% |
Risk Free Interest Rate | 1.12% |
Stock-Based Compensation Expense (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award | |||
Allocated Share-based Compensation Expense, Before Tax | $ 23.8 | $ 22.6 | $ 23.6 |
Allocated Share-based Compensation Expense, Net of Tax | 15.7 | 14.9 | 15.6 |
Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Allocated Share-based Compensation Expense, Before Tax | 4.5 | 2.5 | 1.1 |
Restricted Stock Units and Cash-Settled Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Allocated Share-based Compensation Expense, Before Tax | 18.6 | 19.0 | 21.0 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Allocated Share-based Compensation Expense, Before Tax | 0.2 | 0.6 | 1.0 |
Other Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Allocated Share-based Compensation Expense, Before Tax | $ 0.5 | $ 0.5 | $ 0.5 |
Stock-Based Compensation - Additional Information (Detail) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award | |||
Cash Received Under Share-based Payment Arrangements | $ 6,400,000 | $ 12,300,000 | $ 11,400,000 |
Stock Incentive Plan 2012 | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of Shares Authorized | 20,000,000 | ||
Number of Shares for Each Full Value Award | 1.76 | ||
Total Duration of the Stock Incentive Plan | 8 years | ||
Award Vesting Period | 3 years | ||
Number of Shares Available for Grant | 15,670,000 | ||
Stock Incentive Plan 2007 | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of Shares Authorized | 35,000,000 | ||
Number of Shares for Each Full Value Award | 2.7 | ||
Total Duration of the Stock Incentive Plan | 8 years | ||
Award Vesting Period | 3 years | ||
Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award Vesting Period | 3 years | ||
Weighted Average Grant Date Fair Value of Shares Granted | $ 35.13 | $ 34.72 | $ 25.26 |
Shares Vested | 120,000 | ||
Compensation Cost Not yet Recognized | $ 8,100,000 | ||
Period for Recognition of Compensation Cost Not Yet Recognized | 1 year 7 months 12 days | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted Average Grant Date Fair Value of Shares Granted | $ 34.08 | $ 33.77 | $ 24.68 |
Shares Vested | 762,000 | ||
Compensation Cost Not yet Recognized | $ 12,000,000 | ||
Period for Recognition of Compensation Cost Not Yet Recognized | 10 months 24 days | ||
Fair Value of Awards Vested During the Period | $ 21,400,000 | $ 19,800,000 | $ 18,300,000 |
Cash Settled Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted Average Grant Date Fair Value of Shares Granted | $ 33.92 | $ 33.85 | $ 24.22 |
Shares Vested | 169,000 | ||
Compensation Cost Not yet Recognized | $ 0 | ||
Fair Value of Awards Vested During the Period | 4,900,000 | $ 2,100,000 | $ 2,400,000 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock Option Compensation Not yet Recognized | $ 0.1 | ||
Options Granted | 0.00 | ||
Minimum | Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of Stock-based Awards Possible to be Earned | 40.00% | ||
Minimum | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award Vesting Period | 1 year | ||
Minimum | Cash Settled Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award Vesting Period | 1 year | ||
Minimum | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award Vesting Period | 1 year | ||
Maximum | Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of Stock-based Awards Possible to be Earned | 180.00% | ||
Maximum | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award Vesting Period | 3 years | ||
Maximum | Cash Settled Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award Vesting Period | 3 years | ||
Maximum | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award Vesting Period | 3 years | ||
Performance Factor Not Yet Applied | Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares Vested | 100,000.0 |
Reinsurance - Premium Income Data (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Reinsurance Disclosures [Abstract] | |||||||||||
Direct Premium Income | $ 8,151.9 | $ 7,899.3 | $ 7,777.3 | ||||||||
Reinsurance Assumed | 202.8 | 189.8 | 203.2 | ||||||||
Reinsurance Ceded | (272.3) | (291.9) | (355.8) | ||||||||
Premium Income | $ 2,037.8 | $ 2,020.8 | $ 2,017.5 | $ 2,006.3 | $ 1,967.9 | $ 1,947.2 | $ 1,943.6 | $ 1,938.5 | 8,082.4 | 7,797.2 | 7,624.7 |
Ceded Benefits and Change in Reserves for Future Benefits | $ 662.7 | $ 662.7 | $ 728.7 |
Reinsurance - Additional Information (Detail) |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Number of companies that make up majority of reinsurance recoverable | 13 |
AM Best A Rating or Better | Reinsurer Concentration Risk | Reinsurance Recoverable | Top 13 Reinsurers | |
Percentage of Concentration Risk | 92.00% |
AM Best, A- Rating | Reinsurer Concentration Risk | Reinsurance Recoverable | Other Reinsurers | |
Percentage of Concentration Risk | 7.00% |
AM Best, Below A- or Not Rated | Reinsurer Concentration Risk | Reinsurance Recoverable | Other Reinsurers | |
Percentage of Concentration Risk | 1.00% |
Premium Income by Major Line of Business within Each Segment (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Segment Reporting Information | |||||||||||
Premium Income | $ 2,037.8 | $ 2,020.8 | $ 2,017.5 | $ 2,006.3 | $ 1,967.9 | $ 1,947.2 | $ 1,943.6 | $ 1,938.5 | $ 8,082.4 | $ 7,797.2 | $ 7,624.7 |
Accident, Sickness, and Disability Insurance | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 6,099.2 | 5,926.0 | 5,849.6 | ||||||||
Life Insurance | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 1,983.2 | 1,871.2 | 1,775.1 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 8,082.4 | 7,797.2 | 7,624.7 | ||||||||
Operating Segments | Unum U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 4,960.0 | 4,659.7 | 4,517.1 | ||||||||
Operating Segments | Unum U.S. | Group Long term Disability | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 1,644.7 | 1,553.5 | 1,553.9 | ||||||||
Operating Segments | Unum U.S. | Group Short term Disability | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 607.4 | 558.1 | 519.6 | ||||||||
Operating Segments | Unum U.S. | Group Life | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 1,347.4 | 1,262.3 | 1,213.9 | ||||||||
Operating Segments | Unum U.S. | Accidental Death Dismemberment | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 131.7 | 125.9 | 121.6 | ||||||||
Operating Segments | Unum U.S. | Individual Disability Insurance | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 478.9 | 466.1 | 465.3 | ||||||||
Operating Segments | Unum U.S. | Voluntary Benefits | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 749.9 | 693.8 | 642.8 | ||||||||
Operating Segments | Unum U.K. | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 576.2 | 607.2 | 556.6 | ||||||||
Operating Segments | Unum U.K. | Group Long term Disability | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 397.4 | 418.9 | 389.9 | ||||||||
Operating Segments | Unum U.K. | Group Life | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 121.5 | 133.2 | 106.4 | ||||||||
Operating Segments | Unum U.K. | Supplemental Insurance | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 57.3 | 55.1 | 60.3 | ||||||||
Operating Segments | Colonial Life | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 1,338.6 | 1,273.7 | 1,232.2 | ||||||||
Operating Segments | Colonial Life | Accident, Sickness, and Disability Insurance | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 789.0 | 759.8 | 738.7 | ||||||||
Operating Segments | Colonial Life | Life Insurance | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 252.4 | 231.8 | 221.1 | ||||||||
Operating Segments | Colonial Life | Cancer and Critical Illness Colonial | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 297.2 | 282.1 | 272.4 | ||||||||
Operating Segments | Closed Block | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 1,207.6 | 1,256.6 | 1,318.8 | ||||||||
Operating Segments | Closed Block | Individual Disability Insurance | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 572.4 | 624.8 | 687.5 | ||||||||
Operating Segments | Closed Block | Long-term Care | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 633.5 | 630.9 | 630.6 | ||||||||
Operating Segments | Closed Block | Other Insurance Product Line | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | $ 1.7 | $ 0.9 | $ 0.7 |
Selected Operating Statement Data by Segment (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Segment Reporting Information | |||||||||||
Premium Income | $ 2,037.8 | $ 2,020.8 | $ 2,017.5 | $ 2,006.3 | $ 1,967.9 | $ 1,947.2 | $ 1,943.6 | $ 1,938.5 | $ 8,082.4 | $ 7,797.2 | $ 7,624.7 |
Net Investment Income | $ 636.4 | $ 612.1 | $ 630.7 | $ 602.0 | $ 632.7 | $ 611.3 | $ 632.4 | $ 615.8 | 2,481.2 | 2,492.2 | 2,506.9 |
Other Income | 211.5 | 219.0 | 230.2 | ||||||||
Interest and Debt Expense | 152.8 | 167.5 | 149.4 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 8,082.4 | 7,797.2 | 7,624.7 | ||||||||
Net Investment Income | 2,481.2 | 2,492.2 | 2,506.9 | ||||||||
Other Income | 211.5 | 219.0 | 230.2 | ||||||||
Operating Revenue | 10,775.1 | 10,508.4 | 10,361.8 | ||||||||
Operating Income (Loss) | 1,294.0 | 1,307.3 | 1,256.6 | ||||||||
Interest and Debt Expense | 152.8 | 154.3 | 149.4 | ||||||||
Depreciation and Amortization | 587.1 | 534.4 | 509.8 | ||||||||
Operating Segments | Unum U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 4,960.0 | 4,659.7 | 4,517.1 | ||||||||
Net Investment Income | 865.3 | 878.9 | 919.4 | ||||||||
Other Income | 119.2 | 122.1 | 128.3 | ||||||||
Operating Revenue | 5,944.5 | 5,660.7 | 5,564.8 | ||||||||
Operating Income (Loss) | 850.0 | 844.9 | 848.8 | ||||||||
Interest and Debt Expense | 0.0 | 0.0 | 0.1 | ||||||||
Depreciation and Amortization | 347.0 | 314.2 | 292.5 | ||||||||
Operating Segments | Unum U.K. | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 576.2 | 607.2 | 556.6 | ||||||||
Net Investment Income | 124.9 | 151.0 | 148.5 | ||||||||
Other Income | 0.0 | 0.0 | 0.1 | ||||||||
Operating Revenue | 701.1 | 758.2 | 705.2 | ||||||||
Operating Income (Loss) | 140.6 | 147.8 | 132.0 | ||||||||
Interest and Debt Expense | 0.0 | 0.0 | 0.0 | ||||||||
Depreciation and Amortization | 18.0 | 19.2 | 22.5 | ||||||||
Operating Segments | Colonial Life | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 1,338.6 | 1,273.7 | 1,232.2 | ||||||||
Net Investment Income | 145.4 | 145.5 | 144.1 | ||||||||
Other Income | 0.1 | 0.1 | 0.2 | ||||||||
Operating Revenue | 1,484.1 | 1,419.3 | 1,376.5 | ||||||||
Operating Income (Loss) | 309.1 | 299.0 | 283.6 | ||||||||
Interest and Debt Expense | 0.0 | 0.0 | 0.0 | ||||||||
Depreciation and Amortization | 214.6 | 194.1 | 188.7 | ||||||||
Operating Segments | Closed Block | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 1,207.6 | 1,256.6 | 1,318.8 | ||||||||
Net Investment Income | 1,320.0 | 1,281.5 | 1,270.2 | ||||||||
Other Income | 89.3 | 91.8 | 93.9 | ||||||||
Operating Revenue | 2,616.9 | 2,629.9 | 2,682.9 | ||||||||
Operating Income (Loss) | 119.1 | 120.0 | 107.3 | ||||||||
Interest and Debt Expense | 6.6 | 7.3 | 8.4 | ||||||||
Depreciation and Amortization | 6.6 | 5.9 | 5.2 | ||||||||
Operating Segments | Corporate and Other Segment | |||||||||||
Segment Reporting Information | |||||||||||
Premium Income | 0.0 | 0.0 | 0.0 | ||||||||
Net Investment Income | 25.6 | 35.3 | 24.7 | ||||||||
Other Income | 2.9 | 5.0 | 7.7 | ||||||||
Operating Revenue | 28.5 | 40.3 | 32.4 | ||||||||
Operating Income (Loss) | (124.8) | (104.4) | (115.1) | ||||||||
Interest and Debt Expense | 146.2 | 147.0 | 140.9 | ||||||||
Depreciation and Amortization | $ 0.9 | $ 1.0 | $ 0.9 |
Segment Information Deferred Acquisition Costs by Segment (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Movement Analysis of Deferred Policy Acquisition Costs | |||
Deferred Acquisition Costs at Beginning of Year | $ 1,901.3 | ||
Deferred Policy Acquisition Cost, Amortization Expense | (482.3) | $ (440.8) | $ (418.9) |
Deferred Acquisition Costs at End of Year | 2,008.5 | 1,901.3 | |
Operating Segments | |||
Movement Analysis of Deferred Policy Acquisition Costs | |||
Deferred Acquisition Costs at Beginning of Year | 1,901.3 | 1,829.2 | 1,755.5 |
Deferral of Acquisition Costs | 569.7 | 524.0 | 466.8 |
Deferred Policy Acquisition Cost, Amortization Expense | (482.3) | (440.8) | (418.9) |
Adjustment Related to Unrealized Investment (Gain) Loss | 21.4 | (9.2) | 25.4 |
Deferred Policy Acquisition Costs Foreign Currency Translation Adjustment And Other | (1.6) | (1.9) | 0.4 |
Deferred Acquisition Costs at End of Year | 2,008.5 | 1,901.3 | 1,829.2 |
Operating Segments | Unum U.S. | |||
Movement Analysis of Deferred Policy Acquisition Costs | |||
Deferred Acquisition Costs at Beginning of Year | 1,096.5 | 1,051.5 | 1,024.3 |
Deferral of Acquisition Costs | 307.3 | 292.7 | 252.0 |
Deferred Policy Acquisition Cost, Amortization Expense | (272.3) | (248.1) | (230.0) |
Adjustment Related to Unrealized Investment (Gain) Loss | 4.9 | 0.4 | 5.2 |
Deferred Policy Acquisition Costs Foreign Currency Translation Adjustment And Other | 0.0 | 0.0 | 0.0 |
Deferred Acquisition Costs at End of Year | 1,136.4 | 1,096.5 | 1,051.5 |
Operating Segments | Unum U.K. | |||
Movement Analysis of Deferred Policy Acquisition Costs | |||
Deferred Acquisition Costs at Beginning of Year | 30.4 | 34.3 | 38.8 |
Deferral of Acquisition Costs | 9.6 | 10.5 | 9.8 |
Deferred Policy Acquisition Cost, Amortization Expense | (11.3) | (12.5) | (14.7) |
Adjustment Related to Unrealized Investment (Gain) Loss | 0.0 | 0.0 | 0.0 |
Deferred Policy Acquisition Costs Foreign Currency Translation Adjustment And Other | (1.6) | (1.9) | 0.4 |
Deferred Acquisition Costs at End of Year | 27.1 | 30.4 | 34.3 |
Operating Segments | Colonial Life | |||
Movement Analysis of Deferred Policy Acquisition Costs | |||
Deferred Acquisition Costs at Beginning of Year | 774.4 | 743.4 | 692.4 |
Deferral of Acquisition Costs | 252.8 | 220.8 | 205.0 |
Deferred Policy Acquisition Cost, Amortization Expense | (198.7) | (180.2) | (174.2) |
Adjustment Related to Unrealized Investment (Gain) Loss | 16.5 | (9.6) | 20.2 |
Deferred Policy Acquisition Costs Foreign Currency Translation Adjustment And Other | 0.0 | 0.0 | 0.0 |
Deferred Acquisition Costs at End of Year | $ 845.0 | $ 774.4 | $ 743.4 |
Assets by Segment (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Segment Reporting Information | ||
Total Assets | $ 60,589.7 | $ 62,450.2 |
Operating Segments | ||
Segment Reporting Information | ||
Total Assets | 60,589.7 | 62,450.2 |
Operating Segments | Unum U.S. | ||
Segment Reporting Information | ||
Total Assets | 18,242.4 | 18,676.5 |
Operating Segments | Unum U.K. | ||
Segment Reporting Information | ||
Total Assets | 3,432.4 | 3,702.5 |
Operating Segments | Colonial Life | ||
Segment Reporting Information | ||
Total Assets | 3,776.8 | 3,692.2 |
Operating Segments | Closed Block | ||
Segment Reporting Information | ||
Total Assets | 32,992.4 | 33,960.2 |
Operating Segments | Corporate and Other Segment | ||
Segment Reporting Information | ||
Total Assets | $ 2,145.7 | $ 2,418.8 |
Reconciliation of Operating Revenue and Operating Income by Segment to Total Revenue and Income Before Income Tax (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Segment Reporting, Revenue Reconciling Item | |||||||||||
Net Realized Investment Gain (Loss) | $ (2.7) | $ (26.6) | $ 0.8 | $ (15.3) | $ (17.3) | $ 1.2 | $ 25.9 | $ 6.3 | $ (43.8) | $ 16.1 | $ 6.8 |
Total Revenue | 2,722.4 | 2,657.8 | 2,703.7 | 2,647.4 | 2,639.0 | 2,614.3 | 2,656.8 | 2,614.4 | 10,731.3 | 10,524.5 | 10,368.6 |
Net Realized Investment Gain (Loss) | (2.7) | (26.6) | 0.8 | (15.3) | (17.3) | 1.2 | 25.9 | 6.3 | (43.8) | 16.1 | 6.8 |
Reserve Increase for Long-term Care | (698.2) | ||||||||||
Unclaimed Death Benefit Reserve Increase (Decrease) Before Taxes | (95.5) | ||||||||||
Income Before Income Tax | $ 316.6 | $ 298.9 | $ 319.8 | $ 303.0 | $ (454.6) | $ 317.0 | $ 349.8 | $ 329.8 | 1,238.3 | 542.0 | 1,220.0 |
Operating Segments | |||||||||||
Segment Reporting, Revenue Reconciling Item | |||||||||||
Operating Revenue | 10,775.1 | 10,508.4 | 10,361.8 | ||||||||
Net Realized Investment Gain (Loss) | (43.8) | 16.1 | 6.8 | ||||||||
Total Revenue | 10,731.3 | 10,524.5 | 10,368.6 | ||||||||
Operating Income | 1,294.0 | 1,307.3 | 1,256.6 | ||||||||
Net Realized Investment Gain (Loss) | (43.8) | 16.1 | 6.8 | ||||||||
Non-operating Retirement-related Loss | (11.9) | (70.0) | (32.9) | ||||||||
Make-whole Premium on Early Repayment of Debt | 0.0 | (13.2) | 0.0 | ||||||||
Reserve Increase for Long-term Care | 0.0 | (698.2) | 0.0 | ||||||||
Waiver of Premium Benefit Reserve Increase (Decrease) Before Tax | 0.0 | 0.0 | 85.0 | ||||||||
Income Before Income Tax | 1,238.3 | 542.0 | 1,220.0 | ||||||||
Unum U.S. | |||||||||||
Segment Reporting, Revenue Reconciling Item | |||||||||||
Unclaimed Death Benefit Reserve Increase (Decrease) Before Taxes | (75.4) | ||||||||||
Unum U.S. | Operating Segments | |||||||||||
Segment Reporting, Revenue Reconciling Item | |||||||||||
Operating Revenue | 5,944.5 | 5,660.7 | 5,564.8 | ||||||||
Operating Income | 850.0 | 844.9 | 848.8 | ||||||||
Unclaimed Death Benefit Reserve Increase (Decrease) Before Taxes | 0.0 | 0.0 | (75.4) | ||||||||
Colonial Life | Operating Segments | |||||||||||
Segment Reporting, Revenue Reconciling Item | |||||||||||
Operating Revenue | 1,484.1 | 1,419.3 | 1,376.5 | ||||||||
Operating Income | 309.1 | 299.0 | 283.6 | ||||||||
Unclaimed Death Benefit Reserve Increase (Decrease) Before Taxes | $ 0.0 | $ 0.0 | $ (20.1) |
Segment Information Segments - Additional Information (Detail) £ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
Integer
Rate
|
Dec. 31, 2015
GBP (£)
Integer
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2014
GBP (£)
|
Dec. 31, 2015
GBP (£)
Rate
|
|
Supplementary Insurance Information, by Segment | |||||
Number of Operating Segments | Integer | 3 | 3 | |||
Effective Date of Business Acquisition | Sep. 03, 2015 | Sep. 03, 2015 | |||
Percentage Ownership of Acquired Business | Rate | 100.00% | 100.00% | |||
Name of Acquired Businesses | National Dental Plan Limited and associated companies (National Dental) | National Dental Plan Limited and associated companies (National Dental) | |||
Total Cash Purchase Price to Acquire Business | $ 54,300,000 | £ 35.9 | |||
Total Revenues of Acquired Business | $ 24,200,000 | £ 14.7 | |||
Assets of Acquiree at Acquisition Date | 28,100,000 | 18.6 | |||
Liabilities of Acquiree at Acquisition Date | 7,500,000 | £ 5.0 | |||
Goodwill | 230,900,000 | 198,700,000 | |||
Unum U.K. | |||||
Supplementary Insurance Information, by Segment | |||||
Goodwill | 33,700,000 | £ 22.3 | |||
Unum U.S. | |||||
Supplementary Insurance Information, by Segment | |||||
Goodwill | $ 187,600,000 | $ 187,600,000.0 |
Commitments and Contingent Liabilities - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
Future Minimum Lease Payments Due | $ 220.9 | ||
Future Minimum Lease Payments Due Within Twelve Months | 56.8 | ||
Future Minimum Lease Payments Due Within Two Years | 40.1 | ||
Future Minimum Lease Payments Due Within Three Years | 21.4 | ||
Future Minimum Lease Payments Due Within Four Years | 19.9 | ||
Future Minimum Lease Payments Due Within Five Years | 16.9 | ||
Future Minimum Lease Payments Due Thereafter | 65.8 | ||
Rental Expense | 42.5 | $ 44.2 | $ 44.1 |
Total Unfunded Commitments | $ 291.5 |
Statutory Financial Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
United States Traditional Insurance Subsidiaries | |||
Statutory Accounting Practices | |||
Statutory Net Income | $ 653.7 | $ 623.1 | $ 584.5 |
Statutory Combined Net Gain from Operations | 689.2 | 618.1 | 617.5 |
Statutory Combined Capital and Surplus | 3,470.3 | 3,462.8 | |
Captive Reinsurers | |||
Statutory Accounting Practices | |||
Statutory Net Income | (56.3) | (123.0) | 13.3 |
Statutory Combined Net Gain from Operations | (54.3) | (123.8) | $ 13.6 |
Statutory Combined Capital and Surplus | $ 1,672.3 | $ 1,668.3 |
Statutory Financial Information - Additional Details (Detail) £ in Millions, $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2014
GBP (£)
|
Dec. 31, 2013
USD ($)
|
Dec. 31, 2015
GBP (£)
|
Dec. 31, 2014
GBP (£)
|
|
Fairwind Insurance Company | ||||||
Statutory Accounting Practices | ||||||
Statutory Accounting Practices, Permitted Practice, Amount | $ 208.0 | $ 200.0 | ||||
Unum Limited | ||||||
Statutory Accounting Practices | ||||||
Statutory Net Income | £ | £ 50.7 | |||||
Statutory Combined Capital and Surplus | £ | £ 445.9 | |||||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments | £ | £ 147.8 | |||||
United States Traditional Insurance Subsidiaries | ||||||
Statutory Accounting Practices | ||||||
Statutory Net Income | 653.7 | 623.1 | $ 584.5 | |||
Statutory Combined Capital and Surplus | 3,470.3 | 3,462.8 | ||||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments | 663.6 | |||||
Cash and Securities Segregated under Federal and Other Regulations | $ 284.1 | $ 279.1 |
Schedule of Unaudited Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Selected Quarterly Financial Information [Abstract] | |||||||||||
Premium Income | $ 2,037.8 | $ 2,020.8 | $ 2,017.5 | $ 2,006.3 | $ 1,967.9 | $ 1,947.2 | $ 1,943.6 | $ 1,938.5 | $ 8,082.4 | $ 7,797.2 | $ 7,624.7 |
Net Investment Income | 636.4 | 612.1 | 630.7 | 602.0 | 632.7 | 611.3 | 632.4 | 615.8 | 2,481.2 | 2,492.2 | 2,506.9 |
Net Realized Investment Gain (Loss) | (2.7) | (26.6) | 0.8 | (15.3) | (17.3) | 1.2 | 25.9 | 6.3 | (43.8) | 16.1 | 6.8 |
Total Revenue | 2,722.4 | 2,657.8 | 2,703.7 | 2,647.4 | 2,639.0 | 2,614.3 | 2,656.8 | 2,614.4 | 10,731.3 | 10,524.5 | 10,368.6 |
Income (Loss) Before Income Tax | 316.6 | 298.9 | 319.8 | 303.0 | (454.6) | 317.0 | 349.8 | 329.8 | 1,238.3 | 542.0 | 1,220.0 |
Net Income (Loss) | $ 226.1 | $ 203.8 | $ 224.3 | $ 212.9 | $ (282.2) | $ 219.1 | $ 239.4 | $ 225.8 | $ 867.1 | $ 402.1 | $ 847.0 |
Basic Earnings Per Share | $ 0.93 | $ 0.83 | $ 0.90 | $ 0.85 | $ (1.12) | $ 0.86 | $ 0.93 | $ 0.87 | $ 3.51 | $ 1.57 | $ 3.20 |
Diluted Earnings Per Share | $ 0.93 | $ 0.83 | $ 0.90 | $ 0.84 | $ (1.12) | $ 0.86 | $ 0.93 | $ 0.86 | $ 3.50 | $ 1.57 | $ 3.19 |
Unaudited Quarterly Results - Additional Information (Detail) $ in Millions |
3 Months Ended |
---|---|
Dec. 31, 2014
USD ($)
| |
Interim Period, Costs Not Allocable | |
Reserve Increase for Long-term Care | $ 698.2 |
Reserve Charge for Long-term Care Product, After Tax | 453.8 |
Pension Settlement Loss | |
Interim Period, Costs Not Allocable | |
Non-operating Retirement-related Loss | 64.4 |
Non-operating Retirement Related Loss, After Tax | $ 41.9 |
Schedule I - Summary of Investments, Other Than Investments in Related Parties Schedule I - Summary of Investments, Other Than Investments in Related Parties (Details) $ in Millions |
Dec. 31, 2015
USD ($)
|
|||||||
---|---|---|---|---|---|---|---|---|
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||||||
Cost or Amortized Cost of Investments | $ 46,274.1 | [1] | ||||||
Amount Shown on the Balance Sheet | 50,023.7 | |||||||
United States Government and Government Agencies and Authorities | ||||||||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||||||
Cost or Amortized Cost of Investments | 1,265.8 | [1] | ||||||
Fair Value of Investments | 1,465.2 | |||||||
Amount Shown on the Balance Sheet | 1,465.2 | |||||||
States, Municipalities, and Political Subdivisions | ||||||||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||||||
Cost or Amortized Cost of Investments | 1,828.3 | [1] | ||||||
Fair Value of Investments | 2,117.1 | |||||||
Amount Shown on the Balance Sheet | 2,117.1 | |||||||
Foreign Governments | ||||||||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||||||
Cost or Amortized Cost of Investments | 897.2 | [1] | ||||||
Fair Value of Investments | 1,051.6 | |||||||
Amount Shown on the Balance Sheet | 1,051.6 | |||||||
Public Utilities | ||||||||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||||||
Cost or Amortized Cost of Investments | 6,979.3 | [1] | ||||||
Fair Value of Investments | 8,020.4 | |||||||
Amount Shown on the Balance Sheet | 8,020.4 | |||||||
Mortgage/Asset-backed Securities | ||||||||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||||||
Cost or Amortized Cost of Investments | 2,318.6 | [1] | ||||||
Fair Value of Investments | 2,481.5 | |||||||
Amount Shown on the Balance Sheet | 2,481.5 | |||||||
All Other Corporate Bonds | ||||||||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||||||
Cost or Amortized Cost of Investments | 26,325.5 | [1] | ||||||
Fair Value of Investments | 28,171.4 | |||||||
Amount Shown on the Balance Sheet | 28,171.4 | |||||||
Redeemable Preferred Stock | ||||||||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||||||
Cost or Amortized Cost of Investments | 44.0 | [1] | ||||||
Fair Value of Investments | 47.2 | |||||||
Amount Shown on the Balance Sheet | 47.2 | |||||||
Fixed Maturities | ||||||||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||||||
Cost or Amortized Cost of Investments | 39,658.7 | [1] | ||||||
Fair Value of Investments | 43,354.4 | |||||||
Amount Shown on the Balance Sheet | 43,354.4 | |||||||
Mortgages | ||||||||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||||||
Cost or Amortized Cost of Investments | 1,883.6 | [1] | ||||||
Amount Shown on the Balance Sheet | 1,883.6 | |||||||
Policy Loans | ||||||||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||||||
Cost or Amortized Cost of Investments | 3,395.4 | [1] | ||||||
Amount Shown on the Balance Sheet | 3,395.4 | |||||||
Derivatives | ||||||||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||||||
Cost or Amortized Cost of Investments | 0.0 | [1] | ||||||
Amount Shown on the Balance Sheet | 49.8 | [2] | ||||||
Equity Securities | ||||||||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||||||
Cost or Amortized Cost of Investments | 1.2 | [1] | ||||||
Amount Shown on the Balance Sheet | 1.4 | |||||||
Miscellaneous Long-term Investments | ||||||||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||||||
Cost or Amortized Cost of Investments | 527.9 | [1] | ||||||
Amount Shown on the Balance Sheet | 531.8 | [3] | ||||||
Short-term Investments | ||||||||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||||||||
Cost or Amortized Cost of Investments | 807.3 | [1] | ||||||
Amount Shown on the Balance Sheet | $ 807.3 | |||||||
|
Parent Company Balance Sheet (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
---|---|---|---|---|
Assets | ||||
Fixed Maturity Securities | $ 43,354.4 | $ 45,064.9 | ||
Other Long-term Investments | 583.0 | 545.0 | ||
Short-term Investments | 807.3 | 974.3 | ||
Other Assets | 663.5 | 661.9 | ||
Total Assets | 60,589.7 | 62,450.2 | ||
Liabilities | ||||
Short-term Debt | 352.4 | 151.9 | ||
Long-term Debt | 2,475.1 | 2,628.7 | ||
Other Liabilities | 1,501.1 | 1,498.8 | ||
Total Liabilities | 51,925.8 | 53,928.3 | ||
Stockholders' Equity | ||||
Common Stock | 30.3 | 30.2 | ||
Additional Paid-in Capital | 2,247.2 | 2,221.2 | ||
Accumulated Other Comprehensive Income | 16.1 | 166.4 | ||
Retained Earnings | 7,995.2 | 7,302.3 | $ 8,064.0 | $ 7,363.5 |
Treasury Stock | (1,624.9) | (1,198.2) | ||
Total Stockholders' Equity | 8,663.9 | 8,521.9 | $ 8,639.9 | |
Total Liabilities and Stockholders' Equity | 60,589.7 | 62,450.2 | ||
Parent Company | ||||
Assets | ||||
Fixed Maturity Securities | 273.4 | 162.2 | ||
Other Long-term Investments | 22.7 | 51.9 | ||
Short-term Investments | 288.1 | 326.2 | ||
Investments in Subsidiaries | 10,689.1 | 10,332.2 | ||
Deferred Income Tax | 160.1 | 160.1 | ||
Other Assets | 572.5 | 568.3 | ||
Total Assets | 12,005.9 | 11,600.9 | ||
Liabilities | ||||
Short-term Debt | 352.4 | 0.0 | ||
Long-term Debt | 2,151.1 | 2,230.3 | ||
Pension and Postretirement Benefits | 554.1 | 581.5 | ||
Other Liabilities | 284.4 | 267.2 | ||
Total Liabilities | 3,342.0 | 3,079.0 | ||
Stockholders' Equity | ||||
Common Stock | 30.3 | 30.2 | ||
Additional Paid-in Capital | 2,247.2 | 2,221.2 | ||
Accumulated Other Comprehensive Income | 16.1 | 166.4 | ||
Retained Earnings | 7,995.2 | 7,302.3 | ||
Treasury Stock | (1,624.9) | (1,198.2) | ||
Total Stockholders' Equity | 8,663.9 | 8,521.9 | ||
Total Liabilities and Stockholders' Equity | $ 12,005.9 | $ 11,600.9 |
Parent Company Balance Sheet (Parenthetical) (Detail) - USD ($) $ in Millions |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Amortized Cost of Fixed Maturity Securities | $ 39,658.7 | $ 38,803.4 |
Parent Company | ||
Amortized Cost of Fixed Maturity Securities | $ 273.7 | $ 161.4 |
Parent Company Statement of Income (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Condensed Financial Statements, Captions | |||||||||||
Other Income | $ 211.5 | $ 219.0 | $ 230.2 | ||||||||
Total Revenue | $ 2,722.4 | $ 2,657.8 | $ 2,703.7 | $ 2,647.4 | $ 2,639.0 | $ 2,614.3 | $ 2,656.8 | $ 2,614.4 | 10,731.3 | 10,524.5 | 10,368.6 |
Income Before Income Tax | 316.6 | 298.9 | 319.8 | 303.0 | (454.6) | 317.0 | 349.8 | 329.8 | 1,238.3 | 542.0 | 1,220.0 |
Income Tax Expense (Benefit) | 371.2 | 139.9 | 373.0 | ||||||||
Net Income | $ 226.1 | $ 203.8 | $ 224.3 | $ 212.9 | $ (282.2) | $ 219.1 | $ 239.4 | $ 225.8 | 867.1 | 402.1 | 847.0 |
Net Other Comprehensive Income (Loss) | (150.3) | (88.6) | (373.0) | ||||||||
Comprehensive Income | 716.8 | 313.5 | 474.0 | ||||||||
Parent Company | |||||||||||
Condensed Financial Statements, Captions | |||||||||||
Cash Dividends from Subsidiaries | 671.8 | 645.2 | 636.6 | ||||||||
Other Income | 52.8 | 116.3 | 56.9 | ||||||||
Total Revenue | 724.6 | 761.5 | 693.5 | ||||||||
Interest and Debt Expense | 137.5 | 132.4 | 120.9 | ||||||||
Other Expenses | 16.7 | 66.0 | 48.9 | ||||||||
Total Expenses | 154.2 | 198.4 | 169.8 | ||||||||
Income Before Income Tax | 570.4 | 563.1 | 523.7 | ||||||||
Income Tax Expense (Benefit) | (16.2) | (24.5) | (14.7) | ||||||||
Income of Parent Company | 586.6 | 587.6 | 538.4 | ||||||||
Equity in Undistibuted Earnings (Loss) of Subsidiaries | 280.5 | (185.5) | 308.6 | ||||||||
Net Income | 867.1 | 402.1 | 847.0 | ||||||||
Net Other Comprehensive Income (Loss) | (150.3) | (88.6) | (373.0) | ||||||||
Comprehensive Income | $ 716.8 | $ 313.5 | $ 474.0 |
Parent Company Cash Flow Statement (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Condensed Financial Statements, Captions | |||
Cash Provided by Operating Activities | $ 1,292.1 | $ 1,223.6 | $ 1,031.5 |
Cash Flows from Investing Activities | |||
Proceeds from Sales of Fixed Maturity Securities | 880.1 | 450.1 | 1,040.5 |
Proceeds from Maturities of Fixed Maturity Securities | 2,417.0 | 1,819.4 | 2,146.4 |
Proceeds from Sales and Maturities of Other Investments | 347.0 | 235.0 | 243.4 |
Purchase of Fixed Maturity Securities | (4,305.3) | (2,918.4) | (3,553.6) |
Purchase of Other Investments | (409.5) | (285.2) | (363.7) |
Net Sales (Purchases) of Short-term Investments | 170.6 | (69.3) | 551.3 |
Net Purchases of Property and Equipment | (100.2) | (114.5) | (105.5) |
Other, Net | 0.0 | 0.1 | 0.2 |
Net Cash Used by Investing Activities | (713.0) | (886.6) | (419.2) |
Cash Flows from Financing Activities | |||
Issuance of Long-term Debt | 271.4 | 347.2 | 0.0 |
Issuance of Common Stock | 6.4 | 12.3 | 11.4 |
Repurchase of Common Stock | (417.9) | (306.0) | (317.2) |
Dividends Paid to Stockholders | (174.2) | (159.4) | (146.5) |
Other, Net | (28.1) | (22.9) | (27.0) |
Cash Used by Financing Activities | (568.7) | (328.6) | (595.5) |
Net Increase in Cash and Bank Deposits | 10.4 | 8.4 | 16.8 |
Parent Company | |||
Condensed Financial Statements, Captions | |||
Cash Provided by Operating Activities | 672.2 | 683.0 | 612.5 |
Cash Flows from Investing Activities | |||
Proceeds from Sales of Fixed Maturity Securities | 7.8 | 25.0 | 0.0 |
Proceeds from Maturities of Fixed Maturity Securities | 112.2 | 76.1 | 38.5 |
Proceeds from Sales and Maturities of Other Investments | 26.4 | 31.9 | 9.4 |
Purchase of Fixed Maturity Securities | (233.7) | (118.9) | (139.8) |
Purchase of Other Investments | 0.0 | (19.0) | (1.0) |
Net Sales (Purchases) of Short-term Investments | 38.1 | (162.1) | 269.5 |
Cash Distributions to Subsidiaries | (231.0) | (316.1) | (225.1) |
Net Purchases of Property and Equipment | (78.9) | (102.5) | (78.8) |
Other, Net | 0.1 | (0.2) | (6.2) |
Net Cash Used by Investing Activities | (359.0) | (585.8) | (133.5) |
Cash Flows from Financing Activities | |||
Issuance of Long-term Debt | 271.4 | 347.2 | 0.0 |
Issuance of Common Stock | 6.4 | 12.3 | 11.4 |
Repurchase of Common Stock | (417.9) | (306.0) | (317.2) |
Dividends Paid to Stockholders | (174.2) | (159.4) | (146.5) |
Other, Net | 2.9 | 1.9 | (0.3) |
Cash Used by Financing Activities | (311.4) | (104.0) | (452.6) |
Net Increase in Cash and Bank Deposits | $ 1.8 | $ (6.8) | $ 26.4 |
Parent Company Debt Schedule (Detail) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Debt Instrument | ||||
Non-current Portion of Long-term Debt | $ 2,475.1 | $ 2,628.7 | ||
Current Maturities of Long-term Debt | 352.4 | 151.9 | ||
Long-term Debt | 2,827.5 | 2,780.6 | ||
Fair Value Hedge Adjustment, LT Debt | ||||
Debt Instrument | ||||
Non-current Portion of Long-term Debt | (2.7) | (0.2) | ||
Current Maturities of Long-term Debt | 2.4 | 0.0 | ||
Parent Company | ||||
Debt Instrument | ||||
Non-current Portion of Long-term Debt | 2,151.1 | 2,230.3 | ||
Current Maturities of Long-term Debt | 352.4 | 0.0 | ||
Long-term Debt | 2,503.5 | 2,230.3 | ||
Parent Company | Fair Value Hedge Adjustment, LT Debt | ||||
Debt Instrument | ||||
Non-current Portion of Long-term Debt | (2.7) | (0.2) | ||
Current Maturities of Long-term Debt | 2.4 | 0.0 | ||
Notes Issued in 1998 with 2018 Maturity Date | Senior Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 7.00% | |||
Year of Maturity | Dec. 31, 2018 | |||
Non-current Portion of Long-term Debt | 200.0 | 200.0 | ||
Notes Issued in 1998 with 2018 Maturity Date | Parent Company | Senior Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 7.00% | |||
Year of Maturity | Dec. 31, 2018 | |||
Non-current Portion of Long-term Debt | 200.0 | 200.0 | ||
Notes Issued in 1998 with 2028 Maturity Date | Senior Notes | ||||
Debt Instrument | ||||
Year of Maturity | Dec. 31, 2028 | |||
Non-current Portion of Long-term Debt | 365.8 | 365.8 | ||
Notes Issued in 1998 with 2028 Maturity Date | Parent Company | Senior Notes | ||||
Debt Instrument | ||||
Year of Maturity | Dec. 31, 2028 | |||
Non-current Portion of Long-term Debt | 365.8 | 365.8 | ||
Notes Issued in 1998 with 2028 Maturity Date | Minimum | Senior Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 6.75% | |||
Notes Issued in 1998 with 2028 Maturity Date | Minimum | Parent Company | Senior Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 6.75% | |||
Notes Issued in 1998 with 2028 Maturity Date | Maximum | Senior Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 7.25% | |||
Notes Issued in 1998 with 2028 Maturity Date | Maximum | Parent Company | Senior Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 7.25% | |||
Notes Issued in 2002 | Senior Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 7.375% | |||
Year of Maturity | Dec. 31, 2032 | |||
Non-current Portion of Long-term Debt | 39.5 | 39.5 | ||
Notes Issued in 2002 | Parent Company | Senior Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 7.375% | |||
Year of Maturity | Dec. 31, 2032 | |||
Non-current Portion of Long-term Debt | 39.5 | 39.5 | ||
Notes Issued in 2009 | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 7.125% | |||
Year of Maturity | Dec. 31, 2016 | |||
Current Maturities of Long-term Debt | 350.0 | 0.0 | ||
Notes Issued in 2009 | Senior Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 7.125% | |||
Year of Maturity | Dec. 31, 2016 | |||
Non-current Portion of Long-term Debt | 0.0 | 350.0 | ||
Notes Issued in 2009 | Parent Company | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 7.125% | |||
Year of Maturity | Dec. 31, 2016 | |||
Current Maturities of Long-term Debt | 350.0 | 0.0 | ||
Notes Issued in 2009 | Parent Company | Senior Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 7.125% | |||
Year of Maturity | Dec. 31, 2016 | |||
Non-current Portion of Long-term Debt | 0.0 | 350.0 | ||
Notes Issued in 2010 | Senior Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 5.625% | |||
Year of Maturity | Dec. 31, 2020 | |||
Non-current Portion of Long-term Debt | 399.8 | 399.7 | ||
Notes Issued in 2010 | Parent Company | Senior Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 5.625% | |||
Year of Maturity | Dec. 31, 2020 | |||
Non-current Portion of Long-term Debt | 399.8 | 399.7 | ||
Notes Issued in 2012 | Senior Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 5.75% | |||
Year of Maturity | Dec. 31, 2042 | |||
Non-current Portion of Long-term Debt | 248.7 | 248.7 | ||
Notes Issued in 2012 | Parent Company | Senior Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 5.75% | |||
Year of Maturity | Dec. 31, 2042 | |||
Non-current Portion of Long-term Debt | 248.7 | 248.7 | ||
Notes Issued in 2014 | Senior Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 4.00% | |||
Year of Maturity | Dec. 31, 2024 | |||
Non-current Portion of Long-term Debt | 349.5 | 349.5 | ||
Notes Issued in 2014 | Parent Company | Senior Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 4.00% | |||
Year of Maturity | Dec. 31, 2024 | |||
Non-current Portion of Long-term Debt | 349.5 | 349.5 | ||
Notes Issued in 2015 | Senior Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 3.875% | |||
Year of Maturity | Dec. 31, 2025 | |||
Non-current Portion of Long-term Debt | 273.2 | 0.0 | ||
Notes Issued in 2015 | Parent Company | Senior Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 3.875% | |||
Year of Maturity | Dec. 31, 2025 | |||
Non-current Portion of Long-term Debt | 273.2 | 0.0 | ||
Notes Issued 1990 to 1996 | Medium-term Notes | ||||
Debt Instrument | ||||
Debt Instrument, Maturity Date Range, Start | Dec. 31, 2023 | |||
Debt Instrument, Maturity Date Range, End | Dec. 31, 2028 | |||
Non-current Portion of Long-term Debt | 50.8 | 50.8 | ||
Notes Issued 1990 to 1996 | Parent Company | Medium-term Notes | ||||
Debt Instrument | ||||
Debt Instrument, Maturity Date Range, Start | Dec. 31, 2023 | |||
Debt Instrument, Maturity Date Range, End | Dec. 31, 2028 | |||
Non-current Portion of Long-term Debt | 50.8 | 50.8 | ||
Notes Issued 1990 to 1996 | Minimum | Medium-term Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 7.00% | |||
Notes Issued 1990 to 1996 | Minimum | Parent Company | Medium-term Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 7.00% | |||
Notes Issued 1990 to 1996 | Maximum | Medium-term Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 7.19% | |||
Notes Issued 1990 to 1996 | Maximum | Parent Company | Medium-term Notes | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 7.19% | |||
Notes Issued in 1998 with 2038 Maturity Date | Junior Subordinated Debt | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 7.405% | 7.405% | ||
Year of Maturity | Dec. 31, 2038 | |||
Non-current Portion of Long-term Debt | 226.5 | 226.5 | ||
Notes Issued in 1998 with 2038 Maturity Date | Parent Company | Junior Subordinated Debt | ||||
Debt Instrument | ||||
Stated Interest Rate of Debt | 7.405% | 7.405% | ||
Year of Maturity | Dec. 31, 2038 | |||
Non-current Portion of Long-term Debt | $ 226.5 | $ 226.5 |
Parent Company Notes - Additional Details (Detail) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 1998 |
Dec. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2012 |
|
Repayments of Principal in Next Twelve Months | $ 350.0 | |||||||
Repayments of Principal in 2018 | 200.0 | |||||||
Repayments of Principal in 2020 | 400.0 | |||||||
Repayments of Principal Thereafter | 1,881.6 | |||||||
Notional Amount of Derivatives | $ 1,687.4 | $ 1,477.4 | 1,470.3 | $ 1,432.8 | ||||
Interest Paid | $ 146.9 | 145.9 | 144.6 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 400.0 | |||||||
Line Of Credit Facility Maximum Borrowing Capacity If Requested | 600.0 | |||||||
Letters of Credit Outstanding | 2.1 | 2.1 | ||||||
Amount Outstanding on Line of Credit | 0.0 | 0.0 | ||||||
Parent Company | ||||||||
Repayments of Principal in Next Twelve Months | 350.0 | |||||||
Repayments of Principal in 2018 | 200.0 | |||||||
Repayments of Principal in 2020 | 400.0 | |||||||
Repayments of Principal Thereafter | 1,557.6 | |||||||
Interest Paid | $ 130.9 | 123.6 | $ 116.5 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 400.0 | |||||||
Line Of Credit Facility Maximum Borrowing Capacity If Requested | 600.0 | |||||||
Letters of Credit Outstanding | 2.1 | 2.1 | ||||||
Amount Outstanding on Line of Credit | 0.0 | 0.0 | ||||||
Subsidiaries | ||||||||
Stated Interest Rate of Debt | 6.85% | |||||||
Guarantor Obligations, Liquidation Proceeds, Monetary Amount | $ 400.0 | |||||||
Receive Fixed/Pay Variable | Swaps | ||||||||
Notional Amount of Derivatives | 600.0 | 600.0 | ||||||
Receive Fixed/Pay Variable | Swaps | Parent Company | ||||||||
Notional Amount of Derivatives | $ 600.0 | $ 600.0 | ||||||
Notes Issued in 1998 with 2038 Maturity Date | Junior Subordinated Debt | ||||||||
Proceeds from Issuance of Senior Long-term Debt | $ 300.0 | |||||||
Stated Interest Rate of Debt | 7.405% | 7.405% | ||||||
Liquidation value per capital security | $ 1,000 | |||||||
Notes Issued in 1998 with 2038 Maturity Date | Junior Subordinated Debt | Parent Company | ||||||||
Proceeds from Issuance of Senior Long-term Debt | $ 300.0 | |||||||
Stated Interest Rate of Debt | 7.405% | 7.405% | ||||||
Liquidation value per capital security | $ 1,000 |
Schedule III Supplementary Insurance Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||||||||
Supplementary Insurance Information, by Segment | |||||||||||||||
Deferred Acquisition Costs | $ 1,901.3 | $ 2,008.5 | $ 1,901.3 | ||||||||||||
Reserves for Future Policy Contract Benefits | 45,929.4 | 43,540.6 | 45,929.4 | ||||||||||||
Unearned Premiums | 396.6 | 384.2 | 396.6 | ||||||||||||
Policy and Contract Benefits | 1,529.3 | 1,484.6 | 1,529.3 | ||||||||||||
Premium Income | 8,082.4 | 7,797.2 | $ 7,624.7 | ||||||||||||
Net Investment Income | [1] | 2,481.2 | 2,492.2 | 2,506.9 | |||||||||||
Benefits and Change in Reserves for Future Benefits | 6,782.8 | [2] | 7,310.8 | [2] | 6,595.7 | ||||||||||
Amortization of Deferred Acquisition Costs | 482.3 | 440.8 | 418.9 | ||||||||||||
All Other Expenses | [3] | 2,227.9 | 2,230.9 | 2,134.0 | |||||||||||
Reserve Increase for Long-term Care | 698.2 | ||||||||||||||
Unclaimed Death Benefit Reserve Increase Before Taxes | 95.5 | ||||||||||||||
Group Life | |||||||||||||||
Supplementary Insurance Information, by Segment | |||||||||||||||
Unclaimed Death Benefit Reserve Increase Before Taxes | 49.1 | ||||||||||||||
Unum U.S. | |||||||||||||||
Supplementary Insurance Information, by Segment | |||||||||||||||
Deferred Acquisition Costs | 1,096.5 | 1,136.4 | 1,096.5 | ||||||||||||
Reserves for Future Policy Contract Benefits | 11,828.0 | 11,273.5 | 11,828.0 | ||||||||||||
Unearned Premiums | 46.6 | 45.5 | 46.6 | ||||||||||||
Policy and Contract Benefits | 953.7 | 940.8 | 953.7 | ||||||||||||
Premium Income | 4,960.0 | 4,659.7 | 4,517.1 | ||||||||||||
Net Investment Income | [1] | 865.3 | 878.9 | 919.4 | |||||||||||
Benefits and Change in Reserves for Future Benefits | 3,476.7 | [2] | 3,288.1 | [2] | 3,222.4 | ||||||||||
Amortization of Deferred Acquisition Costs | 272.3 | 248.1 | 230.0 | ||||||||||||
All Other Expenses | [3] | 1,345.5 | 1,279.6 | 1,254.0 | |||||||||||
Premiums Written | [4] | 3,353.8 | 3,144.1 | 3,068.0 | |||||||||||
Unclaimed Death Benefit Reserve Increase Before Taxes | 75.4 | ||||||||||||||
Unum U.S. | Group Life | |||||||||||||||
Supplementary Insurance Information, by Segment | |||||||||||||||
Waiver of Premium Benefit Reserve Increase (Decrease) Before Tax | (85.0) | ||||||||||||||
Unum U.K. | |||||||||||||||
Supplementary Insurance Information, by Segment | |||||||||||||||
Deferred Acquisition Costs | 30.4 | 27.1 | 30.4 | ||||||||||||
Reserves for Future Policy Contract Benefits | 2,596.7 | 2,377.5 | 2,596.7 | ||||||||||||
Unearned Premiums | 130.6 | 128.2 | 130.6 | ||||||||||||
Policy and Contract Benefits | 127.6 | 114.3 | 127.6 | ||||||||||||
Premium Income | 576.2 | 607.2 | 556.6 | ||||||||||||
Net Investment Income | [1] | 124.9 | 151.0 | 148.5 | |||||||||||
Benefits and Change in Reserves for Future Benefits | 394.8 | [2] | 431.0 | [2] | 413.3 | ||||||||||
Amortization of Deferred Acquisition Costs | 11.3 | 12.5 | 14.7 | ||||||||||||
All Other Expenses | [3] | 154.4 | 166.9 | 145.2 | |||||||||||
Premiums Written | [4] | 453.0 | 479.9 | 448.1 | |||||||||||
Colonial Life | |||||||||||||||
Supplementary Insurance Information, by Segment | |||||||||||||||
Deferred Acquisition Costs | 774.4 | 845.0 | 774.4 | ||||||||||||
Reserves for Future Policy Contract Benefits | 1,919.7 | 1,989.8 | 1,919.7 | ||||||||||||
Unearned Premiums | 30.8 | 32.0 | 30.8 | ||||||||||||
Policy and Contract Benefits | 191.4 | 191.2 | 191.4 | ||||||||||||
Premium Income | 1,338.6 | 1,273.7 | 1,232.2 | ||||||||||||
Net Investment Income | [1] | 145.4 | 145.5 | 144.1 | |||||||||||
Benefits and Change in Reserves for Future Benefits | 683.0 | [2] | 660.6 | [2] | 667.0 | ||||||||||
Amortization of Deferred Acquisition Costs | 198.7 | 180.2 | 174.2 | ||||||||||||
All Other Expenses | [3] | 293.3 | 279.5 | 271.8 | |||||||||||
Premiums Written | [4] | 1,088.3 | 1,042.7 | 1,011.8 | |||||||||||
Colonial Life | Colonial Voluntary Life | |||||||||||||||
Supplementary Insurance Information, by Segment | |||||||||||||||
Unclaimed Death Benefit Reserve Increase Before Taxes | 20.1 | ||||||||||||||
Closed Block | |||||||||||||||
Supplementary Insurance Information, by Segment | |||||||||||||||
Deferred Acquisition Costs | 0.0 | 0.0 | 0.0 | ||||||||||||
Reserves for Future Policy Contract Benefits | 29,585.0 | 27,899.8 | 29,585.0 | ||||||||||||
Unearned Premiums | 188.6 | 178.5 | 188.6 | ||||||||||||
Policy and Contract Benefits | $ 256.6 | 238.3 | 256.6 | ||||||||||||
Premium Income | 1,207.6 | 1,256.6 | 1,318.8 | ||||||||||||
Net Investment Income | [1] | 1,320.0 | 1,281.5 | 1,270.2 | |||||||||||
Benefits and Change in Reserves for Future Benefits | 2,228.3 | [2] | 2,931.1 | [2] | 2,293.0 | ||||||||||
Amortization of Deferred Acquisition Costs | 0.0 | 0.0 | 0.0 | ||||||||||||
All Other Expenses | [3] | 269.5 | 277.0 | 282.6 | |||||||||||
Premiums Written | [4] | 1,198.5 | 1,248.6 | 1,307.0 | |||||||||||
Closed Block | Long-term Care | |||||||||||||||
Supplementary Insurance Information, by Segment | |||||||||||||||
Reserve Increase for Long-term Care | 698.2 | ||||||||||||||
Corporate and Other Segment | |||||||||||||||
Supplementary Insurance Information, by Segment | |||||||||||||||
Premium Income | 0.0 | 0.0 | 0.0 | ||||||||||||
Net Investment Income | [1] | 25.6 | 35.3 | 24.7 | |||||||||||
Benefits and Change in Reserves for Future Benefits | 0.0 | [2] | 0.0 | [2] | 0.0 | ||||||||||
Amortization of Deferred Acquisition Costs | 0.0 | 0.0 | 0.0 | ||||||||||||
All Other Expenses | [3] | 165.2 | 227.9 | 180.4 | |||||||||||
Premiums Written | [4] | $ 0.0 | 0.0 | $ 0.0 | |||||||||||
Non-operating retirement related loss due to settlement | $ 64.4 | ||||||||||||||
|
Schedule IV Reinsurance (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Reinsurance Premiums for Insurance Companies, by Product Segment | |||||||||||
Direct Premiums, Life Insurance in Force | $ 827,515.2 | $ 790,952.1 | $ 827,515.2 | $ 790,952.1 | $ 781,495.9 | ||||||
Ceded Premiums, Life Insurance in Force | 24,062.6 | 24,416.7 | 24,062.6 | 24,416.7 | 25,904.7 | ||||||
Assumed Premiums, Life Insurance in Force | 993.5 | 999.7 | 993.5 | 999.7 | 1,026.2 | ||||||
Premiums, Net, Life Insurance in Force | $ 804,446.1 | $ 767,535.1 | $ 804,446.1 | $ 767,535.1 | $ 756,617.4 | ||||||
Life Insurance in Force Premiums, Percentage Assumed to Net | 0.10% | 0.10% | 0.10% | 0.10% | 0.10% | ||||||
Gross Amount | $ 8,151.9 | $ 7,899.3 | $ 7,777.3 | ||||||||
Reinsurance Ceded | 272.3 | 291.9 | 355.8 | ||||||||
Assumed Premiums Earned | 202.8 | 189.8 | 203.2 | ||||||||
Net Amount | $ 2,037.8 | $ 2,020.8 | $ 2,017.5 | $ 2,006.3 | $ 1,967.9 | $ 1,947.2 | $ 1,943.6 | $ 1,938.5 | $ 8,082.4 | $ 7,797.2 | $ 7,624.7 |
Percentage of Amount Assumed to Net | 2.50% | 2.40% | 2.70% | ||||||||
Life Insurance | |||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment | |||||||||||
Gross Amount | $ 2,150.1 | $ 2,056.4 | $ 2,018.7 | ||||||||
Reinsurance Ceded | 176.3 | 194.8 | 253.6 | ||||||||
Assumed Premiums Earned | 9.4 | 9.6 | 10.0 | ||||||||
Net Amount | $ 1,983.2 | $ 1,871.2 | $ 1,775.1 | ||||||||
Percentage of Amount Assumed to Net | 0.50% | 0.50% | 0.60% | ||||||||
Accident, Health, and Other Insurance | |||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment | |||||||||||
Gross Amount | $ 6,001.8 | $ 5,842.9 | $ 5,758.6 | ||||||||
Reinsurance Ceded | 96.0 | 97.1 | 102.2 | ||||||||
Assumed Premiums Earned | 193.4 | 180.2 | 193.2 | ||||||||
Net Amount | $ 6,099.2 | $ 5,926.0 | $ 5,849.6 | ||||||||
Percentage of Amount Assumed to Net | 3.20% | 3.00% | 3.30% |
Schedule V Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||
Real Estate reserve (deducted from other long-term investments) | ||||||||
Valuation and Qualifying Accounts Disclosure | ||||||||
Balance at Beginning of Period | $ 0.3 | $ 1.8 | $ 0.3 | |||||
Additions Charged to Costs and Expenses | 1.2 | 0.4 | 1.5 | |||||
Additions Charged to Other Accounts | [1] | 0.0 | 0.0 | 0.0 | ||||
Deductions | [2] | 0.3 | 1.9 | 0.0 | ||||
Balance at End of Period | 1.2 | 0.3 | 1.8 | |||||
Allowance for doubtful accounts (deducted from accounts and premiums receivable) | ||||||||
Valuation and Qualifying Accounts Disclosure | ||||||||
Balance at Beginning of Period | 6.4 | 5.6 | 6.2 | |||||
Additions Charged to Costs and Expenses | 1.7 | 1.4 | 0.7 | |||||
Additions Charged to Other Accounts | [1] | 0.0 | 0.3 | 0.0 | ||||
Deductions | [2] | 1.9 | 0.9 | 1.3 | ||||
Balance at End of Period | $ 6.2 | $ 6.4 | $ 5.6 | |||||
|
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