x | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the quarterly period ended September 30, 2018 |
¨ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the transition period from ___________ to ___________ |
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) |
Large accelerated filer | x | Accelerated filer | ¨ | ||
Non-accelerated filer | ¨ | Smaller reporting company | ¨ | ||
Emerging growth company | ¨ | ||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ¨ | ||||
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 governmental programs. |
• | Unfavorable economic or business conditions, both domestic and foreign, that may result in decreases in sales, premiums, or persistency, as well as unfavorable claims activity. |
• | Changes in or interpretations of laws and regulations, including tax laws and regulations. |
• | 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 acquisition 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. |
• | Execution risk related to our technology needs. |
• | Increased competition from other insurers and financial services companies due to industry consolidation, new entrants to our markets, or other factors. |
• | 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 in the broad array of our products that deviates from our assumptions used in pricing, underwriting, and reserving. |
• | Changes in accounting standards, practices, or policies. |
• | 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. |
• | 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. |
September 30 | December 31 | ||||||
2018 | 2017 | ||||||
(in millions of dollars) | |||||||
(Unaudited) | |||||||
Assets | |||||||
Investments | |||||||
Fixed Maturity Securities - at fair value (amortized cost: $39,913.2; $39,780.5) | $ | 43,071.3 | $ | 45,457.8 | |||
Mortgage Loans | 2,222.0 | 2,213.2 | |||||
Policy Loans | 3,720.2 | 3,571.1 | |||||
Other Long-term Investments | 694.2 | 646.8 | |||||
Short-term Investments | 1,238.2 | 1,155.1 | |||||
Total Investments | 50,945.9 | 53,044.0 | |||||
Other Assets | |||||||
Cash and Bank Deposits | 214.2 | 77.4 | |||||
Accounts and Premiums Receivable | 1,693.0 | 1,665.7 | |||||
Reinsurance Recoverable | 4,684.0 | 4,879.2 | |||||
Accrued Investment Income | 683.0 | 690.1 | |||||
Deferred Acquisition Costs | 2,276.9 | 2,184.6 | |||||
Goodwill | 346.0 | 338.6 | |||||
Property and Equipment | 521.0 | 504.8 | |||||
Income Tax Receivable | 19.0 | — | |||||
Deferred Income Tax | 157.4 | — | |||||
Other Assets | 709.4 | 628.7 | |||||
Total Assets | $ | 62,249.8 | $ | 64,013.1 |
September 30 | December 31 | ||||||
2018 | 2017 | ||||||
(in millions of dollars) | |||||||
(Unaudited) | |||||||
Liabilities and Stockholders' Equity | |||||||
Liabilities | |||||||
Policy and Contract Benefits | $ | 1,674.1 | $ | 1,605.2 | |||
Reserves for Future Policy and Contract Benefits | 45,092.7 | 45,601.6 | |||||
Unearned Premiums | 428.0 | 373.1 | |||||
Other Policyholders’ Funds | 1,551.4 | 1,595.0 | |||||
Income Tax Payable | — | 2.9 | |||||
Deferred Income Tax | — | 199.0 | |||||
Short-term Debt | — | 199.9 | |||||
Long-term Debt | 2,983.5 | 2,738.4 | |||||
Payables for Collateral on Investments | 238.2 | 396.2 | |||||
Other Liabilities | 1,763.7 | 1,726.9 | |||||
Total Liabilities | 53,731.6 | 54,438.2 | |||||
Commitments and Contingent Liabilities - Note 11 | |||||||
Stockholders' Equity | |||||||
Common Stock, $0.10 par | |||||||
Authorized: 725,000,000 shares | |||||||
Issued: 305,069,982 and 304,448,032 shares | 30.5 | 30.5 | |||||
Additional Paid-in Capital | 2,314.3 | 2,303.3 | |||||
Accumulated Other Comprehensive Income (Loss) | (868.5 | ) | 127.5 | ||||
Retained Earnings | 9,670.8 | 9,542.2 | |||||
Treasury Stock - at cost: 86,347,280 and 81,900,950 shares | (2,628.9 | ) | (2,428.6 | ) | |||
Total Stockholders' Equity | 8,518.2 | 9,574.9 | |||||
Total Liabilities and Stockholders' Equity | $ | 62,249.8 | $ | 64,013.1 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in millions of dollars, except share data) | |||||||||||||||
As Adjusted | As Adjusted | ||||||||||||||
Revenue | |||||||||||||||
Premium Income | $ | 2,251.8 | $ | 2,153.6 | $ | 6,722.8 | $ | 6,438.7 | |||||||
Net Investment Income | 619.2 | 609.0 | 1,845.1 | 1,831.9 | |||||||||||
Realized Investment Gain (Loss) | |||||||||||||||
Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | — | — | (1.0 | ) | — | ||||||||||
Net Realized Investment Gain, Excluding Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | 6.7 | 9.8 | 2.9 | 28.9 | |||||||||||
Net Realized Investment Gain | 6.7 | 9.8 | 1.9 | 28.9 | |||||||||||
Other Income | 50.1 | 46.7 | 147.9 | 148.1 | |||||||||||
Total Revenue | 2,927.8 | 2,819.1 | 8,717.7 | 8,447.6 | |||||||||||
Benefits and Expenses | |||||||||||||||
Benefits and Change in Reserves for Future Benefits | 2,578.9 | 1,765.6 | 6,190.9 | 5,266.6 | |||||||||||
Commissions | 276.8 | 262.4 | 832.6 | 793.9 | |||||||||||
Interest and Debt Expense | 42.7 | 40.1 | 125.3 | 119.8 | |||||||||||
Deferral of Acquisition Costs | (166.8 | ) | (154.8 | ) | (501.8 | ) | (470.1 | ) | |||||||
Amortization of Deferred Acquisition Costs | 136.9 | 123.7 | 428.6 | 403.5 | |||||||||||
Compensation Expense | 224.2 | 223.8 | 666.1 | 650.6 | |||||||||||
Other Expenses | 212.9 | 191.5 | 657.9 | 624.6 | |||||||||||
Total Benefits and Expenses | 3,305.6 | 2,452.3 | 8,399.6 | 7,388.9 | |||||||||||
Income (Loss) Before Income Tax Expense (Benefit) | (377.8 | ) | 366.8 | 318.1 | 1,058.7 | ||||||||||
Income Tax Expense (Benefit) | |||||||||||||||
Current | 2.7 | 139.4 | 172.7 | 301.8 | |||||||||||
Deferred | (95.8 | ) | (24.9 | ) | (128.9 | ) | 29.6 | ||||||||
Total Income Tax Expense (Benefit) | (93.1 | ) | 114.5 | 43.8 | 331.4 | ||||||||||
Net Income (Loss) | $ | (284.7 | ) | $ | 252.3 | $ | 274.3 | $ | 727.3 | ||||||
Net Income (Loss) Per Common Share | |||||||||||||||
Basic | $ | (1.30 | ) | $ | 1.12 | $ | 1.24 | $ | 3.20 | ||||||
Assuming Dilution | $ | (1.30 | ) | $ | 1.12 | $ | 1.24 | $ | 3.19 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in millions of dollars) | |||||||||||||||
Net Income (Loss) | $ | (284.7 | ) | $ | 252.3 | $ | 274.3 | $ | 727.3 | ||||||
Other Comprehensive Income (Loss) | |||||||||||||||
Change in Net Unrealized Gain (Loss) on Securities Before Adjustment (net of tax expense (benefit) of $(80.6); $39.2; $(525.0); $334.7) | (305.0 | ) | 66.1 | (1,982.1 | ) | 616.3 | |||||||||
Change in Adjustment to Deferred Acquisition Costs and Reserves for Future Policy and Contract Benefits, Net of Reinsurance (net of tax expense (benefit) of $(69.8); $(31.8); $276.1; $(261.7)) | (260.2 | ) | (66.9 | ) | 1,051.1 | (499.5 | ) | ||||||||
Change in Net Gain on Hedges (net of tax benefit of $4.4; $7.4; $8.3; $19.7) | (16.8 | ) | (13.8 | ) | (32.3 | ) | (36.8 | ) | |||||||
Change in Foreign Currency Translation Adjustment (net of tax benefit of $-; $-; $0.3; $-) | (15.2 | ) | 31.8 | (29.5 | ) | 88.7 | |||||||||
Change in Unrecognized Pension and Postretirement Benefit Costs (net of tax expense of $1.3; $1.5; $4.0; $4.3) | 4.9 | 2.2 | 14.3 | 6.6 | |||||||||||
Total Other Comprehensive Income (Loss) | (592.3 | ) | 19.4 | (978.5 | ) | 175.3 | |||||||||
Comprehensive Income (Loss) | $ | (877.0 | ) | $ | 271.7 | $ | (704.2 | ) | $ | 902.6 |
Nine Months Ended September 30 | |||||||
2018 | 2017 | ||||||
(in millions of dollars) | |||||||
Common Stock | |||||||
Balance at Beginning of Year and End of Period | $ | 30.5 | $ | 30.4 | |||
Additional Paid-in Capital | |||||||
Balance at Beginning of Year | 2,303.3 | 2,272.8 | |||||
Common Stock Activity | 11.0 | 22.4 | |||||
Balance at End of Period | 2,314.3 | 2,295.2 | |||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Balance at Beginning of Year | 127.5 | (51.0 | ) | ||||
Adjustment to Adopt Accounting Standard Update - Note 2 | (17.5 | ) | — | ||||
Other Comprehensive Income (Loss) | (978.5 | ) | 175.3 | ||||
Balance at End of Period | (868.5 | ) | 124.3 | ||||
Retained Earnings | |||||||
Balance at Beginning of Year | 9,542.2 | 8,744.0 | |||||
Adjustment to Adopt Accounting Standard Update - Note 2 | 14.5 | — | |||||
Net Income | 274.3 | 727.3 | |||||
Dividends to Stockholders (per common share: $0.72; $0.63) | (160.2 | ) | (144.1 | ) | |||
Balance at End of Period | 9,670.8 | 9,327.2 | |||||
Treasury Stock | |||||||
Balance at Beginning of Year | (2,428.6 | ) | (2,028.2 | ) | |||
Purchases of Treasury Stock | (200.3 | ) | (300.3 | ) | |||
Balance at End of Period | (2,628.9 | ) | (2,328.5 | ) | |||
Total Stockholders' Equity at End of Period | $ | 8,518.2 | $ | 9,448.6 |
Nine Months Ended September 30 | |||||||
2018 | 2017 | ||||||
(in millions of dollars) | |||||||
As Adjusted | |||||||
Cash Flows from Operating Activities | |||||||
Net Income | $ | 274.3 | $ | 727.3 | |||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | |||||||
Change in Receivables | (90.6 | ) | (119.0 | ) | |||
Change in Deferred Acquisition Costs | (73.2 | ) | (66.6 | ) | |||
Change in Insurance Reserves and Liabilities | 1,101.6 | 348.1 | |||||
Change in Income Taxes | (106.9 | ) | 81.4 | ||||
Change in Other Accrued Liabilities | 25.0 | (6.6 | ) | ||||
Non-cash Components of Net Investment Income | (120.9 | ) | (145.7 | ) | |||
Net Realized Investment Gain | (1.9 | ) | (28.9 | ) | |||
Depreciation | 74.9 | 78.4 | |||||
Other, Net | 1.2 | 8.2 | |||||
Net Cash Provided by Operating Activities | 1,083.5 | 876.6 | |||||
Cash Flows from Investing Activities | |||||||
Proceeds from Sales of Fixed Maturity Securities | 456.2 | 303.2 | |||||
Proceeds from Maturities of Fixed Maturity Securities | 2,234.9 | 1,848.5 | |||||
Proceeds from Sales and Maturities of Other Investments | 350.6 | 161.7 | |||||
Purchases of Fixed Maturity Securities | (2,840.0 | ) | (2,063.4 | ) | |||
Purchases of Other Investments | (448.5 | ) | (313.5 | ) | |||
Net Purchases of Short-term Investments | (87.0 | ) | (252.6 | ) | |||
Net Decrease in Payables for Collateral on Investments | (158.0 | ) | (7.7 | ) | |||
Net Purchases of Property and Equipment | (95.6 | ) | (64.7 | ) | |||
Net Cash Used by Investing Activities | (587.4 | ) | (388.5 | ) | |||
Cash Flows from Financing Activities | |||||||
Short-term Debt Repayments | (200.0 | ) | — | ||||
Issuance of Long-term Debt | 290.7 | — | |||||
Long-term Debt Repayments | (45.0 | ) | (48.5 | ) | |||
Issuance of Common Stock | 3.6 | 9.5 | |||||
Repurchase of Common Stock | (205.8 | ) | (307.2 | ) | |||
Dividends Paid to Stockholders | (160.2 | ) | (144.1 | ) | |||
Other, Net | (42.6 | ) | (28.1 | ) | |||
Net Cash Used by Financing Activities | (359.3 | ) | (518.4 | ) | |||
Net Increase (Decrease) in Cash and Bank Deposits | 136.8 | (30.3 | ) | ||||
Cash and Bank Deposits at Beginning of Year | 77.4 | 100.4 | |||||
Cash and Bank Deposits at End of Period | $ | 214.2 | $ | 70.1 |
Accounting Standards Codification (ASC) | Description | Date of Adoption | Effect on Financial Statements | |||
ASC 230 "Statement of Cash Flows" | This update provided clarifying guidance intended to reduce the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The update addressed eight specific cash flow issues that relate to various types of transactions. The guidance is to be applied retrospectively. | January 1, 2018 | The adoption of this update resulted in the reclassification of certain cash inflows from investing activities to cash inflows from operating activities within our consolidated statements of cash flows. This reclassification related to cash distributions from equity method investees and the bifurcation of those distributions as either returns on investment or returns of investment. The adoption of this update had no effect on our financial position or results of operations. See the summary tables contained herein for the financial statement impacts of this retrospective adoption. | |||
ASC 606 "Revenue from Contracts with Customers" | These updates superseded virtually all existing guidance regarding the recognition of revenue from customers. Specifically excluded from the scope of these updates are insurance contracts, although our fee-based service products are included within the scope. Our fee-based service products, which are primarily sold in our Unum US segment, are reported in other income within our consolidated statements of operations and represent less than one percent of our total revenue. 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. Accordingly, we continue to recognize revenue for these fee-based service products as services are rendered. The guidance is to be applied retrospectively for all periods presented or retrospectively with a cumulative-effect adjustment at the date of adoption. | January 1, 2018 | The adoption of these updates did not have an impact on our financial position or results of operations and did not result in expanded disclosures due to the immaterial nature of our fee-based service products relative to our overall business. |
ASC | Description | Date of Adoption | Effect on Financial Statements | |||
ASC 715 "Compensation - Retirement Benefits" | This update required the service cost component of net periodic pension and postretirement benefit costs to be included as a component of compensation costs in an entity's statement of income. Other components of net periodic pension and postretirement benefit costs are required to be presented separately from the service cost along with a disclosure identifying the line items in which these costs are presented in the statement of income. The amendments in this update are to be applied retrospectively or prospectively depending on the specific requirement of the update. | January 1, 2018 | The adoption of this update resulted in the reclassification of service cost from the other expenses line item to the compensation expense line item on our consolidated statements of operations but had no effect on our financial position or results of operations. We elected to use the practical expedient for the retrospective application of this update. See the summary tables contained herein for the financial statement impacts of this retrospective adoption. | |||
ASC 740 "Income Taxes" | This update eliminated the exception that required the tax effect of intra-entity asset transfers other than inventory to be deferred until the transferred asset is sold to a third party or otherwise recovered through use. It required recognition of tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. The guidance is to be applied retrospectively. | January 1, 2018 | The adoption of this update did not have an impact on our financial position or results of operations. | |||
ASC 815 "Derivatives and Hedge Accounting" | This update provided targeted improvements to accounting for hedging activities for both nonfinancial and financial risk components, aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements, eases certain documentation and effectiveness assessment requirements, and enhances transparency through expanded disclosures. For cash flow and net investment hedges existing at the date of adoption, the guidance is to be applied using a modified retrospective approach through a cumulative-effect adjustment to accumulated other comprehensive income with a corresponding adjustment to retained earnings as of the beginning of the fiscal year the guidance is adopted. The amended presentation and disclosure guidance is required prospectively. Early adoption is permitted. | January 1, 2018 | We elected to early adopt this update. The adoption of this update did not have an impact on our financial position or results of operations; however, it expanded our disclosures. This update will also simplify hedge documentation requirements and expand available hedging strategies. |
ASC | Description | Date of Adoption | Effect on Financial Statements | |||
ASC 825 "Financial Instruments - Overall" | This update changed 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 clarified 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 included 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 using a modified retrospective approach through a cumulative-effect adjustment to accumulated other comprehensive income with a corresponding adjustment to retained earnings as of the beginning of the fiscal year the guidance is adopted. | January 1, 2018 | See the summary tables contained herein for the financial statement impacts of this modified retrospective adoption on our financial statement line items at January 1, 2018. |
For the Nine Months Ended September 30, 2017 | |||||||||||
Historical Accounting Method | As Adjusted | Effect of Change | |||||||||
(in millions of dollars) | |||||||||||
Adjustments due to ASC 230 | |||||||||||
Consolidated Statements of Cash Flow | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Other, Net | $ | (2.4 | ) | $ | 8.2 | $ | 10.6 | ||||
Cash Flows from Investing Activities | |||||||||||
Proceeds from Sales and Maturities of Other Investments | 172.3 | 161.7 | (10.6 | ) |
For the Three Months Ended September 30, 2017 | For the Nine Months Ended September 30, 2017 | ||||||||||||||||||||||
Historical Accounting Method | As Adjusted | Effect of Change | Historical Accounting Method | As Adjusted | Effect of Change | ||||||||||||||||||
(in millions of dollars) | (in millions of dollars) | ||||||||||||||||||||||
Adjustments due to ASC 715 | |||||||||||||||||||||||
Consolidated Statements of Operations | |||||||||||||||||||||||
Compensation Expense | $ | 221.8 | $ | 223.8 | $ | 2.0 | $ | 644.7 | $ | 650.6 | $ | 5.9 | |||||||||||
Other Expenses | 193.5 | 191.5 | (2.0 | ) | 630.5 | 624.6 | (5.9 | ) |
Balance at December 31, 2017 | Balance at January 1, 2018 | Effect of Change | |||||||||
(in millions of dollars) | |||||||||||
Adjustments due to ASC 825 | |||||||||||
Consolidated Balance Sheets | |||||||||||
Assets | |||||||||||
Investments | |||||||||||
Other Long-term Investments | $ | 646.8 | $ | 643.0 | $ | (3.8 | ) | ||||
Liabilities | |||||||||||
Deferred Income Tax | 199.0 | 198.2 | (0.8 | ) | |||||||
Stockholders' Equity | |||||||||||
Accumulated Other Comprehensive Income (Loss) | 127.5 | 110.0 | (17.5 | ) | |||||||
Retained Earnings | 9,542.2 | 9,556.7 | 14.5 |
ASC | Description | Date of Adoption | Effect on Financial Statements | |||
ASC 220 "Income Statement - Reporting Comprehensive Income" | This update allows entities to make an optional accounting policy election to reclassify the stranded tax effects arising as a result of the recognition of the enactment of the tax bill, H.R.1, An Act to Provide Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, more commonly known as the Tax Cuts and Jobs Act (TCJA) from accumulated other comprehensive income to retained earnings. Tax effects that are stranded in accumulated other comprehensive income for reasons other than the TCJA may not be reclassified. This update requires additional disclosures on whether an entity elects to reclassify the stranded tax effects and its policy for releasing tax effects from accumulated other comprehensive income. This guidance may be applied in the period of adoption or retrospectively to each period in which the effect of the change in federal income tax rate in the TCJA is recognized, with early adoption permitted. | January 1, 2019 | The adoption of this update will expand certain of our disclosures but will have no impact on our financial position or results of operations because we do not intend to make the optional accounting policy election to reclassify the stranded tax effects resulting from the TCJA from accumulated other comprehensive income to retained earnings. | |||
ASC 310 "Receivables - Nonrefundable Fees and Other Costs" | This update shortens the amortization period to the earliest call date for certain callable debt securities held at a premium. This update does not impact securities held at a discount. The guidance is to be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Early adoption is permitted. | January 1, 2019 | We have determined the population of our callable debt securities that are within the scope of this update and do not expect this update to have a material impact on our financial position or results of operations. | |||
ASC 718 "Compensation - Stock Compensation" | This update generally aligns the accounting guidance for share-based payments issued to non-employees with guidance for share-based payments issued to employees. Specifically, the update requires non-employee share-based payments to be measured using the grant date fair value of the equity instruments that an entity is obligated to issue when the good has been delivered or the service has been rendered rather than being remeasured through the performance completion date. Additionally, for non-employee share-based payments that contain performance conditions, the update will change the criteria regarding the recognition of compensation cost to when achievement of a performance condition is probable rather than upon actual achievement of the performance condition. The guidance is to be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption, with early adoption permitted. For purposes of determining the cumulative effect adjustment, the guidance shall be applied only to equity-classified non-employee share-based payments for which a measurement date has not been established and liability-classified non-employee share-based payments that have not been settled as of the date of adoption. | January 1, 2019 | The adoption of this update is not expected to have a material effect on our financial position or results of operations. |
ASC | Description | Date of Adoption | Effect on Financial Statements | |||
ASC 842 "Leases" | This update changes the accounting for leases, requiring lessees to report most leases on their balance sheets, regardless of whether the lease is classified as a finance lease or an operating lease. For lessees, the initial lease liability is equal to the present value of lease payments, and a corresponding right-of-use asset, adjusted for certain items, is also recorded. Expense recognition for lessees will remain similar to current accounting requirements for capital and operating leases. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The guidance is to be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings at either the beginning of the earliest comparative period presented or at the beginning of the period of adoption. The guidance also allows practical expedients related to adoption considerations for leases that commenced before the date of adoption. Early adoption is permitted. | January 1, 2019 | The adoption of this update will not have a material impact on our financial position or results of operations, however, it will result in the recognition of a lease liability and a corresponding right-of-use asset on our balance sheet related to our operating leases. We expect to adopt the guidance using a modified retrospective approach at the beginning of the period of adoption and intend to apply practical expedients to leases that commenced prior to the date of adoption. This guidance will also expand our disclosures. | |||
ASC 326 "Financial Instruments - Credit Losses" | This update amends the guidance on the impairment of financial instruments. The update adds an impairment model known as the current expected credit loss model that is based on expected losses rather than incurred losses and will generally result in earlier recognition of allowances for losses. The current expected credit loss model applies to financial instruments such as mortgage loans, fixed maturity securities classified as held-to-maturity, and certain receivables. The update also modifies the other-than-temporary impairment model used for available-for-sale fixed maturity securities such that credit losses are recognized as an allowance rather than as a reduction in the amortized cost of the security. The reversal of previously recognized credit losses on available-for-sale fixed maturity securities is allowed under specified circumstances. Additional disclosures will also be required, including information used to develop the allowance for losses. The guidance is to be applied to most instruments in scope using a modified retrospective approach at the beginning of the earliest comparative period presented with early adoption permitted. For available-for-sale fixed maturity securities, the update is applied prospectively. Other-than-temporary impairment losses recognized on available-for-sale fixed maturity securities prior to adoption of the update cannot be reversed. | January 1, 2020 | We have not yet determined the expected impact on our financial position or results of operations. |
ASC | Description | Date of Adoption | Effect on Financial Statements | |||
ASC 350 "Intangibles - Goodwill and Other" | This update eliminates the requirement to calculate the implied fair value of goodwill (the second step in the current two-step test) to measure a goodwill impairment charge. Instead, entities should perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the excess of the carrying amount over the fair value, with the loss not to exceed the total amount of goodwill allocated to that reporting unit. The guidance is to be applied prospectively, with early adoption permitted for goodwill impairment tests performed on testing dates after January 1, 2017. | January 1, 2020 | The adoption of this update is not expected to have a material effect on our financial position or results of operations. | |||
ASC 820 "Fair Value Measurement" | This update amends the fair value measurement guidance by removing or clarifying certain existing disclosure requirements, while also adding new disclosure requirements. Specifically, this update removes certain disclosures related to Level 1 and Level 2 transfers and also removes the discussion regarding valuation processes of Level 3 fair value measurements. The update modifies guidance related to investments in certain entities that calculate net asset value to explicitly require disclosure regarding timing of liquidation of the investee's assets and timing of redemption restrictions. The update adds disclosures around the changes in unrealized gains and losses in other comprehensive income for recurring Level 3 investments held at the end of the reporting period and adds disclosures regarding certain unobservable inputs on Level 3 fair value measurements. The guidance is to be applied retrospectively or prospectively depending on the specific requirement of the update. Entities are permitted to early adopt any removed or modified disclosures and may delay adoption of the additional disclosures until their effective date. | January 1, 2020 | We have not yet determined the expected impact on our disclosures. | |||
ASC 715 "Compensation - Retirement Benefits" | This update amends the defined benefit pension and other postretirement benefit guidance by removing or clarifying certain existing disclosures requirements, while also adding new disclosure requirements. Specifically, this update removes the requirement to disclose the effects of a one-percentage point change in the assumed healthcare cost trend and the requirement to disclose amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost of the next year. This update adds a requirement to describe the reasons for significant gains and losses related to changes in the benefit obligation for the period. The update also clarifies that the projected benefit obligation (PBO) and accumulated benefit obligation (ABO) and fair value of plan assets are to be disclosed for plans with PBOs or ABOs in excess of plan assets. The guidance is to be applied retrospectively and early adoption is permitted. | December 31, 2020 | We have not yet determined the expected impact on our disclosures. |
ASC | Description | Date of Adoption | Effect on Financial Statements | |||
ASC 944 "Financial Services - Insurance" | This update significantly amends the accounting and disclosure requirements for long-duration insurance contracts. These changes include a requirement to review, and if necessary, update cash flow assumptions used to measure the liability for future policy benefits for traditional and limited-payment contracts at least annually, with changes recognized in earnings. In addition, an entity will be required to update the discount rate assumption at each reporting date using a yield that is reflective of an upper-medium grade fixed-income instrument, with changes recognized in other comprehensive income. These changes result in the elimination of the provision for risk of adverse deviation and premium deficiency (or loss recognition) testing. The update also requires that an entity measure all market risk benefits associated with deposit contracts at fair value, with changes recognized in earnings except for the portion attributable to a change in the instrument-specific credit risk, which is to be recognized in other comprehensive income. This update also simplifies the amortization of deferred acquisition costs by requiring amortization on a constant level basis over the expected term of the related contracts. Deferred acquisition costs are required to be written off for unexpected contract terminations but are no longer subject to an impairment test. Significant additional disclosures will also be required, which include disaggregated rollforwards of certain liability balances and the disclosure of qualitative and quantitative information about expected cash flows, estimates, and assumptions. The application of this guidance will vary based upon the specific requirements of the update but will generally result in either a modified retrospective or full retrospective approach with changes applied as of the beginning of the earliest period presented. Early adoption is permitted. | January 1, 2021 | We have not yet determined the expected impact on our financial position or results of operations. |
• | Level 1 - the highest category of the fair value hierarchy classification wherein inputs are unadjusted and represent quoted prices in active markets for identical assets or liabilities at the measurement date. |
• | Level 2 - 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. |
• | Level 3 - 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. |
Level 2 | Level 3 | ||||
Instrument | Observable Inputs | Unobservable Inputs | |||
United States Government and Government Agencies and Authorities | |||||
Valuation Method | Principally the market approach | Not applicable | |||
Valuation Techniques / Inputs | Prices obtained from external pricing services | ||||
States, Municipalities, and Political Subdivisions | |||||
Valuation Method | Principally the market approach | Principally the market approach | |||
Valuation Techniques / 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 Method | Principally the market approach | Principally the market approach | |||
Valuation Techniques / 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 | ||||
Level 2 | Level 3 | ||||
Instrument | Observable Inputs | Unobservable Inputs | |||
Public Utilities | |||||
Valuation Method | Principally the market and income approaches | Principally the market and income approaches | |||
Valuation Techniques / 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 | ||||
Matrix pricing | Matrix pricing | ||||
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 Method | Principally the market and income approaches | Principally the market approach | |||
Valuation Techniques / Inputs | Prices obtained from external pricing services | Analysis of similar bonds, adjusted for comparability | |||
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 Method | Principally the market and income approaches | Principally the market and income approaches | |||
Valuation Techniques / 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 |
Level 2 | Level 3 | ||||
Instrument | Observable Inputs | Unobservable Inputs | |||
All Other Corporate Bonds - Continued | |||||
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 | ||||
Matrix pricing | Matrix pricing | ||||
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 Method | Principally the market approach | Principally the market approach | |||
Valuation Techniques / 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 Method | Principally the market approach | Principally the market and income approaches | |||
Valuation Techniques / Inputs | Prices obtained from external pricing services | Financial statement analysis | |||
Non-binding broker quotes | Non-binding broker quotes |
• | 66.1 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. |
• | 3.6 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. |
• | 9.8 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. |
Investment Category | Fair Value | Redemption Term / Redemption Notice | Unfunded Commitments | |||||||
(in millions of dollars) | (in millions of dollars) | |||||||||
Private Credit | (a) | $ | 162.5 | Not redeemable | $ | 71.8 | ||||
20.1 | Initial 2 year lock on each new investment / Quarterly after 2 year lock with 90 days notice | 8.8 | ||||||||
Total Private Credit | 182.6 | 80.6 | ||||||||
Private Equity | (b) | 126.5 | Not redeemable | 186.4 | ||||||
Real Assets | (c) | 127.4 | Not redeemable | 84.6 | ||||||
30.2 | Quarterly / 90 days notice | — | ||||||||
Total Real Assets | 157.6 | 84.6 | ||||||||
Total Partnerships | $ | 466.7 | $ | 351.6 |
(a) | Private Credit - The limited partnerships described in this category employ various investment strategies, generally providing direct lending or other forms of debt financing including first-lien, second-lien, mezzanine, and subordinated loans. The limited partnerships have credit exposure to corporates, physical assets, and/or financial assets within a variety of industries (including manufacturing, healthcare, energy, business services, technology, materials, and retail) in North America and, to a lesser extent, outside of North America. As of September 30, 2018, the estimated remaining life of the investments that do not allow for redemptions is approximately 24 percent in the next 3 years, 46 percent during the period from 3 to 5 years, 27 percent during the period from 5 to 10 years, and 3 percent after the period of 15 years. |
(b) | Private Equity - The limited partnerships described in this category employ various strategies generally investing in controlling or minority control equity positions directly in companies and/or assets across various industries (including manufacturing, healthcare, energy, business services, technology, materials, and retail), primarily in private markets within North America and, to a lesser extent, outside of North America. As of September 30, 2018, the estimated remaining life of the investments that do not allow for redemptions is approximately 26 percent in the next 3 years, 26 percent during the period from 3 to 5 years, 45 percent during the period from 5 to 10 years, 1 percent during the period from 10 to 15 years, and 2 percent after the period of 15 years. |
(c) | Real Assets - The limited partnerships described in this category employ various strategies, which include investing in the equity and/or debt financing of physical assets, including infrastructure (energy, power, water/wastewater, communications), transportation (including airports, ports, toll roads, aircraft, railcars) and real estate in North America, Europe, South America, and Asia. As of September 30, 2018, the estimated remaining life of the investments that do not allow for redemptions is approximately 2 percent in the next 3 years, 21 percent during period from 3 to 5 years, 74 percent during the period from 5 to 10 years, and 3 percent during the period from 10 to 15 years. |
September 30, 2018 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | NAV | Total | |||||||||||||||
(in millions of dollars) | |||||||||||||||||||
Assets | |||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||
United States Government and Government Agencies and Authorities | $ | 679.6 | $ | 1,099.9 | $ | — | $ | — | $ | 1,779.5 | |||||||||
States, Municipalities, and Political Subdivisions | — | 2,256.1 | 63.9 | — | 2,320.0 | ||||||||||||||
Foreign Governments | — | 766.8 | 31.6 | — | 798.4 | ||||||||||||||
Public Utilities | 333.7 | 6,933.8 | 122.4 | — | 7,389.9 | ||||||||||||||
Mortgage/Asset-Backed Securities | — | 1,626.5 | 0.5 | — | 1,627.0 | ||||||||||||||
All Other Corporate Bonds | 7,798.7 | 20,425.6 | 891.8 | — | 29,116.1 | ||||||||||||||
Redeemable Preferred Stocks | — | 18.9 | 21.5 | — | 40.4 | ||||||||||||||
Total Fixed Maturity Securities | 8,812.0 | 33,127.6 | 1,131.7 | — | 43,071.3 | ||||||||||||||
Other Long-term Investments | |||||||||||||||||||
Derivatives | |||||||||||||||||||
Foreign Exchange Contracts | — | 20.4 | — | — | 20.4 | ||||||||||||||
Credit Default Swaps | — | 0.5 | — | — | 0.5 | ||||||||||||||
Equity Securities | 14.9 | 12.6 | 1.1 | — | 28.6 | ||||||||||||||
Private Equity Partnerships | — | — | — | 466.7 | 466.7 | ||||||||||||||
Total Other Long-term Investments | 14.9 | 33.5 | 1.1 | 466.7 | 516.2 | ||||||||||||||
Total Financial Instrument Assets Carried at Fair Value | $ | 8,826.9 | $ | 33,161.1 | $ | 1,132.8 | $ | 466.7 | $ | 43,587.5 | |||||||||
Liabilities | |||||||||||||||||||
Other Liabilities | |||||||||||||||||||
Derivatives | |||||||||||||||||||
Interest Rate Swaps and Forwards | $ | — | $ | 7.3 | $ | — | $ | — | $ | 7.3 | |||||||||
Foreign Exchange Contracts | — | 39.2 | — | — | 39.2 | ||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | — | — | 13.8 | — | 13.8 | ||||||||||||||
Total Derivatives | — | 46.5 | 13.8 | — | 60.3 | ||||||||||||||
Total Financial Instrument Liabilities Carried at Fair Value | $ | — | $ | 46.5 | $ | 13.8 | $ | — | $ | 60.3 |
December 31, 2017 | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | NAV | Total | |||||||||||||||
(in millions of dollars) | |||||||||||||||||||
Assets | |||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||
United States Government and Government Agencies and Authorities | $ | 460.1 | $ | 1,022.4 | $ | — | $ | — | $ | 1,482.5 | |||||||||
States, Municipalities, and Political Subdivisions | — | 2,336.9 | — | — | 2,336.9 | ||||||||||||||
Foreign Governments | — | 863.9 | — | — | 863.9 | ||||||||||||||
Public Utilities | 154.2 | 7,874.6 | 207.7 | — | 8,236.5 | ||||||||||||||
Mortgage/Asset-Backed Securities | — | 1,973.6 | — | — | 1,973.6 | ||||||||||||||
All Other Corporate Bonds | 3,556.1 | 25,816.2 | 1,150.1 | — | 30,522.4 | ||||||||||||||
Redeemable Preferred Stocks | — | 19.2 | 22.8 | — | 42.0 | ||||||||||||||
Total Fixed Maturity Securities | 4,170.4 | 39,906.8 | 1,380.6 | — | 45,457.8 | ||||||||||||||
Other Long-term Investments | |||||||||||||||||||
Derivatives | |||||||||||||||||||
Foreign Exchange Contracts | — | 19.5 | — | — | 19.5 | ||||||||||||||
Equity Securities | 0.2 | 10.4 | 1.1 | — | 11.7 | ||||||||||||||
Private Equity Partnerships | — | — | — | 407.2 | 407.2 | ||||||||||||||
Total Other Long-term Investments | 0.2 | 29.9 | 1.1 | 407.2 | 438.4 | ||||||||||||||
Total Financial Instrument Assets Carried at Fair Value | $ | 4,170.6 | $ | 39,936.7 | $ | 1,381.7 | $ | 407.2 | $ | 45,896.2 | |||||||||
Liabilities | |||||||||||||||||||
Other Liabilities | |||||||||||||||||||
Derivatives | |||||||||||||||||||
Interest Rate Swaps | $ | — | $ | 5.1 | $ | — | $ | — | $ | 5.1 | |||||||||
Foreign Exchange Contracts | — | 46.9 | — | — | 46.9 | ||||||||||||||
Credit Default Swaps | — | 0.2 | — | — | 0.2 | ||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | — | — | 15.9 | — | 15.9 | ||||||||||||||
Total Derivatives | — | 52.2 | 15.9 | — | 68.1 | ||||||||||||||
Total Financial Instrument Liabilities Carried at Fair Value | $ | — | $ | 52.2 | $ | 15.9 | $ | — | $ | 68.1 |
Three Months Ended September 30 | |||||||||||||||
2018 | 2017 | ||||||||||||||
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 | $ | 225.5 | $ | 38.1 | $ | 751.9 | $ | — | |||||||
Public Utilities | 77.7 | 323.4 | 236.7 | 387.5 | |||||||||||
All Other Corporate Bonds | 2,650.2 | 2,519.1 | 3,022.8 | 2,944.7 | |||||||||||
Total Fixed Maturity Securities | $ | 2,953.4 | $ | 2,880.6 | $ | 4,011.4 | $ | 3,332.2 | |||||||
Nine Months Ended September 30 | |||||||||||||||
2018 | 2017 | ||||||||||||||
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 | $ | 233.4 | $ | — | $ | 465.8 | $ | — | |||||||
Public Utilities | 244.0 | 57.4 | 463.6 | 67.1 | |||||||||||
All Other Corporate Bonds | 4,710.3 | 1,200.1 | 4,966.7 | 1,249.9 | |||||||||||
Total Fixed Maturity Securities | $ | 5,187.7 | $ | 1,257.5 | $ | 5,896.1 | $ | 1,317.0 | |||||||
Equity Securities | $ | — | $ | 0.2 | $ | — | $ | — |
Three Months Ended September 30, 2018 | |||||||||||||||||||||||||||||||
Total Realized and Unrealized Investment Gains (Losses) Included in | Level 3 Transfers | ||||||||||||||||||||||||||||||
Fair Value Beginning of Period | Earnings | Other Comprehensive Income or Loss | Purchases | Sales | Into | Out of | Fair Value End of Period | ||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||
States, Municipalities, and Political Subdivisions | $ | 36.5 | $ | — | $ | (1.5 | ) | $ | — | $ | — | $ | 28.9 | $ | — | $ | 63.9 | ||||||||||||||
Foreign Governments | 31.5 | — | 0.1 | — | — | — | — | 31.6 | |||||||||||||||||||||||
Public Utilities | 169.2 | — | (1.2 | ) | — | — | 66.9 | (112.5 | ) | 122.4 | |||||||||||||||||||||
Mortgage/Asset-Backed Securities | 0.5 | — | — | — | — | — | — | 0.5 | |||||||||||||||||||||||
All Other Corporate Bonds | 816.3 | — | (6.9 | ) | — | (21.0 | ) | 358.8 | (255.4 | ) | 891.8 | ||||||||||||||||||||
Redeemable Preferred Stocks | 21.6 | — | (0.1 | ) | — | — | — | — | 21.5 | ||||||||||||||||||||||
Total Fixed Maturity Securities | 1,075.6 | — | (9.6 | ) | — | (21.0 | ) | 454.6 | (367.9 | ) | 1,131.7 | ||||||||||||||||||||
Equity Securities | 1.1 | — | — | — | — | — | — | 1.1 | |||||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | (19.9 | ) | 6.1 | — | — | — | — | — | (13.8 | ) | |||||||||||||||||||||
Three Months Ended September 30, 2017 | |||||||||||||||||||||||||||||||
Total Realized and Unrealized Investment Gains (Losses) Included in | Level 3 Transfers | ||||||||||||||||||||||||||||||
Fair Value Beginning of Period | Earnings | Other Comprehensive Income or Loss | Purchases | Sales | Into | Out of | Fair Value End of Period | ||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||
States, Municipalities, and Political Subdivisions | $ | 36.8 | $ | — | $ | (1.1 | ) | $ | — | $ | — | $ | 52.9 | $ | — | $ | 88.6 | ||||||||||||||
Public Utilities | 192.5 | — | — | — | — | 133.8 | (118.2 | ) | 208.1 | ||||||||||||||||||||||
All Other Corporate Bonds | 853.2 | — | 14.3 | 38.9 | (33.2 | ) | 390.0 | (169.9 | ) | 1,093.3 | |||||||||||||||||||||
Redeemable Preferred Stocks | 23.1 | — | (0.1 | ) | — | — | — | — | 23.0 | ||||||||||||||||||||||
Total Fixed Maturity Securities | 1,105.6 | — | 13.1 | 38.9 | (33.2 | ) | 576.7 | (288.1 | ) | 1,413.0 | |||||||||||||||||||||
Equity Securities | 1.2 | — | 0.1 | — | — | — | — | 1.3 | |||||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | (31.9 | ) | 6.7 | — | — | — | — | — | (25.2 | ) |
Nine Months Ended September 30, 2018 | |||||||||||||||||||||||||||||||
Total Realized and Unrealized Investment Gains (Losses) Included in | Level 3 Transfers | ||||||||||||||||||||||||||||||
Fair Value Beginning of Year | Earnings | Other Comprehensive Income or Loss | Purchases | Sales | Into | Out of | Fair Value End of Period | ||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||
States, Municipalities, and Political Subdivisions | $ | — | $ | — | $ | (1.6 | ) | $ | — | $ | (0.4 | ) | $ | 65.9 | $ | — | $ | 63.9 | |||||||||||||
Foreign Governments | — | — | (1.2 | ) | — | — | 32.8 | — | 31.6 | ||||||||||||||||||||||
Public Utilities | 207.7 | — | (6.7 | ) | — | — | 120.7 | (199.3 | ) | 122.4 | |||||||||||||||||||||
Mortgage/Asset-Backed Securities | — | — | — | — | — | 0.5 | — | 0.5 | |||||||||||||||||||||||
All Other Corporate Bonds | 1,150.1 | 5.8 | (49.5 | ) | 47.0 | (117.7 | ) | 471.0 | (614.9 | ) | 891.8 | ||||||||||||||||||||
Redeemable Preferred Stocks | 22.8 | — | (1.3 | ) | — | — | — | — | 21.5 | ||||||||||||||||||||||
Total Fixed Maturity Securities | 1,380.6 | 5.8 | (60.3 | ) | 47.0 | (118.1 | ) | 690.9 | (814.2 | ) | 1,131.7 | ||||||||||||||||||||
Equity Securities | 1.1 | — | — | — | — | — | — | 1.1 | |||||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | (15.9 | ) | 2.1 | — | — | — | — | — | (13.8 | ) | |||||||||||||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||||||||
Total Realized and Unrealized Investment Gains (Losses) Included in | Level 3 Transfers | ||||||||||||||||||||||||||||||
Fair Value Beginning of Year | Earnings | Other Comprehensive Income or Loss | Purchases | Sales | Into | Out of | Fair Value End of Period | ||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||
States, Municipalities, and Political Subdivisions | $ | 89.5 | $ | — | $ | (0.9 | ) | $ | — | $ | — | $ | — | $ | — | $ | 88.6 | ||||||||||||||
Public Utilities | 265.3 | — | 0.2 | 8.0 | (4.8 | ) | 78.0 | (138.6 | ) | 208.1 | |||||||||||||||||||||
All Other Corporate Bonds | 1,459.7 | (0.6 | ) | 25.1 | 88.9 | (131.8 | ) | 438.0 | (786.0 | ) | 1,093.3 | ||||||||||||||||||||
Redeemable Preferred Stocks | 23.2 | — | (0.2 | ) | — | — | — | — | 23.0 | ||||||||||||||||||||||
Total Fixed Maturity Securities | 1,837.7 | (0.6 | ) | 24.2 | 96.9 | (136.6 | ) | 516.0 | (924.6 | ) | 1,413.0 | ||||||||||||||||||||
Equity Securities | 1.2 | — | 0.1 | — | — | — | — | 1.3 | |||||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | (46.7 | ) | 21.5 | — | — | — | — | — | (25.2 | ) |
September 30, 2018 | |||||||||
Fair Value | Valuation Method | Unobservable Input | Range/Weighted Average | ||||||
(in millions of dollars) | |||||||||
Fixed Maturity Securities | |||||||||
All Other Corporate Bonds - Private | $ | 223.1 | Market Approach | Comparability Adjustment Lack of Marketability Volatility of Credit Market Convention | (a) (b) (c) (d) | 0.69% - 0.69% / 0.69% 0.25% - 0.25% / 0.25% 0.14% - 5.56% / 0.56% Priced at Par | |||
Equity Securities - Private | 1.1 | Market Approach | Market Convention | (d) | Priced at Cost or Owner's Equity | ||||
Embedded Derivative in Modified Coinsurance Arrangement | (13.8 | ) | Discounted Cash Flows | Projected Liability Cash Flows | (e) | Actuarial Assumptions |
December 31, 2017 | |||||||||
Fair Value | Valuation Method | Unobservable Input | Range/Weighted Average | ||||||
(in millions of dollars) | |||||||||
Fixed Maturity Securities | |||||||||
All Other Corporate Bonds - Private | $ | 244.4 | Market Approach | Comparability Adjustment Lack of Marketability Volatility of Credit Market Convention | (a) (b) (c) (d) | 0.20% - 0.20% / 0.20% 0.25% - 0.25% / 0.25% 0.12% - 6.25% / 0.50% Priced at Par | |||
Equity Securities - Private | 1.1 | Market Approach | Market Convention | (d) | Priced at Cost or Owner's Equity | ||||
Embedded Derivative in Modified Coinsurance Arrangement | (15.9 | ) | Discounted Cash Flows | Projected Liability Cash Flows | (e) | Actuarial Assumptions |
(a) | Represents basis point adjustments for changes in benchmark spreads associated with various industry sectors |
(b) | Represents basis point adjustments to apply a discount due to the illiquidity of an investment |
(c) | Represents basis point adjustments for credit-specific factors |
(d) | Represents a decision to price based on par value, cost, or owner's equity when limited data is available |
(e) | Represents various actuarial assumptions required to derive the liability cash flows including incidence, termination, and lapse rates |
September 30, 2018 | |||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Carrying Value | |||||||||||||||
(in millions of dollars) | |||||||||||||||||||
Assets | |||||||||||||||||||
Mortgage Loans | $ | — | $ | 2,214.0 | $ | — | $ | 2,214.0 | $ | 2,222.0 | |||||||||
Policy Loans | — | — | 3,809.8 | 3,809.8 | 3,720.2 | ||||||||||||||
Other Long-term Investments | |||||||||||||||||||
Miscellaneous Long-term Investments | — | 32.1 | 100.6 | 132.7 | 132.7 | ||||||||||||||
Total Financial Instrument Assets Not Carried at Fair Value | $ | — | $ | 2,246.1 | $ | 3,910.4 | $ | 6,156.5 | $ | 6,074.9 | |||||||||
Liabilities | |||||||||||||||||||
Long-term Debt | $ | 47.7 | $ | 3,070.2 | $ | — | $ | 3,117.9 | $ | 2,983.5 | |||||||||
Payables for Collateral on Investments | |||||||||||||||||||
Federal Home Loan Bank (FHLB) Funding Agreements | — | 219.5 | — | 219.5 | 219.5 | ||||||||||||||
Other Liabilities | |||||||||||||||||||
Unfunded Commitments | — | 3.7 | — | 3.7 | 3.7 | ||||||||||||||
Total Financial Instrument Liabilities Not Carried at Fair Value | $ | 47.7 | $ | 3,293.4 | $ | — | $ | 3,341.1 | $ | 3,206.7 | |||||||||
December 31, 2017 | |||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Carrying Value | |||||||||||||||
(in millions of dollars) | |||||||||||||||||||
Assets | |||||||||||||||||||
Mortgage Loans | $ | — | $ | 2,306.2 | $ | — | $ | 2,306.2 | $ | 2,213.2 | |||||||||
Policy Loans | — | — | 3,677.5 | 3,677.5 | 3,571.1 | ||||||||||||||
Other Long-term Investments | |||||||||||||||||||
Miscellaneous Long-term Investments | — | 34.1 | 128.2 | 162.3 | 162.3 | ||||||||||||||
Total Financial Instrument Assets Not Carried at Fair Value | $ | — | $ | 2,340.3 | $ | 3,805.7 | $ | 6,146.0 | $ | 5,946.6 | |||||||||
Liabilities | |||||||||||||||||||
Long-term Debt | $ | 1,171.8 | $ | 1,876.9 | $ | — | $ | 3,048.7 | $ | 2,738.4 | |||||||||
Payables for Collateral on Investments | |||||||||||||||||||
Federal Home Loan Bank (FHLB) Funding Agreements | — | 350.0 | — | 350.0 | 350.0 | ||||||||||||||
Other Liabilities | |||||||||||||||||||
Unfunded Commitments | — | 3.7 | — | 3.7 | 3.7 | ||||||||||||||
Total Financial Instrument Liabilities Not Carried at Fair Value | $ | 1,171.8 | $ | 2,230.6 | $ | — | $ | 3,402.4 | $ | 3,092.1 |
September 30, 2018 | |||||||||||||||
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | ||||||||||||
(in millions of dollars) | |||||||||||||||
United States Government and Government Agencies and Authorities | $ | 1,691.7 | $ | 113.4 | $ | 25.6 | $ | 1,779.5 | |||||||
States, Municipalities, and Political Subdivisions | 2,049.2 | 280.5 | 9.7 | 2,320.0 | |||||||||||
Foreign Governments | 644.1 | 156.0 | 1.7 | 798.4 | |||||||||||
Public Utilities | 6,592.2 | 851.1 | 53.4 | 7,389.9 | |||||||||||
Mortgage/Asset-Backed Securities | 1,591.0 | 57.1 | 21.1 | 1,627.0 | |||||||||||
All Other Corporate Bonds | 27,306.0 | 2,195.0 | 384.9 | 29,116.1 | |||||||||||
Redeemable Preferred Stocks | 39.0 | 1.6 | 0.2 | 40.4 | |||||||||||
Total Fixed Maturity Securities | $ | 39,913.2 | $ | 3,654.7 | $ | 496.6 | $ | 43,071.3 |
December 31, 2017 | |||||||||||||||
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | ||||||||||||
(in millions of dollars) | |||||||||||||||
United States Government and Government Agencies and Authorities | $ | 1,311.1 | $ | 176.1 | $ | 4.7 | $ | 1,482.5 | |||||||
States, Municipalities, and Political Subdivisions | 1,942.8 | 395.4 | 1.3 | 2,336.9 | |||||||||||
Foreign Governments | 673.0 | 191.3 | 0.4 | 863.9 | |||||||||||
Public Utilities | 6,952.7 | 1,296.4 | 12.6 | 8,236.5 | |||||||||||
Mortgage/Asset-Backed Securities | 1,873.2 | 105.1 | 4.7 | 1,973.6 | |||||||||||
All Other Corporate Bonds | 26,988.7 | 3,633.5 | 99.8 | 30,522.4 | |||||||||||
Redeemable Preferred Stocks | 39.0 | 3.0 | — | 42.0 | |||||||||||
Total Fixed Maturity Securities | $ | 39,780.5 | $ | 5,800.8 | $ | 123.5 | $ | 45,457.8 |
September 30, 2018 | |||||||||||||||
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 | $ | 390.6 | $ | 10.4 | $ | 181.3 | $ | 15.2 | |||||||
States, Municipalities, and Political Subdivisions | 359.3 | 7.5 | 34.1 | 2.2 | |||||||||||
Foreign Governments | 34.4 | 0.7 | 12.3 | 1.0 | |||||||||||
Public Utilities | 633.4 | 33.6 | 228.4 | 19.8 | |||||||||||
Mortgage/Asset-Backed Securities | 515.6 | 9.1 | 212.7 | 12.0 | |||||||||||
All Other Corporate Bonds | 7,839.8 | 282.6 | 1,164.0 | 102.3 | |||||||||||
Redeemable Preferred Stocks | 10.8 | 0.2 | — | — | |||||||||||
Total Fixed Maturity Securities | $ | 9,783.9 | $ | 344.1 | $ | 1,832.8 | $ | 152.5 |
December 31, 2017 | |||||||||||||||
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 | $ | 157.9 | $ | 3.0 | $ | 58.8 | $ | 1.8 | |||||||
States, Municipalities, and Political Subdivisions | 45.7 | 0.5 | 22.3 | 0.7 | |||||||||||
Foreign Governments | 13.2 | 0.4 | — | — | |||||||||||
Public Utilities | 213.2 | 7.9 | 133.5 | 4.7 | |||||||||||
Mortgage/Asset-Backed Securities | 252.5 | 1.4 | 144.7 | 3.3 | |||||||||||
All Other Corporate Bonds | 1,355.1 | 26.8 | 785.2 | 73.0 | |||||||||||
Total Fixed Maturity Securities | $ | 2,037.6 | $ | 40.0 | $ | 1,144.5 | $ | 83.5 |
September 30, 2018 | |||||||||||||||||||
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 | $ | 992.6 | $ | 13.5 | $ | 949.8 | $ | 5.4 | $ | 50.9 | |||||||||
Over 1 year through 5 years | 6,062.7 | 298.6 | 5,345.8 | 41.6 | 973.9 | ||||||||||||||
Over 5 years through 10 years | 12,558.1 | 826.6 | 7,993.7 | 185.4 | 5,205.6 | ||||||||||||||
Over 10 years | 18,708.8 | 2,458.9 | 16,266.6 | 243.1 | 4,658.0 | ||||||||||||||
38,322.2 | 3,597.6 | 30,555.9 | 475.5 | 10,888.4 | |||||||||||||||
Mortgage/Asset-Backed Securities | 1,591.0 | 57.1 | 898.7 | 21.1 | 728.3 | ||||||||||||||
Total Fixed Maturity Securities | $ | 39,913.2 | $ | 3,654.7 | $ | 31,454.6 | $ | 496.6 | $ | 11,616.7 |
December 31, 2017 | |||||||||||||||||||
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 | $ | 1,625.1 | $ | 30.9 | $ | 1,638.8 | $ | 3.1 | $ | 14.1 | |||||||||
Over 1 year through 5 years | 5,579.9 | 453.6 | 5,810.9 | 18.5 | 204.1 | ||||||||||||||
Over 5 years through 10 years | 12,091.1 | 1,169.8 | 11,916.5 | 53.2 | 1,291.2 | ||||||||||||||
Over 10 years | 18,611.2 | 4,041.4 | 21,333.1 | 44.0 | 1,275.5 | ||||||||||||||
37,907.3 | 5,695.7 | 40,699.3 | 118.8 | 2,784.9 | |||||||||||||||
Mortgage/Asset-Backed Securities | 1,873.2 | 105.1 | 1,576.4 | 4.7 | 397.2 | ||||||||||||||
Total Fixed Maturity Securities | $ | 39,780.5 | $ | 5,800.8 | $ | 42,275.7 | $ | 123.5 | $ | 3,182.1 |
Gross Unrealized Loss | ||||||||||||||
Fair Value | Gross Unrealized Gain | Amount | Percent of Total Gross Unrealized Loss | |||||||||||
(in millions of dollars) | ||||||||||||||
Investment-Grade | $ | 39,839.9 | $ | 3,577.7 | $ | 411.2 | 82.8 | % | ||||||
Below-Investment-Grade | 3,231.4 | 77.0 | 85.4 | 17.2 | ||||||||||
Total Fixed Maturity Securities | $ | 43,071.3 | $ | 3,654.7 | $ | 496.6 | 100.0 | % |
• | 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 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in millions of dollars) | |||||||||||||||
Income Tax Credits | $ | 10.4 | $ | 10.4 | $ | 31.1 | $ | 31.3 | |||||||
Amortization, net of tax | (7.1 | ) | (5.8 | ) | (21.1 | ) | (17.4 | ) | |||||||
Income Tax Benefit | $ | 3.3 | $ | 4.6 | $ | 10.0 | $ | 13.9 |
September 30, 2018 | December 31, 2017 | ||||||||||||
(in millions of dollars) | |||||||||||||
Carrying | Percent of | Carrying | Percent of | ||||||||||
Amount | Total | Amount | Total | ||||||||||
Property Type | |||||||||||||
Apartment | $ | 428.9 | 19.3 | % | $ | 360.0 | 16.3 | % | |||||
Industrial | 626.5 | 28.2 | 601.2 | 27.2 | |||||||||
Office | 587.8 | 26.5 | 692.3 | 31.3 | |||||||||
Retail | 533.9 | 24.0 | 527.6 | 23.8 | |||||||||
Other | 44.9 | 2.0 | 32.1 | 1.4 | |||||||||
Total | $ | 2,222.0 | 100.0 | % | $ | 2,213.2 | 100.0 | % |
Region | |||||||||||||
New England | $ | 50.3 | 2.3 | % | $ | 56.1 | 2.5 | % | |||||
Mid-Atlantic | 161.8 | 7.3 | 155.5 | 7.0 | |||||||||
East North Central | 343.9 | 15.5 | 282.0 | 12.8 | |||||||||
West North Central | 205.0 | 9.2 | 210.1 | 9.5 | |||||||||
South Atlantic | 478.7 | 21.5 | 494.4 | 22.3 | |||||||||
East South Central | 89.4 | 4.0 | 88.8 | 4.0 | |||||||||
West South Central | 213.3 | 9.6 | 247.4 | 11.2 | |||||||||
Mountain | 243.0 | 10.9 | 251.2 | 11.4 | |||||||||
Pacific | 436.6 | 19.7 | 427.7 | 19.3 | |||||||||
Total | $ | 2,222.0 | 100.0 | % | $ | 2,213.2 | 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 |
September 30, 2018 | December 31, 2017 | ||||||
(in millions of dollars) | |||||||
Internal Rating | |||||||
Aa | $ | 0.1 | $ | 0.4 | |||
A | 462.9 | 445.7 | |||||
Baa | 1,748.4 | 1,753.0 | |||||
Ba | 10.6 | 14.1 | |||||
Total | $ | 2,222.0 | $ | 2,213.2 |
Loan-to-Value Ratio | |||||||
<= 65% | $ | 1,104.4 | $ | 1,101.7 | |||
> 65% <= 75% | 1,072.2 | 1,041.6 | |||||
> 75% <= 85% | 24.8 | 49.3 | |||||
> 85% | 20.6 | 20.6 | |||||
Total | $ | 2,222.0 | $ | 2,213.2 |
September 30, 2018 | December 31, 2017 | |||||||
Overnight and Continuous | ||||||||
(in millions of dollars) | ||||||||
United States Government and Government Agencies and Authorities | $ | — | $ | 0.2 | ||||
Public Utilities | — | 0.5 | ||||||
All Other Corporate Bonds | 2.1 | 29.8 | ||||||
Total Borrowings | 2.1 | 30.5 | ||||||
Gross Amount of Recognized Liability for Securities Lending Transactions | 2.1 | 30.5 | ||||||
Amounts Related to Agreements Not Included in Offsetting Disclosure Contained Herein | $ | — | $ | — |
September 30, 2018 | December 31, 2017 | |||||||
(in millions of dollars) | ||||||||
Carrying Value of FHLB Common Stock | $ | 32.1 | $ | 34.1 | ||||
Advances from FHLB | 219.5 | 350.0 | ||||||
Carrying Value of Collateral Posted to FHLB | ||||||||
Fixed Maturity Securities | $ | 217.0 | $ | 213.3 | ||||
Commercial Mortgage Loans | 228.1 | 331.5 | ||||||
Total Carrying Value of Collateral Posted to FHLB | $ | 445.1 | $ | 544.8 |
September 30, 2018 | ||||||||||||||||||||||||
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 | $ | 20.9 | $ | — | $ | 20.9 | $ | (4.4 | ) | $ | (16.5 | ) | $ | — | ||||||||||
Securities Lending | 181.9 | — | 181.9 | (179.8 | ) | (2.1 | ) | — | ||||||||||||||||
Total | $ | 202.8 | $ | — | $ | 202.8 | $ | (184.2 | ) | $ | (18.6 | ) | $ | — | ||||||||||
Financial Liabilities: | ||||||||||||||||||||||||
Derivatives | $ | 46.5 | $ | — | $ | 46.5 | $ | (41.9 | ) | $ | — | $ | 4.6 | |||||||||||
Securities Lending | 2.1 | — | 2.1 | (2.1 | ) | — | — | |||||||||||||||||
Total | $ | 48.6 | $ | — | $ | 48.6 | $ | (44.0 | ) | $ | — | $ | 4.6 |
December 31, 2017 | ||||||||||||||||||||||||
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 | $ | 19.5 | $ | — | $ | 19.5 | $ | (4.2 | ) | $ | (15.3 | ) | $ | — | ||||||||||
Securities Lending | 159.2 | — | 159.2 | (128.7 | ) | (30.5 | ) | — | ||||||||||||||||
Total | $ | 178.7 | $ | — | $ | 178.7 | $ | (132.9 | ) | $ | (45.8 | ) | $ | — | ||||||||||
Financial Liabilities: | ||||||||||||||||||||||||
Derivatives | $ | 52.2 | $ | — | $ | 52.2 | $ | (42.9 | ) | $ | — | $ | 9.3 | |||||||||||
Securities Lending | 30.5 | — | 30.5 | (30.5 | ) | — | — | |||||||||||||||||
Total | $ | 82.7 | $ | — | $ | 82.7 | $ | (73.4 | ) | $ | — | $ | 9.3 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in millions of dollars) | |||||||||||||||
Fixed Maturity Securities | $ | 560.4 | $ | 564.8 | $ | 1,682.7 | $ | 1,700.5 | |||||||
Derivatives | 16.5 | 14.4 | 48.1 | 41.8 | |||||||||||
Mortgage Loans | 27.9 | 25.8 | 84.3 | 76.8 | |||||||||||
Policy Loans | 4.7 | 4.5 | 13.7 | 13.3 | |||||||||||
Other Long-term Investments | |||||||||||||||
Equity Securities1 | 1.7 | 0.4 | 2.0 | 1.0 | |||||||||||
Private Equity Partnerships2 | 10.5 | 3.7 | 28.8 | 17.3 | |||||||||||
Other | 1.4 | 2.5 | 5.0 | 7.8 | |||||||||||
Short-term Investments | 7.9 | 3.5 | 17.5 | 8.0 | |||||||||||
Gross Investment Income | 631.0 | 619.6 | 1,882.1 | 1,866.5 | |||||||||||
Less Investment Expenses | 8.4 | 7.1 | 26.8 | 24.0 | |||||||||||
Less Investment Income on Participation Fund Account Assets | 3.4 | 3.5 | 10.2 | 10.6 | |||||||||||
Net Investment Income | $ | 619.2 | $ | 609.0 | $ | 1,845.1 | $ | 1,831.9 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in millions of dollars) | |||||||||||||||
Fixed Maturity Securities | |||||||||||||||
Gross Gains on Sales | $ | 4.8 | $ | 4.3 | $ | 9.4 | $ | 8.6 | |||||||
Gross Losses on Sales | (3.8 | ) | (1.2 | ) | (8.3 | ) | (3.5 | ) | |||||||
Other-Than-Temporary Impairment Loss | — | — | (1.0 | ) | — | ||||||||||
Mortgage Loans and Other Invested Assets | |||||||||||||||
Gross Gains on Sales | 0.1 | 0.8 | 0.2 | 3.4 | |||||||||||
Gross Losses on Sales | — | — | — | (0.2 | ) | ||||||||||
Impairment Loss | (0.6 | ) | (0.9 | ) | (0.8 | ) | (0.9 | ) | |||||||
Embedded Derivative in Modified Coinsurance Arrangement | 6.1 | 6.7 | 2.1 | 21.5 | |||||||||||
All Other Derivatives | 0.2 | 0.2 | 0.9 | (0.3 | ) | ||||||||||
Foreign Currency Transactions | (0.1 | ) | (0.1 | ) | (0.6 | ) | 0.3 | ||||||||
Net Realized Investment Gain | $ | 6.7 | $ | 9.8 | $ | 1.9 | $ | 28.9 |
• | 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. |
• | 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 are used to hedge the currency risk of certain foreign currency-denominated fixed maturity securities owned for portfolio diversification. Under these swap agreements, 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. |
• | 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. These derivatives were effective hedges prior to novation to a new counterparty. In conjunction with the novation, these derivatives were de-designated as hedges. 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. |
• | Interest rate swap was used to effectively convert certain of our floating rate, long-term debt into fixed rate long-term debt. Under this swap agreement, we received a variable rate of interest and paid a fixed rate of interest. |
September 30, 2018 | December 31, 2017 | |||||||
(in millions of dollars) | ||||||||
Carrying Value of Collateral Received from Counterparties | ||||||||
Cash | $ | 16.6 | $ | 15.7 | ||||
Carrying Value of Collateral Posted to Counterparties | ||||||||
Fixed Maturity Securities | $ | 43.6 | $ | 46.4 |
Swaps | |||||||||||||||||||||||
Receive Variable/Pay Fixed | Receive Fixed/Pay Fixed | Receive Fixed/Pay Variable | Credit Default | Forwards | Total | ||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Balance at June 30, 2017 | $ | 102.0 | $ | 591.7 | $ | 250.0 | $ | 70.0 | $ | — | $ | 1,013.7 | |||||||||||
Additions | — | — | — | — | 24.7 | 24.7 | |||||||||||||||||
Terminations | 54.0 | 48.6 | — | — | 24.7 | 127.3 | |||||||||||||||||
Balance at September 30, 2017 | $ | 48.0 | $ | 543.1 | $ | 250.0 | $ | 70.0 | $ | — | $ | 911.1 | |||||||||||
Balance at December 31, 2016 | $ | 105.5 | $ | 616.5 | $ | 250.0 | $ | 70.0 | $ | 10.0 | $ | 1,052.0 | |||||||||||
Additions | — | — | — | — | 40.7 | 40.7 | |||||||||||||||||
Terminations | 57.5 | 73.4 | — | — | 50.7 | 181.6 | |||||||||||||||||
Balance at September 30, 2017 | $ | 48.0 | $ | 543.1 | $ | 250.0 | $ | 70.0 | $ | — | $ | 911.1 | |||||||||||
Balance at June 30, 2018 | $ | — | $ | 537.4 | $ | 250.0 | $ | — | $ | 20.6 | $ | 808.0 | |||||||||||
Additions | — | 31.9 | — | 11.2 | — | 43.1 | |||||||||||||||||
Terminations | — | 34.6 | — | — | 20.6 | 55.2 | |||||||||||||||||
Balance at September 30, 2018 | $ | — | $ | 534.7 | $ | 250.0 | $ | 11.2 | $ | — | $ | 795.9 | |||||||||||
Balance at December 31, 2017 | $ | 48.0 | $ | 536.5 | $ | 250.0 | $ | 70.0 | $ | — | $ | 904.5 | |||||||||||
Additions | — | 58.3 | — | 11.2 | 47.4 | 116.9 | |||||||||||||||||
Terminations | 48.0 | 60.1 | — | 70.0 | 47.4 | 225.5 | |||||||||||||||||
Balance at September 30, 2018 | $ | — | $ | 534.7 | $ | 250.0 | $ | 11.2 | $ | — | $ | 795.9 |
Carrying Amount of Hedged Assets (Liabilities) | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets (Liabilities) | ||||||||||||||
September 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | ||||||||||||
(in millions of dollars) | |||||||||||||||
Fixed maturity securities: | |||||||||||||||
Receive variable interest rate, pay fixed interest rate | $ | — | $ | 48.5 | $ | — | $ | 0.6 | |||||||
Receive fixed functional currency interest, pay fixed foreign currency interest | 23.3 | — | (1.7 | ) | — | ||||||||||
Long-term Debt | (242.1 | ) | (244.8 | ) | 7.3 | 4.5 |
September 30, 2018 | |||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
(in millions of dollars) | |||||||||||
Designated as Hedging Instruments | |||||||||||
Cash Flow Hedges | |||||||||||
Forwards | Other L-T Investments | $ | — | Other Liabilities | $ | — | |||||
Foreign Exchange Contracts | Other L-T Investments | 18.3 | Other Liabilities | 14.7 | |||||||
Total Cash Flow Hedges | 18.3 | 14.7 | |||||||||
Fair Value Hedges | |||||||||||
Interest Rate Swaps | Other L-T Investments | — | Other Liabilities | 7.3 | |||||||
Foreign Exchange Contracts | Other L-T Investments | 2.1 | Other Liabilities | 0.7 | |||||||
Total Fair Value Hedges | 2.1 | 8.0 | |||||||||
Total Designated as Hedging Instruments | $ | 20.4 | $ | 22.7 | |||||||
Not Designated as Hedging Instruments | |||||||||||
Credit Default Swaps | Other L-T Investments | $ | 0.5 | Other Liabilities | $ | — | |||||
Foreign Exchange Contracts | Other L-T Investments | — | Other Liabilities | 23.8 | |||||||
Embedded Derivative in Modified Coinsurance Arrangement | Other L-T Investments | — | Other Liabilities | 13.8 | |||||||
Total Not Designated as Hedging Instruments | $ | 0.5 | $ | 37.6 |
December 31, 2017 | |||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
(in millions of dollars) | |||||||||||
Designated as Hedging Instruments | |||||||||||
Cash Flow Hedges | |||||||||||
Foreign Exchange Contracts | Other L-T Investments | $ | 19.5 | Other Liabilities | $ | 19.4 | |||||
Total Cash Flow Hedges | 19.5 | 19.4 | |||||||||
Fair Value Hedges | |||||||||||
Interest Rate Swaps | Other L-T Investments | — | Other Liabilities | 5.1 | |||||||
Total Fair Value Hedges | — | 5.1 | |||||||||
Total Designated as Hedging Instruments | $ | 19.5 | $ | 24.5 | |||||||
Not Designated as Hedging Instruments | |||||||||||
Credit Default Swaps | Other Liabilities | $ | 0.2 | ||||||||
Foreign Exchange Contracts | Other Liabilities | 27.5 | |||||||||
Embedded Derivative in Modified Coinsurance Arrangement | Other Liabilities | 15.9 | |||||||||
Total Not Designated as Hedging Instruments | $ | 43.6 |
Three Months Ended September 30 | |||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||
Net Investment Income | Net Realized Investment Gain (Loss) | Interest and Debt Expense | Net Investment Income | Net Realized Investment Gain (Loss) | Interest and Debt Expense | ||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Total Income and Expense Presented in the Consolidated Statements of Operations of Which Hedged Items are Recorded | $ | 619.2 | $ | 6.7 | $ | 42.7 | $ | 609.0 | $ | 9.8 | $ | 40.1 | |||||||||||
Gain (Loss) on Cash Flow Hedging Relationships | |||||||||||||||||||||||
Interest Rate Swaps: | |||||||||||||||||||||||
Hedged items | 75.8 | — | 8.5 | 79.7 | — | 11.4 | |||||||||||||||||
Derivatives Designated as Hedging Instruments | 16.7 | — | 0.6 | 15.6 | — | 0.5 | |||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||||
Hedged items | 4.6 | 0.4 | — | 6.5 | 5.2 | — | |||||||||||||||||
Derivatives Designated as Hedging Instruments | (0.3 | ) | (0.4 | ) | — | (0.5 | ) | (5.2 | ) | — | |||||||||||||
Gain (Loss) on Fair Value Hedging Relationships | |||||||||||||||||||||||
Interest Rate Swaps: | |||||||||||||||||||||||
Hedged items | — | — | 3.6 | 1.2 | (0.5 | ) | 3.6 | ||||||||||||||||
Derivatives Designated as Hedging Instruments | — | — | 0.6 | (0.8 | ) | 0.5 | (0.1 | ) | |||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||||
Hedged items | 0.1 | (0.3 | ) | — | — | — | — | ||||||||||||||||
Derivatives Designated as Hedging Instruments | 0.1 | 0.3 | — | — | — | — |
Nine Months Ended September 30 | |||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||
Net Investment Income | Net Realized Investment Gain (Loss) | Interest and Debt Expense | Net Investment Income | Net Realized Investment Gain (Loss) | Interest and Debt Expense | ||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Total Income and Expense Presented in the Consolidated Statements of Operations of Which Hedged Items are Recorded | $ | 1,845.1 | $ | 1.9 | $ | 125.3 | $ | 1,831.9 | $ | 28.9 | $ | 119.8 | |||||||||||
Gain (Loss) on Cash Flow Hedging Relationships | |||||||||||||||||||||||
Interest Rate Swaps: | |||||||||||||||||||||||
Hedged items | 230.3 | 0.1 | 31.3 | 242.6 | 0.2 | 34.2 | |||||||||||||||||
Derivatives Designated as Hedging Instruments | 49.1 | (0.3 | ) | 1.7 | 45.3 | — | 1.6 | ||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||||
Hedged items | 14.3 | 1.3 | — | 17.1 | 6.7 | — | |||||||||||||||||
Derivatives Designated as Hedging Instruments | (0.8 | ) | (1.3 | ) | — | (0.9 | ) | (6.7 | ) | — | |||||||||||||
Gain (Loss) on Fair Value Hedging Relationships | |||||||||||||||||||||||
Interest Rate Swaps: | |||||||||||||||||||||||
Hedged items | 1.0 | 2.2 | 10.8 | 4.1 | (3.1 | ) | 10.8 | ||||||||||||||||
Derivatives Designated as Hedging Instruments | (0.5 | ) | (2.2 | ) | 1.2 | (2.8 | ) | 3.1 | (0.6 | ) | |||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||||
Hedged items | 0.5 | (1.7 | ) | — | — | — | — | ||||||||||||||||
Derivatives Designated as Hedging Instruments | 0.2 | 1.7 | — | — | — | — |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(in millions of dollars) | ||||||||||||||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives | ||||||||||||||||
Interest Rate Swaps and Forwards | $ | — | $ | (0.1 | ) | $ | (0.1 | ) | $ | (0.1 | ) | |||||
Foreign Exchange Contracts | (10.1 | ) | (12.0 | ) | 0.6 | (21.2 | ) | |||||||||
Total | $ | (10.1 | ) | $ | (12.1 | ) | $ | 0.5 | $ | (21.3 | ) |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(in millions of dollars) | ||||||||||||||||
Net Realized Investment Gain (Loss) | ||||||||||||||||
Credit Default Swaps | $ | (0.3 | ) | $ | 0.1 | $ | (0.3 | ) | $ | (0.3 | ) | |||||
Interest Rate Swaps | — | — | (0.3 | ) | (0.1 | ) | ||||||||||
Foreign Exchange Contracts | 0.5 | 0.1 | 1.5 | 0.1 | ||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | 6.1 | 6.7 | 2.1 | 21.5 | ||||||||||||
Total | $ | 6.3 | $ | 6.9 | $ | 3.0 | $ | 21.2 |
Net Unrealized Gain (Loss) on Securities | Net Gain on Hedges | Foreign Currency Translation Adjustment | Unrecognized Pension and Postretirement Benefit Costs | Total | |||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||
Balance at June 30, 2018 | $ | 224.5 | $ | 266.8 | $ | (268.8 | ) | $ | (498.7 | ) | $ | (276.2 | ) | ||||||||
Other Comprehensive Income (Loss) Before Reclassifications | (564.3 | ) | (4.8 | ) | (15.2 | ) | 0.5 | (583.8 | ) | ||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | (0.9 | ) | (12.0 | ) | — | 4.4 | (8.5 | ) | |||||||||||||
Net Other Comprehensive Income (Loss) | (565.2 | ) | (16.8 | ) | (15.2 | ) | 4.9 | (592.3 | ) | ||||||||||||
Balance at September 30, 2018 | $ | (340.7 | ) | $ | 250.0 | $ | (284.0 | ) | $ | (493.8 | ) | $ | (868.5 | ) | |||||||
Balance at June 30, 2017 | $ | 558.2 | $ | 304.5 | $ | (297.1 | ) | $ | (460.7 | ) | $ | 104.9 | |||||||||
Other Comprehensive Income (Loss) Before Reclassifications | 4.4 | (7.9 | ) | 31.8 | (1.0 | ) | 27.3 | ||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | (5.2 | ) | (5.9 | ) | — | 3.2 | (7.9 | ) | |||||||||||||
Net Other Comprehensive Income (Loss) | (0.8 | ) | (13.8 | ) | 31.8 | 2.2 | 19.4 | ||||||||||||||
Balance at September 30, 2017 | $ | 557.4 | $ | 290.7 | $ | (265.3 | ) | $ | (458.5 | ) | $ | 124.3 | |||||||||
Balance at December 31, 2017 | $ | 607.8 | $ | 282.3 | $ | (254.5 | ) | $ | (508.1 | ) | $ | 127.5 | |||||||||
Adjustment to Adopt Accounting Standard Update - Note 2 | (17.5 | ) | — | — | — | (17.5 | ) | ||||||||||||||
Other Comprehensive Income (Loss) Before Reclassifications | (930.8 | ) | 2.9 | (29.5 | ) | 1.3 | (956.1 | ) | |||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | (0.2 | ) | (35.2 | ) | — | 13.0 | (22.4 | ) | |||||||||||||
Net Other Comprehensive Income (Loss) | (931.0 | ) | (32.3 | ) | (29.5 | ) | 14.3 | (978.5 | ) | ||||||||||||
Balance at September 30, 2018 | $ | (340.7 | ) | $ | 250.0 | $ | (284.0 | ) | $ | (493.8 | ) | $ | (868.5 | ) | |||||||
Balance at December 31, 2016 | $ | 440.6 | $ | 327.5 | $ | (354.0 | ) | $ | (465.1 | ) | $ | (51.0 | ) | ||||||||
Other Comprehensive Income (Loss) Before Reclassifications | 125.7 | (14.0 | ) | 88.7 | (3.0 | ) | 197.4 | ||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | (8.9 | ) | (22.8 | ) | — | 9.6 | (22.1 | ) | |||||||||||||
Net Other Comprehensive Income (Loss) | 116.8 | (36.8 | ) | 88.7 | 6.6 | 175.3 | |||||||||||||||
Balance at September 30, 2017 | $ | 557.4 | $ | 290.7 | $ | (265.3 | ) | $ | (458.5 | ) | $ | 124.3 |
Change at September 30, 2018 | ||||||||||||||||||||
September 30 | June 30 | January 1 | Three Months | Nine Months | ||||||||||||||||
2018 | 2018 | 2018 | Ended | Ended | ||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||
Fixed Maturity Securities | $ | 3,158.1 | $ | 3,543.7 | $ | 5,665.2 | $ | (385.6 | ) | $ | (2,507.1 | ) | ||||||||
Deferred Acquisition Costs | (31.5 | ) | (34.1 | ) | (51.4 | ) | 2.6 | 19.9 | ||||||||||||
Reserves for Future Policy and Contract Benefits | (3,684.9 | ) | (3,367.1 | ) | (5,094.7 | ) | (317.8 | ) | 1,409.8 | |||||||||||
Reinsurance Recoverable | 273.3 | 288.1 | 375.8 | (14.8 | ) | (102.5 | ) | |||||||||||||
Income Tax | (55.7 | ) | (206.1 | ) | (304.6 | ) | 150.4 | 248.9 | ||||||||||||
Total | $ | (340.7 | ) | $ | 224.5 | $ | 590.3 | $ | (565.2 | ) | $ | (931.0 | ) |
Change at September 30, 2017 | ||||||||||||||||||||
September 30 | June 30 | December 31 | Three Months | Nine Months | ||||||||||||||||
2017 | 2017 | 2016 | Ended | Ended | ||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||
Fixed Maturity Securities | $ | 5,587.7 | $ | 5,492.2 | $ | 4,664.6 | $ | 95.5 | $ | 923.1 | ||||||||||
Other Investments | 5.2 | (4.6 | ) | (22.7 | ) | 9.8 | 27.9 | |||||||||||||
Deferred Acquisition Costs | (46.2 | ) | (45.8 | ) | (38.9 | ) | (0.4 | ) | (7.3 | ) | ||||||||||
Reserves for Future Policy and Contract Benefits | (5,057.4 | ) | (4,948.2 | ) | (4,253.2 | ) | (109.2 | ) | (804.2 | ) | ||||||||||
Reinsurance Recoverable | 371.6 | 360.7 | 321.3 | 10.9 | 50.3 | |||||||||||||||
Income Tax | (303.5 | ) | (296.1 | ) | (230.5 | ) | (7.4 | ) | (73.0 | ) | ||||||||||
Total | $ | 557.4 | $ | 558.2 | $ | 440.6 | $ | (0.8 | ) | $ | 116.8 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||
(in millions of dollars) | |||||||||||||||||
Net Unrealized Gain (Loss) on Securities | |||||||||||||||||
Net Realized Investment Gain (Loss) | |||||||||||||||||
Net Gain on Sales of Securities and Other Invested Assets | $ | 1.2 | $ | 8.2 | $ | 1.3 | $ | 13.8 | |||||||||
Other-Than-Temporary Impairment Loss | — | — | (1.0 | ) | — | ||||||||||||
1.2 | 8.2 | 0.3 | 13.8 | ||||||||||||||
Income Tax Expense | 0.3 | 3.0 | 0.1 | 4.9 | |||||||||||||
Total | $ | 0.9 | $ | 5.2 | $ | 0.2 | $ | 8.9 | |||||||||
Net Gain on Hedges | |||||||||||||||||
Net Investment Income | |||||||||||||||||
Gain on Interest Rate Swaps and Forwards | $ | 16.4 | $ | 15.1 | $ | 48.1 | $ | 44.2 | |||||||||
Loss on Foreign Exchange Contracts | (0.3 | ) | (0.4 | ) | (0.9 | ) | (0.9 | ) | |||||||||
Net Realized Investment Gain (Loss) | |||||||||||||||||
Gain on Interest Rate Swaps | — | — | 0.2 | — | |||||||||||||
Loss on Foreign Exchange Contracts | (0.4 | ) | (5.2 | ) | (1.3 | ) | (6.7 | ) | |||||||||
Interest and Debt Expense | |||||||||||||||||
Loss on Interest Rate Swaps | (0.6 | ) | (0.5 | ) | (1.6 | ) | (1.5 | ) | |||||||||
15.1 | 9.0 | 44.5 | 35.1 | ||||||||||||||
Income Tax Expense | 3.1 | 3.1 | 9.3 | 12.3 | |||||||||||||
Total | $ | 12.0 | $ | 5.9 | $ | 35.2 | $ | 22.8 | |||||||||
Unrecognized Pension and Postretirement Benefit Costs | |||||||||||||||||
Other Expenses | |||||||||||||||||
Amortization of Net Actuarial Loss | $ | (5.6 | ) | $ | (5.1 | ) | $ | (16.8 | ) | $ | (15.2 | ) | |||||
Amortization of Prior Service Credit | 0.1 | 0.2 | 0.2 | 0.5 | |||||||||||||
(5.5 | ) | (4.9 | ) | (16.6 | ) | (14.7 | ) | ||||||||||
Income Tax Benefit | (1.1 | ) | (1.7 | ) | (3.6 | ) | (5.1 | ) | |||||||||
Total | $ | (4.4 | ) | $ | (3.2 | ) | $ | (13.0 | ) | $ | (9.6 | ) |
2018 | 2017 | ||||||
(in millions of dollars) | |||||||
Balance at January 1 | $ | 23,222.0 | $ | 23,249.5 | |||
Less Reinsurance Recoverable | 2,182.0 | 2,163.6 | |||||
Net Balance at January 1 | 21,040.0 | 21,085.9 | |||||
Incurred Related to | |||||||
Current Year | 4,421.9 | 4,046.2 | |||||
Prior Years | |||||||
Interest | 807.2 | 836.5 | |||||
All Other Incurred | (65.6 | ) | (143.3 | ) | |||
Foreign Currency | (70.2 | ) | 150.0 | ||||
Total Incurred | 5,093.3 | 4,889.4 | |||||
Paid Related to | |||||||
Current Year | (1,589.1 | ) | (1,463.9 | ) | |||
Prior Years | (3,491.2 | ) | (3,478.8 | ) | |||
Total Paid | (5,080.3 | ) | (4,942.7 | ) | |||
Net Balance at September 30 | 21,053.0 | 21,032.6 | |||||
Plus Reinsurance Recoverable | 2,204.0 | 2,163.9 | |||||
Balance at September 30 | $ | 23,257.0 | $ | 23,196.5 |
September 30 | |||||||
2018 | 2017 | ||||||
(in millions of dollars) | |||||||
Policy and Contract Benefits | $ | 1,674.1 | $ | 1,539.0 | |||
Reserves for Future Policy and Contract Benefits | 45,092.7 | 45,456.9 | |||||
Total | 46,766.8 | 46,995.9 | |||||
Less: | |||||||
Life Reserves for Future Policy and Contract Benefits | 8,303.4 | 8,209.6 | |||||
Accident and Health Active Life Reserves | 11,521.5 | 10,532.4 | |||||
Adjustment Related to Unrealized Investment Gains and Losses | 3,684.9 | 5,057.4 | |||||
Liability for Unpaid Claims and Claim Adjustment Expenses | $ | 23,257.0 | $ | 23,196.5 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in millions of dollars) | |||||||||||||||
Premium Income | |||||||||||||||
Unum US | |||||||||||||||
Group Disability | |||||||||||||||
Group Long-term Disability | $ | 444.1 | $ | 435.2 | $ | 1,322.7 | $ | 1,307.3 | |||||||
Group Short-term Disability | 180.4 | 161.1 | 527.7 | 477.3 | |||||||||||
Group Life and Accidental Death & Dismemberment | |||||||||||||||
Group Life | 399.3 | 370.0 | 1,189.6 | 1,101.7 | |||||||||||
Accidental Death & Dismemberment | 39.6 | 37.2 | 116.9 | 110.5 | |||||||||||
Supplemental and Voluntary | |||||||||||||||
Individual Disability | 109.5 | 104.4 | 319.1 | 318.1 | |||||||||||
Voluntary Benefits | 222.3 | 210.8 | 676.0 | 639.2 | |||||||||||
Dental and Vision | 51.0 | 42.2 | 149.3 | 124.9 | |||||||||||
1,446.2 | 1,360.9 | 4,301.3 | 4,079.0 | ||||||||||||
Unum UK | |||||||||||||||
Group Long-term Disability | 91.3 | 87.0 | 271.8 | 251.6 | |||||||||||
Group Life | 27.1 | 26.7 | 83.6 | 76.9 | |||||||||||
Supplemental | 19.6 | 17.8 | 61.1 | 51.1 | |||||||||||
138.0 | 131.5 | 416.5 | 379.6 | ||||||||||||
Colonial Life | |||||||||||||||
Accident, Sickness, and Disability | 231.9 | 222.3 | 691.8 | 661.5 | |||||||||||
Life | 81.4 | 74.6 | 243.9 | 223.8 | |||||||||||
Cancer and Critical Illness | 86.7 | 81.8 | 258.0 | 244.0 | |||||||||||
400.0 | 378.7 | 1,193.7 | 1,129.3 | ||||||||||||
Closed Block | |||||||||||||||
Individual Disability | 102.7 | 117.9 | 319.0 | 357.7 | |||||||||||
Long-term Care | 163.0 | 162.4 | 485.8 | 486.4 | |||||||||||
All Other | 1.9 | 2.2 | 6.5 | 6.7 | |||||||||||
267.6 | 282.5 | 811.3 | 850.8 | ||||||||||||
Total Premium Income | $ | 2,251.8 | $ | 2,153.6 | $ | 6,722.8 | $ | 6,438.7 |
Unum US | Unum UK | Colonial Life | Closed Block | Corporate | Total | ||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Three Months Ended September 30, 2018 | |||||||||||||||||||||||
Premium Income | $ | 1,446.2 | $ | 138.0 | $ | 400.0 | $ | 267.6 | $ | — | $ | 2,251.8 | |||||||||||
Net Investment Income | 200.3 | 26.4 | 36.7 | 348.0 | 7.8 | 619.2 | |||||||||||||||||
Other Income | 30.7 | — | 0.4 | 18.9 | 0.1 | 50.1 | |||||||||||||||||
Adjusted Operating Revenue | $ | 1,677.2 | $ | 164.4 | $ | 437.1 | $ | 634.5 | $ | 7.9 | $ | 2,921.1 | |||||||||||
Adjusted Operating Income (Loss) | $ | 270.9 | $ | 26.1 | $ | 84.2 | $ | 32.2 | $ | (47.1 | ) | $ | 366.3 | ||||||||||
Three Months Ended September 30, 2017 | |||||||||||||||||||||||
Premium Income | $ | 1,360.9 | $ | 131.5 | $ | 378.7 | $ | 282.5 | $ | — | $ | 2,153.6 | |||||||||||
Net Investment Income | 201.0 | 28.5 | 36.0 | 337.2 | 6.3 | 609.0 | |||||||||||||||||
Other Income | 26.5 | 0.6 | 0.3 | 18.9 | 0.4 | 46.7 | |||||||||||||||||
Adjusted Operating Revenue | $ | 1,588.4 | $ | 160.6 | $ | 415.0 | $ | 638.6 | $ | 6.7 | $ | 2,809.3 | |||||||||||
Adjusted Operating Income (Loss) | $ | 258.4 | $ | 26.5 | $ | 81.7 | $ | 26.6 | $ | (36.2 | ) | $ | 357.0 |
Unum US | Unum UK | Colonial Life | Closed Block | Corporate | Total | ||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Nine Months Ended September 30, 2018 | |||||||||||||||||||||||
Premium Income | $ | 4,301.3 | $ | 416.5 | $ | 1,193.7 | $ | 811.3 | $ | — | $ | 6,722.8 | |||||||||||
Net Investment Income | 591.0 | 86.1 | 114.2 | 1,031.3 | 22.5 | 1,845.1 | |||||||||||||||||
Other Income | 88.5 | — | 1.0 | 56.8 | 1.6 | 147.9 | |||||||||||||||||
Adjusted Operating Revenue | $ | 4,980.8 | $ | 502.6 | $ | 1,308.9 | $ | 1,899.4 | $ | 24.1 | $ | 8,715.8 | |||||||||||
Adjusted Operating Income (Loss) | $ | 765.9 | $ | 83.5 | $ | 249.8 | $ | 90.7 | $ | (122.9 | ) | $ | 1,067.0 | ||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||||||||||
Premium Income | $ | 4,079.0 | $ | 379.6 | $ | 1,129.3 | $ | 850.8 | $ | — | $ | 6,438.7 | |||||||||||
Net Investment Income | 609.1 | 88.3 | 107.8 | 1,012.5 | 14.2 | 1,831.9 | |||||||||||||||||
Other Income | 85.3 | 0.6 | 0.8 | 59.9 | 1.5 | 148.1 | |||||||||||||||||
Adjusted Operating Revenue | $ | 4,773.4 | $ | 468.5 | $ | 1,237.9 | $ | 1,923.2 | $ | 15.7 | $ | 8,418.7 | |||||||||||
Adjusted Operating Income (Loss) | $ | 745.3 | $ | 82.0 | $ | 245.9 | $ | 90.8 | $ | (113.6 | ) | $ | 1,050.4 |
September 30 | December 31 | ||||||
2018 | 2017 | ||||||
(in millions of dollars) | |||||||
Assets | |||||||
Unum US | $ | 17,297.1 | $ | 18,109.1 | |||
Unum UK | 3,211.3 | 3,428.1 | |||||
Colonial Life | 4,145.2 | 4,184.1 | |||||
Closed Block | 34,360.5 | 35,051.2 | |||||
Corporate | 3,235.7 | 3,240.6 | |||||
Total Assets | $ | 62,249.8 | $ | 64,013.1 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in millions of dollars) | |||||||||||||||
Total Revenue | $ | 2,927.8 | $ | 2,819.1 | $ | 8,717.7 | $ | 8,447.6 | |||||||
Excluding: | |||||||||||||||
Net Realized Investment Gain | 6.7 | 9.8 | 1.9 | 28.9 | |||||||||||
Adjusted Operating Revenue | $ | 2,921.1 | $ | 2,809.3 | $ | 8,715.8 | $ | 8,418.7 | |||||||
Income (Loss) Before Income Tax | $ | (377.8 | ) | $ | 366.8 | $ | 318.1 | $ | 1,058.7 | ||||||
Excluding: | |||||||||||||||
Net Realized Investment Gain | 6.7 | 9.8 | 1.9 | 28.9 | |||||||||||
Loss from Guaranty Fund Assessment | — | — | — | (20.6 | ) | ||||||||||
Long-term Care Reserve Increase | (750.8 | ) | — | (750.8 | ) | — | |||||||||
Adjusted Operating Income | $ | 366.3 | $ | 357.0 | $ | 1,067.0 | $ | 1,050.4 |
Three Months Ended September 30 | |||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||
U.S. Plans | U.K. Plan | OPEB | |||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Service Cost | $ | 2.3 | $ | 2.0 | $ | — | $ | — | $ | — | $ | — | |||||||||||
Interest Cost | 19.9 | 21.1 | 1.5 | 1.6 | 1.2 | 1.4 | |||||||||||||||||
Expected Return on Plan Assets | (26.1 | ) | (25.8 | ) | (2.3 | ) | (2.1 | ) | (0.1 | ) | (0.1 | ) | |||||||||||
Amortization of: | |||||||||||||||||||||||
Net Actuarial Loss | 5.4 | 4.9 | 0.2 | 0.2 | — | — | |||||||||||||||||
Prior Service Credit | — | (0.1 | ) | — | — | (0.1 | ) | (0.1 | ) | ||||||||||||||
Total | $ | 1.5 | $ | 2.1 | $ | (0.6 | ) | $ | (0.3 | ) | $ | 1.0 | $ | 1.2 |
Nine Months Ended September 30 | |||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||
U.S. Plans | U.K. Plan | OPEB | |||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Service Cost | $ | 6.9 | $ | 5.9 | $ | — | $ | — | $ | — | $ | — | |||||||||||
Interest Cost | 59.8 | 63.3 | 4.6 | 4.6 | 3.7 | 4.4 | |||||||||||||||||
Expected Return on Plan Assets | (78.4 | ) | (77.3 | ) | (7.0 | ) | (5.9 | ) | (0.4 | ) | (0.4 | ) | |||||||||||
Amortization of: | |||||||||||||||||||||||
Net Actuarial Loss | 16.3 | 14.7 | 0.5 | 0.5 | — | — | |||||||||||||||||
Prior Service Credit | — | (0.2 | ) | — | — | (0.2 | ) | (0.3 | ) | ||||||||||||||
Total | $ | 4.6 | $ | 6.4 | $ | (1.9 | ) | $ | (0.8 | ) | $ | 3.1 | $ | 3.7 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in millions of dollars, except share data) | |||||||||||||||
Numerator | |||||||||||||||
Net Income (Loss) | $ | (284.7 | ) | $ | 252.3 | $ | 274.3 | $ | 727.3 | ||||||
Denominator (000s) | |||||||||||||||
Weighted Average Common Shares - Basic | 218,892.8 | 225,288.1 | 220,513.1 | 227,375.5 | |||||||||||
Dilution for Assumed Exercises of Stock Options and Nonvested Stock Awards | — | 741.7 | 433.2 | 805.0 | |||||||||||
Weighted Average Common Shares - Assuming Dilution | 218,892.8 | 226,029.8 | 220,946.3 | 228,180.5 | |||||||||||
Net Income (Loss) Per Common Share | |||||||||||||||
Basic | $ | (1.30 | ) | $ | 1.12 | $ | 1.24 | $ | 3.20 | ||||||
Assuming Dilution | $ | (1.30 | ) | $ | 1.12 | $ | 1.24 | $ | 3.19 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in millions) | |||||||||||||||
Shares Repurchased | — | 2.0 | 4.4 | 6.3 | |||||||||||
Cost of Shares Repurchased (1) | $ | — | $ | 100.2 | $ | 200.3 | $ | 300.3 |
• | On June 13, 2018, an alleged securities class action lawsuit entitled Cynthia Pittman v. Unum Group, Richard McKenney, John McGarry, and Daniel Waxenberg was filed in the United States District Court for the Eastern District of Tennessee. The plaintiff seeks to represent purchasers of Unum Group publicly traded securities between January 31, 2018 and May 2, 2018. The plaintiff alleges the Company caused its shares to trade at artificially high levels by failing to disclose information about the rate of long-term care policy terminations and long-term care claim incidence resulting in misleading statements about capital management plans and long-term care reserves. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and seeks compensatory damages in an amount to be proven at trial. The Company strongly denies these allegations and will vigorously defend the litigation. |
• | On July 13, 2018, an alleged securities class action lawsuit entitled Scott Cunningham v. Unum Group, Richard McKenney, John McGarry, and Daniel Waxenberg was filed in the United States District Court for the Eastern District of Tennessee. The allegations, class period, and damages claimed mirror those in the Pittman matter. The Company strongly denies these allegations and will vigorously defend the litigation. |
• | On July 25, 2018, an alleged securities class action lawsuit entitled City of Taylor Police and Fire Retirement System v. Unum Group, Richard McKenney, John McGarry, Steve Zabel, and Daniel Waxenberg was filed in the United States District Court for the Eastern District of Tennessee. The plaintiff seeks to represent purchasers of Unum Group publicly traded securities between October 27, 2016 and May 1, 2018. The allegations and damages claimed mirror those in the Pittman matter. The Company strongly denies these allegations and will vigorously defend the litigation. |
• | On September 27, 2018, a purported shareholder derivative lawsuit entitled Vladimir Gusinsky Revocable Trust, Derivatively on Behalf of Unum Group v. Richard P. McKenney, John F. McGarry, Daniel J. Waxenberg, Steve Zabel, Kevin T. Kabat, E. Michael Caulfield, Gloria C. Larson, Timothy F. Keaney, Theodore H. Bunting, Jr., Cynthia L. Egan, Ronald P. O'Hanley, Francis L. Shammo, Joseph J. Echevarria, Thomas R. Watjen, Pamela H. Godwin, Edward J. Muhl, and Unum Group as nominal defendant was filed in the United States District Court for the District of Delaware. The complaint purports to assert claims on behalf of the Company against certain current and past members of our Board of Directors and Mr. McKenney for alleged misleading statements about the Company's long-term care business in the Company's proxy statement filed with the Securities and Exchange Commission on April 13, 2017 in violation of Section 14(a) of the Securities Exchange Act of 1934. The complaint also purports to assert claims on behalf of the Company against all individual defendants arising out of the Company's long-term care business for breach of fiduciary duties, waste of corporate assets and unjust enrichment. The Company strongly denies these allegations and will vigorously defend the litigation. |
• | On October 23, 2018, a purported shareholder derivative lawsuit entitled Steven Jenkins, Derivatively on Behalf of Unum Group v. Richard P. McKenney, John F. McGarry, Daniel J. Waxenberg, Steve Zabel, Kevin T. Kabat, E. Michael Caulfield, Gloria C. Larson, Timothy F. Keaney, Theodore H. Bunting, Jr., Cynthia L. Egan, Ronald P. O'Hanley, Francis J. Shammo, Joseph J. Echevarria, Thomas R. Watjen, Pamela H. Godwin, Edward J. Muhl, and Unum Group as nominal defendant was filed in the United States District Court for the District of Delaware. The defendants, allegations, and damages claimed mirror those in the Gusinsky matter. The Company strongly denies these allegations and will vigorously defend the litigation. |
• | We updated our active policy termination assumptions, which are affected by both policyholder mortality and lapses. We aligned our mortality assumptions with industry data based on a 2012 individual annuitant mortality industry table, adjusted for our experience in earlier policy durations. We also lowered our lapse assumptions for individual policies based on emerging company experience, which resulted in an ultimate lapse rate of 0.25 percent. A six percent unfavorable change in the active policy termination assumption would result in approximately a $330 million decrease to reserve margin and a six percent favorable change would result in approximately a $320 million increase to reserve margin. |
• | We updated our claims incidence assumptions to consider both the elevated claim levels that we have recently experienced as well as longer term experience based on our analysis of numerous claim factors, including variations by age, gender, product, premium funding method, and other factors. A 2.5 percent unfavorable change in the claim incidence assumption would result in approximately a $290 million decrease to reserve margin and a 2.5 percent favorable change would result in approximately a $300 million increase to reserve margin. |
• | We updated our claim termination assumptions, which are primarily affected by the death, and to a lesser extent, the recovery of the insured to largely reflect our experience, which considers seasonality as well as the dynamics of an overall aging block. A three percent unfavorable change in the claim termination assumption would result in approximately a $370 million decrease to reserve margin and a three percent favorable change would result in approximately a $360 million increase to reserve margin. |
• | We have observed morbidity improvement in our own claims experience over a ten year period of approximately three percent per year, normalized for variables such as age and claim type. However, we believe that a longer-term view is the best way to evaluate this type of improvement. Accordingly, we updated our morbidity assumptions to reflect minor improvement, one percent per year, including a partially offsetting assumption of 0.6 percent per year mortality improvement. If no improvement occurs in the morbidity and mortality assumptions, reserve margin would decrease by approximately $1 billion. If a three percent per year improvement in the morbidity and mortality assumptions occurs, reserve margin would increase by approximately $1.6 billion. |
• | We updated our premium rate increase assumptions to reflect both our estimate of previously filed rate increases, informed by our historical approval rates, and our anticipated future rate filings. The impact of the update to the premium rate increase assumptions resulted in approximately a $1.4 billion decrease to reserves, of which approximately $700 million relates to currently outstanding requests pending approval with the remaining $700 million related to future rate increase submissions, with a focus on group policies, that will be completed and filed during the next several quarters. A ten percent |
• | We updated our discount rate assumption to reflect our expectation for the low interest rate environment to persist and our expected impact on future long-term care new money yield rates. Our updated expectation for long-term care new money yield rates assumes a rate of 5.5 percent through 2021 and then a gradual increase to 6.25 percent by 2025, when we assume no further increase. A 0.25 percent change in the new money yield rate assumption would result in an approximately $250 million change in reserve margin depending on whether the change was favorable or unfavorable. |
Three Months Ended September 30 | |||||||||||||||
2018 | 2017 | ||||||||||||||
(in millions) | per share * | (in millions) | per share * | ||||||||||||
Net Income (Loss) | $ | (284.7 | ) | $ | (1.30 | ) | $ | 252.3 | $ | 1.12 | |||||
Excluding: | |||||||||||||||
Net Realized Investment Gain (net of tax expense (benefit) of $(1.1); $3.6) | 7.8 | 0.04 | 6.2 | 0.03 | |||||||||||
Long-term Care Reserve Increase (net of tax benefit of $157.7; $-) | (593.1 | ) | (2.71 | ) | — | — | |||||||||
After-tax Adjusted Operating Income | $ | 300.6 | $ | 1.37 | $ | 246.1 | $ | 1.09 | |||||||
Nine Months Ended September 30 | |||||||||||||||
2018 | 2017 | ||||||||||||||
(in millions) | per share * | (in millions) | per share * | ||||||||||||
Net Income | $ | 274.3 | $ | 1.24 | $ | 727.3 | $ | 3.19 | |||||||
Excluding: | |||||||||||||||
Net Realized Investment Gain (net of tax expense (benefit) of $(2.2); $10.8) | 4.1 | 0.01 | 18.1 | 0.08 | |||||||||||
Loss from Guaranty Fund Assessment (net of tax benefit of $-; $7.2) | — | — | (13.4 | ) | (0.06 | ) | |||||||||
Long-term Care Reserve Increase (net of tax benefit of $157.7; $-) | (593.1 | ) | (2.68 | ) | — | — | |||||||||
After-tax Adjusted Operating Income | $ | 863.3 | $ | 3.91 | $ | 722.6 | $ | 3.17 | |||||||
* Assuming Dilution |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in millions of dollars) | |||||||||||||||
Total Revenue | $ | 2,927.8 | $ | 2,819.1 | $ | 8,717.7 | $ | 8,447.6 | |||||||
Excluding: | |||||||||||||||
Net Realized Investment Gain | 6.7 | 9.8 | 1.9 | 28.9 | |||||||||||
Adjusted Operating Revenue | $ | 2,921.1 | $ | 2,809.3 | $ | 8,715.8 | $ | 8,418.7 | |||||||
Income (Loss) Before Income Tax | $ | (377.8 | ) | $ | 366.8 | $ | 318.1 | $ | 1,058.7 | ||||||
Excluding: | |||||||||||||||
Net Realized Investment Gain | 6.7 | 9.8 | 1.9 | 28.9 | |||||||||||
Loss from Guaranty Fund Assessment | — | — | — | (20.6 | ) | ||||||||||
Long-Term Care Reserve Increase | (750.8 | ) | — | (750.8 | ) | — | |||||||||
Adjusted Operating Income | $ | 366.3 | $ | 357.0 | $ | 1,067.0 | $ | 1,050.4 |
(in millions of dollars) | |||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
2018 | % Change | 2017 | 2018 | % Change | 2017 | ||||||||||||||||
As Adjusted | As Adjusted | ||||||||||||||||||||
Revenue | |||||||||||||||||||||
Premium Income | $ | 2,251.8 | 4.6 | % | $ | 2,153.6 | $ | 6,722.8 | 4.4 | % | $ | 6,438.7 | |||||||||
Net Investment Income | 619.2 | 1.7 | 609.0 | 1,845.1 | 0.7 | 1,831.9 | |||||||||||||||
Net Realized Investment Gain | 6.7 | (31.6 | ) | 9.8 | 1.9 | (93.4 | ) | 28.9 | |||||||||||||
Other Income | 50.1 | 7.3 | 46.7 | 147.9 | (0.1 | ) | 148.1 | ||||||||||||||
Total Revenue | 2,927.8 | 3.9 | 2,819.1 | 8,717.7 | 3.2 | 8,447.6 | |||||||||||||||
Benefits and Expenses | |||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 2,578.9 | 46.1 | 1,765.6 | 6,190.9 | 17.6 | 5,266.6 | |||||||||||||||
Commissions | 276.8 | 5.5 | 262.4 | 832.6 | 4.9 | 793.9 | |||||||||||||||
Interest and Debt Expense | 42.7 | 6.5 | 40.1 | 125.3 | 4.6 | 119.8 | |||||||||||||||
Deferral of Acquisition Costs | (166.8 | ) | 7.8 | (154.8 | ) | (501.8 | ) | 6.7 | (470.1 | ) | |||||||||||
Amortization of Deferred Acquisition Costs | 136.9 | 10.7 | 123.7 | 428.6 | 6.2 | 403.5 | |||||||||||||||
Compensation Expense | 224.2 | 0.2 | 223.8 | 666.1 | 2.4 | 650.6 | |||||||||||||||
Other Expenses | 212.9 | 11.2 | 191.5 | 657.9 | 5.3 | 624.6 | |||||||||||||||
Total Benefits and Expenses | 3,305.6 | 34.8 | 2,452.3 | 8,399.6 | 13.7 | 7,388.9 | |||||||||||||||
Income (Loss) Before Income Tax Expense (Benefit) | (377.8 | ) | (203.0 | ) | 366.8 | 318.1 | (70.0 | ) | 1,058.7 | ||||||||||||
Income Tax Expense (Benefit) | (93.1 | ) | (181.3 | ) | 114.5 | 43.8 | (86.8 | ) | 331.4 | ||||||||||||
Net Income (Loss) | $ | (284.7 | ) | (212.8 | ) | $ | 252.3 | $ | 274.3 | (62.3 | ) | $ | 727.3 | ||||||||
(in millions) | |||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
2018 | % Change | 2017 | 2018 | % Change | 2017 | ||||||||||||||||
Unum US | $ | 152.7 | (5.6 | )% | $ | 161.8 | $ | 625.0 | (1.3 | )% | $ | 633.3 | |||||||||
Unum UK | £ | 13.0 | 2.4 | % | £ | 12.7 | £ | 45.9 | (5.2 | )% | £ | 48.4 | |||||||||
Colonial Life | $ | 120.8 | 13.0 | % | $ | 106.9 | $ | 356.9 | 11.6 | % | $ | 319.9 |
(in millions of dollars, except ratios) | |||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
2018 | % Change | 2017 | 2018 | % Change | 2017 | ||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||
Premium Income | $ | 1,446.2 | 6.3 | % | $ | 1,360.9 | $ | 4,301.3 | 5.4 | % | $ | 4,079.0 | |||||||||
Net Investment Income | 200.3 | (0.3 | ) | 201.0 | 591.0 | (3.0 | ) | 609.1 | |||||||||||||
Other Income | 30.7 | 15.8 | 26.5 | 88.5 | 3.8 | 85.3 | |||||||||||||||
Total | 1,677.2 | 5.6 | 1,588.4 | 4,980.8 | 4.3 | 4,773.4 | |||||||||||||||
Benefits and Expenses | |||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 975.7 | 6.0 | 920.7 | 2,885.9 | 4.6 | 2,759.8 | |||||||||||||||
Commissions | 154.4 | 7.1 | 144.1 | 467.5 | 5.8 | 442.0 | |||||||||||||||
Deferral of Acquisition Costs | (84.6 | ) | 8.2 | (78.2 | ) | (259.1 | ) | 6.2 | (244.0 | ) | |||||||||||
Amortization of Deferred Acquisition Costs | 73.7 | 13.0 | 65.2 | 241.4 | 5.7 | 228.3 | |||||||||||||||
Other Expenses | 287.1 | 3.2 | 278.2 | 879.2 | 4.4 | 842.0 | |||||||||||||||
Total | 1,406.3 | 5.7 | 1,330.0 | 4,214.9 | 4.6 | 4,028.1 | |||||||||||||||
Adjusted Operating Income | $ | 270.9 | 4.8 | $ | 258.4 | $ | 765.9 | 2.8 | $ | 745.3 | |||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||
Benefit Ratio | 67.5 | % | 67.7 | % | 67.1 | % | 67.7 | % | |||||||||||||
Other Expense Ratio | 19.9 | % | 20.4 | % | 20.4 | % | 20.6 | % | |||||||||||||
Adjusted Operating Income Ratio | 18.7 | % | 19.0 | % | 17.8 | % | 18.3 | % |
(in millions of dollars, except ratios) | |||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
2018 | % Change | 2017 | 2018 | % Change | 2017 | ||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||
Premium Income | |||||||||||||||||||||
Group Long-term Disability | $ | 444.1 | 2.0 | % | $ | 435.2 | $ | 1,322.7 | 1.2 | % | $ | 1,307.3 | |||||||||
Group Short-term Disability | 180.4 | 12.0 | 161.1 | 527.7 | 10.6 | 477.3 | |||||||||||||||
Total Premium Income | 624.5 | 4.7 | 596.3 | 1,850.4 | 3.7 | 1,784.6 | |||||||||||||||
Net Investment Income | 112.9 | (0.7 | ) | 113.7 | 330.0 | (5.0 | ) | 347.3 | |||||||||||||
Other Income | 28.0 | 17.6 | 23.8 | 80.9 | 10.2 | 73.4 | |||||||||||||||
Total | 765.4 | 4.3 | 733.8 | 2,261.3 | 2.5 | 2,205.3 | |||||||||||||||
Benefits and Expenses | |||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 476.2 | 4.2 | 457.1 | 1,406.8 | 2.9 | 1,366.8 | |||||||||||||||
Commissions | 46.7 | 2.0 | 45.8 | 141.0 | 2.8 | 137.1 | |||||||||||||||
Deferral of Acquisition Costs | (12.1 | ) | (2.4 | ) | (12.4 | ) | (36.8 | ) | 2.8 | (35.8 | ) | ||||||||||
Amortization of Deferred Acquisition Costs | 11.2 | 12.0 | 10.0 | 33.6 | 12.4 | 29.9 | |||||||||||||||
Other Expenses | 150.4 | 5.0 | 143.3 | 459.1 | 5.2 | 436.2 | |||||||||||||||
Total | 672.4 | 4.4 | 643.8 | 2,003.7 | 3.6 | 1,934.2 | |||||||||||||||
Adjusted Operating Income | $ | 93.0 | 3.3 | $ | 90.0 | $ | 257.6 | (5.0 | ) | $ | 271.1 | ||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||
Benefit Ratio | 76.3 | % | 76.7 | % | 76.0 | % | 76.6 | % | |||||||||||||
Other Expense Ratio | 24.1 | % | 24.0 | % | 24.8 | % | 24.4 | % | |||||||||||||
Adjusted Operating Income Ratio | 14.9 | % | 15.1 | % | 13.9 | % | 15.2 | % | |||||||||||||
Persistency: | |||||||||||||||||||||
Group Long-term Disability | 91.0 | % | 89.5 | % | |||||||||||||||||
Group Short-term Disability | 88.2 | % | 86.3 | % |
(in millions of dollars, except ratios) | |||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
2018 | % Change | 2017 | 2018 | % Change | 2017 | ||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||
Premium Income | |||||||||||||||||||||
Group Life | $ | 399.3 | 7.9 | % | $ | 370.0 | $ | 1,189.6 | 8.0 | % | $ | 1,101.7 | |||||||||
Accidental Death & Dismemberment | 39.6 | 6.5 | 37.2 | 116.9 | 5.8 | 110.5 | |||||||||||||||
Total Premium Income | 438.9 | 7.8 | 407.2 | 1,306.5 | 7.8 | 1,212.2 | |||||||||||||||
Net Investment Income | 26.4 | (3.3 | ) | 27.3 | 80.4 | (2.8 | ) | 82.7 | |||||||||||||
Other Income | 1.2 | (14.3 | ) | 1.4 | 3.4 | (5.6 | ) | 3.6 | |||||||||||||
Total | 466.5 | 7.0 | 435.9 | 1,390.3 | 7.1 | 1,298.5 | |||||||||||||||
Benefits and Expenses | |||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 315.3 | 8.5 | 290.6 | 927.1 | 7.3 | 864.1 | |||||||||||||||
Commissions | 34.9 | 4.8 | 33.3 | 106.5 | 8.7 | 98.0 | |||||||||||||||
Deferral of Acquisition Costs | (9.5 | ) | — | (9.5 | ) | (29.4 | ) | 6.5 | (27.6 | ) | |||||||||||
Amortization of Deferred Acquisition Costs | 9.0 | 13.9 | 7.9 | 27.0 | 13.0 | 23.9 | |||||||||||||||
Other Expenses | 52.8 | (1.3 | ) | 53.5 | 163.3 | 0.1 | 163.1 | ||||||||||||||
Total | 402.5 | 7.1 | 375.8 | 1,194.5 | 6.5 | 1,121.5 | |||||||||||||||
Adjusted Operating Income | $ | 64.0 | 6.5 | $ | 60.1 | $ | 195.8 | 10.6 | $ | 177.0 | |||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||
Benefit Ratio | 71.8 | % | 71.4 | % | 71.0 | % | 71.3 | % | |||||||||||||
Other Expense Ratio | 12.0 | % | 13.1 | % | 12.5 | % | 13.5 | % | |||||||||||||
Adjusted Operating Income Ratio | 14.6 | % | 14.8 | % | 15.0 | % | 14.6 | % | |||||||||||||
Persistency: | |||||||||||||||||||||
Group Life | 91.2 | % | 87.7 | % | |||||||||||||||||
Accidental Death & Dismemberment | 90.0 | % | 86.8 | % |
(in millions of dollars, except ratios) | |||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
2018 | % Change | 2017 | 2018 | % Change | 2017 | ||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||
Premium Income | |||||||||||||||||||||
Individual Disability | $ | 109.5 | 4.9 | % | $ | 104.4 | $ | 319.1 | 0.3 | % | $ | 318.1 | |||||||||
Voluntary Benefits | 222.3 | 5.5 | 210.8 | 676.0 | 5.8 | 639.2 | |||||||||||||||
Dental and Vision | 51.0 | 20.9 | 42.2 | 149.3 | 19.5 | 124.9 | |||||||||||||||
Total Premium Income | 382.8 | 7.1 | 357.4 | 1,144.4 | 5.7 | 1,082.2 | |||||||||||||||
Net Investment Income | 61.0 | 1.7 | 60.0 | 180.6 | 0.8 | 179.1 | |||||||||||||||
Other Income | 1.5 | 15.4 | 1.3 | 4.2 | (49.4 | ) | 8.3 | ||||||||||||||
Total | 445.3 | 6.4 | 418.7 | 1,329.2 | 4.7 | 1,269.6 | |||||||||||||||
Benefits and Expenses | |||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 184.2 | 6.5 | 173.0 | 552.0 | 4.4 | 528.9 | |||||||||||||||
Commissions | 72.8 | 12.0 | 65.0 | 220.0 | 6.3 | 206.9 | |||||||||||||||
Deferral of Acquisition Costs | (63.0 | ) | 11.9 | (56.3 | ) | (192.9 | ) | 6.8 | (180.6 | ) | |||||||||||
Amortization of Deferred Acquisition Costs | 53.5 | 13.1 | 47.3 | 180.8 | 3.6 | 174.5 | |||||||||||||||
Other Expenses | 83.9 | 3.1 | 81.4 | 256.8 | 5.8 | 242.7 | |||||||||||||||
Total | 331.4 | 6.8 | 310.4 | 1,016.7 | 4.6 | 972.4 | |||||||||||||||
Adjusted Operating Income | $ | 113.9 | 5.2 | $ | 108.3 | $ | 312.5 | 5.1 | $ | 297.2 | |||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||
Benefit Ratios: | |||||||||||||||||||||
Individual Disability | 50.4 | % | 48.3 | % | 50.5 | % | 51.4 | % | |||||||||||||
Voluntary Benefits | 42.2 | % | 44.1 | % | 42.6 | % | 43.2 | % | |||||||||||||
Dental and Vision | 68.8 | % | 70.1 | % | 68.9 | % | 71.3 | % | |||||||||||||
Other Expense Ratio | 21.9 | % | 22.8 | % | 22.4 | % | 22.4 | % | |||||||||||||
Adjusted Operating Income Ratio | 29.8 | % | 30.3 | % | 27.3 | % | 27.5 | % | |||||||||||||
Persistency: | |||||||||||||||||||||
Individual Disability | 90.3 | % | 91.1 | % | |||||||||||||||||
Voluntary Benefits | 76.5 | % | 76.8 | % | |||||||||||||||||
Dental and Vision | 84.5 | % | 84.2 | % |
(in millions of dollars) | |||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
2018 | % Change | 2017 | 2018 | % Change | 2017 | ||||||||||||||||
Sales by Product | |||||||||||||||||||||
Group Disability and Group Life and AD&D | |||||||||||||||||||||
Group Long-term Disability | $ | 25.4 | (18.3 | )% | $ | 31.1 | $ | 96.5 | (15.8 | )% | $ | 114.6 | |||||||||
Group Short-term Disability | 17.9 | (13.5 | ) | 20.7 | 57.8 | (11.1 | ) | 65.0 | |||||||||||||
Group Life and AD&D | 29.4 | (16.2 | ) | 35.1 | 128.5 | (2.5 | ) | 131.8 | |||||||||||||
Subtotal | 72.7 | (16.3 | ) | 86.9 | 282.8 | (9.2 | ) | 311.4 | |||||||||||||
Supplemental and Voluntary | |||||||||||||||||||||
Individual Disability | 20.1 | (1.5 | ) | 20.4 | 56.9 | 13.3 | 50.2 | ||||||||||||||
Voluntary Benefits | 47.6 | 6.3 | 44.8 | 249.0 | 3.0 | 241.7 | |||||||||||||||
Dental and Vision | 12.3 | 26.8 | 9.7 | 36.3 | 21.0 | 30.0 | |||||||||||||||
Subtotal | 80.0 | 6.8 | 74.9 | 342.2 | 6.3 | 321.9 | |||||||||||||||
Total Sales | $ | 152.7 | (5.6 | ) | $ | 161.8 | $ | 625.0 | (1.3 | ) | $ | 633.3 | |||||||||
Sales by Market Sector | |||||||||||||||||||||
Group Disability and Group Life and AD&D | |||||||||||||||||||||
Core Market (< 2,000 employees) | $ | 55.9 | (14.7 | )% | $ | 65.5 | $ | 191.7 | (9.6 | )% | $ | 212.1 | |||||||||
Large Case Market | 16.8 | (21.5 | ) | 21.4 | 91.1 | (8.3 | ) | 99.3 | |||||||||||||
Subtotal | 72.7 | (16.3 | ) | 86.9 | 282.8 | (9.2 | ) | 311.4 | |||||||||||||
Supplemental and Voluntary | 80.0 | 6.8 | 74.9 | 342.2 | 6.3 | 321.9 | |||||||||||||||
Total Sales | $ | 152.7 | (5.6 | ) | $ | 161.8 | $ | 625.0 | (1.3 | ) | $ | 633.3 |
(in millions of dollars, except ratios) | |||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
2018 | % Change | 2017 | 2018 | % Change | 2017 | ||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||
Premium Income | |||||||||||||||||||||
Group Long-term Disability | $ | 91.3 | 4.9 | % | $ | 87.0 | $ | 271.8 | 8.0 | % | $ | 251.6 | |||||||||
Group Life | 27.1 | 1.5 | 26.7 | 83.6 | 8.7 | 76.9 | |||||||||||||||
Supplemental | 19.6 | 10.1 | 17.8 | 61.1 | 19.6 | 51.1 | |||||||||||||||
Total Premium Income | 138.0 | 4.9 | 131.5 | 416.5 | 9.7 | 379.6 | |||||||||||||||
Net Investment Income | 26.4 | (7.4 | ) | 28.5 | 86.1 | (2.5 | ) | 88.3 | |||||||||||||
Other Income | — | N.M. | 0.6 | — | N.M. | 0.6 | |||||||||||||||
Total | 164.4 | 2.4 | 160.6 | 502.6 | 7.3 | 468.5 | |||||||||||||||
Benefits and Expenses | |||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 102.6 | 4.3 | 98.4 | 309.5 | 10.2 | 280.9 | |||||||||||||||
Commissions | 9.1 | (1.1 | ) | 9.2 | 28.1 | 4.1 | 27.0 | ||||||||||||||
Deferral of Acquisition Costs | (1.4 | ) | (12.5 | ) | (1.6 | ) | (5.3 | ) | (1.9 | ) | (5.4 | ) | |||||||||
Amortization of Deferred Acquisition Costs | 2.0 | (13.0 | ) | 2.3 | 6.2 | (8.8 | ) | 6.8 | |||||||||||||
Other Expenses | 26.0 | 0.8 | 25.8 | 80.6 | 4.4 | 77.2 | |||||||||||||||
Total | 138.3 | 3.1 | 134.1 | 419.1 | 8.4 | 386.5 | |||||||||||||||
Adjusted Operating Income | $ | 26.1 | (1.5 | ) | $ | 26.5 | $ | 83.5 | 1.8 | $ | 82.0 | ||||||||||
N.M. = not a meaningful percentage |
(in millions of pounds, except ratios) | |||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
2018 | % Change | 2017 | 2018 | % Change | 2017 | ||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||
Premium Income | |||||||||||||||||||||
Group Long-term Disability | £ | 70.0 | 5.4 | % | £ | 66.4 | £ | 201.2 | 2.1 | % | £ | 197.1 | |||||||||
Group Life | 20.8 | 2.5 | 20.3 | 61.9 | 2.8 | 60.2 | |||||||||||||||
Supplemental | 15.2 | 10.9 | 13.7 | 45.3 | 13.0 | 40.1 | |||||||||||||||
Total Premium Income | 106.0 | 5.6 | 100.4 | 308.4 | 3.7 | 297.4 | |||||||||||||||
Net Investment Income | 20.2 | (7.3 | ) | 21.8 | 63.6 | (8.1 | ) | 69.2 | |||||||||||||
Other Income | — | N.M. | 0.5 | — | N.M. | 0.5 | |||||||||||||||
Total | 126.2 | 2.9 | 122.7 | 372.0 | 1.3 | 367.1 | |||||||||||||||
Benefits and Expenses | |||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 78.7 | 4.7 | 75.2 | 229.1 | 4.1 | 220.0 | |||||||||||||||
Commissions | 7.0 | 1.4 | 6.9 | 20.8 | (1.4 | ) | 21.1 | ||||||||||||||
Deferral of Acquisition Costs | (1.0 | ) | (16.7 | ) | (1.2 | ) | (3.9 | ) | (7.1 | ) | (4.2 | ) | |||||||||
Amortization of Deferred Acquisition Costs | 1.5 | (16.7 | ) | 1.8 | 4.6 | (13.2 | ) | 5.3 | |||||||||||||
Other Expenses | 20.0 | 1.0 | 19.8 | 59.6 | (1.8 | ) | 60.7 | ||||||||||||||
Total | 106.2 | 3.6 | 102.5 | 310.2 | 2.4 | 302.9 | |||||||||||||||
Adjusted Operating Income | £ | 20.0 | (1.0 | ) | £ | 20.2 | £ | 61.8 | (3.7 | ) | £ | 64.2 | |||||||||
Weighted Average Pound/Dollar Exchange Rate | 1.305 | 1.312 | 1.351 | 1.277 | |||||||||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||
Benefit Ratio | 74.2 | % | 74.9 | % | 74.3 | % | 74.0 | % | |||||||||||||
Other Expense Ratio | 18.9 | % | 19.7 | % | 19.3 | % | 20.4 | % | |||||||||||||
Adjusted Operating Income Ratio | 18.9 | % | 20.1 | % | 20.0 | % | 21.6 | % | |||||||||||||
Persistency: | |||||||||||||||||||||
Group Long-term Disability | 87.5 | % | 87.1 | % | |||||||||||||||||
Group Life | 85.5 | % | 83.5 | % | |||||||||||||||||
Supplemental | 92.9 | % | 89.5 | % | |||||||||||||||||
N.M. = not a meaningful percentage |
(in millions of dollars and pounds) | |||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
2018 | % Change | 2017 | 2018 | % Change | 2017 | ||||||||||||||||
Sales by Product | |||||||||||||||||||||
Group Long-term Disability | $ | 9.1 | 40.0 | % | $ | 6.5 | $ | 32.5 | 3.2 | % | $ | 31.5 | |||||||||
Group Life | 5.6 | (28.2 | ) | 7.8 | 15.8 | (10.7 | ) | 17.7 | |||||||||||||
Supplemental | 2.2 | — | 2.2 | 14.0 | 14.8 | 12.2 | |||||||||||||||
Total Sales | $ | 16.9 | 2.4 | $ | 16.5 | $ | 62.3 | 1.5 | $ | 61.4 | |||||||||||
Sales by Market Sector | |||||||||||||||||||||
Group Long-term Disability and Group Life | |||||||||||||||||||||
Core Market (< 500 employees) | $ | 7.8 | 27.9 | % | $ | 6.1 | $ | 26.3 | 21.8 | % | $ | 21.6 | |||||||||
Large Case Market | 6.9 | (15.9 | ) | 8.2 | 22.0 | (20.3 | ) | 27.6 | |||||||||||||
Subtotal | 14.7 | 2.8 | 14.3 | 48.3 | (1.8 | ) | 49.2 | ||||||||||||||
Supplemental | 2.2 | — | 2.2 | 14.0 | 14.8 | 12.2 | |||||||||||||||
Total Sales | $ | 16.9 | 2.4 | $ | 16.5 | $ | 62.3 | 1.5 | $ | 61.4 | |||||||||||
Sales by Product | |||||||||||||||||||||
Group Long-term Disability | £ | 7.0 | 40.0 | % | £ | 5.0 | £ | 24.0 | (3.6 | )% | £ | 24.9 | |||||||||
Group Life | 4.3 | (29.5 | ) | 6.1 | 11.7 | (15.8 | ) | 13.9 | |||||||||||||
Supplemental | 1.7 | 6.3 | 1.6 | 10.2 | 6.3 | 9.6 | |||||||||||||||
Total Sales | £ | 13.0 | 2.4 | £ | 12.7 | £ | 45.9 | (5.2 | ) | £ | 48.4 | ||||||||||
Sales by Market Sector | |||||||||||||||||||||
Group Long-term Disability and Group Life | |||||||||||||||||||||
Core Market (< 500 employees) | £ | 6.1 | 27.1 | % | £ | 4.8 | £ | 19.5 | 14.7 | % | £ | 17.0 | |||||||||
Large Case Market | 5.2 | (17.5 | ) | 6.3 | 16.2 | (25.7 | ) | 21.8 | |||||||||||||
Subtotal | 11.3 | 1.8 | 11.1 | 35.7 | (8.0 | ) | 38.8 | ||||||||||||||
Supplemental | 1.7 | 6.3 | 1.6 | 10.2 | 6.3 | 9.6 | |||||||||||||||
Total Sales | £ | 13.0 | 2.4 | £ | 12.7 | £ | 45.9 | (5.2 | ) | £ | 48.4 |
(in millions of dollars, except ratios) | |||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
2018 | % Change | 2017 | 2018 | % Change | 2017 | ||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||
Premium Income | |||||||||||||||||||||
Accident, Sickness, and Disability | $ | 231.9 | 4.3 | % | $ | 222.3 | $ | 691.8 | 4.6 | % | $ | 661.5 | |||||||||
Life | 81.4 | 9.1 | 74.6 | 243.9 | 9.0 | 223.8 | |||||||||||||||
Cancer and Critical Illness | 86.7 | 6.0 | 81.8 | 258.0 | 5.7 | 244.0 | |||||||||||||||
Total Premium Income | 400.0 | 5.6 | 378.7 | 1,193.7 | 5.7 | 1,129.3 | |||||||||||||||
Net Investment Income | 36.7 | 1.9 | 36.0 | 114.2 | 5.9 | 107.8 | |||||||||||||||
Other Income | 0.4 | 33.3 | 0.3 | 1.0 | 25.0 | 0.8 | |||||||||||||||
Total | 437.1 | 5.3 | 415.0 | 1,308.9 | 5.7 | 1,237.9 | |||||||||||||||
Benefits and Expenses | |||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 206.1 | 5.1 | 196.1 | 613.4 | 5.9 | 579.2 | |||||||||||||||
Commissions | 92.4 | 6.9 | 86.4 | 273.7 | 6.6 | 256.8 | |||||||||||||||
Deferral of Acquisition Costs | (80.8 | ) | 7.7 | (75.0 | ) | (237.4 | ) | 7.6 | (220.7 | ) | |||||||||||
Amortization of Deferred Acquisition Costs | 61.2 | 8.9 | 56.2 | 181.0 | 7.5 | 168.4 | |||||||||||||||
Other Expenses | 74.0 | 6.3 | 69.6 | 228.4 | 9.6 | 208.3 | |||||||||||||||
Total | 352.9 | 5.9 | 333.3 | 1,059.1 | 6.8 | 992.0 | |||||||||||||||
Adjusted Operating Income | $ | 84.2 | 3.1 | $ | 81.7 | $ | 249.8 | 1.6 | $ | 245.9 | |||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||
Benefit Ratio | 51.5 | % | 51.8 | % | 51.4 | % | 51.3 | % | |||||||||||||
Other Expense Ratio | 18.5 | % | 18.4 | % | 19.1 | % | 18.4 | % | |||||||||||||
Adjusted Operating Income Ratio | 21.1 | % | 21.6 | % | 20.9 | % | 21.8 | % | |||||||||||||
Persistency: | |||||||||||||||||||||
Accident, Sickness, and Disability | 73.8 | % | 75.4 | % | |||||||||||||||||
Life | 83.7 | % | 84.5 | % | |||||||||||||||||
Cancer and Critical Illness | 82.4 | % | 82.6 | % |
(in millions of dollars) | |||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
2018 | % Change | 2017 | 2018 | % Change | 2017 | ||||||||||||||||
Sales by Product | |||||||||||||||||||||
Accident, Sickness, and Disability | $ | 77.3 | 16.2 | % | $ | 66.5 | $ | 227.3 | 12.7 | % | $ | 201.6 | |||||||||
Life | 24.2 | 7.1 | 22.6 | 73.1 | 6.9 | 68.4 | |||||||||||||||
Cancer and Critical Illness | 19.3 | 8.4 | 17.8 | 56.5 | 13.2 | 49.9 | |||||||||||||||
Total Sales | $ | 120.8 | 13.0 | $ | 106.9 | $ | 356.9 | 11.6 | $ | 319.9 | |||||||||||
Sales by Market Sector | |||||||||||||||||||||
Commercial | |||||||||||||||||||||
Core Market (< 1,000 employees) | $ | 76.2 | 18.1 | % | $ | 64.5 | $ | 230.0 | 14.3 | % | $ | 201.2 | |||||||||
Large Case Market | 16.7 | 36.9 | 12.2 | 52.6 | 13.9 | 46.2 | |||||||||||||||
Subtotal | 92.9 | 21.1 | 76.7 | 282.6 | 14.2 | 247.4 | |||||||||||||||
Public Sector | 27.9 | (7.6 | ) | 30.2 | 74.3 | 2.5 | 72.5 | ||||||||||||||
Total Sales | $ | 120.8 | 13.0 | $ | 106.9 | $ | 356.9 | 11.6 | $ | 319.9 |
(in millions of dollars, except ratios) | |||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
2018 | % Change | 2017 | 2018 | % Change | 2017 | ||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||
Premium Income | |||||||||||||||||||||
Individual Disability | $ | 102.7 | (12.9 | )% | $ | 117.9 | $ | 319.0 | (10.8 | )% | $ | 357.7 | |||||||||
Long-term Care | 163.0 | 0.4 | 162.4 | 485.8 | (0.1 | ) | 486.4 | ||||||||||||||
All Other | 1.9 | (13.6 | ) | 2.2 | 6.5 | (3.0 | ) | 6.7 | |||||||||||||
Total Premium Income | 267.6 | (5.3 | ) | 282.5 | 811.3 | (4.6 | ) | 850.8 | |||||||||||||
Net Investment Income | 348.0 | 3.2 | 337.2 | 1,031.3 | 1.9 | 1,012.5 | |||||||||||||||
Other Income | 18.9 | — | 18.9 | 56.8 | (5.2 | ) | 59.9 | ||||||||||||||
Total | 634.5 | (0.6 | ) | 638.6 | 1,899.4 | (1.2 | ) | 1,923.2 | |||||||||||||
Benefits and Expenses | |||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 1,294.5 | 135.2 | 550.4 | 2,382.1 | 44.7 | 1,646.7 | |||||||||||||||
Commissions | 20.9 | (7.9 | ) | 22.7 | 63.3 | (7.0 | ) | 68.1 | |||||||||||||
Interest and Debt Expense | 1.8 | 5.9 | 1.7 | 5.2 | 2.0 | 5.1 | |||||||||||||||
Other Expenses | 35.9 | (3.5 | ) | 37.2 | 108.9 | (3.2 | ) | 112.5 | |||||||||||||
Total | 1,353.1 | 121.1 | 612.0 | 2,559.5 | 39.7 | 1,832.4 | |||||||||||||||
Income (Loss) Before Income Tax and Net Realized Investment Gains and Losses | (718.6 | ) | N.M. | 26.6 | (660.1 | ) | N.M. | 90.8 | |||||||||||||
Long-term Care Reserve Increase | 750.8 | N.M. | — | 750.8 | N.M. | — | |||||||||||||||
Adjusted Operating Income | $ | 32.2 | 21.1 | $ | 26.6 | $ | 90.7 | (0.1 | ) | $ | 90.8 | ||||||||||
Interest Adjusted Loss Ratios: | |||||||||||||||||||||
Individual Disability | 80.5 | % | 82.4 | % | 80.1 | % | 82.8 | % | |||||||||||||
Long-term Care | 548.2 | % | 93.3 | % | 248.2 | % | 90.5 | % | |||||||||||||
Long-term Care Excluding Reserve Increase | 87.5 | % | 93.7 | % | |||||||||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||
Other Expense Ratio | 13.4 | % | 13.2 | % | 13.4 | % | 13.2 | % | |||||||||||||
Income (Loss) Ratio | (268.5 | )% | 9.4 | % | (81.4 | )% | 10.7 | % | |||||||||||||
Adjusted Operating Income Ratio | 12.0 | % | 11.2 | % | |||||||||||||||||
Persistency: | |||||||||||||||||||||
Individual Disability | 88.7 | % | 89.8 | % | |||||||||||||||||
Long-term Care | 95.6 | % | 95.5 | % | |||||||||||||||||
N.M. = not a meaningful percentage |
(in millions of dollars) | |||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||
2018 | % Change | 2017 | 2018 | % Change | 2017 | ||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||
Net Investment Income | $ | 7.8 | 23.8 | % | $ | 6.3 | $ | 22.5 | 58.5 | % | $ | 14.2 | |||||||||
Other Income | 0.1 | (75.0 | ) | 0.4 | 1.6 | 6.7 | 1.5 | ||||||||||||||
Total | 7.9 | 17.9 | 6.7 | 24.1 | 53.5 | 15.7 | |||||||||||||||
Interest and Other Expenses | 55.0 | 28.2 | 42.9 | 147.0 | (1.9 | ) | 149.9 | ||||||||||||||
Loss Before Income Tax and Net Realized Investment Gains and Losses | (47.1 | ) | (30.1 | ) | (36.2 | ) | (122.9 | ) | 8.4 | (134.2 | ) | ||||||||||
Loss from Guaranty Fund Assessment | — | — | — | — | N.M. | 20.6 | |||||||||||||||
Adjusted Operating Loss | $ | (47.1 | ) | (30.1 | ) | $ | (36.2 | ) | $ | (122.9 | ) | (8.2 | ) | $ | (113.6 | ) | |||||
N.M. = not a meaningful percentage |
(in millions of dollars) | ||||||||||||||||||||||||
Classification | Fair Value | Net Unrealized Gain | 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 | $ | 2,852.3 | $ | 131.9 | $ | 1,070.2 | $ | 43.7 | $ | 1,782.1 | $ | 175.6 | ||||||||||||
Capital Goods | 4,073.7 | 267.2 | 1,091.4 | 55.8 | 2,982.3 | 323.0 | ||||||||||||||||||
Communications | 2,854.1 | 263.6 | 713.1 | 32.3 | 2,141.0 | 295.9 | ||||||||||||||||||
Consumer Cyclical | 1,355.6 | 70.0 | 467.7 | 12.3 | 887.9 | 82.3 | ||||||||||||||||||
Consumer Non-Cyclical | 6,596.8 | 338.3 | 2,498.8 | 132.7 | 4,098.0 | 471.0 | ||||||||||||||||||
Energy | 4,661.8 | 410.4 | 930.2 | 37.3 | 3,731.6 | 447.7 | ||||||||||||||||||
Financial Institutions | 3,227.6 | 141.5 | 1,069.2 | 34.2 | 2,158.4 | 175.7 | ||||||||||||||||||
Mortgage/Asset-Backed | 1,627.0 | 36.0 | 728.3 | 21.1 | 898.7 | 57.1 | ||||||||||||||||||
Sovereigns | 798.4 | 154.3 | 46.7 | 1.7 | 751.7 | 156.0 | ||||||||||||||||||
Technology | 1,541.5 | 37.2 | 548.7 | 14.8 | 992.8 | 52.0 | ||||||||||||||||||
Transportation | 1,993.1 | 151.4 | 625.3 | 22.0 | 1,367.8 | 173.4 | ||||||||||||||||||
U.S. Government Agencies and Municipalities | 4,099.5 | 358.6 | 965.3 | 35.3 | 3,134.2 | 393.9 | ||||||||||||||||||
Public Utilities | 7,389.9 | 797.7 | 861.8 | 53.4 | 6,528.1 | 851.1 | ||||||||||||||||||
Total | $ | 43,071.3 | $ | 3,158.1 | $ | 11,616.7 | $ | 496.6 | $ | 31,454.6 | $ | 3,654.7 |
(in millions of dollars) | |||||||||||||||||||
2018 | 2017 | ||||||||||||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||||||
Fair Value < 100% >= 70% of Amortized Cost | |||||||||||||||||||
<= 90 days | $ | 25.9 | $ | 56.0 | $ | 79.8 | $ | 20.8 | $ | 12.4 | |||||||||
> 90 <= 180 days | 61.7 | 149.1 | 40.5 | 9.5 | 2.1 | ||||||||||||||
> 180 <= 270 days | 158.2 | 40.3 | 30.5 | — | 1.8 | ||||||||||||||
> 270 days <= 1 year | 43.9 | 38.8 | — | 1.2 | 24.5 | ||||||||||||||
> 1 year <= 2 years | 95.7 | 51.3 | 44.8 | 32.1 | 9.2 | ||||||||||||||
> 2 years <= 3 years | 9.7 | 2.0 | 2.9 | 1.7 | 2.7 | ||||||||||||||
> 3 years | 1.9 | 1.2 | 0.2 | — | — | ||||||||||||||
Sub-total | 397.0 | 338.7 | 198.7 | 65.3 | 52.7 | ||||||||||||||
Fair Value < 70% >= 40% of Amortized Cost | |||||||||||||||||||
<= 90 days | — | — | — | 1.2 | — | ||||||||||||||
> 180 <= 270 days | — | 13.9 | — | — | — | ||||||||||||||
> 270 days <= 1 year | 14.2 | — | — | — | — | ||||||||||||||
Sub-total | 14.2 | 13.9 | — | 1.2 | — | ||||||||||||||
Total | $ | 411.2 | $ | 352.6 | $ | 198.7 | $ | 66.5 | $ | 52.7 |
(in millions of dollars) | |||||||||||||||||||
2018 | 2017 | ||||||||||||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||||||
Fair Value < 100% >= 70% of Amortized Cost | |||||||||||||||||||
<= 90 days | $ | 2.3 | $ | 6.4 | $ | 19.8 | $ | 4.7 | $ | 0.7 | |||||||||
> 90 <= 180 days | 6.9 | 29.3 | 13.6 | 1.5 | 0.3 | ||||||||||||||
> 180 <= 270 days | 19.5 | 14.8 | 2.9 | 0.4 | 1.2 | ||||||||||||||
> 270 days <= 1 year | 11.5 | 4.7 | — | 0.7 | — | ||||||||||||||
> 1 year <= 2 years | 13.8 | 10.3 | 10.5 | 2.7 | 3.2 | ||||||||||||||
> 2 years <= 3 years | 1.9 | 9.5 | 13.1 | 13.1 | 18.2 | ||||||||||||||
> 3 years | 24.4 | 22.5 | 26.6 | 19.6 | 14.4 | ||||||||||||||
Sub-total | 80.3 | 97.5 | 86.5 | 42.7 | 38.0 | ||||||||||||||
Fair Value < 70% >= 40% of Amortized Cost | |||||||||||||||||||
> 2 years <= 3 years | — | 5.0 | 7.9 | 7.3 | 10.6 | ||||||||||||||
> 3 years | 5.1 | — | — | 7.0 | 9.3 | ||||||||||||||
Sub-total | 5.1 | 5.0 | 7.9 | 14.3 | 19.9 | ||||||||||||||
Total | $ | 85.4 | $ | 102.5 | $ | 94.4 | $ | 57.0 | $ | 57.9 |
(in millions of dollars) | |||||||
Nine Months Ended September 30 | |||||||
2018 | 2017 | ||||||
Net Cash Provided by Operating Activities | $ | 1,083.5 | $ | 876.6 | |||
Net Cash Used by Investing Activities | (587.4 | ) | (388.5 | ) | |||
Net Cash Used by Financing Activities | (359.3 | ) | (518.4 | ) | |||
Net Increase (Decrease) in Cash and Bank Deposits | $ | 136.8 | $ | (30.3 | ) |
AM Best | Fitch | Moody's | S&P | ||||
Outlook | Stable | Negative | Stable | Stable | |||
Issuer Credit Ratings | bbb | BBB | Baa2 | BBB | |||
Financial Strength Ratings | |||||||
Provident Life and Accident Insurance Company | A | A | A2 | A | |||
Provident Life and Casualty Insurance Company | A | A | NR | NR | |||
Unum Life Insurance Company of America | A | A | A2 | A | |||
First Unum Life Insurance Company | A | A | A2 | A | |||
Colonial Life & Accident Insurance Company | A | A | A2 | A | |||
The Paul Revere Life Insurance Company | A | A | A2 | A | |||
Starmount Life Insurance Company | A- | NR | NR | NR | |||
Unum Insurance Company | A- | A | A2 | NR | |||
Unum Limited | NR | NR | NR | A- |
Exhibit 101 | The following financial statements from Unum Group's Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, filed on October 25, 2018, formatted in XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Stockholders' Equity, (v) Consolidated Statements of Cash Flows, (vi) the Notes to Consolidated Financial Statements. |
Unum Group | ||
(Registrant) | ||
Date: October 25, 2018 | By: | /s/ John F. McGarry |
John F. McGarry | ||
Executive Vice President and Chief Financial Officer | ||
Date: October 25, 2018 | By: | /s/ Daniel J. Waxenberg |
Daniel J. Waxenberg | ||
Senior Vice President, Chief Accounting Officer |
Date: October 25, 2018 | /s/ Richard P. McKenney |
Richard P. McKenney | |
President and Chief Executive Officer |
Date: October 25, 2018 | /s/ John F. McGarry |
John F. McGarry | |
Executive Vice President and Chief Financial Officer |
Date: October 25, 2018 | /s/ Richard P. McKenney |
Richard P. McKenney | |
President and Chief Executive Officer |
Date: October 25, 2018 | /s/ John F. McGarry |
John F. McGarry | |
Executive Vice President and Chief Financial Officer |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Oct. 23, 2018 |
|
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 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 218,748,493 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Investments | ||
Fixed Maturity Securities, Amortized Cost | $ 39,913.2 | $ 39,780.5 |
Stockholders' Equity | ||
Common Stock, Par | $ 0.10 | $ 0.10 |
Common Stock, Authorized | 725,000,000 | 725,000,000 |
Common Stock, Issued | 305,069,982 | 304,448,032 |
Treasury Stock, Shares at Cost | 86,347,280 | 81,900,950 |
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Revenue | ||||
Premium Income | $ 2,251.8 | $ 2,153.6 | $ 6,722.8 | $ 6,438.7 |
Net Investment Income | 619.2 | 609.0 | 1,845.1 | 1,831.9 |
Realized Investment Gain (Loss) | ||||
Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | 0.0 | 0.0 | 1.0 | 0.0 |
Net Realized Investment Gain, Excluding Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | 6.7 | 9.8 | 2.9 | 28.9 |
Net Realized Investment Gain | 6.7 | 9.8 | 1.9 | 28.9 |
Other Income | 50.1 | 46.7 | 147.9 | 148.1 |
Total Revenue | 2,927.8 | 2,819.1 | 8,717.7 | 8,447.6 |
Benefits and Expenses | ||||
Benefits and Change in Reserves for Future Benefits | 2,578.9 | 1,765.6 | 6,190.9 | 5,266.6 |
Commissions | 276.8 | 262.4 | 832.6 | 793.9 |
Interest and Debt Expense | 42.7 | 40.1 | 125.3 | 119.8 |
Deferral of Acquisition Costs | (166.8) | (154.8) | (501.8) | (470.1) |
Amortization of Deferred Acquisition Costs | 136.9 | 123.7 | 428.6 | 403.5 |
Compensation Expense | 224.2 | 223.8 | 666.1 | 650.6 |
Other Expenses | 212.9 | 191.5 | 657.9 | 624.6 |
Total Benefits and Expenses | 3,305.6 | 2,452.3 | 8,399.6 | 7,388.9 |
Income (Loss) Before Income Tax Expense (Benefit) | (377.8) | 366.8 | 318.1 | 1,058.7 |
Income Tax (Benefit) | ||||
Current | 2.7 | 139.4 | 172.7 | 301.8 |
Deferred | (95.8) | (24.9) | (128.9) | 29.6 |
Total Income Tax Expense (Benefit) | (93.1) | 114.5 | 43.8 | 331.4 |
Net Income (Loss) | $ (284.7) | $ 252.3 | $ 274.3 | $ 727.3 |
Net Income (Loss) Per Common Share | ||||
Basic | $ (1.30) | $ 1.12 | $ 1.24 | $ 3.20 |
Assuming Dilution | $ (1.30) | $ 1.12 | $ 1.24 | $ 3.19 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Change in Net Unrealized Gain on Securities Before Adjustment, Tax Expense (Benefit) | $ (80.6) | $ 39.2 | $ (525.0) | $ 334.7 |
Change in Adjustment to Deferred Acquisition Costs and Reserves for Future Policy and Contract Benefits, Net of Reinsurance, Tax Expense (Benefit) | (69.8) | (31.8) | 276.1 | (261.7) |
Change in Net Gain on Hedges, Tax Benefit | 4.4 | 7.4 | 8.3 | 19.7 |
Change in Foreign Currency Translation Adjustment, Tax Benefit | 0.0 | 0.0 | 0.3 | 0.0 |
Change in Unrecognized Pension and Postretirement Benefit Costs, Tax Expense | $ 1.3 | $ 1.5 | $ 4.0 | $ 4.3 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Retained Earnings | ||
Dividends to Stockholders, per common share | $ 0.720 | $ 0.630 |
Basis of Presentation |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
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) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes included in our annual report on Form 10-K for the year ended December 31, 2017. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Interim results are not necessarily indicative of full year performance. |
Accounting Developments |
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New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Developments | Accounting Developments Accounting Updates Adopted in 2018:
Summary of Financial Statement Impacts of Accounting Updates Adopted in 2018:
For the adoption of these updates, certain reclassifications have been made to prior year amounts in order to conform to current year presentation. Accounting Updates Outstanding:
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Accounting Updates Outstanding | 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 | Fair Value Measurements for Financial Instruments Carried at Fair Value We report fixed maturity securities, which are classified as available-for-sale securities, derivative financial instruments, and unrestricted equity securities at fair value in our consolidated balance sheets. We report our investments in private equity partnerships at our share of the partnerships' net asset value (NAV) as a practical expedient for fair value. 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. We classify financial instruments in accordance with a fair value hierarchy consisting of three levels based on the observability of valuation inputs:
Valuation Methodologies of Financial Instruments Measured at Fair Value 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 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 2018, we have applied valuation approaches and techniques on a consistent basis to similar assets and liabilities and consistent with those approaches and techniques used at year end 2017. Fixed Maturity and Equity Securities 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 disclosed below. 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. 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. 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. At September 30, 2018, 20.5 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 remaining 79.5 percent of our fixed maturity securities were valued based on non-binding quotes or other observable and unobservable inputs, as discussed below:
Derivatives 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. We consider transactions in inactive markets to be less representative of fair value. We use all available observable inputs when measuring fair value, but when significant unobservable inputs are used, we classify these assets or liabilities as Level 3. Private Equity Partnerships Our private equity partnerships represent funds that are primarily invested in private credit, private equity, and real assets, as described below. Distributions received from the funds arise from income generated by the underlying investments as well as the liquidation of the underlying investments. There is generally not a public market for these investments. The following table presents additional information about our private equity partnerships as of September 30, 2018, including commitments for additional investments which may or may not be funded:
The following tables present information about financial instruments measured at fair value on a recurring basis by fair value level, based on the observability of the inputs used:
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 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 period end were $6.1 million and $2.1 million for the three and nine months ended September 30, 2018, respectively, and $6.7 million and $21.5 million for the three and nine months ended September 30, 2017, 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. 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. Fair Value Measurements for Financial Instruments Not Carried at Fair Value The methods and assumptions used to estimate fair values of financial instruments not carried at fair value are discussed as follows: 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. 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 $3,451.5 million and $3,307.5 million as of September 30, 2018 and December 31, 2017, 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. Miscellaneous Long-term Investments: Carrying amounts for tax credit partnerships equal the unamortized balance of our contractual commitments and approximate fair value. Our shares of FHLB common stock are carried at cost, which approximates fair value. 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. 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. 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 of these financial instruments approximate fair value. The following table presents the carrying amounts and estimated fair values of our financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:
The carrying values of financial instruments such as short-term investments, cash and bank deposits, accounts and premiums receivable, accrued investment income, securities lending agreements, and short-term debt approximate fair value due to the short-term nature of the instruments. As such, these financial instruments are not included in the above chart. 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. |
Investments |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Fixed Maturity Securities At September 30, 2018 and December 31, 2017, 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.
The following chart depicts an analysis of our fixed maturity security portfolio between investment-grade and below-investment-grade categories as of September 30, 2018:
The 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. Below-investment-grade fixed maturity securities are generally more likely to develop credit concerns than investment-grade securities. At September 30, 2018, 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 September 30, 2018, we held 550 individual investment-grade fixed maturity securities and 91 individual below-investment-grade fixed maturity securities that were in an unrealized loss position, of which 174 investment-grade fixed maturity securities and 23 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 September 30, 2018 or December 31, 2017 for which a portion of an other-than-temporary impairment was recognized in accumulated other comprehensive income. At September 30, 2018, we had commitments of $115.1 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 September 30, 2018, the carrying amount of our variable interest entity investments that are not consolidated in our financial statements was $567.3 million, comprised of $100.6 million of tax credit partnerships and $466.7 million of private equity partnerships. At December 31, 2017, the carrying amount of our variable interest entity investments that are not consolidated in our financial statements was $535.4 million, comprised of $128.2 million of tax credit partnerships and $407.2 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 operations 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 $3.7 million of unfunded unconditional commitments at September 30, 2018. See Note 3 for commitments to fund private equity partnerships. 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 which we contributed into the trust at the time it was established. There are no restrictions on the asset held in this trust, and the trust is free to dispose of the asset at any time. The fair values of the bond were $155.6 million and $154.1 million as of September 30, 2018 and December 31, 2017, respectively. The bond is reported as a component of fixed maturity securities in our consolidated balance sheets. 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:
At September 30, 2018 we held one mortgage loan that was greater than 90 days past due regarding principal and/or interest payments which was modified in a troubled debt restructuring during the second quarter of 2018. The loan had a principal balance of $3.6 million prior to the restructuring, wherein the terms of the loan were modified to reduce monthly payments to interest-only at the current note rate and to permit a discounted payoff by September 2018. At the time of restructuring in the second quarter of 2018, we recorded an allowance for credit losses and recognized an impairment loss of $0.2 million resulting in a net realizable value for the loan of $3.4 million. The payoff of the loan did not occur in September 2018 and therefore, the loan was considered impaired as of September 30, 2018. No further allowance for credit losses was necessary for the loan. There were no troubled debt restructurings during the three and nine months ended September 30, 2017. At December 31, 2017, we held no mortgage loans that were greater than 90 days past due regarding principal and/or interest payments. Our average investment in impaired mortgage loans was $1.1 million for the three and nine months ended September 30, 2018. We did not hold any impaired mortgage loans during the three and nine months ended September 30, 2017, nor did we recognize any interest income on mortgage loans subsequent to impairment during the three and nine months ended September 30, 2018 or 2017. 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. There was no activity in the allowance for credit losses during the three and nine months ended September 30, 2018 or 2017 other than the previously mentioned impairment loss of $0.2 million. At September 30, 2018, we had commitments of $47.3 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 September 30, 2018, the carrying amount of fixed maturity securities loaned to third parties under our securities lending program was $181.9 million, for which we received collateral in the form of cash and securities of $2.1 million and $187.6 million, respectively. As of December 31, 2017, the carrying amount of fixed maturity securities loaned to third parties under our securities lending program was $159.2 million, for which we received collateral in the form of cash and securities of $30.5 million and $135.6 million, respectively. We had no outstanding repurchase agreements at September 30, 2018 or December 31, 2017. 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. Advances received from the FHLB are used for the purchase of fixed maturity securities. Additional common stock purchases may be required, based on the amount of funds we borrow from the FHLBs. The carrying value of common stock owned, collateral posted, and advances received are as follows:
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 5 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 operations is as follows:
1 The net unrealized loss recognized in net investment income for the three and nine months ended September 30, 2018 related to equity securities still held at September 30, 2018 was $0.3 million and $0.6 million, respectively. 2 The net unrealized gain recognized in net investment income for the three and nine months ended September 30, 2018 related to private equity partnerships still held at September 30, 2018 was $2.7 million and $8.2 million, respectively. 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, 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 either cash flow or fair value 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, credit losses on securities owned, and interest rate risk 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. Credit exposure on derivatives is limited to the value of those contracts in a net gain position, including accrued interest receivable less collateral held. At September 30, 2018, we had no credit exposure on derivatives. The table below summarizes the nature and amount of collateral received from and posted to our derivative counterparties.
See Note 4 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 $46.5 million and $52.2 million at September 30, 2018 and December 31, 2017, 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 September 30, 2018 and December 31, 2017, we had $302.7 million and $343.9 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. As of September 30, 2018, we expect to amortize approximately $68.4 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 September 30, 2018, we are hedging the variability of future cash flows associated with forecasted transactions through the year 2038. Fair Value Hedges As of December 31, 2017, we had $48.0 million notional amount of receive variable, pay fixed interest rate swaps to hedge the changes in fair value of certain fixed rate securities held which matured in the second quarter of 2018 along with the hedged securities. These swaps effectively converted the associated fixed rate securities into floating rate securities, which were 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 $0.6 million for the nine months ended September 30, 2018, and $0.8 million and $2.8 million for the three and nine months ended September 30, 2017, respectively, with an offsetting gain on the related interest rate swaps. As of September 30, 2018, we had $58.3 million notional amount of receive fixed, pay fixed, open current and forward foreign currency interest rate swaps to hedge fixed income foreign currency-denominated securities. The change in fair value of the hedged fixed maturity securities attributable to the change in the foreign currency exchange rate resulted in a loss of $0.3 million and $1.7 million during the three and nine months ended September 30, 2018, respectively, with an offsetting gain on the related forward foreign currency interest rate swaps. As of September 30, 2018 and December 31, 2017, we had $250.0 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. We did not have any change in fair value of the hedged debt attributable to the hedged benchmark interest rate during the three months ended September 30, 2018. The change in fair value of the hedged debt attributable to the hedged benchmark interest rate resulted in a gain (loss) of $2.8 million for the nine months ended September 30, 2018, and $0.3 million and $(0.3) million for the three and nine months ended September 30, 2017, respectively, with an offsetting gain (loss) on the related interest rate swaps. The following table summarizes the carrying amount of hedged assets and liabilities and the related cumulative basis adjustments related to our fair value hedges.
For the three and nine months ended September 30, 2018, $1.2 million and $0.2 million of the derivative instruments' gain was excluded from the assessment of hedge effectiveness. For the three and nine months ended September 30, 2017, 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 September 30, 2018 and December 31, 2017, we held $173.7 million and $192.6 million, respectively, notional amount of receive fixed, pay fixed, foreign currency interest rate swaps. These derivatives are not designated as hedges, and as such, changes in fair value related to these derivatives are reported in earnings as a component of net realized investment gain or loss. As of September 30, 2018 and December 31, 2017, we held $11.2 million and $70.0 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. As of December 31, 2016, we held $3.5 million notional amount of a receive variable, pay fixed interest rate swap acquired through our purchase of Starmount in the third quarter of 2016. This swap effectively converted Starmount's floating rate long-term debt into fixed rate debt. During the second quarter of 2017, we purchased and retired the debt and terminated the interest rate swap. We recorded a loss of $0.1 million on the swap termination in our consolidated statements of operations as a component of net realized investment gains and losses. See Note 12. 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 of derivative financial instruments designated as hedging instruments, as reported in our consolidated statements of operations.
The following table summarizes the location of gains and losses of derivative financial instruments designated as cash flow hedging instruments, as reported in our consolidated statements of comprehensive income (loss).
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 operations.
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Accumulated Other Comprehensive Income (Loss) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Components of our accumulated other comprehensive income (loss), after tax, and related changes are as follows:
The net unrealized gain (loss) on securities consists of the following components:
Amounts reclassified from accumulated other comprehensive income or loss were recognized in our consolidated statements of operations as follows:
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Liability for Unpaid Claims and CAE Liability for Unpaid Claims |
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Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Future Policy Benefits and 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 of the period's claim payments relative to prior years at our average reserve discount rate for the respective periods. 2018 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 the third quarter of 2018, were valued based on assumptions established as of December 31, 2014, the date of our last assumption update under 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. During the third quarter of 2018, we completed our annual review of policy reserve adequacy, which incorporated our most recent experience and included a review of all assumptions, including active policy terminations, claims incidence, claim terminations, morbidity, premium rate increases, and new money yield rates. The review utilized internal and external data and outside consulting firms for quality assurance and industry benchmarking. Based on our analysis, during the third quarter of 2018, we updated our reserve assumptions and determined that our policy and claim reserves should be increased by $750.8 million, or $593.1 million after tax, to reflect our current estimate of future benefit obligations. This increase was primarily driven by the update to our liability and interest rate assumptions, particularly claims incidence and claim termination rates, which resulted in an increase to reserves of approximately $2.2 billion. Partially offsetting the increase was the update to our assumptions for premium rate increases which decreased reserves approximately $1.4 billion, resulting in the net increase to reserves of $750.8 million. Of this amount, approximately $236 million was related to our liability for unpaid claims and claims adjustment expenses, which can be primarily attributed to prior year incurred claims, thereby impacting the results shown in the preceding chart. "Incurred Related to Prior Years - All Other Incurred", excluding the third quarter of 2018 long-term care reserve increase discussed in the preceding paragraphs, is primarily impacted by the level of claim resolutions in the period relative to the long-term expectations reflected in the reserves in our Unum US group disability and Colonial Life products. 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. 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. |
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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. Acquisition of Business On October 1, 2018, we completed our purchase of Pramerica Zycie TUiR SA ("Pramerica"), a financial protection benefits provider in Poland. The acquisition of Pramerica will expand our European presence, which we believe to be an attractive market for financial protection benefits. This acquisition is not expected to materially impact our results of operations or financial position for 2018. Segment information is as follows:
We measure and analyze our segment performance on the basis of "adjusted operating revenue" and "adjusted operating income" or "adjusted operating loss", which differ from total revenue and income (loss) before income tax as presented in our consolidated statements of operations due to the exclusion of net realized investment gains and losses and certain other items as specified in the reconciliations below. We believe adjusted operating revenue and adjusted operating income or loss are better performance measures and better indicators of the revenue and profitability and underlying trends in our business. These performance measures are in accordance with GAAP guidance for segment reporting, but they should not be viewed as a substitute for total revenue, income (loss) before income tax, or net income (loss). 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. 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. See Notes 7 and 11 for further discussion regarding the long-term care reserve increase and the loss from a guaranty fund assessment. A reconciliation of total revenue to "adjusted operating revenue" and income (loss) before income tax to "adjusted operating income" is as follows:
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Employee Benefit Plans |
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Defined Benefit Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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. The following table provides the components of the net periodic benefit cost (credit) for the defined benefit pension and OPEB plans.
The service cost component of net periodic pension and postretirement benefit cost is included as a component of compensation expense in our consolidated statements of operations. All other components of net periodic pension and postretirement benefit cost are included in other expenses. |
Stockholders' Equity and Earnings (Loss) Per Common Share |
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Earnings Per Share Disclosure | Earnings (Loss) Per Common Share Net income (loss) 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 $23.35 to $26.29, the nonvested restricted stock units have grant prices ranging from $27.85 to $55.26, and the nonvested performance share units have grant prices ranging from $27.85 to $49.86. 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 are not used when computing earnings per share assuming dilution if the results would be antidilutive, such as when a net loss is reported. For the three and nine months ended September 30, 2018, there were approximately 1.0 million and 0.6 million potential common shares, respectively, that were excluded in the computation of diluted earnings per share because the impact would be antidilutive, based on then current market prices and the effects of a reported net loss. There were approximately 0.4 million potential common shares that were antidilutive for both the three and nine months ended September 30, 2017. |
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Stockholders' Equity Disclosure | Common Stock During the second quarter of 2018, our board of directors authorized the repurchase of up to $750.0 million of Unum Group's outstanding common stock through November 24, 2019. This authorization replaced the previous authorization of $750.0 million that was scheduled to expire on November 25, 2018. The remaining repurchase amount under the new program was $650.0 million at September 30, 2018. 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 $0.1 million for the three months ended September 30, 2017, and $0.2 million for each of the nine months ended September 30, 2018 and 2017. 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. |
Commitments and Contingent Liabilities |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||
Commitments and Contingencies Disclosure | Commitments and Contingent Liabilities Contingent Liabilities We are a defendant in a number of litigation matters that 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. 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 Similar to other insurers, we were recently the subject of 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 cooperated fully with this examination and in the fourth quarter of 2017, we started the process to reach a Global Resolution Agreement with the third party regarding settlement of the examination, which we finalized in January of 2018. Under the terms of the agreement, the third party acting on behalf of the signatory states compared insured data to the Social Security Administration's Death Master File (SSDMF) to identify deceased insureds and contract holders where a valid claim has not been made. During the fourth quarter of 2017, we established reserves which reflect our estimate of the liability expected to be paid as we execute on the terms of the settlement. We also are cooperating with a Delaware Market Conduct examination involving the same issue, which is currently inactive. The legal and regulatory environment around unclaimed death benefits continues to evolve. It is possible that the current settlement and/or similar investigations by other state jurisdictions may result in 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 2009, a Pennsylvania-based insurance company and its affiliates were ordered into rehabilitation, and the Pennsylvania Insurance Commissioner, who was appointed as the Rehabilitator, filed petitions for liquidation with the Commonwealth Court of Pennsylvania. Under Pennsylvania law, payment of covered claims and other related insurance obligations are provided, within prescribed limits, by state guaranty associations. These guaranty associations assess fees to meet these obligations on insurance companies that sell insurance within the state, which are generally based on a company's pro rata portion of average premiums written or received for several years prior to the insolvency. In March 2017, a formal order of liquidation was issued, and as such, we were subject to an assessment by those guaranty associations that are responsible for policyholder claims, and accordingly accrued, in the first quarter of 2017, an estimated loss contingency. We continue to submit payment to satisfy this assessment as requests for payment are received from the guaranty associations. Securities Class Actions: Three alleged securities class action lawsuits have been filed against Unum Group and individual defendants as follows:
These lawsuits are in a very preliminary stage, the outcome is uncertain, and the Company is unable to estimate a range of reasonably possible losses. Reserves have not been established for these matters. Although we believe these claims lack merit, an adverse outcome in one or more of these actions could, depending on the nature, scope, and amount of the ruling, materially adversely affect our consolidated results of operations in a period. Shareholder Derivative Actions: Two alleged derivative lawsuits have been filed against individual defendants and Unum Group, as nominal defendant, as follows:
These lawsuits are in a very preliminary stage, the outcome is uncertain, and the Company is unable to estimate a range of reasonably possible losses. Reserves have not been established for these matters. Although we believe these claims lack merit, an adverse outcome in one or more of these actions could, depending on the nature, scope, and amount of the ruling, materially adversely affect our consolidated results of operations in a period. |
Other |
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Sep. 30, 2018 | |
Debt and Other Disclosures [Abstract] | |
Debt Disclosure | Debt In July 2018, our $200.0 million 7.00% senior unsecured notes matured. In May 2018, we issued $300.0 million of 6.25% junior subordinated notes due 2058. The notes are redeemable at or above par on or after June 15, 2023 and rank equally in the right of payment with our other junior subordinated debt securities. During the nine months ended September 30, 2018, we made principal payments of $45.0 million on our senior secured non-recourse notes issued by Northwind Holdings, LLC. At September 30, 2018, letters of credit totaling $2.1 million had been issued from the credit facility, but there were no borrowed amounts outstanding. In June 2017, we purchased and retired the remaining $3.4 million of principal on our senior secured floating rate notes acquired through our purchase of Starmount. In conjunction with this retirement, we also terminated the interest rate swap associated with the hedge of these notes and recorded a $0.1 million loss in our consolidated statements of operations as a component of net realized investment gains and losses. See Note 5 for further discussion. |
Income Tax Disclosure | Income Tax On December 22, 2017, the U.S. Federal government enacted the TCJA, which reduces the federal corporate tax rate from 35 percent to 21 percent effective January 1, 2018. Securities and Exchange Commission Staff Accounting Bulletin (SAB) 118 has provided guidance for companies that have not completed their accounting for the income tax effects of the TCJA, allowing for a measurement period of up to one year after the enactment date to finalize the recording of the related tax impacts. During the fourth quarter of 2017, our income tax expense included a provisional benefit of $31.5 million, consisting of a $97.9 million benefit related to the revaluation of our net deferred tax liabilities associated with our U.S. operations to the newly enacted U.S. corporate tax rate and a tax expense of $66.4 million resulting from the tax on undistributed and previously untaxed foreign earnings and profits (Repatriation Tax). As of September 30, 2018, we have not completed our accounting for the tax effects of the enactment of the TCJA; however, we increased our provisional Repatriation Tax estimate by $11.5 million to $77.9 million. We will continue to refine our calculations as additional analysis is completed and record the final amounts during the one year measurement period after the enactment date as allowed by SAB 118. Tax rate estimates recorded at December 31, 2017 and September 30, 2018 may be impacted by changes in accounting and tax interpretations of the TCJA legislation. During the third quarter of 2018, we recorded a $266.5 million gross unrecognized tax benefit liability for a tax reserving position we have taken on our 2017 tax return which, if recognized, would decrease our tax expense by $112.9 million. We recognize interest expense and penalties, if applicable, related to unrecognized tax benefits in tax expense, net of federal income tax. We have not recorded penalties with respect to the unrecognized tax benefit recorded in the third quarter of 2018 as the technical merits of the position have authority to prevent any assessment of penalty. We have not recorded interest with respect to the unrecognized tax benefit, as we currently have sufficient funds on account with the IRS to prevent the accrual of interest. We believe it is reasonably possible this item could reverse in the next 12 months. |
Basis of Presentation (Policies) |
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Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting | 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) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes included in our annual report on Form 10-K for the year ended December 31, 2017. |
Accounting Developments Accounting Developments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Updates Adopted in 2018 | Summary of Financial Statement Impacts of Accounting Updates Adopted in 2018:
For the adoption of these updates, certain reclassifications have been made to prior year amounts in order to conform to current year presentation. |
Fair Values of Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | The following table presents additional information about our private equity partnerships as of September 30, 2018, including commitments for additional investments which may or may not be funded:
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Fair Values by Fair Value Heirarchy Input Level | The following tables present information about financial instruments measured at fair value on a recurring basis by fair value level, based on the observability of the inputs used:
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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:
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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 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 period end were $6.1 million and $2.1 million for the three and nine months ended September 30, 2018, respectively, and $6.7 million and $21.5 million for the three and nine months ended September 30, 2017, 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. |
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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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Carrying Amount and Fair Value of Financial Instruments | The following table presents the carrying amounts and estimated fair values of our financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:
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Investments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Fair Values of Securities by Security Type | At September 30, 2018 and December 31, 2017, 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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Available for Sale Debt Securities by External Credit Rating | The following chart depicts an analysis of our fixed maturity security portfolio between investment-grade and below-investment-grade categories as of September 30, 2018:
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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 operations 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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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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Federal Home Loan Bank Common Stock Carrying Amounts, Amounts Posted, and Advances Received | The carrying value of common stock owned, collateral posted, and advances received 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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Net Investment Income | Net Investment Income Net investment income reported in our consolidated statements of operations is as follows:
1 The net unrealized loss recognized in net investment income for the three and nine months ended September 30, 2018 related to equity securities still held at September 30, 2018 was $0.3 million and $0.6 million, respectively. 2 The net unrealized gain recognized in net investment income for the three and nine months ended September 30, 2018 related to private equity partnerships still held at September 30, 2018 was $2.7 million and $8.2 million, respectively. |
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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) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nature and Amount of Collateral Received From and Posted To Derivative Counterparty | The table below summarizes the nature and amount of collateral received from and posted to our derivative counterparties.
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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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Fair Value Hedges Carrying Amount of Hedged Assets and Liabilities and Cumulative Basis Adjustments | The following table summarizes the carrying amount of hedged assets and liabilities and the related cumulative basis adjustments related to our fair value hedges.
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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 of derivative financial instruments designated as hedging instruments, as reported in our consolidated statements of operations.
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Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income | The following table summarizes the location of gains and losses of derivative financial instruments designated as cash flow hedging instruments, as reported in our consolidated statements of comprehensive income (loss).
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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 operations.
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Accumulated Other Comprehensive Income (Tables) |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | Components of our accumulated other comprehensive income (loss), after tax, and related changes are as follows:
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Schedule of Components of Unrealized Gain (Loss) on Securities | The net unrealized gain (loss) on securities consists of the following components:
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Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | Amounts reclassified from accumulated other comprehensive income or loss were recognized in our consolidated statements of operations as follows:
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Liability for Unpaid Claims and CAE Liability for Unpaid Claims (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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. |
Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premium Income by Major Line of Business within Each Segment | Segment information is as follows:
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Selected Operating Statement Data by Segment |
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Assets by Segment |
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Reconciliation of Total Revenue and Income (Loss) before Income Tax by Segment to Adjusted Operating Revenue and Adjusted Operating Income | A reconciliation of total revenue to "adjusted operating revenue" and income (loss) before income tax to "adjusted operating income" is as follows:
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Employee Benefit Plans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Periodic Benefit Costs | The following table provides the components of the net periodic benefit cost (credit) for the defined benefit pension and OPEB plans.
The service cost component of net periodic pension and postretirement benefit cost is included as a component of compensation expense in our consolidated statements of operations. All other components of net periodic pension and postretirement benefit cost are included in other expenses. |
Stockholders' Equity and Earnings (Loss) Per Common Share (Tables) |
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Stockholders' Equity and Earnings Per Common Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Earnings Per Share | Earnings (Loss) Per Common Share Net income (loss) per common share is determined as follows:
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Treasury Stock Transactions | Common Stock During the second quarter of 2018, our board of directors authorized the repurchase of up to $750.0 million of Unum Group's outstanding common stock through November 24, 2019. This authorization replaced the previous authorization of $750.0 million that was scheduled to expire on November 25, 2018. The remaining repurchase amount under the new program was $650.0 million at September 30, 2018. 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 $0.1 million for the three months ended September 30, 2017, and $0.2 million for each of the nine months ended September 30, 2018 and 2017. |
Fair Values of Financial Instruments Private Equity Partnerships (Details) - Private Equity Partnerships $ in Millions |
Sep. 30, 2018
USD ($)
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Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||||||||
Alternative Investments | $ 466.7 | |||||||
Alternative Investments, Unfunded Commitments | 351.6 | |||||||
Private Credit | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||||||||
Alternative Investments | 182.6 | [1] | ||||||
Alternative Investments, Unfunded Commitments | 80.6 | |||||||
Private Credit | Not Redeemable | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||||||||
Alternative Investments | 162.5 | [1] | ||||||
Alternative Investments, Unfunded Commitments | 71.8 | |||||||
Private Credit | Quarterly after 2 year lock with 90 days notice | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||||||||
Alternative Investments | 20.1 | [1] | ||||||
Alternative Investments, Unfunded Commitments | 8.8 | |||||||
Private Equity Limited Partnership | Not Redeemable | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||||||||
Alternative Investments | 126.5 | [2] | ||||||
Alternative Investments, Unfunded Commitments | 186.4 | |||||||
Real Assets | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||||||||
Alternative Investments | 157.6 | [3] | ||||||
Alternative Investments, Unfunded Commitments | 84.6 | |||||||
Real Assets | Not Redeemable | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||||||||
Alternative Investments | 127.4 | [3] | ||||||
Alternative Investments, Unfunded Commitments | 84.6 | |||||||
Real Assets | Quarterly | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||||||||
Alternative Investments | 30.2 | [3] | ||||||
Alternative Investments, Unfunded Commitments | $ 0.0 | |||||||
|
Fair Values of Financial Instruments Carrying Amounts and Estimated Fair Value of Financial Instruments Not Measured at Fair Value (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage Loans, Fair Value Disclosure | $ 2,214.0 | $ 2,306.2 |
Mortgage Loans | 2,222.0 | 2,213.2 |
Policy Loans, Fair Value Disclosure | 3,809.8 | 3,677.5 |
Policy Loans | 3,720.2 | 3,571.1 |
Miscellaneous Long-Term Investments. Fair Value Disclosure | 132.7 | 162.3 |
Financial Instruments, Financial Assets Fair Value Disclosure | 6,156.5 | 6,146.0 |
Long-term Debt, Fair Value Disclosure | 3,117.9 | 3,048.7 |
Long-term Debt | 2,983.5 | 2,738.4 |
Federal Home Loan Bank Funding Agreements, Fair Value Disclosure | 219.5 | 350.0 |
Unfunded Commitments | 3.7 | 3.7 |
Liabilities, Fair Value Disclosure | 3,341.1 | 3,402.4 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage Loans, Fair Value Disclosure | 0.0 | 0.0 |
Policy Loans, Fair Value Disclosure | 0.0 | 0.0 |
Miscellaneous Long-Term Investments. Fair Value Disclosure | 0.0 | 0.0 |
Financial Instruments, Financial Assets Fair Value Disclosure | 0.0 | 0.0 |
Long-term Debt, Fair Value Disclosure | 47.7 | 1,171.8 |
Federal Home Loan Bank Funding Agreements, Fair Value Disclosure | 0.0 | 0.0 |
Unfunded Commitments | 0.0 | 0.0 |
Liabilities, Fair Value Disclosure | 47.7 | 1,171.8 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage Loans, Fair Value Disclosure | 2,214.0 | 2,306.2 |
Policy Loans, Fair Value Disclosure | 0.0 | 0.0 |
Miscellaneous Long-Term Investments. Fair Value Disclosure | 32.1 | 34.1 |
Financial Instruments, Financial Assets Fair Value Disclosure | 2,246.1 | 2,340.3 |
Long-term Debt, Fair Value Disclosure | 3,070.2 | 1,876.9 |
Federal Home Loan Bank Funding Agreements, Fair Value Disclosure | 219.5 | 350.0 |
Unfunded Commitments | 3.7 | 3.7 |
Liabilities, Fair Value Disclosure | 3,293.4 | 2,230.6 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage Loans, Fair Value Disclosure | 0.0 | 0.0 |
Policy Loans, Fair Value Disclosure | 3,809.8 | 3,677.5 |
Miscellaneous Long-Term Investments. Fair Value Disclosure | 100.6 | 128.2 |
Financial Instruments, Financial Assets Fair Value Disclosure | 3,910.4 | 3,805.7 |
Long-term Debt, Fair Value Disclosure | 0.0 | 0.0 |
Federal Home Loan Bank Funding Agreements, Fair Value Disclosure | 0.0 | 0.0 |
Unfunded Commitments | 0.0 | 0.0 |
Liabilities, Fair Value Disclosure | 0.0 | 0.0 |
Reported Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage Loans | 2,222.0 | 2,213.2 |
Policy Loans | 3,720.2 | 3,571.1 |
Miscellaneous Long-Term Investments | 132.7 | 162.3 |
Total Financial Instrument Assets Not Carried at Fair Value | 6,074.9 | 5,946.6 |
Long-term Debt | 2,983.5 | 2,738.4 |
Federal Home Loan Bank Funding Agreements | 219.5 | 350.0 |
Unfunded Commitments | 3.7 | 3.7 |
Total Financial Instrument Liabilities Not Carried at Fair Value | $ 3,206.7 | $ 3,092.1 |
Fair Value of Financial Instruments Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Ceded Policy Loans | $ 3,451.5 | $ 3,451.5 | $ 3,307.5 | ||
Gain (Loss) on Embedded Derivative | $ 6.1 | $ 6.7 | $ 2.1 | $ 21.5 | |
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 | 20.50% | 20.50% | |||
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 | 66.10% | 66.10% | |||
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 | 3.60% | 3.60% | |||
Fair Value Inputs Other Than Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Percentage of Total Fair Value of Fixed Maturities Securities | 79.50% | 79.50% | |||
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 | 9.80% | 9.80% |
Investments Amortized Cost and Fair Values of Securities by Security Type (Detail) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Debt Securities, Available-for-sale | ||
Amortized Cost of Fixed Maturity Securities | $ 39,913.2 | $ 39,780.5 |
Accumulated Gross Unrealized Gain on Securities | 3,654.7 | |
Accumulated Gross Unrealized Loss on Securities | 496.6 | |
Fixed Maturity Securities | 43,071.3 | 45,457.8 |
United States Government and Government Agencies and Authorities | ||
Debt Securities, Available-for-sale | ||
Amortized Cost of Fixed Maturity Securities | 1,691.7 | 1,311.1 |
Accumulated Gross Unrealized Gain on Securities | 113.4 | 176.1 |
Accumulated Gross Unrealized Loss on Securities | 25.6 | 4.7 |
Fixed Maturity Securities | 1,779.5 | 1,482.5 |
States, Municipalities, and Political Subdivisions | ||
Debt Securities, Available-for-sale | ||
Amortized Cost of Fixed Maturity Securities | 2,049.2 | 1,942.8 |
Accumulated Gross Unrealized Gain on Securities | 280.5 | 395.4 |
Accumulated Gross Unrealized Loss on Securities | 9.7 | 1.3 |
Fixed Maturity Securities | 2,320.0 | 2,336.9 |
Foreign Governments | ||
Debt Securities, Available-for-sale | ||
Amortized Cost of Fixed Maturity Securities | 644.1 | 673.0 |
Accumulated Gross Unrealized Gain on Securities | 156.0 | 191.3 |
Accumulated Gross Unrealized Loss on Securities | 1.7 | 0.4 |
Fixed Maturity Securities | 798.4 | 863.9 |
Public Utilities | ||
Debt Securities, Available-for-sale | ||
Amortized Cost of Fixed Maturity Securities | 6,592.2 | 6,952.7 |
Accumulated Gross Unrealized Gain on Securities | 851.1 | 1,296.4 |
Accumulated Gross Unrealized Loss on Securities | 53.4 | 12.6 |
Fixed Maturity Securities | 7,389.9 | 8,236.5 |
Mortgage/Asset-backed Securities | ||
Debt Securities, Available-for-sale | ||
Amortized Cost of Fixed Maturity Securities | 1,591.0 | 1,873.2 |
Accumulated Gross Unrealized Gain on Securities | 57.1 | 105.1 |
Accumulated Gross Unrealized Loss on Securities | 21.1 | 4.7 |
Fixed Maturity Securities | 1,627.0 | 1,973.6 |
All Other Corporate Bonds | ||
Debt Securities, Available-for-sale | ||
Amortized Cost of Fixed Maturity Securities | 27,306.0 | 26,988.7 |
Accumulated Gross Unrealized Gain on Securities | 2,195.0 | 3,633.5 |
Accumulated Gross Unrealized Loss on Securities | 384.9 | 99.8 |
Fixed Maturity Securities | 29,116.1 | 30,522.4 |
Redeemable Preferred Stocks | ||
Debt Securities, Available-for-sale | ||
Amortized Cost of Fixed Maturity Securities | 39.0 | 39.0 |
Accumulated Gross Unrealized Gain on Securities | 1.6 | 3.0 |
Accumulated Gross Unrealized Loss on Securities | 0.2 | 0.0 |
Fixed Maturity Securities | 40.4 | 42.0 |
Fixed Maturity Securities | ||
Debt Securities, Available-for-sale | ||
Amortized Cost of Fixed Maturity Securities | 39,913.2 | 39,780.5 |
Accumulated Gross Unrealized Gain on Securities | 3,654.7 | 5,800.8 |
Accumulated Gross Unrealized Loss on Securities | 496.6 | 123.5 |
Fixed Maturity Securities | $ 43,071.3 | $ 45,457.8 |
Length of Time Fixed Maturity Securities had been in a Gross Unrealized Loss Position (Detail) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
United States Government and Government Agencies and Authorities | ||
Debt Securities, Available-for-sale | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | $ 390.6 | $ 157.9 |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 10.4 | 3.0 |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 181.3 | 58.8 |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | 15.2 | 1.8 |
States, Municipalities, and Political Subdivisions | ||
Debt Securities, Available-for-sale | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | 359.3 | 45.7 |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 7.5 | 0.5 |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 34.1 | 22.3 |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | 2.2 | 0.7 |
Foreign Governments | ||
Debt Securities, Available-for-sale | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | 34.4 | 13.2 |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 0.7 | 0.4 |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 12.3 | 0.0 |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | 1.0 | 0.0 |
Public Utilities | ||
Debt Securities, Available-for-sale | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | 633.4 | 213.2 |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 33.6 | 7.9 |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 228.4 | 133.5 |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | 19.8 | 4.7 |
Mortgage/Asset-backed Securities | ||
Debt Securities, Available-for-sale | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | 515.6 | 252.5 |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 9.1 | 1.4 |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 212.7 | 144.7 |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | 12.0 | 3.3 |
All Other Corporate Bonds | ||
Debt Securities, Available-for-sale | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | 7,839.8 | 1,355.1 |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 282.6 | 26.8 |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 1,164.0 | 785.2 |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | 102.3 | 73.0 |
Redeemable Preferred Stocks | ||
Debt Securities, Available-for-sale | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | 10.8 | |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 0.2 | |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 0.0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | 0.0 | |
Fixed Maturity Securities | ||
Debt Securities, Available-for-sale | ||
Fair Value of Securities in Continuous Unrealized Loss Possition for Less Than 12 Months | 9,783.9 | 2,037.6 |
Available-for-sale Securities, Continuous Unrealized Loss Position of Less than 12 Months, Accumulated Loss | 344.1 | 40.0 |
Fair Value of Securities in Continuous Unrealized Loss Possition for Greater Than 12 Months | 1,832.8 | 1,144.5 |
Available-for-sale Securities, Continuous Unrealized Loss Position of 12 Months or Longer, Accumulated Loss | $ 152.5 | $ 83.5 |
Distribution of the Maturity Dates for Fixed Maturity Securities (Detail) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost | $ 992.6 | $ 1,625.1 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Amortized Cost | 6,062.7 | 5,579.9 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Amortized Cost | 12,558.1 | 12,091.1 |
Debt Securities, Available-for-sale, Allocated and Single Maturity Date, Maturity, after 10 Years, Amortized Cost | 18,708.8 | 18,611.2 |
Available for sale Securities Debt Maturities Amortized Cost Gross Subtotal | 38,322.2 | 37,907.3 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 1,591.0 | 1,873.2 |
Debt Securities, Available-for-sale, Amortized Cost | 39,913.2 | 39,780.5 |
Available-for-Sale Securities, Unrealized Gain Position, Gross Gain | ||
Available For Sale Securities Debt Maturities Within One Year Unrealized Gain Position Gross Gain | 13.5 | 30.9 |
Available For Sale Securities Debt Maturities After One Through Five Years Unrealized Gain Position Gross Gain | 298.6 | 453.6 |
Available For Sale Securities Debt Maturities After Five Through Ten Years Unrealized Gain Position Gross Gain | 826.6 | 1,169.8 |
Available For Sale Securities Debt Maturities After Ten Years Unrealized Gain Position Gross Gain | 2,458.9 | 4,041.4 |
Available For Sale Securities Debt Maturities Unrealized Gain Position Gross Gain Gross Subtotal | 3,597.6 | 5,695.7 |
Available For Sale Securities Debt Maturities Without Single Maturity Date Unrealized Gain Position Gross Gain | 57.1 | 105.1 |
Available for sale Securities, Debt Maturities Unrealized Gain Position Gross Gain | 3,654.7 | 5,800.8 |
Available-for-Sale Securities, Unrealized Loss Position, Gross Loss | ||
Available For Sale Securities Debt Maturities Within One Year Unrealized Loss Position Gross Loss | 5.4 | 3.1 |
Available For Sale Securities Debt Maturities After One Through Five Years Unrealized Loss Position Gross Loss | 41.6 | 18.5 |
Available For Sale Securities Debt Maturities After Five Through Ten Years Unrealized Loss Position Gross Loss | 185.4 | 53.2 |
Available For Sale Securities Debt Maturities After Ten Years Unrealized Loss Position Gross Loss | 243.1 | 44.0 |
Available For Sale Securities Debt Maturities Unrealized Gain Position Gross Loss Gross Subtotal | 475.5 | 118.8 |
Available For Sale Securities Debt Maturities Without Single Maturity Date Unrealized Loss Position Gross Loss | 21.1 | 4.7 |
Available For Sale Securities Unrealized Loss Position Gross Loss Subtotal | 496.6 | 123.5 |
Fair Value Maturity Distribution | ||
Fixed Maturity Securities | 43,071.3 | 45,457.8 |
Fair Value of Fixed Maturity Securities in Unrealized Gain Position | ||
Fair Value Maturity Distribution | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value | 949.8 | 1,638.8 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value | 5,345.8 | 5,810.9 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value | 7,993.7 | 11,916.5 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value | 16,266.6 | 21,333.1 |
Available for sale Securities Debt Maturities Fair Value Gross Subtotal | 30,555.9 | 40,699.3 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 898.7 | 1,576.4 |
Fixed Maturity Securities | 31,454.6 | 42,275.7 |
Fair Value of Fixed Maturity Securities in Unrealized Loss Position | ||
Fair Value Maturity Distribution | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value | 50.9 | 14.1 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value | 973.9 | 204.1 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value | 5,205.6 | 1,291.2 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value | 4,658.0 | 1,275.5 |
Available for sale Securities Debt Maturities Fair Value Gross Subtotal | 10,888.4 | 2,784.9 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 728.3 | 397.2 |
Fixed Maturity Securities | $ 11,616.7 | $ 3,182.1 |
Investments Distribution by External Credit Rating for Fixed Maturity Securities (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Debt Securities, Available-for-sale | ||
Fixed Maturity Securities | $ 43,071.3 | $ 45,457.8 |
Accumulated Gross Unrealized Gain on Securities | 3,654.7 | |
Accumulated Gross Unrealized Loss on Securities | $ 496.6 | |
Percent of Fixed Maturity Securities in Unrealized Loss Position | 100.00% | |
External Credit Rating, Investment Grade | ||
Debt Securities, Available-for-sale | ||
Fixed Maturity Securities | $ 39,839.9 | |
Accumulated Gross Unrealized Gain on Securities | 3,577.7 | |
Accumulated Gross Unrealized Loss on Securities | $ 411.2 | |
Percent of Fixed Maturity Securities in Unrealized Loss Position | 82.80% | |
External Credit Rating, Below-Investment-Grade | ||
Debt Securities, Available-for-sale | ||
Fixed Maturity Securities | $ 3,231.4 | |
Accumulated Gross Unrealized Gain on Securities | 77.0 | |
Accumulated Gross Unrealized Loss on Securities | $ 85.4 | |
Percent of Fixed Maturity Securities in Unrealized Loss Position | 17.20% |
Investments Low Income Housing Tax Credits (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Investments, All Other Investments [Abstract] | ||||
Low Income Housing Tax Credits | $ 10.4 | $ 10.4 | $ 31.1 | $ 31.3 |
Amortization of Low Income Housing Investments | (7.1) | (5.8) | (21.1) | (17.4) |
Tax Benefits from Low Income Housing Investments | $ 3.3 | $ 4.6 | $ 10.0 | $ 13.9 |
Mortgage Loans by Property Type and Geographic Region (Detail) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 2,222.0 | $ 2,213.2 |
Percent of Total | 100.00% | 100.00% |
New England | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 50.3 | $ 56.1 |
Percent of Total | 2.30% | 2.50% |
Middle Atlantic | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 161.8 | $ 155.5 |
Percent of Total | 7.30% | 7.00% |
East North Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 343.9 | $ 282.0 |
Percent of Total | 15.50% | 12.80% |
West North Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 205.0 | $ 210.1 |
Percent of Total | 9.20% | 9.50% |
South Atlantic | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 478.7 | $ 494.4 |
Percent of Total | 21.50% | 22.30% |
East South Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 89.4 | $ 88.8 |
Percent of Total | 4.00% | 4.00% |
West South Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 213.3 | $ 247.4 |
Percent of Total | 9.60% | 11.20% |
Mountain | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 243.0 | $ 251.2 |
Percent of Total | 10.90% | 11.40% |
Pacific | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 436.6 | $ 427.7 |
Percent of Total | 19.70% | 19.30% |
Apartment | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 428.9 | $ 360.0 |
Percent of Total | 19.30% | 16.30% |
Industrial | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 626.5 | $ 601.2 |
Percent of Total | 28.20% | 27.20% |
Office | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 587.8 | $ 692.3 |
Percent of Total | 26.50% | 31.30% |
Retail | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 533.9 | $ 527.6 |
Percent of Total | 24.00% | 23.80% |
Other Property | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans | $ 44.9 | $ 32.1 |
Percent of Total | 2.00% | 1.40% |
Mortgage Loans Sorted by Applicable Internal Credit Ratings and Loan-to-Value Ratios (Detail) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Financing Receivable, Recorded Investment | ||
Mortgage Loans | $ 2,222.0 | $ 2,213.2 |
Aa Credit Rating | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | 0.1 | 0.4 |
A Credit Rating | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | 462.9 | 445.7 |
Baa Credit Rating | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | 1,748.4 | 1,753.0 |
Ba Credit Rating | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | 10.6 | 14.1 |
Loan to Value Ratio Below or Equal to 65 Percent | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | 1,104.4 | 1,101.7 |
Loan To Value Ratio Above 65 To 75 Percent | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | 1,072.2 | 1,041.6 |
Loan To Value Ratio Above 75 To 85 Percent | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | 24.8 | 49.3 |
Loan To Value Ratio Above 85 Percent | ||
Financing Receivable, Recorded Investment | ||
Mortgage Loans | $ 20.6 | $ 20.6 |
Investments Remaining Contractual Maturity of Securities Lending Agreements (Details) - Overnight and Continuous - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
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 | $ 2.1 | $ 30.5 |
Securities Loaned and Securities Sold under Agreement to Repurchase, Gross Including Not Subject to Master Netting Arrangement | 2.1 | 30.5 |
Secured Borrowings, Gross, Difference, Amount | 0.0 | 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 | 0.0 | 0.2 |
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 | 0.0 | 0.5 |
All Other Corporate Bonds | ||
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 | $ 2.1 | $ 29.8 |
Investments Federal Home Loan Bank Carrying Amount, Collateral Posted and Advances Received (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Federal Home Loan Bank Carrying Value of Common Stock, Collateral Posted and Advances | ||
Federal Home Loan Bank Stock | $ 32.1 | $ 34.1 |
Federal Home Loan Bank (FHLB) Funding Agreements | 219.5 | 350.0 |
Collateral Pledged to Federal Home Loan Bank (FHLB) | 445.1 | 544.8 |
Fixed Maturity Securities | ||
Federal Home Loan Bank Carrying Value of Common Stock, Collateral Posted and Advances | ||
Collateral Pledged to Federal Home Loan Bank (FHLB) | 217.0 | 213.3 |
Mortgage Loans as Collateral | ||
Federal Home Loan Bank Carrying Value of Common Stock, Collateral Posted and Advances | ||
Collateral Pledged to Federal Home Loan Bank (FHLB) | $ 228.1 | $ 331.5 |
Schedule of Financial Instrument and Derivative Offsetting (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Offsetting Derivative Assets | ||
Gross Derivative Assets | $ 20.9 | $ 19.5 |
Derivative Liabilities Offsetting Derivative Assets in Balance Sheet | 0.0 | 0.0 |
Net Derivative Assets Reported in Balance Sheet | 20.9 | 19.5 |
Securities Received as Collateral on Derivative Assets | (4.4) | (4.2) |
Cash Collateral from Counterparties | (16.5) | (15.3) |
Derivative Assets Net of Collateral | 0.0 | 0.0 |
Offsetting Securities Borrowed | ||
Gross Securities Borrowed | 181.9 | 159.2 |
Liabilities Offsetting Securities Borrowed in Balance Sheet | 0.0 | 0.0 |
Net Securities Borrowed Reported in Balance Sheet | 181.9 | 159.2 |
Securities Received as Collateral on Securities Borrowed | (179.8) | (128.7) |
Cash Received as Collateral on Securities Borrowed | (2.1) | (30.5) |
Securities Borrowed Net of Collateral | 0.0 | 0.0 |
Offsetting of Derivative Assets and Securities Borrowed | ||
Gross Financial Assets | 202.8 | 178.7 |
Financial Liabilities Offsetting Financial Assets in Balance Sheet | 0.0 | 0.0 |
Net Financial Assets Reported in Balance Sheet | 202.8 | 178.7 |
Securities Received as Collateral on Financial Assets | (184.2) | (132.9) |
Cash Received as Collateral on Financial Assets | (18.6) | (45.8) |
Financial Assets Net of Collateral | 0.0 | 0.0 |
Offsetting Securities Loaned | ||
Gross Securities Loaned | 2.1 | 30.5 |
Assets Offsetting Securities Loaned in Balance Sheet | 0.0 | 0.0 |
Net Securities Loaned Reported in Balance Sheet | 2.1 | 30.5 |
Securities Given as Collateral on Securities Loaned | (2.1) | (30.5) |
Cash Given as Collateral on Securities Loaned | 0.0 | 0.0 |
Securities Loaned Net of Collateral | 0.0 | 0.0 |
Derivative Liabilities and Securities Lending Liabilities | ||
Gross Financial Liability | 48.6 | 82.7 |
Financial Assets Offsetting Financial Liabilities in Balance Sheet | 0.0 | 0.0 |
Net Financial Liabilities Reported in Balance Sheet | 48.6 | 82.7 |
Securities Given as Collateral on Financial Liabilities | (44.0) | (73.4) |
Cash Given as Collateral on Financial Liabilities | 0.0 | 0.0 |
Financial Liabilities Net of Collateral | 4.6 | 9.3 |
Over the Counter | ||
Offsetting Derivative Liabilities | ||
Gross Derivative Liability | 46.5 | 52.2 |
Derivative Assets Offsetting Derivative Liabilities in Balance Sheet | 0.0 | 0.0 |
Net Derivative Liabilities Reported in Balance Sheet | 46.5 | 52.2 |
Securities Given as Collateral on Derivative Liabilities | (41.9) | (42.9) |
Cash Collateral to Counterparties | 0.0 | 0.0 |
Derivative Liabilities Net of Collateral | $ 4.6 | $ 9.3 |
Net Investment Income (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|||||||
Schedule of Investment Income, Reported Amounts, by Category | ||||||||||
Investment Income, Interest and Dividend | $ 631.0 | $ 619.6 | $ 1,882.1 | $ 1,866.5 | ||||||
Less Investment Expenses | 8.4 | 7.1 | 26.8 | 24.0 | ||||||
Less Investment Income on PFA Assets | 3.4 | 3.5 | 10.2 | 10.6 | ||||||
Net Investment Income | 619.2 | 609.0 | 1,845.1 | 1,831.9 | ||||||
Fixed Maturity Securities | ||||||||||
Schedule of Investment Income, Reported Amounts, by Category | ||||||||||
Investment Income, Interest and Dividend | 560.4 | 564.8 | 1,682.7 | 1,700.5 | ||||||
Derivatives | ||||||||||
Schedule of Investment Income, Reported Amounts, by Category | ||||||||||
Investment Income, Interest and Dividend | 16.5 | 14.4 | 48.1 | 41.8 | ||||||
Mortgage Loans | ||||||||||
Schedule of Investment Income, Reported Amounts, by Category | ||||||||||
Investment Income, Interest and Dividend | 27.9 | 25.8 | 84.3 | 76.8 | ||||||
Policy Loans | ||||||||||
Schedule of Investment Income, Reported Amounts, by Category | ||||||||||
Investment Income, Interest and Dividend | 4.7 | 4.5 | 13.7 | 13.3 | ||||||
Equity Securities | ||||||||||
Schedule of Investment Income, Reported Amounts, by Category | ||||||||||
Investment Income, Interest and Dividend | 1.7 | [1] | 0.4 | 2.0 | [1] | 1.0 | ||||
Private Equity Partnerships | ||||||||||
Schedule of Investment Income, Reported Amounts, by Category | ||||||||||
Investment Income, Interest and Dividend | 10.5 | [2] | 3.7 | 28.8 | [2] | 17.3 | ||||
Other Long-term Investments | ||||||||||
Schedule of Investment Income, Reported Amounts, by Category | ||||||||||
Investment Income, Interest and Dividend | 1.4 | 2.5 | 5.0 | 7.8 | ||||||
Short-term Investments | ||||||||||
Schedule of Investment Income, Reported Amounts, by Category | ||||||||||
Investment Income, Interest and Dividend | $ 7.9 | $ 3.5 | $ 17.5 | $ 8.0 | ||||||
|
Realized Investment Gains and Losses Reported in Consolidated Statements of Income (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Fixed Maturity Securities | ||||
Gross Gains on Sales | $ 4.8 | $ 4.3 | $ 9.4 | $ 8.6 |
Gross Losses on Sales | (3.8) | (1.2) | (8.3) | (3.5) |
Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | 0.0 | 0.0 | 1.0 | 0.0 |
Mortgage Loans and Other Invested Assets | ||||
Gross Gains on Sales | 0.1 | 0.8 | 0.2 | 3.4 |
Gross Losses on Sales | 0.0 | 0.0 | 0.0 | (0.2) |
Provision for Loan and Lease Losses | 0.6 | 0.9 | 0.8 | 0.9 |
Gain on Embedded Derivative | 6.1 | 6.7 | 2.1 | 21.5 |
Derivative, Gain (Loss) on Derivative, Net | 0.2 | 0.2 | 0.9 | (0.3) |
Foreign Currency Transactions | (0.1) | (0.1) | (0.6) | 0.3 |
Net Realized Investment Gain | $ 6.7 | $ 9.8 | $ 1.9 | $ 28.9 |
Investments - Additional Information (Detail) |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
Integer
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
Integer
|
Sep. 30, 2017
USD ($)
|
Jun. 30, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Jun. 30, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Schedule of Investments | ||||||||
Fixed Maturity Securities Other Than Temporary Impairments in Accumulated Other Comprehensive Income Loss | $ 0 | $ 0 | $ 0 | |||||
Commitment to Fund Private Placement Fixed Maturity Securities | 115,100,000 | 115,100,000 | ||||||
Carrying Amount of Variable Interest Entity Investments | 567,300,000 | 567,300,000 | 535,400,000 | |||||
Unfunded Commitments to Investment Partnerships | 3,700,000 | 3,700,000 | ||||||
Fixed Maturity Securities | $ 43,071,300,000 | $ 43,071,300,000 | 45,457,800,000 | |||||
Mortgage Loan Policy is not to Exceed a Loan-to-value Ratio, Percent | 75.00% | 75.00% | ||||||
Loan to Value Ratio Update Frequency | 3 years | |||||||
Mortgage Loan Inspection Frequency | 2 years | |||||||
Mortage Loan Policy Debt Service Coverage Ratio Lower Range | 125.00% | 125.00% | ||||||
Mortgage Loans Issuance, Term Years | 25 | |||||||
Number of Changes to Accounting Policy for Estimating Credit Losses on Mortgage Loans | 0 | |||||||
Provision for Loan and Lease Losses | $ 600,000 | $ 900,000 | $ 800,000 | $ 900,000 | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | 0 | 0 | 0 | 0 | ||||
Committments to Fund Commercial Mortgage Loans | $ 47,300,000 | $ 47,300,000 | ||||||
Repurchase agreements - Typical Days Outstanding | 30 days | |||||||
Minimum Percent of Fair Value of Securities Loaned or Securities Purchased Under Repurchase Agreements to be Maintained as Collateral | 102.00% | 102.00% | ||||||
Net Securities Borrowed Reported in Balance Sheet | $ 181,900,000 | $ 181,900,000 | 159,200,000 | |||||
Outstanding Repurchase Agreements | 0 | 0 | 0 | |||||
Off Balance Sheet Amount | ||||||||
Schedule of Investments | ||||||||
Cash Collateral for Borrowed Securities | 2,100,000 | 2,100,000 | 30,500,000 | |||||
Securities Received as Collateral | 187,600,000 | 187,600,000 | 135,600,000 | |||||
Commercial Real Estate Portfolio Segment | ||||||||
Schedule of Investments | ||||||||
Financing Receivable, Allowance for Credit Losses | 200,000 | 200,000 | 0 | |||||
Number of Financing Receivables on Nonaccrual Status | 1 | 1 | 0 | |||||
Loans and Leases Receivable, Allowance | 200,000 | 0 | 200,000 | 0 | $ 200,000 | 0 | $ 0 | $ 0 |
Provision for Loan and Lease Losses | $ 0 | $ 0 | $ 200,000 | $ 0 | ||||
Commercial Real Estate Portfolio Segment | ||||||||
Schedule of Investments | ||||||||
Financing Receivable, Modifications, Number of Contracts | 1 | 0 | 1 | 0 | ||||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 3,600,000 | |||||||
Impaired Financing Receivable, Recorded Investment | $ 3,400,000 | 3,400,000 | ||||||
Impaired Financing Receivable, Average Recorded Investment | 1,100,000 | $ 0 | 1,100,000 | $ 0 | ||||
Special Purpose Entity | Bonds | ||||||||
Schedule of Investments | ||||||||
Fixed Maturity Securities | 155,600,000 | 155,600,000 | 154,100,000 | |||||
Partnership Interests In Tax Credit Investments | ||||||||
Schedule of Investments | ||||||||
Carrying Amount of Variable Interest Entity Investments | 100,600,000 | 100,600,000 | 128,200,000 | |||||
Private Equity Partnerships | ||||||||
Schedule of Investments | ||||||||
Carrying Amount of Variable Interest Entity Investments | $ 466,700,000 | $ 466,700,000 | $ 407,200,000 | |||||
External Credit Rating, Investment Grade | ||||||||
Schedule of Investments | ||||||||
Number of Fixed Maturity Securities in an Unrealized Loss Position | 550 | 550 | ||||||
Number of Fixed Maturity Securities in an Unrealized Loss Position Continuously for Over One year | 174 | 174 | ||||||
Fixed Maturity Securities | $ 39,839,900,000 | $ 39,839,900,000 | ||||||
External Credit Rating, Below-Investment-Grade | ||||||||
Schedule of Investments | ||||||||
Number of Fixed Maturity Securities in an Unrealized Loss Position | 91 | 91 | ||||||
Number of Fixed Maturity Securities in an Unrealized Loss Position Continuously for Over One year | 23 | 23 | ||||||
Fixed Maturity Securities | $ 3,231,400,000 | $ 3,231,400,000 |
Derivative Financial Instruments Nature and Amount of Collateral Received From and Posted To Our Derivative Counterparties (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Derivative | ||
Cash Collateral from Counterparties | $ 16.5 | $ 15.3 |
Carrying Value of Fixed Maturity Securities Posted as Collateral to Counterparties | 4.4 | 4.2 |
Total Amount | ||
Derivative | ||
Cash Collateral from Counterparties | 16.6 | 15.7 |
Fixed Maturity Securities | ||
Derivative | ||
Carrying Value of Fixed Maturity Securities Posted as Collateral to Counterparties | $ 43.6 | $ 46.4 |
Notional Amounts for Each Category of Derivative Activity (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Derivative | ||||
Balance at beginning of period | $ 808.0 | $ 1,013.7 | $ 904.5 | $ 1,052.0 |
Additions | 43.1 | 24.7 | 116.9 | 40.7 |
Terminations | 55.2 | 127.3 | 225.5 | 181.6 |
Balance at ending of period | 795.9 | 911.1 | 795.9 | 911.1 |
Credit Default Swaps | Credit Default Swaps | ||||
Derivative | ||||
Balance at beginning of period | 0.0 | 70.0 | 70.0 | 70.0 |
Additions | 11.2 | 0.0 | 11.2 | 0.0 |
Terminations | 0.0 | 0.0 | 70.0 | 0.0 |
Balance at ending of period | 11.2 | 70.0 | 11.2 | 70.0 |
Forwards | ||||
Derivative | ||||
Balance at beginning of period | 20.6 | 0.0 | 0.0 | 10.0 |
Additions | 0.0 | 24.7 | 47.4 | 40.7 |
Terminations | 20.6 | 24.7 | 47.4 | 50.7 |
Balance at ending of period | 0.0 | 0.0 | 0.0 | 0.0 |
Receive Variable/Pay Fixed | Interest Rate Swaps | ||||
Derivative | ||||
Balance at beginning of period | 0.0 | 102.0 | 48.0 | 105.5 |
Additions | 0.0 | 0.0 | 0.0 | 0.0 |
Terminations | 0.0 | 54.0 | 48.0 | 57.5 |
Balance at ending of period | 0.0 | 48.0 | 0.0 | 48.0 |
Receive Fixed/Pay Fixed | Interest Rate Swaps | ||||
Derivative | ||||
Balance at beginning of period | 537.4 | 591.7 | 536.5 | 616.5 |
Additions | 31.9 | 0.0 | 58.3 | 0.0 |
Terminations | 34.6 | 48.6 | 60.1 | 73.4 |
Balance at ending of period | 534.7 | 543.1 | 534.7 | 543.1 |
Receive Fixed/Pay Variable | Interest Rate Swaps | ||||
Derivative | ||||
Balance at beginning of period | 250.0 | 250.0 | 250.0 | 250.0 |
Additions | 0.0 | 0.0 | 0.0 | 0.0 |
Terminations | 0.0 | 0.0 | 0.0 | 0.0 |
Balance at ending of period | $ 250.0 | $ 250.0 | $ 250.0 | $ 250.0 |
Derivative Financial Instruments Fair Value Hedges Carrying Amount of Hedged Assets and Liabilities and Cumulative Basis Adjustments (Details) - Interest Rate Swaps - Designated as Hedging Instrument - Fair Value Hedging - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Fixed Maturity Securities | Receive Variable/Pay Fixed | ||
Derivative Instruments and Hedging Activities Disclosures | ||
Hedged Asset, Fair Value Hedge | $ 0.0 | $ 48.5 |
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | 0.0 | 0.6 |
Fixed Maturity Securities | Receive Fixed/Pay Fixed | ||
Derivative Instruments and Hedging Activities Disclosures | ||
Hedged Asset, Fair Value Hedge | 23.3 | 0.0 |
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | (1.7) | 0.0 |
Long-term Debt | Receive Fixed/Pay Variable | ||
Derivative Instruments and Hedging Activities Disclosures | ||
Hedged Liability, Fair Value Hedge | (242.1) | (244.8) |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | $ 7.3 | $ 4.5 |
Location and Fair Values of Derivative Financial Instruments (Detail) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Derivative | ||
Asset Derivatives Fair Value | $ 20.9 | $ 19.5 |
Designated as Hedging Instrument | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 20.4 | 19.5 |
Designated as Hedging Instrument | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 22.7 | 24.5 |
Not Designated as Hedging Instrument | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 0.5 | |
Not Designated as Hedging Instrument | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 37.6 | 43.6 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 0.0 | |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 23.8 | 27.5 |
Not Designated as Hedging Instrument | Credit Default Swaps | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 0.5 | |
Not Designated as Hedging Instrument | Credit Default Swaps | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 0.0 | 0.2 |
Not Designated as Hedging Instrument | Embedded Derivative in Modified Coinsurance Arrangement | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 0.0 | |
Not Designated as Hedging Instrument | Embedded Derivative in Modified Coinsurance Arrangement | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 13.8 | 15.9 |
Cash Flow Hedging | Designated as Hedging Instrument | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 18.3 | 19.5 |
Cash Flow Hedging | Designated as Hedging Instrument | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 14.7 | 19.4 |
Cash Flow Hedging | Designated as Hedging Instrument | Forwards | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 0.0 | |
Cash Flow Hedging | Designated as Hedging Instrument | Forwards | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 0.0 | |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign Exchange Contracts | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 18.3 | 19.5 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign Exchange Contracts | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 14.7 | 19.4 |
Fair Value Hedging | Designated as Hedging Instrument | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 2.1 | 0.0 |
Fair Value Hedging | Designated as Hedging Instrument | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 8.0 | 5.1 |
Fair Value Hedging | Designated as Hedging Instrument | Foreign Exchange Contracts | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 2.1 | |
Fair Value Hedging | Designated as Hedging Instrument | Foreign Exchange Contracts | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 0.7 | |
Fair Value Hedging | Designated as Hedging Instrument | Interest Rate Swaps | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 0.0 | 0.0 |
Fair Value Hedging | Designated as Hedging Instrument | Interest Rate Swaps | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | $ 7.3 | $ 5.1 |
Derivative Financial Instruments Location of Gains and Losses Designated as Hedging Instruments, Consolidated Statements of Income (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Derivative Instruments, Gain (Loss) | ||||
Net Investment Income | $ 619.2 | $ 609.0 | $ 1,845.1 | $ 1,831.9 |
Net Realized Investment Gain | 6.7 | 9.8 | 1.9 | 28.9 |
Interest and Debt Expense | 42.7 | 40.1 | 125.3 | 119.8 |
Derivative, Gain (Loss) on Derivative, Net | (0.2) | (0.2) | (0.9) | 0.3 |
Interest Rate Swaps | Net Investment Income | Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Net Investment Income | 75.8 | 79.7 | 230.3 | 242.6 |
Derivative, Gain (Loss) on Derivative, Net | 16.7 | 15.6 | 49.1 | 45.3 |
Interest Rate Swaps | Net Investment Income | Designated as Hedging Instrument | Fair Value Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Net Investment Income | 0.0 | 1.2 | 1.0 | 4.1 |
Derivative, Gain (Loss) on Derivative, Net | 0.0 | (0.8) | (0.5) | (2.8) |
Interest Rate Swaps | Net Realized Investment Gain (Loss) | Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Net Realized Investment Gain | 0.0 | 0.0 | 0.1 | 0.2 |
Derivative, Gain (Loss) on Derivative, Net | 0.0 | 0.0 | (0.3) | 0.0 |
Interest Rate Swaps | Net Realized Investment Gain (Loss) | Designated as Hedging Instrument | Fair Value Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Net Realized Investment Gain | 0.0 | (0.5) | 2.2 | (3.1) |
Derivative, Gain (Loss) on Derivative, Net | 0.0 | 0.5 | (2.2) | 3.1 |
Interest Rate Swaps | Interest Expense | Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Interest and Debt Expense | 8.5 | 11.4 | 31.3 | 34.2 |
Derivative, Gain (Loss) on Derivative, Net | 0.6 | 0.5 | 1.7 | 1.6 |
Interest Rate Swaps | Interest Expense | Designated as Hedging Instrument | Fair Value Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Interest and Debt Expense | 3.6 | 3.6 | 10.8 | 10.8 |
Derivative, Gain (Loss) on Derivative, Net | 0.6 | (0.1) | 1.2 | (0.6) |
Foreign Exchange Contracts | Net Investment Income | Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Net Investment Income | 4.6 | 6.5 | 14.3 | 17.1 |
Derivative, Gain (Loss) on Derivative, Net | (0.3) | (0.5) | (0.8) | (0.9) |
Foreign Exchange Contracts | Net Investment Income | Designated as Hedging Instrument | Fair Value Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Net Investment Income | 0.1 | 0.0 | 0.5 | 0.0 |
Derivative, Gain (Loss) on Derivative, Net | 0.1 | 0.0 | 0.2 | 0.0 |
Foreign Exchange Contracts | Net Realized Investment Gain (Loss) | Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Net Realized Investment Gain | 0.4 | 5.2 | 1.3 | 6.7 |
Derivative, Gain (Loss) on Derivative, Net | (0.4) | (5.2) | (1.3) | (6.7) |
Foreign Exchange Contracts | Net Realized Investment Gain (Loss) | Designated as Hedging Instrument | Fair Value Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Net Realized Investment Gain | (0.3) | 0.0 | (1.7) | 0.0 |
Derivative, Gain (Loss) on Derivative, Net | 0.3 | 0.0 | 1.7 | 0.0 |
Foreign Exchange Contracts | Interest Expense | Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Interest and Debt Expense | 0.0 | 0.0 | 0.0 | 0.0 |
Derivative, Gain (Loss) on Derivative, Net | 0.0 | 0.0 | 0.0 | 0.0 |
Foreign Exchange Contracts | Interest Expense | Designated as Hedging Instrument | Fair Value Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Interest and Debt Expense | 0.0 | 0.0 | 0.0 | 0.0 |
Derivative, Gain (Loss) on Derivative, Net | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.0 |
Location of Gains and Losses on Derivative Financial Instruments Designated as Hedging Instruments (Detail) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ (10.1) | $ (12.1) | $ 0.5 | $ (21.3) |
Interest Rate Swaps | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | 0.0 | (0.1) | (0.1) | (0.1) |
Foreign Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ (10.1) | $ (12.0) | $ 0.6 | $ (21.2) |
Gains and Losses on Derivatives Not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) on Derivatives | $ 0.2 | $ 0.2 | $ 0.9 | $ (0.3) |
Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) on Derivatives | 6.3 | 6.9 | 3.0 | 21.2 |
Not Designated as Hedging Instrument | Credit Default Swaps | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) on Derivatives | (0.3) | 0.1 | (0.3) | (0.3) |
Not Designated as Hedging Instrument | Interest Rate Swaps | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) on Derivatives | 0.0 | 0.0 | (0.3) | (0.1) |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) on Derivatives | 0.5 | 0.1 | 1.5 | 0.1 |
Not Designated as Hedging Instrument | Embedded Derivative in Modified Coinsurance Arrangement | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) on Derivatives | $ 6.1 | $ 6.7 | $ 2.1 | $ 21.5 |
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Jun. 30, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
Dec. 31, 2016 |
|
Derivative | ||||||||
Aggregate Fair Value of all Derivative Instruments with Credit Risk-related Contingent Features in a Liability Position | $ 46.5 | $ 46.5 | $ 52.2 | |||||
Notional Amount of Derivatives | 795.9 | $ 911.1 | 795.9 | $ 911.1 | $ 808.0 | 904.5 | $ 1,013.7 | $ 1,052.0 |
Approximate Amount of Net Deferred Gains on Derivative Instruments Expected to be Amortized During the Next Twelve Months | 68.4 | |||||||
Component of Derivative Gain (Loss) Excluded from the Assessment of Hedge Effectiveness | 1.2 | 0.0 | 0.2 | 0.0 | ||||
Discontinued Hedge Accounting Due to Instrument No Longer Qualifying as Fair Value Hedge | 0.0 | 0.0 | 0.0 | 0.0 | ||||
Credit Risk Contract | Credit Default Swaps | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 11.2 | 70.0 | 11.2 | 70.0 | 0.0 | 70.0 | 70.0 | 70.0 |
Credit Risk Contract | Credit Default Swaps | Not Designated as Hedging Instrument | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 11.2 | 11.2 | 70.0 | |||||
Credit Exposure | ||||||||
Derivative | ||||||||
Current Credit Exposure on Derivatives | 0.0 | 0.0 | ||||||
Receive Fixed/Pay Fixed | Interest Rate Swaps | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 534.7 | 543.1 | 534.7 | 543.1 | 537.4 | 536.5 | 591.7 | 616.5 |
Receive Fixed/Pay Fixed | Interest Rate Swaps | Not Designated as Hedging Instrument | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 173.7 | 173.7 | 192.6 | |||||
Receive Fixed/Pay Fixed | Interest Rate Swaps | Cash Flow Hedging | Designated as Hedging Instrument | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 302.7 | 302.7 | 343.9 | |||||
Receive Fixed/Pay Fixed | Interest Rate Swaps | Fair Value Hedging | Designated as Hedging Instrument | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 58.3 | 58.3 | ||||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0.3 | 1.7 | ||||||
Receive Variable/Pay Fixed | Interest Rate Swaps | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 0.0 | 48.0 | 0.0 | 48.0 | 0.0 | 48.0 | 102.0 | 105.5 |
Receive Variable/Pay Fixed | Interest Rate Swaps | Not Designated as Hedging Instrument | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 3.5 | |||||||
Loss on Derivative Contract Termination | 0.1 | |||||||
Receive Variable/Pay Fixed | Interest Rate Swaps | Fair Value Hedging | Designated as Hedging Instrument | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 48.0 | |||||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0.8 | 0.6 | 2.8 | |||||
Receive Fixed/Pay Variable | Interest Rate Swaps | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 250.0 | 250.0 | 250.0 | 250.0 | $ 250.0 | 250.0 | $ 250.0 | $ 250.0 |
Receive Fixed/Pay Variable | Interest Rate Swaps | Fair Value Hedging | Designated as Hedging Instrument | ||||||||
Derivative | ||||||||
Notional Amount of Derivatives | 250.0 | 250.0 | $ 250.0 | |||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | $ 0.0 | $ 0.3 | $ 2.8 | $ (0.3) |
Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balance at Beginning of Period | $ (276.2) | $ 104.9 | $ 127.5 | $ (51.0) |
Recognition and Measurement of Financial Assets and Financial Liabilities, Reclassification from AOCI to Retained Earnings | (17.5) | |||
Other Comprehensive Income (Loss) Before Reclassifications, Net of Tax | (583.8) | 27.3 | (956.1) | 197.4 |
Reclassification from Accumulated Other Comprehensive Income or Loss | (8.5) | (7.9) | (22.4) | (22.1) |
Total Other Comprehensive Income (Loss) | (592.3) | 19.4 | (978.5) | 175.3 |
Balance at End of Period | (868.5) | 124.3 | (868.5) | 124.3 |
Net Unrealized Gain (Loss) on Securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balance at Beginning of Period | 224.5 | 558.2 | 607.8 | 440.6 |
Recognition and Measurement of Financial Assets and Financial Liabilities, Reclassification from AOCI to Retained Earnings | (17.5) | |||
Other Comprehensive Income (Loss) Before Reclassifications, Net of Tax | (564.3) | 4.4 | (930.8) | 125.7 |
Reclassification from Accumulated Other Comprehensive Income or Loss | (0.9) | (5.2) | (0.2) | (8.9) |
Total Other Comprehensive Income (Loss) | (565.2) | (0.8) | (931.0) | 116.8 |
Balance at End of Period | (340.7) | 557.4 | (340.7) | 557.4 |
Net Gain on Hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balance at Beginning of Period | 266.8 | 304.5 | 282.3 | 327.5 |
Recognition and Measurement of Financial Assets and Financial Liabilities, Reclassification from AOCI to Retained Earnings | 0.0 | |||
Other Comprehensive Income (Loss) Before Reclassifications, Net of Tax | (4.8) | (7.9) | 2.9 | (14.0) |
Reclassification from Accumulated Other Comprehensive Income or Loss | (12.0) | (5.9) | (35.2) | (22.8) |
Total Other Comprehensive Income (Loss) | (16.8) | (13.8) | (32.3) | (36.8) |
Balance at End of Period | 250.0 | 290.7 | 250.0 | 290.7 |
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balance at Beginning of Period | (268.8) | (297.1) | (254.5) | (354.0) |
Recognition and Measurement of Financial Assets and Financial Liabilities, Reclassification from AOCI to Retained Earnings | 0.0 | |||
Other Comprehensive Income (Loss) Before Reclassifications, Net of Tax | (15.2) | 31.8 | (29.5) | 88.7 |
Reclassification from Accumulated Other Comprehensive Income or Loss | 0.0 | 0.0 | 0.0 | 0.0 |
Total Other Comprehensive Income (Loss) | (15.2) | 31.8 | (29.5) | 88.7 |
Balance at End of Period | (284.0) | (265.3) | (284.0) | (265.3) |
Unrecognized Pension and Postretirement Benefit Costs | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Balance at Beginning of Period | (498.7) | (460.7) | (508.1) | (465.1) |
Recognition and Measurement of Financial Assets and Financial Liabilities, Reclassification from AOCI to Retained Earnings | 0.0 | |||
Other Comprehensive Income (Loss) Before Reclassifications, Net of Tax | 0.5 | (1.0) | 1.3 | (3.0) |
Reclassification from Accumulated Other Comprehensive Income or Loss | 4.4 | 3.2 | 13.0 | 9.6 |
Total Other Comprehensive Income (Loss) | 4.9 | 2.2 | 14.3 | 6.6 |
Balance at End of Period | $ (493.8) | $ (458.5) | $ (493.8) | $ (458.5) |
Schedule of Components of Unrealized Gain (Loss) on Securities (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Change in Components of Net Unrealized Gain on Securities | ||||
Change in Net Unrealized Gain (Loss) on Securities | $ (305.0) | $ 66.1 | $ (1,982.1) | $ 616.3 |
Net Unrealized Gain (Loss) on Securities | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | 224.5 | 558.2 | 590.3 | 440.6 |
Change in Net Unrealized Gain (Loss) on Securities | (565.2) | (0.8) | (931.0) | 116.8 |
End of Period Balance | (340.7) | 557.4 | (340.7) | 557.4 |
Fixed Maturity Securities | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | 3,543.7 | 5,492.2 | 5,665.2 | 4,664.6 |
Change in Net Unrealized Gain (Loss) on Securities | (385.6) | 95.5 | (2,507.1) | 923.1 |
End of Period Balance | 3,158.1 | 5,587.7 | 3,158.1 | 5,587.7 |
Other Investments | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | (4.6) | (22.7) | ||
Change in Net Unrealized Gain (Loss) on Securities | 9.8 | 27.9 | ||
End of Period Balance | 5.2 | 5.2 | ||
Deferred Acquisition Costs | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | (34.1) | (45.8) | (51.4) | (38.9) |
Change in Net Unrealized Gain (Loss) on Securities | 2.6 | (0.4) | 19.9 | (7.3) |
End of Period Balance | (31.5) | (46.2) | (31.5) | (46.2) |
Reserve for Future Policy and Contract Benefits | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | (3,367.1) | (4,948.2) | (5,094.7) | (4,253.2) |
Change in Net Unrealized Gain (Loss) on Securities | (317.8) | (109.2) | 1,409.8 | (804.2) |
End of Period Balance | (3,684.9) | (5,057.4) | (3,684.9) | (5,057.4) |
Reinsurance Recoverable | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | 288.1 | 360.7 | 375.8 | 321.3 |
Change in Net Unrealized Gain (Loss) on Securities | (14.8) | 10.9 | (102.5) | 50.3 |
End of Period Balance | 273.3 | 371.6 | 273.3 | 371.6 |
Income Tax | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | (206.1) | (296.1) | (304.6) | (230.5) |
Change in Net Unrealized Gain (Loss) on Securities | 150.4 | (7.4) | 248.9 | (73.0) |
End of Period Balance | $ (55.7) | $ (303.5) | $ (55.7) | $ (303.5) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | ||||
Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | $ 0.0 | $ 0.0 | $ 1.0 | $ 0.0 |
Net Investment Income | 619.2 | 609.0 | 1,845.1 | 1,831.9 |
Derivative, Gain (Loss) on Derivative, Net | 0.2 | 0.2 | 0.9 | (0.3) |
Interest and Debt Expense | (42.7) | (40.1) | (125.3) | (119.8) |
Other Expenses | (212.9) | (191.5) | (657.9) | (624.6) |
Income Before Income Tax | (377.8) | 366.8 | 318.1 | 1,058.7 |
Total Income Tax Expense (Benefit) | (93.1) | 114.5 | 43.8 | 331.4 |
Net Income (Loss) | (284.7) | 252.3 | 274.3 | 727.3 |
Reclassification out of Accumulated Other Comprehensive Income or Loss | Net Unrealized Gain (Loss) on Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | ||||
Net Gain on Sales of Securities and Other Invested Assets | 1.2 | 8.2 | 1.3 | 13.8 |
Other-Than-Temporary Impairment Loss on Fixed Maturity Securities | 0.0 | 0.0 | 1.0 | 0.0 |
Income Before Income Tax | 1.2 | 8.2 | 0.3 | 13.8 |
Total Income Tax Expense (Benefit) | 0.3 | 3.0 | 0.1 | 4.9 |
Net Income (Loss) | 0.9 | 5.2 | 0.2 | 8.9 |
Reclassification out of Accumulated Other Comprehensive Income or Loss | Net Gain on Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | ||||
Income Before Income Tax | 15.1 | 9.0 | 44.5 | 35.1 |
Total Income Tax Expense (Benefit) | 3.1 | 3.1 | 9.3 | 12.3 |
Net Income (Loss) | 12.0 | 5.9 | 35.2 | 22.8 |
Reclassification out of Accumulated Other Comprehensive Income or Loss | Net Gain on Hedges | Interest Rate Swaps | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | ||||
Net Investment Income | 16.4 | 15.1 | 48.1 | 44.2 |
Derivative, Gain (Loss) on Derivative, Net | 0.0 | 0.0 | 0.2 | 0.0 |
Interest and Debt Expense | (0.6) | (0.5) | (1.6) | (1.5) |
Reclassification out of Accumulated Other Comprehensive Income or Loss | Net Gain on Hedges | Foreign Exchange Contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | ||||
Net Investment Income | (0.3) | (0.4) | (0.9) | (0.9) |
Derivative, Gain (Loss) on Derivative, Net | (0.4) | (5.2) | (1.3) | (6.7) |
Reclassification out of Accumulated Other Comprehensive Income or Loss | Net Actuarial Loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | ||||
Other Expenses | (5.6) | (5.1) | (16.8) | (15.2) |
Reclassification out of Accumulated Other Comprehensive Income or Loss | Prior Service Credit | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | ||||
Other Expenses | 0.1 | 0.2 | 0.2 | 0.5 |
Reclassification out of Accumulated Other Comprehensive Income or Loss | Unrecognized Pension and Postretirement Benefit Costs | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income (Loss) | ||||
Income Before Income Tax | (5.5) | (4.9) | (16.6) | (14.7) |
Total Income Tax Expense (Benefit) | (1.1) | (1.7) | (3.6) | (5.1) |
Net Income (Loss) | $ (4.4) | $ (3.2) | $ (13.0) | $ (9.6) |
Liability for Unpaid Claims and CAE Liability for Unpaid Claims and Claim Adjustment Expenses (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense | ||
Balance at January 1 | $ 23,222.0 | $ 23,249.5 |
Less Reinsurance Recoverable | 2,182.0 | 2,163.6 |
Net Balance at January 1 | 21,040.0 | 21,085.9 |
Incurred Related to | ||
Current Year | 4,421.9 | 4,046.2 |
Total Incurred | 5,093.3 | 4,889.4 |
Paid Related to | ||
Current Year | (1,589.1) | (1,463.9) |
Prior Years | (3,491.2) | (3,478.8) |
Total Paid | (5,080.3) | (4,942.7) |
Net Balance at September 30 | 21,053.0 | 21,032.6 |
Plus Reinsurance Recoverable | 2,204.0 | 2,163.9 |
Balance at September 30 | 23,257.0 | 23,196.5 |
Amount Related to Interest | ||
Incurred Related to | ||
Prior Years | 807.2 | 836.5 |
Incurred Claims | ||
Incurred Related to | ||
Prior Years | (65.6) | (143.3) |
Foreign Currency | ||
Incurred Related to | ||
Prior Years | $ (70.2) | $ 150.0 |
Liability for Unpaid Claims and CAE Reconciliation of Policy and Contract Benefits and Reserves for Future Policy and Contract Benefits (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|---|
Insurance [Abstract] | ||||
Policy and Contract Benefits | $ 1,674.1 | $ 1,605.2 | $ 1,539.0 | |
Reserves for Future Policy and Contract Benefits | 45,092.7 | 45,601.6 | 45,456.9 | |
Total Policy and Contract Benefits and Reserves for Future Policy and Contract Benefits | 46,766.8 | 46,995.9 | ||
Life Reserves for Future Policy and Contract Benefits | 8,303.4 | 8,209.6 | ||
Accident and Health Active Life Reserves | 11,521.5 | 10,532.4 | ||
Adjustment Related to Unrealized Investment Gains and Losses | 3,684.9 | 5,057.4 | ||
Liability for Unpaid Claims and Claim Adjustment Expenses | $ 23,257.0 | $ 23,222.0 | $ 23,196.5 | $ 23,249.5 |
Liability for Unpaid Claims and CAE Liability for Unpaid Claims - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2018 |
|
Liability for Claims and Claims Adjustment Expense - Narrative Information | ||
Long-term Care Reserve Increase, Before Tax | $ 750.8 | $ 750.8 |
Long-term Care Reserve Increase, After Tax | $ 593.1 | 593.1 |
Claim Reserve | ||
Liability for Claims and Claims Adjustment Expense - Narrative Information | ||
Long-term Care Reserve Increase, Before Tax | $ 236.0 |
Premium Income by Major Line of Business within Each Segment (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Segment Reporting Information | ||||
Premium Income | $ 2,251.8 | $ 2,153.6 | $ 6,722.8 | $ 6,438.7 |
Operating Segments | ||||
Segment Reporting Information | ||||
Premium Income | 2,251.8 | 2,153.6 | 6,722.8 | 6,438.7 |
Operating Segments | Unum US | ||||
Segment Reporting Information | ||||
Premium Income | 1,446.2 | 1,360.9 | 4,301.3 | 4,079.0 |
Operating Segments | Unum US | Group Long-term Disability | ||||
Segment Reporting Information | ||||
Premium Income | 444.1 | 435.2 | 1,322.7 | 1,307.3 |
Operating Segments | Unum US | Group Short-term Disability | ||||
Segment Reporting Information | ||||
Premium Income | 180.4 | 161.1 | 527.7 | 477.3 |
Operating Segments | Unum US | Group Life | ||||
Segment Reporting Information | ||||
Premium Income | 399.3 | 370.0 | 1,189.6 | 1,101.7 |
Operating Segments | Unum US | Accidental Death & Dismemberment | ||||
Segment Reporting Information | ||||
Premium Income | 39.6 | 37.2 | 116.9 | 110.5 |
Operating Segments | Unum US | Individual Disability | ||||
Segment Reporting Information | ||||
Premium Income | 109.5 | 104.4 | 319.1 | 318.1 |
Operating Segments | Unum US | Voluntary Benefits | ||||
Segment Reporting Information | ||||
Premium Income | 222.3 | 210.8 | 676.0 | 639.2 |
Operating Segments | Unum US | Dental and Vision | ||||
Segment Reporting Information | ||||
Premium Income | 51.0 | 42.2 | 149.3 | 124.9 |
Operating Segments | Unum UK | ||||
Segment Reporting Information | ||||
Premium Income | 138.0 | 131.5 | 416.5 | 379.6 |
Operating Segments | Unum UK | Group Long-term Disability | ||||
Segment Reporting Information | ||||
Premium Income | 91.3 | 87.0 | 271.8 | 251.6 |
Operating Segments | Unum UK | Group Life | ||||
Segment Reporting Information | ||||
Premium Income | 27.1 | 26.7 | 83.6 | 76.9 |
Operating Segments | Unum UK | Supplemental Insurance | ||||
Segment Reporting Information | ||||
Premium Income | 19.6 | 17.8 | 61.1 | 51.1 |
Operating Segments | Colonial Life | ||||
Segment Reporting Information | ||||
Premium Income | 400.0 | 378.7 | 1,193.7 | 1,129.3 |
Operating Segments | Colonial Life | Accident, Sickness, and Disability Insurance | ||||
Segment Reporting Information | ||||
Premium Income | 231.9 | 222.3 | 691.8 | 661.5 |
Operating Segments | Colonial Life | Life | ||||
Segment Reporting Information | ||||
Premium Income | 81.4 | 74.6 | 243.9 | 223.8 |
Operating Segments | Colonial Life | Cancer and Critical Illness | ||||
Segment Reporting Information | ||||
Premium Income | 86.7 | 81.8 | 258.0 | 244.0 |
Operating Segments | Closed Block | ||||
Segment Reporting Information | ||||
Premium Income | 267.6 | 282.5 | 811.3 | 850.8 |
Operating Segments | Closed Block | Individual Disability Insurance | ||||
Segment Reporting Information | ||||
Premium Income | 102.7 | 117.9 | 319.0 | 357.7 |
Operating Segments | Closed Block | Long-term Care | ||||
Segment Reporting Information | ||||
Premium Income | 163.0 | 162.4 | 485.8 | 486.4 |
Operating Segments | Closed Block | Other Insurance Product Line | ||||
Segment Reporting Information | ||||
Premium Income | $ 1.9 | $ 2.2 | $ 6.5 | $ 6.7 |
Selected Operating Statement Data by Segment (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Segment Reporting Information | ||||
Premium Income | $ 2,251.8 | $ 2,153.6 | $ 6,722.8 | $ 6,438.7 |
Net Investment Income | 619.2 | 609.0 | 1,845.1 | 1,831.9 |
Other Income | 50.1 | 46.7 | 147.9 | 148.1 |
Operating Segments | ||||
Segment Reporting Information | ||||
Premium Income | 2,251.8 | 2,153.6 | 6,722.8 | 6,438.7 |
Net Investment Income | 619.2 | 609.0 | 1,845.1 | 1,831.9 |
Other Income | 50.1 | 46.7 | 147.9 | 148.1 |
Adjusted Operating Revenue | 2,921.1 | 2,809.3 | 8,715.8 | 8,418.7 |
Adjusted Operating Income (Loss) | 366.3 | 357.0 | 1,067.0 | 1,050.4 |
Operating Segments | Unum US | ||||
Segment Reporting Information | ||||
Premium Income | 1,446.2 | 1,360.9 | 4,301.3 | 4,079.0 |
Net Investment Income | 200.3 | 201.0 | 591.0 | 609.1 |
Other Income | 30.7 | 26.5 | 88.5 | 85.3 |
Adjusted Operating Revenue | 1,677.2 | 1,588.4 | 4,980.8 | 4,773.4 |
Adjusted Operating Income (Loss) | 270.9 | 258.4 | 765.9 | 745.3 |
Operating Segments | Unum UK | ||||
Segment Reporting Information | ||||
Premium Income | 138.0 | 131.5 | 416.5 | 379.6 |
Net Investment Income | 26.4 | 28.5 | 86.1 | 88.3 |
Other Income | 0.0 | 0.6 | 0.0 | 0.6 |
Adjusted Operating Revenue | 164.4 | 160.6 | 502.6 | 468.5 |
Adjusted Operating Income (Loss) | 26.1 | 26.5 | 83.5 | 82.0 |
Operating Segments | Colonial Life | ||||
Segment Reporting Information | ||||
Premium Income | 400.0 | 378.7 | 1,193.7 | 1,129.3 |
Net Investment Income | 36.7 | 36.0 | 114.2 | 107.8 |
Other Income | 0.4 | 0.3 | 1.0 | 0.8 |
Adjusted Operating Revenue | 437.1 | 415.0 | 1,308.9 | 1,237.9 |
Adjusted Operating Income (Loss) | 84.2 | 81.7 | 249.8 | 245.9 |
Operating Segments | Closed Block | ||||
Segment Reporting Information | ||||
Premium Income | 267.6 | 282.5 | 811.3 | 850.8 |
Net Investment Income | 348.0 | 337.2 | 1,031.3 | 1,012.5 |
Other Income | 18.9 | 18.9 | 56.8 | 59.9 |
Adjusted Operating Revenue | 634.5 | 638.6 | 1,899.4 | 1,923.2 |
Adjusted Operating Income (Loss) | 32.2 | 26.6 | 90.7 | 90.8 |
Operating Segments | Corporate and Other | ||||
Segment Reporting Information | ||||
Premium Income | 0.0 | 0.0 | 0.0 | 0.0 |
Net Investment Income | 7.8 | 6.3 | 22.5 | 14.2 |
Other Income | 0.1 | 0.4 | 1.6 | 1.5 |
Adjusted Operating Revenue | 7.9 | 6.7 | 24.1 | 15.7 |
Adjusted Operating Income (Loss) | $ (47.1) | $ (36.2) | $ (122.9) | $ (113.6) |
Assets by Segment (Detail) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Segment Reporting Information | ||
Assets | $ 62,249.8 | $ 64,013.1 |
Operating Segments | ||
Segment Reporting Information | ||
Assets | 62,249.8 | 64,013.1 |
Operating Segments | Unum US | ||
Segment Reporting Information | ||
Assets | 17,297.1 | 18,109.1 |
Operating Segments | Unum UK | ||
Segment Reporting Information | ||
Assets | 3,211.3 | 3,428.1 |
Operating Segments | Colonial Life | ||
Segment Reporting Information | ||
Assets | 4,145.2 | 4,184.1 |
Operating Segments | Closed Block | ||
Segment Reporting Information | ||
Assets | 34,360.5 | 35,051.2 |
Operating Segments | Corporate and Other | ||
Segment Reporting Information | ||
Assets | $ 3,235.7 | $ 3,240.6 |
Reconciliation of Total Revenue and Income (Loss) before Income Tax by Segment to Adjusted Operating Revenue and Adjusted Operating Income (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Segment Reporting, Revenue Reconciling Item | ||||
Total Revenue | $ 2,927.8 | $ 2,819.1 | $ 8,717.7 | $ 8,447.6 |
Net Realized Investment Gain | 6.7 | 9.8 | 1.9 | 28.9 |
Income (Loss) Before Income Tax Expense (Benefit) | (377.8) | 366.8 | 318.1 | 1,058.7 |
Net Realized Investment Gain | 6.7 | 9.8 | 1.9 | 28.9 |
Long-term Care Reserve Increase | (750.8) | (750.8) | ||
Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Total Revenue | 2,927.8 | 2,819.1 | 8,717.7 | 8,447.6 |
Net Realized Investment Gain | 6.7 | 9.8 | 1.9 | 28.9 |
Adjusted Operating Revenue | 2,921.1 | 2,809.3 | 8,715.8 | 8,418.7 |
Income (Loss) Before Income Tax Expense (Benefit) | (377.8) | 366.8 | 318.1 | 1,058.7 |
Net Realized Investment Gain | 6.7 | 9.8 | 1.9 | 28.9 |
Loss Related to Guaranty Fund Assessment | 0.0 | 0.0 | 0.0 | (20.6) |
Long-term Care Reserve Increase | (750.8) | 0.0 | (750.8) | 0.0 |
Adjusted Operating Income (Loss) | $ 366.3 | $ 357.0 | $ 1,067.0 | $ 1,050.4 |
Segment Information Segment Information - Additional Information (Details) |
9 Months Ended |
---|---|
Sep. 30, 2018
Integer
| |
Segment Reporting [Abstract] | |
Number of Operating Segments | 3 |
Employee Benefit Plans Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Pension Plan | Domestic Plan | ||||
Defined Benefit Plan and Other Postretirement Benefit Plans Disclosure | ||||
Service Cost | $ 2.3 | $ 2.0 | $ 6.9 | $ 5.9 |
Interest Cost | 19.9 | 21.1 | 59.8 | 63.3 |
Expected Return on Plan Assets | (26.1) | (25.8) | (78.4) | (77.3) |
Amortization of Net Actuarial Loss | 5.4 | 4.9 | 16.3 | 14.7 |
Amortization of Prior Service Credit | 0.0 | (0.1) | 0.0 | (0.2) |
Net Periodic Benefit Cost | 1.5 | 2.1 | 4.6 | 6.4 |
Pension Plan | Foreign Plan | ||||
Defined Benefit Plan and Other Postretirement Benefit Plans Disclosure | ||||
Service Cost | 0.0 | 0.0 | 0.0 | 0.0 |
Interest Cost | 1.5 | 1.6 | 4.6 | 4.6 |
Expected Return on Plan Assets | (2.3) | (2.1) | (7.0) | (5.9) |
Amortization of Net Actuarial Loss | 0.2 | 0.2 | 0.5 | 0.5 |
Amortization of Prior Service Credit | 0.0 | 0.0 | 0.0 | 0.0 |
Net Periodic Benefit Cost | (0.6) | (0.3) | (1.9) | (0.8) |
OPEB Plan | ||||
Defined Benefit Plan and Other Postretirement Benefit Plans Disclosure | ||||
Service Cost | 0.0 | 0.0 | 0.0 | 0.0 |
Interest Cost | 1.2 | 1.4 | 3.7 | 4.4 |
Expected Return on Plan Assets | (0.1) | (0.1) | (0.4) | (0.4) |
Amortization of Net Actuarial Loss | 0.0 | 0.0 | 0.0 | 0.0 |
Amortization of Prior Service Credit | (0.1) | (0.1) | (0.2) | (0.3) |
Net Periodic Benefit Cost | $ 1.0 | $ 1.2 | $ 3.1 | $ 3.7 |
Net Income (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Numerator | ||||
Net Income (Loss) | $ (284.7) | $ 252.3 | $ 274.3 | $ 727.3 |
Denominator (000s) | ||||
Weighted Average Common Shares - Basic | 218,892,800 | 225,288,100 | 220,513,100 | 227,375,500 |
Dilution for Assumed Exercises of Stock Options and Nonvested Stock Awards | 0 | 741,700 | 433,200 | 805,000 |
Weighted Average Common Shares - Assuming Dilution | 218,892,800 | 226,029,800 | 220,946,300 | 228,180,500 |
Net Income (Loss) Per Common Share | ||||
Basic | $ (1.30) | $ 1.12 | $ 1.24 | $ 3.20 |
Assuming Dilution | $ (1.30) | $ 1.12 | $ 1.24 | $ 3.19 |
Stockholders' Equity and Earnings (Loss) Per Common Share Treasury Stock Transactions (Details) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Equity, Class of Treasury Stock | ||||
Number of Treasury Shares Repurchased | 0.0 | 2.0 | 4.4 | 6.3 |
Cost of Shares Repurchased | $ 0.0 | $ 100.2 | $ 200.3 | $ 300.3 |
Commission Paid on Common Stock Repurchased | $ 0.1 | $ 0.2 | ||
Repurchase Program Authorized in May 2018 | ||||
Equity, Class of Treasury Stock | ||||
Authorized Stock Repurchases | 750.0 | 750.0 | ||
Remaining Authorized Share Repurchases | 650.0 | 650.0 | ||
Repurchase Program Authorized in May 2017 | ||||
Equity, Class of Treasury Stock | ||||
Authorized Stock Repurchases | $ 750.0 | $ 750.0 |
Stockholders' Equity and Earnings Per Common Share - Additional Information (Detail) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Stockholders Equity and Earnings Per Common Share Additional Information [Abstract] | ||||
Exercise Price Floor on Outstanding Stock Options | $ 23.35 | |||
Exercise Price Ceiling on Outstanding Stock Options | 26.29 | |||
Outstanding Restricted Stock Unit Grant Prices Lower Limit | 27.85 | |||
Outstanding Restricted Stock Unit Grant Prices Upper Limit | 55.26 | |||
Outstanding Performance Share Unit Awards Grant Price Range Lower Limit | 27.85 | |||
Outstanding Performance Share Unit Awards Grant Price Range Upper Limit | $ 49.86 | |||
Number of Antidilutive Securities Excluded from Computation of Earnings Per Share | 1,000,000 | 400,000 | 600,000 | 400,000 |
Authorized Shares of Preferred Stock | 25,000,000 | 25,000,000 | ||
Par Value Per Share of Preferred Stock | $ 0.10 | $ 0.10 | ||
Issued Shares of Preferred Stock | 0 | 0 |
Debt - Additional Information (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Debt Narrative Detail Information | ||
Letters of Credit Outstanding, Amount | $ 2.1 | |
Amount Outsanding on Credit Facility | 0.0 | |
Receive Variable/Pay Fixed | Net Realized Investments Gain (Loss) | ||
Debt Narrative Detail Information | ||
Loss on Derivative Contract Termination | $ 0.1 | |
Long-term Debt | ||
Debt Narrative Detail Information | ||
Extinguishment of Debt, Amount | $ 3.4 | |
Northwind Holdings LLC | ||
Debt Narrative Detail Information | ||
Principal Payments on Long-term Debt | 45.0 | |
Senior Notes | Notes Payable due 2018 | ||
Debt Narrative Detail Information | ||
Long-term Debt, Current Maturities | $ 200.0 | |
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |
Junior Subordinated Notes | Notes Payable Due 2058 | ||
Debt Narrative Detail Information | ||
Proceeds from Issuance of Debt | $ 300.0 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.25% |
Other Income Tax - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended |
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Internal Revenue Service (IRS) | |||
Income Tax - Additional Information | |||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Provisional Income Tax Benefit | $ 31.5 | ||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Change in Tax Rate, Deferred Tax Liability, Provisional Income Tax Benefit | 97.9 | ||
Tax Cuts and Jobs Act of 2017, Accounting Complete | false | ||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense | $ 11.5 | $ 66.4 | |
Tax Year 2017 | |||
Income Tax - Additional Information | |||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | $ 266.5 |
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