Delaware | 1-10890 | 37-0911756 |
(State of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02: | Results of Operations and Financial Condition |
Item 9.01: | Financial Statements and Exhibits |
HORACE MANN EDUCATORS CORPORATION | |||
By: | /s/ Kimberly A. Johnson | ||
Name: | Kimberly A. Johnson | ||
Title: | Vice President & Controller | ||
(Principal Accounting Officer) |
• | Loss Ratio or Loss and Loss Adjustment Expense Ratio - The ratio of (1) the sum of net incurred losses and loss adjustment expenses to (2) net earned premiums. |
• | Underlying Loss Ratio - The sum of the Loss Ratio adjusted to remove the effect of catasrophe costs and prior years' reserve development. The Loss Ratio is the most directly comparable GAAP measure. Management believes this ratio provides a valuable measure of the Company's underlying underwriting performance that may be obscured by the effects of catastrophe costs and prior years' reserve development, the amounts of which may be significant and may vary significantly between periods. |
• | Expense Ratio - The ratio of (1) the sum of operating expenses and the amortization of policy acquisition costs to (2) net earned premiums. |
• | Combined Ratio - The sum of the Loss Ratio and the Expense Ratio. A Combined Ratio less than 100% generally indicates profitable underwriting prior to the consideration of net investment income. |
• | Underlying Combined Ratio or Combined Ratio Excluding Catastrophes and Prior Years’ Reserve Development - The sum of the Loss Ratio and the Expense Ratio adjusted to remove the effect of catastrophe costs and prior years’ reserve development. The Combined Ratio is the most directly comparable GAAP measure. Management believes this ratio provides a valuable measure |
• | Property and Casualty combined ratio of 94.0% including a 5.1 point improvement in the auto loss ratio |
• | Significantly lower catastrophe losses, 2.2 points or $3.6 million pretax, compared to the prior year |
• | Continued growth in assets under management in Retirement and double-digit increases in Life sales |
• | One-time favorable tax benefit of $99.0 million, or $2.37 per diluted share due to the passage of the Tax Cuts and Jobs Act of 2017 |
Horace Mann Financial Highlights | ||||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||
($ in millions, except per share amounts) | 2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||
Total revenues | $ | 303.0 | $ | 282.8 | 7.1% | $ | 1,171.5 | $ | 1,128.9 | 3.8% | ||||||||||
Net income | 125.3 | 19.9 | N.M. | 169.4 | 83.8 | 102.1% | ||||||||||||||
Net realized investment gains (losses) after tax | (0.9 | ) | (1.5 | ) | (1.7 | ) | 2.3 | |||||||||||||
Re-measurement of net deferred tax liability (DTL) | 99.0 | — | 99.0 | — | ||||||||||||||||
Core earnings* | 27.2 | 21.4 | 27.1% | 72.1 | 81.5 | -11.5% | ||||||||||||||
Per diluted share: | ||||||||||||||||||||
Net income | 3.00 | 0.48 | N.M. | 4.08 | 2.02 | 102.0% | ||||||||||||||
Net realized investment gains (losses) after tax | (0.02 | ) | (0.04 | ) | (0.04 | ) | 0.05 | |||||||||||||
Re-measurement of DTL | 2.37 | — | 2.38 | — | ||||||||||||||||
Core earnings | 0.65 | 0.52 | 25.0% | 1.74 | 1.97 | -11.7% | ||||||||||||||
Book value per share | 36.88 | 32.15 | 14.7% | |||||||||||||||||
Book value per share excluding net unrealized gains on fixed maturity and equity securities* | 30.73 | 27.79 | 10.6% | |||||||||||||||||
Property and Casualty net income | 15.6 | 9.6 | 62.5% | 17.8 | 25.6 | -30.5% | ||||||||||||||
Property and Casualty combined ratio | 94.0 | % | 99.1 | % | -5.1 pts | 103.3 | % | 101.5 | % | 1.8 pts | ||||||||||
Property and Casualty underlying combined ratio* | 92.2 | % | 93.5 | % | -1.3 pts | 94.2 | % | 92.9 | % | 1.3 pts | ||||||||||
Retirement net income | $ | 51.5 | $ | 11.4 | N.M. | $ | 88.4 | $ | 50.7 | 74.4% | ||||||||||
Life net income | 63.3 | 3.5 | N.M. | 77.6 | 16.6 | N.M. |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||||||
EARNINGS SUMMARY | ||||||||||||||||||||||
Net income | $ | 125.3 | $ | 19.9 | N.M. | $ | 169.4 | $ | 83.8 | 102.1 | % | |||||||||||
Net realized investment gains (losses), after tax | (0.9 | ) | (1.5 | ) | -40.0 | % | (1.7 | ) | 2.3 | N.M. | ||||||||||||
Re-measurement of net deferred tax liability (DTL) | 99.0 | — | N.M. | 99.0 | — | N.M. | ||||||||||||||||
Core earnings* | 27.2 | 21.4 | 27.1 | % | 72.1 | 81.5 | -11.5 | % | ||||||||||||||
Per diluted share: | ||||||||||||||||||||||
Net income | 3.00 | 0.48 | N.M. | 4.08 | 2.02 | 102.0 | % | |||||||||||||||
Net realized investment gains (losses), after tax | (0.02 | ) | (0.04 | ) | -50.0 | % | (0.04 | ) | 0.05 | N.M. | ||||||||||||
Re-measurement of DTL | 2.37 | — | N.M. | 2.38 | — | N.M. | ||||||||||||||||
Core earnings* | 0.65 | 0.52 | 25.0 | % | 1.74 | 1.97 | -11.7 | % | ||||||||||||||
Weighted average number of shares and equivalent shares (in millions) - Diluted | 41.7 | 41.5 | 0.5 | % | 41.6 | 41.5 | 0.2 | % | ||||||||||||||
RETURN ON EQUITY | ||||||||||||||||||||||
Net income return on equity (A) | 12.3 | % | 6.2 | % | 6.1 pts | |||||||||||||||||
Core return on equity excluding net unrealized gains on fixed maturity and equity securities and re-measurement of DTL* (B) | 6.4 | % | 7.4 | % | -1.0 pts | |||||||||||||||||
FINANCIAL POSITION | ||||||||||||||||||||||
Per share (C): | ||||||||||||||||||||||
Book value | $ | 36.88 | $ | 32.15 | 14.7 | % | ||||||||||||||||
Effect of net unrealized gains on fixed maturity and equity securities (D) | 6.15 | 4.36 | 41.1 | % | ||||||||||||||||||
Effect of the re-measurement of net DTL | 2.43 | — | N.M. | |||||||||||||||||||
Dividends paid | $ | 0.275 | $ | 0.265 | 3.8 | % | $ | 1.100 | $ | 1.060 | 3.8 | % | ||||||||||
Ending number of shares outstanding (in millions) (C) | 40.7 | 40.2 | 1.2 | % | ||||||||||||||||||
Total assets | $ | 11,198.3 | $ | 10,576.8 | 5.9 | % | ||||||||||||||||
Long-term debt, current and noncurrent | 297.5 | 247.2 | 20.3 | % | ||||||||||||||||||
Total shareholders' equity | 1,501.6 | 1,294.0 | 16.0 | % | ||||||||||||||||||
ADDITIONAL INFORMATION | ||||||||||||||||||||||
Net realized investment gains (losses) | ||||||||||||||||||||||
Before tax | $ | (1.7 | ) | $ | (2.8 | ) | -39.3 | % | $ | (3.4 | ) | $ | 4.1 | N.M. | ||||||||
After tax | (0.9 | ) | (1.5 | ) | -40.0 | % | (1.7 | ) | 2.3 | N.M. | ||||||||||||
Per share, diluted | $ | (0.02 | ) | $ | (0.04 | ) | -50.0 | % | $ | (0.04 | ) | $ | 0.05 | N.M. |
N.M.- | Not meaningful. |
(A) | Based on trailing 12-month net income and average quarter-end shareholders' equity. |
(B) | Based on trailing 12-month core earnings and average quarter-end shareholders' equity which has been adjusted to exclude the fair value adjustment for investments, net of the related impact on deferred policy acquisition costs and applicable deferred taxes. |
(C) | Ending shares outstanding were 40,717,873 at December 31, 2017 and 40,244,751 at December 31, 2016. |
(D) | Net of the related impact on deferred policy acquisition costs and applicable deferred taxes. |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||||||
STATEMENTS OF OPERATIONS | ||||||||||||||||||||||
Insurance premiums and contract charges earned | $ | 204.3 | $ | 194.2 | 5.2 | % | $ | 794.7 | $ | 759.1 | 4.7 | % | ||||||||||
Net investment income | 98.6 | 90.5 | 9.0 | % | 373.6 | 361.2 | 3.4 | % | ||||||||||||||
Net realized investment gains (losses) | (1.7 | ) | (2.8 | ) | 39.3 | % | (3.4 | ) | 4.1 | N.M. | ||||||||||||
Other income | 1.8 | 0.9 | 100.0 | % | 6.6 | 4.5 | 46.7 | % | ||||||||||||||
Total revenues | 303.0 | 282.8 | 7.1 | % | 1,171.5 | 1,128.9 | 3.8 | % | ||||||||||||||
Benefits, claims and settlement expenses | 137.4 | 137.5 | -0.1 | % | 582.3 | 541.1 | 7.6 | % | ||||||||||||||
Interest credited | 50.4 | 49.1 | 2.6 | % | 198.6 | 192.0 | 3.4 | % | ||||||||||||||
Policy acquisition expenses amortized | 28.3 | 23.6 | 19.9 | % | 102.2 | 96.7 | 5.7 | % | ||||||||||||||
Operating expenses | 48.7 | 42.5 | 14.6 | % | 187.8 | 173.1 | 8.5 | % | ||||||||||||||
Interest expense | 3.0 | 2.9 | 3.4 | % | 11.9 | 11.8 | 0.8 | % | ||||||||||||||
Total benefits, losses and expenses | 267.8 | 255.6 | 4.8 | % | 1,082.8 | 1,014.7 | 6.7 | % | ||||||||||||||
Income before income taxes | 35.2 | 27.2 | 29.4 | % | 88.7 | 114.2 | -22.3 | % | ||||||||||||||
Income tax expense (benefit) | (90.1 | ) | 7.3 | N.M. | (80.7 | ) | 30.4 | N.M. | ||||||||||||||
Net income | $ | 125.3 | $ | 19.9 | N.M. | $ | 169.4 | $ | 83.8 | 102.1 | % | |||||||||||
PREMIUMS WRITTEN AND CONTRACT DEPOSITS | ||||||||||||||||||||||
Property & Casualty | $ | 164.8 | $ | 158.0 | 4.3 | % | $ | 662.8 | $ | 634.3 | 4.5 | % | ||||||||||
Annuity deposits | 104.2 | 128.3 | -18.8 | % | 453.1 | 520.2 | -12.9 | % | ||||||||||||||
Life | 31.4 | 29.6 | 6.1 | % | 111.2 | 108.0 | 3.0 | % | ||||||||||||||
Total | $ | 300.4 | $ | 315.9 | -4.9 | % | $ | 1,227.1 | $ | 1,262.5 | -2.8 | % | ||||||||||
SEGMENT NET INCOME (LOSS) | ||||||||||||||||||||||
Property & Casualty | $ | 15.6 | $ | 9.6 | 62.5 | % | $ | 17.8 | $ | 25.6 | -30.5 | % | ||||||||||
Retirement | 51.5 | 11.4 | N.M. | 88.4 | 50.7 | 74.4 | % | |||||||||||||||
Life | 63.3 | 3.5 | N.M. | 77.6 | 16.6 | N.M. | ||||||||||||||||
Corporate and other (A) | (5.1 | ) | (4.6 | ) | 10.9 | % | (14.4 | ) | (9.1 | ) | 58.2 | % | ||||||||||
Net income | $ | 125.3 | $ | 19.9 | N.M. | $ | 169.4 | $ | 83.8 | 102.1 | % | |||||||||||
IMPACT ON SEGMENT NET INCOME (LOSS) FOR RE-MEASUREMENT OF DTL | ||||||||||||||||||||||
Property & Casualty | $ | 0.6 | $ | — | N.M. | $ | 0.6 | $ | — | N.M. | ||||||||||||
Retirement | 39.5 | — | N.M. | 39.5 | — | N.M. | ||||||||||||||||
Life | 60.3 | — | N.M. | 60.3 | — | N.M. | ||||||||||||||||
Corporate and other (A) | (1.4 | ) | — | N.M. | (1.4 | ) | — | N.M. | ||||||||||||||
Total | $ | 99.0 | $ | — | N.M. | $ | 99.0 | $ | — | N.M. |
N.M.- | Not meaningful. |
(A) | Corporate and Other includes interest expense on debt and the impact of net realized investment gains and losses and other Corporate level items. The Company does not allocate the impact of corporate level transactions to the insurance segments consistent with how management evaluates the results of those segments. See detail for this segment on page 4. |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||||||
PROPERTY & CASUALTY | ||||||||||||||||||||||
Premiums written | $ | 164.8 | $ | 158.0 | 4.3 | % | $ | 662.8 | $ | 634.3 | 4.5 | % | ||||||||||
Premiums earned | 166.3 | 159.0 | 4.6 | % | 648.3 | 620.5 | 4.5 | % | ||||||||||||||
Net investment income | 9.7 | 10.0 | -3.0 | % | 36.2 | 39.0 | -7.2 | % | ||||||||||||||
Other income (expense) | (0.2 | ) | (0.2 | ) | — | % | (0.2 | ) | 0.6 | -133.3 | % | |||||||||||
Losses and loss adjustment expenses (LAE) | 111.4 | 117.1 | -4.9 | % | 496.3 | 464.1 | 6.9 | % | ||||||||||||||
Operating expenses (includes policy acquisition expenses amortized) | 44.9 | 40.4 | 11.1 | % | 173.4 | 165.7 | 4.6 | % | ||||||||||||||
Interest expense | 0.1 | — | N.M. | 0.1 | — | N.M. | ||||||||||||||||
Income before tax | 19.4 | 11.3 | 71.7 | % | 14.5 | 30.3 | -52.1 | % | ||||||||||||||
Net income | 15.6 | 9.6 | 62.5 | % | 17.8 | 25.6 | -30.5 | % | ||||||||||||||
Net investment income, after tax | 7.7 | 8.0 | -3.8 | % | 28.9 | 31.2 | -7.4 | % | ||||||||||||||
Catastrophe costs (A) | ||||||||||||||||||||||
After tax | 2.4 | 7.6 | -68.4 | % | 40.2 | 39.1 | 2.8 | % | ||||||||||||||
Before tax | 3.6 | 11.6 | -69.0 | % | 61.8 | 60.0 | 3.0 | % | ||||||||||||||
Prior years' reserve favorable (adverse) development, before tax | ||||||||||||||||||||||
Automobile | 0.3 | 1.4 | -78.6 | % | 0.3 | 1.4 | -78.6 | % | ||||||||||||||
Property & other | 0.3 | 1.3 | -76.9 | % | 2.4 | 5.6 | -57.1 | % | ||||||||||||||
Total | 0.6 | 2.7 | -77.8 | % | 2.7 | 7.0 | -61.4 | % | ||||||||||||||
Operating statistics: | ||||||||||||||||||||||
Loss and loss adjustment expense ratio | 67.0 | % | 73.7 | % | -6.7 pts | 76.6 | % | 74.8 | % | 1.8 pts | ||||||||||||
Expense ratio | 27.0 | % | 25.4 | % | 1.6 pts | 26.7 | % | 26.7 | % | 0.0 pts | ||||||||||||
Combined ratio | 94.0 | % | 99.1 | % | -5.1 pts | 103.3 | % | 101.5 | % | 1.8 pts | ||||||||||||
Effect on the combined ratio of: | ||||||||||||||||||||||
Catastrophe costs (A) | 2.2 | % | 7.3 | % | -5.1 pts | 9.5 | % | 9.7 | % | -0.2 pts | ||||||||||||
Prior years' reserve development | -0.4 | % | -1.7 | % | 1.3 pts | -0.4 | % | -1.1 | % | 0.7 pts | ||||||||||||
Combined ratio excluding the effects of catastrophe costs and prior years' reserve development ("underlying combined ratio")* | 92.2 | % | 93.5 | % | -1.3 pts | 94.2 | % | 92.9 | % | 1.3 pts | ||||||||||||
Policies in force (in thousands) | 695 | 705 | -1.4 | % | ||||||||||||||||||
Automobile | 479 | 485 | -1.2 | % | ||||||||||||||||||
Property | 216 | 220 | -1.8 | % | ||||||||||||||||||
Policy renewal rate - 12 months | ||||||||||||||||||||||
Automobile | 83.0 | % | 83.5 | % | -0.5 pts | |||||||||||||||||
Property | 87.6 | % | 87.8 | % | -0.2 pts |
N.M.- | Not meaningful. |
(A) | Includes allocated loss adjustment expenses and, when applicable, catastrophe reinsurance reinstatement premiums. For the periods presented, there were no reinsurance reinstatement premiums. |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||||||
RETIREMENT | ||||||||||||||||||||||
Contract deposits | $ | 104.2 | $ | 128.3 | -18.8 | % | $ | 453.1 | $ | 520.2 | -12.9 | % | ||||||||||
Variable | 46.2 | 46.0 | 0.4 | % | 173.9 | 163.6 | 6.3 | % | ||||||||||||||
Fixed | 58.0 | 82.3 | -29.5 | % | 279.2 | 356.6 | -21.7 | % | ||||||||||||||
Contract charges earned | 7.2 | 6.3 | 14.3 | % | 28.0 | 24.9 | 12.4 | % | ||||||||||||||
Net investment income | 69.1 | 62.4 | 10.7 | % | 262.0 | 249.4 | 5.1 | % | ||||||||||||||
Interest credited | 39.1 | 37.9 | 3.2 | % | 153.5 | 147.3 | 4.2 | % | ||||||||||||||
Net interest margin (without realized investment gains/losses) | 30.0 | 24.5 | 22.4 | % | 108.5 | 102.1 | 6.3 | % | ||||||||||||||
Other income | 1.8 | 0.8 | 125.0 | % | 5.9 | 2.8 | 110.7 | % | ||||||||||||||
Mortality loss and other reserve changes | (1.8 | ) | (0.8 | ) | 125.0 | % | (5.8 | ) | (3.9 | ) | 48.7 | % | ||||||||||
Operating expenses (includes policy acquisition expenses amortized) | 19.5 | 13.6 | 43.4 | % | 67.6 | 54.9 | 23.1 | % | ||||||||||||||
Income before tax | 17.7 | 17.2 | 2.9 | % | 69.0 | 71.0 | -2.8 | % | ||||||||||||||
Net income | 51.5 | 11.4 | N.M. | 88.4 | 50.7 | 74.4 | % | |||||||||||||||
Pretax income increase (decrease) due to evaluation of: | ||||||||||||||||||||||
Deferred policy acquisition costs | $ | (1.2 | ) | $ | 0.9 | N.M. | $ | (1.1 | ) | $ | 0.3 | N.M. | ||||||||||
Guaranteed minimum death benefit reserve | 0.1 | 0.1 | — | % | 0.1 | 0.1 | — | % | ||||||||||||||
Retirement contracts in force (in thousands) | 223 | 219 | 1.8 | % | ||||||||||||||||||
Annuity accumulated account value on deposit / Assets under management | $ | 6,764.0 | $ | 6,427.0 | 5.2 | % | ||||||||||||||||
Variable | 2,152.0 | 1,923.9 | 11.9 | % | ||||||||||||||||||
Fixed | 4,612.0 | 4,503.1 | 2.4 | % | ||||||||||||||||||
Annuity accumulated value retention - 12 months | ||||||||||||||||||||||
Variable accumulations | 89.5 | % | 94.7 | % | -5.2 pts | |||||||||||||||||
Fixed accumulations | 92.6 | % | 94.6 | % | -2.0 pts | |||||||||||||||||
LIFE | ||||||||||||||||||||||
Premiums and contract deposits | $ | 31.4 | $ | 29.6 | 6.1 | % | $ | 111.2 | $ | 108.0 | 3.0 | % | ||||||||||
Premiums and contract charges earned | 30.8 | 28.9 | 6.6 | % | 118.4 | 113.7 | 4.1 | % | ||||||||||||||
Net investment income | 20.0 | 18.3 | 9.3 | % | 76.2 | 73.6 | 3.5 | % | ||||||||||||||
Other income | 0.1 | 0.2 | -50.0 | % | 0.4 | 0.8 | -50.0 | % | ||||||||||||||
Death benefits/mortality cost/change in reserves | 24.2 | 19.6 | 23.5 | % | 80.2 | 73.1 | 9.7 | % | ||||||||||||||
Interest credited | 11.3 | 11.2 | 0.9 | % | 45.1 | 44.7 | 0.9 | % | ||||||||||||||
Operating expenses (includes policy acquisition expenses amortized) | 11.2 | 10.6 | 5.7 | % | 44.0 | 44.0 | — | % | ||||||||||||||
Income before tax | 4.2 | 6.0 | -30.0 | % | 25.7 | 26.3 | -2.3 | % | ||||||||||||||
Net income | 63.3 | 3.5 | N.M. | 77.6 | 16.6 | N.M. | ||||||||||||||||
Pretax income increase (decrease) due to evaluation of: | ||||||||||||||||||||||
Deferred policy acquisition costs | $ | — | $ | 0.2 | -100.0 | % | $ | 0.2 | $ | 0.4 | -50.0 | % | ||||||||||
Life policies in force (in thousands) | 198 | 198 | — | % | ||||||||||||||||||
Life insurance in force | $ | 17,564 | $ | 17,025 | 3.2 | % | ||||||||||||||||
Lapse ratio - 12 months (Ordinary life insurance) | 4.9 | % | 4.3 | % | 0.6 pts | |||||||||||||||||
CORPORATE AND OTHER (A) | ||||||||||||||||||||||
Components of income (loss) before tax: | ||||||||||||||||||||||
Net realized investment gains (losses) | $ | (1.7 | ) | $ | (2.8 | ) | -39.3 | % | $ | (3.4 | ) | $ | 4.1 | N.M. | ||||||||
Interest expense | (2.9 | ) | (2.9 | ) | — | % | (11.8 | ) | (11.8 | ) | — | % | ||||||||||
Other operating expenses, net investment income and other income | (1.5 | ) | (1.6 | ) | -6.3 | % | (5.3 | ) | (5.7 | ) | -7.0 | % | ||||||||||
Loss before tax | (6.1 | ) | (7.3 | ) | -16.4 | % | (20.5 | ) | (13.4 | ) | 53.0 | % | ||||||||||
Net loss | (5.1 | ) | (4.6 | ) | 10.9 | % | (14.4 | ) | (9.1 | ) | 58.2 | % |
N.M.- - | Not meaningful. |
(A) | The Corporate and Other segment includes interest expense on debt and the impact of realized investment gains and losses and other corporate level items. The Company does not allocate the impact of corporate level transactions to the insurance segments consistent with how management evaluates the results of those segments. |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||||||
INVESTMENTS | ||||||||||||||||||||||
Retirement and Life | ||||||||||||||||||||||
Fixed maturities, at fair value (amortized cost 2017, $6,490.8; 2016, $6,404.4) | $ | 6,874.1 | $ | 6,684.3 | 2.8 | % | ||||||||||||||||
Equity securities, at fair value (cost 2017, $77.5; 2016, $70.5) | 80.9 | 66.6 | 21.5 | % | ||||||||||||||||||
Short-term investments | 36.4 | 10.0 | N.M. | |||||||||||||||||||
Policy loans | 153.6 | 151.9 | 1.1 | % | ||||||||||||||||||
Other investments | 203.7 | 159.2 | 28.0 | % | ||||||||||||||||||
Total Retirement and Life investments | 7,348.7 | 7,072.0 | 3.9 | % | ||||||||||||||||||
Property & Casualty | ||||||||||||||||||||||
Fixed maturities, at fair value (amortized cost 2017, $812.1; 2016, $747.7) | $ | 850.0 | $ | 772.4 | 10.0 | % | ||||||||||||||||
Equity securities, at fair value (cost 2017, $38.8; 2016, $63.6) | 54.6 | 75.0 | -27.2 | % | ||||||||||||||||||
Short-term investments | 19.3 | 10.9 | 77.1 | % | ||||||||||||||||||
Other investments | 72.9 | 45.0 | 62.0 | % | ||||||||||||||||||
Total Property & Casualty investments | 996.8 | 903.3 | 10.4 | % | ||||||||||||||||||
Corporate investments | 6.8 | 24.0 | -71.7 | % | ||||||||||||||||||
Total investments | 8,352.3 | 7,999.3 | 4.4 | % | ||||||||||||||||||
Net investment income | ||||||||||||||||||||||
Before tax | $ | 98.6 | $ | 90.5 | 9.0 | % | $ | 373.6 | $ | 361.2 | 3.4 | % | ||||||||||
After tax | 65.5 | 60.3 | 8.6 | % | 248.3 | 240.6 | 3.2 | % |
N.M.- | Not meaningful. |