Income From Investments (Tables)

12 Months Ended

Dec. 31, 2013

Net Investment Income for the years ended December 31, 2013, 2012 and 2011 was:



DOLLARS IN MILLIONS	2013		2012		2011
Investment Income:
Interest and Dividends on Fixed Maturities	$	235.5	$	246.1	$	246.6
Dividends on Equity Securities	38.0		25.7		25.2
Equity Method Limited Liability Investments	26.4		9.3		9.6
Short-term Investments	0.1		0.2		0.1
Real Estate	20.8		27.4		26.0
Loans to Policyholders	19.8		18.9		17.7
Other	—		0.1		0.3
Total Investment Income	340.6		327.7		325.5
Investment Expenses:
Real Estate	18.3		26.1		25.9
Other Investment Expenses	7.6		5.7		1.6
Total Investment Expenses	25.9		31.8		27.5
Net Investment Income	$	314.7	$	295.9	$	298.0

Realized Gain (Loss) on Investments

The components of Net Realized Gains on Sales of Investments for the years ended December 31, 2013, 2012 and 2011 were:



DOLLARS IN MILLIONS	2013			2012			2011
Fixed Maturities:
Gains on Sales	$	30.9		$	56.9		$	14.2
Losses on Sales	(0.4		)	(0.1		)	(0.1		)
Equity Securities:
Gains on Sales	21.8			8.3			34.0
Losses on Sales	(0.5		)	(0.2		)	(13.5		)
Equity Method Limited Liability Investments:
Gains on Sales	2.5			—			—
Real Estate:
Gains on Sales	44.2			0.2			0.1
Other Investments:
Gains on Sales	0.1			—			—
Losses on Sales	(0.1		)	—			(0.1		)
Net Gains (Losses) on Trading Securities	0.6			0.3			(0.9		)
Net Realized Gains on Sales of Investments	$	99.1		$	65.4		$	33.7

Gross Gains on Sales	$	99.5		$	65.4		$	48.3
Gross Losses on Sales	(1.0		)	(0.3		)	(13.7		)
Net Gains (Losses) on Trading Securities	0.6			0.3			(0.9		)
Net Realized Gains on Sales of Investments	$	99.1		$	65.4		$	33.7

Other than Temporary Impairment, Credit Losses Recognized in Earnings

The following table sets forth the pre-tax amount of OTTI credit losses, recognized in Retained Earnings for Investments in Fixed Maturities held by the Company as of December 31, 2013, 2012 and 2011, for which a portion of the OTTI loss has been recognized in Accumulated Other Comprehensive Income, and the corresponding changes in such amounts.



DOLLARS IN MILLIONS	2013			2012			2011
Balance at Beginning of Year	$	4.6		$	3.9		$	2.4
Additions for Previously Unrecognized OTTI Credit Losses	1.8			1.1			2.2
Increases to Previously Recognized OTTI Credit Losses	7.3			—			—
Reductions to Previously Recognized OTTI Credit Losses	—			(0.1		)	(0.7		)
Reductions for Change in Impairment Status:
From Status of Credit Loss to Status of Intent-to-sell or Required-to-sell	(3.2		)	—			—
Reductions for Investments Sold During Period	(0.6		)	(0.3		)	—
Balance at End of Year	$	9.9		$	4.6		$	3.9

The components of Net Impairment Losses Recognized in Earnings reported in the Consolidated Statements of Income for the years ended December 31, 2013, 2012 and 2011 were:



DOLLARS IN MILLIONS	2013			2012			2011
Fixed Maturities	$	(10.3	)	$	(1.9	)	$	(2.2	)
Equity Securities	(3.6		)	(1.9		)	(1.9		)
Real Estate	—			(3.1		)	(7.2		)
Net Impairment Losses Recognized in Earnings	$	(13.9	)	$	(6.9	)	$	(11.3	)

- Definition

Tabular disclosure of investment income, including, but not limited to, interest and dividend income and amortization of discount (premium) derived from debt and equity securities. Excludes realized and unrealized gain (loss) on investments.

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- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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