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Investments (Tables)
 6 Months Ended
Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
Amortized Cost and Fair Values of Securities by Security Type
At June 30, 2017 and December 31, 2016, 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, 2017
 
Amortized
Cost
 
Gross
Unrealized
Gain
 
Gross
Unrealized
Loss
 
Fair
Value
 
(in millions of dollars)
United States Government and Government Agencies and Authorities
$
1,246.7

 
$
192.0

 
$
2.7

 
$
1,436.0

States, Municipalities, and Political Subdivisions
1,906.0

 
348.2

 
1.8

 
2,252.4

Foreign Governments
740.4

 
193.6

 
—

 
934.0

Public Utilities
6,976.4

 
1,245.3

 
9.3

 
8,212.4

Mortgage/Asset-Backed Securities
1,984.9

 
123.8

 
6.2

 
2,102.5

All Other Corporate Bonds
26,733.0

 
3,505.9

 
99.7

 
30,139.2

Redeemable Preferred Stocks
39.0

 
3.1

 
—

 
42.1

Total Fixed Maturity Securities
$
39,626.4

 
$
5,611.9

 
$
119.7

 
$
45,118.6

 
December 31, 2016
 
Amortized
Cost
 
Gross
Unrealized
Gain
 
Gross
Unrealized
Loss
 
Fair
Value
 
(in millions of dollars)
United States Government and Government Agencies and Authorities
$
1,202.8

 
$
183.1

 
$
3.5

 
$
1,382.4

States, Municipalities, and Political Subdivisions
1,868.0

 
294.8

 
4.8

 
2,158.0

Foreign Governments
714.8

 
199.9

 
—

 
914.7

Public Utilities
6,916.1

 
1,123.5

 
16.9

 
8,022.7

Mortgage/Asset-Backed Securities
2,104.9

 
134.7

 
9.2

 
2,230.4

All Other Corporate Bonds
26,707.1

 
2,944.0

 
183.9

 
29,467.2

Redeemable Preferred Stocks
39.0

 
3.2

 
0.3

 
41.9

Total Fixed Maturity Securities
$
39,552.7

 
$
4,883.2

 
$
218.6

 
$
44,217.3
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, 2017
 
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
$
133.7

 
$
2.7

 
$
—

 
$
—

States, Municipalities, and Political Subdivisions
91.6

 
1.8

 
—

 
—

Public Utilities
219.3

 
5.8

 
32.8

 
3.5

Mortgage/Asset-Backed Securities
449.2

 
6.0

 
9.9

 
0.2

All Other Corporate Bonds
1,494.7

 
33.6

 
631.6

 
66.1

Total Fixed Maturity Securities
$
2,388.5

 
$
49.9

 
$
674.3

 
$
69.8

 
December 31, 2016
 
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
$
132.8

 
$
3.5

 
$
—

 
$
—

States, Municipalities, and Political Subdivisions
132.2

 
4.8

 
—

 
—

Public Utilities
260.2

 
15.3

 
15.6

 
1.6

Mortgage/Asset-Backed Securities
513.2

 
9.1

 
0.8

 
0.1

All Other Corporate Bonds
3,621.0

 
122.1

 
774.7

 
61.8

Redeemable Preferred Stocks
7.9

 
0.1

 
10.8

 
0.2

Total Fixed Maturity Securities
$
4,667.3

 
$
154.9

 
$
801.9

 
$
63.7
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, 2017
 
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
$
1,715.2

 
$
41.8

 
$
1,753.1

 
$
—

 
$
3.9

Over 1 year through 5 years
5,495.1

 
509.5

 
5,854.9

 
5.8

 
143.9

Over 5 years through 10 years
11,484.5

 
1,080.1

 
11,339.0

 
51.7

 
1,173.9

Over 10 years
18,946.7

 
3,856.7

 
21,465.4

 
56.0

 
1,282.0

 
37,641.5

 
5,488.1

 
40,412.4

 
113.5

 
2,603.7

Mortgage/Asset-Backed Securities
1,984.9

 
123.8

 
1,643.4

 
6.2

 
459.1

Total Fixed Maturity Securities
$
39,626.4

 
$
5,611.9

 
$
42,055.8

 
$
119.7

 
$
3,062.8

 
December 31, 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
$
1,338.8

 
$
28.6

 
$
1,355.6

 
$
—

 
$
11.8

Over 1 year through 5 years
6,231.0

 
553.5

 
6,605.6

 
8.2

 
170.7

Over 5 years through 10 years
10,991.6

 
843.8

 
9,336.2

 
82.8

 
2,416.4

Over 10 years
18,886.4

 
3,322.6

 
19,734.3

 
118.4

 
2,356.3

 
37,447.8

 
4,748.5

 
37,031.7

 
209.4

 
4,955.2

Mortgage/Asset-Backed Securities
2,104.9

 
134.7

 
1,716.4

 
9.2

 
514.0

Total Fixed Maturity Securities
$
39,552.7

 
$
4,883.2

 
$
38,748.1

 
$
218.6

 
$
5,469.2
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
 
2017
 
2016
 
2017
 
2016
 
(in millions of dollars)
Income Tax Credits
$
10.5

 
$
10.4

 
$
20.9

 
$
20.9

Amortization, net of tax
(5.8
)
 
(5.8
)
 
(11.6
)
 
(11.6
)
Income Tax Benefit
$
4.7

 
$
4.6

 
$
9.3

 
$
9.3
Mortgage Loans by Property Type and Geographic Region
Mortgage loans by property type and geographic region are presented below.
 
June 30, 2017
 
December 31, 2016
 
(in millions of dollars)
 
Carrying
 
Percent of
 
Carrying
 
Percent of
 
Amount
 
Total
 
Amount
 
Total
Property Type
 
 
 
 
 
 
 
     Apartment
$
309.0

 
14.8
%
 
$
288.4

 
14.1
%
     Industrial
569.5

 
27.3

 
573.6

 
28.1

     Office
702.5

 
33.8

 
700.1

 
34.4

     Retail
467.7

 
22.5

 
455.4

 
22.4

     Other
32.5

 
1.6

 
21.4

 
1.0

Total
$
2,081.2

 
100.0
%
 
$
2,038.9

 
100.0
%

Region
 
 
 
 
 
 
 
     New England
$
70.8

 
3.4
%
 
$
72.7

 
3.6
%
     Mid-Atlantic
127.6

 
6.1

 
125.3

 
6.1

     East North Central
249.4

 
12.0

 
230.1

 
11.3

     West North Central
188.9

 
9.1

 
172.0

 
8.4

     South Atlantic
435.7

 
20.9

 
438.3

 
21.5

     East South Central
90.2

 
4.3

 
91.6

 
4.5

     West South Central
260.3

 
12.5

 
268.7

 
13.2

     Mountain
229.8

 
11.1

 
214.1

 
10.5

     Pacific
428.5

 
20.6

 
426.1

 
20.9

Total
$
2,081.2

 
100.0
%
 
$
2,038.9

 
100.0
%
Mortgage Loans by Credit Quality Indicators
Mortgage loans, sorted by the applicable credit quality indicators, are as follows:
 
June 30
2017
 
December 31
2016
 
(in millions of dollars)
Internal Rating
 
 
 
     Aa
$
0.5

 
$
0.7

     A
487.2

 
488.2

     Baa
1,556.5

 
1,506.6

     Ba
37.0

 
43.4

Total
$
2,081.2

 
$
2,038.9


Loan-to-Value Ratio
 
 
 
     <= 65%
$
968.1

 
$
917.9

     > 65% <= 75%
1,011.0

 
1,011.5

     > 75% <= 85%
49.9

 
50.8

     > 85%
52.2

 
58.7

Total
$
2,081.2

 
$
2,038.9
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, 2017
 
December 31, 2016
 
 
Overnight and Continuous
 
 
(in millions of dollars)
United States Government and Government Agencies and Authorities
 
$
1.1

 
$
0.1

Public Utilities
 
0.1

 
0.1

All Other Corporate Bonds
 
32.2

 
29.7

Total Borrowings
 
33.4

 
29.9

Gross Amount of Recognized Liability for Securities Lending Transactions
 
33.4

 
29.9

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, 2017
 
 
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
 
$
27.0

 
$
—

 
$
27.0

 
$
(6.0
)
 
$
(21.0
)
 
$
—

Securities Lending
 
219.9

 
—

 
219.9

 
(186.5
)
 
(33.4
)
 
—

Total
 
$
246.9

 
$
—

 
$
246.9

 
$
(192.5
)
 
$
(54.4
)
 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives
 
$
52.6

 
$
—

 
$
52.6

 
$
(40.6
)
 
$
—

 
$
12.0

Securities Lending
 
33.4

 
—

 
33.4

 
(33.4
)
 
—

 
—

Total
 
$
86.0

 
$
—

 
$
86.0

 
$
(74.0
)
 
$
—

 
$
12.0


 
 
December 31, 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
 
$
32.7

 
$
—

 
$
32.7

 
$
(7.3
)
 
$
(25.4
)
 
$
—

Securities Lending
 
178.5

 
—

 
178.5

 
(148.6
)
 
(29.9
)
 
—

Total
 
$
211.2

 
$
—

 
$
211.2

 
$
(155.9
)
 
$
(55.3
)
 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives
 
$
52.8

 
$
—

 
$
52.8

 
$
(37.6
)
 
$
—

 
$
15.2

Securities Lending
 
29.9

 
—

 
29.9

 
(29.9
)
 
—

 
—

Total
 
$
82.7

 
$
—

 
$
82.7

 
$
(67.5
)
 
$
—

 
$
15.2
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
 
2017
 
2016
 
2017
 
2016
 
(in millions of dollars)
Fixed Maturity Securities
$
572.0

 
$
579.6

 
$
1,135.7

 
$
1,143.4

Derivatives
14.0

 
12.4

 
27.4

 
24.3

Mortgage Loans
25.6

 
30.1

 
51.0

 
57.0

Policy Loans
4.5

 
4.3

 
8.8

 
8.4

Other Long-term Investments
13.4

 
6.3

 
19.5

 
16.3

Short-term Investments
2.6

 
2.1

 
4.5

 
3.6

Gross Investment Income
632.1

 
634.8

 
1,246.9

 
1,253.0

Less Investment Expenses
8.1

 
7.9

 
16.9

 
16.1

Less Investment Income on Participation Fund Account Assets
3.5

 
3.6

 
7.1

 
7.2

Net Investment Income
$
620.5

 
$
623.3

 
$
1,222.9

 
$
1,229.7
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
 
2017
 
2016
 
2017
 
2016
 
(in millions of dollars)
Fixed Maturity Securities
 
 
 
 
 
 
 
Gross Gains on Sales
$
1.9

 
$
10.9

 
$
4.3

 
$
27.8

Gross Losses on Sales
(1.2
)
 
(4.0
)
 
(2.3
)
 
(13.6
)
Other-Than-Temporary Impairment Loss
—

 
(9.4
)
 
—

 
(30.5
)
Mortgage Loans and Other Invested Assets
 
 
 
 
 
 
 
Gross Gains on Sales
1.9

 
2.0

 
2.6

 
3.8

Gross Losses on Sales
—

 
(0.4
)
 
(0.2
)
 
(0.7
)
Impairment Loss
—

 
(3.1
)
 
—

 
(3.1
)
Embedded Derivative in Modified Coinsurance Arrangement
6.2

 
10.2

 
14.8

 
4.6

All Other Derivatives
(0.3
)
 
(1.1
)
 
(0.5
)
 
(3.6
)
Foreign Currency Transactions
(0.4
)
 
0.2

 
0.4

 
0.1

Net Realized Investment Gain (Loss)
$
8.1

 
$
5.3

 
$
19.1

 
$
(15.2
)