Schedule II Condensed Financial Information of Registrant (Tables)

12 Months Ended

Dec. 31, 2017

Debt consists of the following:



			December 31
			2017			2016
	Interest Rates	Maturities	(in millions of dollars)
Long-term Debt
Outstanding Principal
Senior Secured Notes issued 2007	Variable	2037	$	200.0		$	260.0
Senior Secured Notes acquired 2016	Variable	2038	—			3.5
Senior Notes issued 1998	7.000%	2018	—			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 2010	5.625%	2020	400.0			400.0
Senior Notes issued 2012 and 2016	5.750%	2042	500.0			500.0
Senior Notes issued 2014	4.000%	2024	350.0			350.0
Senior Notes issued 2015	3.875%	2025	275.0			275.0
Senior Notes issued 2016	3.000%	2021	350.0			350.0
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 Hedge Adjustment			(4.5		)	(3.1		)
Less:
Unamortized Net Premium			9.7			9.8
Unamortized Debt Issuance Costs			(24.4		)	(28.4		)
Total Long-term Debt			2,738.4			2,999.4

Short-term Debt
Outstanding Principal
Senior Notes issued 1998	7.000%	2018	200.0			—
Less Unamortized Debt Issuance Costs			(0.1		)	—
Total Short-term Debt			199.9			—

Total Debt			$	2,938.3		$	2,999.4

BALANCE SHEETS



	December 31
	2017			2016
	(in millions of dollars)
Assets
Fixed Maturity Securities - at fair value (amortized cost: $153.9; $215.1)	$	154.1		$	214.2
Other Long-term Investments	16.8			49.0
Short-term Investments	477.8			377.9
Investment in Subsidiaries	12,157.1			11,340.7
Deferred Income Tax	121.5			210.7
Other Assets	455.4			473.9
Total Assets	$	13,382.7		$	12,666.4

Liabilities and Stockholders' Equity

Liabilities
Short-term Debt	$	199.9		$	—
Long-term Debt	2,538.4			2,735.9
Pension and Postretirement Benefits	683.3			638.3
Other Liabilities	386.2			324.2
Total Liabilities	3,807.8			3,698.4

Stockholders' Equity
Common Stock	30.5			30.4
Additional Paid-in Capital	2,303.3			2,272.8
Accumulated Other Comprehensive Income (Loss)	127.5			(51.0		)
Retained Earnings	9,542.2			8,744.0
Treasury Stock	(2,428.6		)	(2,028.2		)
Total Stockholders' Equity	9,574.9			8,968.0

Total Liabilities and Stockholders' Equity	$	13,382.7		$	12,666.4

See notes to condensed financial information.

STATEMENTS OF INCOME



	Year Ended December 31
	2017		2016			2015
	(in millions of dollars)
Cash Dividends from Subsidiaries	$	830.2	$	676.5		$	671.8
Other Income	66.6		58.4			52.8
Total Revenue	896.8		734.9			724.6

Interest and Debt Expense	154.2		160.1			137.5
Other Expenses	37.1		32.3			16.7
Total Expenses	191.3		192.4			154.2

Income of Parent Company Before Income Tax	705.5		542.5			570.4
Income Tax Expense (Benefit)	115.3		(20.2		)	(16.2		)

Income of Parent Company	590.2		562.7			586.6
Equity in Undistributed Earnings of Subsidiaries	404.0		368.7			280.5

Net Income	994.2		931.4			867.1

Other Comprehensive Income (Loss), Net of Tax	178.5		(67.1		)	(150.3		)

Comprehensive Income	$	1,172.7	$	864.3		$	716.8

See notes to condensed financial information.

STATEMENTS OF CASH FLOWS



	Year Ended December 31
	2017			2016			2015
	(in millions of dollars)
Cash Provided by Operating Activities	$	740.6		$	685.4		$	672.2

Cash Flows from Investing Activities
Proceeds from Sales of Fixed Maturity Securities	—			2.6			7.8
Proceeds from Maturities of Fixed Maturity Securities	194.3			111.2			112.2
Proceeds from Sales and Maturities of Other Investments	35.2			0.4			26.4
Purchase of Fixed Maturity Securities	(121.2		)	(56.5		)	(233.7		)
Purchase of Other Investments	—			(23.3		)	—
Net Sales (Purchases) of Short-term Investments	(99.9		)	(89.8		)	38.1
Cash Distributions to Subsidiaries	(79.5		)	(143.6		)	(231.0		)
Net Purchases of Property and Equipment	(83.3		)	(55.5		)	(78.9		)
Acquisition of Business	—			(140.3		)	—
Other, Net	—			0.2			0.1
Cash Used by Investing Activities	(154.4		)	(394.6		)	(359.0		)

Cash Flows from Financing Activities
Issuance of Long-term Debt	—			609.1			271.4
Long-term Debt Repayment	—			(350.0		)	—
Issuance of Common Stock	10.8			8.5			6.4
Repurchase of Common Stock	(401.8		)	(405.2		)	(417.9		)
Dividends Paid to Stockholders	(196.0		)	(182.6		)	(174.2		)
Other, Net	0.2			(1.0		)	2.9
Cash Used by Financing Activities	(586.8		)	(321.2		)	(311.4		)

Increase (Decrease) in Cash	$	(0.6	)	$	(30.4	)	$	1.8

See notes to condensed financial information.

Debt consists of the following:



			December 31
			2017			2016
	Interest Rates	Maturities	(in millions of dollars)
Long-term Debt
Outstanding Principal
Senior Notes issued 1998	7.000%	2018	$	—		$	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 2010	5.625%	2020	400.0			400.0
Senior Notes issued 2012 and 2016	5.750%	2042	500.0			500.0
Senior Notes issued 2014	4.000%	2024	350.0			350.0
Senior Notes issued 2015	3.875%	2025	275.0			275.0
Senior Notes issued 2016	3.000%	2021	350.0			350.0
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 Hedge Adjustment			(4.5		)	(3.1		)
Less:
Unamortized Net Premium			9.7			9.8
Unamortized Debt Issuance Costs			(24.4		)	(28.4		)
Total Long-term Debt			2,538.4			2,735.9

Short-term Debt
Outstanding Principal
Senior Notes issued 1998	7.000%	2018	200.0			—
Less Unamortized Debt Issuance Costs			(0.1		)	—
Total Short-term Debt			199.9			—

Total Debt			$	2,738.3		$	2,735.9