Investments (Tables)

6 Months Ended

Jun. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation

At June 30, 2016 and December 31, 2015, all fixed maturity securities were classified as available-for-sale. The amortized cost and fair values of securities by security type are shown as follows:

	June 30, 2016
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
	(in millions of dollars)
United States Government and Government Agencies and Authorities	$	1,265.5	$	273.3	$	—	$	1,538.8
States, Municipalities, and Political Subdivisions	1,806.3		484.6		0.1		2,290.8
Foreign Governments	805.2		205.9		—		1,011.1
Public Utilities	6,931.5		1,477.1		2.1		8,406.5
Mortgage/Asset-Backed Securities	2,261.1		214.4		0.3		2,475.2
All Other Corporate Bonds	26,448.9		3,806.2		162.6		30,092.5
Redeemable Preferred Stocks	44.0		3.6		0.5		47.1
Total Fixed Maturity Securities	$	39,562.5	$	6,465.1	$	165.6	$	45,862.0

	December 31, 2015
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
	(in millions of dollars)
United States Government and Government Agencies and Authorities	$	1,265.8	$	207.3	$	7.9	$	1,465.2
States, Municipalities, and Political Subdivisions	1,828.3		293.4		4.6		2,117.1
Foreign Governments	897.2		154.4		—		1,051.6
Public Utilities	6,979.3		1,057.4		16.3		8,020.4
Mortgage/Asset-Backed Securities	2,318.6		167.6		4.7		2,481.5
All Other Corporate Bonds	26,325.5		2,454.1		608.2		28,171.4
Redeemable Preferred Stocks	44.0		3.8		0.6		47.2
Total Fixed Maturity Securities	$	39,658.7	$	4,338.0	$	642.3	$	43,354.4

Length of Time Fixed Maturity Securities had been in a Gross Unrealized Loss Position

The following charts indicate the length of time our fixed maturity securities have been in a gross unrealized loss position.

	June 30, 2016
	Less Than 12 Months				12 Months or Greater
	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
	(in millions of dollars)
States, Municipalities, and Political Subdivisions	$	4.7	$	—	$	2.6	$	0.1
Public Utilities	35.6		1.2		44.9		0.9
Mortgage/Asset-Backed Securities	20.8		0.3		0.9		—
All Other Corporate Bonds	802.7		38.1		1,325.8		124.5
Redeemable Preferred Stocks	12.7		0.3		10.8		0.2
Total Fixed Maturity Securities	$	876.5	$	39.9	$	1,385.0	$	125.7

	December 31, 2015
	Less Than 12 Months				12 Months or Greater
	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
	(in millions of dollars)
United States Government and Government Agencies and Authorities	$	213.5	$	7.9	$	—	$	—
States, Municipalities, and Political Subdivisions	112.3		4.3		3.3		0.3
Public Utilities	408.4		14.4		10.3		1.9
Mortgage/Asset-Backed Securities	504.3		4.6		9.0		0.1
All Other Corporate Bonds	6,155.0		464.2		554.7		144.0
Redeemable Preferred Stocks	10.4		0.6		—		—
Total Fixed Maturity Securities	$	7,403.9	$	496.0	$	577.3	$	146.3

Distribution of the Maturity Dates for Fixed Maturity Securities

The following is a distribution of the maturity dates for fixed maturity securities. The maturity dates have not been adjusted for possible calls or prepayments.

	June 30, 2016
	Total Amortized Cost		Unrealized Gain Position				Unrealized Loss Position
			Gross Gain		Fair Value		Gross Loss		Fair Value
	(in millions of dollars)
1 year or less	$	1,338.2	$	27.0	$	1,282.1	$	0.3	$	82.8
Over 1 year through 5 years	6,321.2		644.5		6,614.9		27.2		323.6
Over 5 years through 10 years	10,941.7		1,169.6		10,747.3		86.7		1,277.3
Over 10 years	18,700.3		4,409.6		22,502.7		51.1		556.1
	37,301.4		6,250.7		41,147.0		165.3		2,239.8
Mortgage/Asset-Backed Securities	2,261.1		214.4		2,453.5		0.3		21.7
Total Fixed Maturity Securities	$	39,562.5	$	6,465.1	$	43,600.5	$	165.6	$	2,261.5

	December 31, 2015
	Total Amortized Cost		Unrealized Gain Position				Unrealized Loss Position
			Gross Gain		Fair Value		Gross Loss		Fair Value
	(in millions of dollars)
1 year or less	$	1,112.2	$	20.6	$	1,098.8	$	0.2	$	33.8
Over 1 year through 5 years	6,514.0		554.4		6,649.5		49.8		369.1
Over 5 years through 10 years	10,519.3		746.3		7,124.4		320.5		3,820.7
Over 10 years	19,194.6		2,849.1		18,532.3		267.1		3,244.3
	37,340.1		4,170.4		33,405.0		637.6		7,467.9
Mortgage/Asset-Backed Securities	2,318.6		167.6		1,968.2		4.7		513.3
Total Fixed Maturity Securities	$	39,658.7	$	4,338.0	$	35,373.2	$	642.3	$	7,981.2

Low Income Housing Tax Credits

The Company invests in tax credit partnerships primarily for the receipt of income tax credits and tax benefits derived from passive losses on the investments. Amounts recognized in the consolidated statements of income are as follows:

	Three Months Ended June 30						Six Months Ended June 30
	2016			2015			2016			2015
	(in millions of dollars)
Income Tax Credits	$	10.4		$	10.5		$	20.9		$	21.0
Amortization, net of tax	(5.8		)	(5.8		)	(11.6		)	(11.6		)
Income Tax Benefit	$	4.6		$	4.7		$	9.3		$	9.4

Mortgage Loans by Property Type and Geographic Region

Mortgage loans by property type and geographic region are presented below.

	June 30, 2016				December 31, 2015
	(in millions of dollars)
	Carrying		Percent of		Carrying		Percent of
	Amount		Total		Amount		Total
Property Type
Apartment	$	200.7	10.4	%	$	130.6	6.9	%
Industrial	580.9		29.9		574.1		30.5
Office	732.1		37.7		764.7		40.6
Retail	406.0		20.9		392.3		20.8
Other	21.6		1.1		21.9		1.2
Total	$	1,941.3	100.0	%	$	1,883.6	100.0	%

Region
New England	$	77.4	4.0	%	$	97.6	5.2	%
Mid-Atlantic	126.5		6.5		128.8		6.9
East North Central	205.6		10.6		186.4		9.9
West North Central	167.5		8.6		162.6		8.6
South Atlantic	406.1		20.9		409.3		21.7
East South Central	98.6		5.1		79.1		4.2
West South Central	236.1		12.2		237.6		12.6
Mountain	210.9		10.9		196.5		10.4
Pacific	412.6		21.2		385.7		20.5
Total	$	1,941.3	100.0	%	$	1,883.6	100.0	%

Mortgage Loans by Internal Credit Ratings and Loan-to-Value Ratios

Mortgage loans, sorted by the applicable credit quality indicators, are as follows:

	June 30 2016		December 31 2015
	(in millions of dollars)
Internal Rating
Aa	$	0.9	$	1.1
A	564.9		586.6
Baa	1,360.2		1,285.8
Ba	15.3		10.1
Total	$	1,941.3	$	1,883.6

Loan-to-Value Ratio
<= 65%	$	951.1	$	937.2
> 65% <= 75%	896.0		842.5
> 75% <= 85%	79.6		88.4
> 85%	14.6		15.5
Total	$	1,941.3	$	1,883.6

Remaining Contractual Maturity of Securities Lending Agreements

The remaining contractual maturities of our securities lending agreements disaggregated by class of collateral pledged are as follows:

	June 30, 2016		December 31, 2015
	Overnight and Continuous
	(in millions of dollars)
United States Government and Government Agencies and Authorities	$	2.9	$	1.2
Public Utilities	6.8		4.0
All Other Corporate Bonds	64.1		23.8
Total Borrowings	73.8		29.0
Gross Amount of Recognized Liability for Securities Lending Transactions	73.8		29.0
Amounts Related to Agreements Not Included in Offsetting Disclosure Contained Herein	$	—	$	—

Schedule of Financial Instrument and Derivative Offsetting

Shown below are our financial instruments that either meet the accounting requirements that allow them to be offset in our balance sheets or that are subject to an enforceable master netting arrangement or similar agreement. Our accounting policy is to not offset these financial instruments in our balance sheets. Net amounts disclosed below have been reduced by the amount of collateral pledged to or received from our counterparties.

	June 30, 2016
	Gross Amount						Gross Amount Not
	of Recognized		Gross Amount		Net Amount		Offset in Balance Sheet
	Financial		Offset in		Presented in		Financial			Cash			Net
	Instruments		Balance Sheet		Balance Sheet		Instruments			Collateral			Amount
	(in millions of dollars)
Financial Assets:
Derivatives	$	40.4	$	—	$	40.4	$	(15.0	)	$	(25.4	)	$	—
Securities Lending	223.9		—		223.9		(150.1		)	(73.8		)	—
Total	$	264.3	$	—	$	264.3	$	(165.1	)	$	(99.2	)	$	—
Financial Liabilities:
Derivatives	$	57.0	$	—	$	57.0	$	(40.8	)	$	—		$	16.2
Securities Lending	73.8		—		73.8		(73.8		)	—			—
Total	$	130.8	$	—	$	130.8	$	(114.6	)	$	—		$	16.2

	December 31, 2015
	Gross Amount						Gross Amount Not
	of Recognized		Gross Amount		Net Amount		Offset in Balance Sheet
	Financial		Offset in		Presented in		Financial			Cash			Net
	Instruments		Balance Sheet		Balance Sheet		Instruments			Collateral			Amount
	(in millions of dollars)
Financial Assets:
Derivatives	$	49.8	$	—	$	49.8	$	(12.8	)	$	(36.4	)	$	0.6
Securities Lending	181.6		—		181.6		(152.6		)	(29.0		)	—
Total	$	231.4	$	—	$	231.4	$	(165.4	)	$	(65.4	)	$	0.6
Financial Liabilities:
Derivatives	$	50.2	$	—	$	50.2	$	(35.6	)	$	—		$	14.6
Securities Lending	29.0		—		29.0		(29.0		)	—			—
Total	$	79.2	$	—	$	79.2	$	(64.6	)	$	—		$	14.6

Net Investment Income

Net Investment Income

Net investment income reported in our consolidated statements of income is as follows:

	Three Months Ended June 30				Six Months Ended June 30
	2016		2015		2016		2015
	(in millions of dollars)
Fixed Maturity Securities	$	579.6	$	592.9	$	1,143.4	$	1,159.1
Derivatives	12.4		11.5		24.3		22.4
Mortgage Loans	30.1		27.4		57.0		55.7
Policy Loans	4.3		4.2		8.4		8.2
Other Long-term Investments	6.3		4.9		16.3		8.8
Short-term Investments	2.1		0.8		3.6		1.7
Gross Investment Income	634.8		641.7		1,253.0		1,255.9
Less Investment Expenses	7.9		7.3		16.1		15.8
Less Investment Income on Participation Fund Account Assets	3.6		3.7		7.2		7.4
Net Investment Income	$	623.3	$	630.7	$	1,229.7	$	1,232.7

Realized Investment Gains and Losses Reported in Consolidated Statements of Income

Realized Investment Gain and Loss

Realized investment gains and losses are as follows:

	Three Months Ended June 30						Six Months Ended June 30
	2016			2015			2016			2015
	(in millions of dollars)
Fixed Maturity Securities
Gross Gains on Sales	$	10.9		$	4.9		$	27.8		$	7.4
Gross Losses on Sales	(4.0		)	(1.9		)	(13.6		)	(7.6		)
Other-Than-Temporary Impairment Loss	(9.4		)	(8.1		)	(30.5		)	(12.6		)
Mortgage Loans and Other Invested Assets
Gross Gains on Sales	2.0			7.8			3.8			8.9
Gross Losses on Sales	(0.4		)	—			(0.7		)	—
Impairment Loss	(3.1		)	(1.0		)	(3.1		)	(3.7		)
Embedded Derivative in Modified Coinsurance Arrangement	10.2			(2.0		)	4.6			(5.9		)
All Other Derivatives	(1.1		)	0.8			(3.6		)	(0.3		)
Foreign Currency Transactions	0.2			0.3			0.1			(0.7		)
Net Realized Investment Gain (Loss)	$	5.3		$	0.8		$	(15.2	)	$	(14.5	)