XML 27 R16.htm IDEA: XBRL DOCUMENT v3.5.0.2
Investments (Tables)
 9 Months Ended
Sep. 30, 2016
Investments [Abstract]  
Amortized Cost and Estimated Fair Values Of Fixed Maturities
The amortized cost and estimated fair values by type and contractual maturity of fixed maturity securities are shown in the following tables. Expected maturities will differ from contractual maturities since borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
Fixed Maturity Securities by Type:
 
 
 
 
 
 
 
September 30, 2016:
 
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
 
U.S. & Canadian Governments
$
1,402.7

 
$
41.0

 
$
—

 
$
1,443.7

Corporate
6,611.3

 
317.0

 
17.4

 
6,911.0

 
$
8,014.1

 
$
358.1

 
$
17.4

 
$
8,354.7

 
 
 
 
 
 
 
 
Held to maturity:
 
 
 
 
 
 
 
Tax-exempt
$
748.5

 
$
18.7

 
$
.5

 
$
766.7

 
 
 
 
 
 
 
 
December 31, 2015:
 
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
 
U.S. & Canadian Governments
$
1,269.5

 
$
18.9

 
$
3.6

 
$
1,284.9

Corporate
6,879.9

 
166.8

 
150.2

 
6,896.5

 
$
8,149.4

 
$
185.8

 
$
153.8

 
$
8,181.5

 
 
 
 
 
 
 
 
Held to maturity:
 
 
 
 
 
 
 
Tax-exempt
$
355.8

 
$
4.0

 
$
.1

 
$
359.7
Amortized Cost and Estimated Fair Values Of Fixed Maturities By Contractual Maturities
 
Amortized
Cost
 
Estimated
Fair
Value
Fixed Maturity Securities Stratified by Contractual Maturity at September 30, 2016:
 
 
 
Available for sale:
 
 
 
Due in one year or less
$
718.4

 
$
726.2

Due after one year through five years
3,997.6

 
4,170.1

Due after five years through ten years
3,150.1

 
3,299.1

Due after ten years
147.9

 
159.2

 
$
8,014.1

 
$
8,354.7

 
 
 
 
Held to maturity:
 
 
 
Due in one year or less
$
—

 
$
—

Due after one year through five years
23.3

 
23.3

Due after five years through ten years
687.1

 
704.3

Due after ten years
38.0

 
39.1

 
$
748.5

 
$
766.7
Equity Securities Reflecting Reported Cost
A summary of the Company's equity securities follows:
 

Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
Equity Securities:
 
 
 
 
 
 
 
September 30, 2016
$
2,396.6

 
$
423.1

 
$
32.3

 
$
2,787.4

December 31, 2015
$
1,826.4

 
$
266.7

 
$
105.3

 
$
1,987.8
Gross Unrealized Losses and Fair Value, Aggregated
The following table reflects the Company's gross unrealized losses and fair value, aggregated by category and length of time that individual available for sale and held to maturity securities have been in an unrealized loss position. Fair value and issuer's cost comparisons follow:
 
12 Months or Less
 
Greater than 12 Months
 
Total
 
Fair
Value
 
Unrealized Losses
 
Fair
Value
 
Unrealized Losses
 
Fair
Value
 
Unrealized Losses
September 30, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Maturity Securities:
 
 
 
 
 
 
 
 
 
 
 
  U.S. & Canadian Governments
$
70.1

 
$
—

 
$
1.2

 
$
—

 
$
71.4

 
$
—

  Tax-exempt
141.0

 
.5

 
—

 
—

 
141.0

 
.5

  Corporate
219.7

 
2.6

 
287.0

 
14.7

 
506.7

 
17.4

Subtotal
430.8

 
3.2

 
288.2

 
14.7

 
719.1

 
18.0

Equity Securities
217.0

 
7.3

 
193.4

 
25.0

 
410.4

 
32.3

Total
$
647.9

 
$
10.5

 
$
481.7

 
$
39.8

 
$
1,129.6

 
$
50.3

 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Maturity Securities:
 
 
 
 
 
 
 
 
 
 
 
  U.S. & Canadian Governments
$
363.3

 
$
2.8

 
$
59.2

 
$
.7

 
$
422.6

 
$
3.6

  Tax-exempt
49.5

 
.1

 
—

 
—

 
49.5

 
.1

  Corporate
2,214.5

 
100.0

 
336.4

 
50.2

 
2,550.9

 
150.2

Subtotal
2,627.4

 
103.0

 
395.7

 
50.9

 
3,023.1

 
154.0

Equity Securities
502.1

 
87.3

 
31.3

 
17.9

 
533.4

 
105.3

Total
$
3,129.5

 
$
190.4

 
$
427.0

 
$
68.9

 
$
3,556.6

 
$
259.3
Fair Value, Assets Measured on Recurring Basis
The following tables show a summary of the fair value of financial assets segregated among the various input levels described above:
 
 
Fair Value Measurements
As of September 30, 2016:
 
Level 1
 
Level 2
 
Level 3
 
Total
Available for sale:
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
U.S. & Canadian Governments
 
$
745.5

 
$
698.2

 
$
—

 
$
1,443.7

Corporate
 
—

 
6,900.5

 
10.5

 
6,911.0

Equity securities
 
2,785.2

 
—

 
2.2

 
2,787.4

Short-term investments
 
707.0

 
—

 
—

 
707.0

Held to maturity:
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
Tax-exempt
 
$
—

 
$
766.7

 
$
—

 
$
766.7

 
 
 
 
 
 
 
 
 
As of December 31, 2015:
 
 
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
U.S. & Canadian Governments
 
$
606.6

 
$
678.2

 
$
—

 
$
1,284.9

Corporate
 
—

 
6,886.0

 
10.5

 
6,896.5

Equity securities
 
1,985.8

 
—

 
2.0

 
1,987.8

Short-term investments
 
669.4

 
—

 
—

 
669.4

Held to maturity:
 
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
 
Tax-exempt
 
$
—

 
$
359.7

 
$
—

 
$
359.7
Investment Income
The following table reflects the composition of net investment income, net realized gains or losses, and the net change in unrealized investment gains or losses for each of the periods shown.
 
Quarters Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2016
 
2015
 
2016
 
2015
Investment income from:
 
 
 
 
 
 
 
Fixed maturity securities
$
73.2

 
$
73.8

 
$
222.7

 
$
221.4

Equity securities
22.0

 
30.3

 
62.7

 
66.7

Short-term investments
.4

 
.2

 
1.6

 
.6

Other sources
.9

 
.7

 
2.9

 
2.6

Gross investment income
96.7

 
105.1

 
290.0

 
291.4

Investment expenses (a)
.9

 
.8

 
2.9

 
2.5

Net investment income
$
95.7

 
$
104.2

 
$
287.0

 
$
288.9

 
 
 
 
 
 
 
 
Realized gains (losses) on:
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
Gains
$
3.9

 
$
3.1

 
$
11.0

 
$
11.3

Losses
(11.6
)
 
—

 
(12.3
)
 
(.4
)
Net
(7.6
)
 
3.1

 
(1.2
)
 
10.8

Equity securities:
 
 
 
 
 
 
 
Gains
16.5

 
40.0

 
84.8

 
69.7

Losses
(1.5
)
 
(1.4
)
 
(25.4
)
 
(3.1
)
Net
14.9

 
38.5

 
59.4

 
66.6

Other long-term investments, net
—

 
(.2
)
 
—

 
(.5
)
Total realized gains (losses)
7.2

 
41.4

 
58.1

 
77.0

Income taxes (credits)
2.5

 
14.5

 
20.3

 
26.9

Net realized gains (losses)
$
4.7

 
$
26.9

 
$
37.7

 
$
50.0

 
 
 
 
 
 
 
 
Changes in unrealized investment gains (losses) on:
 
 
 
 
 
 
 
Fixed maturity securities
$
16.9

 
$
(41.3
)
 
$
308.7

 
$
(97.3
)
Less: Deferred income taxes (credits)
5.9

 
(14.3
)
 
107.9

 
(34.0
)
 
11.0

 
(27.0
)
 
200.8

 
(63.3
)
 
 
 
 
 
 
 
 
Equity securities & other long-term investments
(16.6
)
 
(148.7
)
 
229.6

 
(244.8
)
Less: Deferred income taxes (credits)
(5.8
)
 
(51.9
)
 
80.3

 
(85.7
)
 
(10.8
)
 
(96.7
)
 
149.2

 
(159.1
)
Net changes in unrealized investment gains (losses)
$
.1

 
$
(123.7
)
 
$
350.1

 
$
(222.5
)
__________

(a)
Investment expenses consist of personnel costs and investment management and custody service fees, as well as interest incurred on funds held of $.1 and $- for the quarters ended September 30, 2016 and 2015, and $.3 and $.2 for the nine months ended September 30, 2016 and 2015, respectively.