INVESTMENT INCOME AND GAINS AND LOSSES (Tables)

12 Months Ended

Dec. 31, 2012

The components of net investment income were as follows:


FOR THE YEARS ENDED DECEMBER 31	2012			2011			2010
(in millions)
Fixed maturities	$	264.2		$	254.3		$	248.6
Equity securities		15.3			6.8			4.5
Other investments		7.0			4.8			1.0
Gross investment income		286.5			265.9			254.1
Less investment expenses		(9.9	)		(7.7	)		(6.9	)
Net investment income	$	276.6		$	258.2		$	247.2

Schedule Of Net Realized Gains (Losses) On Investments

Net realized gains (losses) on investments were as follows:


FOR THE YEARS ENDED DECEMBER 31	2012			2011		2010
(in millions)
Fixed maturities	$	9.7		$	20.4	$	17.7
Equity securities		15.5			0.9		13.0
Real estate		3.3			—		—
Derivative instruments		(4.4	)		5.8		3.0
Other investments		(0.5	)		1.0		(4.0	)
Net realized investment gains	$	23.6		$	28.1	$	29.7

Rollforwards 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.


FOR THE YEARS ENDED DECEMBER 31	2012			2011			2010
(in millions)
Credit losses as of the beginning of the year	$	14.5		$	16.7		$	20.0
Credit losses for which an OTTI was not previously recognized		0.6			—			1.2
Additional credit losses on securities for which an OTTI was previously recognized		0.6			0.9			3.1
Reductions for securities sold, matured or called		(6.9	)		(1.8	)		(7.2	)
Reductions for securities reclassified as intend to sell		(0.2	)		(1.3	)		(0.4	)
Credit losses as of the end of the year	$	8.6		$	14.5		$	16.7

Proceeds From Sale Of Available-For-Sale Securities

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


FOR THE YEARS ENDED DECEMBER 31
(in millions)
2012	Proceeds from Sales		Gross Gains		Gross Losses
Fixed maturities	$	616.3	$	12.1	$	2.0
Equity securities	$	141.3	$	17.5	$	0.7

2011
Fixed maturities	$	678.1	$	20.0	$	1.1
Equity securities	$	86.6	$	3.0	$	0.5

2010
Fixed maturities	$	456.2	$	24.1	$	2.2
Equity securities	$	112.1	$	13.5	$	—

Reconciliation Of Gross Unrealized Investment Gains (Losses)

The following table provides a reconciliation of gross unrealized investment gains (losses) to the net balance shown in the Consolidated Statements of Comprehensive Income.


FOR THE YEARS ENDED DECEMBER 31	2012							2011								2010
(in millions)	Pre-Tax		Tax Benefit (Expense)			Net of Tax		Pre-Tax			Tax Benefit (Expense)		Net of Tax			Pre-Tax		Tax Benefit (Expense)		Net of Tax
Unrealized gains on available-for-sale securities:
Unrealized gains arising during period	$	186.4	$	(40.2	)	$	146.2	$	97.8		$	23.5	$	121.3		$	130.7	$	9.1	$	139.8
Less: reclassification adjustments for gains realized in net income		23.1		5.9			29.0		20.4			9.3		29.7			26.0		3.2		29.2
Total available-for-sale securities		163.3		(46.1	)		117.2		77.4			14.2		91.6			104.7		5.9		110.6
Unrealized gains (losses) on derivative instruments:
Unrealized gains (losses) arising during period		0.2		(0.1	)		0.1		(1.8	)		0.6		(1.2	)		—		—		—
Other comprehensive income	$	163.5	$	(46.2	)	$	117.3	$	75.6		$	14.8	$	90.4		$	104.7	$	5.9	$	110.6

- Definition

Tabular disclosure of investment income derived from investments in debt and equity securities consisting of interest income earned from investments in debt securities and on cash and cash equivalents, dividend income from investments in equity securities, and income or expense derived from the amortization of investment related discounts or premiums, respectively. This item does not include realized or unrealized gains or losses on the sale or holding of investments in debt and equity securities required to be included in earnings for the period or for other than temporary losses related to investments in debt and equity securities which are included in realized losses in the period recognized.

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- 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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