PENSION PLANS (Tables)

12 Months Ended

Dec. 31, 2012

Chaucer Pension Scheme

Summary Of Weighted-Average Assumptions Used To Determine Net Periodic Pension Costs

Weighted-average assumptions used to determine net periodic pension costs for the Chaucer pension plan are as follows for the year ended December 31, 2012 and the six months ended December 31, 2011:


FOR THE PERIOD ENDED DECEMBER 31	2012		2011
Discount rate		4.90%		5.50%
Rate of increase in future compensation		4.30%		4.60%
Expected return on plan assets		7.50%		7.40%

Summary Of Target Allocations And Invested Asset Allocations

The following table provides target allocations and actual invested asset allocations for 2012 and 2011.

DECEMBER 31

2012

TARGET
LEVELS

2012

2011

Fixed Income Securities:

Fixed Maturities

10%

14%

12%

Equity Securities:

Domestic (United Kingdom)

35%

33%

34%

International

45%

44%

44%

Total Equity Securities

80%

77%

78%

Real Estate Funds

10%

10%

Total Assets

100%

100%

Summary Of Plan Assets Investment Measured At Fair Value

The following table presents for each hierarchy level the Chaucer defined benefit plan’s investment assets that are measured at fair value at December 31, 2012 and 2011.


DECEMBER 31, 2012
(in millions)	Fair Value
	Total		Level 1		Level 2		Level 3
Fixed Income Securities:
Fixed Maturities	$	12.9	$	—	$	12.9	$	—
Equity Securities:
Domestic		29.9		—		29.9		—
International		39.7		—		39.7		—
Total Equity Securities		69.6		—		69.6		—
Real Estate Funds		8.2		—		—		8.2
Total Investments at Fair Value	$	90.7	$	—	$	82.5	$	8.2

December 31, 2011
(in millions)	Fair Value
	Total		Level 1		Level 2		Level 3
Fixed Income Securities:
Fixed Maturities	$	8.5	$	—	$	8.5	$	—
Equity Securities:
Domestic		25.5		—		25.5		—
International		32.4		—		32.4		—
Total Equity Securities		57.9		—		57.9		—
Real Estate Funds		7.7		—		—		7.7
Total Investments at Fair Value	$	74.1	$	—	$	66.4	$	7.7

Summary Of Assets Measured At Fair Value On A Recurring Basis Using Significant Unobservable Inputs

The table below provides a reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3).


FOR THE PERIOD ENDED	2012		2011⁽¹⁾
(in millions)
Balance at beginning of period	$	7.7	$	7.7
Actual return on plan assets related to assets still held		—		0.2
Foreign currency translation		0.5		(0.2	)
Balance at end of year	$	8.2	$	7.7

(1)	For the period July 1, 2011 (date of acquisition) to December 31, 2011.

U.S. Defined Benefit Plans

Summary Of Weighted-Average Assumptions Used To Determine Net Periodic Pension Costs

Weighted-average assumptions used to determine net periodic pension costs for the U.S. defined benefit plans are as follows:


FOR THE YEARS ENDED DECEMBER 31	2012		2011		2010
Qualified plan
Discount rate		5.13%		5.63%		6.13%
Expected return on plan assets		6.00%		6.50%		7.00%
Cash balance interest crediting rate		4.00%		4.50%		4.50%
Non-qualified plan
Discount rate		5.00%		5.50%		6.00%

Summary Of Target Allocations And Invested Asset Allocations

The following table provides target allocations and actual invested asset allocations for 2012 and 2011.


DECEMBER 31	2012 TARGET LEVELS		2012		2011
Fixed Income Securities:
Fixed Maturities		80%		83%		81%
Money Market Funds		2%		1%		1%
Total Fixed Income Securities		82%		84%		82%
Equity Securities:
Domestic		13%		10%		11%
International		5%		3%		4%
THG Common Stock		0%		3%		3%
Total Equity Securities		18%		16%		18%
Total Assets		100%		100%		100%

Summary Of Plan Assets Investment Measured At Fair Value

The following tables present for each hierarchy level the U.S. qualified defined benefit plan’s investment assets that are measured at fair value at December 31, 2012 and 2011. (Please refer to Note 5 – “Fair Value” for a description of the different levels in the Fair Value Hierarchy).

DECEMBER 31, 2012

(in millions)

Fair Value

Total

Level 1

Level 2

Level 3

Fixed Income Securities:

Fixed Maturities

491.4

3.3

488.1

—

Equity Securities:

Domestic

58.3

0.4

57.9

—

International

18.8

0.1

18.7

—

THG Common Stock

18.1

—

Total Equity Securities

95.2

18.6

76.6

—

Total Investments at Fair Value

586.6

21.9

564.7

—


DECEMBER 31, 2011
(in millions)	Fair Value
	Total		Level 1		Level 2		Level 3
Fixed Income Securities:
Fixed Maturities	$	465.9	$	3.2	$	462.7	$	—
Equity Securities:
Domestic		61.4		0.3		61.1		—
International		25.2		0.2		25.0		—
THG Common Stock		16.3		16.3		—		—
Total Equity Securities		102.9		16.8		86.1		—
Total Investments at Fair Value	$	568.8	$	20.0	$	548.8	$	—

Pension Benefits

Summary Of Estimated Amount Amortized From Accumulated Other Comprehensive Income (Loss) Into Net Periodic Pension Cost

The following table reflects the total estimated amount of actuarial losses that will be amortized from accumulated other comprehensive income into net periodic pension cost in 2013:


Estimated Amortization in 2013	Expense
(in millions)
Net actuarial loss	$	14.3