XML 58 R39.htm IDEA: XBRL DOCUMENT v3.3.1.900
Investments (Tables)
 12 Months Ended
Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]  
Schedule of Unrealized Loss on Investments
An aging of unrealized losses on the Company’s Investments in Fixed Maturities and Equity Securities at December 31, 2015 is presented below.
DOLLARS IN MILLIONS
 
Less Than 12 Months
 
12 Months or Longer
 
Total
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed Maturities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government and Government Agencies and Authorities
 
$
56.6

 
$
(1.6
)
 
$
24.1

 
$
(2.0
)
 
$
80.7

 
$
(3.6
)
States and Political Subdivisions
 
131.0

 
(2.6
)
 
0.9

 
(0.1
)
 
131.9

 
(2.7
)
Corporate Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Bonds and Notes
 
783.8

 
(26.0
)
 
133.6

 
(14.7
)
 
917.4

 
(40.7
)
Collateralized Loan Obligations
 
57.4

 
(2.9
)
 
0.8

 
(0.1
)
 
58.2

 
(3.0
)
Other Mortgage- and Asset-backed
 
—

 
—

 
0.3

 
—

 
0.3

 
—

Total Fixed Maturities
 
1,028.8

 
(33.1
)
 
159.7

 
(16.9
)
 
1,188.5

 
(50.0
)
Equity Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Stocks:
 
 
 
 
 
 
 
 
 
 
 
 
Finance, Insurance and Real Estate
 
2.7

 
—

 
12.3

 
(0.8
)
 
15.0

 
(0.8
)
Other Industries
 
7.3

 
(0.8
)
 
—

 
—

 
7.3

 
(0.8
)
Common Stocks:
 
 
 
 
 
 
 
 
 
 
 
 
Finance, Insurance and Real Estate
 
16.3

 
(1.0
)
 
—

 
—

 
16.3

 
(1.0
)
Other Industries
 
2.8

 
(0.3
)
 
—

 
—

 
2.8

 
(0.3
)
Other Equity Interests:
 
 
 
 
 
 
 
 
 
 
 
 
Exchange Traded Funds
 
135.2

 
(3.7
)
 
—

 
—

 
135.2

 
(3.7
)
Limited Liability Companies and Limited Partnerships
 
2.7

 
(0.5
)
 
—

 
—

 
2.7

 
(0.5
)
Total Equity Securities
 
167.0

 
(6.3
)
 
12.3

 
(0.8
)
 
179.3

 
(7.1
)
Total
 
$
1,195.8

 
$
(39.4
)
 
$
172.0

 
$
(17.7
)
 
$
1,367.8

 
$
(57.1
)
An aging of unrealized losses on the Company’s Investments in Fixed Maturities and Equity Securities at December 31, 2014 is presented below.
DOLLARS IN MILLIONS
 
Less Than 12 Months
 
12 Months or Longer
 
Total
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed Maturities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government and Government Agencies and Authorities
 
$
24.9

 
$
(0.7
)
 
$
55.5

 
$
(1.3
)
 
$
80.4

 
$
(2.0
)
States and Political Subdivisions
 
1.0

 
—

 
126.3

 
(1.8
)
 
127.3

 
(1.8
)
Corporate Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Bonds and Notes
 
250.4

 
(5.1
)
 
360.5

 
(10.0
)
 
610.9

 
(15.1
)
Redeemable Preferred Stocks
 
—

 
—

 
—

 
—

 
—

 
—

Collateralized Loan Obligations
 
51.2

 
(0.7
)
 
3.4

 
(0.1
)
 
54.6

 
(0.8
)
Other Mortgage- and Asset-backed
 
—

 
—

 
0.4

 
—

 
0.4

 
—

Total Fixed Maturities
 
327.5

 
(6.5
)
 
546.1

 
(13.2
)
 
873.6

 
(19.7
)
Equity Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Stocks:
 
 
 
 
 
 
 
 
 
 
 
 
Finance, Insurance and Real Estate
 
7.5

 
(0.1
)
 
12.1

 
(0.9
)
 
19.6

 
(1.0
)
Other Industries
 
—

 
—

 
0.5

 
—

 
0.5

 
—

Common Stocks:
 
 
 
 
 
 
 
 
 
 
 
 
Manufacturing
 
15.1

 
(1.1
)
 
—

 
—

 
15.1

 
(1.1
)
Other Industries
 
4.2

 
(0.4
)
 
1.0

 
—

 
5.2

 
(0.4
)
Other Equity Interests:
 
 
 
 
 
 
 
 
 
 
 
 
Exchange Traded Funds
 
14.9

 
(0.1
)
 
14.4

 
(0.6
)
 
29.3

 
(0.7
)
Limited Liability Companies and Limited Partnerships
 
54.4

 
(1.5
)
 
6.6

 
(0.3
)
 
61.0

 
(1.8
)
Total Equity Securities
 
96.1

 
(3.2
)
 
34.6

 
(1.8
)
 
130.7

 
(5.0
)
Total
 
$
423.6

 
$
(9.7
)
 
$
580.7

 
$
(15.0
)
 
$
1,004.3

 
$
(24.7
)
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, 2015, 2014 and 2013, for which a portion of the OTTI loss related to factors other than credit has been recognized in AOCI, and the corresponding changes in such amounts.
DOLLARS IN MILLIONS
 
2015
 
2014
 
2013
Cumulative Balance of Pre-tax Credit Losses Recognized in Retained Earnings at Beginning of Year
 
$
5.3

 
$
9.9

 
$
4.6

Pre-tax Credit Losses on Fixed Maturities without Pre-tax Credit Losses Included in Cumulative Balance at Beginning of Year
 
0.2

 
2.4

 
1.8

Additional Pre-tax Credit Losses on Fixed Maturities with Pre-tax Credit Losses Included in Cumulative Balance at Beginning of Year
 
—

 
0.6

 
7.3

Reductions for Change in Impairment Status:
 
 
 
 
 
 
From Status of Credit Loss to Status of Intent-to-sell or Required-to-sell
 
(0.4
)
 
(2.4
)
 
(3.2
)
Reductions for Investments Sold During Year
 
—

 
(5.2
)
 
(0.6
)
Balance at End of Year
 
$
5.1

 
$
5.3

 
$
9.9

The components of Net Impairment Losses Recognized in Earnings reported in the Consolidated Statements of Income for the years ended December 31, 2015, 2014 and 2013 were:
DOLLARS IN MILLIONS
 
2015
 
2014
 
2013
Fixed Maturities
 
$
(11.5
)
 
$
(5.7
)
 
$
(10.3
)
Equity Securities
 
(15.7
)
 
(7.1
)
 
(3.6
)
Real Estate
 
—

 
(2.4
)
 
—

Net Impairment Losses Recognized in Earnings
 
$
(27.2
)
 
$
(15.2
)
 
$
(13.9
)
Schedule of Other Investments
The carrying values of the Company’s Other Investments at December 31, 2015 and 2014 were:
DOLLARS IN MILLIONS
 
2015
 
2014
Loans to Policyholders at Unpaid Principal
 
$
288.4

 
$
283.4

Real Estate at Depreciated Cost
 
149.8

 
160.9

Trading Securities at Fair Value
 
4.7

 
4.9

Other
 
0.3

 
0.4

Total
 
$
443.2

 
$
449.6
Investments in Fixed Maturities [Member]  
Schedule of Available-for-sale Securities [Line Items]  
Schedule of Available-for-sale Securities Reconciliation
The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2014 were:
 
 
Amortized
Cost
 
Gross Unrealized
 
Fair Value
DOLLARS IN MILLIONS
 
Gains
 
Losses
 
U.S. Government and Government Agencies and Authorities
 
$
315.2

 
$
32.3

 
$
(2.0
)
 
$
345.5

States and Political Subdivisions
 
1,352.5

 
126.4

 
(1.8
)
 
1,477.1

Corporate Securities:
 
 
 
 
 
 
 
 
Bonds and Notes
 
2,599.3

 
294.3

 
(15.1
)
 
2,878.5

Redeemable Preferred Stocks
 
5.9

 
0.8

 
—

 
6.7

Collateralized Loan Obligations
 
64.9

 
0.3

 
(0.8
)
 
64.4

Other Mortgage- and Asset-backed
 
3.9

 
1.5

 
—

 
5.4

Investments in Fixed Maturities
 
$
4,341.7

 
$
455.6

 
$
(19.7
)
 
$
4,777.6

The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2015 were:
DOLLARS IN MILLIONS
 
Amortized
Cost
 
Gross Unrealized
 
Fair Value
Gains
 
Losses
 
U.S. Government and Government Agencies and Authorities
 
$
298.0

 
$
26.2

 
$
(3.6
)
 
$
320.6

States and Political Subdivisions
 
1,513.7

 
111.6

 
(2.7
)
 
1,622.6

Corporate Securities:
 
 
 
 
 
 
 
 
Bonds and Notes
 
2,651.5

 
202.0

 
(40.7
)
 
2,812.8

Redeemable Preferred Stocks
 
3.7

 
0.1

 
—

 
3.8

Collateralized Loan Obligations
 
90.0

 
0.3

 
(3.0
)
 
87.3

Other Mortgage- and Asset-backed
 
3.8

 
1.4

 
—

 
5.2

Investments in Fixed Maturities
 
$
4,560.7

 
$
341.6

 
$
(50.0
)
 
$
4,852.3
Investments Classified by Contractual Maturity Date
The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2015 by contractual maturity were:
DOLLARS IN MILLIONS
 
Amortized Cost
 
Fair Value
Due in One Year or Less
 
$
52.4

 
$
54.6

Due after One Year to Five Years
 
806.8

 
840.2

Due after Five Years to Ten Years
 
1,475.3

 
1,507.1

Due after Ten Years
 
2,009.5

 
2,227.9

Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date
 
216.7

 
222.5

Investments in Fixed Maturities
 
$
4,560.7

 
$
4,852.3
Investments in Equity Securities [Member]  
Schedule of Available-for-sale Securities [Line Items]  
Schedule of Available-for-sale Securities Reconciliation
Gross unrealized gains and gross unrealized losses on the Company’s Investments in Equity Securities at December 31, 2015 were:
DOLLARS IN MILLIONS
 
Cost
 
Gross Unrealized
 
Fair Value
Gains
 
Losses
 
Preferred Stocks:
 
 
 
 
 
 
 
 
Finance, Insurance and Real Estate
 
$
80.8

 
$
4.9

 
$
(0.8
)
 
$
84.9

Other Industries
 
17.1

 
2.7

 
(0.8
)
 
19.0

Common Stocks:
 
 
 
 
 
 
 
 
Finance, Insurance and Real Estate
 
18.9

 
5.3

 
(1.0
)
 
23.2

Other Industries
 
9.4

 
4.3

 
(0.2
)
 
13.5

Other Equity Interests:
 
 
 
 
 
 
 
 
Exchange Traded Funds
 
179.7

 
1.1

 
(3.7
)
 
177.1

Limited Liability Companies and Limited Partnerships
 
181.0

 
25.0

 
(0.5
)
 
205.5

Investments in Equity Securities
 
$
486.9

 
$
43.3

 
$
(7.0
)
 
$
523.2

Gross unrealized gains and gross unrealized losses on the Company’s Investments in Equity Securities at December 31, 2014 were:
DOLLARS IN MILLIONS
 
 
 
Gross Unrealized
 
 
 
Cost
 
Gains
 
Losses
 
Fair Value
Preferred Stocks:
 
 
 
 
 
 
 
 
Finance, Insurance and Real Estate
 
$
85.5

 
$
5.2

 
$
(1.0
)
 
$
89.7

Other Industries
 
16.3

 
3.5

 
—

 
19.8

Common Stocks:
 
 
 
 
 
 
 
 
Manufacturing
 
43.4

 
14.9

 
(1.1
)
 
57.2

Finance, Insurance and Real Estate
 
34.3

 
6.2

 
—

 
40.5

Other Industries
 
26.5

 
10.0

 
(0.4
)
 
36.1

Other Equity Interests:
 
 
 
 
 
 
 
 
Exchange Traded Funds
 
195.2

 
8.2

 
(0.7
)
 
202.7

Limited Liability Companies and Limited Partnerships
 
160.3

 
27.7

 
(1.8
)
 
186.2

Investments in Equity Securities
 
$
561.5

 
$
75.7

 
$
(5.0
)
 
$
632.2