(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
(Address of principal executive offices) | (Zip Code) | ||||
( | |||||
(Registrant's telephone number, including area code) | |||||
Not Applicable | |||||
(Former name, former address and former fiscal year, if changed since last report) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
x | Accelerated filer | ☐ | ||||||||||||
Non-accelerated filer | ¨ | Smaller reporting company | ||||||||||||
Emerging growth company | ||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | |||||||||||||
Page | |||||||||||
June 30 | December 31 | ||||||||||
2020 | 2019 | ||||||||||
(in millions of dollars) | |||||||||||
(Unaudited) | |||||||||||
Assets | |||||||||||
Investments | |||||||||||
Fixed Maturity Securities - at fair value (amortized cost of $ | $ | $ | |||||||||
Mortgage Loans (net of allowance for credit losses of $ | |||||||||||
Policy Loans | |||||||||||
Other Long-term Investments | |||||||||||
Short-term Investments | |||||||||||
Total Investments | |||||||||||
Other Assets | |||||||||||
Cash and Bank Deposits | |||||||||||
Accounts and Premiums Receivable (net of allowance for credit losses of $ | |||||||||||
Reinsurance Recoverable (net of allowance for credit losses of $ | |||||||||||
Accrued Investment Income | |||||||||||
Deferred Acquisition Costs | |||||||||||
Goodwill | |||||||||||
Property and Equipment | |||||||||||
Other Assets | |||||||||||
Total Assets | $ | $ |
June 30 | December 31 | ||||||||||
2020 | 2019 | ||||||||||
(in millions of dollars) | |||||||||||
(Unaudited) | |||||||||||
Liabilities and Stockholders' Equity | |||||||||||
Liabilities | |||||||||||
Policy and Contract Benefits | $ | $ | |||||||||
Reserves for Future Policy and Contract Benefits | |||||||||||
Unearned Premiums | |||||||||||
Other Policyholders’ Funds | |||||||||||
Income Tax Payable | |||||||||||
Deferred Income Tax | |||||||||||
Short-term Debt | |||||||||||
Long-term Debt | |||||||||||
Payables for Collateral on Investments | |||||||||||
Other Liabilities | |||||||||||
Total Liabilities | |||||||||||
Commitments and Contingent Liabilities - Note 11 | |||||||||||
Stockholders' Equity | |||||||||||
Common Stock, $ | |||||||||||
Authorized: | |||||||||||
Issued: | |||||||||||
Additional Paid-in Capital | |||||||||||
Accumulated Other Comprehensive Income | |||||||||||
Retained Earnings | |||||||||||
Treasury Stock - at cost: | ( | ( | |||||||||
Total Stockholders' Equity | |||||||||||
Total Liabilities and Stockholders' Equity | $ | $ |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions of dollars, except share data) | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Premium Income | $ | $ | $ | $ | |||||||||||||||||||
Net Investment Income | |||||||||||||||||||||||
Net Realized Investment Gain (Loss) | ( | ( | ( | ||||||||||||||||||||
Other Income | |||||||||||||||||||||||
Total Revenue | |||||||||||||||||||||||
Benefits and Expenses | |||||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | |||||||||||||||||||||||
Commissions | |||||||||||||||||||||||
Interest and Debt Expense | |||||||||||||||||||||||
Deferral of Acquisition Costs | ( | ( | ( | ( | |||||||||||||||||||
Amortization of Deferred Acquisition Costs | |||||||||||||||||||||||
Compensation Expense | |||||||||||||||||||||||
Other Expenses | |||||||||||||||||||||||
Total Benefits and Expenses | |||||||||||||||||||||||
Income Before Income Tax | |||||||||||||||||||||||
Income Tax Expense (Benefit) | |||||||||||||||||||||||
Current | |||||||||||||||||||||||
Deferred | ( | ( | |||||||||||||||||||||
Total Income Tax Expense | |||||||||||||||||||||||
Net Income | $ | $ | $ | $ | |||||||||||||||||||
Net Income Per Common Share | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Assuming Dilution | $ | $ | $ | $ |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Net Income | $ | $ | $ | $ | |||||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Change in Net Unrealized Gain on Securities Before Adjustment (net of tax expense of $ | |||||||||||||||||||||||
Change in Adjustment to Deferred Acquisition Costs and Reserves for Future Policy and Contract Benefits, Net of Reinsurance (net of tax benefit of $ | ( | ( | ( | ( | |||||||||||||||||||
Change in Net Gain on Hedges (net of tax benefit of $ | ( | ( | ( | ( | |||||||||||||||||||
Change in Foreign Currency Translation Adjustment (net of tax expense of $ | ( | ( | ( | ( | |||||||||||||||||||
Change in Unrecognized Pension and Postretirement Benefit Costs (net of tax expense of $ | |||||||||||||||||||||||
Total Other Comprehensive Income | |||||||||||||||||||||||
Comprehensive Income | $ | $ | $ | $ |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||
Balance at Beginning of Period | $ | $ | $ | $ | |||||||||||||||||||
Common Stock Activity | |||||||||||||||||||||||
Balance at End of Period | |||||||||||||||||||||||
Additional Paid-in Capital | |||||||||||||||||||||||
Balance at Beginning of Period | |||||||||||||||||||||||
Common Stock Activity | |||||||||||||||||||||||
Balance at End of Period | |||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Balance at Beginning of Period | ( | ( | ( | ||||||||||||||||||||
Other Comprehensive Income | |||||||||||||||||||||||
Balance at End of Period | ( | ( | |||||||||||||||||||||
Retained Earnings | |||||||||||||||||||||||
Balance at Beginning of Period | |||||||||||||||||||||||
Adjustment to Adopt Accounting Standard Update - Note 2 | ( | ( | |||||||||||||||||||||
Balance at Beginning of Period, as Adjusted | |||||||||||||||||||||||
Net Income | |||||||||||||||||||||||
Dividends to Stockholders (per common share: $ | ( | ( | ( | ( | |||||||||||||||||||
Balance at End of Period | |||||||||||||||||||||||
Treasury Stock | |||||||||||||||||||||||
Balance at Beginning of Period | ( | ( | ( | ( | |||||||||||||||||||
Purchases of Treasury Stock | ( | ( | |||||||||||||||||||||
Balance at End of Period | ( | ( | ( | ( | |||||||||||||||||||
Total Stockholders' Equity at End of Period | $ | $ | $ | $ |
Six Months Ended June 30 | |||||||||||
2020 | 2019 | ||||||||||
(in millions of dollars) | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Net Income | $ | $ | |||||||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | |||||||||||
Change in Receivables | |||||||||||
Change in Deferred Acquisition Costs | ( | ||||||||||
Change in Insurance Reserves and Liabilities | |||||||||||
Change in Income Taxes | |||||||||||
Change in Other Accrued Liabilities | ( | ||||||||||
Non-cash Components of Net Investment Income | ( | ( | |||||||||
Net Realized Investment Loss | |||||||||||
Depreciation | |||||||||||
Other, Net | |||||||||||
Net Cash Provided by Operating Activities | |||||||||||
Cash Flows from Investing Activities | |||||||||||
Proceeds from Sales of Fixed Maturity Securities | |||||||||||
Proceeds from Maturities of Fixed Maturity Securities | |||||||||||
Proceeds from Sales and Maturities of Other Investments | |||||||||||
Purchases of Fixed Maturity Securities | ( | ( | |||||||||
Purchases of Other Investments | ( | ( | |||||||||
Net Purchases of Short-term Investments | ( | ( | |||||||||
Net Increase (Decrease) in Payables for Collateral on Investments | ( | ||||||||||
Net Purchases of Property and Equipment | ( | ( | |||||||||
Net Cash Used by Investing Activities | ( | ( | |||||||||
Cash Flows from Financing Activities | |||||||||||
Issuance of Long-term Debt | |||||||||||
Long-term Debt Repayment | ( | ( | |||||||||
Issuance of Common Stock | |||||||||||
Repurchase of Common Stock | ( | ||||||||||
Dividends Paid to Stockholders | ( | ( | |||||||||
Other, Net | ( | ( | |||||||||
Net Cash Provided by Financing Activities | |||||||||||
Net Increase (Decrease) in Cash and Bank Deposits | ( | ||||||||||
Cash and Bank Deposits at Beginning of Year | |||||||||||
Cash and Bank Deposits at End of Period | $ | $ |
Accounting Standards Codification (ASC) | Description | Date of Adoption | Effect on Financial Statements | |||||||||||||||||
ASC 350 "Intangibles - Goodwill and Other" | This update eliminated the requirement to calculate the implied fair value of goodwill (the second step in the current two-step test) to measure a goodwill impairment charge. Instead, entities should perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the excess of the carrying amount over the fair value, with the loss not to exceed the total amount of goodwill allocated to that reporting unit. This guidance was applied in the period of adoption. | January 1, 2020 | The adoption of this update did not have an effect on our financial position or results of operations. | |||||||||||||||||
ASC 820 "Fair Value Measurement" | This update amended the fair value measurement guidance by removing or clarifying certain existing disclosure requirements, while also adding new disclosure requirements. Specifically, this update removed certain disclosures related to Level 1 and Level 2 transfers and removed the discussion regarding valuation processes of Level 3 fair value measurements. The update modified guidance related to investments in certain entities that calculate net asset value to explicitly require disclosure regarding timing of liquidation of the investee's assets and timing of redemption restrictions. The update added disclosures around the changes in unrealized gains and losses in other comprehensive income for recurring Level 3 investments held at the end of the reporting period and adds disclosures regarding certain unobservable inputs on Level 3 fair value measurements. The guidance was applied both retrospectively and prospectively, depending on the specific requirement of the update. | December 31, 2018 for the removal and modification of certain disclosures and January 1, 2020 for the addition of certain disclosures. | The adoption of this update modified our disclosures but did not have an impact on our financial position or results of operations. | |||||||||||||||||
ASC 326 "Financial Instruments - Credit Losses" | This update amended the guidance on the impairment of financial instruments. The update added an impairment model known as the current expected credit loss model that is based on expected losses rather than incurred losses and will generally result in earlier recognition of allowances for losses. The current expected credit loss model applies to financial instruments such as mortgage loans, fixed maturity securities classified as held-to-maturity, and certain receivables. The update also modified the other-than-temporary impairment model used for available-for-sale fixed maturity securities such that credit losses are recognized as an allowance rather than as a reduction in the amortized cost of the security. The reversal of previously recognized credit losses on available-for-sale fixed maturity securities is allowed under specified circumstances. Additional disclosures are also required, including information used to develop the allowance for losses. The guidance was applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. For available-for-sale fixed maturity securities, the update was applied prospectively. Other-than-temporary impairment losses recognized on available-for-sale fixed maturity securities prior to adoption of the update cannot be reversed. This guidance was applied in the period of adoption. | January 1, 2020 | See the summary table below for the financial statement impacts of this adoption on our financial statement line items at January 1, 2020, as well as the required update to our significant accounting policies. In addition, see Note 4 of the "Notes to Consolidated Financial Statements" contained herein in this Item 1 for the additional disclosures required by the update. | |||||||||||||||||
Balance at December 31, 2019 | Balance at January 1, 2020 | Effect of Change | |||||||||||||||
(in millions of dollars) | |||||||||||||||||
Adjustments due to ASC 326 | |||||||||||||||||
Consolidated Balance Sheets | |||||||||||||||||
Assets | |||||||||||||||||
Mortgage Loans | $ | $ | $ | ( | |||||||||||||
Reinsurance Recoverable | ( | ||||||||||||||||
Accounts and Premiums Receivable | ( | ||||||||||||||||
Liabilities | |||||||||||||||||
Deferred Income Tax | ( | ||||||||||||||||
Other Liabilities | |||||||||||||||||
Stockholders' Equity | |||||||||||||||||
Retained Earnings | ( |
ASC | Description | Date of Adoption | Effect on Financial Statements | |||||||||||||||||
ASC 715 "Compensation - Retirement Benefits" | This update amends the defined benefit pension and other postretirement benefit guidance by removing or clarifying certain existing disclosure requirements, while also adding new disclosure requirements. Specifically, this update removes the requirement to disclose the effects of a one-percentage point change in the assumed healthcare cost trend and the requirement to disclose amounts in accumulated other comprehensive income expected to be recognized as part of net periodic benefit cost of the next year. This update adds a requirement to describe the reasons for significant gains and losses related to changes in the benefit obligation for the period. The update also clarifies that the projected benefit obligation (PBO) and accumulated benefit obligation (ABO) and fair value of plan assets are to be disclosed for plans with PBOs or ABOs in excess of plan assets. The guidance is to be applied retrospectively and early adoption is permitted. | December 31, 2020 | The adoption of this update will modify our disclosures but will not have an impact on our financial position or results of operations. | |||||||||||||||||
ASC 740 "Income Taxes" | The amendments in this update simplify the accounting for income taxes by removing certain exceptions in the guidance related to the following: 1. losses in continuing operations when there is income in other items, 2. foreign subsidiaries becoming equity method investments and vice versa, and 3. year-to-date interim period losses exceeding anticipated loss for the year. The amendments also simplify the accounting for income taxes related to the following: 1. franchise taxes partially based on income, 2. step up in the tax basis of goodwill, 3. allocation of tax expense to entities not subject to tax, 4. enacted changes in tax law or rates in interim periods, and 5. employee stock ownership programs and investments in qualified affordable housing projects accounted for using the equity method. | January 1, 2021 | We have not yet determined the expected impact on our financial position or results of operations. |
ASC | Description | Date of Adoption | Effect on Financial Statements | |||||||||||||||||
ASC 944 "Financial Services - Insurance" | This update significantly amends the accounting and disclosure requirements for long-duration insurance contracts. These changes include a requirement to review, and if necessary, update cash flow assumptions used to measure the liability for future policy benefits for traditional and limited-payment contracts at least annually, with changes recognized in earnings. In addition, an entity will be required to update the discount rate assumption at each reporting date using a yield that is reflective of an upper-medium grade fixed-income instrument, with changes recognized in other comprehensive income. These changes result in the elimination of the provision for risk of adverse deviation and premium deficiency (or loss recognition) testing. The update also requires that an entity measure all market risk benefits associated with deposit contracts at fair value, with changes recognized in earnings except for the portion attributable to a change in the instrument-specific credit risk, which is to be recognized in other comprehensive income. This update also simplifies the amortization of deferred acquisition costs by requiring amortization on a constant level basis over the expected term of the related contracts. Deferred acquisition costs are required to be written off for unexpected contract terminations but are no longer subject to an impairment test. Significant additional disclosures will also be required, which include disaggregated rollforwards of certain liability balances and the disclosure of qualitative and quantitative information about expected cash flows, estimates, and assumptions. The application of this guidance will vary based upon the specific requirements of the update but will generally result in either a modified retrospective or full retrospective approach with changes applied as of the beginning of the earliest period presented. Early adoption is permitted. * The Financial Accounting Standards Board (FASB) has issued a proposal to defer the effective date to January 1, 2023 and is expected to issue a final amendment later in 2020. | January 1, 2022* | We are currently evaluating the impact of the update and expect that the adoption may have a material impact on our financial position and results of operations. The update will also significantly expand our disclosures. | |||||||||||||||||
ASC 848 "Reference Rate Reform" | The amendments in this update provide optional guidance, for a limited period of time, to ease the potential burden in accounting for and recognizing the effects of reference rate reform on financial reporting. The guidance allows for various practical expedients and exceptions when applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. Specifically, the guidance provides certain practical expedients for contract modifications, fair value hedges, and cash flow hedges and also provides certain exceptions related to changes in the critical terms of a hedging relationship. The guidance also allows for a one-time election to sell or transfer debt securities that were both classified as held-to-maturity prior to January 1, 2020 and reference a rate affected by the reform. | Adoption is permitted as of the beginning of the interim period that includes March 12, 2020 (the issuance date of the update), or any date thereafter, through December 31, 2022, at which point the guidance will sunset. | We have not yet determined the impact on our financial position or results of operations if we elect to adopt this guidance. |
Level 2 | Level 3 | ||||||||||||||||
Instrument | Observable Inputs | Unobservable Inputs | |||||||||||||||
United States Government and Government Agencies and Authorities | |||||||||||||||||
Valuation Method | Principally the market approach | Not applicable | |||||||||||||||
Valuation Techniques / Inputs | Prices obtained from external pricing services | ||||||||||||||||
States, Municipalities, and Political Subdivisions | |||||||||||||||||
Valuation Method | Principally the market approach | Principally the market approach | |||||||||||||||
Valuation Techniques / Inputs | Prices obtained from external pricing services | Analysis of similar bonds, adjusted for comparability | |||||||||||||||
Relevant reports issued by analysts and rating agencies | |||||||||||||||||
Audited financial statements | |||||||||||||||||
Foreign Governments | |||||||||||||||||
Valuation Method | Principally the market approach | Principally the market approach | |||||||||||||||
Valuation Techniques / Inputs | Prices obtained from external pricing services | Analysis of similar bonds, adjusted for comparability | |||||||||||||||
Non-binding broker quotes | |||||||||||||||||
Call provisions | |||||||||||||||||
Public Utilities | |||||||||||||||||
Valuation Method | Principally the market and income approaches | Principally the market and income approaches | |||||||||||||||
Valuation Techniques / Inputs | Prices obtained from external pricing services | Change in benchmark reference | |||||||||||||||
Level 2 | Level 3 | ||||||||||||||||
Instrument | Observable Inputs | Unobservable Inputs | |||||||||||||||
Public Utilities - Continued | |||||||||||||||||
Non-binding broker quotes | Analysis of similar bonds, adjusted for comparability | ||||||||||||||||
Benchmark yields | Discount for size - illiquidity | ||||||||||||||||
Transactional data for new issuances and secondary trades | Volatility of credit | ||||||||||||||||
Security cash flows and structures | Lack of marketability | ||||||||||||||||
Recent issuance / supply | |||||||||||||||||
Audited financial statements | |||||||||||||||||
Security and issuer level spreads | |||||||||||||||||
Security creditor ratings/maturity/capital structure/optionality | |||||||||||||||||
Public covenants | |||||||||||||||||
Comparative bond analysis | |||||||||||||||||
Relevant reports issued by analysts and rating agencies | |||||||||||||||||
Mortgage/Asset-Backed Securities | |||||||||||||||||
Valuation Method | Principally the market and income approaches | Principally the market approach | |||||||||||||||
Valuation Techniques / Inputs | Prices obtained from external pricing services | Analysis of similar bonds, adjusted for comparability | |||||||||||||||
Non-binding broker quotes | Prices obtained from external pricing services | ||||||||||||||||
Security cash flows and structures | |||||||||||||||||
Underlying collateral | |||||||||||||||||
Prepayment speeds/loan performance/delinquencies | |||||||||||||||||
Relevant reports issued by analysts and rating agencies | |||||||||||||||||
Audited financial statements | |||||||||||||||||
All Other Corporate Bonds | |||||||||||||||||
Valuation Method | Principally the market and income approaches | Principally the market and income approaches | |||||||||||||||
Valuation Techniques / Inputs | Prices obtained from external pricing services | Change in benchmark reference | |||||||||||||||
Non-binding broker quotes | Discount for size - illiquidity | ||||||||||||||||
Benchmark yields | Volatility of credit | ||||||||||||||||
Transactional data for new issuances and secondary trades | Lack of marketability | ||||||||||||||||
Security cash flows and structures | Prices obtained from external pricing services | ||||||||||||||||
Recent issuance / supply | |||||||||||||||||
Security and issuer level spreads | |||||||||||||||||
Security creditor ratings/maturity/capital structure/optionality | |||||||||||||||||
Level 2 | Level 3 | ||||||||||||||||
Instrument | Observable Inputs | Unobservable Inputs | |||||||||||||||
All Other Corporate Bonds - Continued | |||||||||||||||||
Public covenants | |||||||||||||||||
Comparative bond analysis | |||||||||||||||||
Relevant reports issued by analysts and rating agencies | |||||||||||||||||
Audited financial statements | |||||||||||||||||
Redeemable Preferred Stocks | |||||||||||||||||
Valuation Method | Principally the market approach | Principally the market approach | |||||||||||||||
Valuation Techniques / Inputs | Non-binding broker quotes | Financial statement analysis | |||||||||||||||
Benchmark yields | |||||||||||||||||
Comparative bond analysis | |||||||||||||||||
Call provisions | |||||||||||||||||
Relevant reports issued by analysts and rating agencies | |||||||||||||||||
Audited financial statements | |||||||||||||||||
Perpetual Preferred and Equity Securities | |||||||||||||||||
Valuation Method | Principally the market approach | Principally the market and income approaches | |||||||||||||||
Valuation Techniques / Inputs | Prices obtained from external pricing services | Financial statement analysis | |||||||||||||||
Non-binding broker quotes |
June 30, 2020 | ||||||||||||||||||||
Investment Category | Fair Value | Redemption Term / Redemption Notice | Unfunded Commitments | |||||||||||||||||
(in millions of dollars) | (in millions of dollars) | |||||||||||||||||||
Private Credit | (a) | $ | Not redeemable | $ | ||||||||||||||||
Initial 2 year lock on each new investment / Quarterly after 2 year lock with 90 days notice | ||||||||||||||||||||
Total Private Credit | ||||||||||||||||||||
Private Equity | (b) | Not redeemable | ||||||||||||||||||
Real Assets | (c) | Not redeemable | ||||||||||||||||||
Quarterly / 90 days notice | ||||||||||||||||||||
Total Real Assets | ||||||||||||||||||||
Total Partnerships | $ | $ |
December 31, 2019 | ||||||||||||||||||||
Investment Category | Fair Value | Redemption Term / Redemption Notice | Unfunded Commitments | |||||||||||||||||
(in millions of dollars) | (in millions of dollars) | |||||||||||||||||||
Private Credit | (a) | $ | Not redeemable | $ | ||||||||||||||||
Initial 2 year lock on each new investment / Quarterly after 2 year lock with 90 days notice | ||||||||||||||||||||
Total Private Credit | ||||||||||||||||||||
Private Equity | (b) | Not redeemable | ||||||||||||||||||
Real Assets | (c) | Not redeemable | ||||||||||||||||||
Quarterly / 90 days notice | ||||||||||||||||||||
Total Real Assets | ||||||||||||||||||||
Total Partnerships | $ | $ |
June 30, 2020 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | NAV | Total | |||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||
United States Government and Government Agencies and Authorities | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
States, Municipalities, and Political Subdivisions | |||||||||||||||||||||||||||||
Foreign Governments | |||||||||||||||||||||||||||||
Public Utilities | |||||||||||||||||||||||||||||
Mortgage/Asset-Backed Securities | |||||||||||||||||||||||||||||
All Other Corporate Bonds | |||||||||||||||||||||||||||||
Redeemable Preferred Stocks | |||||||||||||||||||||||||||||
Total Fixed Maturity Securities | |||||||||||||||||||||||||||||
Other Long-term Investments | |||||||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||
Interest Rate Swaps | |||||||||||||||||||||||||||||
Forwards | |||||||||||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||||||||||
Credit Default Swaps | |||||||||||||||||||||||||||||
Total Derivatives | |||||||||||||||||||||||||||||
Perpetual Preferred and Equity Securities | |||||||||||||||||||||||||||||
Private Equity Partnerships | |||||||||||||||||||||||||||||
Total Other Long-term Investments | |||||||||||||||||||||||||||||
Total Financial Instrument Assets Carried at Fair Value | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Other Liabilities | |||||||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||
Foreign Exchange Contracts | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | |||||||||||||||||||||||||||||
Total Derivatives | |||||||||||||||||||||||||||||
Total Financial Instrument Liabilities Carried at Fair Value | $ | $ | $ | $ | $ |
December 31, 2019 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | NAV | Total | |||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||
United States Government and Government Agencies and Authorities | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
States, Municipalities, and Political Subdivisions | |||||||||||||||||||||||||||||
Foreign Governments | |||||||||||||||||||||||||||||
Public Utilities | |||||||||||||||||||||||||||||
Mortgage/Asset-Backed Securities | |||||||||||||||||||||||||||||
All Other Corporate Bonds | |||||||||||||||||||||||||||||
Redeemable Preferred Stocks | |||||||||||||||||||||||||||||
Total Fixed Maturity Securities | |||||||||||||||||||||||||||||
Other Long-term Investments | |||||||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||||||||||
Credit Default Swaps | |||||||||||||||||||||||||||||
Total Derivatives | |||||||||||||||||||||||||||||
Perpetual Preferred and Equity Securities | |||||||||||||||||||||||||||||
Private Equity Partnerships | |||||||||||||||||||||||||||||
Total Other Long-term Investments | |||||||||||||||||||||||||||||
Total Financial Instrument Assets Carried at Fair Value | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Other Liabilities | |||||||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||
Interest Rate Swaps | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | |||||||||||||||||||||||||||||
Total Derivatives | |||||||||||||||||||||||||||||
Total Financial Instrument Liabilities Carried at Fair Value | $ | $ | $ | $ | $ |
Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Beginning of Period | Total Realized and Unrealized Investment Gains (Losses) in | Level 3 Transfers | Fair Value End of Period | Change in Unrealized Gain (Loss) on Securities Held at the End of Period included in | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings | OCI (1) | Purchases | Sales | Into | Out of | OCI | Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
States, Municipalities, and Political Subdivisions | $ | $ | $ | $ | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign Governments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public Utilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage/Asset-Backed Securities | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All Other Corporate Bonds | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Fixed Maturity Securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Beginning of Period | Total Realized and Unrealized Investment Gains (Losses) in | Level 3 Transfers | Fair Value End of Period | ||||||||||||||||||||||||||||||||||||||||||||
Earnings | OCI | Purchases | Sales | Into | Out of | ||||||||||||||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign Governments | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Public Utilities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
All Other Corporate Bonds | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Redeemable Preferred Stocks | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Total Fixed Maturity Securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Equity Securities | |||||||||||||||||||||||||||||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Beginning of Year | Total Realized and Unrealized Investment Gains (Losses) in | Level 3 Transfers | Fair Value End of Period | Change in Unrealized Gain (Loss) on Securities Held at the End of Period included in | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings | OCI | Purchases | Sales | Into | Out of | OCI | Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
States, Municipalities, and Political Subdivisions | $ | $ | $ | $ | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign Governments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public Utilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage/Asset-Backed Securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All Other Corporate Bonds | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Fixed Maturity Securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Beginning of Year | Total Realized and Unrealized Investment Gains (Losses) in | Level 3 Transfers | Fair Value End of Period | ||||||||||||||||||||||||||||||||||||||||||||
Earnings | OCI | Purchases | Sales | Into | Out of | ||||||||||||||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign Governments | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Public Utilities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
All Other Corporate Bonds | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Redeemable Preferred Stocks | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Total Fixed Maturity Securities | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Equity Securities | |||||||||||||||||||||||||||||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||
Fair Value | Valuation Method | Unobservable Input | Range/Weighted Average | ||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||
Public Utilities | $ | Market Approach | Lack of Marketability Discount for Size | (a) (e) | |||||||||||||||||||
All Other Corporate Bonds - Private | Market Approach | Lack of Marketability Volatility of Credit Comparability Adjustment | (a) (b) (f) | ||||||||||||||||||||
Equity Securities - Private | Market Approach | Market Convention | (c) | Priced at Cost or Owner's Equity | |||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | ( | Discounted Cash Flows | Projected Liability Cash Flows Weighted Spread of Swap Curve | (d) | Actuarial Assumptions 1.6% |
December 31, 2019 | |||||||||||||||||||||||
Fair Value | Valuation Method | Unobservable Input | Range/Weighted Average | ||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||
All Other Corporate Bonds - Private | $ | Market Approach | Lack of Marketability Volatility of Credit Market Convention | (a) (b) (c) | Priced at Par | ||||||||||||||||||
Equity Securities - Private | Market Approach | Market Convention | (c) | Priced at Cost or Owner's Equity | |||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | ( | Discounted Cash Flows | Projected Liability Cash Flows Weighted Spread of Swap Curve | (d) | Actuarial Assumptions 0.8% |
June 30, 2020 | |||||||||||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Carrying Value | |||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Mortgage Loans | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Policy Loans | |||||||||||||||||||||||||||||
Other Long-term Investments | |||||||||||||||||||||||||||||
Miscellaneous Long-term Investments | |||||||||||||||||||||||||||||
Total Financial Instrument Assets Not Carried at Fair Value | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Long-term Debt | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Payable for Collateral on Federal Home Loan Bank (FHLB) Funding Agreements | |||||||||||||||||||||||||||||
Other Liabilities | |||||||||||||||||||||||||||||
Unfunded Commitments | |||||||||||||||||||||||||||||
Total Financial Instrument Liabilities Not Carried at Fair Value | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Carrying Value | |||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Mortgage Loans | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Policy Loans | |||||||||||||||||||||||||||||
Other Long-term Investments | |||||||||||||||||||||||||||||
Miscellaneous Long-term Investments | |||||||||||||||||||||||||||||
Total Financial Instrument Assets Not Carried at Fair Value | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Long-term Debt | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Other Liabilities | |||||||||||||||||||||||||||||
Unfunded Commitments | |||||||||||||||||||||||||||||
Total Financial Instrument Liabilities Not Carried at Fair Value | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||||||||
Amortized Cost | ACL(1) | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | |||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
United States Government and Government Agencies and Authorities | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
States, Municipalities, and Political Subdivisions | |||||||||||||||||||||||||||||
Foreign Governments | |||||||||||||||||||||||||||||
Public Utilities | |||||||||||||||||||||||||||||
Mortgage/Asset-Backed Securities | |||||||||||||||||||||||||||||
All Other Corporate Bonds | |||||||||||||||||||||||||||||
Redeemable Preferred Stocks | |||||||||||||||||||||||||||||
Total Fixed Maturity Securities | $ | $ | $ | $ | $ |
December 31, 2019 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | ||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
United States Government and Government Agencies and Authorities | $ | $ | $ | $ | |||||||||||||||||||
States, Municipalities, and Political Subdivisions | |||||||||||||||||||||||
Foreign Governments | |||||||||||||||||||||||
Public Utilities | |||||||||||||||||||||||
Mortgage/Asset-Backed Securities | |||||||||||||||||||||||
All Other Corporate Bonds | |||||||||||||||||||||||
Redeemable Preferred Stocks | |||||||||||||||||||||||
Total Fixed Maturity Securities | $ | $ | $ | $ |
June 30, 2020 | |||||||||||||||||||||||
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 | $ | $ | $ | $ | |||||||||||||||||||
Foreign Governments | |||||||||||||||||||||||
Public Utilities | |||||||||||||||||||||||
Mortgage/Asset-Backed Securities | |||||||||||||||||||||||
All Other Corporate Bonds | |||||||||||||||||||||||
Redeemable Preferred Stocks | |||||||||||||||||||||||
Total Fixed Maturity Securities | $ | $ | $ | $ |
December 31, 2019 | |||||||||||||||||||||||
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 | $ | $ | $ | $ | |||||||||||||||||||
States, Municipalities, and Political Subdivisions | |||||||||||||||||||||||
Foreign Governments | |||||||||||||||||||||||
Public Utilities | |||||||||||||||||||||||
Mortgage/Asset-Backed Securities | |||||||||||||||||||||||
All Other Corporate Bonds | |||||||||||||||||||||||
Total Fixed Maturity Securities | $ | $ | $ | $ |
June 30, 2020 | |||||||||||||||||||||||||||||
Amortized Cost, Net of ACL | Unrealized Gain Position | Unrealized Loss Position | |||||||||||||||||||||||||||
Gross Gain | Fair Value | Gross Loss | Fair Value | ||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
1 year or less | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Over 1 year through 5 years | |||||||||||||||||||||||||||||
Over 5 years through 10 years | |||||||||||||||||||||||||||||
Over 10 years | |||||||||||||||||||||||||||||
Mortgage/Asset-Backed Securities | |||||||||||||||||||||||||||||
Total Fixed Maturity Securities | $ | $ | $ | $ | $ |
December 31, 2019 | |||||||||||||||||||||||||||||
Amortized Cost | Unrealized Gain Position | Unrealized Loss Position | |||||||||||||||||||||||||||
Gross Gain | Fair Value | Gross Loss | Fair Value | ||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
1 year or less | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Over 1 year through 5 years | |||||||||||||||||||||||||||||
Over 5 years through 10 years | |||||||||||||||||||||||||||||
Over 10 years | |||||||||||||||||||||||||||||
Mortgage/Asset-Backed Securities | |||||||||||||||||||||||||||||
Total Fixed Maturity Securities | $ | $ | $ | $ | $ |
Gross Unrealized Loss | |||||||||||||||||||||||
Fair Value | Gross Unrealized Gain | Amount | Percent of Total Gross Unrealized Loss | ||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Investment-Grade | $ | $ | $ | % | |||||||||||||||||||
Below-Investment-Grade | % | ||||||||||||||||||||||
Total Fixed Maturity Securities | $ | $ | $ | % |
Three Months Ended | Six Months Ended | ||||||||||
(in millions of dollars) | |||||||||||
Balance, beginning of period | $ | $ | |||||||||
Credit losses on securities for which credit losses were not previously recorded | |||||||||||
Change in allowance due to change in intent to hold securities to maturity | ( | ( | |||||||||
Change in allowance on securities with allowance recorded in previous period | ( | ( | |||||||||
Balance, end of period | $ | $ |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions of dollars) | (in millions of dollars) | ||||||||||||||||||||||
Income Tax Credits | $ | $ | $ | $ | |||||||||||||||||||
Amortization, Net of Tax | ( | ( | ( | ( | |||||||||||||||||||
Income Tax Benefit | $ | $ | $ | $ |
June 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Carrying Amount | Percent of Total | Carrying Amount | Percent of Total | ||||||||||||||||||||
Property Type | |||||||||||||||||||||||
Apartment | $ | % | $ | % | |||||||||||||||||||
Industrial | |||||||||||||||||||||||
Office | |||||||||||||||||||||||
Retail | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total | $ | % | $ | % | |||||||||||||||||||
Region | |||||||||||||||||||||||
New England | $ | % | $ | % | |||||||||||||||||||
Mid-Atlantic | |||||||||||||||||||||||
East North Central | |||||||||||||||||||||||
West North Central | |||||||||||||||||||||||
South Atlantic | |||||||||||||||||||||||
East South Central | |||||||||||||||||||||||
West South Central | |||||||||||||||||||||||
Mountain | |||||||||||||||||||||||
Pacific | |||||||||||||||||||||||
Total | $ | % | $ | % |
June 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Carrying Amount | Percent of Total | Carrying Amount | Percent of Total | ||||||||||||||||||||
Internal Rating | |||||||||||||||||||||||
A | $ | % | $ | % | |||||||||||||||||||
BBB | |||||||||||||||||||||||
BB | |||||||||||||||||||||||
B | |||||||||||||||||||||||
Total | $ | % | $ | % | |||||||||||||||||||
Loan-to-Value Ratio | |||||||||||||||||||||||
<= 65% | $ | % | $ | % | |||||||||||||||||||
> 65% <= 75% | |||||||||||||||||||||||
> 75% <= 85% | |||||||||||||||||||||||
> 85% | |||||||||||||||||||||||
Total | $ | % | $ | % |
Prior to 2016 | 2016 | 2017 | 2018 | 2019 | 2020 | Total | |||||||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||||||||
Internal Rating | |||||||||||||||||||||||||||||||||||||||||
A | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
BBB | |||||||||||||||||||||||||||||||||||||||||
BB | |||||||||||||||||||||||||||||||||||||||||
B | |||||||||||||||||||||||||||||||||||||||||
Total Amortized Cost | |||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Carrying Amount | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Loan-to-Value Ratio | |||||||||||||||||||||||||||||||||||||||||
<=65% | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
>65<=75% | |||||||||||||||||||||||||||||||||||||||||
>75%<=85% | |||||||||||||||||||||||||||||||||||||||||
>85% | |||||||||||||||||||||||||||||||||||||||||
Total Amortized Cost | |||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Carrying Amount | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||
Beginning of Period | Current Period Provisions | Write-Offs | Recoveries | End of Period | |||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Loan-to-Value Ratio | |||||||||||||||||||||||||||||
<=65% | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
>65<=75% | |||||||||||||||||||||||||||||
>75%<=85% | |||||||||||||||||||||||||||||
>85% | ( | ||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||
Beginning of Year | Current Period Provisions | Write-Offs | Recoveries | End of Period | |||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||
Loan-to-Value Ratio | |||||||||||||||||||||||||||||
<=65% | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
>65<=75% | |||||||||||||||||||||||||||||
>75%<=85% | |||||||||||||||||||||||||||||
>85% | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
June 30, 2020 | December 31, 2019 | |||||||||||||
(in millions of dollars) | ||||||||||||||
Carrying Value of FHLB Common Stock | $ | $ | ||||||||||||
Advances from FHLB | $ | $ | ||||||||||||
Carrying Value of Collateral Posted to FHLB | ||||||||||||||
Fixed Maturity Securities | $ | $ | ||||||||||||
Commercial Mortgage Loans | ||||||||||||||
Total Carrying Value of Collateral Posted to FHLB | $ | $ |
June 30, 2020 | ||||||||||||||||||||||||||||||||||||||
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 | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||||||||||||
Derivatives | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||||||||
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 | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||
Securities Lending | ( | |||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||||||||||||
Derivatives | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions of dollars) | (in millions of dollars) | ||||||||||||||||||||||
Fixed Maturity Securities | $ | $ | $ | $ | |||||||||||||||||||
Derivatives | |||||||||||||||||||||||
Mortgage Loans | |||||||||||||||||||||||
Policy Loans | |||||||||||||||||||||||
Other Long-term Investments | |||||||||||||||||||||||
Perpetual Preferred Securities1 | ( | ||||||||||||||||||||||
Private Equity Partnerships2 | ( | ( | |||||||||||||||||||||
Other | |||||||||||||||||||||||
Short-term Investments | |||||||||||||||||||||||
Gross Investment Income | |||||||||||||||||||||||
Less Investment Expenses | |||||||||||||||||||||||
Less Investment Income on Participation Fund Account Assets | |||||||||||||||||||||||
Net Investment Income | $ | $ | $ | $ |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions of dollars) | (in millions of dollars) | ||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||
Gross Gains on Sales | $ | $ | $ | $ | |||||||||||||||||||
Gross Losses on Sales | ( | ( | ( | ( | |||||||||||||||||||
Credit Losses | ( | ( | |||||||||||||||||||||
Mortgage Loans and Other Invested Assets | |||||||||||||||||||||||
Gross Gains on Sales | |||||||||||||||||||||||
Gross Losses on Sales | ( | ( | |||||||||||||||||||||
Credit Losses | ( | ( | |||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | ( | ( | |||||||||||||||||||||
All Other Derivatives | ( | ( | ( | ( | |||||||||||||||||||
Foreign Currency Transactions | ( | ||||||||||||||||||||||
Net Realized Investment Gain (Loss) | $ | $ | ( | $ | ( | $ | ( |
June 30, 2020 | December 31, 2019 | |||||||||||||
(in millions of dollars) | ||||||||||||||
Carrying Value of Collateral Received from Counterparties | ||||||||||||||
Cash | $ | $ | ||||||||||||
Carrying Value of Collateral Posted to Counterparties | ||||||||||||||
Fixed Maturity Securities | $ | $ | ||||||||||||
Swaps | ||||||||||||||||||||||||||||||||
Receive Fixed/Pay Fixed | Receive Fixed/Pay Variable | Credit Default | Forwards | Total | ||||||||||||||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||||||
Terminations | ||||||||||||||||||||||||||||||||
Foreign Currency | ( | ( | ( | |||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||||||
Terminations | ||||||||||||||||||||||||||||||||
Foreign Currency | ( | ( | ( | |||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||||||
Terminations | ||||||||||||||||||||||||||||||||
Foreign Currency | ||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||||||
Terminations | ||||||||||||||||||||||||||||||||
Foreign Currency | ( | ( | ||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | $ | $ |
Carrying Amount of Hedged Assets (Liabilities) | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets (Liabilities) | ||||||||||||||||||||||
June 30, 2020 | December 31, 2019 | June 30, 2020 | December 31, 2019 | ||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Receive fixed functional currency interest, pay fixed foreign currency interest | $ | $ | $ | ( | $ | ||||||||||||||||||
Long-term Debt | $ | ( | $ | ( | $ | ( | $ |
June 30, 2020 | |||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Designated as Hedging Instruments | |||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||
Foreign Exchange Contracts | Other L-T Investments | $ | Other Liabilities | $ | |||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||||
Interest Rate Swaps | Other L-T Investments | Other Liabilities | |||||||||||||||||||||
Foreign Exchange Contracts | Other L-T Investments | Other Liabilities | |||||||||||||||||||||
Total Fair Value Hedges | |||||||||||||||||||||||
Total Designated as Hedging Instruments | $ | $ | |||||||||||||||||||||
Not Designated as Hedging Instruments | |||||||||||||||||||||||
Credit Default Swaps | Other L-T Investments | $ | Other Liabilities | $ | |||||||||||||||||||
Forwards | Other L-T Investments | Other Liabilities | |||||||||||||||||||||
Foreign Exchange Contracts | Other L-T Investments | Other Liabilities | |||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | Other L-T Investments | Other Liabilities | |||||||||||||||||||||
Total Not Designated as Hedging Instruments | $ | $ |
December 31, 2019 | |||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Designated as Hedging Instruments | |||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||
Foreign Exchange Contracts | Other L-T Investments | $ | Other Liabilities | $ | |||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||||
Interest Rate Swaps | Other L-T Investments | Other Liabilities | |||||||||||||||||||||
Foreign Exchange Contracts | Other L-T Investments | Other Liabilities | |||||||||||||||||||||
Total Fair Value Hedges | |||||||||||||||||||||||
Total Designated as Hedging Instruments | $ | $ | |||||||||||||||||||||
Not Designated as Hedging Instruments | |||||||||||||||||||||||
Credit Default Swaps | Other L-T Investments | $ | Other Liabilities | $ | |||||||||||||||||||
Foreign Exchange Contracts | Other L-T Investments | Other Liabilities | |||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | Other L-T Investments | Other Liabilities | |||||||||||||||||||||
Total Not Designated as Hedging Instruments | $ | $ |
Three Months Ended June 30 | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Net Investment Income | Net Realized Investment Gain (Loss) | Interest and Debt Expense | Net Investment Income | Net Realized Investment Gain (Loss) | Interest and Debt Expense | ||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||
Total Income and Expense Presented in the Consolidated Statements of Income of Which Hedged Items are Recorded | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Gain (Loss) on Cash Flow Hedging Relationships | |||||||||||||||||||||||||||||||||||
Interest Rate Swaps: | |||||||||||||||||||||||||||||||||||
Hedged items | |||||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts: | |||||||||||||||||||||||||||||||||||
Hedged items | |||||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | ( | ( | |||||||||||||||||||||||||||||||||
Gain (Loss) on Fair Value Hedging Relationships | |||||||||||||||||||||||||||||||||||
Interest Rate Swaps: | |||||||||||||||||||||||||||||||||||
Hedged items | ( | ||||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | ( | ( | |||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||||||||||||||||
Hedged items | |||||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | ( | ( | |||||||||||||||||||||||||||||||||
Six Months Ended June 30 | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Net Investment Income | Net Realized Investment Gain (Loss) | Interest and Debt Expense | Net Investment Income | Net Realized Investment Gain (Loss) | Interest and Debt Expense | ||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||
Total Income and Expense Presented in the Consolidated Statements of Income of Which Hedged Items are Recorded | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Gain (Loss) on Cash Flow Hedging Relationships | |||||||||||||||||||||||||||||||||||
Interest Rate Swaps: | |||||||||||||||||||||||||||||||||||
Hedged items | ( | ||||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts: | |||||||||||||||||||||||||||||||||||
Hedged items | |||||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | ( | ( | |||||||||||||||||||||||||||||||||
Gain (Loss) on Fair Value Hedging Relationships | |||||||||||||||||||||||||||||||||||
Interest Rate Swaps: | |||||||||||||||||||||||||||||||||||
Hedged items | ( | ( | |||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | ( | ||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | |||||||||||||||||||||||||||||||||||
Hedged items | ( | ||||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | ( | ||||||||||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
(in millions of dollars) | (in millions of dollars) | |||||||||||||||||||||||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives | ||||||||||||||||||||||||||
Interest Rate Swaps and Forwards | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
Foreign Exchange Contracts | ( | ( | ||||||||||||||||||||||||
Total | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
(in millions of dollars) | (in millions of dollars) | |||||||||||||||||||||||||
Net Realized Investment Gain (Loss) | ||||||||||||||||||||||||||
Credit Default Swaps | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Foreign Exchange Contracts | ( | ( | ( | ( | ||||||||||||||||||||||
Embedded Derivative in Modified Coinsurance Arrangement | ( | ( | ||||||||||||||||||||||||
Total | $ | $ | ( | $ | ( | $ |
Net Unrealized Gain on Securities | Net Gain on Hedges | Foreign Currency Translation Adjustment | Unrecognized Pension and Postretirement Benefit Costs | Total | |||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||
Other Comprehensive Income (Loss) Before Reclassifications | ( | ( | |||||||||||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | ( | ( | |||||||||||||||||||||||||||||||||
Net Other Comprehensive Income (Loss) | ( | ( | |||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | ( | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||
Other Comprehensive Income (Loss) Before Reclassifications | ( | ||||||||||||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | ( | ( | |||||||||||||||||||||||||||||||||
Net Other Comprehensive Income (Loss) | ( | ( | |||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) Before Reclassifications | ( | ||||||||||||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | ( | ||||||||||||||||||||||||||||||||||
Net Other Comprehensive Income (Loss) | ( | ( | |||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | ( | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||
Other Comprehensive Income (Loss) Before Reclassifications | ( | ( | |||||||||||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | ( | ( | |||||||||||||||||||||||||||||||||
Net Other Comprehensive Income (Loss) | ( | ( | |||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | ( | $ | ( | $ | ( |
Change at June 30, 2020 | ||||||||||||||||||||||||||||||||
June 30 | March 31 | December 31 | Three Months | Six Months | ||||||||||||||||||||||||||||
2020 | 2020 | 2019 | Ended | Ended | ||||||||||||||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||||||||||||||
Fixed Maturity Securities | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Deferred Acquisition Costs | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
Reserves for Future Policy and Contract Benefits | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
Reinsurance Recoverable | ||||||||||||||||||||||||||||||||
Income Tax | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
Change at June 30, 2019 | ||||||||||||||||||||||||||||||||
June 30 | March 31 | December 31 | Three Months | Six Months | ||||||||||||||||||||||||||||
2019 | 2019 | 2018 | Ended | Ended | ||||||||||||||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||||||||||||||
Fixed Maturity Securities | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Deferred Acquisition Costs | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
Reserves for Future Policy and Contract Benefits | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
Reinsurance Recoverable | ||||||||||||||||||||||||||||||||
Income Tax | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||
Total | $ | $ | ( | $ | ( | $ | $ |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||
(in millions of dollars) | ||||||||||||||||||||||||||||||||
Net Unrealized Gain on Securities | ||||||||||||||||||||||||||||||||
Net Realized Investment Loss | ||||||||||||||||||||||||||||||||
Loss on Sales of Securities | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Credit Losses on Fixed Maturity Securities | ( | ( | ||||||||||||||||||||||||||||||
( | ( | ( | ( | |||||||||||||||||||||||||||||
Income Tax Benefit | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Total | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||
Net Gain on Hedges | ||||||||||||||||||||||||||||||||
Net Investment Income | ||||||||||||||||||||||||||||||||
Gain on Interest Rate Swaps and Forwards | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Gain (Loss) on Foreign Exchange Contracts | ( | ( | ||||||||||||||||||||||||||||||
Net Realized Investment Gain (Loss) | ||||||||||||||||||||||||||||||||
Gain on Interest Rate Swaps | ||||||||||||||||||||||||||||||||
Loss on Foreign Exchange Contracts | ( | ( | ||||||||||||||||||||||||||||||
Interest and Debt Expense | ||||||||||||||||||||||||||||||||
Loss on Interest Rate Swaps | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Income Tax Expense | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Unrecognized Pension and Postretirement Benefit Costs | ||||||||||||||||||||||||||||||||
Other Expenses | ||||||||||||||||||||||||||||||||
Amortization of Net Actuarial Loss | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||
Amortization of Prior Service Credit | ||||||||||||||||||||||||||||||||
( | ( | ( | ( | |||||||||||||||||||||||||||||
Income Tax Benefit | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Total | $ | ( | $ | ( | $ | ( | $ | ( |
2020 | 2019 | ||||||||||
(in millions of dollars) | |||||||||||
Balance at January 1 | $ | $ | |||||||||
Less Reinsurance Recoverable | |||||||||||
Net Balance at January 1 | |||||||||||
Incurred Related to | |||||||||||
Current Year | |||||||||||
Prior Years | |||||||||||
Interest | |||||||||||
All Other Incurred | ( | ( | |||||||||
Foreign Currency | ( | ( | |||||||||
Total Incurred | |||||||||||
Paid Related to | |||||||||||
Current Year | ( | ( | |||||||||
Prior Years | ( | ( | |||||||||
Total Paid | ( | ( | |||||||||
Net Balance at June 30 | |||||||||||
Plus Reinsurance Recoverable | |||||||||||
Balance at June 30 | $ | $ |
June 30 | |||||||||||
2020 | 2019 | ||||||||||
(in millions of dollars) | |||||||||||
Policy and Contract Benefits | $ | $ | |||||||||
Reserves for Future Policy and Contract Benefits | |||||||||||
Total | |||||||||||
Less: | |||||||||||
Life Reserves for Future Policy and Contract Benefits | |||||||||||
Accident and Health Active Life Reserves | |||||||||||
Adjustment Related to Unrealized Investment Gains and Losses | |||||||||||
Liability for Unpaid Claims and Claim Adjustment Expenses | $ | $ |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Premium Income | |||||||||||||||||||||||
Unum US | |||||||||||||||||||||||
Group Disability | |||||||||||||||||||||||
Group Long-term Disability | $ | $ | $ | $ | |||||||||||||||||||
Group Short-term Disability | |||||||||||||||||||||||
Group Life and Accidental Death & Dismemberment | |||||||||||||||||||||||
Group Life | |||||||||||||||||||||||
Accidental Death & Dismemberment | |||||||||||||||||||||||
Supplemental and Voluntary | |||||||||||||||||||||||
Individual Disability | |||||||||||||||||||||||
Voluntary Benefits | |||||||||||||||||||||||
Dental and Vision | |||||||||||||||||||||||
Unum International | |||||||||||||||||||||||
Unum UK | |||||||||||||||||||||||
Group Long-term Disability | |||||||||||||||||||||||
Group Life | |||||||||||||||||||||||
Supplemental | |||||||||||||||||||||||
Unum Poland | |||||||||||||||||||||||
Colonial Life | |||||||||||||||||||||||
Accident, Sickness, and Disability | |||||||||||||||||||||||
Life | |||||||||||||||||||||||
Cancer and Critical Illness | |||||||||||||||||||||||
Closed Block | |||||||||||||||||||||||
Long-term Care | |||||||||||||||||||||||
Individual Disability | |||||||||||||||||||||||
All Other | |||||||||||||||||||||||
Total Premium Income | $ | $ | $ | $ |
Unum US | Unum International | Colonial Life | Closed Block | Corporate | Total | ||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||
Premium Income | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Net Investment Income | |||||||||||||||||||||||||||||||||||
Other Income | |||||||||||||||||||||||||||||||||||
Adjusted Operating Revenue | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Adjusted Operating Income (Loss) | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2019 | |||||||||||||||||||||||||||||||||||
Premium Income | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Net Investment Income | |||||||||||||||||||||||||||||||||||
Other Income | |||||||||||||||||||||||||||||||||||
Adjusted Operating Revenue | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Adjusted Operating Income (Loss) | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Unum US | Unum International | Colonial Life | Closed Block | Corporate | Total | ||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||
Premium Income | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Net Investment Income | |||||||||||||||||||||||||||||||||||
Other Income | |||||||||||||||||||||||||||||||||||
Adjusted Operating Revenue | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Adjusted Operating Income (Loss) | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Six Months Ended June 30, 2019 | |||||||||||||||||||||||||||||||||||
Premium Income | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Net Investment Income | |||||||||||||||||||||||||||||||||||
Other Income | |||||||||||||||||||||||||||||||||||
Adjusted Operating Revenue | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Adjusted Operating Income (Loss) | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
June 30 | December 31 | ||||||||||
2020 | 2019 | ||||||||||
(in millions of dollars) | |||||||||||
Assets | |||||||||||
Unum US | $ | $ | |||||||||
Unum International | |||||||||||
Colonial Life | |||||||||||
Closed Block | |||||||||||
Corporate | |||||||||||
Total Assets | $ | $ |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Total Revenue | $ | $ | $ | $ | |||||||||||||||||||
Excluding: | |||||||||||||||||||||||
Net Realized Investment Gain (Loss) | ( | ( | ( | ||||||||||||||||||||
Adjusted Operating Revenue | $ | $ | $ | $ | |||||||||||||||||||
Income Before Income Tax | $ | $ | $ | $ | |||||||||||||||||||
Excluding: | |||||||||||||||||||||||
Net Realized Investment Gain (Loss) | ( | ( | ( | ||||||||||||||||||||
Impairment Loss on ROU Asset | ( | ( | |||||||||||||||||||||
Adjusted Operating Income | $ | $ | $ | $ |
Three Months Ended June 30 | |||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||
U.S. Plans | U.K. Plan | OPEB | |||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||
Service Cost | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Interest Cost | |||||||||||||||||||||||||||||||||||
Expected Return on Plan Assets | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||||
Net Actuarial Loss (Gain) | ( | ||||||||||||||||||||||||||||||||||
Total Net Periodic Benefit Cost (Credit) | $ | ( | $ | $ | ( | $ | ( | $ | $ |
Six Months Ended June 30 | |||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||
U.S. Plans | U.K. Plan | OPEB | |||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||
Service Cost | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Interest Cost | |||||||||||||||||||||||||||||||||||
Expected Return on Plan Assets | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||||
Net Actuarial Loss (Gain) | ( | ||||||||||||||||||||||||||||||||||
Prior Service Credit | ( | ( | |||||||||||||||||||||||||||||||||
Total Net Periodic Benefit Cost (Credit) | $ | ( | $ | $ | ( | $ | ( | $ | $ |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions of dollars, except share data) | |||||||||||||||||||||||
Numerator | |||||||||||||||||||||||
Net Income | $ | $ | $ | $ | |||||||||||||||||||
Denominator (000s) | |||||||||||||||||||||||
Weighted Average Common Shares - Basic | |||||||||||||||||||||||
Dilution for Assumed Exercises of Stock Options and Nonvested Stock Awards | |||||||||||||||||||||||
Weighted Average Common Shares - Assuming Dilution | |||||||||||||||||||||||
Net Income Per Common Share | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Assuming Dilution | $ | $ | $ | $ |
Three Months Ended June 30 | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
(in millions) | per share * | (in millions) | per share * | ||||||||||||||||||||
Net Income | $ | 265.5 | $ | 1.30 | $ | 281.2 | $ | 1.33 | |||||||||||||||
Excluding: | |||||||||||||||||||||||
Net Realized Investment Gain (Loss) (net of tax expense (benefit) of $8.4; $(1.6)) | 25.4 | 0.12 | (5.7) | (0.03) | |||||||||||||||||||
Impairment Loss on ROU Asset (net of tax benefit of $2.7; $—) | (10.0) | (0.05) | — | — | |||||||||||||||||||
After-tax Adjusted Operating Income | $ | 250.1 | $ | 1.23 | $ | 286.9 | $ | 1.36 | |||||||||||||||
Six Months Ended June 30 | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
(in millions) | per share * | (in millions) | per share * | ||||||||||||||||||||
Net Income | $ | 426.5 | $ | 2.10 | $ | 562.1 | $ | 2.64 | |||||||||||||||
Excluding: | |||||||||||||||||||||||
Net Realized Investment Gain (Loss) (net of tax benefit of $22.5; $1.1) | (87.7) | (0.43) | (5.1) | (0.03) | |||||||||||||||||||
Impairment Loss on ROU Asset (net of tax benefit of $2.7; $—) | (10.0) | (0.05) | — | — | |||||||||||||||||||
After-tax Adjusted Operating Income | $ | 524.2 | $ | 2.58 | $ | 567.2 | $ | 2.67 | |||||||||||||||
* Assuming Dilution |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||
Total Revenue | $ | 3,021.2 | $ | 3,016.7 | $ | 5,892.3 | $ | 6,004.3 | |||||||||||||||
Excluding: | |||||||||||||||||||||||
Net Realized Investment Gain (Loss) | 33.8 | (7.3) | (110.2) | (6.2) | |||||||||||||||||||
Adjusted Operating Revenue | $ | 2,987.4 | $ | 3,024.0 | $ | 6,002.5 | $ | 6,010.5 | |||||||||||||||
Income Before Income Tax | $ | 337.6 | $ | 352.0 | $ | 539.7 | $ | 705.3 | |||||||||||||||
Excluding: | |||||||||||||||||||||||
Net Realized Investment Gain (Loss) | 33.8 | (7.3) | (110.2) | (6.2) | |||||||||||||||||||
Impairment Loss on ROU Asset | (12.7) | — | (12.7) | — | |||||||||||||||||||
Adjusted Operating Income | $ | 316.5 | $ | 359.3 | $ | 662.6 | $ | 711.5 |
(in millions of dollars) | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||||||
2020 | % Change | 2019 | 2020 | % Change | 2019 | ||||||||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||||||||
Premium Income | $ | 2,368.7 | 1.1 | % | $ | 2,343.1 | $ | 4,740.1 | 1.2 | % | $ | 4,681.8 | |||||||||||||||||||||||
Net Investment Income | 569.0 | (8.9) | 624.9 | 1,154.0 | (5.4) | 1,219.6 | |||||||||||||||||||||||||||||
Net Realized Investment Gain (Loss) | 33.8 | N.M. | (7.3) | (110.2) | N.M. | (6.2) | |||||||||||||||||||||||||||||
Other Income | 49.7 | (11.3) | 56.0 | 108.4 | (0.6) | 109.1 | |||||||||||||||||||||||||||||
Total Revenue | 3,021.2 | 0.1 | 3,016.7 | 5,892.3 | (1.9) | 6,004.3 | |||||||||||||||||||||||||||||
Benefits and Expenses | |||||||||||||||||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 1,882.8 | (1.0) | 1,902.6 | 3,737.6 | (0.2) | 3,743.4 | |||||||||||||||||||||||||||||
Commissions | 273.0 | (4.0) | 284.4 | 552.2 | (3.9) | 574.5 | |||||||||||||||||||||||||||||
Interest and Debt Expense | 47.5 | 11.5 | 42.6 | 93.2 | 10.0 | 84.7 | |||||||||||||||||||||||||||||
Deferral of Acquisition Costs | (149.9) | (12.0) | (170.3) | (311.9) | (9.3) | (344.0) | |||||||||||||||||||||||||||||
Amortization of Deferred Acquisition Costs | 140.7 | (7.2) | 151.6 | 316.9 | (1.6) | 322.2 | |||||||||||||||||||||||||||||
Compensation Expense | 233.2 | 4.2 | 223.9 | 472.7 | 5.0 | 450.4 | |||||||||||||||||||||||||||||
Other Expenses | 256.3 | 11.5 | 229.9 | 491.9 | 5.2 | 467.8 | |||||||||||||||||||||||||||||
Total Benefits and Expenses | 2,683.6 | 0.7 | 2,664.7 | 5,352.6 | 1.0 | 5,299.0 | |||||||||||||||||||||||||||||
Income Before Income Tax | 337.6 | (4.1) | 352.0 | 539.7 | (23.5) | 705.3 | |||||||||||||||||||||||||||||
Income Tax | 72.1 | 1.8 | 70.8 | 113.2 | (20.9) | 143.2 | |||||||||||||||||||||||||||||
Net Income | $ | 265.5 | (5.6) | $ | 281.2 | $ | 426.5 | (24.1) | $ | 562.1 | |||||||||||||||||||||||||
N.M. = not a meaningful percentage |
(in millions) | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||||||
2020 | % Change | 2019 | 2020 | % Change | 2019 | ||||||||||||||||||||||||||||||
Unum US | $ | 215.3 | (2.9) | % | $ | 221.7 | $ | 451.1 | (9.8) | % | $ | 500.1 | |||||||||||||||||||||||
Unum International | $ | 30.1 | 1.3 | % | $ | 29.7 | $ | 54.0 | 3.3 | % | $ | 52.3 | |||||||||||||||||||||||
Colonial Life | $ | 72.3 | (43.0) | % | $ | 126.9 | $ | 171.6 | (27.2) | % | $ | 235.7 |
(in millions of dollars, except ratios) | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||||||
2020 | % Change | 2019 | 2020 | % Change | 2019 | ||||||||||||||||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||||||||||||||||
Premium Income | $ | 1,522.7 | 1.2 | % | $ | 1,504.5 | $ | 3,050.4 | 1.5 | % | $ | 3,006.4 | |||||||||||||||||||||||
Net Investment Income | 176.9 | (3.9) | 184.1 | 356.5 | (2.6) | 366.2 | |||||||||||||||||||||||||||||
Other Income | 35.3 | (4.1) | 36.8 | 75.5 | 5.9 | 71.3 | |||||||||||||||||||||||||||||
Total | 1,734.9 | 0.6 | 1,725.4 | 3,482.4 | 1.1 | 3,443.9 | |||||||||||||||||||||||||||||
Benefits and Expenses | |||||||||||||||||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 1,036.8 | 1.9 | 1,017.1 | 2,021.4 | 1.2 | 1,997.8 | |||||||||||||||||||||||||||||
Commissions | 154.4 | (2.2) | 157.8 | 308.7 | (3.8) | 320.8 | |||||||||||||||||||||||||||||
Deferral of Acquisition Costs | (75.5) | (9.5) | (83.4) | (155.1) | (9.3) | (171.0) | |||||||||||||||||||||||||||||
Amortization of Deferred Acquisition Costs | 72.0 | (12.8) | 82.6 | 179.7 | (3.6) | 186.5 | |||||||||||||||||||||||||||||
Other Expenses | 315.3 | 6.2 | 297.0 | 634.0 | 5.1 | 603.2 | |||||||||||||||||||||||||||||
Total | 1,503.0 | 2.2 | 1,471.1 | 2,988.7 | 1.7 | 2,937.3 | |||||||||||||||||||||||||||||
Adjusted Operating Income | $ | 231.9 | (8.8) | $ | 254.3 | $ | 493.7 | (2.5) | $ | 506.6 | |||||||||||||||||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||||||||||||||||
Benefit Ratio | 68.1 | % | 67.6 | % | 66.3 | % | 66.5 | % | |||||||||||||||||||||||||||
Other Expense Ratio | 20.7 | % | 19.7 | % | 20.8 | % | 20.1 | % | |||||||||||||||||||||||||||
Adjusted Operating Income Ratio | 15.2 | % | 16.9 | % | 16.2 | % | 16.9 | % | |||||||||||||||||||||||||||
(in millions of dollars, except ratios) | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||||||
2020 | % Change | 2019 | 2020 | % Change | 2019 | ||||||||||||||||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||||||||||||||||
Premium Income | |||||||||||||||||||||||||||||||||||
Group Long-term Disability | $ | 461.0 | 0.8 | % | $ | 457.2 | $ | 924.0 | 1.5 | % | $ | 910.1 | |||||||||||||||||||||||
Group Short-term Disability | 203.6 | 8.5 | 187.6 | 406.8 | 8.1 | 376.3 | |||||||||||||||||||||||||||||
Total Premium Income | 664.6 | 3.1 | 644.8 | 1,330.8 | 3.5 | 1,286.4 | |||||||||||||||||||||||||||||
Net Investment Income | 96.5 | (2.4) | 98.9 | 189.9 | (4.5) | 198.9 | |||||||||||||||||||||||||||||
Other Income | 33.8 | (1.7) | 34.4 | 72.2 | 8.4 | 66.6 | |||||||||||||||||||||||||||||
Total | 794.9 | 2.2 | 778.1 | 1,592.9 | 2.6 | 1,551.9 | |||||||||||||||||||||||||||||
Benefits and Expenses | |||||||||||||||||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 484.1 | 0.5 | 481.5 | 971.5 | 1.1 | 960.6 | |||||||||||||||||||||||||||||
Commissions | 48.1 | (0.6) | 48.4 | 98.0 | (0.7) | 98.7 | |||||||||||||||||||||||||||||
Deferral of Acquisition Costs | (11.7) | (10.0) | (13.0) | (24.5) | (1.2) | (24.8) | |||||||||||||||||||||||||||||
Amortization of Deferred Acquisition Costs | 13.2 | 1.5 | 13.0 | 26.5 | 5.2 | 25.2 | |||||||||||||||||||||||||||||
Other Expenses | 185.2 | 12.5 | 164.6 | 369.1 | 13.2 | 326.0 | |||||||||||||||||||||||||||||
Total | 718.9 | 3.5 | 694.5 | 1,440.6 | 4.0 | 1,385.7 | |||||||||||||||||||||||||||||
Adjusted Operating Income | $ | 76.0 | (9.1) | $ | 83.6 | $ | 152.3 | (8.4) | $ | 166.2 | |||||||||||||||||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||||||||||||||||
Benefit Ratio | 72.8 | % | 74.7 | % | 73.0 | % | 74.7 | % | |||||||||||||||||||||||||||
Other Expense Ratio | 27.9 | % | 25.5 | % | 27.7 | % | 25.3 | % | |||||||||||||||||||||||||||
Adjusted Operating Income Ratio | 11.4 | % | 13.0 | % | 11.4 | % | 12.9 | % | |||||||||||||||||||||||||||
Persistency: | |||||||||||||||||||||||||||||||||||
Group Long-term Disability | 89.4 | % | 90.5 | % | |||||||||||||||||||||||||||||||
Group Short-term Disability | 86.9 | % | 90.3 | % |
(in millions of dollars, except ratios) | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||||||
2020 | % Change | 2019 | 2020 | % Change | 2019 | ||||||||||||||||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||||||||||||||||
Premium Income | |||||||||||||||||||||||||||||||||||
Group Life | $ | 414.6 | (1.3) | % | $ | 420.0 | $ | 829.1 | (0.6) | % | $ | 834.4 | |||||||||||||||||||||||
Accidental Death & Dismemberment | 41.7 | — | 41.7 | 83.4 | 0.8 | 82.7 | |||||||||||||||||||||||||||||
Total Premium Income | 456.3 | (1.2) | 461.7 | 912.5 | (0.5) | 917.1 | |||||||||||||||||||||||||||||
Net Investment Income | 23.3 | (13.7) | 27.0 | 49.0 | (6.8) | 52.6 | |||||||||||||||||||||||||||||
Other Income | 0.5 | (28.6) | 0.7 | 1.0 | (23.1) | 1.3 | |||||||||||||||||||||||||||||
Total | 480.1 | (1.9) | 489.4 | 962.5 | (0.9) | 971.0 | |||||||||||||||||||||||||||||
Benefits and Expenses | |||||||||||||||||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 373.2 | 10.8 | 336.8 | 695.3 | 5.4 | 659.7 | |||||||||||||||||||||||||||||
Commissions | 36.9 | (2.4) | 37.8 | 73.3 | (2.8) | 75.4 | |||||||||||||||||||||||||||||
Deferral of Acquisition Costs | (8.4) | (16.8) | (10.1) | (17.9) | (6.8) | (19.2) | |||||||||||||||||||||||||||||
Amortization of Deferred Acquisition Costs | 9.8 | 6.5 | 9.2 | 19.7 | 5.3 | 18.7 | |||||||||||||||||||||||||||||
Other Expenses | 49.2 | (7.2) | 53.0 | 102.3 | (3.8) | 106.3 | |||||||||||||||||||||||||||||
Total | 460.7 | 8.0 | 426.7 | 872.7 | 3.8 | 840.9 | |||||||||||||||||||||||||||||
Adjusted Operating Income | $ | 19.4 | (69.1) | $ | 62.7 | $ | 89.8 | (31.0) | $ | 130.1 | |||||||||||||||||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||||||||||||||||
Benefit Ratio | 81.8 | % | 72.9 | % | 76.2 | % | 71.9 | % | |||||||||||||||||||||||||||
Other Expense Ratio | 10.8 | % | 11.5 | % | 11.2 | % | 11.6 | % | |||||||||||||||||||||||||||
Adjusted Operating Income Ratio | 4.3 | % | 13.6 | % | 9.8 | % | 14.2 | % | |||||||||||||||||||||||||||
Persistency: | |||||||||||||||||||||||||||||||||||
Group Life | 88.6 | % | 91.2 | % | |||||||||||||||||||||||||||||||
Accidental Death & Dismemberment | 87.8 | % | 90.1 | % | |||||||||||||||||||||||||||||||
(in millions of dollars, except ratios) | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||||||
2020 | % Change | 2019 | 2020 | % Change | 2019 | ||||||||||||||||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||||||||||||||||
Premium Income | |||||||||||||||||||||||||||||||||||
Individual Disability | $ | 113.1 | 4.2 | % | $ | 108.5 | $ | 222.6 | 1.6 | % | $ | 219.2 | |||||||||||||||||||||||
Voluntary Benefits | 224.0 | (2.0) | 228.6 | 454.4 | (1.9) | 463.0 | |||||||||||||||||||||||||||||
Dental and Vision | 64.7 | 6.2 | 60.9 | 130.1 | 7.8 | 120.7 | |||||||||||||||||||||||||||||
Total Premium Income | 401.8 | 1.0 | 398.0 | 807.1 | 0.5 | 802.9 | |||||||||||||||||||||||||||||
Net Investment Income | 57.1 | (1.9) | 58.2 | 117.6 | 2.5 | 114.7 | |||||||||||||||||||||||||||||
Other Income | 1.0 | (41.2) | 1.7 | 2.3 | (32.4) | 3.4 | |||||||||||||||||||||||||||||
Total | 459.9 | 0.4 | 457.9 | 927.0 | 0.7 | 921.0 | |||||||||||||||||||||||||||||
Benefits and Expenses | |||||||||||||||||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 179.5 | (9.7) | 198.8 | 354.6 | (6.1) | 377.5 | |||||||||||||||||||||||||||||
Commissions | 69.4 | (3.1) | 71.6 | 137.4 | (6.3) | 146.7 | |||||||||||||||||||||||||||||
Deferral of Acquisition Costs | (55.4) | (8.1) | (60.3) | (112.7) | (11.3) | (127.0) | |||||||||||||||||||||||||||||
Amortization of Deferred Acquisition Costs | 49.0 | (18.9) | 60.4 | 133.5 | (6.4) | 142.6 | |||||||||||||||||||||||||||||
Other Expenses | 80.9 | 1.9 | 79.4 | 162.6 | (4.9) | 170.9 | |||||||||||||||||||||||||||||
Total | 323.4 | (7.6) | 349.9 | 675.4 | (5.0) | 710.7 | |||||||||||||||||||||||||||||
Adjusted Operating Income | $ | 136.5 | 26.4 | $ | 108.0 | $ | 251.6 | 19.6 | $ | 210.3 | |||||||||||||||||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||||||||||||||||
Benefit Ratios: | |||||||||||||||||||||||||||||||||||
Individual Disability | 52.8 | % | 53.5 | % | 52.5 | % | 51.7 | % | |||||||||||||||||||||||||||
Voluntary Benefits | 43.1 | % | 42.5 | % | 37.8 | % | 38.9 | % | |||||||||||||||||||||||||||
Dental and Vision | 36.0 | % | 71.6 | % | 50.7 | % | 69.7 | % | |||||||||||||||||||||||||||
Other Expense Ratio | 20.1 | % | 19.9 | % | 20.1 | % | 21.3 | % | |||||||||||||||||||||||||||
Adjusted Operating Income Ratio | 34.0 | % | 27.1 | % | 31.2 | % | 26.2 | % | |||||||||||||||||||||||||||
Persistency: | |||||||||||||||||||||||||||||||||||
Individual Disability | 90.1 | % | 90.3 | % | |||||||||||||||||||||||||||||||
Voluntary Benefits | 73.0 | % | 72.7 | % | |||||||||||||||||||||||||||||||
Dental and Vision | 81.7 | % | 84.7 | % | |||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||||||
2020 | % Change | 2019 | 2020 | % Change | 2019 | ||||||||||||||||||||||||||||||
Sales by Product | |||||||||||||||||||||||||||||||||||
Group Disability and Group Life and AD&D | |||||||||||||||||||||||||||||||||||
Group Long-term Disability | $ | 55.2 | 13.3 | % | $ | 48.7 | $ | 86.6 | 1.2 | % | $ | 85.6 | |||||||||||||||||||||||
Group Short-term Disability | 29.6 | (19.1) | 36.6 | 43.8 | (23.8) | 57.5 | |||||||||||||||||||||||||||||
Group Life and AD&D | 56.6 | 5.2 | 53.8 | 84.7 | (10.3) | 94.4 | |||||||||||||||||||||||||||||
Subtotal | 141.4 | 1.7 | 139.1 | 215.1 | (9.4) | 237.5 | |||||||||||||||||||||||||||||
Supplemental and Voluntary | |||||||||||||||||||||||||||||||||||
Individual Disability | 14.2 | (1.4) | 14.4 | 36.9 | 25.1 | 29.5 | |||||||||||||||||||||||||||||
Voluntary Benefits | 47.0 | (13.0) | 54.0 | 175.6 | (14.9) | 206.4 | |||||||||||||||||||||||||||||
Dental and Vision | 12.7 | (10.6) | 14.2 | 23.5 | (12.0) | 26.7 | |||||||||||||||||||||||||||||
Subtotal | 73.9 | (10.5) | 82.6 | 236.0 | (10.1) | 262.6 | |||||||||||||||||||||||||||||
Total Sales | $ | 215.3 | (2.9) | $ | 221.7 | $ | 451.1 | (9.8) | $ | 500.1 | |||||||||||||||||||||||||
Sales by Market Sector | |||||||||||||||||||||||||||||||||||
Group Disability and Group Life and AD&D | |||||||||||||||||||||||||||||||||||
Core Market (< 2,000 employees) | $ | 80.6 | (3.6) | % | $ | 83.6 | $ | 131.8 | (0.4) | % | $ | 132.3 | |||||||||||||||||||||||
Large Case Market | 60.8 | 9.5 | 55.5 | 83.3 | (20.8) | 105.2 | |||||||||||||||||||||||||||||
Subtotal | 141.4 | 1.7 | 139.1 | 215.1 | (9.4) | 237.5 | |||||||||||||||||||||||||||||
Supplemental and Voluntary | 73.9 | (10.5) | 82.6 | 236.0 | (10.1) | 262.6 | |||||||||||||||||||||||||||||
Total Sales | $ | 215.3 | (2.9) | $ | 221.7 | $ | 451.1 | (9.8) | $ | 500.1 | |||||||||||||||||||||||||
(in millions of dollars, except ratios) | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||||||
2020 | % Change | 2019 | 2020 | % Change | 2019 | ||||||||||||||||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||||||||||||||||
Premium Income | |||||||||||||||||||||||||||||||||||
Unum UK | |||||||||||||||||||||||||||||||||||
Group Long-term Disability | $ | 89.0 | (0.7) | % | $ | 89.6 | $ | 179.8 | 1.3 | % | $ | 177.5 | |||||||||||||||||||||||
Group Life | 25.1 | (12.8) | 28.8 | 56.0 | — | 56.0 | |||||||||||||||||||||||||||||
Supplemental | 24.6 | 9.8 | 22.4 | 48.5 | 10.0 | 44.1 | |||||||||||||||||||||||||||||
Unum Poland | 18.4 | 3.4 | 17.8 | 37.4 | 6.9 | 35.0 | |||||||||||||||||||||||||||||
Total Premium Income | 157.1 | (0.9) | 158.6 | 321.7 | 2.9 | 312.6 | |||||||||||||||||||||||||||||
Net Investment Income | 26.3 | (41.3) | 44.8 | 52.8 | (24.1) | 69.6 | |||||||||||||||||||||||||||||
Other Income | 0.2 | (33.3) | 0.3 | 0.2 | (33.3) | 0.3 | |||||||||||||||||||||||||||||
Total | 183.6 | (9.9) | 203.7 | 374.7 | (2.0) | 382.5 | |||||||||||||||||||||||||||||
Benefits and Expenses | |||||||||||||||||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 124.8 | (4.6) | 130.8 | 253.4 | 6.8 | 237.3 | |||||||||||||||||||||||||||||
Commissions | 12.1 | 5.2 | 11.5 | 24.4 | 3.4 | 23.6 | |||||||||||||||||||||||||||||
Deferral of Acquisition Costs | (3.1) | (16.2) | (3.7) | (6.1) | (7.6) | (6.6) | |||||||||||||||||||||||||||||
Amortization of Deferred Acquisition Costs | 1.7 | (5.6) | 1.8 | 3.5 | (2.8) | 3.6 | |||||||||||||||||||||||||||||
Other Expenses | 33.0 | 1.2 | 32.6 | 65.0 | 0.3 | 64.8 | |||||||||||||||||||||||||||||
Total | 168.5 | (2.6) | 173.0 | 340.2 | 5.4 | 322.7 | |||||||||||||||||||||||||||||
Adjusted Operating Income | $ | 15.1 | (50.8) | $ | 30.7 | $ | 34.5 | (42.3) | $ | 59.8 | |||||||||||||||||||||||||
(in millions of pounds, except ratios) | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||||||
2020 | % Change | 2019 | 2020 | % Change | 2019 | ||||||||||||||||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||||||||||||||||
Premium Income | |||||||||||||||||||||||||||||||||||
Group Long-term Disability | £ | 71.6 | 2.7 | % | £ | 69.7 | £ | 142.6 | 3.9 | % | £ | 137.2 | |||||||||||||||||||||||
Group Life | 20.2 | (10.2) | 22.5 | 44.4 | 2.5 | 43.3 | |||||||||||||||||||||||||||||
Supplemental | 19.9 | 14.4 | 17.4 | 38.5 | 12.9 | 34.1 | |||||||||||||||||||||||||||||
Total Premium Income | 111.7 | 1.9 | 109.6 | 225.5 | 5.1 | 214.6 | |||||||||||||||||||||||||||||
Net Investment Income | 19.9 | (40.6) | 33.5 | 39.2 | (23.6) | 51.3 | |||||||||||||||||||||||||||||
Other Income | — | (100.0) | 0.1 | — | (100.0) | 0.1 | |||||||||||||||||||||||||||||
Total | 131.6 | (8.1) | 143.2 | 264.7 | (0.5) | 266.0 | |||||||||||||||||||||||||||||
Benefits and Expenses | |||||||||||||||||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 92.2 | (1.7) | 93.8 | 183.8 | 9.7 | 167.5 | |||||||||||||||||||||||||||||
Commissions | 7.1 | 7.6 | 6.6 | 14.2 | 4.4 | 13.6 | |||||||||||||||||||||||||||||
Deferral of Acquisition Costs | (1.1) | (38.9) | (1.8) | (2.3) | (20.7) | (2.9) | |||||||||||||||||||||||||||||
Amortization of Deferred Acquisition Costs | 1.2 | (7.7) | 1.3 | 2.6 | (3.7) | 2.7 | |||||||||||||||||||||||||||||
Other Expenses | 22.1 | 7.3 | 20.6 | 42.6 | 4.4 | 40.8 | |||||||||||||||||||||||||||||
Total | 121.5 | 0.8 | 120.5 | 240.9 | 8.7 | 221.7 | |||||||||||||||||||||||||||||
Adjusted Operating Income | £ | 10.1 | (55.5) | £ | 22.7 | £ | 23.8 | (46.3) | £ | 44.3 | |||||||||||||||||||||||||
Weighted Average Pound/Dollar Exchange Rate | 1.248 | 1.286 | 1.265 | 1.296 | |||||||||||||||||||||||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||||||||||||||||
Benefit Ratio | 82.5 | % | 85.6 | % | 81.5 | % | 78.1 | % | |||||||||||||||||||||||||||
Other Expense Ratio | 19.8 | % | 18.8 | % | 18.9 | % | 19.0 | % | |||||||||||||||||||||||||||
Adjusted Operating Income Ratio | 9.0 | % | 20.7 | % | 10.6 | % | 20.6 | % | |||||||||||||||||||||||||||
Persistency: | |||||||||||||||||||||||||||||||||||
Group Long-term Disability | 87.7 | % | 89.5 | % | |||||||||||||||||||||||||||||||
Group Life | 83.0 | % | 88.4 | % | |||||||||||||||||||||||||||||||
Supplemental | 90.5 | % | 92.2 | % | |||||||||||||||||||||||||||||||
(in millions of dollars and pounds) | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||||||
2020 | % Change | 2019 | 2020 | % Change | 2019 | ||||||||||||||||||||||||||||||
Unum International Sales by Product | |||||||||||||||||||||||||||||||||||
Unum UK | |||||||||||||||||||||||||||||||||||
Group Long-term Disability | $ | 13.0 | 4.8 | % | $ | 12.4 | $ | 21.6 | 4.9 | % | $ | 20.6 | |||||||||||||||||||||||
Group Life | 6.2 | (8.8) | 6.8 | 11.8 | (8.5) | 12.9 | |||||||||||||||||||||||||||||
Supplemental | 7.9 | 6.8 | 7.4 | 15.0 | 22.0 | 12.3 | |||||||||||||||||||||||||||||
Unum Poland | 3.0 | (3.2) | 3.1 | 5.6 | (13.8) | 6.5 | |||||||||||||||||||||||||||||
Total Sales | $ | 30.1 | 1.3 | $ | 29.7 | $ | 54.0 | 3.3 | $ | 52.3 | |||||||||||||||||||||||||
Unum International Sales by Market Sector | |||||||||||||||||||||||||||||||||||
Unum UK | |||||||||||||||||||||||||||||||||||
Group Long-term Disability and Group Life | |||||||||||||||||||||||||||||||||||
Core Market (< 500 employees) | $ | 10.2 | 3.0 | % | $ | 9.9 | $ | 19.3 | 4.9 | % | $ | 18.4 | |||||||||||||||||||||||
Large Case Market | 9.0 | (3.2) | 9.3 | 14.1 | (6.6) | 15.1 | |||||||||||||||||||||||||||||
Subtotal | 19.2 | — | 19.2 | 33.4 | (0.3) | 33.5 | |||||||||||||||||||||||||||||
Supplemental | 7.9 | 6.8 | 7.4 | 15.0 | 22.0 | 12.3 | |||||||||||||||||||||||||||||
Unum Poland | 3.0 | (3.2) | 3.1 | 5.6 | (13.8) | 6.5 | |||||||||||||||||||||||||||||
Total Sales | $ | 30.1 | 1.3 | $ | 29.7 | $ | 54.0 | 3.3 | $ | 52.3 | |||||||||||||||||||||||||
Unum UK Sales by Product | |||||||||||||||||||||||||||||||||||
Group Long-term Disability | £ | 10.5 | 8.2 | % | £ | 9.7 | £ | 17.2 | 8.2 | % | £ | 15.9 | |||||||||||||||||||||||
Group Life | 5.0 | (5.7) | 5.3 | 9.4 | (6.0) | 10.0 | |||||||||||||||||||||||||||||
Supplemental | 6.4 | 12.3 | 5.7 | 11.8 | 24.2 | 9.5 | |||||||||||||||||||||||||||||
Total Sales | £ | 21.9 | 5.8 | £ | 20.7 | £ | 38.4 | 8.5 | £ | 35.4 | |||||||||||||||||||||||||
Unum UK Sales by Market Sector | |||||||||||||||||||||||||||||||||||
Group Long-term Disability and Group Life | |||||||||||||||||||||||||||||||||||
Core Market (< 500 employees) | £ | 8.1 | 3.8 | % | £ | 7.8 | £ | 15.3 | 7.0 | % | £ | 14.3 | |||||||||||||||||||||||
Large Case Market | 7.4 | 2.8 | 7.2 | 11.3 | (2.6) | 11.6 | |||||||||||||||||||||||||||||
Subtotal | 15.5 | 3.3 | 15.0 | 26.6 | 2.7 | 25.9 | |||||||||||||||||||||||||||||
Supplemental | 6.4 | 12.3 | 5.7 | 11.8 | 24.2 | 9.5 | |||||||||||||||||||||||||||||
Total Sales | £ | 21.9 | 5.8 | £ | 20.7 | £ | 38.4 | 8.5 | £ | 35.4 | |||||||||||||||||||||||||
(in millions of dollars, except ratios) | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||||||
2020 | % Change | 2019 | 2020 | % Change | 2019 | ||||||||||||||||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||||||||||||||||
Premium Income | |||||||||||||||||||||||||||||||||||
Accident, Sickness, and Disability | $ | 250.3 | 3.3 | % | $ | 242.4 | $ | 499.6 | 3.1 | % | $ | 484.6 | |||||||||||||||||||||||
Life | 96.8 | 9.6 | 88.3 | 190.6 | 8.4 | 175.9 | |||||||||||||||||||||||||||||
Cancer and Critical Illness | 91.5 | 1.4 | 90.2 | 183.1 | 1.9 | 179.7 | |||||||||||||||||||||||||||||
Total Premium Income | 438.6 | 4.2 | 420.9 | 873.3 | 3.9 | 840.2 | |||||||||||||||||||||||||||||
Net Investment Income | 36.8 | (1.1) | 37.2 | 74.5 | 0.5 | 74.1 | |||||||||||||||||||||||||||||
Other Income | 0.3 | (57.1) | 0.7 | 0.6 | (53.8) | 1.3 | |||||||||||||||||||||||||||||
Total | 475.7 | 3.7 | 458.8 | 948.4 | 3.6 | 915.6 | |||||||||||||||||||||||||||||
Benefits and Expenses | |||||||||||||||||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 222.4 | 2.9 | 216.2 | 450.4 | 4.6 | 430.4 | |||||||||||||||||||||||||||||
Commissions | 87.1 | (8.2) | 94.9 | 180.1 | (4.9) | 189.3 | |||||||||||||||||||||||||||||
Deferral of Acquisition Costs | (71.3) | (14.3) | (83.2) | (150.7) | (9.4) | (166.4) | |||||||||||||||||||||||||||||
Amortization of Deferred Acquisition Costs | 67.0 | (0.3) | 67.2 | 133.7 | 1.2 | 132.1 | |||||||||||||||||||||||||||||
Other Expenses | 79.6 | 0.4 | 79.3 | 162.9 | 1.4 | 160.6 | |||||||||||||||||||||||||||||
Total | 384.8 | 2.8 | 374.4 | 776.4 | 4.1 | 746.0 | |||||||||||||||||||||||||||||
Adjusted Operating Income | $ | 90.9 | 7.7 | $ | 84.4 | $ | 172.0 | 1.4 | $ | 169.6 | |||||||||||||||||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||||||||||||||||
Benefit Ratio | 50.7 | % | 51.4 | % | 51.6 | % | 51.2 | % | |||||||||||||||||||||||||||
Other Expense Ratio | 18.1 | % | 18.8 | % | 18.6 | % | 19.1 | % | |||||||||||||||||||||||||||
Adjusted Operating Income Ratio | 20.7 | % | 20.1 | % | 19.7 | % | 20.2 | % | |||||||||||||||||||||||||||
Persistency: | |||||||||||||||||||||||||||||||||||
Accident, Sickness, and Disability | 74.0 | % | 73.2 | % | |||||||||||||||||||||||||||||||
Life | 83.7 | % | 83.3 | % | |||||||||||||||||||||||||||||||
Cancer and Critical Illness | 81.2 | % | 81.2 | % | |||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||||||
2020 | % Change | 2019 | 2020 | % Change | 2019 | ||||||||||||||||||||||||||||||
Sales by Product | |||||||||||||||||||||||||||||||||||
Accident, Sickness, and Disability | $ | 45.3 | (44.2) | % | $ | 81.2 | $ | 109.9 | (28.4) | % | $ | 153.4 | |||||||||||||||||||||||
Life | 16.1 | (38.1) | 26.0 | 36.8 | (19.5) | 45.7 | |||||||||||||||||||||||||||||
Cancer and Critical Illness | 10.9 | (44.7) | 19.7 | 24.9 | (32.0) | 36.6 | |||||||||||||||||||||||||||||
Total Sales | $ | 72.3 | (43.0) | $ | 126.9 | $ | 171.6 | (27.2) | $ | 235.7 | |||||||||||||||||||||||||
Sales by Market Sector | |||||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||||
Core Market (< 1,000 employees) | $ | 45.9 | (43.6) | % | $ | 81.4 | $ | 113.5 | (25.7) | % | $ | 152.8 | |||||||||||||||||||||||
Large Case Market | 10.0 | (50.0) | 20.0 | 21.9 | (36.2) | 34.3 | |||||||||||||||||||||||||||||
Subtotal | 55.9 | (44.9) | 101.4 | 135.4 | (27.6) | 187.1 | |||||||||||||||||||||||||||||
Public Sector | 16.4 | (35.7) | 25.5 | 36.2 | (25.5) | 48.6 | |||||||||||||||||||||||||||||
Total Sales | $ | 72.3 | (43.0) | $ | 126.9 | $ | 171.6 | (27.2) | $ | 235.7 | |||||||||||||||||||||||||
(in millions of dollars, except ratios) | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||||||
2020 | % Change | 2019 | 2020 | % Change | 2019 | ||||||||||||||||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||||||||||||||||
Premium Income | |||||||||||||||||||||||||||||||||||
Long-term Care | $ | 165.7 | 1.9 | % | $ | 162.6 | $ | 330.5 | 1.5 | % | $ | 325.6 | |||||||||||||||||||||||
Individual Disability | 83.1 | (12.0) | 94.4 | 160.1 | (16.8) | 192.5 | |||||||||||||||||||||||||||||
All Other | 1.5 | (28.6) | 2.1 | 4.1 | (8.9) | 4.5 | |||||||||||||||||||||||||||||
Total Premium Income | 250.3 | (3.4) | 259.1 | 494.7 | (5.3) | 522.6 | |||||||||||||||||||||||||||||
Net Investment Income | 326.3 | (8.0) | 354.5 | 662.4 | (5.5) | 701.1 | |||||||||||||||||||||||||||||
Other Income | 13.7 | (17.0) | 16.5 | 31.9 | (7.5) | 34.5 | |||||||||||||||||||||||||||||
Total | 590.3 | (6.3) | 630.1 | 1,189.0 | (5.5) | 1,258.2 | |||||||||||||||||||||||||||||
Benefits and Expenses | |||||||||||||||||||||||||||||||||||
Benefits and Change in Reserves for Future Benefits | 498.8 | (7.4) | 538.5 | 1,012.4 | (6.1) | 1,077.9 | |||||||||||||||||||||||||||||
Commissions | 19.4 | (4.0) | 20.2 | 39.0 | (4.4) | 40.8 | |||||||||||||||||||||||||||||
Interest and Debt Expense | 0.7 | (50.0) | 1.4 | 1.5 | (50.0) | 3.0 | |||||||||||||||||||||||||||||
Other Expenses | 34.7 | (4.4) | 36.3 | 69.7 | (2.9) | 71.8 | |||||||||||||||||||||||||||||
Total | 553.6 | (7.2) | 596.4 | 1,122.6 | (5.9) | 1,193.5 | |||||||||||||||||||||||||||||
Adjusted Operating Income | $ | 36.7 | 8.9 | $ | 33.7 | $ | 66.4 | 2.6 | $ | 64.7 | |||||||||||||||||||||||||
Interest Adjusted Loss Ratios: | |||||||||||||||||||||||||||||||||||
Long-term Care | 67.0 | % | 87.4 | % | 74.0 | % | 88.0 | % | |||||||||||||||||||||||||||
Individual Disability | 89.5 | % | 81.3 | % | 87.1 | % | 80.7 | % | |||||||||||||||||||||||||||
Operating Ratios (% of Premium Income): | |||||||||||||||||||||||||||||||||||
Other Expense Ratio | 13.9 | % | 14.0 | % | 14.1 | % | 13.7 | % | |||||||||||||||||||||||||||
Adjusted Operating Income Ratio | 14.7 | % | 13.0 | % | 13.4 | % | 12.4 | % | |||||||||||||||||||||||||||
Persistency: | |||||||||||||||||||||||||||||||||||
Long-term Care | 95.3 | % | 95.6 | % | |||||||||||||||||||||||||||||||
Individual Disability | 88.8 | % | 88.3 | % | |||||||||||||||||||||||||||||||
(in millions of dollars) | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||||||||||||||||||||||
2020 | % Change | 2019 | 2020 | % Change | 2019 | ||||||||||||||||||||||||||||||
Adjusted Operating Revenue | |||||||||||||||||||||||||||||||||||
Net Investment Income | $ | 2.7 | (37.2) | % | $ | 4.3 | $ | 7.8 | (9.3) | % | $ | 8.6 | |||||||||||||||||||||||
Other Income | 0.2 | (88.2) | 1.7 | 0.2 | (88.2) | 1.7 | |||||||||||||||||||||||||||||
Total | 2.9 | (51.7) | 6.0 | 8.0 | (22.3) | 10.3 | |||||||||||||||||||||||||||||
Interest and Other Expenses | 73.7 | 48.0 | 49.8 | 124.7 | 25.3 | 99.5 | |||||||||||||||||||||||||||||
Loss Before Income Tax and Net Realized Investment Gains and Losses | (70.8) | 61.6 | (43.8) | (116.7) | 30.8 | (89.2) | |||||||||||||||||||||||||||||
Impairment Loss on ROU Asset | 12.7 | N.M. | — | 12.7 | N.M. | — | |||||||||||||||||||||||||||||
Adjusted Operating Loss | $ | (58.1) | 32.6 | $ | (43.8) | $ | (104.0) | 16.6 | $ | (89.2) | |||||||||||||||||||||||||
N.M. = not a meaningful percentage |
(in millions of dollars) | ||||||||||||||||||||||||||||||||||||||
Classification | Fair Value | Net Unrealized Gain | Fair Value of Fixed Maturity Securities with Gross Unrealized Loss | Gross Unrealized Loss | Fair Value of Fixed Maturity Securities with Gross Unrealized Gain | Gross Unrealized Gain | ||||||||||||||||||||||||||||||||
Basic Industry | $ | 3,371.9 | $ | 381.2 | $ | 295.9 | $ | 24.0 | $ | 3,076.0 | $ | 405.2 | ||||||||||||||||||||||||||
Capital Goods | 4,410.6 | 644.9 | 160.3 | 8.7 | 4,250.3 | 653.6 | ||||||||||||||||||||||||||||||||
Communications | 3,128.9 | 601.3 | 236.3 | 17.1 | 2,892.6 | 618.4 | ||||||||||||||||||||||||||||||||
Consumer Cyclical | 1,592.0 | 202.5 | 209.4 | 8.9 | 1,382.6 | 211.4 | ||||||||||||||||||||||||||||||||
Consumer Non-Cyclical | 7,884.2 | 1,362.6 | 372.9 | 18.6 | 7,511.3 | 1,381.2 | ||||||||||||||||||||||||||||||||
Energy | 4,449.7 | 436.6 | 783.9 | 101.8 | 3,665.8 | 538.4 | ||||||||||||||||||||||||||||||||
Financial Institutions | 3,793.0 | 490.1 | 163.1 | 1.7 | 3,629.9 | 491.8 | ||||||||||||||||||||||||||||||||
Mortgage/Asset-Backed | 1,467.8 | 133.1 | 40.6 | 0.2 | 1,427.2 | 133.3 | ||||||||||||||||||||||||||||||||
Sovereigns | 1,068.8 | 248.1 | 10.9 | 1.4 | 1,057.9 | 249.5 | ||||||||||||||||||||||||||||||||
Technology | 1,890.2 | 202.0 | 115.0 | 9.7 | 1,775.2 | 211.7 | ||||||||||||||||||||||||||||||||
Transportation | 2,404.1 | 321.0 | 250.4 | 28.0 | 2,153.7 | 349.0 | ||||||||||||||||||||||||||||||||
U.S. Government Agencies and Municipalities | 4,849.2 | 807.8 | 108.8 | 4.1 | 4,740.4 | 811.9 | ||||||||||||||||||||||||||||||||
Public Utilities | 7,923.0 | 1,591.6 | 89.5 | 7.2 | 7,833.5 | 1,598.8 | ||||||||||||||||||||||||||||||||
Total | $ | 48,233.4 | $ | 7,422.8 | $ | 2,837.0 | $ | 231.4 | $ | 45,396.4 | $ | 7,654.2 |
(in millions of dollars) | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | |||||||||||||||||||||||||
Fair Value < 100% >= 70% of Amortized Cost | |||||||||||||||||||||||||||||
<= 90 days | $ | 18.0 | $ | 499.4 | $ | 13.8 | $ | 4.3 | $ | 3.8 | |||||||||||||||||||
> 90 <= 180 days | 45.7 | 0.1 | 2.0 | 1.9 | — | ||||||||||||||||||||||||
> 180 <= 270 days | 1.9 | — | — | — | 0.6 | ||||||||||||||||||||||||
> 270 days <= 1 year | 0.1 | 0.3 | — | 3.1 | 2.4 | ||||||||||||||||||||||||
> 1 year <= 2 years | 2.4 | 1.8 | 3.8 | 6.6 | 30.6 | ||||||||||||||||||||||||
> 2 years <= 3 years | — | 3.2 | 2.8 | 1.5 | 8.2 | ||||||||||||||||||||||||
> 3 years | — | — | 0.8 | — | 0.2 | ||||||||||||||||||||||||
Sub-total | 68.1 | 504.8 | 23.2 | 17.4 | 45.8 | ||||||||||||||||||||||||
Fair Value < 70% >= 40% of Amortized Cost | |||||||||||||||||||||||||||||
<= 90 days | — | 145.2 | — | — | — | ||||||||||||||||||||||||
> 90 <= 180 days | — | — | 0.3 | — | — | ||||||||||||||||||||||||
> 180 <= 270 days | — | 0.2 | — | — | 1.6 | ||||||||||||||||||||||||
> 270 days <= 1 year | — | — | — | 0.3 | — | ||||||||||||||||||||||||
> 1 year <= 2 years | — | — | — | — | 11.1 | ||||||||||||||||||||||||
Sub-total | — | 145.4 | 0.3 | 0.3 | 12.7 | ||||||||||||||||||||||||
Total | $ | 68.1 | $ | 650.2 | $ | 23.5 | $ | 17.7 | $ | 58.5 |
(in millions of dollars) | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
June 30 | March 31 | December 31 | September 30 | June 30 | |||||||||||||||||||||||||
Fair Value < 100% >= 70% of Amortized Cost | |||||||||||||||||||||||||||||
<= 90 days | $ | 16.1 | $ | 167.0 | $ | 0.5 | $ | 5.1 | $ | 6.1 | |||||||||||||||||||
> 90 <= 180 days | 77.1 | 0.7 | 3.1 | 10.3 | 1.3 | ||||||||||||||||||||||||
> 180 <= 270 days | 0.4 | 0.8 | 5.1 | 1.5 | 1.4 | ||||||||||||||||||||||||
> 270 days <= 1 year | 5.5 | 4.4 | 0.9 | 0.9 | 6.3 | ||||||||||||||||||||||||
> 1 year <= 2 years | 8.1 | 0.8 | 17.5 | 31.0 | 26.3 | ||||||||||||||||||||||||
> 2 years <= 3 years | 11.7 | 12.1 | 1.3 | 0.3 | — | ||||||||||||||||||||||||
> 3 years | 7.9 | 11.5 | 13.7 | 5.2 | 22.6 | ||||||||||||||||||||||||
Sub-total | 126.8 | 197.3 | 42.1 | 54.3 | 64.0 | ||||||||||||||||||||||||
Fair Value < 70% >= 40% of Amortized Cost | |||||||||||||||||||||||||||||
<= 90 days | — | 114.6 | — | — | — | ||||||||||||||||||||||||
> 90 <= 180 days | 5.2 | 2.7 | — | 12.0 | — | ||||||||||||||||||||||||
> 180 <= 270 days | 3.8 | 12.8 | 15.1 | — | — | ||||||||||||||||||||||||
> 270 days <= 1 year | — | 12.5 | — | — | — | ||||||||||||||||||||||||
> 1 year <= 2 years | 13.6 | 5.7 | — | — | — | ||||||||||||||||||||||||
> 2 years <= 3 years | — | 1.2 | — | 12.7 | 11.7 | ||||||||||||||||||||||||
> 3 years | 13.9 | 10.6 | 10.5 | 21.6 | 14.2 | ||||||||||||||||||||||||
Sub-total | 36.5 | 160.1 | 25.6 | 46.3 | 25.9 | ||||||||||||||||||||||||
Fair Value < 40% of Amortized Cost | |||||||||||||||||||||||||||||
<= 90 days | — | 9.6 | — | — | — | ||||||||||||||||||||||||
> 270 days <= 1 year | — | 15.7 | — | — | — | ||||||||||||||||||||||||
> 1 year <= 2 years | — | 8.5 | — | — | — | ||||||||||||||||||||||||
> 2 years <= 3 years | — | 9.0 | — | — | — | ||||||||||||||||||||||||
> 3 years | — | 16.8 | — | — | — | ||||||||||||||||||||||||
Sub-total | — | 59.6 | — | — | — | ||||||||||||||||||||||||
Total | $ | 163.3 | $ | 417.0 | $ | 67.7 | $ | 100.6 | $ | 89.9 |
(in millions of dollars) | ||||||||||||||||||||||||||||||||||||||
Classification | Fair Value | Net Unrealized Gain | Fair Value of Fixed Maturity Securities with Gross Unrealized Loss | Gross Unrealized Loss | Fair Value of Fixed Maturity Securities with Gross Unrealized Gain | Gross Unrealized Gain | ||||||||||||||||||||||||||||||||
Midstream | $ | 2,154.8 | $ | 207.8 | $ | 284.9 | $ | 24.6 | $ | 1,869.9 | $ | 232.4 | ||||||||||||||||||||||||||
Oil and Gas-Independent | 1,165.5 | 51.0 | 449.6 | 67.5 | 715.9 | 118.5 | ||||||||||||||||||||||||||||||||
Oil Field | 83.1 | 2.4 | 25.5 | 4.6 | 57.6 | 7.0 | ||||||||||||||||||||||||||||||||
Oil-Integrated | 741.9 | 137.6 | 23.9 | 5.1 | 718.0 | 142.7 | ||||||||||||||||||||||||||||||||
Oil-Refining | 268.5 | 36.9 | — | — | 268.5 | 36.9 | ||||||||||||||||||||||||||||||||
Other Energy | 35.9 | 0.9 | — | — | 35.9 | 0.9 | ||||||||||||||||||||||||||||||||
Total | $ | 4,449.7 | $ | 436.6 | $ | 783.9 | $ | 101.8 | $ | 3,665.8 | $ | 538.4 |
(in millions of dollars) | ||||||||||||||
Six Months Ended June 30 | ||||||||||||||
2020 | 2019 | |||||||||||||
Net Cash Provided by Operating Activities | $ | 852.4 | $ | 942.7 | ||||||||||
Net Cash Used by Investing Activities | (1,090.7) | (1,007.2) | ||||||||||||
Net Cash Provided by Financing Activities | 319.8 | 31.3 | ||||||||||||
Net Change in Cash and Bank Deposits | $ | 81.5 | $ | (33.2) |
AM Best | Fitch | Moody's | S&P | ||||||||||||||||||||
Outlook | Negative | Negative | Negative | Stable | |||||||||||||||||||
Issuer Credit Ratings | bbb | BBB- | Baa3 | BBB | |||||||||||||||||||
Financial Strength Ratings | |||||||||||||||||||||||
Provident Life and Accident Insurance Company | A | A- | A3 | A | |||||||||||||||||||
Provident Life and Casualty Insurance Company | A | A- | NR | NR | |||||||||||||||||||
Unum Life Insurance Company of America | A | A- | A3 | A | |||||||||||||||||||
First Unum Life Insurance Company | A | A- | A3 | A | |||||||||||||||||||
Colonial Life & Accident Insurance Company | A | A- | A3 | A | |||||||||||||||||||
The Paul Revere Life Insurance Company | A | A- | A3 | A | |||||||||||||||||||
Starmount Life Insurance Company | A- | NR | NR | NR | |||||||||||||||||||
Unum Insurance Company | A- | A- | A3 | NR | |||||||||||||||||||
Unum Limited | NR | NR | NR | A- |
Index to Exhibits | ||||||||
(4.1) | ||||||||
(10.1) | ||||||||
(31.1) | ||||||||
(31.2) | ||||||||
(32.1) | ||||||||
(32.2) | ||||||||
(101) | The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. | |||||||
(104) | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | |||||||
Unum Group | ||||||||
(Registrant) | ||||||||
Date: July 29, 2020 | By: | /s/ Steven A. Zabel | ||||||
Steven A. Zabel | ||||||||
Executive Vice President, Chief Financial Officer | ||||||||
Date: July 29, 2020 | By: | /s/ Cherie A. Pashley | ||||||
Cherie A. Pashley | ||||||||
Senior Vice President, Chief Accounting Officer |
Date: July 29, 2020 | /s/ Richard P. McKenney | ||||
Richard P. McKenney | |||||
President and Chief Executive Officer |
Date: July 29, 2020 | /s/ Steven A. Zabel | ||||
Steven A. Zabel | |||||
Executive Vice President, Chief Financial Officer |
Date: July 29, 2020 | /s/ Richard P. McKenney | ||||
Richard P. McKenney | |||||
President and Chief Executive Officer |
Date: July 29, 2020 | /s/ Steven A. Zabel | ||||
Steven A. Zabel | |||||
Executive Vice President, Chief Financial Officer |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Investments | ||
Debt Securities, Available-for-sale, Allowance for credit losses for Fixed Maturity Securities | $ 29.8 | $ 0.0 |
Amortized Cost of Fixed Maturity Securities | 40,840.4 | 41,079.3 |
Allowance for credit losses for Mortgage Loans | 13.2 | 0.0 |
Other Assets [Abstract] | ||
Accounts Receivable, after Allowance for Credit Loss | 47.5 | 10.3 |
Reinsurance Recoverable, Allowance for Credit Loss | $ 1.8 | $ 0.0 |
Stockholders' Equity | ||
Common Stock, Par Value (in dollars per share) | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized | 725,000,000 | 725,000,000 |
Common Stock, Shares Issued | 306,361,248 | 305,813,326 |
Treasury Stock, Shares at Cost | 102,876,514 | 102,876,514 |
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Revenue | ||||
Premium Income | $ 2,368.7 | $ 2,343.1 | $ 4,740.1 | $ 4,681.8 |
Net Investment Income | 569.0 | 624.9 | 1,154.0 | 1,219.6 |
Net Realized Investment Gain (Loss) | 33.8 | (7.3) | (110.2) | (6.2) |
Other Income | 49.7 | 56.0 | 108.4 | 109.1 |
Total Revenue | 3,021.2 | 3,016.7 | 5,892.3 | 6,004.3 |
Benefits and Expenses | ||||
Benefits and Change in Reserves for Future Benefits | 1,882.8 | 1,902.6 | 3,737.6 | 3,743.4 |
Commissions | 273.0 | 284.4 | 552.2 | 574.5 |
Interest and Debt Expense | 47.5 | 42.6 | 93.2 | 84.7 |
Deferred Policy Acquisition Cost, Capitalization | (149.9) | (170.3) | (311.9) | (344.0) |
Amortization of Deferred Acquisition Costs | 140.7 | 151.6 | 316.9 | 322.2 |
Compensation Expense | 233.2 | 223.9 | 472.7 | 450.4 |
Other Expenses | 256.3 | 229.9 | 491.9 | 467.8 |
Total Benefits and Expenses | 2,683.6 | 2,664.7 | 5,352.6 | 5,299.0 |
Income Before Income Tax | 337.6 | 352.0 | 539.7 | 705.3 |
Income Tax | ||||
Current | 70.6 | 74.0 | 128.2 | 128.3 |
Deferred | 1.5 | (3.2) | (15.0) | 14.9 |
Total Income Tax | 72.1 | 70.8 | 113.2 | 143.2 |
Net Income | $ 265.5 | $ 281.2 | $ 426.5 | $ 562.1 |
Net Income Per Common Share | ||||
Basic | $ 1.30 | $ 1.33 | $ 2.10 | $ 2.64 |
Assuming Dilution | $ 1.30 | $ 1.33 | $ 2.10 | $ 2.64 |
STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||||
Change in Net Unrealized Gain on Securities Before Adjustment, Tax Expense | $ 653.9 | $ 279.3 | $ 217.4 | $ 606.1 |
Change in Adjustment to Deferred Acquisition Costs and Reserves for Future Policy and Contract Benefits, Net of Reinsurance, Tax Benefit | (510.6) | (201.2) | 129.8 | (446.7) |
Change in Net Gain on Hedges, Tax Benefit | 7.1 | 2.8 | 0.5 | 8.6 |
Change in Foreign Currency Translation Adjustment, Tax Expense | (2.9) | (0.1) | (0.8) | (0.4) |
Change in Unrecognized Pension and Postretirement Benefit Costs, Tax Expense | $ 1.1 | $ 1.3 | $ 3.0 | $ 2.0 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Common Stock, Dividends, Per Share, Cash Paid | $ 0.285 | $ 0.260 | $ 0.570 | $ 0.520 |
Basis of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements of Unum Group and its subsidiaries (the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes included in our annual report on Form 10-K for the year ended December 31, 2019. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Interim results are not necessarily indicative of full year performance, particularly when considering the risks and uncertainties associated with the coronavirus disease 2019 (COVID-19) and the impacts it may have on our financial position, results of operations, liquidity and capital resources, and overall business operations.
|
Accounting Developments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounting Developments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Developments | Accounting Updates Adopted in 2020:
Summary of Financial Statement Impacts of Accounting Updates Adopted in 2020:
In accordance with the January 1, 2020 implementation of updates to Accounting Standards Codification (ASC) 326 "Financial Instruments - Credit Losses", we have added the following discussion regarding our accounting policies on the allowance for current expected credit losses to our significant accounting policies. Allowance for Current Expected Credit Losses: We establish an allowance for current expected credit losses on certain of our financial assets, which is deducted from the amortized cost of applicable investments and the gross amount of applicable receivables, to present the net amount we expect to collect on these financial assets. The allowance is forward-looking in nature and is calculated based on considerations regarding both historical events and future expectations. Periodic changes in the allowance are recorded through earnings. The allowance on our premiums receivable is primarily determined using an aging analysis as well as historical lapse and delinquency rates by line of business, adjusted for key factors that may impact our future expectation of premium receipts such as changes in customer demographics, business practices, economic conditions, and product offerings. We write off premiums receivable amounts when determined to be uncollectible, which is based on various factors, including the aging of premiums receivable past the due date and specific communication with customers. At January 1, 2020 and June 30, 2020, the allowance for expected credit losses on premium receivables was $23.8 million and $47.5 million, respectively, on gross premium receivables of $543.0 million and $627.0 million, respectively. The allowance at January 1, 2020 includes amounts that were previously established at December 31, 2019. The increase in the allowance during the three and six months ended June 30, 2020, was driven primarily by the uncertainty of collectability resulting from the impacts of COVID-19. The primary factors considered in establishing the additional allowance were the recent increase in unemployment levels, the expected reversal of state-level requirements regarding billing and administration accommodations, and the general uncertainty around the financial condition of some of our customers. There was no significant write-off or recovery activity for the three and six months ended June 30, 2020. The allowance for our reinsurance recoverable balance is determined using a probability of default approach which incorporates key inputs and assumptions regarding historical insurer liquidation rates, counterparty credit ratings, and collateral received. Liquidation rates are derived from rating agency studies covering domestic insurers and are based on historical liquidation trends according to their respective credit ratings. When calculating our allowance, we apply these liquidation rates to the net amount of our credit exposure, which considers collateral arrangements such as letters of credit. We evaluate the factors used to determine our allowance on a quarterly basis to consider material changes in our assumptions and make adjustments accordingly. At both January 1, 2020 and June 30, 2020, the allowance for expected credit losses on reinsurance recoverables was $1.8 million. See Note 4 for discussion on the allowance for current expected credit losses regarding our commercial mortgage loans and the allowance for credit losses for our available-for-sale fixed maturity securities. Summary of Financial Statement Impacts of Accounting Updates adopted in 2019: Effective January 1, 2019, we adopted an update under ASC 842 that changed the accounting and disclosure requirements for leases, requiring lessees to report most leases on their balance sheets, regardless of whether the lease is classified as a finance lease or an operating lease. For lessees, the initial lease liability is equal to the present value of lease payments, and a corresponding asset, adjusted for certain items, is also recorded. Expense recognition for lessees remained similar to previous accounting requirements for capital and operating leases. For lessors, the guidance modified the classification criteria and the accounting for sales-type and direct financing leases. The guidance was applied using a modified retrospective approach through a cumulative-effect reduction to retained earnings of $3.4 million at the beginning of the period of adoption. In addition, the package of practical expedients available to leases that commenced prior to the date of adoption was applied. Accounting Updates Outstanding:
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Accounting Updates Outstanding | Accounting Updates Outstanding:
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Significant Accounting Policies | Allowance for Current Expected Credit Losses: We establish an allowance for current expected credit losses on certain of our financial assets, which is deducted from the amortized cost of applicable investments and the gross amount of applicable receivables, to present the net amount we expect to collect on these financial assets. The allowance is forward-looking in nature and is calculated based on considerations regarding both historical events and future expectations. Periodic changes in the allowance are recorded through earnings. The allowance on our premiums receivable is primarily determined using an aging analysis as well as historical lapse and delinquency rates by line of business, adjusted for key factors that may impact our future expectation of premium receipts such as changes in customer demographics, business practices, economic conditions, and product offerings. We write off premiums receivable amounts when determined to be uncollectible, which is based on various factors, including the aging of premiums receivable past the due date and specific communication with customers. At January 1, 2020 and June 30, 2020, the allowance for expected credit losses on premium receivables was $23.8 million and $47.5 million, respectively, on gross premium receivables of $543.0 million and $627.0 million, respectively. The allowance at January 1, 2020 includes amounts that were previously established at December 31, 2019. The increase in the allowance during the three and six months ended June 30, 2020, was driven primarily by the uncertainty of collectability resulting from the impacts of COVID-19. The primary factors considered in establishing the additional allowance were the recent increase in unemployment levels, the expected reversal of state-level requirements regarding billing and administration accommodations, and the general uncertainty around the financial condition of some of our customers. There was no significant write-off or recovery activity for the three and six months ended June 30, 2020. The allowance for our reinsurance recoverable balance is determined using a probability of default approach which incorporates key inputs and assumptions regarding historical insurer liquidation rates, counterparty credit ratings, and collateral received. Liquidation rates are derived from rating agency studies covering domestic insurers and are based on historical liquidation trends according to their respective credit ratings. When calculating our allowance, we apply these liquidation rates to the net amount of our credit exposure, which considers collateral arrangements such as letters of credit. We evaluate the factors used to determine our allowance on a quarterly basis to consider material changes in our assumptions and make adjustments accordingly. At both January 1, 2020 and June 30, 2020, the allowance for expected credit losses on reinsurance recoverables was $1.8 million.See Note 4 for discussion on the allowance for current expected credit losses regarding our commercial mortgage loans and the allowance for credit losses for our available-for-sale fixed maturity securities.
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Fair Values of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Financial Instruments | Fair Value Measurements for Financial Instruments Carried at Fair Value We report fixed maturity securities, which are classified as available-for-sale securities, derivative financial instruments, and unrestricted equity securities at fair value in our consolidated balance sheets. We report our investments in private equity partnerships at our share of the partnerships' net asset value per share or its equivalent (NAV) as a practical expedient for fair value. The degree of judgment utilized in measuring the fair value of financial instruments generally correlates to the level of pricing observability. Financial instruments with readily available active quoted prices or for which fair value can be measured from actively quoted prices in active markets generally have more pricing observability and less judgment utilized in measuring fair value. An active market for a financial instrument is a market in which transactions for an asset or a similar asset occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value and should be used to measure fair value whenever available. Conversely, financial instruments rarely traded or not quoted have less observability and are measured at fair value using valuation techniques that require more judgment. Pricing observability is generally impacted by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction, and overall market conditions. We classify financial instruments in accordance with a fair value hierarchy consisting of three levels based on the observability of valuation inputs: •Level 1 - the highest category of the fair value hierarchy classification wherein inputs are unadjusted and represent quoted prices in active markets for identical assets or liabilities at the measurement date. •Level 2 - valued using inputs (other than prices included in Level 1) that are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument's anticipated life. •Level 3 - the lowest category of the fair value hierarchy and reflects the judgment of management regarding what market participants would use in pricing assets or liabilities at the measurement date. Financial assets and liabilities categorized as Level 3 are generally those that are valued using unobservable inputs to extrapolate an estimated fair value. Valuation Methodologies of Financial Instruments Measured at Fair Value Valuation techniques used for assets and liabilities accounted for at fair value are generally categorized into three types. The market approach uses prices and other relevant information from market transactions involving identical or comparable assets or liabilities. The income approach converts future amounts, such as cash flows or earnings, to a single present amount, or a discounted amount. The cost approach is based upon the amount that currently would be required to replace the service capacity of an asset, or the current replacement cost. We use valuation techniques that are appropriate in the circumstances and for which sufficient data are available that can be obtained without undue cost and effort. In some cases, a single valuation technique will be appropriate (for example, when valuing an asset or liability using quoted prices in an active market for identical assets or liabilities). In other cases, multiple valuation techniques will be appropriate. If we use multiple valuation techniques to measure fair value, we evaluate and weigh the results, as appropriate, considering the reasonableness of the range indicated by those results. A fair value measurement is the point within that range that is most representative of fair value in the circumstances. The selection of the valuation method(s) to apply considers the definition of an exit price and depends on the nature of the asset or liability being valued. For assets and liabilities accounted for at fair value, we generally use valuation techniques consistent with the market approach, and to a lesser extent, the income approach. We believe the market approach provides more observable data than the income approach, considering the type of investments we hold. Our fair value measurements could differ significantly based on the valuation technique and available inputs. When using a pricing service, we obtain the vendor's pricing documentation to ensure we understand their methodologies. We periodically review and approve the selection of our pricing vendors to ensure we are in agreement with their current methodologies. When markets are less active, brokers may rely more on models with inputs based on the information available only to the broker. Our internal investment management professionals, which include portfolio managers and analysts, monitor securities priced by brokers and evaluate their prices for reasonableness based on benchmarking to available primary and secondary market information. In weighing a broker quote as an input to fair value, we place less reliance on quotes that do not reflect the result of market transactions. We also consider the nature of the quote, particularly whether it is a bid or market quote. If prices in an inactive market do not reflect current prices for the same or similar assets, adjustments may be necessary to arrive at fair value. When relevant market data is unavailable, which may be the case during periods of market uncertainty, the income approach can, in suitable circumstances, provide a more appropriate fair value. During 2020, we have applied valuation approaches and techniques on a consistent basis to similar assets and liabilities and consistent with those approaches and techniques used at year end 2019. Fixed Maturity and Equity Securities We use observable and unobservable inputs in measuring the fair value of our fixed maturity and equity securities. For securities categorized as Level 1, fair values equal active Trade Reporting and Compliance Engine (TRACE) pricing or unadjusted broker market maker prices. For securities categorized as Level 2 or Level 3, inputs that may be used in valuing each class of securities at any given time period are disclosed below. Actual inputs used to determine fair values will vary for each reporting period depending on the availability of inputs which may, at times, be affected by the lack of market liquidity.
The management of our investment portfolio includes establishing pricing policy and reviewing the reasonableness of sources and inputs used in developing pricing. We review all prices that vary between multiple pricing vendors by a threshold that is outside a normal market range for the asset type. In the event we receive a vendor's market price that does not appear reasonable based on our market analysis, we may challenge the price and request further information about the assumptions and methodologies used by the vendor to price the security. We may change the vendor price based on a better data source such as an actual trade. We also review all prices that did not change from the prior month to ensure that these prices are within our expectations. The overall valuation process for determining fair values may include adjustments to valuations obtained from our pricing sources when they do not represent a valid exit price. These adjustments may be made when, in our judgment and considering our knowledge of the financial conditions and industry in which the issuer operates, certain features of the financial instrument require that an adjustment be made to the value originally obtained from our pricing sources. These features may include the complexity of the financial instrument, the market in which the financial instrument is traded, counterparty credit risk, credit structure, concentration, or liquidity. Additionally, an adjustment to the price derived from a model typically reflects our judgment of the inputs that other participants in the market for the financial instrument being measured at fair value would consider in pricing that same financial instrument. In the event an asset is sold, we test the validity of the fair value determined by our valuation techniques by comparing the selling price to the fair value determined for the asset in the immediately preceding month end reporting period. Certain of our investments do not have readily determinable market prices and/or observable inputs or may at times be affected by the lack of market liquidity. For these securities, we use internally prepared valuations, including valuations based on estimates of future profitability, to estimate the fair value. Additionally, we may obtain prices from independent third-party brokers to aid in establishing valuations for certain of these securities. Key assumptions used by us to determine fair value for these securities include risk free interest rates, risk premiums, performance of underlying collateral (if any), and other factors involving significant assumptions which may or may not reflect those of an active market. The parameters and inputs used to validate a price on a security may be adjusted for assumptions about risk and current market conditions on a quarter to quarter basis, as certain features may be more significant drivers of valuation at the time of pricing. Changes to inputs in valuations are not changes to valuation methodologies; rather, the inputs are modified to reflect direct or indirect impacts on asset classes from changes in market conditions. At June 30, 2020, approximately 18.1 percent of our fixed maturity securities were valued using active trades from TRACE pricing or broker market maker prices for which there was current market activity in that specific security (comparable to receiving one binding quote). The prices obtained were not adjusted, and the assets were classified as Level 1. The remaining 81.9 percent of our fixed maturity securities were valued based on non-binding quotes or other observable and unobservable inputs, as discussed below: •68.5 percent of our fixed maturity securities were valued based on prices from pricing services that generally use observable inputs such as prices for securities or comparable securities in active markets in their valuation techniques. These assets were classified as Level 2. •9.1 percent of our fixed maturity securities were valued based on one or more non-binding broker quotes, if validated by observable market data. When only one price is available, it is used if observable inputs and analysis confirms that it is appropriate. These assets, for which we were able to validate the price using other observable market data, were classified as Level 2. •4.3 percent of our fixed maturity securities were valued based on prices of comparable securities, internal models, or pricing services or other non-binding quotes with no other observable market data. These assets were classified as either Level 2 or Level 3, with the categorization dependent on whether there was other observable market data. Derivatives Fair values for derivatives other than embedded derivatives in modified coinsurance arrangements are based on market quotes or pricing models and represent the net amount of cash we would have paid or received if the contracts had been settled or closed as of the last day of the period. We analyze credit default swap spreads relative to the average credit spread embedded within the LIBOR-setting syndicate in determining the effect of credit risk on our derivatives' fair values. If net counterparty credit risk for a derivative asset is determined to be material and is not adequately reflected in the LIBOR-based fair value obtained from our pricing sources, we adjust the valuations obtained from our pricing sources. For purposes of valuing net counterparty risk, we measure the fair value of a group of financial assets and financial liabilities on the basis of the price that would be received to sell a net long position or transfer a net short position for a particular risk exposure in an orderly transaction between market participants at the measurement date under current market conditions. In regard to our own credit risk component, we adjust the valuation of derivative liabilities wherein the counterparty is exposed to our credit risk when the LIBOR-based valuation of our derivatives obtained from pricing sources does not effectively include an adequate credit component for our own credit risk. Fair values for our embedded derivative in a modified coinsurance arrangement are estimated using internal pricing models and represent the hypothetical value of the duration mismatch of assets and liabilities, interest rate risk, and third party credit risk embedded in the modified coinsurance arrangement. We consider transactions in inactive markets to be less representative of fair value. We use all available observable inputs when measuring fair value, but when significant unobservable inputs are used, we classify these assets or liabilities as Level 3. Private Equity Partnerships Our private equity partnerships represent funds that are primarily invested in private credit, private equity, and real assets, as described below. Distributions received from the funds arise from income generated by the underlying investments as well as the liquidation of the underlying investments. There is generally not a public market for these investments. The following tables present additional information about our private equity partnerships, including commitments for additional investments which may or may not be funded:
(a)Private Credit - The limited partnerships described in this category employ various investment strategies, generally providing direct lending or other forms of debt financing including first-lien, second-lien, mezzanine, and subordinated loans. The limited partnerships have credit exposure to corporates, physical assets, and/or financial assets within a variety of industries (including manufacturing, healthcare, energy, business services, technology, materials, and retail) in North America and, to a lesser extent, outside of North America. As of June 30, 2020, the estimated remaining life of the investments that do not allow for redemptions is approximately 39 percent in the next 3 years, 22 percent during the period from 3 to 5 years, 37 percent during the period from 5 to 10 years, and 2 percent during the period from 10 to 15 years. (b)Private Equity - The limited partnerships described in this category employ various strategies generally investing in controlling or minority control equity positions directly in companies and/or assets across various industries (including manufacturing, healthcare, energy, business services, technology, materials, and retail), primarily in private markets within North America and, to a lesser extent, outside of North America. As of June 30, 2020, the estimated remaining life of the investments that do not allow for redemptions is approximately 23 percent in the next 3 years, 33 percent during the period from 3 to 5 years, 41 percent during the period from 5 to 10 years, and 3 percent during the period from 10 to 15 years. (c)Real Assets - The limited partnerships described in this category employ various strategies, which include investing in the equity and/or debt financing of physical assets, including infrastructure (energy, power, water/wastewater, communications), transportation (including airports, ports, toll roads, aircraft, railcars) and real estate in North America, Europe, South America, and Asia. As of June 30, 2020, the estimated remaining life of the investments that do not allow for redemptions is approximately 14 percent in the next 3 years, 25 percent during period from 3 to 5 years and 61 percent during the period from 5 to 10 years. We record changes in our share of net asset value of the partnerships in net investment income. We receive financial information related to our investments in partnerships generally on a one-quarter lag in accordance with our accounting policy. We estimate that we will recognize gains in the third quarter of 2020 that will partially offset the losses recorded in the second quarter of 2020 as we receive financial statements from the partnerships for the second quarter of 2020 that will reflect the improvement in market conditions. The following tables present information about financial instruments measured at fair value on a recurring basis by fair value level, based on the observability of the inputs used:
Changes in assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are as follows:
(1) Other Comprehensive Income (Loss)
Realized and unrealized investment gains and losses presented in the preceding tables represent gains and losses only for the time during which the applicable financial instruments were classified as Level 3. The transfers between levels resulted primarily from a change in observability of three inputs used to determine fair values of the securities transferred: (1) transactional data for new issuance and secondary trades, (2) broker/dealer quotes and pricing, primarily related to changes in the level of activity in the market and whether the market was considered orderly, and (3) comparable bond metrics from which to perform an analysis. For fair value measurements of financial instruments that were transferred either into or out of Level 3, we reflect the transfers using the fair value at the beginning of the period. We believe this allows for greater transparency, as all changes in fair value that arise during the reporting period of the transfer are disclosed as a component of our Level 3 reconciliation. Gains (losses) which are included in earnings and are attributable to the change in fair value of assets or liabilities valued using significant unobservable inputs and still held at each period end were $(0.8) million and $4.7 million for the three and six months ended June 30, 2019, respectively, and relate entirely to the change in fair value of an embedded derivative in a modified coinsurance arrangement and are reported as a component of realized investment gains and losses. The table below provides quantitative information regarding the significant unobservable inputs used in Level 3 fair value measurements derived from internal models. Unobservable inputs for fixed maturity securities are weighted by the fair value of the securities. Certain securities classified as Level 3 are excluded from the table below due to limitations in our ability to obtain the underlying inputs used by external pricing sources.
(a)Represents basis point adjustments to apply a discount due to the illiquidity of an investment (b)Represents basis point adjustments for credit-specific factors (c)Represents a decision to price based on par value, cost, or owner's equity when limited data is available (d)Represents various actuarial assumptions required to derive the liability cash flows. Fair value of embedded derivative is most often driven by the change in the weighted average credit spread to the swap curve for the assets backing the hypothetical loan. (e)Represents basis point adjustments based on issue/issuer size relative to the benchmark (f)Represents basis point adjustments for changes in benchmark spreads associated with various industry sectors Isolated increases in unobservable inputs other than market convention will result in a lower fair value measurement, whereas isolated decreases will result in a higher fair value measurement. The unobservable input for market convention is not sensitive to input movements. The projected liability cash flows used in the fair value measurement of our Level 3 embedded derivative are based on expected claim payments. If claim payments increase, the projected liability cash flows will increase, resulting in a decrease in the fair value of the embedded derivative. Decreases in projected liability cash flows will result in an increase in the fair value of the embedded derivative. Fair Value Measurements for Financial Instruments Not Carried at Fair Value The methods and assumptions used to estimate fair values of financial instruments not carried at fair value are discussed as follows: Mortgage Loans: Fair values are estimated using discounted cash flow analyses and interest rates currently being offered for similar loans to borrowers with similar credit ratings and maturities. Loans with similar characteristics are aggregated for purposes of the calculations. Policy Loans: Fair values for policy loans, net of reinsurance ceded, are estimated using discounted cash flow analyses and interest rates currently being offered to policyholders with similar policies. Carrying amounts for ceded policy loans, which equal $3,684.0 million and $3,490.6 million as of June 30, 2020 and December 31, 2019, respectively, approximate fair value and are reported on a gross basis in our consolidated balance sheets. A change in interest rates for ceded policy loans will not impact our financial position because the benefits and risks are fully ceded to reinsuring counterparties. Miscellaneous Long-term Investments: Carrying amounts for tax credit partnerships equal the unamortized balance of our contractual commitments and approximate fair value. Our shares of FHLB common stock are carried at cost, which approximates fair value. Long-term Debt: Fair values for long-term debt are obtained from independent pricing services or discounted cash flow analyses based on current incremental borrowing rates for similar types of borrowing arrangements. Federal Home Loan Bank (FHLB) Funding Agreements: Funding agreements with the FHLB represent cash advances used for the purpose of investing in fixed maturity securities. Carrying amounts approximate fair value. Unfunded Commitments to Investment Partnerships: Unfunded equity commitments represent amounts that we have committed to fund certain investment partnerships. These commitments are legally binding, subject to the partnerships meeting specified conditions. Carrying amounts of these financial instruments approximate fair value. The following table presents the carrying amounts and estimated fair values of our financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:
The carrying values of financial instruments such as short-term investments, cash and bank deposits, accounts and premiums receivable, accrued investment income, securities lending agreements, and short-term debt approximate fair value due to the short-term nature of the instruments. As such, these financial instruments are not included in the above chart. Fair values for insurance contracts other than investment contracts are not required to be disclosed. However, the fair values of liabilities under all insurance contracts are taken into consideration in our overall management of interest rate risk, which seeks to minimize exposure to changing interest rates through the matching of investment maturities with amounts due under insurance contracts.
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Investments | Fixed Maturity Securities At June 30, 2020 and December 31, 2019, 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:
(1) Allowance for Credit Losses The following charts indicate the length of time our fixed maturity securities have been in a gross unrealized loss position.
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.
The following chart depicts an analysis of our fixed maturity security portfolio between investment-grade and below-investment-grade categories as of June 30, 2020:
The unrealized losses on investment-grade fixed maturity securities principally relate to changes in interest rates or changes in market or sector credit spreads which occurred subsequent to the acquisition of the securities. Below-investment-grade fixed maturity securities are generally more likely to develop credit concerns than investment-grade securities. At June 30, 2020, the unrealized losses in our below-investment-grade fixed maturity securities were generally due to credit spreads in certain industries or sectors and, to a lesser extent, credit concerns related to specific securities. For each specific security in an unrealized loss position, we believe that there are positive factors which mitigate credit concerns and that the securities for which we have not recorded a credit loss will recover in value. We have the ability and intend to continue to hold these securities to recovery of amortized cost and believe that no credit losses have occurred. As of June 30, 2020, we held 90 individual investment-grade fixed maturity securities and 88 individual below-investment-grade fixed maturity securities that were in an unrealized loss position, of which 5 investment-grade fixed maturity securities and 15 below-investment-grade fixed maturity securities had been in an unrealized loss position continuously for over one year. In determining when a decline in fair value below amortized cost of a fixed maturity security represents a credit loss, we evaluate the following factors: •Whether we expect to recover the entire amortized cost basis of the security •Whether we intend to sell the security or will be required to sell the security before the recovery of its amortized cost basis •Whether the security is current as to principal and interest payments •The significance of the decline in value •Current and future business prospects and trends of earnings •The valuation of the security's underlying collateral •Relevant industry conditions and trends relative to their historical cycles •Market conditions •Rating agency and governmental actions •Bid and offering prices and the level of trading activity •Adverse changes in estimated cash flows for securitized investments •Changes in fair value subsequent to the balance sheet date •Any other key measures for the related security While determining whether a credit loss exists is a judgmental area, we utilize a formal, well-defined, and disciplined process to monitor and evaluate our fixed income investment portfolio, supported by issuer specific research and documentation as of the end of each period. The process results in a thorough evaluation of problem investments and the recording of credit losses on a timely basis for investments determined to have a credit loss. We calculate the allowance for credit losses of fixed maturity securities based on the present value of our best estimate of cash flows expected to be collected, discounted using the effective interest rate implicit in the security at the date of acquisition. When estimating future cash flows, we analyze the strength of the issuer’s balance sheet, its debt obligations and near-term funding arrangements, cash flow and liquidity, the profitability of its core businesses, the availability of marketable assets which could be sold to increase liquidity, its industry fundamentals and regulatory environment, and its access to capital markets. As of June 30, 2020, with respect to the fixed maturity securities for which the allowance for credit losses was recognized, we do not intend to sell these securities, and it is not more likely than not that we will be required to sell these securities before recovery of our estimated value. The following table presents a rollforward of the allowance for credit losses on available-for-sale fixed maturity securities, all of which are classified as "all other corporate bonds" in the preceding tables, at June 30, 2020:
At June 30, 2020, we had commitments of $100.7 million to fund private placement fixed maturity securities, the amount of which may or may not be funded. Variable Interest Entities We invest in variable interests issued by variable interest entities. These investments include tax credit partnerships, private equity partnerships, and special purpose entities. For those variable interests that are not consolidated in our financial statements, we are not the primary beneficiary because we have neither the power to direct the activities that are most significant to economic performance nor the responsibility to absorb a majority of the expected losses. The determination of whether we are the primary beneficiary is performed at the time of our initial investment and at the date of each subsequent reporting period. As of June 30, 2020, the carrying amount of our variable interest entity investments that are not consolidated in our financial statements was $710.3 million, comprised of $43.7 million of tax credit partnerships and $666.6 million of private equity partnerships. At December 31, 2019, the carrying amount of our variable interest entity investments that are not consolidated in our financial statements was $675.1 million, comprised of $58.4 million of tax credit partnerships and $616.7 million of private equity partnerships. These variable interest entity investments are reported as other long-term investments in our consolidated balance sheets. 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:
Contractually, we are a limited partner in these tax credit partnerships, and our maximum exposure to loss is limited to the carrying value of our investment, which includes $1.8 million of unfunded unconditional commitments at June 30, 2020. See Note 3 for commitments to fund private equity partnerships. Mortgage Loans Our mortgage loan portfolio is well diversified by both geographic region and property type to reduce risk of concentration. All of our mortgage loans are collateralized by commercial real estate. When issuing a new loan, our general policy is not to exceed a loan-to-value ratio, or the ratio of the loan balance to the estimated fair value of the underlying collateral, of 75 percent. We update the loan-to-value ratios at least every three years for each loan, and properties undergo a general inspection at least every two years. Our general policy for newly issued loans is to have a debt service coverage ratio greater than 1.25 times on a normalized 25 year amortization period. We update our debt service coverage ratios annually. We adopted new accounting guidance that requires us to estimate an allowance for expected credit losses effective January 1, 2020. We carry our mortgage loans at amortized cost less the allowance for expected credit losses. The amortized cost of our mortgage loans was $2,447.6 million and $2,397.0 million at June 30, 2020 and December 31, 2019, respectively. The allowance for expected credit losses was $13.2 million at June 30, 2020. Interest income is accrued on the principal amount of the loan based on the loan's contractual interest rate. We report accrued interest income for our mortgage loans as accrued investment income on our consolidated balance sheets, and the amount of the accrued income was $8.9 million and $8.3 million at June 30, 2020 and December 31, 2019, respectively. The carrying amount of mortgage loans by property type and geographic region are presented below.
The risk in our mortgage loan portfolio is primarily related to vacancy rates. Events or developments, such as economic conditions that impact the ability of the borrowers to ensure occupancy of the property, may have a negative effect on our mortgage loan portfolio, particularly to the extent that our portfolio is concentrated in an affected region or property type. An increase in vacancies increases the probability of default, which would negatively affect our expected losses in our mortgage loan portfolio. We evaluate each of our mortgage loans individually for impairment and assign an internal credit quality rating based on a comprehensive rating system used to evaluate the credit risk of the loan. The factors we use to derive our internal credit ratings may include the following: •Loan-to-value ratio •Debt service coverage ratio based on current operating income •Property location, including regional economics, trends and demographics •Age, condition, and construction quality of property •Current and historical occupancy of property •Lease terms relative to market •Tenant size and financial strength •Borrower's financial strength •Borrower's equity in transaction •Additional collateral, if any Although all available and applicable factors are considered in our analysis, loan-to-value and debt service coverage ratios are the most critical factors in determining whether we will initially issue the loan and also in assigning values and determining impairment. We assign an overall rating to each loan using an internal rating scale of AA (highest quality) to B (lowest quality). We review and adjust, as needed, our internal credit quality ratings on an annual basis. This review process is performed more frequently for mortgage loans deemed to have a higher risk of delinquency. We estimate an allowance for credit losses that we expect to incur over the life of our mortgage loans using a probability of default method. For each loan, we estimate the probability that the loan will default before its maturity (probability of default) and the amount of the loss if the loan defaults (loss given default). These two factors result in an expected loss percentage that is applied to the amortized cost of each loan to determine the expected credit loss. As we are the original underwriter of the mortgage loans, the amortized cost generally equals the principal amount of the loan. We measure losses on defaults of our mortgage loans as the excess amortized cost of the mortgage loan over the fair value of the underlying collateral in the event that we foreclose on the loan or over the expected future cash flows of the loan if we retain the mortgage loan until payoff. We do not purchase mortgage loans with existing credit impairments. In estimating the probability of default, we consider historical experience, current market conditions, and reasonable and supportable forecasts about the future market conditions. We utilize our historical loan experience in combination with a large third-party industry database for a period of time that aligns with the average life of our loans based on the maturity dates of the loans and prepayment experience. Our model utilizes an industry database of the historical loss experience based on our actual portfolio characteristics such as loan-to-value, debt service coverage, collateral type, geography, and late payment history. In addition, because we actively manage our portfolio, we may extend the term of a loan in certain situations and will accordingly extend the maturity date in the estimate of probability of default. In estimating the loss given default, we primarily consider the type and value of collateral and secondarily the expected liquidation costs and time to recovery. The primary market factors that we consider in our forecast of future market conditions are gross domestic product, unemployment rates, interest rates, inflation, commercial real estate values, household formation, and retail sales. We also forecast certain loan specific factors such as growth in the fair value and net operating income of collateral by property type. We include our estimate of these factors over a two-year period and for the remainder of the loans’ estimated lives, adjusted for estimated prepayments. Past the two-year forecast period, we revert to the historical assumptions ratably by the end of the fifth year of the loan after which we utilize only historical assumptions. We utilize various scenarios to estimate our allowance for expected losses ranging from a base case scenario that reflects normal market conditions to a severe case scenario that reflects adverse market conditions. We will adjust our allowance each period to utilize the scenario or weighting of the scenarios that best reflects our view of current market conditions. The following tables present information about mortgage loans by the applicable credit quality indicators:
The following table presents the amortized cost of our mortgage loans by year of origination and credit quality indicators at June 30, 2020:
The following table presents a roll-forward of allowance for expected credit losses by loan-to-value ratio:
The increase in our estimate of expected losses during the second quarter and first six months of 2020 is primarily due to the expected impact of COVID-19. To reflect market conditions at June 30, 2020, we weighted our estimate to reflect a more adverse market as we expect the probability of default could increase as the effects of COVID-19 are experienced in the market. There were no troubled debt restructurings during the three and six months ended June 30, 2020 and 2019. At June 30, 2020 and December 31, 2019, we held no mortgage loans that were greater than 90 days past due regarding principal and/or interest payments. We had no loan foreclosures for the three and six months ended June 30, 2020 and 2019. For the three and six months ended June 30, 2020, we had no impaired mortgage loans. Our average investment in impaired mortgage loans was zero and $1.1 million for the three and six months ended June 30, 2019, respectively. We did not recognize any interest income on mortgage loans subsequent to impairment during the three and six months ended June 30, 2020 and 2019. At June 30, 2020, we had no commitments to fund commercial mortgage loans. Consistent with how we determine the estimate of current expected credit losses for our funded mortgage loans each period, we estimate expected credit losses for loans that have not been funded but we are committed to fund at the end of each period. At June 30, 2020, we had zero expected credit losses related to unfunded commitments on our consolidated balance sheets. Transfers of Financial Assets To manage our cash position more efficiently, we may enter into repurchase agreements with unaffiliated financial institutions. We generally use repurchase agreements as a means to finance the purchase of invested assets or for short-term general business purposes until projected cash flows become available from our operations or existing investments. Our repurchase agreements are typically outstanding for less than 30 days. We post collateral through our repurchase agreement transactions whereby the counterparty commits to purchase securities with the agreement to resell them to us at a later, specified date. The fair value of collateral posted is generally 102 percent of the cash received. Our investment policy also permits us to lend fixed maturity securities to unaffiliated financial institutions in short-term securities lending agreements. These agreements increase our investment income with minimal risk. Our securities lending policy requires that a minimum of 102 percent of the fair value of the securities loaned be maintained as collateral. We may receive cash and/or securities as collateral under these agreements. Cash received as collateral is typically reinvested in short-term investments. If securities are received as collateral, we are not permitted to sell or re-post them. We had no outstanding securities lending agreements at June 30, 2020. As of December 31, 2019, the carrying amount of fixed maturity securities loaned to third parties under our securities lending program was $176.4 million, for which we received collateral in the form of securities of $186.5 million. We had no outstanding repurchase agreements at June 30, 2020 or December 31, 2019. Certain of our U.S. insurance subsidiaries are members of regional FHLBs. Membership, which requires that we purchase a minimum amount of FHLB common stock on which we receive dividends, provides access to low-cost funding. Advances received from the FHLB are used for the purchase of short-term investments or fixed maturity securities. Additional common stock purchases may be required, based on the amount of funds we borrow from the FHLBs. The carrying value of common stock owned, collateral posted, and advances received are as follows:
Offsetting of Financial Instruments We enter into master netting agreements with each of our derivatives counterparties. These agreements provide for conditional rights of set-off upon the occurrence of an early termination event. An early termination event is considered a default, and it allows the non-defaulting party to offset its contracts in a loss position against any gain positions or payments due to the defaulting party. Under our agreements, default type events are defined as failure to pay or deliver as contractually agreed, misrepresentation, bankruptcy, or merger without assumption. See Note 5 for further discussion of collateral related to our derivative contracts. We have securities lending agreements with unaffiliated financial institutions that post collateral to us in return for the use of our fixed maturity securities. A right of set-off exists that allows us to keep and apply collateral received in the event of default by the counterparty. Default within a securities lending agreement would typically occur if the counterparty failed to return the securities borrowed from us as contractually agreed. In addition, if we default by not returning collateral received, the counterparty has a right of set-off against our securities or any other amounts due to us. 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.
Net Investment Income Net investment income reported in our consolidated statements of income is presented below. Certain prior period amounts have been reclassified to conform to the current period presentation.
1 The net unrealized gain (loss) recognized in net investment income for the three and six months ended June 30, 2020 related to perpetual preferred securities still held at June 30, 2020 was $10.0 million and $(7.9) million, respectively. The net unrealized gain (loss) recognized in net investment income for the three and six months ended June 30, 2019 related to perpetual preferred securities still held at June 30, 2019 was $(0.1) million and $3.0 million. 2 The net unrealized loss recognized in net investment income for the three and six months ended June 30, 2020 related to private equity partnerships still held at June 30, 2020 was $41.0 million and $35.6 million. The net unrealized gain recognized in net investment income for the three and six months ended June 30, 2019 related to private equity partnerships still held at June 30, 2019 was $6.3 million and $3.6 million. See Note 3 for further discussion of private equity partnerships. Realized Investment Gain and Loss Realized investment gains and losses are as follows:
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Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments Purpose of Derivatives We are exposed to certain risks relating to our ongoing business operations. The primary risks managed by using derivative instruments are interest rate risk, risk related to matching duration for our assets and liabilities, foreign currency risk, and credit risk. Historically, we have utilized current and forward interest rate swaps, current and forward currency swaps, forward benchmark interest rate locks, currency forward contracts, forward contracts on specific fixed income securities, and credit default swaps. Transactions hedging interest rate risk are primarily associated with our individual and group long-term care and individual and group disability products. All other product portfolios are periodically reviewed to determine if hedging strategies would be appropriate for risk management purposes. We do not use derivative financial instruments for speculative purposes. Derivatives designated as cash flow hedges and used to reduce our exposure to interest rate and duration risk are as follows: •Interest rate swaps are used to hedge interest rate risks and to improve the matching of assets and liabilities. An interest rate swap is an agreement in which we agree with other parties to exchange, at specified intervals, the difference between fixed rate and variable rate interest amounts. We use interest rate swaps to hedge the anticipated purchase of fixed maturity securities thereby protecting us from the potential adverse impact of declining interest rates on the associated policy reserves. We also use interest rate swaps to hedge the potential adverse impact of rising interest rates in anticipation of issuing fixed rate long-term debt. •Forward benchmark interest rate locks are used to minimize interest rate risk associated with the anticipated purchase or disposal of fixed maturity securities or debt. A forward benchmark interest rate lock is a derivative contract without an initial investment where we and the counterparty agree to purchase or sell a specific benchmark interest rate fixed maturity bond at a future date at a pre-determined price. Derivatives designated as fair value hedges and used to reduce our exposure to interest rate and duration risk are as follows: •Interest rate swaps are used to effectively convert certain of our fixed rate securities into floating rate securities which are used to fund our floating rate long-term debt. Under these swap agreements, we receive a variable rate of interest and pay a fixed rate of interest. Additionally, we use interest rate swaps to effectively convert certain fixed rate, long-term debt into floating rate long-term debt. Under these swap agreements, we receive a fixed rate of interest and pay a variable rate of interest. Derivatives designated as either cash flow or fair value hedges and used to reduce our exposure to foreign currency risk are as follows: •Foreign currency interest rate swaps are used to hedge the currency risk of certain foreign currency-denominated fixed maturity securities owned for portfolio diversification. Under these swap agreements, we agree to pay, at specified intervals, fixed rate foreign currency-denominated principal and interest payments in exchange for fixed rate payments in the functional currency of the operating segment. Derivatives not designated as hedging instruments and used to reduce our exposure to foreign currency risk and credit losses on securities owned are as follows: •Foreign currency interest rate swaps previously designated as hedges were used to hedge the currency risk of certain foreign currency-denominated fixed maturity securities owned for portfolio diversification. These derivatives were effective hedges prior to novation to a new counterparty. In conjunction with the novation, these derivatives were de-designated as hedges. We agree to pay, at specified intervals, fixed rate foreign currency-denominated principal and interest payments in exchange for fixed rate payments in the functional currency of the operating segment. We hold offsetting swaps wherein we agree to pay fixed rate principal and interest payments in the functional currency of the operating segment in exchange for fixed rate foreign currency-denominated payments. •Credit default swaps are used as economic hedges against credit risk but do not qualify for hedge accounting. A credit default swap is an agreement in which we agree with another party to pay, at specified intervals, a fixed-rate fee in exchange for insurance against a credit event on a specific investment. If a defined credit event occurs, our counterparty may either pay us a net cash settlement, or we may surrender the specific investment to them in exchange for cash equal to the full notional amount of the swap. Credit events typically include events such as bankruptcy, failure to pay, or certain types of debt restructuring. •Foreign currency forward contracts are used to minimize foreign currency risk. A foreign currency forward is a derivative without an initial investment where we and the counterparty agree to exchange a specific amount of currencies, at a specific exchange rate, on a specific date. We use these forward contracts to hedge the currency risk arising from foreign-currency denominated securities. Derivative Risks The basic types of risks associated with derivatives are market risk (that the value of the derivative will be adversely impacted by changes in the market, primarily the change in interest and exchange rates) and credit risk (that the counterparty will not perform according to the terms of the contract). The market risk of the derivatives should generally offset the market risk associated with the hedged financial instrument or liability. To help limit the credit exposure of the derivatives, we enter into master netting agreements with our counterparties whereby contracts in a gain position can be offset against contracts in a loss position. We also typically enter into bilateral, cross-collateralization agreements with our counterparties to help limit the credit exposure of the derivatives. These agreements require the counterparty in a loss position to submit acceptable collateral with the other counterparty in the event the net loss position meets or exceeds an agreed upon amount. Credit exposure on derivatives is limited to the value of those contracts in a net gain position, including accrued interest receivable less collateral held. As of June 30, 2020, our credit exposure on derivatives was $0.3 million. At December 31, 2019, we had no credit exposure on derivatives. The table below summarizes the nature and amount of collateral received from and posted to our derivative counterparties.
See Note 4 for further discussion of our master netting agreements. The majority of our derivative instruments contain provisions that require us to maintain specified issuer credit ratings and financial strength ratings. Should our ratings fall below these specified levels, we would be in violation of the provisions, and our derivatives counterparties could terminate our contracts and request immediate payment. The aggregate fair value of all derivative instruments with credit risk-related contingent features that were in a liability position was $31.9 million and $34.6 million at June 30, 2020 and December 31, 2019, respectively. Derivative Transactions The table below summarizes, by notional amounts, the activity for each category of derivatives. The notional amounts represent the basis upon which our counterparty pay and receive amounts are calculated.
Cash Flow Hedges As of June 30, 2020 and December 31, 2019, we had $213.5 million notional amount of receive fixed, pay fixed, open current and forward foreign currency interest rate swaps to hedge fixed income foreign currency-denominated securities. As of June 30, 2020, we expect to amortize approximately $74.3 million of net deferred gains on derivative instruments during the next twelve months. This amount will be reclassified from accumulated other comprehensive income into earnings and reported on the same income statement line item as the hedged item. The income statement line items that will be affected by this amortization are net investment income and interest and debt expense. Additional amounts that may be reclassified from accumulated other comprehensive income into earnings to offset the earnings impact of foreign currency translation of hedged items are not estimable. As of June 30, 2020, we are hedging the variability of future cash flows associated with forecasted transactions through the year 2045. Fair Value Hedges As of June 30, 2020 and December 31, 2019, we had $301.4 million and $249.4 million notional amount of receive fixed, pay fixed, open current and forward foreign currency interest rate swaps to hedge fixed income foreign currency-denominated securities. As of June 30, 2020 and December 31, 2019, we had $250.0 million notional amount of receive fixed, pay variable interest rate swaps to hedge the changes in the fair value of certain fixed rate long-term debt. These swaps effectively convert the associated fixed rate long-term debt into floating rate debt and provide for a better matching of interest rates with our short-term investments, which have frequent interest rate resets similar to a floating rate security. The following table summarizes the carrying amount of hedged assets and liabilities and the related cumulative basis adjustments related to our fair value hedges:
For the three and six months ended June 30, 2020, $4.5 million of the derivative instruments' loss and $24.3 million of the derivative instruments' gain, respectively, was excluded from the assessment of hedge effectiveness. For the three and six months ended June 30, 2019, $1.6 million and $1.5 million, respectively, of the derivative instruments' gain was excluded from the assessment of hedge effectiveness. There were no instances wherein we discontinued fair value hedge accounting due to a hedged firm commitment no longer qualifying as a fair value hedge. Derivatives not Designated as Hedging Instruments As of June 30, 2020 and December 31, 2019, we held $148.2 million notional amount of receive fixed, pay fixed, foreign currency interest rate swaps. These derivatives are not designated as hedges, and as such, changes in fair value related to these derivatives are reported in earnings as a component of net realized investment gain or loss. As of June 30, 2020 and December 31, 2019, we held $10.7 million and $11.4 million, respectively, notional amount of single name credit default swaps. We entered into these swaps in order to mitigate the credit risk associated with specific securities owned. As of June 30, 2020 and December 31, 2019, we held $7.6 million and $8.9 million, respectively, notional amount of foreign currency forwards to mitigate the foreign currency risk associated with specific securities owned. We have an embedded derivative in a modified coinsurance arrangement for which we include in our realized investment gains and losses a calculation intended to estimate the value of the option of our reinsurance counterparty to cancel the reinsurance contract with us. However, neither party can unilaterally terminate the reinsurance agreement except in extreme circumstances resulting from regulatory supervision, delinquency proceedings, or other direct regulatory action. Cash settlements or collateral related to this embedded derivative are not required at any time during the reinsurance contract or at termination of the reinsurance contract. There are no credit-related counterparty triggers, and any accumulated embedded derivative gain or loss reduces to zero over time as the reinsured business winds down. Locations and Amounts of Derivative Financial Instruments The following tables summarize the location and fair values of derivative financial instruments, as reported in our consolidated balance sheets.
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Accumulated Other Comprehensive Income (Loss) |
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Accumulated Other Comprehensive Income (Loss) | Components of our accumulated other comprehensive income (loss), after tax, and related changes are as follows:
The net unrealized gain (loss) on securities consists of the following components:
Amounts reclassified from accumulated other comprehensive income (loss) were recognized in our consolidated statements of income as follows:
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Liability for Unpaid Claims and Claim Adjustment Expenses |
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Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Unpaid Claims and Claims Adjustment Expenses Disclosure | Changes in the liability for unpaid claims and claim adjustment expenses are as follows:
The majority of the net balances are related to disability claims with long-tail payouts on which interest earned on assets backing liabilities is an integral part of pricing and reserving. Interest accrued on prior year reserves has been calculated on the opening reserve balance less one-half of the period's claim payments relative to prior years at our average reserve discount rate for the respective periods. "Incurred Related to Prior Years - All Other Incurred" shown in the preceding chart is primarily impacted by the level of claim resolutions in the period relative to the long-term expectations reflected in the reserves. Our claim resolution rate assumption used in determining reserves is our expectation of the resolution rate we will experience over the life of the block of business and will vary from actual experience in any one period, both favorably and unfavorably. Reconciliation A reconciliation of policy and contract benefits and reserves for future policy and contract benefits as reported in our consolidated balance sheets to the liability for unpaid claims and claim adjustment expenses is as follows:
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Segment Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | We have three principal operating business segments: Unum US, Unum International, and Colonial Life. Our other segments are Closed Block and Corporate. Segment information is as follows: Certain prior year amounts were reclassified to conform to current year presentation.
We measure and analyze our segment performance on the basis of "adjusted operating revenue" and "adjusted operating income" or "adjusted operating loss", which differ from total revenue and income before income tax as presented in our consolidated statements of income due to the exclusion of net realized investment gains and losses and certain other items as specified in the reconciliations below. We believe adjusted operating revenue and adjusted operating income or loss are better performance measures and better indicators of the revenue and profitability and underlying trends in our business. These performance measures are in accordance with GAAP guidance for segment reporting, but they should not be viewed as a substitute for total revenue, income before income tax, or net income. Realized investment gains or losses depend on market conditions and do not necessarily relate to decisions regarding the underlying business of our segments. Our investment focus is on investment income to support our insurance liabilities as opposed to the generation of realized investment gains or losses. Although we may experience realized investment gains or losses which will affect future earnings levels, a long-term focus is necessary to maintain profitability over the life of the business since our underlying business is long-term in nature, and we need to earn the interest rates assumed in calculating our liabilities. We may at other times exclude certain other items from our discussion of financial ratios and metrics in order to enhance the understanding and comparability of our operational performance and the underlying fundamentals. We exclude these items as we believe them to be infrequent or unusual in nature, but this exclusion is not an indication that similar items may not recur and does not replace net income or net loss as a measure of our overall profitability. See Note 12 of the "Notes to Consolidated Financial Statements" contained herein in this Item 1 for further discussion regarding the impairment loss on the ROU asset related to one of our operating leases for office space. A reconciliation of total revenue to "adjusted operating revenue" and income before income tax to "adjusted operating income" is as follows:
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Employee Benefit Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits Disclosure | Defined Benefit Pension and Other Postretirement Benefit (OPEB) Plans We sponsor several defined benefit pension and OPEB plans for our employees, including non-qualified pension plans. The U.S. qualified and non-qualified defined benefit pension plans comprise the majority of our total benefit obligation and benefit cost. We maintain a separate defined benefit plan for eligible employees in our U.K. operation. The U.S. defined benefit pension plans were closed to new entrants on December 31, 2013, the OPEB plan was closed to new entrants on December 31, 2012, and the U.K. plan was closed to new entrants on December 31, 2002. U.S. Pension Plan Annuity Purchase On January 2, 2020, we purchased a group annuity contract which transferred a portion of our U.S. qualified defined benefit pension plan obligation to a third party. Under the transaction, which was funded with plan assets, we transferred the responsibility for pension benefits and annuity administration for approximately 600 retirees, or their beneficiaries, receiving between $350 and $500 in monthly benefit payments from the plan. This transfer reduced our 2020 U.S. qualified benefit pension plan obligation by approximately $44.0 million. The following table provides the components of the net periodic benefit cost (credit) for the defined benefit pension and OPEB plans.
The service cost component of net periodic pension and postretirement benefit cost (credit) is included as a component of compensation expense in our consolidated statements of income. All other components of net periodic pension and postretirement benefit cost are included in other expenses.
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Stockholders' Equity and Earnings Per Common Share |
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Stockholders' Equity and Earnings Per Common Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share Disclosure | Earnings Per Common Share Net income per common share is determined as follows:
We compute basic earnings per share by dividing net income by the weighted average number of common shares outstanding for the period. In computing earnings per share assuming dilution, we include potential common shares that are dilutive (those that reduce earnings per share). We use the treasury stock method to account for the effect of outstanding stock options, nonvested restricted stock units, and nonvested performance share units on the computation of diluted earnings per share. Under this method, the potential common shares from stock options and nonvested restricted stock units will each have a dilutive effect, as individually measured, when the average market price of Unum Group common stock during the period exceeds the exercise price of the stock options and the grant price of the nonvested restricted stock units. The outstanding stock options have an exercise price of $24.25 and the nonvested restricted stock units have grant prices ranging from $12.45 to $55.26. Potential common shares from performance based share units will have a dilutive effect as the attainment of performance conditions is progressively achieved during the vesting period. Potential common shares not included in the computation of diluted earnings per share because the impact would be antidilutive, approximated 1.8 million and 1.5 million potential common shares for the three and six months ended June 30, 2020. There were approximately 1.2 million potential common shares that were antidilutive for both the three and six months ended June 30, 2019.
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Stockholders' Equity Disclosure | Common Stock During the second quarter of 2019, our board of directors authorized the repurchase of up to $750.0 million of Unum Group's outstanding common stock through November 23, 2020. This authorization replaced the previous authorization of $750.0 million that was scheduled to expire on November 24, 2019. The remaining repurchase amount under the new program was $516.2 million at June 30, 2020. Common stock repurchases are accounted for using the cost method and classified as treasury stock until otherwise retired. During the three and six months ended June 30, 2019, we repurchased 2.9 million and 5.6 million shares at a cost of $100.2 million and $200.2 million, respectively, which included commissions of $0.2 million in each period. There were no shares repurchased during the three or six months ended June 30, 2020. Preferred Stock Unum Group has 25.0 million shares of preferred stock authorized with a par value of $0.10 per share. No preferred stock has been issued to date.
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Commitments and Contingent Liabilities |
6 Months Ended |
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Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | Contingent Liabilities We are a defendant in a number of litigation matters that have arisen in the normal course of business. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning our compliance with applicable insurance and other laws and regulations. Given the complexity and scope of our litigation and regulatory matters, it is not possible to predict the ultimate outcome of all pending investigations or legal proceedings or provide reasonable estimates of potential losses, except if noted in connection with specific matters. In some of these matters, no specified amount is sought. In others, very large or indeterminate amounts, including punitive and treble damages, are asserted. There is a wide variation of pleading practice permitted in the United States courts with respect to requests for monetary damages, including some courts in which no specified amount is required and others which allow the plaintiff to state only that the amount sought is sufficient to invoke the jurisdiction of that court. Further, some jurisdictions permit plaintiffs to allege damages well in excess of reasonably possible verdicts. Based on our extensive experience and that of others in the industry with respect to litigating or resolving claims through settlement over an extended period of time, we believe that the monetary damages asserted in a lawsuit or claim bear little relation to the merits of the case, or the likely disposition value. Therefore, the specific monetary relief sought is not stated. Unless indicated otherwise in the descriptions below, reserves have not been established for litigation and contingencies. An estimated loss is accrued when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Claims Handling Matters We and our insurance subsidiaries, in the ordinary course of our business, are engaged in claim litigation where disputes arise as a result of a denial or termination of benefits. Most typically these lawsuits are filed on behalf of a single claimant or policyholder, and in some of these individual actions punitive damages are sought, such as claims alleging bad faith in the handling of insurance claims. For our general claim litigation, we maintain reserves based on experience to satisfy judgments and settlements in the normal course. We expect that the ultimate liability, if any, with respect to general claim litigation, after consideration of the reserves maintained, will not be material to our consolidated financial condition. Nevertheless, given the inherent unpredictability of litigation, it is possible that an adverse outcome in certain claim litigation involving punitive damages could, from time to time, have a material adverse effect on our consolidated results of operations in a period, depending on the results of operations for the particular period. From time to time class action allegations are pursued where the claimant or policyholder purports to represent a larger number of individuals who are similarly situated. Since each insurance claim is evaluated based on its own merits, there is rarely a single act or series of actions which can properly be addressed by a class action. Nevertheless, we monitor these cases closely and defend ourselves appropriately where these allegations are made. Miscellaneous Matters Similar to other insurers, we were the subject of an examination by a third party acting on behalf of a number of state treasurers concerning our compliance with the unclaimed property laws of the participating states. We cooperated fully with this examination and in the fourth quarter of 2017, we started the process to reach a Global Resolution Agreement with the third party regarding settlement of the examination, which we finalized in January of 2018. Under the terms of the agreement, the third party acting on behalf of the signatory states compared insured data to the Social Security Administration's Death Master File to identify deceased insureds and contract holders where a valid claim has not been made. During the fourth quarter of 2017, we established reserves which reflect our estimate of the liability expected to be paid as we execute on the terms of the settlement. We also are cooperating with a Delaware Market Conduct examination involving the same issue, which is currently inactive. The legal and regulatory environment around unclaimed death benefits continues to evolve. It is possible that the current settlement and/or similar investigations by other state jurisdictions may result in payments to beneficiaries, the payment of abandoned funds under state law, and/or administrative penalties, the total of which may be in excess of the reserves established. Securities Class Actions: Three alleged securities class action lawsuits have been filed against Unum Group and individual defendants as follows: •On June 13, 2018, an alleged securities class action lawsuit entitled Cynthia Pittman v. Unum Group, Richard McKenney, John McGarry, and Daniel Waxenberg was filed in the United States District Court for the Eastern District of Tennessee. The plaintiff seeks to represent purchasers of Unum Group publicly traded securities between January 31, 2018 and May 2, 2018. The plaintiff alleges the Company caused its shares to trade at artificially high levels by failing to disclose information about the rate of long-term care policy terminations and long-term care claim incidence resulting in misleading statements about capital management plans and long-term care reserves. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and seeks compensatory damages in an amount to be proven at trial. The Company strongly denies these allegations and will vigorously defend the litigation. •On July 13, 2018, an alleged securities class action lawsuit entitled Scott Cunningham v. Unum Group, Richard McKenney, John McGarry, and Daniel Waxenberg was filed in the United States District Court for the Eastern District of Tennessee. The allegations, class period, and damages claimed mirror those in the Pittman matter. The Company strongly denies these allegations and will vigorously defend the litigation. •On July 25, 2018, an alleged securities class action lawsuit entitled City of Taylor Police and Fire Retirement System v. Unum Group, Richard McKenney, John McGarry, Steve Zabel, and Daniel Waxenberg was filed in the United States District Court for the Eastern District of Tennessee. The plaintiff seeks to represent purchasers of Unum Group publicly traded securities between October 27, 2016 and May 1, 2018. The allegations and damages claimed mirror those in the Pittman matter. The Company strongly denies these allegations and will vigorously defend the litigation. On November 9, 2018, the court consolidated the Pittman, Cunningham, and City of Taylor Police and Fire Retirement System cases into one matter entitled In re Unum Group Securities Litigation, appointed a lead plaintiff and lead plaintiff’s counsel, and directed the plaintiff to file a consolidated amended complaint. On January 15, 2019, the plaintiff filed a consolidated amended complaint asserting claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and seeks compensatory damages in an amount to be proven at trial as well as costs, expenses, and attorney’s fees. On March 18, 2019, the Company filed a motion to dismiss the consolidated amended complaint. On November 4, 2019, the court heard oral argument on the motion. On June 1, 2020, the court granted the Company’s motion and dismissed the cases with prejudice. On June 26, 2020, the plaintiffs filed a notice of appeal with the Sixth Circuit Court of Appeals. The appeal is in a very preliminary stage and the outcome is uncertain. We believe the appeal and the underlying claims lack merit and reserves have not been established for these matters as we are unable to estimate a range of reasonably possible losses. However, an adverse outcome in one or more of these actions could, depending on the nature, scope, and amount of any ruling, materially adversely affect our consolidated results of operations in a period.
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Other |
6 Months Ended |
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Jun. 30, 2020 | |
Debt and Other Disclosures [Abstract] | |
Debt | At June 30, 2020, short-term debt consisted entirely of our 5.625% senior unsecured notes due in the third quarter of 2020. Also included in the carrying amount of short-term debt are deferred debt costs of $0.1 million. During the six months ended June 30, 2020, we made principal payments of $30.0 million on our senior secured non-recourse notes issued by Northwind Holdings, LLC. In May 2020, we issued $500.0 million of 4.500% senior notes due 2025. The notes are callable at or above par and rank equally in the right of payment with all of our other unsecured and unsubordinated debt. At June 30, 2020, letters of credit totaling $0.6 million had been issued from our credit facilities, but there were no borrowed amounts outstanding. Borrowings under the credit facilities are for general corporate uses and are subject to financial covenants, negative covenants, and events of default that are customary. The two primary financial covenants include limitations based on our leverage ratio and consolidated net worth. We are also subject to covenants that limit subsidiary indebtedness. The credit facilities provide for borrowings at an interest rate based either on the prime rate or LIBOR.
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Statutory Financial Information | In connection with a financial examination of Unum Life Insurance Company of America (Unum America), which closed at the end of the second quarter of 2020, the Maine Bureau of Insurance (MBOI) concluded that Unum America’s long-term care statutory reserves are deficient by $2.1 billion as of December 31, 2018, the financial statement date of the examination period. The MBOI granted permission to Unum America on May 1, 2020, to phase in the additional statutory reserves over seven years beginning with year-end 2020 and ending with year-end 2026. The 2020 phase-in amount is estimated to be between $200 million and $250 million. This strengthening will be accomplished by our actuaries incorporating explicitly agreed upon margins into our existing assumptions for annual statutory reserve adequacy testing. These actions will add margin to Unum America's best estimate assumptions. Our long-term care reserves and financial results reported under generally accepted accounting principles are not affected by the MBOI’s examination conclusion. We plan to fund the additional statutory reserves with expected cash flows. If the permitted practice was not granted by the MBOI to phase in these additional statutory reserves, the impact to the risk-based capital ratio would have triggered a regulatory event. |
Lessee, Operating Leases | During the second quarter of 2020, we recognized an impairment loss of $12.7 million, or $10.0 million after-tax, on the right-of-use (ROU) asset related to one of our operating leases for office space that we do not plan to continue using to support our general operations. The impairment loss was recorded as a result of a decrease in the fair value of the ROU asset compared to its carrying value. The fair value of the ROU asset was determined based on a discounted cash flow model utilizing estimated market rates for sub-lease rentals. The impairment loss is recorded within other expenses in the consolidated statements of income and is included within our Corporate segment. |
Subsequent Events | On July 22, 2020, the Finance Bill 2019-21 was enacted, resulting in a U.K. tax rate increase from 17 percent to 19 percent, retroactively effective April 1, 2020, which will result in approximately $9 million of additional tax expense for the revaluation of our tax liabilities in the third quarter of 2020. |
Basis of Presentation (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements of Unum Group and its subsidiaries (the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes included in our annual report on Form 10-K for the year ended December 31, 2019. |
Accounting Developments (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Allowance for Current Expected Credit Losses | In accordance with the January 1, 2020 implementation of updates to Accounting Standards Codification (ASC) 326 "Financial Instruments - Credit Losses", we have added the following discussion regarding our accounting policies on the allowance for current expected credit losses to our significant accounting policies. Allowance for Current Expected Credit Losses: We establish an allowance for current expected credit losses on certain of our financial assets, which is deducted from the amortized cost of applicable investments and the gross amount of applicable receivables, to present the net amount we expect to collect on these financial assets. The allowance is forward-looking in nature and is calculated based on considerations regarding both historical events and future expectations. Periodic changes in the allowance are recorded through earnings. The allowance on our premiums receivable is primarily determined using an aging analysis as well as historical lapse and delinquency rates by line of business, adjusted for key factors that may impact our future expectation of premium receipts such as changes in customer demographics, business practices, economic conditions, and product offerings. We write off premiums receivable amounts when determined to be uncollectible, which is based on various factors, including the aging of premiums receivable past the due date and specific communication with customers. At January 1, 2020 and June 30, 2020, the allowance for expected credit losses on premium receivables was $23.8 million and $47.5 million, respectively, on gross premium receivables of $543.0 million and $627.0 million, respectively. The allowance at January 1, 2020 includes amounts that were previously established at December 31, 2019. The increase in the allowance during the three and six months ended June 30, 2020, was driven primarily by the uncertainty of collectability resulting from the impacts of COVID-19. The primary factors considered in establishing the additional allowance were the recent increase in unemployment levels, the expected reversal of state-level requirements regarding billing and administration accommodations, and the general uncertainty around the financial condition of some of our customers. There was no significant write-off or recovery activity for the three and six months ended June 30, 2020. The allowance for our reinsurance recoverable balance is determined using a probability of default approach which incorporates key inputs and assumptions regarding historical insurer liquidation rates, counterparty credit ratings, and collateral received. Liquidation rates are derived from rating agency studies covering domestic insurers and are based on historical liquidation trends according to their respective credit ratings. When calculating our allowance, we apply these liquidation rates to the net amount of our credit exposure, which considers collateral arrangements such as letters of credit. We evaluate the factors used to determine our allowance on a quarterly basis to consider material changes in our assumptions and make adjustments accordingly. At both January 1, 2020 and June 30, 2020, the allowance for expected credit losses on reinsurance recoverables was $1.8 million.See Note 4 for discussion on the allowance for current expected credit losses regarding our commercial mortgage loans and the allowance for credit losses for our available-for-sale fixed maturity securities.
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Accounting Developments (Tables) |
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Accounting Developments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements | Summary of Financial Statement Impacts of Accounting Updates Adopted in 2020:
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Fair Values of Financial Instruments (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | The following tables present additional information about our private equity partnerships, including commitments for additional investments which may or may not be funded:
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Fair Values by Fair Value Hierarchy Input level | The following tables present information about financial instruments measured at fair value on a recurring basis by fair value level, based on the observability of the inputs used:
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Changes in Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs | Changes in assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are as follows:
(1) Other Comprehensive Income (Loss)
Realized and unrealized investment gains and losses presented in the preceding tables represent gains and losses only for the time during which the applicable financial instruments were classified as Level 3. The transfers between levels resulted primarily from a change in observability of three inputs used to determine fair values of the securities transferred: (1) transactional data for new issuance and secondary trades, (2) broker/dealer quotes and pricing, primarily related to changes in the level of activity in the market and whether the market was considered orderly, and (3) comparable bond metrics from which to perform an analysis. For fair value measurements of financial instruments that were transferred either into or out of Level 3, we reflect the transfers using the fair value at the beginning of the period. We believe this allows for greater transparency, as all changes in fair value that arise during the reporting period of the transfer are disclosed as a component of our Level 3 reconciliation. Gains (losses) which are included in earnings and are attributable to the change in fair value of assets or liabilities valued using significant unobservable inputs and still held at each period end were $(0.8) million and $4.7 million for the three and six months ended June 30, 2019, respectively, and relate entirely to the change in fair value of an embedded derivative in a modified coinsurance arrangement and are reported as a component of realized investment gains and losses.
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Quantitative Information Regarding Significant Unobservable Inputs | The table below provides quantitative information regarding the significant unobservable inputs used in Level 3 fair value measurements derived from internal models. Unobservable inputs for fixed maturity securities are weighted by the fair value of the securities. Certain securities classified as Level 3 are excluded from the table below due to limitations in our ability to obtain the underlying inputs used by external pricing sources.
(a)Represents basis point adjustments to apply a discount due to the illiquidity of an investment (b)Represents basis point adjustments for credit-specific factors (c)Represents a decision to price based on par value, cost, or owner's equity when limited data is available (d)Represents various actuarial assumptions required to derive the liability cash flows. Fair value of embedded derivative is most often driven by the change in the weighted average credit spread to the swap curve for the assets backing the hypothetical loan. (e)Represents basis point adjustments based on issue/issuer size relative to the benchmark (f)Represents basis point adjustments for changes in benchmark spreads associated with various industry sectors
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Carrying Amount and Fair Value of Financial Instruments | The following table presents the carrying amounts and estimated fair values of our financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:
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Investments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Fair Values of Securities by Security Type | At June 30, 2020 and December 31, 2019, 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:
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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.
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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.
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Distribution by External Credit Rating for Fixed Maturity Securities | The following chart depicts an analysis of our fixed maturity security portfolio between investment-grade and below-investment-grade categories as of June 30, 2020:
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Debt Securities, Available-for-sale, Allowance for Credit Loss | The following table presents a rollforward of the allowance for credit losses on available-for-sale fixed maturity securities, all of which are classified as "all other corporate bonds" in the preceding tables, at June 30, 2020:
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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:
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Mortgage Loans by Property Type and Geographic Region | The carrying amount of mortgage loans by property type and geographic region are presented below.
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Schedule of Participating Mortgage Loans by Internal Credit Rating and Loan to Value | The following tables present information about mortgage loans by the applicable credit quality indicators:
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Mortgage Loans by Credit Quality Indicators | The following table presents the amortized cost of our mortgage loans by year of origination and credit quality indicators at June 30, 2020:
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Financing Receivable, Allowance for Credit Loss | The following table presents a roll-forward of allowance for expected credit losses by loan-to-value ratio:
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Federal Home Loan Bank Common Stock Carrying Amounts, Amounts Posted, and Advances Received | The carrying value of common stock owned, collateral posted, and advances received are as follows:
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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.
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Net Investment Income | Net Investment Income Net investment income reported in our consolidated statements of income is presented below. Certain prior period amounts have been reclassified to conform to the current period presentation.
1 The net unrealized gain (loss) recognized in net investment income for the three and six months ended June 30, 2020 related to perpetual preferred securities still held at June 30, 2020 was $10.0 million and $(7.9) million, respectively. The net unrealized gain (loss) recognized in net investment income for the three and six months ended June 30, 2019 related to perpetual preferred securities still held at June 30, 2019 was $(0.1) million and $3.0 million. 2 The net unrealized loss recognized in net investment income for the three and six months ended June 30, 2020 related to private equity partnerships still held at June 30, 2020 was $41.0 million and $35.6 million. The net unrealized gain recognized in net investment income for the three and six months ended June 30, 2019 related to private equity partnerships still held at June 30, 2019 was $6.3 million and $3.6 million. See Note 3 for further discussion of private equity partnerships.
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Realized Investment Gains and Losses Reported in Consolidated Statements of Income | Realized Investment Gain and Loss Realized investment gains and losses are as follows:
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Derivative Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nature and Amount of Collateral Received From and Posted To Derivative Counterparty | The table below summarizes the nature and amount of collateral received from and posted to our derivative counterparties.
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Notional Amounts for Each Category of Derivative Activity | The table below summarizes, by notional amounts, the activity for each category of derivatives. The notional amounts represent the basis upon which our counterparty pay and receive amounts are calculated.
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Fair Value Hedges Carrying Amount of Hedged Assets and Liabilities and Cumulative Basis Adjustments | The following table summarizes the carrying amount of hedged assets and liabilities and the related cumulative basis adjustments related to our fair value hedges:
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Location and Fair Values of Derivative Financial Instruments | The following tables summarize the location and fair values of derivative financial instruments, as reported in our consolidated balance sheets.
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Location of Gains and Losses on Derivative Instruments Designated as Cash Flow Hedging Instruments | The following tables summarize the location of gains and losses of derivative financial instruments designated as hedging instruments, as reported in our consolidated statements of income.
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Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table summarizes the location of gains and losses of derivative financial instruments designated as cash flow hedging instruments, as reported in our consolidated statements of comprehensive income (loss).
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Gains and Losses on Derivatives Not Designated as Hedging Instruments | The following table summarizes the location of gains and losses on our derivatives not designated as hedging instruments, as reported in our consolidated statements of income.
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Accumulated Other Comprehensive Income (Loss) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | Components of our accumulated other comprehensive income (loss), after tax, and related changes are as follows:
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Schedule of Components of Unrealized Gain (Loss) on Securities | The net unrealized gain (loss) on securities consists of the following components:
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Schedule of Reclassification out of Accumulated Other Comprehensive Income (Loss) | Amounts reclassified from accumulated other comprehensive income (loss) were recognized in our consolidated statements of income as follows:
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Liability for Unpaid Claims and Claim Adjustment Expenses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | Changes in the liability for unpaid claims and claim adjustment expenses are as follows:
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Reconciliation of Policy and Contract Benefits and Reserves for Future Policy and Contract Benefits to Balance Sheet Amounts | A reconciliation of policy and contract benefits and reserves for future policy and contract benefits as reported in our consolidated balance sheets to the liability for unpaid claims and claim adjustment expenses is as follows:
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Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premium Income by Major Line of Business within Each Segment | Segment information is as follows: Certain prior year amounts were reclassified to conform to current year presentation.
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Selected Operating Statement Data by Segment |
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Assets by Segment |
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Reconciliation of Total Revenue and Income Before Income Tax to Adjusted Operating Revenue and Adjusted Operating Income | A reconciliation of total revenue to "adjusted operating revenue" and income before income tax to "adjusted operating income" is as follows:
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Employee Benefit Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Defined Benefit Plans and Other Postretirement Benefit Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | The following table provides the components of the net periodic benefit cost (credit) for the defined benefit pension and OPEB plans.
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Stockholders' Equity and Earnings Per Common Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Stockholders' Equity and Earnings Per Common Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Earnings Per Share | Net income per common share is determined as follows:
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Accounting Policies (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Jan. 01, 2020 |
Dec. 31, 2019 |
---|---|---|---|
Accounting Policies [Abstract] | |||
Accounts Receivable, after Allowance for Credit Loss | $ 47.5 | $ 23.8 | $ 10.3 |
Premiums Receivable, Gross | 627.0 | 543.0 | |
Reinsurance Recoverable, Allowance for Credit Loss | $ 1.8 | $ 1.8 | $ 0.0 |
Fair Values of Financial Instruments Private Equity Partnerships (Details) - Private Equity Funds - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
||||||
---|---|---|---|---|---|---|---|---|
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||||||||
Alternative Investments | $ 666.6 | $ 616.7 | ||||||
Alternative Investments, Unfunded Commitments | 484.2 | 475.1 | ||||||
Private Credit | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||||||||
Alternative Investments | [1] | 270.4 | 263.2 | |||||
Alternative Investments, Unfunded Commitments | 133.1 | 152.7 | ||||||
Private Credit | Not Redeemable | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||||||||
Alternative Investments | [1] | 230.7 | 223.6 | |||||
Alternative Investments, Unfunded Commitments | 133.1 | 152.6 | ||||||
Private Credit | Initial 2 year lock on each new investment / Quarterly after 2 year lock with 90 days notice | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||||||||
Alternative Investments | [1] | 39.7 | 39.6 | |||||
Alternative Investments, Unfunded Commitments | 0.0 | 0.1 | ||||||
Private Equity Limited Partnership | Not Redeemable | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||||||||
Alternative Investments | [2] | 179.6 | 149.3 | |||||
Alternative Investments, Unfunded Commitments | 179.9 | 166.8 | ||||||
Real Assets | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||||||||
Alternative Investments | [3] | 216.6 | 204.2 | |||||
Alternative Investments, Unfunded Commitments | 171.2 | 155.6 | ||||||
Real Assets | Not Redeemable | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||||||||
Alternative Investments | [3] | 161.4 | 173.8 | |||||
Alternative Investments, Unfunded Commitments | 171.2 | 130.6 | ||||||
Real Assets | Quarterly / 90 days notice | ||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share | ||||||||
Alternative Investments | [3] | 55.2 | 30.4 | |||||
Alternative Investments, Unfunded Commitments | $ 0.0 | $ 25.0 | ||||||
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Fair Values of Financial Instruments Carrying Amounts and Estimated Fair value of Financial Instruments Not Measured at Fair Value (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Mortgage Loans, Carrying Amount | $ 2,434.4 | $ 2,397.0 |
Policy Loans | 3,684.0 | 3,779.5 |
Long-term Debt | 3,393.1 | 2,926.9 |
Unfunded Commitments | 1.8 | |
Liabilities, Fair Value Disclosure | 99.7 | 57.4 |
Fair Value, Nonrecurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Mortgage Loans, Fair Value Disclosure | 2,632.5 | 2,556.3 |
Mortgage Loans, Carrying Amount | 2,434.4 | 2,397.0 |
Policy Loans, Fair Value Disclosure | 3,857.1 | 3,911.4 |
Policy Loans | 3,684.0 | 3,779.5 |
Miscellaneous Long-Term Investments, Fair Value Disclosure | 78.6 | 76.9 |
Miscellaneous Long-Term Investments | 78.6 | 76.9 |
Financial Instruments, Financial Assets Fair Value Disclosure | 6,568.2 | 6,544.6 |
Total Financial Instrument Assets Not Carried at Fair Value | 6,197.0 | 6,253.4 |
Long-term Debt, Fair Value Disclosure | 3,650.0 | 3,239.0 |
Long-term Debt | 3,393.1 | 2,926.9 |
Advances, Fair Value Disclosure | 162.1 | |
Federal Home Loan Bank Funding Agreements | 162.1 | |
Unfunded Commitments | 1.8 | 1.9 |
Liabilities, Fair Value Disclosure | 3,813.9 | 3,240.9 |
Total Financial Instrument Liabilities Not Carried at Fair Value | 3,557.0 | 2,928.8 |
Fair Value, Inputs, Level 1 | Fair Value, Nonrecurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Mortgage Loans, Fair Value Disclosure | 0.0 | 0.0 |
Policy Loans, Fair Value Disclosure | 0.0 | 0.0 |
Miscellaneous Long-Term Investments, Fair Value Disclosure | 0.0 | 0.0 |
Financial Instruments, Financial Assets Fair Value Disclosure | 0.0 | 0.0 |
Long-term Debt, Fair Value Disclosure | 3,124.7 | 1,712.8 |
Advances, Fair Value Disclosure | 0.0 | |
Unfunded Commitments | 0.0 | 0.0 |
Liabilities, Fair Value Disclosure | 3,124.7 | 1,712.8 |
Fair Value, Inputs, Level 2 | Fair Value, Nonrecurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Mortgage Loans, Fair Value Disclosure | 2,632.5 | 2,556.3 |
Policy Loans, Fair Value Disclosure | 0.0 | 0.0 |
Miscellaneous Long-Term Investments, Fair Value Disclosure | 27.5 | 18.5 |
Financial Instruments, Financial Assets Fair Value Disclosure | 2,660.0 | 2,574.8 |
Long-term Debt, Fair Value Disclosure | 525.3 | 1,526.2 |
Advances, Fair Value Disclosure | 162.1 | |
Unfunded Commitments | 1.8 | 1.9 |
Liabilities, Fair Value Disclosure | 689.2 | 1,528.1 |
Fair Value, Inputs, Level 3 | Fair Value, Nonrecurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Mortgage Loans, Fair Value Disclosure | 0.0 | 0.0 |
Policy Loans, Fair Value Disclosure | 3,857.1 | 3,911.4 |
Miscellaneous Long-Term Investments, Fair Value Disclosure | 51.1 | 58.4 |
Financial Instruments, Financial Assets Fair Value Disclosure | 3,908.2 | 3,969.8 |
Long-term Debt, Fair Value Disclosure | 0.0 | 0.0 |
Advances, Fair Value Disclosure | 0.0 | |
Unfunded Commitments | 0.0 | 0.0 |
Liabilities, Fair Value Disclosure | $ 0.0 | $ 0.0 |
Fair Value of Financial Instruments Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Gain (Loss) on Embedded Derivative | $ 41.9 | $ (0.8) | $ (45.0) | $ 4.7 | |
Ceded Policy Loans | $ 3,684.0 | $ 3,684.0 | $ 3,490.6 | ||
Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Percentage of Total Fair Value of Fixed Maturities Securities | 18.10% | 18.10% | |||
Fair Value, Inputs, Level 2 | Pricing Service | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Percentage of Total Fair Value of Fixed Maturities Securities | 68.50% | 68.50% | |||
Fair Value, Inputs, Level 2 | Other Observable Market Data | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Percentage of Total Fair Value of Fixed Maturities Securities | 9.10% | 9.10% | |||
Fair Value Inputs Other Than Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Percentage of Total Fair Value of Fixed Maturities Securities | 81.90% | 81.90% | |||
Fair Value Inputs Level 2 Or Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Percentage of Total Fair Value of Fixed Maturities Securities | 4.30% | 4.30% |
Amortized Cost and Fair Values of Securities by Security Type (Detail) - USD ($) $ in Millions |
Jun. 30, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|---|
Debt Securities, Available-for-sale | |||
Debt Securities, Available-for-sale, Amortized Cost, Total | $ 40,840.4 | $ 41,079.3 | |
Debt Securities, Available-for-sale, Allowance for credit losses for Fixed Maturity Securities | 29.8 | 0.0 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 7,654.2 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 231.4 | ||
Debt Securities, Available-for-sale, Total | 48,233.4 | 47,443.7 | |
United States Government and Government Agencies and Authorities | |||
Debt Securities, Available-for-sale | |||
Debt Securities, Available-for-sale, Amortized Cost, Total | 1,140.0 | 1,246.1 | |
Debt Securities, Available-for-sale, Allowance for credit losses for Fixed Maturity Securities | 0.0 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 226.3 | 156.0 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0.0 | 0.4 | |
Debt Securities, Available-for-sale, Total | 1,366.3 | 1,401.7 | |
States, Municipalities, and Political Subdivisions | |||
Debt Securities, Available-for-sale | |||
Debt Securities, Available-for-sale, Amortized Cost, Total | 2,901.4 | 2,863.1 | |
Debt Securities, Available-for-sale, Allowance for credit losses for Fixed Maturity Securities | 0.0 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 585.6 | 507.6 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 4.1 | 7.3 | |
Debt Securities, Available-for-sale, Total | 3,482.9 | 3,363.4 | |
Foreign Governments | |||
Debt Securities, Available-for-sale | |||
Debt Securities, Available-for-sale, Amortized Cost, Total | 820.7 | 843.5 | |
Debt Securities, Available-for-sale, Allowance for credit losses for Fixed Maturity Securities | 0.0 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 249.5 | 175.2 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 1.4 | 1.0 | |
Debt Securities, Available-for-sale, Total | 1,068.8 | 1,017.7 | |
Public Utilities | |||
Debt Securities, Available-for-sale | |||
Debt Securities, Available-for-sale, Amortized Cost, Total | 6,331.4 | 6,436.7 | |
Debt Securities, Available-for-sale, Allowance for credit losses for Fixed Maturity Securities | 0.0 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 1,598.8 | 1,303.7 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 7.2 | 8.2 | |
Debt Securities, Available-for-sale, Total | 7,923.0 | 7,732.2 | |
Mortgage/Asset-backed Securities | |||
Debt Securities, Available-for-sale | |||
Debt Securities, Available-for-sale, Amortized Cost, Total | 1,334.7 | 1,377.8 | |
Debt Securities, Available-for-sale, Allowance for credit losses for Fixed Maturity Securities | 0.0 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 133.3 | 101.3 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0.2 | 0.4 | |
Debt Securities, Available-for-sale, Total | 1,467.8 | 1,478.7 | |
All Other Corporate Bonds | |||
Debt Securities, Available-for-sale | |||
Debt Securities, Available-for-sale, Amortized Cost, Total | 28,302.6 | 28,273.1 | |
Debt Securities, Available-for-sale, Allowance for credit losses for Fixed Maturity Securities | 29.8 | $ 48.0 | 0.0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 4,860.7 | 4,211.2 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 218.3 | 73.9 | |
Debt Securities, Available-for-sale, Total | 32,915.2 | 32,410.4 | |
Redeemable Preferred Stocks | |||
Debt Securities, Available-for-sale | |||
Debt Securities, Available-for-sale, Amortized Cost, Total | 9.6 | 39.0 | |
Debt Securities, Available-for-sale, Allowance for credit losses for Fixed Maturity Securities | 0.0 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0.0 | 0.6 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0.2 | 0.0 | |
Debt Securities, Available-for-sale, Total | 9.4 | 39.6 | |
Fixed Maturity Securities | |||
Debt Securities, Available-for-sale | |||
Debt Securities, Available-for-sale, Amortized Cost, Total | 40,840.4 | 41,079.3 | |
Debt Securities, Available-for-sale, Allowance for credit losses for Fixed Maturity Securities | 29.8 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 7,654.2 | 6,455.6 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 231.4 | 91.2 | |
Debt Securities, Available-for-sale, Total | $ 48,233.4 | $ 47,443.7 |
Length of Time Fixed Maturity Securities had been in a Gross Unrealized Loss Position (Detail) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
United States Government and Government Agencies and Authorities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 110.2 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0.4 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0.0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0.0 | |
States, Municipalities, and Political Subdivisions | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 108.7 | 331.0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 4.1 | 7.3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0.1 | 0.3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0.0 | 0.0 |
Foreign Governments | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 10.9 | 69.4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1.4 | 1.0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0.0 | 0.0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0.0 | 0.0 |
Public Utilities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 66.3 | 168.3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 4.9 | 2.6 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 23.2 | 37.0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 2.3 | 5.6 |
Mortgage/Asset-backed Securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 40.5 | 47.0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0.2 | 0.4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0.1 | 3.1 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0.0 | 0.0 |
All Other Corporate Bonds | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 2,381.0 | 579.1 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 163.0 | 29.1 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 196.8 | 379.8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 55.3 | 44.8 |
Redeemable Preferred Stocks | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 9.4 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0.2 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0.0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0.0 | |
Fixed Maturity Securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 2,616.8 | 1,305.0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 173.8 | 40.8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 220.2 | 420.2 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 57.6 | $ 50.4 |
Investments Distribution of the Maturity Dates for Fixed Maturity Securities (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Debt Securities, Available-for-sale, Amortized Cost, Net of Allowance for Credit Losses, Fiscal Year Maturity | ||
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, Year One, Net | $ 982.9 | |
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year One Through Five, Net | 6,686.5 | |
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year 5 Through 10, Net | 12,959.1 | |
Debt Securities, Available-for-Sale, Amortized Cost, Maturity, Allocated and Single Maturity Date, after Year 10, Net | 18,847.4 | |
Available for sale Securities Debt Maturities Amortized Cost Gross Subtotal, Net | 39,475.9 | |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost, Net | 1,334.7 | |
Debt Securities, Available-for-sale, Amortized Cost, Net of Allowance for Credit Losses | 40,810.6 | |
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost | $ 821.5 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Amortized Cost | 6,286.2 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Amortized Cost | 13,570.8 | |
Debt Securities, Available-for-sale, Allocated and Single Maturity Date, Maturity, after 10 Years, Amortized Cost | 19,023.0 | |
Available for sale Securities Debt Maturities Amortized Cost Gross Subtotal | 39,701.5 | |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 1,377.8 | |
Debt Securities, Available-for-sale, Amortized Cost, Total | 40,840.4 | 41,079.3 |
Available for Sale Securities Unrealized Gain Position Gross Gain | ||
Available For Sale Securities Debt Maturities Within One Year Unrealized Gain Position Gross Gain | 20.9 | 14.5 |
Available For Sale Securities Debt Maturities After One Through Five Years Unrealized Gain Position Gross Gain | 571.2 | 456.5 |
Available For Sale Securities Debt Maturities After Five Through Ten Years Unrealized Gain Position Gross Gain | 1,943.5 | 1,688.3 |
Available For Sale Securities Debt Maturities After Ten Years Unrealized Gain Position Gross Gain | 4,985.3 | 4,195.0 |
Available For Sale Securities Debt Maturities Unrealized Gain Position Gross Gain Gross Subtotal | 7,520.9 | 6,354.3 |
Available For Sale Securities Debt Maturities Without Single Maturity Date Unrealized Gain Position Gross Gain | 133.3 | 101.3 |
Available for sale Securities, Debt Maturities Unrealized Gain Position Gross Gain | 7,654.2 | 6,455.6 |
Available for Sale Securities Unrealized Loss Position Gross Loss | ||
Available For Sale Securities Debt Maturities Within One Year Unrealized Loss Position Gross Loss | 1.6 | 0.2 |
Available For Sale Securities Debt Maturities After One Through Five Years Unrealized Loss Position Gross Loss | 69.9 | 41.7 |
Available For Sale Securities Debt Maturities After Five Through Ten Years Unrealized Loss Position Gross Loss | 79.1 | 14.6 |
Available For Sale Securities Debt Maturities After Ten Years Unrealized Loss Position Gross Loss | 80.6 | 34.3 |
Available For Sale Securities Debt Maturities Unrealized Gain Position Gross Loss Gross Subtotal | 231.2 | 90.8 |
Available For Sale Securities Debt Maturities Without Single Maturity Date Unrealized Loss Position Gross Loss | 0.2 | 0.4 |
Available For Sale Securities Unrealized Loss Position Gross Loss Subtotal | 231.4 | 91.2 |
Fair Value Maturity Distribution [Abstract] | ||
Debt Securities, Available-for-sale, Total | 48,233.4 | 47,443.7 |
Available for Sale Securities Unrealized Gain Position Fair Value | ||
Fair Value Maturity Distribution [Abstract] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value | 983.8 | 832.6 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value | 6,609.8 | 6,423.4 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value | 13,767.9 | 14,881.3 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value | 22,607.7 | 22,152.6 |
Available for sale Securities Debt Maturities Fair Value Gross Subtotal | 43,969.2 | 44,289.9 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 1,427.2 | 1,428.6 |
Debt Securities, Available-for-sale, Total | 45,396.4 | 45,718.5 |
Available for Sale Securities Unrealized Loss Position Fair Value | ||
Fair Value Maturity Distribution [Abstract] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value | 18.4 | 3.2 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value | 578.0 | 277.6 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value | 1,055.6 | 363.2 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value | 1,144.4 | 1,031.1 |
Available for sale Securities Debt Maturities Fair Value Gross Subtotal | 2,796.4 | 1,675.1 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 40.6 | 50.1 |
Debt Securities, Available-for-sale, Total | $ 2,837.0 | $ 1,725.2 |
Investments Distribution by External Credit Rating for Fixed Maturity Securities (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Debt Securities, Available-for-sale | ||
Fixed Maturity Securities | $ 48,233.4 | $ 47,443.7 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 7,654.2 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 231.4 | |
Fixed maturity securities in unrealized loss position percent of total | 100.00% | |
External Credit Rating, Investment Grade | ||
Debt Securities, Available-for-sale | ||
Fixed Maturity Securities | $ 44,793.4 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 7,531.3 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 68.1 | |
Fixed maturity securities in unrealized loss position percent of total | 29.40% | |
External Credit Rating, Below-Investment-Grade | ||
Debt Securities, Available-for-sale | ||
Fixed Maturity Securities | $ 3,440.0 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 122.9 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 163.3 | |
Fixed maturity securities in unrealized loss position percent of total | 70.60% |
Debt Securities, Available-for-sale, Allowance for Credit Losses Rollforward (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2020 |
Jun. 30, 2020 |
|
Debt Securities, Available-for-sale, Allowance for Credit Loss | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Beginning Balance | $ 0.0 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Ending Balance | $ 29.8 | 29.8 |
All Other Corporate Bonds | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss, Beginning Balance | 48.0 | 0.0 |
Debt Securities, Available-for-sale, Credit losses on securities for which credit losses were not previously recorded | 7.6 | 55.6 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Change in allowance due to change in intent to hold securities to maturity | (20.8) | (20.8) |
Debt Securities, Available-for-sale, Change in allowance on securities with allowance recorded in previous period | (5.0) | (5.0) |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Ending Balance | $ 29.8 | $ 29.8 |
Investments Low Income Housing Tax Credits (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Low Income Housing Tax Credits [Abstract] | ||||
Affordable Housing Tax Credits | $ 8.3 | $ 9.4 | $ 16.6 | $ 18.8 |
Amortization of Affordable Housing Tax Credit Investments | (5.5) | (6.1) | (11.0) | (12.9) |
Tax Benefits from Low Income Housing Investments | $ 2.8 | $ 3.3 | $ 5.6 | $ 5.9 |
Mortgage Loans by Property Type and Geographic Region (Detail) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 2,434.4 | $ 2,397.0 |
New England | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 41.0 | $ 28.9 |
Mortgage Loans, Percent of Total | 1.70% | 1.20% |
Mid-Atlantic | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 206.5 | $ 184.5 |
Mortgage Loans, Percent of Total | 8.50% | 7.70% |
East North Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 344.3 | $ 329.2 |
Mortgage Loans, Percent of Total | 14.10% | 13.70% |
West North Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 208.0 | $ 215.4 |
Mortgage Loans, Percent of Total | 8.50% | 9.00% |
South Atlantic | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 517.9 | $ 509.2 |
Mortgage Loans, Percent of Total | 21.30% | 21.20% |
East South Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 112.0 | $ 114.3 |
Mortgage Loans, Percent of Total | 4.60% | 4.80% |
West South Central | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 261.4 | $ 246.6 |
Mortgage Loans, Percent of Total | 10.70% | 10.30% |
Mountain | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 254.2 | $ 268.2 |
Mortgage Loans, Percent of Total | 10.40% | 11.20% |
Pacific | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 489.1 | $ 500.7 |
Mortgage Loans, Percent of Total | 20.20% | 20.90% |
Total | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Percent of Total | 100000000.00% | 100000000.00% |
Apartment | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 641.0 | $ 608.8 |
Mortgage Loans, Percent of Total | 26.30% | 25.40% |
Industrial | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 609.8 | $ 623.6 |
Mortgage Loans, Percent of Total | 25.00% | 26.00% |
Office | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 533.4 | $ 549.3 |
Mortgage Loans, Percent of Total | 21.90% | 22.90% |
Retail | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 603.2 | $ 567.5 |
Mortgage Loans, Percent of Total | 24.90% | 23.70% |
Other Property | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 47.0 | $ 47.8 |
Mortgage Loans, Percent of Total | 1.90% | 2.00% |
Total | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Percent of Total | 100.00% | 100.00% |
Schedule of Participating Mortgage Loans by Internal Credit Rating and Loan to Value (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 2,434.4 | $ 2,397.0 |
Loan to Value Ratio Below or Equal to 65 Percent | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 1,256.0 | $ 1,215.1 |
Mortgage Loans, Percent of Total | 51.50% | 50.70% |
Loan To Value Ratio Above 65 To 75 Percent | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 1,065.4 | $ 1,053.0 |
Mortgage Loans, Percent of Total | 43.80% | 43.90% |
Loan To Value Ratio Above 75 To 85 Percent | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 40.2 | $ 91.4 |
Mortgage Loans, Percent of Total | 1.70% | 3.80% |
Loan To Value Ratio Above 85 Percent | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 72.8 | $ 37.5 |
Mortgage Loans, Percent of Total | 3.00% | 1.60% |
Total | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Percent of Total | 100.00% | 100.00% |
A Credit Rating | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 476.1 | $ 485.6 |
Mortgage Loans, Percent of Total | 19.60% | 20.30% |
BBB Credit Rating | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 1,912.2 | $ 1,911.4 |
Mortgage Loans, Percent of Total | 78.50% | 79.70% |
BB Credit Rating | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 29.6 | $ 0.0 |
Mortgage Loans, Percent of Total | 1.20% | 0.00% |
B Credit Rating | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Carrying Amount | $ 16.5 | $ 0.0 |
Mortgage Loans, Percent of Total | 0.70% | 0.00% |
Total | ||
Mortgage Loans on Real Estate | ||
Mortgage Loans, Percent of Total | 100.00% | 100.00% |
Mortgage Loans, Sorted by Applicable Credit Quality Indicators (Detail) - USD ($) $ in Millions |
Jun. 30, 2020 |
Mar. 31, 2020 |
Jan. 01, 2020 |
Dec. 31, 2019 |
---|---|---|---|---|
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | $ 2,434.4 | $ 2,397.0 | ||
Loan to Value Ratio Below or Equal to 65 Percent | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 1,256.0 | 1,215.1 | ||
Loan To Value Ratio Above 65 To 75 Percent | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 1,065.4 | 1,053.0 | ||
Loan To Value Ratio Above 75 To 85 Percent | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 40.2 | 91.4 | ||
Loan To Value Ratio Above 85 Percent | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 72.8 | 37.5 | ||
Originated Five or More Years before Last Fiscal Year | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 809.2 | |||
Originated Four Years before Last Fiscal Year | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 408.3 | |||
Originated Three Years before Last Fiscal Year | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 334.2 | |||
Originated Two Years before Last Fiscal Year | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 392.6 | |||
Originated in Fiscal Year before Latest Fiscal Year | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 369.6 | |||
Originated in Current Fiscal Year | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 120.5 | |||
Commercial Real Estate | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 811.9 | |||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 410.3 | |||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 336.2 | |||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 395.4 | |||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 372.5 | |||
Financing Receivable, Originated in Current Fiscal Year | 121.3 | |||
Financing Receivable, before Allowance for Credit Loss | 2,447.6 | 2,397.0 | ||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 13.2 | |||
Commercial Real Estate | Loan to Value Ratio Below or Equal to 65 Percent | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 665.4 | |||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 260.3 | |||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 136.6 | |||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 78.2 | |||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 83.8 | |||
Financing Receivable, Originated in Current Fiscal Year | 35.5 | |||
Financing Receivable, before Allowance for Credit Loss | 1,259.8 | |||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 3.9 | $ 3.5 | $ 2.8 | |
Commercial Real Estate | Loan To Value Ratio Above 65 To 75 Percent | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 69.0 | |||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 113.0 | |||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 199.6 | |||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 317.2 | |||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 288.7 | |||
Financing Receivable, Originated in Current Fiscal Year | 85.8 | |||
Financing Receivable, before Allowance for Credit Loss | 1,073.3 | |||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 7.9 | 6.5 | 4.6 | |
Commercial Real Estate | Loan To Value Ratio Above 75 To 85 Percent | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 3.6 | |||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 37.0 | |||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 0.0 | |||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0.0 | |||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0.0 | |||
Financing Receivable, Originated in Current Fiscal Year | 0.0 | |||
Financing Receivable, before Allowance for Credit Loss | 40.6 | |||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 1.0 | 0.4 | 0.5 | |
Commercial Real Estate | Loan To Value Ratio Above 85 Percent | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 73.9 | |||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 0.0 | |||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 0.0 | |||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0.0 | |||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0.0 | |||
Financing Receivable, Originated in Current Fiscal Year | 0.0 | |||
Financing Receivable, before Allowance for Credit Loss | 73.9 | |||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 0.4 | $ 0.7 | $ 0.4 | |
Commercial Real Estate | Originated Five or More Years before Last Fiscal Year | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 2.7 | |||
Commercial Real Estate | Originated Four Years before Last Fiscal Year | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 2.0 | |||
Commercial Real Estate | Originated Three Years before Last Fiscal Year | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 2.0 | |||
Commercial Real Estate | Originated Two Years before Last Fiscal Year | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 2.8 | |||
Commercial Real Estate | Originated in Fiscal Year before Latest Fiscal Year | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 2.9 | |||
Commercial Real Estate | Originated in Current Fiscal Year | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 0.8 | |||
A Credit Rating | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 476.1 | 485.6 | ||
A Credit Rating | Commercial Real Estate | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 228.4 | |||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 118.3 | |||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 52.9 | |||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 60.3 | |||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 17.4 | |||
Financing Receivable, Originated in Current Fiscal Year | 0.0 | |||
Financing Receivable, before Allowance for Credit Loss | 477.3 | |||
BBB Credit Rating | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 1,912.2 | 1,911.4 | ||
BBB Credit Rating | Commercial Real Estate | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 537.1 | |||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 292.0 | |||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 283.3 | |||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 335.1 | |||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 355.1 | |||
Financing Receivable, Originated in Current Fiscal Year | 121.3 | |||
Financing Receivable, before Allowance for Credit Loss | 1,923.9 | |||
BB Credit Rating | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 29.6 | 0.0 | ||
BB Credit Rating | Commercial Real Estate | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 29.8 | |||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 0.0 | |||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 0.0 | |||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0.0 | |||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0.0 | |||
Financing Receivable, Originated in Current Fiscal Year | 0.0 | |||
Financing Receivable, before Allowance for Credit Loss | 29.8 | |||
B Credit Rating | ||||
Mortgage Loans on Real Estate | ||||
Mortgage Loans, Carrying Amount | 16.5 | $ 0.0 | ||
B Credit Rating | Commercial Real Estate | ||||
Mortgage Loans on Real Estate | ||||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 16.6 | |||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 0.0 | |||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 0.0 | |||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0.0 | |||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0.0 | |||
Financing Receivable, Originated in Current Fiscal Year | 0.0 | |||
Financing Receivable, before Allowance for Credit Loss | $ 16.6 |
Mortgage Loans, Allowance for Credit Losses Rollforward (Details) - Commercial Real Estate - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2020 |
Jun. 30, 2020 |
|
Financing Receivable, Allowance for Credit Loss Rollforward, Mortgage Loans | ||
Financing Receivable, Allowance for Credit Loss, Ending Balance | $ 13.2 | $ 13.2 |
Loan to Value Ratio Below or Equal to 65 Percent | ||
Financing Receivable, Allowance for Credit Loss Rollforward, Mortgage Loans | ||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 3.5 | |
Current Period Provisions | 0.4 | 1.1 |
Write-offs | 0.0 | 0.0 |
Recoveries | 0.0 | 0.0 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 3.9 | 3.9 |
Loan To Value Ratio Above 65 To 75 Percent | ||
Financing Receivable, Allowance for Credit Loss Rollforward, Mortgage Loans | ||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 6.5 | |
Current Period Provisions | 1.4 | 3.3 |
Write-offs | 0.0 | 0.0 |
Recoveries | 0.0 | 0.0 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 7.9 | 7.9 |
Loan To Value Ratio Above 75 To 85 Percent | ||
Financing Receivable, Allowance for Credit Loss Rollforward, Mortgage Loans | ||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 0.4 | |
Current Period Provisions | 0.6 | 0.5 |
Write-offs | 0.0 | 0.0 |
Recoveries | 0.0 | 0.0 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 1.0 | 1.0 |
Loan To Value Ratio Above 85 Percent | ||
Financing Receivable, Allowance for Credit Loss Rollforward, Mortgage Loans | ||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 0.7 | |
Current Period Provisions | (0.3) | 0.0 |
Write-offs | 0.0 | 0.0 |
Recoveries | 0.0 | 0.0 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | 0.4 | 0.4 |
Loan to Value Ratio Total | ||
Financing Receivable, Allowance for Credit Loss Rollforward, Mortgage Loans | ||
Financing Receivable, Allowance for Credit Loss, Beginning Balance | 11.1 | |
Current Period Provisions | 2.1 | 4.9 |
Write-offs | 0.0 | 0.0 |
Recoveries | 0.0 | 0.0 |
Financing Receivable, Allowance for Credit Loss, Ending Balance | $ 13.2 | $ 13.2 |
Investments Federal Home Loan Bank Carrying Amount, Collateral Posted and Advances Received (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Federal Home Loan Bank Carrying Value of Common Stock, Collateral Posted and Advances | ||
Federal Home Loan Bank Common Stock | $ 27.5 | $ 18.5 |
Federal Home Loan Bank, Advances | 162.1 | 0.0 |
Federal Home Loan Bank, Collateral Posted to FHLB | 1,900.2 | 346.5 |
Fixed Maturity Securities | ||
Federal Home Loan Bank Carrying Value of Common Stock, Collateral Posted and Advances | ||
Federal Home Loan Bank, Collateral Posted to FHLB | 990.8 | 182.1 |
Commercial Mortgage Loans | ||
Federal Home Loan Bank Carrying Value of Common Stock, Collateral Posted and Advances | ||
Federal Home Loan Bank, Collateral Posted to FHLB | $ 909.4 | $ 164.4 |
Investments Schedule of Financial Instrument and Derivative Offsetting (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Offsetting Derivative Assets | ||
Derivative Asset, Fair Value, Gross Asset | $ 63.1 | $ 27.5 |
Derivative Liabilities Offsetting Derivative Assets in Balance Sheet | 0.0 | 0.0 |
Net Derivative Assets Reported in Balance Sheet | 63.1 | 27.5 |
Securities Received as Collateral on Derivative Assets | (15.8) | (4.0) |
Cash Collateral from Counterparties | (47.0) | (23.5) |
Derivative Assets Net of Collateral | 0.3 | 0.0 |
Offsetting Securities Borrowed | ||
Gross Securities Borrowed | 0.0 | 176.4 |
Liabilities Offsetting Securities Borrowed in Balance Sheet | 0.0 | |
Net Securities Borrowed Reported in Balance Sheet | 176.4 | |
Securities Received as Collateral on Securities Borrowed | (176.4) | |
Cash Received as Collateral on Securities Borrowed | 0.0 | |
Securities Borrowed Net of Collateral | 0.0 | |
Offsetting Financial Assets | ||
Gross Financial Assets | 203.9 | |
Financial Liabilities Offsetting Financial Assets in Balance Sheet | 0.0 | |
Net Financial Assets Reported in Balance Sheet | 203.9 | |
Securities Received as Collateral on Financial Assets | (180.4) | |
Cash Received as Collateral on Financial Assets | (23.5) | |
Financial Assets Net of Collateral | 0.0 | |
Offsetting Derivative Liabilities | ||
Net Derivative Liabilities Reported in Balance Sheet | 99.7 | 57.4 |
Over the Counter | ||
Offsetting Derivative Liabilities | ||
Gross Derivative Liability | 31.9 | 34.6 |
Derivative Assets Offsetting Derivative Liabilities in Balance Sheet | 0.0 | 0.0 |
Net Derivative Liabilities Reported in Balance Sheet | 31.9 | 34.6 |
Securities Given as Collateral on Derivative Liabilities | (31.9) | (31.3) |
Cash Collateral to counterparties | 0.0 | 0.0 |
Derivative Liabilities Net of Collateral | $ 0.0 | $ 3.3 |
Investments Investment Income (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|||||
Net Investment Income | ||||||||
Investment Income, Interest and Dividend | $ 579.6 | $ 635.4 | $ 1,176.3 | $ 1,242.4 | ||||
Less Investment Expenses | 7.6 | 7.3 | 16.1 | 16.3 | ||||
Less Investment Income on PFA Assets | 3.0 | 3.2 | 6.2 | 6.5 | ||||
Net Investment Income | 569.0 | 624.9 | 1,154.0 | 1,219.6 | ||||
Fixed Maturity Securities | ||||||||
Net Investment Income | ||||||||
Investment Income, Interest and Dividend | 542.5 | 564.7 | 1,082.3 | 1,109.6 | ||||
Derivatives | ||||||||
Net Investment Income | ||||||||
Investment Income, Interest and Dividend | 20.7 | 18.0 | 40.9 | 35.9 | ||||
Mortgage Loans | ||||||||
Net Investment Income | ||||||||
Investment Income, Interest and Dividend | 28.0 | 24.9 | 57.0 | 51.6 | ||||
Policy Loans | ||||||||
Net Investment Income | ||||||||
Investment Income, Interest and Dividend | 5.0 | 4.8 | 9.8 | 9.5 | ||||
Perpetual Preferred Securities | ||||||||
Net Investment Income | ||||||||
Investment Income, Interest and Dividend | [1] | 10.6 | 0.4 | (6.5) | 4.5 | |||
Private Equity Partnerships | ||||||||
Net Investment Income | ||||||||
Investment Income, Interest and Dividend | [2] | (31.3) | 12.6 | (20.9) | 14.8 | |||
Other Long-term Investments | ||||||||
Net Investment Income | ||||||||
Investment Income, Interest and Dividend | 1.7 | 3.3 | 4.9 | 2.8 | ||||
Short-term Investments | ||||||||
Net Investment Income | ||||||||
Investment Income, Interest and Dividend | $ 2.4 | $ 6.7 | $ 8.8 | $ 13.7 | ||||
|
Realized Investment Gains and Losses Reported in Consolidated Statements of Income (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Fixed Maturity Securities | ||||
Gross Gains on Sales | $ 3.6 | $ 7.9 | $ 5.0 | $ 11.2 |
Gross Losses on Sales | (4.1) | (16.9) | (4.8) | (24.8) |
Credit Losses | (5.4) | 0.0 | (59.3) | 0.0 |
Mortgage Loans and Other Invested Assets | ||||
Gross Gains on Sales | 0.0 | 3.0 | 0.3 | 3.9 |
Gross Losses on Sales | 0.0 | 0.0 | (0.2) | (0.1) |
Credit Losses | (2.0) | 0.0 | (4.6) | 0.0 |
Embedded Derivative in Modified Coinsurance Arrangement | 41.9 | (0.8) | (45.0) | 4.7 |
All Other Derivatives | (1.0) | (0.9) | (1.7) | (0.6) |
Foreign Currency Transactions | 0.8 | 0.4 | 0.1 | (0.5) |
Net Realized Investment Gain (Loss) | $ 33.8 | $ (7.3) | $ (110.2) | $ (6.2) |
Investments - Additional Information (Detail) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020
USD ($)
Integer
|
Jun. 30, 2019
USD ($)
Integer
|
Jun. 30, 2020
USD ($)
Integer
|
Jun. 30, 2019
USD ($)
Integer
|
Dec. 31, 2019
USD ($)
|
|
Schedule of Investments | |||||
Commitment to Fund Private Placement Fixed Maturity Securities | $ 100,700,000 | $ 100,700,000 | |||
Other Long-term Investments | 933,900,000 | 933,900,000 | $ 844,200,000 | ||
Unfunded Commitments | 1,800,000 | 1,800,000 | |||
Accrued Investment Income | 802,700,000 | 802,700,000 | 693,000,000.0 | ||
Loan Foreclosure Expense | 0 | $ 0 | 0 | $ 0 | |
Commitments to Fund Commercial Mortgage Loans | $ 0 | $ 0 | |||
Repurchase agreements - Typical Days outstanding | 30 | ||||
Minimum percent of the fair value of securities loaned or securities purchased under repurchase agreements be maintained as collateral | 102.00% | 102.00% | |||
Gross Securities Borrowed | $ 0 | $ 0 | 176,400,000 | ||
Outstanding Repurchase Agreements | 0 | 0 | 0 | ||
Off Balance Sheet Amount | |||||
Schedule of Investments | |||||
Securities Received as Collateral | 186,500,000 | ||||
Commercial Real Estate | |||||
Schedule of Investments | |||||
Financing Receivable, before Allowance for Credit Loss, Mortgage Loans | 2,447,600,000 | 2,447,600,000 | 2,397,000,000.0 | ||
Financing Receivable, Allowance for Credit Losses, Mortgage Loans | 13,200,000 | 13,200,000 | |||
Accrued Investment Income | $ 8,900,000 | $ 8,900,000 | 8,300,000 | ||
Financing Receivable, Modifications, Number of Contracts | Integer | 0 | 0 | 0 | 0 | |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 0 | $ 0 | 0 | ||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 0 | $ 0 | 0 | $ 1,100,000 | |
Unfunded Mortgage Loan Commitments | |||||
Schedule of Investments | |||||
Allowance for Credit Losses, Unfunded Mortgage Loan Commitments | 0 | 0 | |||
Variable Interest Entity, Not Primary Beneficiary | |||||
Schedule of Investments | |||||
Other Long-term Investments | 710,300,000 | 710,300,000 | 675,100,000 | ||
Tax Credit Partnership | Variable Interest Entity, Not Primary Beneficiary | |||||
Schedule of Investments | |||||
Other Long-term Investments | 43,700,000 | 43,700,000 | 58,400,000 | ||
Equity Method Investments | Variable Interest Entity, Not Primary Beneficiary | |||||
Schedule of Investments | |||||
Other Long-term Investments | $ 666,600,000 | $ 666,600,000 | $ 616,700,000 | ||
External Credit Rating, Investment Grade | |||||
Schedule of Investments | |||||
Number of Fixed Maturity Securities in an Unrealized Loss Position | 90 | 90 | |||
Number of Fixed Maturity Securities in an Unrealized Loss Position Continuously for Over One Year | 5 | 5 | |||
External Credit Rating, Below-Investment-Grade | |||||
Schedule of Investments | |||||
Number of Fixed Maturity Securities in an Unrealized Loss Position | 88 | 88 | |||
Number of Fixed Maturity Securities in an Unrealized Loss Position Continuously for Over One Year | 15 | 15 |
Derivative Financial Instruments Nature and Amount of Collateral Received From and Posted To Our Derivative Counterparties (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Derivative | ||
Cash Collateral from Counterparties | $ 47.0 | $ 23.5 |
Carrying Value of Fixed Maturity Securities Posted as Collateral to Counterparties | 15.8 | 4.0 |
Cash | ||
Derivative | ||
Cash Collateral from Counterparties | 48.9 | 24.0 |
Fixed Maturity Securities | ||
Derivative | ||
Carrying Value of Fixed Maturity Securities Posted as Collateral to Counterparties | $ 18.5 | $ 28.6 |
Notional Amounts for Each Category of Derivative Activity (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Derivative | ||||
Balance at beginning of period | $ 931.4 | $ 808.1 | $ 881.4 | $ 799.2 |
Additions | 0.0 | 67.5 | 52.0 | 123.1 |
Terminations | 0.0 | 55.2 | 1.3 | 102.1 |
Foreign Currency | 0.0 | (0.7) | (0.7) | (0.5) |
Balance at end of period | 931.4 | 819.7 | 931.4 | 819.7 |
Interest Rate Swaps | Receive Fixed/Pay Fixed | ||||
Derivative | ||||
Balance at beginning of period | 663.1 | 533.9 | 611.1 | 538.2 |
Additions | 0.0 | 57.0 | 52.0 | 99.6 |
Terminations | 0.0 | 32.1 | 0.0 | 79.0 |
Foreign Currency | 0.0 | 0.0 | 0.0 | 0.0 |
Balance at end of period | 663.1 | 558.8 | 663.1 | 558.8 |
Interest Rate Swaps | Receive Fixed/Pay Variable | ||||
Derivative | ||||
Balance at beginning of period | 250.0 | 250.0 | 250.0 | 250.0 |
Additions | 0.0 | 0.0 | 0.0 | 0.0 |
Terminations | 0.0 | 0.0 | 0.0 | 0.0 |
Foreign Currency | 0.0 | 0.0 | 0.0 | 0.0 |
Balance at end of period | 250.0 | 250.0 | 250.0 | 250.0 |
Credit Default Swaps | Credit Default Swaps | ||||
Derivative | ||||
Balance at beginning of period | 10.7 | 11.2 | 11.4 | 11.0 |
Additions | 0.0 | 0.0 | 0.0 | 0.0 |
Terminations | 0.0 | 0.0 | 0.0 | 0.0 |
Foreign Currency | 0.0 | (0.3) | (0.7) | (0.1) |
Balance at end of period | 10.7 | 10.9 | 10.7 | 10.9 |
Forwards | ||||
Derivative | ||||
Balance at beginning of period | 7.6 | 13.0 | 8.9 | 0.0 |
Additions | 0.0 | 10.5 | 0.0 | 23.5 |
Terminations | 0.0 | 23.1 | 1.3 | 23.1 |
Foreign Currency | 0.0 | (0.4) | 0.0 | (0.4) |
Balance at end of period | $ 7.6 | $ 0.0 | $ 7.6 | $ 0.0 |
Derivative Financial Instruments Fair Value Hedges Carrying Amount of Hedged Assets and Liabilities and Cumulative Basis Adjustments (Details) - Interest Rate Swaps - Designated as Hedging Instrument - Fair Value Hedging - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Fixed Maturity Securities | Receive Fixed/Pay Fixed | ||
Derivative Instruments and Hedging Activities Disclosures | ||
Hedged Asset, Fair Value Hedge | $ 236.1 | $ 239.4 |
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | (1.8) | 1.1 |
Long-term Debt | Receive Fixed/Pay Variable | ||
Derivative Instruments and Hedging Activities Disclosures | ||
Hedged Liability, Fair Value Hedge | (250.5) | (249.2) |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | $ (0.6) | $ 0.6 |
Location and Fair Values of Derivative Financial Instruments (Detail) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Derivative | ||
Asset Derivatives Fair Value | $ 63.1 | $ 27.5 |
Designated as Hedging Instrument | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 62.0 | 27.0 |
Designated as Hedging Instrument | Other Long-term Investments | Fair Value Hedging | ||
Derivative | ||
Asset Derivatives Fair Value | 33.0 | 7.6 |
Designated as Hedging Instrument | Other Long-term Investments | Foreign Exchange Contracts | Cash Flow Hedging | ||
Derivative | ||
Asset Derivatives Fair Value | 29.0 | 19.4 |
Designated as Hedging Instrument | Other Long-term Investments | Foreign Exchange Contracts | Fair Value Hedging | ||
Derivative | ||
Asset Derivatives Fair Value | 32.4 | 7.6 |
Designated as Hedging Instrument | Other Long-term Investments | Interest Rate Swaps | Fair Value Hedging | ||
Derivative | ||
Asset Derivatives Fair Value | 0.6 | 0.0 |
Designated as Hedging Instrument | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 7.2 | 12.2 |
Designated as Hedging Instrument | Other Liabilities | Fair Value Hedging | ||
Derivative | ||
Liability Derivatives Fair Value | 2.7 | 5.6 |
Designated as Hedging Instrument | Other Liabilities | Foreign Exchange Contracts | Cash Flow Hedging | ||
Derivative | ||
Liability Derivatives Fair Value | 4.5 | 6.6 |
Designated as Hedging Instrument | Other Liabilities | Foreign Exchange Contracts | Fair Value Hedging | ||
Derivative | ||
Liability Derivatives Fair Value | 2.7 | 5.0 |
Designated as Hedging Instrument | Other Liabilities | Interest Rate Swaps | Fair Value Hedging | ||
Derivative | ||
Liability Derivatives Fair Value | 0.0 | 0.6 |
Not Designated as Hedging Instrument | Other Long-term Investments | ||
Derivative | ||
Asset Derivatives Fair Value | 1.1 | 0.5 |
Not Designated as Hedging Instrument | Other Long-term Investments | Forwards | ||
Derivative | ||
Asset Derivatives Fair Value | 0.3 | |
Not Designated as Hedging Instrument | Other Long-term Investments | Foreign Exchange Contracts | ||
Derivative | ||
Asset Derivatives Fair Value | 0.3 | 0.0 |
Not Designated as Hedging Instrument | Other Long-term Investments | Credit Default Swaps | ||
Derivative | ||
Asset Derivatives Fair Value | 0.5 | 0.5 |
Not Designated as Hedging Instrument | Other Long-term Investments | Embedded Derivative in Modified Coinsurance Arrangement | ||
Derivative | ||
Asset Derivatives Fair Value | 0.0 | 0.0 |
Not Designated as Hedging Instrument | Other Liabilities | ||
Derivative | ||
Liability Derivatives Fair Value | 92.5 | 45.2 |
Not Designated as Hedging Instrument | Other Liabilities | Forwards | ||
Derivative | ||
Liability Derivatives Fair Value | 0.0 | |
Not Designated as Hedging Instrument | Other Liabilities | Foreign Exchange Contracts | ||
Derivative | ||
Liability Derivatives Fair Value | 24.7 | 22.4 |
Not Designated as Hedging Instrument | Other Liabilities | Credit Default Swaps | ||
Derivative | ||
Liability Derivatives Fair Value | 0.0 | 0.0 |
Not Designated as Hedging Instrument | Other Liabilities | Embedded Derivative in Modified Coinsurance Arrangement | ||
Derivative | ||
Liability Derivatives Fair Value | $ 67.8 | $ 22.8 |
Derivative Financial Instruments Location of Gains and Losses Designated as Hedging Instruments, Consolidated Statements of Income (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Derivative Instruments, Gain (Loss) | ||||
Net Investment Income | $ 569.0 | $ 624.9 | $ 1,154.0 | $ 1,219.6 |
Net Realized Investment Gain (Loss) | 33.8 | (7.3) | (110.2) | (6.2) |
Interest and Debt Expense | 47.5 | 42.6 | 93.2 | 84.7 |
Derivative, Gain (Loss) on Derivative, Net | 1.0 | 0.9 | 1.7 | 0.6 |
Designated as Hedging Instrument | Interest Rate Swaps | Net Investment Income | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Net Investment Income | 73.0 | 75.1 | 146.0 | 147.5 |
Derivative, Gain (Loss) on Derivative, Net | 19.7 | 17.9 | 38.9 | 35.6 |
Designated as Hedging Instrument | Interest Rate Swaps | Net Investment Income | Fair Value Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Net Investment Income | 0.0 | 0.0 | 0.0 | 0.0 |
Derivative, Gain (Loss) on Derivative, Net | 0.0 | 0.0 | 0.0 | 0.0 |
Designated as Hedging Instrument | Interest Rate Swaps | Net Realized Investment Gain (Loss) | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Net Realized Investment Gain (Loss) | 0.1 | 0.6 | 0.1 | (2.9) |
Derivative, Gain (Loss) on Derivative, Net | 0.4 | 0.0 | 0.4 | 4.0 |
Designated as Hedging Instrument | Interest Rate Swaps | Net Realized Investment Gain (Loss) | Fair Value Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Net Realized Investment Gain (Loss) | 0.3 | (2.1) | (1.2) | (3.6) |
Derivative, Gain (Loss) on Derivative, Net | (0.3) | 2.1 | 1.2 | 3.6 |
Designated as Hedging Instrument | Interest Rate Swaps | Interest and Debt Expense | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Interest and Debt Expense | 7.3 | 7.7 | 14.6 | 15.4 |
Derivative, Gain (Loss) on Derivative, Net | 0.7 | 0.6 | 1.3 | 1.2 |
Designated as Hedging Instrument | Interest Rate Swaps | Interest and Debt Expense | Fair Value Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Interest and Debt Expense | 3.6 | 3.6 | 7.2 | 7.2 |
Derivative, Gain (Loss) on Derivative, Net | (0.4) | 0.7 | (0.3) | 1.5 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Net Investment Income | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Net Investment Income | 3.2 | 3.7 | 6.1 | 8.3 |
Derivative, Gain (Loss) on Derivative, Net | 0.4 | (0.4) | 1.3 | (0.6) |
Designated as Hedging Instrument | Foreign Exchange Contracts | Net Investment Income | Fair Value Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Net Investment Income | 1.8 | 0.5 | 3.2 | 0.9 |
Derivative, Gain (Loss) on Derivative, Net | 1.3 | 0.4 | 2.1 | 0.7 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Net Realized Investment Gain (Loss) | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Net Realized Investment Gain (Loss) | 0.0 | 1.1 | 0.0 | 1.9 |
Derivative, Gain (Loss) on Derivative, Net | 0.0 | (1.0) | 0.0 | (1.7) |
Designated as Hedging Instrument | Foreign Exchange Contracts | Net Realized Investment Gain (Loss) | Fair Value Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Net Realized Investment Gain (Loss) | 10.3 | 1.1 | (2.9) | 0.8 |
Derivative, Gain (Loss) on Derivative, Net | (10.3) | (1.1) | 2.9 | (0.8) |
Designated as Hedging Instrument | Foreign Exchange Contracts | Interest and Debt Expense | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Interest and Debt Expense | 0.0 | 0.0 | 0.0 | 0.0 |
Derivative, Gain (Loss) on Derivative, Net | 0.0 | 0.0 | 0.0 | 0.0 |
Designated as Hedging Instrument | Foreign Exchange Contracts | Interest and Debt Expense | Fair Value Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Interest and Debt Expense | 0.0 | 0.0 | 0.0 | 0.0 |
Derivative, Gain (Loss) on Derivative, Net | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.0 |
Location of Gains and Losses on Derivative Instruments Designated as Cash Flow Hedging Instruments (Detail) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ (7.9) | $ 1.5 | $ 11.6 | $ (10.8) |
Interest Rate Swaps | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | 0.0 | (0.1) | 0.0 | (0.1) |
Foreign Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ (7.9) | $ 1.6 | $ 11.6 | $ (10.7) |
Gains and Losses on Derivatives Not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Derivative Instruments, Gain (Loss) | ||||
Net Gain (Loss) on Derivatives | $ (1.0) | $ (0.9) | $ (1.7) | $ (0.6) |
Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) | ||||
Net Gain (Loss) on Derivatives | 40.9 | (1.7) | (46.7) | 4.0 |
Credit Default Swaps | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) | ||||
Net Gain (Loss) on Derivatives | (0.9) | (0.1) | (0.1) | (0.6) |
Foreign Exchange Contracts | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) | ||||
Net Gain (Loss) on Derivatives | (0.1) | (0.8) | (1.6) | (0.1) |
Embedded Derivative in Modified Coinsurance Arrangement | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) | ||||
Net Gain (Loss) on Derivatives | $ 41.9 | $ (0.8) | $ (45.0) | $ 4.7 |
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Derivative | ||||||||
Aggregate fair value of all derivative instruments with credit risk-related contingent features in a liability position | $ 31.9 | $ 31.9 | $ 34.6 | |||||
Approximate amount of net deferred gains on derivative instruments expected to be amortized during the next twelve months | 74.3 | |||||||
Component of Derivative Gain (Loss) Excluded from the Assessment of Hedge Effectiveness | 4.5 | $ 1.6 | 24.3 | $ 1.5 | ||||
Discontinued Hedge Accounting Due to Instrument No Longer Qualifying as Fair Value Hedge | 0.0 | 0.0 | ||||||
Derivative, Notional Amount | 931.4 | 819.7 | 931.4 | 819.7 | $ 931.4 | 881.4 | $ 808.1 | $ 799.2 |
Designated as Hedging Instrument | Other Liabilities [Member] | ||||||||
Derivative | ||||||||
Gross Derivative Liability | 7.2 | 7.2 | 12.2 | |||||
Not Designated as Hedging Instrument | Other Liabilities [Member] | ||||||||
Derivative | ||||||||
Gross Derivative Liability | 92.5 | 92.5 | 45.2 | |||||
Fair Value Hedging | Designated as Hedging Instrument | Other Liabilities [Member] | ||||||||
Derivative | ||||||||
Gross Derivative Liability | 2.7 | 2.7 | 5.6 | |||||
Interest Rate Swaps | Fair Value Hedging | Designated as Hedging Instrument | Other Liabilities [Member] | ||||||||
Derivative | ||||||||
Gross Derivative Liability | 0.0 | 0.0 | 0.6 | |||||
Credit Risk Contract | Not Designated as Hedging Instrument | Other Liabilities [Member] | ||||||||
Derivative | ||||||||
Gross Derivative Liability | 0.0 | 0.0 | 0.0 | |||||
Credit Risk Contract | Credit Default Swaps | ||||||||
Derivative | ||||||||
Derivative, Notional Amount | 10.7 | 10.9 | 10.7 | 10.9 | 10.7 | 11.4 | 11.2 | 11.0 |
Credit Risk Contract | Credit Default Swaps | Not Designated as Hedging Instrument | ||||||||
Derivative | ||||||||
Derivative, Notional Amount | 10.7 | 10.7 | 11.4 | |||||
Forwards | ||||||||
Derivative | ||||||||
Derivative, Notional Amount | 7.6 | 0.0 | 7.6 | 0.0 | 7.6 | 8.9 | 13.0 | 0.0 |
Forwards | Not Designated as Hedging Instrument | ||||||||
Derivative | ||||||||
Derivative, Notional Amount | 7.6 | 7.6 | 8.9 | |||||
Forwards | Not Designated as Hedging Instrument | Other Liabilities [Member] | ||||||||
Derivative | ||||||||
Gross Derivative Liability | 0.0 | 0.0 | ||||||
Foreign Exchange Contracts | Not Designated as Hedging Instrument | Other Liabilities [Member] | ||||||||
Derivative | ||||||||
Gross Derivative Liability | 24.7 | 24.7 | 22.4 | |||||
Foreign Exchange Contracts | Cash Flow Hedging | Designated as Hedging Instrument | Other Liabilities [Member] | ||||||||
Derivative | ||||||||
Gross Derivative Liability | 4.5 | 4.5 | 6.6 | |||||
Foreign Exchange Contracts | Fair Value Hedging | Designated as Hedging Instrument | Other Liabilities [Member] | ||||||||
Derivative | ||||||||
Gross Derivative Liability | 2.7 | 2.7 | 5.0 | |||||
Credit Exposure | ||||||||
Derivative | ||||||||
Credit Exposure on Derivatives | 0.3 | 0.3 | 0.0 | |||||
Receive Fixed/Pay Fixed | Interest Rate Swaps | ||||||||
Derivative | ||||||||
Derivative, Notional Amount | 663.1 | 558.8 | 663.1 | 558.8 | 663.1 | 611.1 | 533.9 | 538.2 |
Receive Fixed/Pay Fixed | Interest Rate Swaps | Not Designated as Hedging Instrument | ||||||||
Derivative | ||||||||
Derivative, Notional Amount | 148.2 | 148.2 | 148.2 | |||||
Receive Fixed/Pay Fixed | Interest Rate Swaps | Cash Flow Hedging | Designated as Hedging Instrument | ||||||||
Derivative | ||||||||
Derivative, Notional Amount | 213.5 | 213.5 | 213.5 | |||||
Receive Fixed/Pay Fixed | Interest Rate Swaps | Fair Value Hedging | Designated as Hedging Instrument | ||||||||
Derivative | ||||||||
Derivative, Notional Amount | 301.4 | 301.4 | 249.4 | |||||
Receive Fixed/Pay Variable | Interest Rate Swaps | ||||||||
Derivative | ||||||||
Derivative, Notional Amount | 250.0 | $ 250.0 | 250.0 | $ 250.0 | $ 250.0 | 250.0 | $ 250.0 | $ 250.0 |
Receive Fixed/Pay Variable | Interest Rate Swaps | Fair Value Hedging | Designated as Hedging Instrument | ||||||||
Derivative | ||||||||
Derivative, Notional Amount | $ 250.0 | $ 250.0 | $ 250.0 |
Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Accumulated Other Comprehensive Income (Loss) | ||||
Balance at Beginning of Year | $ (217.1) | $ (502.3) | $ 37.3 | $ (814.2) |
Other Comprehensive Income (Loss) Before Reclassifications | 551.5 | 262.8 | 265.5 | 580.0 |
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | 7.2 | 3.0 | (24.4) | 8.3 |
Total Other Comprehensive Income | 544.3 | 259.8 | 289.9 | 571.7 |
Balance at End of Period | 327.2 | (242.5) | 327.2 | (242.5) |
Net Unrealized Gain on Securities | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Balance at Beginning of Year | 395.3 | (0.1) | 615.9 | (312.4) |
Other Comprehensive Income (Loss) Before Reclassifications | 563.6 | 280.6 | 300.4 | 586.0 |
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | (4.2) | (6.4) | (46.8) | (13.3) |
Total Other Comprehensive Income | 567.8 | 287.0 | 347.2 | 599.3 |
Balance at End of Period | 963.1 | 286.9 | 963.1 | 286.9 |
Net Gain on Hedges | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Balance at Beginning of Year | 210.6 | 230.1 | 187.8 | 250.6 |
Other Comprehensive Income (Loss) Before Reclassifications | (9.3) | 0.9 | 28.4 | (3.8) |
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | 15.1 | 13.0 | 30.0 | 28.8 |
Total Other Comprehensive Income | (24.4) | (12.1) | (1.6) | (32.6) |
Balance at End of Period | 186.2 | 218.0 | 186.2 | 218.0 |
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Balance at Beginning of Year | (345.2) | (287.9) | (281.6) | (305.2) |
Other Comprehensive Income (Loss) Before Reclassifications | (3.0) | (19.7) | (66.6) | (2.4) |
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | 0.0 | 0.0 | 0.0 | 0.0 |
Total Other Comprehensive Income | (3.0) | (19.7) | (66.6) | (2.4) |
Balance at End of Period | (348.2) | (307.6) | (348.2) | (307.6) |
Unrecognized Pension and Postretirement Benefit Costs | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Balance at Beginning of Year | (477.8) | (444.4) | (484.8) | (447.2) |
Other Comprehensive Income (Loss) Before Reclassifications | 0.2 | 1.0 | 3.3 | 0.2 |
Amounts Reclassified from Accumulated Other Comprehensive Income or Loss | (3.7) | (3.6) | (7.6) | (7.2) |
Total Other Comprehensive Income | 3.9 | 4.6 | 10.9 | 7.4 |
Balance at End of Period | $ (473.9) | $ (439.8) | $ (473.9) | $ (439.8) |
Schedule of Components of Unrealized Gain (Loss) on Securities (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Change in Components of Net Unrealized Gain on Securities | ||||
Change in Net Unrealized Gain on Securities | $ 2,507.7 | $ 1,047.7 | $ 841.0 | $ 2,292.8 |
Fixed Maturity Securities | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | 4,261.2 | 4,308.4 | 6,364.4 | 2,736.5 |
Change in Net Unrealized Gain on Securities | 3,161.6 | 1,327.0 | 1,058.4 | 2,898.9 |
End of Period Balance | 7,422.8 | 5,635.4 | 7,422.8 | 5,635.4 |
Deferred Acquisition Costs | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | (37.4) | (42.6) | (62.7) | (27.9) |
Change in Net Unrealized Gain on Securities | (32.0) | (14.4) | (6.7) | (29.1) |
End of Period Balance | (69.4) | (57.0) | (69.4) | (57.0) |
Reserve for Future Policy and Contract Benefits | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | (3,899.5) | (4,451.0) | (5,803.1) | (3,220.3) |
Change in Net Unrealized Gain on Securities | (2,560.3) | (1,004.7) | (656.7) | (2,235.4) |
End of Period Balance | (6,459.8) | (5,455.7) | (6,459.8) | (5,455.7) |
Reinsurance Recoverable | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | 322.7 | 328.5 | 424.7 | 261.4 |
Change in Net Unrealized Gain on Securities | 141.8 | 57.2 | 39.8 | 124.3 |
End of Period Balance | 464.5 | 385.7 | 464.5 | 385.7 |
Income Tax | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | (251.7) | (143.4) | (307.4) | (62.1) |
Change in Net Unrealized Gain on Securities | (143.3) | (78.1) | (87.6) | (159.4) |
End of Period Balance | (395.0) | (221.5) | (395.0) | (221.5) |
Net Unrealized Gain on Securities | ||||
Change in Components of Net Unrealized Gain on Securities | ||||
Beginning of Period Balance | 395.3 | (0.1) | 615.9 | (312.4) |
Change in Net Unrealized Gain on Securities | 567.8 | 287.0 | 347.2 | 599.3 |
End of Period Balance | $ 963.1 | $ 286.9 | $ 963.1 | $ 286.9 |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Net Investment Income | $ 569.0 | $ 624.9 | $ 1,154.0 | $ 1,219.6 |
Interest and Debt Expense | (47.5) | (42.6) | (93.2) | (84.7) |
Other Expenses | (256.3) | (229.9) | (491.9) | (467.8) |
Income Before Income Tax | 337.6 | 352.0 | 539.7 | 705.3 |
Income Tax Expense (Benefit) | 72.1 | 70.8 | 113.2 | 143.2 |
Net Income | 265.5 | 281.2 | 426.5 | 562.1 |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gain on Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments | 0.0 | (8.1) | 0.0 | (16.8) |
Other-Than-Temporary Impairment Loss | (5.4) | 0.0 | (59.3) | 0.0 |
Income Before Income Tax | (5.4) | (8.1) | (59.3) | (16.8) |
Income Tax Expense (Benefit) | (1.2) | (1.7) | (12.5) | (3.5) |
Net Income | (4.2) | (6.4) | (46.8) | (13.3) |
Reclassification out of Accumulated Other Comprehensive Income | Net Gain on Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Income Before Income Tax | 19.3 | 16.4 | 38.0 | 36.4 |
Income Tax Expense (Benefit) | 4.2 | 3.4 | 8.0 | 7.6 |
Net Income | 15.1 | 13.0 | 30.0 | 28.8 |
Reclassification out of Accumulated Other Comprehensive Income | Net Gain on Hedges | Interest Rate Swaps | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments | 0.4 | 0.4 | 0.4 | 4.4 |
Net Investment Income | 18.9 | 17.6 | 37.7 | 35.0 |
Interest and Debt Expense | (0.5) | (0.5) | (1.1) | (1.0) |
Reclassification out of Accumulated Other Comprehensive Income | Net Gain on Hedges | Foreign Exchange Contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments | 0.0 | (1.0) | 0.0 | (1.8) |
Net Investment Income | 0.5 | (0.1) | 1.0 | (0.2) |
Reclassification out of Accumulated Other Comprehensive Income | Net Actuarial Loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Other Expenses | (4.9) | (4.6) | (9.9) | (9.3) |
Reclassification out of Accumulated Other Comprehensive Income | Prior Service Credit | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Other Expenses | 0.0 | 0.0 | 0.1 | 0.1 |
Reclassification out of Accumulated Other Comprehensive Income | Unrecognized Pension and Postretirement Benefit Costs | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Income Before Income Tax | (4.9) | (4.6) | (9.8) | (9.2) |
Income Tax Expense (Benefit) | (1.2) | (1.0) | (2.2) | (2.0) |
Net Income | $ (3.7) | $ (3.6) | $ (7.6) | $ (7.2) |
Liability for Unpaid Claims and Claims Adjustment Expense (Detail) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense | ||
Balance at January 1 | $ 23,076.7 | $ 23,149.0 |
Less Reinsurance Recoverable | 2,246.8 | 2,227.3 |
Net Balance at January 1 | 20,829.9 | 20,921.7 |
Incurred Related to | ||
Current Year | 3,187.2 | 3,101.9 |
Paid Related to | ||
Current Year | (1,015.9) | (973.4) |
Prior Years | (2,546.6) | (2,542.1) |
Total Paid | (3,562.5) | (3,515.5) |
Net Balance at June 30 | 20,582.4 | 20,842.9 |
Plus Reinsurance Recoverable | 2,260.2 | 2,247.7 |
Balance at June 30 | 22,842.6 | 23,090.6 |
Amount Related to Interest | ||
Incurred Related to | ||
Prior Years | 528.5 | 545.5 |
Incurred Claims | ||
Incurred Related to | ||
Prior Years | (270.5) | (202.2) |
Foreign Currency | ||
Incurred Related to | ||
Prior Years | (130.2) | (8.5) |
Operating Expense | ||
Incurred Related to | ||
Total Incurred | $ 3,315.0 | $ 3,436.7 |
Reconciliation of Policy and Contract Benefits and Reserves for Future Policy and Contract Benefits (Detail) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|
Insurance [Abstract] | ||||
Policy and Contract Benefits | $ 1,778.8 | $ 1,745.5 | $ 1,751.4 | |
Reserves for Future Policy and Contract Benefits | 48,335.1 | 47,780.1 | 47,138.3 | |
Total Policy and Contract Benefits and Reserves for Future Policy and Contract Benefits | 50,113.9 | 48,889.7 | ||
Life Reserves for Future Policy and Contract Benefits | 8,436.7 | 8,335.1 | ||
Accident and Health Active Life Reserves | 12,374.8 | 12,008.3 | ||
Adjustment Related to Unrealized Investment Gains and Losses | 6,459.8 | 5,455.7 | ||
Liability for Unpaid Claims and Claim Adjustment Expense | $ 22,842.6 | $ 23,076.7 | $ 23,090.6 | $ 23,149.0 |
Premium Income by Major Line of Business within Each Segment (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Segment Reporting Information | ||||
Premium Income | $ 2,368.7 | $ 2,343.1 | $ 4,740.1 | $ 4,681.8 |
Operating Segments | ||||
Segment Reporting Information | ||||
Premium Income | 2,368.7 | 2,343.1 | 4,740.1 | 4,681.8 |
Operating Segments | Unum US | ||||
Segment Reporting Information | ||||
Premium Income | 1,522.7 | 1,504.5 | 3,050.4 | 3,006.4 |
Operating Segments | Unum US | Group Long-term Disability | ||||
Segment Reporting Information | ||||
Premium Income | 461.0 | 457.2 | 924.0 | 910.1 |
Operating Segments | Unum US | Group Short-term Disability | ||||
Segment Reporting Information | ||||
Premium Income | 203.6 | 187.6 | 406.8 | 376.3 |
Operating Segments | Unum US | Group Life | ||||
Segment Reporting Information | ||||
Premium Income | 414.6 | 420.0 | 829.1 | 834.4 |
Operating Segments | Unum US | Accidental Death & Dismemberment | ||||
Segment Reporting Information | ||||
Premium Income | 41.7 | 41.7 | 83.4 | 82.7 |
Operating Segments | Unum US | Individual Disability | ||||
Segment Reporting Information | ||||
Premium Income | 113.1 | 108.5 | 222.6 | 219.2 |
Operating Segments | Unum US | Voluntary Benefits | ||||
Segment Reporting Information | ||||
Premium Income | 224.0 | 228.6 | 454.4 | 463.0 |
Operating Segments | Unum US | Dental and Vision | ||||
Segment Reporting Information | ||||
Premium Income | 64.7 | 60.9 | 130.1 | 120.7 |
Operating Segments | Unum International | ||||
Segment Reporting Information | ||||
Premium Income | 157.1 | 158.6 | 321.7 | 312.6 |
Operating Segments | Unum International | Group Long-term Disability | ||||
Segment Reporting Information | ||||
Premium Income | 89.0 | 89.6 | 179.8 | 177.5 |
Operating Segments | Unum International | Group Life | ||||
Segment Reporting Information | ||||
Premium Income | 25.1 | 28.8 | 56.0 | 56.0 |
Operating Segments | Unum International | Supplemental | ||||
Segment Reporting Information | ||||
Premium Income | 24.6 | 22.4 | 48.5 | 44.1 |
Operating Segments | Unum International | Unum Poland | ||||
Segment Reporting Information | ||||
Premium Income | 18.4 | 17.8 | 37.4 | 35.0 |
Operating Segments | Colonial Life | ||||
Segment Reporting Information | ||||
Premium Income | 438.6 | 420.9 | 873.3 | 840.2 |
Operating Segments | Colonial Life | Accident, Sickness, and Disability | ||||
Segment Reporting Information | ||||
Premium Income | 250.3 | 242.4 | 499.6 | 484.6 |
Operating Segments | Colonial Life | Life Insurance | ||||
Segment Reporting Information | ||||
Premium Income | 96.8 | 88.3 | 190.6 | 175.9 |
Operating Segments | Colonial Life | Cancer and Critical Illness Colonial | ||||
Segment Reporting Information | ||||
Premium Income | 91.5 | 90.2 | 183.1 | 179.7 |
Operating Segments | Closed Block | ||||
Segment Reporting Information | ||||
Premium Income | 250.3 | 259.1 | 494.7 | 522.6 |
Operating Segments | Closed Block | Individual Disability | ||||
Segment Reporting Information | ||||
Premium Income | 83.1 | 94.4 | 160.1 | 192.5 |
Operating Segments | Closed Block | Long-term Care | ||||
Segment Reporting Information | ||||
Premium Income | 165.7 | 162.6 | 330.5 | 325.6 |
Operating Segments | Closed Block | Other Insurance Product Line | ||||
Segment Reporting Information | ||||
Premium Income | $ 1.5 | $ 2.1 | $ 4.1 | $ 4.5 |
Selected Operating Statement Data by Segment (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Segment Reporting Information | ||||
Premium Income | $ 2,368.7 | $ 2,343.1 | $ 4,740.1 | $ 4,681.8 |
Net Investment Income | 569.0 | 624.9 | 1,154.0 | 1,219.6 |
Other Income | 49.7 | 56.0 | 108.4 | 109.1 |
Operating Segments | ||||
Segment Reporting Information | ||||
Premium Income | 2,368.7 | 2,343.1 | 4,740.1 | 4,681.8 |
Net Investment Income | 569.0 | 624.9 | 1,154.0 | 1,219.6 |
Other Income | 49.7 | 56.0 | 108.4 | 109.1 |
Adjusted Operating Revenue | 2,987.4 | 3,024.0 | 6,002.5 | 6,010.5 |
Adjusted Operating Income (Loss) | 316.5 | 359.3 | 662.6 | 711.5 |
Operating Segments | Unum US | ||||
Segment Reporting Information | ||||
Premium Income | 1,522.7 | 1,504.5 | 3,050.4 | 3,006.4 |
Net Investment Income | 176.9 | 184.1 | 356.5 | 366.2 |
Other Income | 35.3 | 36.8 | 75.5 | 71.3 |
Adjusted Operating Revenue | 1,734.9 | 1,725.4 | 3,482.4 | 3,443.9 |
Adjusted Operating Income (Loss) | 231.9 | 254.3 | 493.7 | 506.6 |
Operating Segments | Unum International | ||||
Segment Reporting Information | ||||
Premium Income | 157.1 | 158.6 | 321.7 | 312.6 |
Net Investment Income | 26.3 | 44.8 | 52.8 | 69.6 |
Other Income | 0.2 | 0.3 | 0.2 | 0.3 |
Adjusted Operating Revenue | 183.6 | 203.7 | 374.7 | 382.5 |
Adjusted Operating Income (Loss) | 15.1 | 30.7 | 34.5 | 59.8 |
Operating Segments | Colonial Life | ||||
Segment Reporting Information | ||||
Premium Income | 438.6 | 420.9 | 873.3 | 840.2 |
Net Investment Income | 36.8 | 37.2 | 74.5 | 74.1 |
Other Income | 0.3 | 0.7 | 0.6 | 1.3 |
Adjusted Operating Revenue | 475.7 | 458.8 | 948.4 | 915.6 |
Adjusted Operating Income (Loss) | 90.9 | 84.4 | 172.0 | 169.6 |
Operating Segments | Closed Block | ||||
Segment Reporting Information | ||||
Premium Income | 250.3 | 259.1 | 494.7 | 522.6 |
Net Investment Income | 326.3 | 354.5 | 662.4 | 701.1 |
Other Income | 13.7 | 16.5 | 31.9 | 34.5 |
Adjusted Operating Revenue | 590.3 | 630.1 | 1,189.0 | 1,258.2 |
Adjusted Operating Income (Loss) | 36.7 | 33.7 | 66.4 | 64.7 |
Operating Segments | Corporate and Other Segment | ||||
Segment Reporting Information | ||||
Premium Income | 0.0 | 0.0 | 0.0 | 0.0 |
Net Investment Income | 2.7 | 4.3 | 7.8 | 8.6 |
Other Income | 0.2 | 1.7 | 0.2 | 1.7 |
Adjusted Operating Revenue | 2.9 | 6.0 | 8.0 | 10.3 |
Adjusted Operating Income (Loss) | $ (58.1) | $ (43.8) | $ (104.0) | $ (89.2) |
Assets by Segment (Detail) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Segment Reporting Information | ||
Total Assets | $ 69,305.2 | $ 67,013.4 |
Operating Segments | Unum US | ||
Segment Reporting Information | ||
Total Assets | 18,790.7 | 18,586.3 |
Operating Segments | Unum International | ||
Segment Reporting Information | ||
Total Assets | 3,823.9 | 3,869.1 |
Operating Segments | Colonial Life | ||
Segment Reporting Information | ||
Total Assets | 4,768.0 | 4,629.0 |
Operating Segments | Closed Block | ||
Segment Reporting Information | ||
Total Assets | 37,823.7 | 37,008.7 |
Operating Segments | Corporate and Other Segment | ||
Segment Reporting Information | ||
Total Assets | $ 4,098.9 | $ 2,920.3 |
Reconciliation of Total Revenue and Income Before Income Tax to Operating Revenue and Operating Income (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Segment Reporting, Revenue Reconciling Item | ||||
Total Revenue | $ 3,021.2 | $ 3,016.7 | $ 5,892.3 | $ 6,004.3 |
Net Realized Investment Gain (Loss) | 33.8 | (7.3) | (110.2) | (6.2) |
Income Before Income Tax | 337.6 | 352.0 | 539.7 | 705.3 |
Net Realized Investment Gain (Loss) | 33.8 | (7.3) | (110.2) | (6.2) |
Impairment Loss on ROU Asset | 12.7 | |||
Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Adjusted Operating Revenue | 2,987.4 | 3,024.0 | 6,002.5 | 6,010.5 |
Total Revenue | 3,021.2 | 3,016.7 | 5,892.3 | 6,004.3 |
Net Realized Investment Gain (Loss) | 33.8 | (7.3) | (110.2) | (6.2) |
Income Before Income Tax | 337.6 | 352.0 | 539.7 | 705.3 |
Net Realized Investment Gain (Loss) | 33.8 | (7.3) | (110.2) | (6.2) |
Impairment Loss on ROU Asset | (12.7) | 0.0 | (12.7) | 0.0 |
Adjusted Operating Income | $ 316.5 | $ 359.3 | $ 662.6 | $ 711.5 |
Segment Information Segments - Additional Information (Detail) |
6 Months Ended |
---|---|
Jun. 30, 2020
Integer
| |
Segment Reporting [Abstract] | |
Number of Operating Segments | 3 |
Employee Benefit Plans Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Pension Plan | UNITED STATES | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Service Cost | $ 2.7 | $ 2.7 | $ 5.5 | $ 5.4 |
Interest Cost | 18.3 | 20.9 | 36.5 | 41.7 |
Expected Return on Plan Assets | (26.6) | (24.9) | (53.3) | (49.7) |
Amortization of Net Actuarial Loss | 4.6 | 5.0 | 9.3 | 10.1 |
Amortization of Prior Service Cost (Credit) | 0.0 | 0.0 | ||
Net Periodic Benefit Cost | (1.0) | 3.7 | (2.0) | 7.5 |
Pension Plan | UNITED KINGDOM | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Service Cost | 0.0 | 0.0 | 0.0 | 0.0 |
Interest Cost | 1.2 | 1.6 | 2.4 | 3.1 |
Expected Return on Plan Assets | (2.3) | (2.3) | (4.7) | (4.5) |
Amortization of Net Actuarial Loss | 0.3 | 0.2 | 0.6 | 0.4 |
Amortization of Prior Service Cost (Credit) | 0.0 | 0.0 | ||
Net Periodic Benefit Cost | (0.8) | (0.5) | (1.7) | (1.0) |
Other Postretirement Benefit Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||||
Service Cost | 0.0 | 0.0 | 0.0 | 0.0 |
Interest Cost | 1.1 | 1.3 | 2.1 | 2.6 |
Expected Return on Plan Assets | (0.2) | (0.2) | (0.3) | (0.3) |
Amortization of Net Actuarial Loss | 0.0 | (0.6) | 0.0 | (1.2) |
Amortization of Prior Service Cost (Credit) | (0.1) | (0.1) | ||
Net Periodic Benefit Cost | $ 0.9 | $ 0.5 | $ 1.7 | $ 1.0 |
Employee Benefit Plans - Additional Information (Detail) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2020
USD ($)
| |
Pension Plan | UNITED STATES | Group Annuity Contact | |
Pension and Other Postretirement Benefits Disclosure | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | $ (44.0) |
Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Numerator | ||||
Net Income | $ 265.5 | $ 281.2 | $ 426.5 | $ 562.1 |
Denominator | ||||
Weighted Average Common Shares - Basic | 203,624,300 | 211,068,700 | 203,466,900 | 212,672,800 |
Dilution for Assumed Exercises of Stock Options and Nonvested Stock Awards | 46,800 | 43,900 | 48,300 | 88,300 |
Weighted Average Common Shares - Assuming Dilution | 203,671,100 | 211,112,600 | 203,515,200 | 212,761,100 |
Net Income Per Common Share | ||||
Basic | $ 1.30 | $ 1.33 | $ 2.10 | $ 2.64 |
Assuming Dilution | $ 1.30 | $ 1.33 | $ 2.10 | $ 2.64 |
Stockholders' Equity and Earnings Per Common Share - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 24.25 | $ 24.25 | ||
Outstanding Restricted Stock Unit Grant Prices Lower Limit | 12.45 | 12.45 | ||
Outstanding Restricted Stock Unit Grant Prices Upper Limit | $ 55.26 | $ 55.26 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | 1,800,000 | 1,200,000 | 1,500,000 | 1,200,000 |
Expiration Date of Share Repurchase Program Authorized in May 2019 | Nov. 23, 2020 | |||
Number of Treasury Shares Repurchased | 0 | 2,900,000 | 0 | 5,600,000 |
Shares Repurchased Cost, Commissions | $ 0.2 | $ 0.2 | ||
Authorized Shares of Preferred Stock | 25,000,000.0 | 25,000,000.0 | ||
Par Value Per Share of Preferred Stock | $ 0.10 | $ 0.10 | ||
Issued Shares of Preferred Stock | 0 | 0 | ||
Repurchase Program Authorized in May 2019 | ||||
Authorized Amount of Treasury Share Repurchases Under Stock Repurchase Program | $ 750.0 | $ 750.0 | ||
Remaining Amount of Treasury Share Repurchases Authorized Under Stock Repurchase Program | 516.2 | 516.2 | ||
Repurchase Program Authorized in May 2018 | ||||
Authorized Amount of Treasury Share Repurchases Under Stock Repurchase Program | $ 750.0 | $ 750.0 | ||
Open Market Repurchase | ||||
Cost of Shares Repurchased | $ 100.2 | $ 200.2 |
Debt - Additional Information (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2020
USD ($)
| |
Debt Additional Information | |
Debt Issuance Costs, Current, Net | $ (0.1) |
Five-year Unsecured Revolving Credit Facility | |
Debt Additional Information | |
Letters of Credit Outstanding | 0.0 |
Northwind Holdings LLC | |
Debt Additional Information | |
Periodic Principal Payments | 30.0 |
4.500% Senior Notes due 2025 | Senior Notes | |
Debt Additional Information | |
Proceeds from Issuance of Debt | $ 500.0 |
Leases Additional Information (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2020
USD ($)
| |
Leases, Operating [Abstract] | |
Impairment Loss on ROU Asset | $ 12.7 |
Label | Element | Value |
---|---|---|
Commercial Real Estate [Member] | Loan to Value Ratio Total [Member] | ||
Financing Receivable, Allowance for Credit Loss | us-gaap_FinancingReceivableAllowanceForCreditLosses | $ 8,300,000 |
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