Investments (Tables)

6 Months Ended

Jun. 30, 2012

Amortized Cost And Fair Value Of Available-For-Sale Fixed Maturities, Cost And Fair Value Of Equity Securities

The amortized cost and fair value of available-for-sale fixed maturities and the cost and fair value of equity securities were as follows:


	June 30, 2012
(in millions)	Amortized Cost or Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI Unrealized Losses
Fixed maturities:
U.S. Treasury and government agencies	$	190.5	$	8.5	$	0.2	$	198.8	$	-
Foreign government		302.7		1.9		0.1		304.5		-
Municipal		949.6		83.4		2.7		1,030.3		-
Corporate		3,371.6		230.1		21.7		3,580.0		10.4
Residential mortgage-backed		805.3		41.6		7.8		839.1		5.5
Commercial mortgage-backed		343.9		15.3		0.3		358.9		-
Asset-backed		219.7		4.3		0.8		223.2		-

Total fixed maturities	$	6,183.3	$	385.1	$	33.6	$	6,534.8	$	15.9

Equity securities	$	342.8	$	30.7	$	6.0	$	367.5	$	-

	December 31, 2011
	Amortized Cost or Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI Unrealized Losses
Fixed maturities:
U.S. Treasury and government agencies	$	261.7	$	7.8	$	0.2	$	269.3	$	-
Foreign government		239.1		0.4		0.5		239.0		-
Municipal		964.5		67.4		3.9		1,028.0		-
Corporate		3,218.2		197.7		40.3		3,375.6		13.8
Residential mortgage-backed		816.1		40.9		8.4		848.6		6.1
Commercial mortgage-backed		367.6		12.5		1.0		379.1		-
Asset-backed		141.5		4.3		0.7		145.1		-

Total fixed maturities	$	6,008.7	$	331.0	$	55.0	$	6,284.7	$	19.9

Equity securities	$	239.9	$	15.3	$	8.8	$	246.4	$	-

Maturities Of Available-For-Sale Debt Securities

The amortized cost and fair value by maturity periods for fixed maturities are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties, or the Company may have the right to put or sell the obligations back to the issuers.


(in millions)	June 30, 2012
	Amortized Cost		Fair Value
Due in one year or less	$	438.7	$	443.5
Due after one year through five years		2,104.3		2,200.5
Due after five years through ten years		1,620.2		1,763.6
Due after ten years		651.2		706.0

		4,814.4		5,113.6
Mortgage-backed and asset-backed securities		1,368.9		1,421.2

Total fixed maturities	$	6,183.3	$	6,534.8

Fixed Maturities And Equity Securities In An Unrealized Loss Position

The following tables provide information about the Company’s fixed maturities and equity securities that were in an unrealized loss position at June 30, 2012 and December 31, 2011.

June 30, 2012

12 months or less

Greater than 12 months

Total

(in millions)

Gross

Unrealized

Losses

Fair Value

Gross

Unrealized

Losses

Fair Value

Gross

Unrealized

Losses

Fair Value

Fixed maturities:

Investment grade:

U.S. Treasury and government agencies

0.7

0.2

8.8

0.2

9.5

Foreign governments

0.1

25.0

0.1

25.0

Municipal

0.5

33.5

2.2

33.8

2.7

67.3

Corporate

3.2

323.0

8.3

62.3

11.5

385.3

Residential mortgage-backed

1.2

58.1

5.9

21.3

7.1

79.4

Commercial mortgage-backed

27.3

0.3

4.8

0.3

32.1

Asset-backed

0.1

30.2

0.1

30.2

Total investment grade

5.1

497.8

16.9

131.0

22.0

628.8

Below investment grade:

Municipal

2.0

Corporate

4.0

35.2

6.2

59.2

10.2

94.4

Residential mortgage-backed

0.7

9.2

0.7

9.2

Asset-backed

0.7

0.9

0.7

0.9

Total below investment grade

5.4

45.3

6.2

61.2

11.6

106.5

Total fixed maturities

10.5

543.1

23.1

192.2

33.6

735.3

Equity securities

4.9

76.9

1.1

7.9

6.0

84.8

Total

15.4

620.0

24.2

200.1

39.6

820.1


	December 31, 2011
	12 months or less				Greater than 12 months				Total
(in millions)	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Fixed maturities:
Investment grade:
U.S. Treasury and government agencies	$	0.2	$	57.7	$	-	$	-	$	0.2	$	57.7
Foreign governments		0.5		148.8		-		-		0.5		148.8
Municipal		0.5		28.0		3.4		58.8		3.9		86.8
Corporate		19.9		699.6		8.2		35.6		28.1		735.2
Residential mortgage-backed		5.1		115.8		2.4		9.9		7.5		125.7
Commercial mortgage-backed		0.7		58.0		0.3		4.6		1.0		62.6
Asset-backed		0.2		67.6		-		-		0.2		67.6

Total investment grade		27.1		1,175.5		14.3		108.9		41.4		1,284.4

Below investment grade:
Corporate		8.5		118.0		3.7		14.7		12.2		132.7
Residential mortgage-backed		0.9		8.0		-		-		0.9		8.0
Asset-backed		0.5		0.9		-		-		0.5		0.9

Total below investment grade		9.9		126.9		3.7		14.7		13.6		141.6

Total fixed maturities		37.0		1,302.4		18.0		123.6		55.0		1,426.0


Equity securities		8.8		87.2		-		-		8.8		87.2

Total	$	45.8	$	1,389.6	$	18.0	$	123.6	$	63.8	$	1,513.2

Proceeds From Sale Of Available-For-Sale Securities

Proceeds from sales of available-for-sale securities and the gross realized gains and losses on those sales were as follows:


		Three Months Ended June 30,
		2012								2011
(in millions)		Proceeds from Sales			Gross Gains			Gross Losses		Proceeds from Sales			Gross Gains			Gross Losses
Fixed maturities	$		128.8	$		1.9	$		0.5	$	297.3	$		11.7	$		0.2
Equity securities			2.8			0.5			-		1.8			0.4			-

		Six Months Ended June 30,
		2012								2011
(in millions)		Proceeds from Sales			Gross Gains			Gross Losses		Proceeds from Sales			Gross Gains			Gross Losses
Fixed maturities	$		408.0	$		6.6	$		1.6	$	403.8	$		15.9	$		1.0
Equity securities			3.5			0.5			0.2		1.8			0.4			-

Rollforward Of Cumulative Amounts Related To Credit Loss Portion Of OTTI Losses

The following table provides rollforwards of the cumulative amounts related to the Company’s credit loss portion of the OTTI losses on fixed maturity securities for which the non-credit portion of the loss is included in other comprehensive income.


(in millions)	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2012		2011		2012		2011
Credit losses as of the beginning of the period	$	13.5	$	16.3	$	14.5	$	16.7
Credit losses for which an OTTI was not previously recognized		0.3		-		0.4		-
Additional credit losses on securities for which an OTTI was previously recognized		0.3		-		0.6		0.2
Reduction for securities sold, matured or called during the period		(0.3)		(0.7)		(1.7)		(1.3)
Reduction for securities reclassified as intend to sell as intend to sell		-		(0.8)		-		(0.8)

Credit losses as of the end of the period	$	13.8	$	14.8	$	13.8	$	14.8