Investments (Tables)

9 Months Ended

Sep. 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:


	September 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		$	214.3		$	9.4		$	0.2		$	223.5		$	-
Foreign government			360.3			4.8			0.3			364.8			-
Municipal			951.0			89.3			1.7			1,038.6			-
Corporate			3,510.1			279.3			16.2			3,773.2			9.3
Residential mortgage-backed			792.5			44.5			4.6			832.4			2.9
Commercial mortgage-backed			342.7			23.3			0.5			365.5			-
Asset-backed			192.7			4.2			-			196.9			-

Total fixed maturities		$	6,363.6		$	454.8		$	23.5		$	6,794.9		$	12.2

Equity securities		$	363.0		$	34.8		$	5.0		$	392.8		$	-


	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			384.1			15.0			1.0			398.1			-
Asset-backed			125.0			1.8			0.7			126.1			–

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)	September 30, 2012
	Amortized Cost			Fair Value
Due in one year or less		$	461.6		$	466.9
Due after one year through five years			2,230.2			2,352.1
Due after five years through ten years			1,705.0			1,881.6
Due after ten years			638.9			699.5

			5,035.7			5,400.1
Mortgage-backed and asset-backed securities			1,327.9			1,394.8

Total fixed maturities		$	6,363.6		$	6,794.9

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 September 30, 2012 and December 31, 2011.

September 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

12.4

0.2

8.7

0.2

21.1

Foreign governments

0.2

44.6

0.1

0.4

0.3

45.0

Municipal

0.1

19.1

1.6

32.7

1.7

51.8

Corporate

2.6

120.3

6.5

49.7

9.1

170.0

Residential mortgage-backed

0.4

30.2

3.3

13.4

3.7

43.6

Commercial mortgage-backed

0.4

13.7

0.1

4.9

0.5

18.6

Asset-backed

3.1

0.5

3.6

Total investment grade

3.7

243.4

11.8

110.3

15.5

353.7

Below investment grade:

Municipal

2.0

Corporate

2.0

34.0

5.1

51.5

7.1

85.5

Residential mortgage-backed

1.4

0.9

3.6

0.9

5.0

Total below investment grade

2.0

35.4

6.0

57.1

8.0

92.5

Total fixed maturities

5.7

278.8

17.8

167.4

23.5

446.2

Equity securities

3.9

98.3

1.1

15.3

5.0

113.6

Total

9.6

377.1

18.9

182.7

28.5

559.8


	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 September 30,
	2012									2011
(in millions)	Proceeds from Sales			Gross Gains			Gross Losses			Proceeds from Sales			Gross Gains			Gross Losses
Fixed maturities		$	78.8		$	2.3		$	0.3		$	188.5		$	2.2		$	0.1
Equity securities			13.6			2.4			-			14.1			1.1			0.1

	Nine Months Ended September 30,
	2012									2011
(in millions)	Proceeds from Sales			Gross Gains			Gross Losses			Proceeds from Sales			Gross Gains			Gross Losses
Fixed maturities		$	486.8		$	8.9		$	1.9		$	592.3		$	18.1		$	1.1
Equity securities			17.1			2.9			0.2			15.9			1.5			0.1

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 September 30,							Nine Months Ended September 30,
(in millions)	2012				2011			2012			2011
Credit losses as of the beginning of the period		$	13.8			$	14.8		$	14.5		$	16.7
Credit losses for which an OTTI was not previously recognized			0.1				-			0.5			-
Additional credit losses on securities for which an OTTI was previously recognized			-				0.4			0.6			0.6
Reduction for securities sold, matured or called during the period			(2.5	)			(0.3)			(4.2)			(1.6)
Reduction for securities reclassified as intend to sell			(0.2	)			-			(0.2)			(0.8)
Credit losses as of the end of the period		$	11.2			$	14.9		$	11.2		$	14.9

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

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-Name Emerging Issues Task Force (EITF)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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Reference 7: http://www.xbrl.org/2003/role/presentationRef

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-Publisher FASB

-Name Accounting Standards Codification

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-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

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-Name Accounting Standards Codification

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

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-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

+ Details

- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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