Investments (Tables)

12 Months Ended

Dec. 31, 2011

Investments

Fixed Maturities and Equity Securities Available-for-Sale (Table)

	Amortized cost		Gross unrealized gains		Gross unrealized losses		Other-than- temporary impairments in AOCI (1)		Fair value
	(in millions)
December 31, 2011
Fixed maturities, available-for-sale:
U.S. government and agencies	$	772.3	$	32.8	$	—	$	—	$	805.1
Non-U.S. governments		917.6		180.5		1.4		—		1,096.7
States and political subdivisions		2,670.0		218.2		5.5		—		2,882.7
Corporate		31,954.1		2,321.3		699.5		19.4		33,556.5
Residential mortgage-backed pass-through securities		3,155.8		187.9		0.7		—		3,343.0
Commercial mortgage-backed securities		3,894.3		117.0		429.4		168.2		3,413.7
Collateralized debt obligations		399.7		1.9		55.8		7.0		338.8
Other debt obligations		3,606.9		100.3		47.0		90.0		3,570.2
Total fixed maturities, available-for-sale	$	47,370.7	$	3,159.9	$	1,239.3	$	284.6	$	49,006.7
Total equity securities, available-for-sale	$	74.9	$	8.7	$	6.5			$	77.1
December 31, 2010
Fixed maturities, available-for-sale:
U.S. government and agencies	$	748.5	$	21.0	$	0.2	$	—	$	769.3
Non-U.S. governments		744.7		127.9		—		—		872.6
States and political subdivisions		2,615.0		64.7		23.3		—		2,656.4
Corporate		32,523.8		1,913.7		527.0		18.0		33,892.5
Residential mortgage-backed pass-through securities		3,077.9		124.2		5.9		—		3,196.2
Commercial mortgage-backed securities		4,424.9		118.0		506.1		194.6		3,842.2
Collateralized debt obligations		380.5		1.7		51.8		37.4		293.0
Other debt obligations		3,184.9		53.7		40.0		84.5		3,114.1
Total fixed maturities, available-for-sale	$	47,700.2	$	2,424.9	$	1,154.3	$	334.5	$	48,636.3
Total equity securities, available-for-sale	$	180.0	$	8.1	$	18.2			$	169.9

(1)

Excludes $28.9 million and $58.6 million as of December 31, 2011 and 2010, respectively, of net unrealized gains on impaired fixed maturities, available-for-sale related to changes in fair value subsequent to the impairment date.

Fixed Maturities Available-for-Sale by Contractual Maturity (Table)

       The amortized cost and fair value of fixed maturities available-for-sale at December 31, 2011, by expected maturity, were as follows:

	Amortized cost		Fair value
	(in millions)
Due in one year or less	$	3,006.4	$	3,044.9
Due after one year through five years		13,045.7		13,476.7
Due after five years through ten years		9,166.0		9,860.2
Due after ten years		11,095.9		11,959.2
Subtotal		36,314.0		38,341.0
Mortgage-backed and other asset-backed securities		11,056.7		10,665.7
Total	$	47,370.7	$	49,006.7

Net Investment Income (Table)

	For the year ended December 31,
	2011			2010			2009
	(in millions)
Fixed maturities, available-for-sale	$	2,596.2		$	2,702.1		$	2,679.3
Fixed maturities, trading		64.7			92.6			37.9
Equity securities, available-for-sale		10.5			11.4			16.8
Equity securities, trading		4.4			2.8			2.5
Mortgage loans		649.2			673.3			688.9
Real estate		74.2			57.5			35.9
Policy loans		58.2			60.9			62.0
Cash and cash equivalents		8.5			7.2			13.0
Derivatives		(196.1	)		(174.4	)		(128.3	)
Other		189.0			152.6			104.3
Total		3,458.8			3,586.0			3,512.3
Investment expenses		(83.0	)		(89.5	)		(111.5	)
Net investment income	$	3,375.8		$	3,496.5		$	3,400.8

Net Realized Capital Gains and Losses (Table)

	For the year ended December 31,
	2011			2010			2009
	(in millions)
Fixed maturities, available-for-sale:
Gross gains	$	26.4		$	63.7		$	123.3
Gross losses		(158.8	)		(339.9	)		(703.9	)
Other-than-temporary impairment losses reclassified to (from) OCI		(49.7	)		56.1			260.9
Hedging, net		130.5			142.2			(229.1	)
Fixed maturities, trading		(6.7	)		17.5			49.3
Equity securities, available-for-sale:
Gross gains		2.2			8.9			27.0
Gross losses		(6.4	)		(3.2	)		(46.5	)
Equity securities, trading		20.3			27.7			39.4
Mortgage loans		(42.1	)		(152.2	)		(153.6	)
Derivatives		(180.5	)		(143.9	)		263.3
Other		142.5			131.6			(28.4	)
Net realized capital losses	$	(122.3	)	$	(191.5	)	$	(398.3	)

Other-Than-Temporary Impairment Losses, Net of Recoveries (Table)

	For the year ended December 31,
	2011			2010			2009
	(in millions)
Fixed maturities, available-for-sale	$	(143.8	)	$	(300.0	)	$	(693.6	)
Equity securities, available-for-sale		(3.8	)		3.7			(20.5	)
Total other-than-temporary impairment losses, net of recoveries from the sale of previously impaired securities		(147.6	)		(296.3	)		(714.1	)
Other-than-temporary impairment losses on fixed maturities, available-for-sale reclassified to (from) OCI (1)		(49.7	)		56.1			260.9
Net impairment losses on available-for-sale securities	$	(197.3	)	$	(240.2	)	$	(453.2	)

(1)

Represents the net impact of (1) gains resulting from reclassification of noncredit impairment losses for fixed maturities with bifurcated OTTI from net realized capital gains (losses) to OCI and (2) losses resulting from reclassification of previously recognized noncredit impairment losses from OCI to net realized capital gains (losses) for fixed maturities with bifurcated OTTI that had additional credit losses or fixed maturities that previously had bifurcated OTTI that have now been sold or are intended to be sold.

Other-Than-Temporary Impairment, Credit Losses Recognized in Earnings (Table)

	For the year ended December 31,
	2011			2010			2009
	(in millions)
Beginning balance	$	(325.7	)	$	(204.7	)	$	(18.5	)
Credit losses for which an other-than-temporary impairment was not previously recognized		(37.8	)		(112.4	)		(168.5	)
Credit losses for which an other-than-temporary impairment was previously recognized		(135.6	)		(109.7	)		(52.7	)
Reduction for credit losses previously recognized on fixed maturities now sold or intended to be sold		68.2			53.2			33.4
Reduction for credit losses previously recognized on fixed maturities reclassified to trading (1)		—			44.4			—
Net reduction (increase) for positive changes in cash flows expected to be collected and amortization (2)		(3.9	)		3.5			1.6
Ending balance	$	(434.8	)	$	(325.7	)	$	(204.7	)

(1)

Fixed maturities previously classified as available-for-sale have been reclassified to trading as a result of electing the fair value option upon adoption of accounting guidance related to the evaluation of credit derivatives embedded in beneficial interests in securitized financial assets.

(2)

Amounts are recognized in net investment income.

Gross Unrealized Losses for Fixed Maturities and Equity Securities (Table)

	December 31, 2011
	Less than twelve months				Greater than or equal to twelve months				Total
	Carrying value		Gross unrealized losses		Carrying value		Gross unrealized losses		Carrying value		Gross unrealized losses
	(in millions)
Non-U.S. governments	$	68.5	$	1.4	$	0.3	$	—	$	68.8	$	1.4
States and political subdivisions		5.7		0.1		51.7		5.4		57.4		5.5
Corporate		3,445.6		140.8		2,403.9		578.1		5,849.5		718.9
Residential mortgage-backed pass-through securities		77.8		0.5		3.7		0.2		81.5		0.7
Commercial mortgage-backed securities		608.4		57.3		858.9		540.3		1,467.3		597.6
Collateralized debt obligations		107.2		2.5		204.4		60.3		311.6		62.8
Other debt obligations		708.1		13.0		508.1		124.0		1,216.2		137.0
Total fixed maturities, available-for-sale	$	5,021.3	$	215.6	$	4,031.0	$	1,308.3	$	9,052.3	$	1,523.9
Total equity securities, available-for-sale	$	14.3	$	3.2	$	15.6	$	3.3	$	29.9	$	6.5

	December 31, 2010
	Less than twelve months				Greater than or equal to twelve months				Total
	Carrying value		Gross unrealized losses		Carrying value		Gross unrealized losses		Carrying value		Gross unrealized losses
	(in millions)
Fixed maturities, available-for-sale:
U.S. government and agencies	$	224.5	$	0.2	$	—	$	—	$	224.5	$	0.2
Non-U.S. governments		7.9		—		—		—		7.9		—
States and political subdivisions		771.0		18.4		44.2		4.9		815.2		23.3
Corporate		2,457.4		69.1		3,948.9		475.9		6,406.3		545.0
Residential mortgage-backed pass-through securities		384.9		5.9		—		—		384.9		5.9
Commercial mortgage-backed securities		340.1		4.9		1,186.4		695.8		1,526.5		700.7
Collateralized debt obligations		10.4		0.5		233.0		88.7		243.4		89.2
Other debt obligations		401.5		8.4		578.4		116.1		979.9		124.5
Total fixed maturities, available-for-sale	$	4,597.7	$	107.4	$	5,990.9	$	1,381.4	$	10,588.6	$	1,488.8
Total equity securities, available-for-sale	$	47.3	$	7.2	$	77.0	$	11.0	$	124.3	$	18.2

Net Unrealized Gains and Losses on Available-for-Sale Securities and Derivative Instruments (Table)

	December 31,
	2011			2010
	(in millions)
Net unrealized gains on fixed maturities, available-for-sale (1)	$	1,920.6		$	1,197.7
Noncredit component of impairment losses on fixed maturities, available-for-sale		(284.6	)		(334.5	)
Net unrealized gains (losses) on equity securities, available-for-sale		2.2			(10.1	)
Adjustments for assumed changes in amortization patterns		(454.2	)		(273.8	)
Adjustments for assumed changes in policyholder liabilities		(442.7	)		(212.4	)
Net unrealized gains on derivative instruments		113.1			53.5
Net unrealized gains on equity method subsidiaries and noncontrolling interest adjustments		150.4			145.2
Provision for deferred income taxes		(327.0	)		(169.0	)
Effects of implementation of accounting change related to variable interest entities, net		—			10.7
Effects of electing fair value option for fixed maturities upon implementation of accounting changes related to embedded credit derivatives, net		—			25.4
Net unrealized gains on available-for-sale securities and derivative instruments	$	677.8		$	432.7

(1)

Excludes net unrealized gains (losses) on fixed maturities, available-for-sale included in fair value hedging relationships.

Mortgage Loans (Table)

	December 31,
	2011			2010
	(in millions)
Commercial mortgage loans	$	9,461.4		$	9,689.6
Residential mortgage loans		1,367.9			1,556.6
Total amortized cost		10,829.3			11,246.2
Valuation allowance		(102.1	)		(121.1	)
Total carrying value	$	10,727.2		$	11,125.1

Commercial Mortgage Loans by Geographic Distribution and Property Type Distribution (Table)

	December 31,
	2011					2010
	Amortized cost		Percent of total			Amortized cost		Percent of total
	($ in millions)
Geographic distribution
New England	$	454.0		4.8	%	$	430.3		4.5	%
Middle Atlantic		1,744.4		18.4			1,648.4		17.0
East North Central		774.8		8.2			841.1		8.7
West North Central		407.8		4.3			466.7		4.8
South Atlantic		2,099.8		22.2			2,358.1		24.3
East South Central		231.8		2.4			231.5		2.4
West South Central		648.6		6.9			548.6		5.7
Mountain		643.2		6.8			691.0		7.1
Pacific		2,446.4		25.9			2,464.5		25.4
International		10.6		0.1			9.4		0.1
Total	$	9,461.4		100.0	%	$	9,689.6		100.0	%
Property type distribution
Office	$	2,753.8		29.1	%	$	2,886.2		29.8	%
Retail		2,580.2		27.3			2,503.0		25.8
Industrial		2,070.7		21.9			2,334.5		24.1
Apartments		1,242.9		13.1			1,138.1		11.7
Hotel		467.7		4.9			471.8		4.9
Mixed use/other		346.1		3.7			356.0		3.7
Total	$	9,461.4		100.0	%	$	9,689.6		100.0	%

Commercial Mortgage Loan Portfolio by Credit Risk (Table)

	December 31, 2011
	Brick and mortar		CTL		Total
	(in millions)
A- and above	$	5,682.5	$	308.6	$	5,991.1
BBB+ thru BBB-		2,112.3		238.8		2,351.1
BB+ thru BB-		403.7		16.4		420.1
B+ and below		693.3		5.8		699.1
Total	$	8,891.8	$	569.6	$	9,461.4

	December 31, 2010
	Brick and mortar		CTL		Total
	(in millions)
A- and above	$	4,781.8	$	324.7	$	5,106.5
BBB+ thru BBB-		2,636.1		249.5		2,885.6
BB+ thru BB-		726.1		38.5		764.6
B+ and below		929.0		3.9		932.9
Total	$	9,073.0	$	616.6	$	9,689.6

Performing and Non-Performing Residential Mortgage Loans (Table)

	December 31, 2011
	Home equity		First liens		Total
	(in millions)
Performing	$	597.8	$	733.7	$	1,331.5
Nonperforming		13.2		23.2		36.4
Total	$	611.0	$	756.9	$	1,367.9

	December 31, 2010
	Home equity		First liens		Total
	(in millions)
Performing	$	705.0	$	811.6	$	1,516.6
Nonperforming		14.3		25.7		40.0
Total	$	719.3	$	837.3	$	1,556.6

Non-Accrual Mortgage Loans (Table)

	December 31, 2011		December 31, 2010
	(in millions)
Commercial:
Brick and mortar	$	46.8	$	67.1
Residential:
Home equity		13.2		14.3
First liens		15.7		15.7
Total	$	75.7	$	97.1

Mortgage Loans Aging (Table)

	December 31, 2011
	30-59 days past due		60-89 days past due		90 days or more past due		Total past due		Current		Total loans		Recorded investment 90 days or more and accruing
	(in millions)
Commercial-brick and mortar	$	61.4	$	4.4	$	22.5	$	88.3	$	8,803.5	$	8,891.8	$	—
Commercial-CTL		—		—		—		—		569.6		569.6		—
Residential-home equity		7.8		2.6		6.2		16.6		594.4		611.0		—
Residential-first liens		15.8		6.0		22.2		44.0		712.9		756.9		7.5
Total	$	85.0	$	13.0	$	50.9	$	148.9	$	10,680.4	$	10,829.3	$	7.5

	December 31, 2010
	30-59 days past due		60-89 days past due		90 days or more past due		Total past due		Current		Total loans		Recorded investment 90 days or more and accruing
	(in millions)
Commercial-brick and mortar	$	—	$	22.5	$	9.1	$	31.6	$	9,041.4	$	9,073.0	$	—
Commercial-CTL		—		—		—		—		616.6		616.6		—
Residential-home equity		9.3		4.5		9.2		23.0		696.3		719.3		—
Residential-first liens		19.1		8.5		23.0		50.6		786.7		837.3		10.0
Total	$	28.4	$	35.5	$	41.3	$	105.2	$	11,141.0	$	11,246.2	$	10.0

Mortgage Loan Valuation Allowance (Table)

	Commercial			Residential			Total
	(in millions)
December 31, 2011
Beginning balance	$	80.6		$	40.5		$	121.1
Provision		17.0			27.2			44.2
Charge-offs		(32.9	)		(33.4	)		(66.3	)
Recoveries		0.1			3.2			3.3
Effect of exchange rates		—			(0.2	)		(0.2	)
Ending balance	$	64.8		$	37.3		$	102.1
Allowance ending balance by basis of impairment method:
Individually evaluated for impairment	$	16.3		$	3.2		$	19.5
Collectively evaluated for impairment		48.5			34.1			82.6
Allowance ending balance	$	64.8		$	37.3		$	102.1
Loan balance by basis of impairment method:
Individually evaluated for impairment	$	114.0		$	27.4		$	141.4
Collectively evaluated for impairment		9,347.4			1,340.5			10,687.9
Loan ending balance	$	9,461.4		$	1,367.9		$	10,829.3
December 31, 2010
Beginning balance	$	132.5		$	30.1		$	162.6
Provision		54.1			98.8			152.9
Charge-offs		(106.0	)		(89.7	)		(195.7	)
Recoveries		—			1.1			1.1
Effect of exchange rates		—			0.2			0.2
Ending balance	$	80.6		$	40.5		$	121.1
Allowance ending balance by basis of impairment method:
Individually evaluated for impairment	$	9.1		$	5.3		$	14.4
Collectively evaluated for impairment		71.5			35.2			106.7
Allowance ending balance	$	80.6		$	40.5		$	121.1
Loan balance by basis of impairment method:
Individually evaluated for impairment	$	29.8		$	21.5		$	51.3
Collectively evaluated for impairment		9,659.8			1,535.1			11,194.9
Loan ending balance	$	9,689.6		$	1,556.6		$	11,246.2
December 31, 2009
Beginning balance	$	57.0		$	12.9		$	69.9
Provision		115.4			33.1			148.5
Charge-offs/recoveries		(39.9	)		(16.1	)		(56.0	)
Effect of exchange rates		—			0.2			0.2
Ending balance	$	132.5		$	30.1		$	162.6

Impaired Mortgage Loans (Table)

	Recorded investment		Unpaid principal balance		Related allowance		Average recorded investment		Interest income recognized
	(in millions)
For the year ended December 31, 2011
With no related allowance recorded:
Commercial-brick and mortar	$	—	$	0.3	$	—	$	11.3	$	0.9
Residential-first liens		4.4		4.2		—		4.4		—
With an allowance recorded:
Commercial-brick and mortar		114.0		114.0		16.3		79.0		1.0
Residential-home equity		14.5		14.2		1.9		12.6		0.8
Residential-first liens		8.5		8.5		1.3		9.6		0.2
Total:
Commercial	$	114.0	$	114.3	$	16.3	$	90.3	$	1.9
Residential	$	27.4	$	26.9	$	3.2	$	26.6	$	1.0
For the year ended December 31, 2010
With no related allowance recorded:
Commercial-brick and mortar	$	22.5	$	28.9	$	—	$	13.4	$	1.1
Residential-first liens		5.3		5.2		—		5.3		—
With an allowance recorded:
Commercial-brick and mortar		29.8		29.7		9.1		77.2		1.8
Residential-home equity		11.5		11.2		2.3		12.2		—
Residential-first liens		10.0		9.9		3.0		16.2		—
Total:
Commercial	$	52.3	$	58.6	$	9.1	$	90.6	$	2.9
Residential	$	26.8	$	26.3	$	5.3	$	33.7	$	—
For the year ended December 31, 2009
Total:
Commercial	$	120.7	$	120.5	$	43.8	$	97.6	$	0.3
Residential	$	13.5	$	18.0	$	7.3	$	15.3	$	—

Mortgage Loans Modified as a Troubled Debt Restructuring (Table)

	For the year ended December 31, 2011
	TDRs				TDRs in payment default
	Number of contracts		Recorded investment		Number of contracts		Recorded investment
	(in millions)
Commercial-brick and mortar		1	$	4.4		1	$	4.4
Residential-home equity		151		7.9		6		—
Residential-first liens		7		1.6		1		0.3
Total		159	$	13.9		8	$	4.7

Minority Interests in Unconsolidated Entities-Balance Sheet (Table)

	December 31,
	2011		2010
	(in millions)
Total assets	$	38,213.8	$	31,130.6
Total liabilities		31,305.9		25,257.0
Total equity	$	6,907.9	$	5,873.6
Net investment in unconsolidated entities	$	928.3	$	804.0

Minority Interests in Unconsolidated Entities-Income Statement (Table)

	For the year ended December 31,
	2011		2010		2009
	(in millions)
Total revenues	$	5,574.6	$	5,326.2	$	4,235.9
Total expenses		4,849.8		4,812.3		4,228.2
Net income		719.3		489.2		312.7
Our share of net income of unconsolidated entities		116.5		99.9		79.0