Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2016

Defined Benefit Plans and Other Postretirement Benefit Plans

Schedule of Changes in Projected Benefit Obligations and Fair Value of Plan Assets

The following table provides the changes in the benefit obligation and fair value of plan assets and the funded status of the plans.



	Pension Benefits
	U.S. Plans						U.K. Plan						OPEB
	2016			2015			2016			2015			2016			2015
	(in millions of dollars)
Change in Benefit Obligation
Benefit Obligation at Beginning of Year	$	1,808.2		$	1,892.6		$	203.8		$	226.9		$	160.4		$	173.9
Service Cost	7.0			3.8			—			—			—			—
Interest Cost	85.2			82.2			7.0			7.9			7.2			7.2
Plan Participant Contributions	—			—			—			—			4.0			4.6
Actuarial (Gain) Loss	123.6			(103.6		)	55.0			(14.7		)	(4.4		)	(9.1		)
Benefits and Expenses Paid	(68.7		)	(59.3		)	(4.5		)	(4.6		)	(15.6		)	(16.2		)
Plan Amendment	—			(7.5		)	—			—			(3.7		)	—
Change in Foreign Exchange Rates	—			—			(38.3		)	(11.7		)	—			—
Benefit Obligation at End of Year	$	1,955.3		$	1,808.2		$	223.0		$	203.8		$	147.9		$	160.4

Accumulated Benefit Obligation at December 31	$	1,955.3		$	1,808.2		$	213.4		$	194.8		N/A			N/A

Change in Fair Value of Plan Assets
Fair Value of Plan Assets at Beginning of Year	$	1,403.3		$	1,473.7		$	231.5		$	246.3		$	11.2		$	11.3
Actual Return on Plan Assets	112.3			(17.5		)	42.5			2.9			0.1			0.3
Employer Contributions	7.2			6.4			—			—			11.1			11.2
Plan Participant Contributions	—			—			—			—			4.0			4.6
Benefits and Expenses Paid	(68.7		)	(59.3		)	(4.5		)	(4.6		)	(15.6		)	(16.2		)
Change in Foreign Exchange Rates	—			—			(41.1		)	(13.1		)	—			—
Fair Value of Plan Assets at End of Year	$	1,454.1		$	1,403.3		$	228.4		$	231.5		$	10.8		$	11.2

Underfunded (Overfunded) Status	$	501.2		$	404.9		$	(5.4	)	$	(27.7	)	$	137.1		$	149.2

Schedule of Amounts Recognized in Balance Sheet

The amounts recognized in our consolidated balance sheets for our pension and OPEB plans at December 31, 2016 and 2015 are as follows.



	Pension Benefits
	U.S. Plans						U.K. Plan						OPEB
	2016			2015			2016			2015			2016		2015
	(in millions of dollars)
Current Liability	$	7.0		$	5.9		$	—		$	—		$	13.1	$	13.0
Noncurrent Liability	494.2			399.0			—			—			124.0		136.2
Noncurrent Asset	—			—			(5.4		)	(27.7		)	—		—
Underfunded (Overfunded) Status	$	501.2		$	404.9		$	(5.4	)	$	(27.7	)	$	137.1	$	149.2

Unrecognized Pension and Postretirement Benefit Costs
Net Actuarial Gain (Loss)	$	(702.1	)	$	(604.2	)	$	(44.0	)	$	(28.1	)	$	10.1	$	6.2
Prior Service Credit	7.2			7.5			—			—			3.9		0.4
	(694.9		)	(596.7		)	(44.0		)	(28.1		)	14.0		6.6
Income Tax	243.6			208.8			10.9			8.9			5.3		7.9
Total Included in Accumulated Other Comprehensive Income (Loss)	$	(451.3	)	$	(387.9	)	$	(33.1	)	$	(19.2	)	$	19.3	$	14.5

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, 2016 and 2015.



	Pension Benefits
	U.S. Plans						U.K. Plan						OPEB
	2016			2015			2016			2015			2016			2015
	(in millions of dollars)
Accumulated Other Comprehensive Income (Loss) at Beginning of Year	$	(387.9	)	$	(385.5	)	$	(19.2	)	$	(25.0	)	$	14.5		$	9.0
Net Actuarial Gain (Loss)
Amortization	16.2			11.6			0.1			0.3			—			—
All Other Changes	(114.1		)	(22.8		)	(16.0		)	7.0			3.9			8.8
Prior Service Credit (Cost)
Amortization	(0.3		)	—			—			—			(0.2		)	(0.3		)
Plan Amendment	—			7.5			—			—			3.7			—
Change in Income Tax	34.8			1.3			2.0			(1.5		)	(2.6		)	(3.0		)
Accumulated Other Comprehensive Income (Loss) at End of Year	$	(451.3	)	$	(387.9	)	$	(33.1	)	$	(19.2	)	$	19.3		$	14.5

Fair Values by Fair Value Hierarchy Input Level

Fair value measurements by input level for financial instruments carried at fair value are as follows:



	December 31, 2016
	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	$	454.2	$	928.2	$	—	$	1,382.4
States, Municipalities, and Political Subdivisions	—		2,068.5		89.5		2,158.0
Foreign Governments	—		914.7		—		914.7
Public Utilities	108.5		7,648.9		265.3		8,022.7
Mortgage/Asset-Backed Securities	—		2,230.4		—		2,230.4
All Other Corporate Bonds	3,507.1		24,500.4		1,459.7		29,467.2
Redeemable Preferred Stocks	—		18.7		23.2		41.9
Total Fixed Maturity Securities	4,069.8		38,309.8		1,837.7		44,217.3

Other Long-term Investments
Derivatives
Foreign Exchange Contracts	—		32.7		—		32.7
Equity Securities	—		—		1.2		1.2

Liabilities
Other Liabilities
Derivatives
Interest Rate Swaps	$	—	$	7.6	$	—	$	7.6
Foreign Exchange Contracts	—		44.8		—		44.8
Credit Default Swaps	—		0.4		—		0.4
Embedded Derivative in Modified Coinsurance Arrangement	—		—		46.7		46.7
Total Derivatives	—		52.8		46.7		99.5



	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

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:



	Year Ended December 31, 2016
				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	$	122.2		$	—		$	1.9		$	—	$	(0.5	)	$	—	$	(34.1	)	$	89.5
Foreign Governments	52.9			—			—			—		—			—		(52.9		)	—
Public Utilities	274.1			—			(0.8		)	—		(3.7		)	157.6		(161.9		)	265.3
All Other Corporate Bonds	1,408.2			1.4			6.9			115.9		(111.2		)	792.8		(754.3		)	1,459.7
Redeemable Preferred Stocks	23.8			—			(0.6		)	—		—			—		—			23.2
Total Fixed Maturity Securities	1,881.2			1.4			7.4			115.9		(115.4		)	950.4		(1,003.2		)	1,837.7

Equity Securities	1.4			—			0.1			—		(0.3		)	—		—			1.2
Embedded Derivative in Modified Coinsurance Arrangement	(87.6		)	40.9			—			—		—			—		—			(46.7		)

	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		)

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 fair value of assets or liabilities valued using significant unobservable inputs and still held at each year end were $40.9 million and $(37.7) million for the years ended December 31, 2016 and 2015, respectively. These amounts relate entirely to the change in fair value of an embedded derivative in a modified coinsurance arrangement and are reported as a component of realized investment gains and losses.

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:



	Pension Benefits
	U.S. Plans				U.K. Plan				OPEB
	2016		2015		2016		2015		2016		2015
Benefit Obligations
Discount Rate	4.40	%	4.80	%	2.70	%	3.80	%	4.20	%	4.70	%
Rate of Compensation Increase	N/A		N/A		3.80	%	3.60	%	N/A		N/A

Net Periodic Benefit Cost
Discount Rate	4.80	%	4.40	%	3.80	%	3.60	%	4.70	%	4.30	%
Expected Return on Plan Assets	7.50	%	7.50	%	4.90	%	5.20	%	5.75	%	5.75	%
Rate of Compensation Increase	N/A		N/A		3.60	%	3.60	%	N/A		N/A

Schedule of Net Benefit Costs

Net Periodic Benefit Cost

The following table provides the components of the net periodic benefit cost for the years ended December 31.



	Pension Benefits
	U.S. Plans									U.K. Plan									OPEB
	2016			2015			2014			2016			2015			2014			2016			2015			2014
	(in millions of dollars)
Service Cost	$	7.0		$	3.8		$	3.7		$	—		$	—		$	2.3		$	—		$	—		$	0.3
Interest Cost	85.2			82.2			89.9			7.0			7.9			9.1			7.2			7.2			7.9
Expected Return on Plan Assets	(102.8		)	(108.9		)	(117.8		)	(10.0		)	(12.4		)	(13.7		)	(0.6		)	(0.7		)	(0.7		)
Amortization of:
Net Actuarial Loss	16.2			11.6			5.2			0.1			0.3			0.4			—			—			—
Prior Service Credit	(0.3		)	—			—			—			—			—			(0.2		)	(0.3		)	(1.7		)
Plan Amendment	—			—			—			—			—			—			0.9			—			—
Settlement	—			—			64.4			—			—			—			—			—			—
Total Net Periodic Benefit Cost	$	5.3		$	(11.3	)	$	45.4		$	(2.9	)	$	(4.2	)	$	(1.9	)	$	7.3		$	6.2		$	5.8

Schedule of Expected Benefit Payments

The following table provides expected benefit payments, which reflect expected future service, as appropriate.



	Pension Benefits
	U.S. Plans		U.K. Plan		OPEB
	(in millions of dollars)
Year					Gross		Subsidy Payments		Net
2017	$	71.8	$	4.5	$	13.6	$	0.3	$	13.3
2018	74.4		4.8		13.2		0.2		13.0
2019	76.9		4.8		12.8		0.2		12.6
2020	80.6		5.1		12.3		0.2		12.1
2021	84.3		5.4		11.9		0.2		11.7
2022-2026	476.9		32.5		50.9		0.7		50.2

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 shown below. The carrying values of investment-related receivables and payables approximate fair value due to the short-term nature of the securities and are not included in the following chart. Investments valued using net asset value (NAV) as a practical expedient are not required to be categorized by input level, but these investments are included as follows to reconcile to total invested assets. Prior year amounts have been reclassified to conform to current year presentation.



	December 31, 2016
	Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		NAV as a Practical Expedient		Total
	(in millions of dollars)
Invested Assets
Equity Securities:
U.S. Large Cap	$	—	$	—	$	—	$	85.5	$	85.5
U.S. Small Cap	50.2		—		—		—		50.2
Global	—		—		—		259.7		259.7
International	—		—		—		26.3		26.3
Emerging Markets	—		—		—		49.6		49.6
Fixed Income Securities:
U.S. Government and Agencies	227.8		11.1		—		—		238.9
Corporate	—		303.6		—		—		303.6
State and Municipal Securities	—		2.0		—		—		2.0
Opportunistic Credits	—		—		—		181.8		181.8
Real Estate	—		—		—		88.9		88.9
Alternative Investments:
Private Equity Direct Investments	—		—		—		37.4		37.4
Private Equity Funds of Funds	—		—		—		32.0		32.0
Hedge Funds of Funds	—		—		—		72.1		72.1
Cash Equivalents	21.2		—		—		—		21.2
Total Invested Assets	$	299.2	$	316.7	$	—	$	833.3	$	1,449.2



	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)		NAV as a Practical Expedient		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	$	306.3	$	—	$	713.2	$	1,399.6

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 invested assets in our U.K. pension plan is shown below. Investments valued using NAV as a practical expedient are not required to be categorized by input level, but these investments are included as follows to reconcile to total invested assets. Prior year amounts have been reclassified to conform to current year presentation.



	December 31, 2016
	Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		NAV as a Practical Expedient		Total
	(in millions of dollars)
Plan Assets
Diversified Growth Assets	$	—	$	—	$	—	$	140.1	$	140.1
Fixed Interest and Index-linked Securities	79.9		—		—		7.5		87.4
Cash Equivalents	0.9		—		—		—		0.9
Total Plan Assets	$	80.8	$	—	$	—	$	147.6	$	228.4



	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)		NAV as a Practical Expedient		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