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Investments (Tables)
6 Months Ended
Jun. 30, 2014
Available-for-sale Securities Including Securities Pledged [Line Items]  
Marketable Securities
Available-for-sale and fair value option ("FVO") fixed maturities and equity securities were as follows as of June 30, 2014:
 
Amortized
Cost
 
Gross
Unrealized
Capital
Gains
 
Gross
Unrealized
Capital
Losses
 
Embedded Derivatives(2)
 
Fair
Value
 
OTTI(3)
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasuries
$
692.5

 
$
78.9

 
$
0.2

 
$

 
$
771.2

 
$

U.S. Government agencies and authorities
54.9

 
1.9

 

 

 
56.8

 

State, municipalities and political subdivisions
109.1

 
11.6

 

 

 
120.7

 

U.S. corporate securities
10,304.5

 
921.9

 
45.9

 

 
11,180.5

 
1.8

 
 
 
 
 
 
 
 
 
 
 
 
Foreign securities(1):


 


 
 
 
 
 


 


Government
362.3

 
28.3

 
4.5

 

 
386.1

 

Other
5,220.7

 
408.8

 
18.5

 

 
5,611.0

 

Total foreign securities
5,583.0

 
437.1

 
23.0

 

 
5,997.1

 

 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Agency
1,638.3

 
130.7

 
6.8

 
15.5

 
1,777.7

 
0.1

Non-Agency
253.5

 
57.3

 
2.0

 
12.2

 
321.0

 
12.6

Total Residential mortgage-backed securities
1,891.8

 
188.0

 
8.8

 
27.7

 
2,098.7

 
12.7

 
 
 
 
 
 
 
 
 
 
 
 
Commercial mortgage-backed securities
756.4

 
70.2

 
0.2

 

 
826.4

 

Other asset-backed securities
461.7

 
16.4

 
2.0

 

 
476.1

 
3.0

Total fixed maturities, including securities pledged
19,853.9

 
1,726.0

 
80.1

 
27.7

 
21,527.5

 
17.5

Less: Securities pledged
223.1

 
15.3

 
2.0

 

 
236.4

 

Total fixed maturities
19,630.8

 
1,710.7

 
78.1

 
27.7

 
21,291.1

 
17.5

Equity securities
107.5

 
15.6

 

 

 
123.1

 

Total fixed maturities and equity securities investments
$
19,738.3

 
$
1,726.3

 
$
78.1

 
$
27.7

 
$
21,414.2

 
$
17.5

(1) Primarily U.S. dollar denominated.
(2) Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.
(3) Represents Other-than Temporary-Impairments ("OTTI") reported as a component of Other comprehensive income (loss).
Available-for-sale and FVO fixed maturities and equity securities were as follows as of December 31, 2013:
 
Amortized
Cost
 
Gross
Unrealized
Capital
Gains
 
Gross
Unrealized
Capital
Losses
 
Embedded Derivatives(2)
 
Fair
Value
 
OTTI(3)
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasuries
$
636.5

 
$
36.5

 
$
2.9

 
$

 
$
670.1

 
$

U.S. Government agencies and authorities
237.1

 
5.0

 

 

 
242.1

 

State, municipalities and political subdivisions
77.2

 
5.9

 
0.1

 

 
83.0

 

U.S. corporate securities
10,326.0

 
581.0

 
238.8

 

 
10,668.2

 
1.9

 
 
 
 
 
 
 
 
 
 
 
 
Foreign securities(1):


 
 
 
 
 
 
 
 
 


Government
422.9

 
25.2

 
16.5

 

 
431.6

 

Other
5,149.6

 
272.9

 
83.5

 

 
5,339.0

 

Total foreign securities
5,572.5

 
298.1

 
100.0

 

 
5,770.6

 

 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Agency
1,638.2

 
121.9

 
17.9

 
16.9

 
1,759.1

 
0.2

Non-Agency
278.1

 
55.2

 
4.8

 
12.1

 
340.6

 
15.1

Total Residential mortgage-backed securities
1,916.3

 
177.1

 
22.7

 
29.0

 
2,099.7

 
15.3

 
 
 
 
 
 
 
 
 
 
 
 
Commercial mortgage-backed securities
624.5

 
68.1

 
0.9

 

 
691.7

 
4.4

Other asset-backed securities
465.8

 
18.0

 
3.4

 

 
480.4

 
3.2

Total fixed maturities, including securities pledged
19,855.9

 
1,189.7

 
368.8

 
29.0

 
20,705.8

 
24.8

Less: Securities pledged
137.9

 
5.9

 
3.7

 

 
140.1

 

Total fixed maturities
19,718.0

 
1,183.8

 
365.1

 
29.0

 
20,565.7

 
24.8

Equity securities
119.4

 
15.8

 
0.3

 

 
134.9

 

Total fixed maturities and equity securities investments
$
19,837.4

 
$
1,199.6

 
$
365.4

 
$
29.0

 
$
20,700.6

 
$
24.8

(1) Primarily U.S. dollar denominated.
(2) Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.
(3) Represents OTTI reported as a component of Other comprehensive income (loss).

Investments Classified by Contractual Maturity Date
The amortized cost and fair value of fixed maturities, including securities pledged, as of June 30, 2014, are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called or prepaid. Mortgage-backed securities ("MBS") and Other asset-backed securities ("ABS") are shown separately because they are not due at a single maturity date.
 
Amortized
Cost
 
Fair
Value
Due to mature:
 
 
 
One year or less
$
684.3

 
$
700.1

After one year through five years
3,974.7

 
4,284.8

After five years through ten years
6,147.4

 
6,527.4

After ten years
5,937.6

 
6,614.0

Mortgage-backed securities
2,648.2

 
2,925.1

Other asset-backed securities
461.7

 
476.1

Fixed maturities, including securities pledged
$
19,853.9

 
$
21,527.5

U.S. and Foreign Corporate Securities by Industry
The following tables set forth the composition of the U.S. and foreign corporate securities within the fixed maturity portfolio by industry category as of the dates indicated:
 
Amortized
Cost
 
Gross Unrealized Capital Gains
 
Gross Unrealized Capital Losses
 
Fair Value
June 30, 2014
 
 
 
 
 
 
 
Communications
$
1,288.3

 
$
137.6

 
$
5.2

 
$
1,420.7

Financial
2,247.4

 
227.8

 
2.6

 
2,472.6

Industrial and other companies
8,923.3

 
661.3

 
48.8

 
9,535.8

Transportation
416.1

 
37.3

 
1.0

 
452.4

Utilities
2,650.1

 
266.7

 
6.8

 
2,910.0

Total
$
15,525.2

 
$
1,330.7

 
$
64.4

 
$
16,791.5

 
 
 
 
 
 
 
 
December 31, 2013
 
 
 
 
 
 
 
Communications
$
1,315.9

 
$
81.5

 
$
36.8

 
$
1,360.6

Financial
2,114.7

 
166.9

 
20.2

 
2,261.4

Industrial and other companies
8,878.5

 
423.5

 
213.1

 
9,088.9

Transportation
440.0

 
22.5

 
9.9

 
452.6

Utilities
2,726.5

 
159.5

 
42.3

 
2,843.7

Total
$
15,475.6

 
$
853.9

 
$
322.3

 
$
16,007.2

Schedule of Unrealized Loss on Investments
Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of June 30, 2014:
 
Six Months or Less
Below Amortized Cost
 
More Than Six
Months and Twelve
Months or Less
Below Amortized Cost
 
More Than Twelve
Months Below
Amortized Cost
 
Total
 
 
Fair
Value
 
Unrealized
Capital Losses
 
Fair
Value
 
Unrealized
Capital Losses
 
Fair
Value
 
Unrealized
Capital Losses
 
Fair
Value
 
Unrealized
Capital Losses
 
U.S. Treasuries
$
62.0

 
$
0.1

 
$

 
$

 
$
4.9

 
$
0.1

 
$
66.9

 
$
0.2

 
U.S. government, agencies and authorities
2.5

 

*

 

 

 

 
2.5

 

*
U.S. corporate, state and municipalities
144.5

 
0.5

 
47.8

 
3.2

 
1,298.7

 
42.2

 
1,491.0

 
45.9

 
Foreign
54.3

 
0.2

 
13.3

 
0.1

 
618.8

 
22.7

 
686.4

 
23.0

 
Residential mortgage-backed
67.2

 
0.5

 
11.2

 
0.2

 
241.3

 
8.1

 
319.7

 
8.8

 
Commercial mortgage-backed
27.7

 
0.2

 

 

 

 

 
27.7

 
0.2

 
Other asset-backed
1.7

 

 

 

 
41.8

 
2.0

 
43.5

 
2.0

 
Total
$
359.9

 
$
1.5

 
$
72.3

 
$
3.5

 
$
2,205.5

 
$
75.1

 
$
2,637.7

 
$
80.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*Less than $0.1.

Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of December 31, 2013:
 
Six Months or Less
Below Amortized Cost
 
More Than Six
Months and Twelve
Months or Less
Below Amortized Cost
 
More Than Twelve
Months Below
Amortized Cost
 
Total
 
Fair
Value
 
Unrealized
Capital Losses
 
Fair
Value
 
Unrealized
Capital Losses
 
Fair
Value
 
Unrealized
Capital Losses
 
Fair
Value
 
Unrealized
Capital Losses
U.S. Treasuries
$
124.4

 
$
2.1

 
$
34.2

 
$
0.8

 
$

 
$

 
$
158.6

 
$
2.9

U.S. government, agencies and authorities


 

 

 

 

 

 

 

U.S. corporate, state and municipalities
1,002.8

 
22.9

 
2,413.2

 
183.8

 
236.9

 
32.2

 
3,652.9

 
238.9

Foreign
448.8

 
5.7

 
1,063.9

 
86.4

 
76.2

 
7.9

 
1,588.9

 
100.0

Residential mortgage-backed
262.3

 
2.9

 
212.9

 
12.0

 
105.8

 
7.8

 
581.0

 
22.7

Commercial mortgage-backed
77.9

 
0.9

 

 

 

 

 
77.9

 
0.9

Other asset-backed
38.9

 
0.2

 
30.3

 
0.2

 
26.0

 
3.0

 
95.2

 
3.4

Total
$
1,955.1

 
$
34.7

 
$
3,754.5

 
$
283.2

 
$
444.9

 
$
50.9

 
$
6,154.5

 
$
368.8

Schedule of Mortgage Loans Real Estate and Valuation Allowance
The following table summarizes the activity in the allowance for losses for all commercial mortgage loans for the periods indicated:
 
June 30, 2014
 
December 31, 2013
Collective valuation allowance for losses, balance at January 1
$
1.2

 
$
1.3

Addition to (reduction of) allowance for losses

 
(0.1
)
Collective valuation allowance for losses, end of period
$
1.2

 
$
1.2

The following table summarizes the Company's investment in mortgage loans as of the dates indicated:
 
June 30, 2014
 
December 31, 2013
Commercial mortgage loans
$
3,435.6

 
$
3,397.3

Collective valuation allowance for losses
(1.2
)
 
(1.2
)
Total net commercial mortgage loans
$
3,434.4

 
$
3,396.1

Impaired Financing Receivables
The following table presents information on the average investment during the period in impaired loans and interest income recognized on impaired and troubled debt restructured loans for the periods indicated:
 
Three Months Ended June 30,
 
2014
 
2013
Impaired loans, average investment during the period (amortized cost)(1)
$
40.0

 
$
5.5

Interest income recognized on impaired loans, on an accrual basis(1)
0.6

 
0.1

Interest income recognized on impaired loans, on a cash basis(1)
0.6

 
0.1

Interest income recognized on troubled debt restructured loans, on an accrual basis
0.5

 

 
 
 
 
 
Six Months Ended June 30,
 
2014
 
2013
Impaired loans, average investment during the period (amortized cost)(1)
$
40.0

 
$
5.6

Interest income recognized on impaired loans, on an accrual basis(1)
1.2

 
0.2

Interest income recognized on impaired loans, on a cash basis(1)
1.0

 
0.2

Interest income recognized on troubled debt restructured loans, on an accrual basis
1.0

 

(1)Includes amounts for Troubled debt restructured loans.
 
 
 
The carrying values and unpaid principal balances of impaired mortgage loans were as follows as of the dates indicated:
 
June 30, 2014
 
December 31, 2013
Impaired loans with allowances for losses
$

 
$

Impaired loans without allowances for losses
37.2

 
42.9

Subtotal
37.2

 
42.9

Less: Allowances for losses on impaired loans

 

Impaired loans, net
$
37.2

 
$
42.9

Unpaid principal balance of impaired loans
$
38.7

 
$
44.4

Troubled Debt Restructurings on Financing Receivables
The following table presents information on restructured loans as of the dates indicated:
 
June 30, 2014
 
December 31, 2013
Troubled debt restructured loans
$
31.9

 
$
37.5

Loans Receivable, Grouped by Loan to Value and Debt Service Coverage Ratio
Loan-to-value ("LTV") and debt service coverage ("DSC") ratios are measures commonly used to assess the risk and quality of mortgage loans. The LTV ratio, calculated at time of origination, is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property’s net income to its debt service payments. A DSC ratio of less than 1.0 indicates that a property’s operations do not generate sufficient income to cover debt payments. These ratios are utilized as part of the review process described above.

The following table presents the LTV ratios as of the dates indicated:
 
June 30, 2014(1)
 
December 31, 2013(1)
Loan-to-Value Ratio:
 
 
 
0% - 50%
$
440.3

 
$
495.7

>50% - 60%
912.6

 
894.5

>60% - 70%
1,957.0

 
1,879.5

>70% - 80%
113.6

 
114.9

>80% and above
12.1

 
12.7

Total Commercial mortgage loans
$
3,435.6

 
$
3,397.3

(1) Balances do not include collective valuation allowance for losses.

The following table presents the DSC ratios as of the dates indicated:
 
June 30, 2014(1)
 
December 31, 2013(1)
Debt Service Coverage Ratio:
 
 
 
Greater than 1.5x
$
2,429.1

 
$
2,388.5

>1.25x - 1.5x
540.2

 
542.4

>1.0x - 1.25x
282.9

 
275.8

Less than 1.0x
183.0

 
190.5

Commercial mortgage loans secured by land or construction loans
0.4

 
0.1

Total Commercial mortgage loans
$
3,435.6

 
$
3,397.3

(1) Balances do not include collective valuation allowance for losses.

Mortgage Loans by Geographic Location of Collateral
Properties collateralizing mortgage loans are geographically dispersed throughout the United States, as well as diversified by property type, as reflected in the following tables as of the dates indicated:
 
June 30, 2014(1)
 
December 31, 2013(1)
 
Gross
Carrying Value
 
% of
Total
 
Gross
Carrying Value
 
% of
Total
Commercial Mortgage Loans by U.S. Region:
 
 
 
 
 
 
 
Pacific
$
754.9

 
22.0
%
 
$
752.8

 
22.3
%
South Atlantic
747.2

 
21.7
%
 
707.8

 
20.8
%
West South Central
459.5

 
13.4
%
 
467.1

 
13.7
%
Middle Atlantic
444.3

 
12.9
%
 
411.4

 
12.1
%
East North Central
404.7

 
11.8
%
 
383.1

 
11.3
%
Mountain
270.0

 
7.9
%
 
263.9

 
7.8
%
West North Central
224.5

 
6.5
%
 
224.9

 
6.6
%
East South Central
68.2

 
2.0
%
 
69.6

 
2.0
%
New England
62.3

 
1.8
%
 
116.7

 
3.4
%
Total Commercial mortgage loans
$
3,435.6

 
100.0
%
 
$
3,397.3

 
100.0
%
(1) Balances do not include collective valuation allowance for losses.
 
June 30, 2014(1)
 
December 31, 2013(1)
 
Gross
Carrying Value
 
% of
Total
 
Gross
Carrying Value
 
% of
Total
Commercial Mortgage Loans by Property Type:
 
 
 
 
 
 
 
Retail
$
1,080.3

 
31.4
%
 
$
1,082.1

 
31.9
%
Industrial
931.4

 
27.1
%
 
972.6

 
28.6
%
Apartments
486.3

 
14.2
%
 
445.2

 
13.1
%
Office
444.0

 
12.9
%
 
462.1

 
13.6
%
Hotel/Motel
158.1

 
4.6
%
 
182.8

 
5.4
%
Mixed Use
143.9

 
4.2
%
 
70.9

 
2.1
%
Other
191.6

 
5.6
%
 
181.6

 
5.3
%
Total Commercial mortgage loans
$
3,435.6

 
100.0
%
 
$
3,397.3

 
100.0
%

Mortgage Loans by Property Type of Collateral
 
June 30, 2014(1)
 
December 31, 2013(1)
 
Gross
Carrying Value
 
% of
Total
 
Gross
Carrying Value
 
% of
Total
Commercial Mortgage Loans by Property Type:
 
 
 
 
 
 
 
Retail
$
1,080.3

 
31.4
%
 
$
1,082.1

 
31.9
%
Industrial
931.4

 
27.1
%
 
972.6

 
28.6
%
Apartments
486.3

 
14.2
%
 
445.2

 
13.1
%
Office
444.0

 
12.9
%
 
462.1

 
13.6
%
Hotel/Motel
158.1

 
4.6
%
 
182.8

 
5.4
%
Mixed Use
143.9

 
4.2
%
 
70.9

 
2.1
%
Other
191.6

 
5.6
%
 
181.6

 
5.3
%
Total Commercial mortgage loans
$
3,435.6

 
100.0
%
 
$
3,397.3

 
100.0
%

(1) Balances do not include collective valuation allowance for losses.
Mortgage Loans by Year of Origination
The following table sets forth the breakdown of mortgages by year of origination as of the dates indicated:
 
June 30, 2014(1)
 
December 31, 2013(1)
Year of Origination:
 
 
 
2014
$
232.1

 
$

2013
762.0

 
785.2

2012
895.1

 
908.1

2011
730.9

 
792.8

2010
110.1

 
121.1

2009
67.9

 
68.4

2008 and prior
637.5

 
721.7

Total Commercial mortgage loans
$
3,435.6

 
$
3,397.3

(1) Balances do not include collective valuation allowance for losses.

Other than Temporary Impairment, Credit Losses Recognized in Earnings
The following tables identify the Company's credit-related and intent-related impairments included in the Condensed Consolidated Statements of Operations, excluding impairments included in Other comprehensive income (loss) by type for the periods indicated:
 
Three Months Ended June 30,
 
2014
 
2013
 
Impairment
 
No. of Securities
 
Impairment
 
No. of Securities
U.S. corporate
$

 

 
$

 

Foreign(1)
1.2

 
5

 

 

Residential mortgage-backed
0.2

 
12

 
1.3

 
21

Commercial mortgage-backed

 

 

 

Other asset-backed

*
1

 

 

Total
$
1.4

 
18

 
$
1.3

 
21

(1) Primarily U.S. dollar denominated.
*Less than $0.1
 
Six Months Ended June 30,
 
2014
 
2013
 
Impairment
 
No. of Securities
 
Impairment
 
No. of Securities
U.S. corporate
$
0.1

 
1

 
$

 

Foreign(1)
1.2

 
5

 

 

Residential mortgage-backed
0.9

 
15

 
1.8

 
27

Commercial mortgage-backed
0.1

 
2

 
0.1

 
2

Other asset-backed

*
1

 

 

Total
$
2.3

 
24

 
$
1.9

 
29

(1) Primarily U.S. dollar denominated.

 
 
 
 
 
 
 
*Less than $0.1
 
 
 
 
 
 
 

Net Investment Income
The following tables summarize Net investment income for the periods indicated:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
Fixed maturities
$
297.5

 
$
300.7

 
$
598.3

 
$
608.3

Equity securities, available-for-sale
2.4

 
(1.0
)
 
4.5

 
(0.1
)
Mortgage loans on real estate
41.7

 
40.9

 
81.8

 
77.5

Policy loans
3.3

 
3.2

 
6.6

 
6.4

Short-term investments and cash equivalents
0.2

 
0.3

 
0.3

 
0.5

Other
7.6

 
11.2

 
17.5

 
22.9

Gross investment income
352.7

 
355.3

 
709.0

 
715.5

Less: Investment expenses
12.6

 
12.4

 
25.3

 
24.4

Net investment income
$
340.1

 
$
342.9

 
$
683.7

 
$
691.1

Realized Gain (Loss) on Investments
Net realized capital gains (losses) were as follows for the periods indicated:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
Fixed maturities, available-for-sale, including securities pledged
$
(3.2
)
 
$
(2.0
)
 
$
0.3

 
$
(2.2
)
Fixed maturities, at fair value option
(10.9
)
 
(66.2
)
 
(23.5
)
 
(105.1
)
Equity securities, available-for-sale
0.3

 

 
1.3

 

Derivatives
4.6

 
(41.9
)
 
(12.9
)
 
(61.8
)
Embedded derivative - fixed maturities
(0.8
)
 
(11.8
)
 
(1.3
)
 
(17.2
)
Embedded derivative - product guarantees
(14.2
)
 
52.2

 
(32.0
)
 
76.5

Other investments

 
(0.2
)
 

 
(0.2
)
Net realized capital gains (losses)
$
(24.2
)
 
$
(69.9
)
 
$
(68.1
)
 
$
(110.0
)
After-tax net realized capital gains (losses)
$
(15.7
)
 
$
(47.3
)
 
$
(44.2
)
 
$
(73.4
)

Gain (Loss) on Investments
Proceeds from the sale of fixed maturities and equity securities, available-for-sale and the related gross realized gains and losses, before tax were as follows for the periods indicated:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
Proceeds on sales
$
499.0

 
$
87.0

 
$
970.0

 
$
923.2

Gross gains
8.6

 
1.9

 
20.9

 
9.2

Gross losses
10.2

 
2.5

 
20.1

 
8.3

Intent related impairment
 
Available-for-sale Securities Including Securities Pledged [Line Items]  
Other than Temporary Impairment, Credit Losses Recognized in Earnings
The following tables summarize these intent impairments, which are also recognized in earnings, by type for the periods indicated:
 
Three Months Ended June 30,
 
2014
 
2013
 
Impairment
 
No. of Securities
 
Impairment
 
No. of Securities
U.S. corporate
$

 

 
$

 

Foreign(1)
$
1.2

 
5

 
$

 

Residential mortgage-backed
0.1

 
2

 

 

Commercial mortgage-backed

 

 

 

Other asset-backed

 

 

 

Total
$
1.3

 
7

 
$

 

(1) Primarily U.S. dollar denominated.
 
 
Six Months Ended June 30,
 
2014
 
2013
 
Impairment
 
No. of Securities
 
Impairment
 
No. of Securities
U.S. corporate
$

 

 
$

 

Foreign(1)
$
1.2

 
5

 
$

 

Residential mortgage-backed
0.1

 
2

 

 

Commercial mortgage-backed
0.1

 
2

 
0.1

 
2

Other asset-backed

 

 

 

Total
$
1.4

 
9

 
$
0.1

 
2

(1) Primarily U.S. dollar denominated.
 

Credit related impairment
 
Available-for-sale Securities Including Securities Pledged [Line Items]  
Other than Temporary Impairment, Credit Losses Recognized in Earnings
The following tables identify the amount of credit impairments on fixed maturities for which a portion of the OTTI loss was recognized in Other comprehensive income (loss) and the corresponding changes in such amounts for the periods indicated:
 
Three Months Ended June 30,
 
2014
 
2013
Balance at April 1
$
19.6

 
$
19.8

Additional credit impairments:
 
 
 
On securities not previously impaired

 
0.6

On securities previously impaired
0.1

 
0.6

Reductions:
 
 
 
Securities sold, matured, prepaid or paid down
0.7

 
0.8

Balance at June 30
$
19.0

 
$
20.2

 
 
Six Months Ended June 30,
 
2014
 
2013
Balance at January 1
$
19.6

 
$
20.0

Additional credit impairments:
 
 
 
On securities not previously impaired
0.7

 
0.8

On securities previously impaired
0.2

 
1.0

Reductions:
 
 
 
Securities sold, matured, prepaid or paid down
1.5

 
1.6

Balance at June 30
$
19.0

 
$
20.2

Duration
 
Available-for-sale Securities Including Securities Pledged [Line Items]  
Schedule of Unrealized Loss on Investments
Unrealized capital losses (including noncredit impairments) in fixed maturities, including securities pledged, for instances in which fair value declined below amortized cost by greater than or less than 20% for consecutive months as indicated in the tables below, were as follows as of the dates indicated:
 
Amortized Cost
 
Unrealized Capital Losses
 
Number of Securities
 
< 20%
 
> 20%
 
< 20%
 
> 20%
 
< 20%
 
> 20%
June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
Six months or less below amortized cost
$
422.3

 
$

*
$
6.1

 
$

*
90

 
1

More than six months and twelve months or less below amortized cost
94.3

 

 
4.5

 

 
30

 

More than twelve months below amortized cost
2,199.0

 
2.2

 
68.9

 
0.6

 
344

 
2

Total
$
2,715.6

 
$
2.2

 
$
79.5

 
$
0.6

 
464

 
3

*Less than $0.1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
Six months or less below amortized cost
$
2,054.4

 
$
24.1

 
$
45.3

 
$
5.3

 
322

 
7

More than six months and twelve months or less below amortized cost
3,991.4

 
23.5

 
272.6

 
5.8

 
502

 
3

More than twelve months below amortized cost
420.4

 
9.5

 
37.3

 
2.5

 
137

 
8

Total
$
6,466.2

 
$
57.1

 
$
355.2

 
$
13.6

 
961

 
18

Market Sector (Type of Security)
 
Available-for-sale Securities Including Securities Pledged [Line Items]  
Schedule of Unrealized Loss on Investments
Unrealized capital losses (including noncredit impairments) in fixed maturities, including securities pledged, by market sector for instances in which fair value declined below amortized cost by greater than or less than 20% were as follows as of the dates indicated:
 
Amortized Cost
 
Unrealized Capital Losses
 
Number of Securities
 
< 20%
 
> 20%
 
< 20%
 
> 20%
 
< 20%
 
> 20%
June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasuries
$
67.1

 
$

 
$
0.2

 
$

 
3

 

U.S. government, agencies and authorities
2.5

 

 

*

 
1

 

U.S. corporate, state and municipalities
1,536.9

 

*
45.9

 

*
210

 
1

Foreign
709.4

 

 
23.0

 

 
97

 

Residential mortgage-backed
328.5

 

 
8.8

 

 
133

 

Commercial mortgage-backed
27.9

 

 
0.2

 

 
4

 

Other asset-backed
43.3

 
2.2

 
1.4

 
0.6

 
16

 
2

Total
$
2,715.6

 
$
2.2

 
$
79.5

 
$
0.6

 
464

 
3

* Less than $0.1.
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasuries
$
161.5

 
$

 
$
2.9

 
$

 
4

 

U.S. government, agencies and authorities

 

 

 

 

 

U.S. corporate, state and municipalities
3,869.0

 
22.8

 
233.2

 
5.7

 
519

 
2

Foreign
1,665.8

 
23.1

 
95.0

 
5.0

 
239

 
5

Residential mortgage-backed
596.9

 
6.8

 
21.0

 
1.7

 
162

 
7

Commercial mortgage-backed
78.8

 

 
0.9

 

 
12

 

Other asset-backed
94.2

 
4.4

 
2.2

 
1.2

 
25

 
4

Total
$
6,466.2

 
$
57.1

 
$
355.2

 
$
13.6

 
961

 
18