Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2020

Stockholders' Equity

Common Stock Dividends (Table)

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2020		2019		2020		2019
Dividends declared per common share	$	0.56	$	0.55	$	1.68	$	1.63

Reconciliation of Outstanding Common Shares (Table)

	For the three months ended		For the nine months ended
	September 30,		September 30,
	2020	2019	2020	2019
	(in millions)
Beginning balance	274.0	278.6	276.6	279.5
Shares issued	0.6	0.2	2.4	2.4
Treasury stock acquired	(0.1)	(0.8)	(4.5)	(3.9)
Ending balance	274.5	278.0	274.5	278.0

Other Comprehensive Income (Loss) (Table)

	For the three months ended						For the nine months ended
	September 30, 2020						September 30, 2020
	Pre-Tax		Tax		After-Tax		Pre-Tax		Tax		After-Tax
	(in millions)
Net unrealized gains on available-for-sale securities during the period	$	960.1	$	(200.0)	$	760.1	$	2,378.1	$	(500.1)	$	1,878.0
Reclassification adjustment for (gains) losses included in net income (1)		2.9		(1.0)		1.9		(54.5)		12.6		(41.9)
Adjustments for assumed changes in amortization patterns		(109.0)		22.9		(86.1)		(112.9)		23.7		(89.2)
Adjustments for assumed changes in policyholder liabilities		(565.7)		116.5		(449.2)		(1,136.0)		241.9		(894.1)
Net unrealized gains on available-for-sale securities		288.3		(61.6)		226.7		1,074.7		(221.9)		852.8
Net unrealized gains ( losses) on derivative instruments during the period		(29.2)		6.2		(23.0)		26.2		(4.9)		21.3
Reclassification adjustment for gains included in net income (3)		(4.6)		0.9		(3.7)		(22.8)		4.2		(18.6)
Adjustments for assumed changes in amortization patterns		0.2		—		0.2		0.9		(0.2)		0.7
Adjustments for assumed changes in policyholder liabilities		1.7		(0.3)		1.4		4.6		(0.9)		3.7
Net unrealized gains (losses) on derivative instruments		(31.9)		6.8		(25.1)		8.9		(1.8)		7.1
Foreign currency translation adjustment during the period		75.5		5.5		81.0		(231.1)		2.7		(228.4)
Reclassification adjustment for losses included in net income (4)		11.5		1.8		13.3		43.0		1.8		44.8
Foreign currency translation adjustment		87.0		7.3		94.3		(188.1)		4.5		(183.6)
Unrecognized postretirement benefit obligation during the period		—		—		—		0.6		(0.2)		0.4
Amortization of amounts included in net periodic benefit cost (5)		14.3		(3.8)		10.5		43.1		(11.6)		31.5
Net unrecognized postretirement benefit obligation		14.3		(3.8)		10.5		43.7		(11.8)		31.9
Other comprehensive income	$	357.7	$	(51.3)	$	306.4	$	939.2	$	(231.0)	$	708.2

	For the three months ended						For the nine months ended
	September 30, 2019						September 30, 2019
	Pre-Tax		Tax		After-Tax		Pre-Tax		Tax		After-Tax
	(in millions)
Net unrealized gains on available-for-sale securities during the period	$	1,391.9	$	(301.5)	$	1,090.4	$	5,012.9	$	(1,088.9)	$	3,924.0
Reclassification adjustment for losses included in net income (1)		3.1		(0.4)		2.7		39.7		(7.6)		32.1
Adjustments for assumed changes in amortization patterns		(60.9)		12.7		(48.2)		(300.6)		63.1		(237.5)
Adjustments for assumed changes in policyholder liabilities		(342.3)		84.5		(257.8)		(1,104.9)		262.6		(842.3)
Net unrealized gains on available-for-sale securities		991.8		(204.7)		787.1		3,647.1		(770.8)		2,876.3
Noncredit component of impairment losses on fixed maturities, available-for-sale during the period		6.4		(1.4)		5.0		3.9		(0.8)		3.1
Adjustments for assumed changes in amortization patterns		(0.8)		0.2		(0.6)		(2.0)		0.4		(1.6)
Adjustments for assumed changes in policyholder liabilities		(0.2)		0.1		(0.1)		(0.1)		0.1		—
Noncredit component of impairment losses on fixed maturities, available-for-sale (2)		5.4		(1.1)		4.3		1.8		(0.3)		1.5
Net unrealized gains on derivative instruments during the period		19.9		(4.3)		15.6		24.2		(5.2)		19.0
Reclassification adjustment for gains included in net income (3)		(4.9)		1.1		(3.8)		(19.7)		3.9		(15.8)
Adjustments for assumed changes in amortization patterns		(0.1)		—		(0.1)		2.4		(0.5)		1.9
Adjustments for assumed changes in policyholder liabilities		1.2		(0.2)		1.0		6.0		(1.3)		4.7
Net unrealized gains on derivative instruments		16.1		(3.4)		12.7		12.9		(3.1)		9.8
Foreign currency translation adjustment during the period		(163.0)		5.2		(157.8)		(117.5)		0.4		(117.1)
Reclassification adjustment for losses included in net income (4)		—		—		—		26.1		—		26.1
Foreign currency translation adjustment		(163.0)		5.2		(157.8)		(91.4)		0.4		(91.0)
Unrecognized postretirement benefit obligation during the period		—		—		—		63.4		(17.1)		46.3
Amortization of amounts included in net periodic benefit cost (5)		13.6		(3.6)		10.0		44.2		(11.8)		32.4
Net unrecognized postretirement benefit obligation		13.6		(3.6)		10.0		107.6		(28.9)		78.7
Other comprehensive income	$	863.9	$	(207.6)	$	656.3	$	3,678.0	$	(802.7)	$	2,875.3

(1) Pre-tax reclassification adjustments relating to available-for-sale securities are reported in net realized capital gains (losses) on the consolidated statements of operations.

(2) Prior to 2020, represents the net impact of (1) unrealized gains 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 and (2) unrealized losses resulting from reclassification of noncredit impairment losses for fixed maturities with bifurcated OTTI from net realized capital gains (losses) to OCI.

(3) See Note 4, Derivative Financial Instruments, under the caption “Effect of Fair Value and Cash Flow Hedges on Consolidated Statements of Operations” for further details.

(4) The 2020 pre-tax reclassification adjustment primarily related to the release of the cumulative translation adjustment from the dissolution of a foreign subsidiary and the net impact of deconsolidated sponsored investment funds and associated net investment hedges. The 2019 pre-tax reclassification adjustment primarily related to deconsolidated sponsored investment funds. The adjustments were reported in net realized capital gains (losses) on the consolidated statements of operations. For both the three and nine months ended September 30, 2020, and for the nine months ended September 30, 2019, $8.7 million and $5.7 million, respectively, of this reclassification relates to noncontrolling interest and is reported in net income attributable to noncontrolling interest on the consolidated statements of operations.

(5) Amount is comprised of amortization of prior service cost (benefit) and recognized net actuarial (gain) loss, which is reported in operating expenses on the consolidated statements of operations. See Note 8, Employee and Agent Benefits, under the caption “Components of Net Periodic Benefit Cost” for further details.

Accumulated Other Comprehensive Income (Loss) (Table)

			Noncredit
	Net unrealized		component of		Net unrealized		Foreign		Unrecognized		Accumulated
	gains on		impairment losses		gains		currency		postretirement		other
	available-for-sale		on fixed maturities		on derivative		translation		benefit		comprehensive
	securities(1)		available-for-sale(2)		instruments		adjustment		obligation		income
	(in millions)
Balances as of July 1, 2019	$	2,279.1	$	(49.9)	$	61.5	$	(1,198.8)	$	(444.2)	$	647.7
Other comprehensive income during the period, net of adjustments		784.5		—		16.5		(154.8)		—		646.2
Amounts reclassified from AOCI		2.7		4.3		(3.8)		—		10.0		13.2
Other comprehensive income		787.2		4.3		12.7		(154.8)		10.0		659.4
Balances as of September 30, 2019	$	3,066.3	$	(45.6)	$	74.2	$	(1,353.6)	$	(434.2)	$	1,307.1
Balances as of July 1, 2020	$	3,388.2	$	—	$	85.6	$	(1,608.9)	$	(414.2)	$	1,450.7
Other comprehensive income during the period, net of adjustments		224.7		—		(21.4)		79.8		—		283.1
Amounts reclassified from AOCI		1.9		—		(3.7)		4.6		10.5		13.3
Other comprehensive income		226.6		—		(25.1)		84.4		10.5		296.4
Balances as of September 30, 2020	$	3,614.8	$	—	$	60.5	$	(1,524.5)	$	(403.7)	$	1,747.1

			Noncredit
	Net unrealized		component of		Net unrealized		Foreign		Unrecognized		Accumulated
	gains on		impairment losses		gains		currency		postretirement		other
	available-for-sale		on fixed maturities		on derivative		translation		benefit		comprehensive
	securities (1)		available-for-sale (2)		instruments		adjustment		obligation		income (loss)
	(in millions)
Balances as of January 1, 2019	$	190.0	$	(47.1)	$	64.4	$	(1,259.5)	$	(512.9)	$	(1,565.1)
Other comprehensive income during the period, net of adjustments		2,844.2		—		25.6		(114.5)		46.3		2,801.6
Amounts reclassified from AOCI		32.1		1.5		(15.8)		20.4		32.4		70.6
Other comprehensive income		2,876.3		1.5		9.8		(94.1)		78.7		2,872.2
Balances as of September 30, 2019	$	3,066.3	$	(45.6)	$	74.2	$	(1,353.6)	$	(434.2)	$	1,307.1
Balances as of January 1, 2020	$	2,806.0	$	(44.1)	$	53.4	$	(1,341.8)	$	(435.6)	$	1,037.9
Other comprehensive income during the period, net of adjustments		894.8		—		25.7		(218.8)		0.4		702.1
Amounts reclassified from AOCI		(41.9)		—		(18.6)		36.1		31.5		7.1
Other comprehensive income		852.9		—		7.1		(182.7)		31.9		709.2
Effects of implementation of accounting change related to credit losses, net		(44.1)		44.1		—		—		—		—
Balances as of September 30, 2020	$	3,614.8	$	—	$	60.5	$	(1,524.5)	$	(403.7)	$	1,747.1

(1) Net unrealized losses on available-for-sale debt securities for which an allowance for credit loss has been recorded were $4.0 million as of September 30, 2020.

(2) Prior to the implementation of authoritative guidance in 2020, the noncredit component of impairment losses on fixed maturities, available-for-sale was included as a separate component of stockholders' equity.

Redeemable Noncontrolling Interest (Table)

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2020		2019		2020		2019
	(in millions)
Balance at beginning of period	$	272.7	$	304.5	$	264.9	$	391.2
Net income (loss) attributable to redeemable noncontrolling interest		(1.5)		2.6		(9.5)		26.9
Redeemable noncontrolling interest of deconsolidated entities (1)		(47.3)		—		(47.3)		(370.0)
Contributions from redeemable noncontrolling interest		49.7		75.7		124.3		373.4
Distributions to redeemable noncontrolling interest		(6.0)		(10.6)		(53.8)		(56.7)
Purchase of subsidiary shares from redeemable noncontrolling interest		—		(1.1)		—		(1.1)
Change in redemption value of redeemable noncontrolling interest		1.7		(0.4)		(0.2)		1.3
Stock-based compensation attributable to redeemable noncontrolling interest		0.1		—		0.1		0.1
Other comprehensive income (loss) attributable to redeemable noncontrolling interest		9.1		(1.4)		—		4.2
Balance at end of period	$	278.5	$	369.3	$	278.5	$	369.3

(1) We deconsolidated certain sponsored investment funds as they no longer met the requirements for consolidation.